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Further efforts to identify and create agricultural financial institutions including agricultural and cooperative banks will be explored. Tailored efforts to promote agricultural finance products also include enhancing micro- lending and forward contracts through the building of institutional capacity of market actors. Collateralized commodity financing system (Warehouse Receipts System) will be enhanced to enable farmers better market their output.
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https://faolex.fao.org/docs/pdf/eth211967.pdf
Current banking sector regulations will be reviewed to enhance the sector’s use of technology such as mobile banking to deliver services and expand financial inclusion to the rural population. Farmers’ better access to financial products and services would allow them to save, borrow, and transfer money more easily. They could acquire agricultural inputs more easily, improve yields, and consequently incomes. 4.4.2. Mining Rationale.
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4.4.2. Mining Rationale. Ethiopia has vast and diverse mineral resources which can generate forex and substitute imports for industry. Though the existing data regarding mining sector’s contribution to GDP is not exhaustive, currently its contribution is at 1 percent of output, 0.5 percent of employment and 10 percent of exports. In the past few years, the sector has showed promising growth, and holds a high growth potential.
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Ethiopia has diverse mineral reserves, including gold, platinum, copper, multi-color marble and granite, cement raw minerals, potash, gemstone (sapphire, opal and emerald), coal, oil and natural gas. The mining activity has been traditionally limited to gold, yet new reform measures aim to expand mining to other minerals that are proven to be commercially viable.
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During the GTP I period, delineation of potential areas of industrial and metallic minerals exploration and evaluation increased from 48 percent to 73 percent in the plan period.
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This intensified exploration has resulted in a series of new discoveries, including of gold, tantalum, multi-color marble and granite, and potash—once these come online, there is potential to increase exports of gold and base metals, industrial minerals, construction and dimension stones and energy minerals and to kick-start Ethiopia’s large-scale mining development. The mining sector is dominated by artisanal and small-scale mining (ASM), which suffers from low productivity and limited value addition.
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Limited exploration of available resources due to poor regulatory framework and exploration capacity, and lack of promotion have limited the growth of the 30 large-scale mining industry. Going forward, concerted effort is needed to improve the policy and regulatory framework, boost investment promotion efforts and enhance stakeholder engagement in the governance of the sector.
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Furthermore, large scale mining (LSM) projects that have been initiated during the past few years, but dragged due to bureaucratic hurdles, will be completed. Key reform measures include the following. Formalize and support artisanal and small-scale mining. Informal and artisanal mining employs at least 1.5 million people (74% of miners) and accounts for 65% of mining foreign exchange earnings.
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The ASM sector, due to both its size and significance, as well as the distinct challenges and issues it faces must receive policy attention. Challenges that are more particular to artisanal mining include rudimentary mining practices; high levels of unlicensed, informal, operations; limited small-scale processing technology; poor market access and the poor conditions of infrastructure.
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ASM could be promoted through both a favorable legislative regime and targeted capacity building measures to upgrade knowledge, skills and technologies. Formalizing ASMs and enforcing the existing legal framework to promote artisanal miners, to facilitate government provision of business development support, and improving the ease of access to and adoption of technology will be key instruments.
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Measures to develop and strengthen ASM associations, improve access to credit including through a small grant and revolving loan facilities, and access to market via local and international linkages will be enhanced. The current legislation limiting ASM licenses for two years, with no renewal, encourages illegal mining activities. The legislation will be revised to allow longer-term mining licenses; these could be complemented by the designation of geologically suitable areas for ASM.
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Develop policies and institutional capacities to create a sustainable and inclusive mining sector. A regulatory overhaul to simplify the regime for acquiring exploration and mining licenses and clarification and development of the institutional structures would be a vital first step to encourage the growth of the sector as well to manage the sector sustainably.
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Development of legislation and regulations aimed at eliminating uncertainties, reducing discretion and streamlining regulatory detail will be undertaken. Despite the commissioning of a computerized mining cadaster system in 2011, technology problems as well as changes to licensing rules have restricted the effectiveness of the system.
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Establishing and upgrading the modern cadaster system for licensing and administration will be undertaken to standardize regulations and procedures and enhance transparency and accountability. Regional mining sector regulatory offices will be restructured and capacitated to improve local capacity, along with strong co-ordination mechanism between federal and regional government. Measures will also be taken to address technical and institutional barriers that are delaying large-scale mining projects.
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Strengthen geological information accessibility and promotion of the sector. Ethiopia has a promising geology but there are only few operating large-scale mines and advanced stage exploration projects compared to other countries with prospective geology. The implementation of an integrated geological data and information management system will be an important element in the development 31 of mineral resources. Geological information is also a key component of mining sector promotion to private investors.
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A ‘Mining Investment Promotion Strategy’ will be implemented to expand exploration and investments in the sector; the promotion strategy includes the use of geological data published online as well as participation in international investor events. The sharing of “success stories” is also key to attract interest, and draw investors to the country.
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The mining sector also stands to benefit from private mining explorers sharing their detailed geo-data obtained in exploration to the Ministry of Mining & Petroleum. Enhance local community engagement. Mining sector development will require the institution of robust mechanisms for community engagement and social responsibility. Community engagement is essential both to provide adequate benefit streams and mitigate the negative impacts of mining on the community.
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This would include development of a National Corporate Social Responsibility policy to provide guidance on all points of interaction between the mining industry and society— to hire and buy local and invest in community initiatives. Strengthening dialogue mechanism for investors and local stakeholders, and establishing a community grievance management process are key reform measures.
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Communities will be engaged at earlier opportunities by both companies and government; and LSM will be required to provide and share information throughout the lifecycle of the mine. Reduce incentives for contraband trade. Illegal mining trade activities lead to reduced incomes and loss of export revenue, and undermine good environmental management and labor practices. Illicit trading and smuggling are facilitated through regulatory gaps and poor pricing.
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Improving horizontal and vertical integration in the mining sector and with other stakeholders (Law enforcing entities, customs authority) by simplifying the licensing requirements for ASM, improving the accessibility of licensed buyers to artisanal miners, providing competitive prices for gold and similar precious stones are measures aimed to reduce incentives for contraband trade. 4.4.3. Manufacturing Rationale.
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4.4.3. Manufacturing Rationale. Development of the manufacturing sector is the path towards the structural transformation of the economy and the creation of jobs for the growing population. Despite efforts to develop the manufacturing sector through various initiatives, such as industrial parks, notable investment promotion, and generous fiscal incentives to investors, in the past decade, the manufacturing sector remains underdeveloped with an output of only 6 percent of GDP.
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Limited productivity and product diversification, shortage of inputs and forex, high cost of finance, electricity and logistics constraints, and industrial relations have been cited as key constraints for the development of the sector. For manufacturing to become an engine for the growth and transformation of the economy, creating effective backward and forward linkages, providing comprehensive support to MSMEs, and enhancing the productivity of firms and workers will be essential.
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Key reform measures include the following. 32 Revisit and enhance the role of IPs in the manufacturing sector development. The Government is implementing an industrial parks (IP) development program to address investment-climate-related issues to land access, infrastructure, and logistic and customs processes, and to further the attraction of Foreign Direct Development (FDI). The performance of operational IPs to date has been encouraging, albeit mixed in some areas.
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Challenges remain in the timely completion of IPs across the country, and operational parks are operating below potential and are yet to fully integrate to the local economy. The success of IPs depends on their linkage to the overall economy; this will include the access to quality raw materials and trainable labor force, and network facilitation and enhancing productivity of workers.
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Measures will be undertaken to enhance the linkage of IPs to the overall economy, including through the improvement of the business climate to SMEs outside of the parks. The commercial viability and sustainability of IPs also necessitates the need to assess and redefine the business strategy of the Industrial Parks Development Cooperation (IPDC). Reform efforts aim to guide the IPDC towards a service oriented and corporate (financial viability) approach to the development of IPs.
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Private sector engagement in the development and management of IPs will be explored to position them as commercially sustainable ventures. It’s not viable for the government to independently develop IPs in the long-term without the private sector participation; thus, to pursue a successful industrial zone model, reforms measures will be explored to promote a mix of IP development options including private, PPPs, and public development.
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Strengthen the backward linkage of emerging manufacturing value chains and promote import competing industries to leverage large domestic market size. Ethiopia prioritized light manufacturing and agro-processing industries due to their linkage to the agricultural sector. However, this envisaged linkage has not been realized.
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Manufacturers rely on imported raw materials, including cotton, yarn, accessories, chemicals and packaging and promotion materials, due to poor quality standards or unavailability of local inputs and products.
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Improving the production of agricultural inputs, by improving input provision and seed variety, encouraging large-scale commercial production of agro-industrial inputs, encouraging contract- farming, building the aggregation and processing capacity of unions and MSMEs and enhancing linkages to industrial parks will be key measures to address the raw material shortage of manufacturers and substitute imports.
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The completion of the integrated agro-industrial parks (IAIPs) along the major agro-ecological zones of the country will receive priority attention to address the gaps in agriculture and manufacturing sector linkages. Investment in auxiliary industries, encouraging the establishment of local chemical plants, packaging, cold chain, and transport services will further be promoted and facilitated.
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In addition to production of industrial inputs, consumer goods production will be promoted to leverage the large domestic market size. Enhance productivity of firms and workers. Manufacturing labor productivity had a moderate growth rate of 4.6% per year over the last two decades. However, productivity is seen to have grown better in capital intensive industries than in labor intensive industries, which shows that economy wide growth in TFP was limited.
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The limited gains in TFP is more concerning given Ethiopia’s abundant labor force and its comparative advantage in the labor-intensive industries. Lack of appropriate 33 trainings and industry knowledge, low compensation, and poor working conditions and overall business climate challenges are factors behind the poor labor productivity in the country. Ethiopian workers are identified to be easily trainable in technical skills, however gaps exist in soft skills.
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In addition to measures to improve the overall investment climate in the country (elaborated in section 4.3 on Structural reforms), targeted measures to meet industrial labor needs will be critical. Incentivizing firms to invest in worker skill acquisition and skill-intensive production can boost productivity in labor-intensive sectors. Technical & Vocational Education & Training (TVET) will be augmented to provide managerial, technical and vocational skills for identified subsectors.
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TVET centers will receive support to upgrade program quality, teachers capability and equipment. A reinforced mechanism to integrate the industry and training institutions to provide support in terms of internships and job placement will be promoted. Improving working conditions by encouraging and incentivizing industrial parks and large firms to provide integrated services, including housing, childcare, catering, etc., will also be explored. Deepen Ease of Doing Business initiatives.
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Deepen Ease of Doing Business initiatives. Manufacturing sector development calls for addressing cross-cutting challenges in the business climate including business licensing and registration procedures, logistics and power constraints, weak policy and regulatory government support institutions and support systems for industrial parks. (See Section 4.3. on Structural Reforms and Ease of Doing Business for envisioned reform measures).
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Develop an industrial relations framework to achieve fair pay and minimize disruptions. In order to enhance the productivity of workers and working conditions for workers, the government will promote and enhance institutions to nurture sound labor relations practices and stakeholder dialogue. An industrial relations framework is essential to develop a common vision among stakeholders and strategies towards a socially responsible manufacturing sector in the country.
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Efforts will be undertaken to enhance awareness and capacity for better industrial relations frameworks at the regional and federal labor administration structures, employers and employees at all levels. The currently under revision labor law will be reformulated in accordance with the international conventions and other legal commitments to which Ethiopia is a party.
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Studies will be conducted to reinforce decent work and strengthen the support of Occupational Safety and Health system (OSH) to guide the implementation of concrete measures to enhance the industrial relations framework in the country. Strengthening manufacturing sector support institutions. Specialized research & sector institutions are established to support the country’s industrialization and enhance private sector development.
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However, the institutions have lagged behind in building internal capabilities and proactively promulgating sector specific know-how and skills. It is therefore, important to strengthen the institutional structure and capacity and enhance the relationship and synergy among these institutions. In addition, reforming the existing mechanisms for private-public sector dialogue will be key to create an environment of trust and mutual confidence to align the aspirations of the private sector and the government.
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Measures will be taken to create an effective mechanism for a regular dialogue between the private sector and the government. 34 The articulation of policy and regulatory measures is also essential to create an enabling environment for the private sector. Current industrial policies and strategies will be examined for conduciveness to accelerated development of the domestic private sector and reorient the focus of industrial policy towards private sector development. 4.4.4. Tourism Rationale.
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4.4.4. Tourism Rationale. Ethiopia has a great – and largely unexploited – tourism potential. Its tourist attractions are many and varied— cultural, historical, eco-tourism and the now growing conference tourism. Tourism can be an effective tool for job creation and private sector development. However, many of the country’s resources have not been developed into productive assets or are functioning below their full economic potential.
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Diversifying tourism products to target low to mid-budget tourists, enhancing the use of digital marketing tools and improving tourism infrastructure are low hanging fruits that Ethiopia can utilize to enhance the tourism sector in the short term.
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Promoting domestic and international private investment in the sector and strengthening market linkages, by tapping into diverse art products, supporting the development of MSMEs engaged in handicrafts, and strengthening the linkage to the agriculture sector will have a cascading effect on other areas of economic activity. Strengthening forward and backward linkages makes tourism a more effective vehicle of poverty alleviation, job creation, and economic growth.
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Experience shows that tourism is an inclusive economy that creates productive employment for women and young people. Recent efforts– mainly visa-on-arrival for African nationals– have increased revenues from tourism by 25 percent in 2018. In addition, ongoing and planned investments on upgrading existing sites and developing new sites are expected to sustain the growth in tourism revenues. Successful tourism sector can change perceptions of the country and create a positive national image.
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The tourism feel-good factor enhances investor confidence, increases national pride, and serves as an engine of growth. Key reform measures are outlined below. Develop and improve the attractiveness of and access to tourist sites. Exploiting Ethiopia’s untapped tourism potential entails both the development of new and diverse tourism products, as well as the improvement of infrastructure and support services in existing sites.
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Much of Ethiopia ‘s tourist-related infrastructure is in poor condition and lacks investment. Investing in the upkeep of attraction sites and the infrastructure around these sites, and encouraging federal and regional incentive packages to promote private investment in tourism will be key measures to unlock the potential of the tourism sector. Private investors will be encouraged to engage in the management of key national tourism sites such as national parks.
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35 Building pro-tourism infrastructure and services, by notably enhancing tourism mobility and improving infrastructure at tourist sites, investing in seamless services such as online booking, online customer services maximize access to the market. Promote tourist sites through marketing, branding, and packaging based on customer segmentation.
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Marketing and destination promotion will be modernized including through branding and building Ethiopia’s international image, curating and promoting key destinations and experiences. Tourism is an information-sensitive industry. To take advantage of the new internet market access, tourism service providers need an online presence to drive people to the product and broker a relationship with their customers.
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E-commerce provides a low-cost method to directly access millions of potential travelers worldwide. Efforts will be undertaken to enhance the media marketing and online transaction capability of tourism institutions. Modernizing the standards for tourism and related services. The linkage between a professional and skilled tourism workforce and a successful tourism sector is explicit.
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Improving the capacity of tourism institutions and service providers to maintain professionalism in the development and management of destinations, and promoting the development of formal, integrated, and quality tourist services is essential. Measures will be reinforced to promote tourism professional development institutions and build the capacity of professional associations to facilitate effective service provision and private sector development.
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The links between tourism businesses and training institutes will be strengthened to help improve the relevance of tourism courses and ensure that new tourism graduates are sector-ready and equipped with appropriate customer service and business skills. Promote stop-over and meetings tourism. Ethiopia can leverage its advantage as the political and air transport hub of Africa to promote stop-over and Meetings, incentives, conference & exhibitions (MICE) tourism.
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Tourism institutions, in partnership with Ethiopian airlines, can craft packages and deals for transit passengers and business travelers to visit tourist sites in Addis Ababa and across the country. Flagship projects in Addis Ababa, such as the Unity and Sheger parks, which provide a glimpse of Ethiopia’s historical and cultural heritages along with a green space and hospitality services will contribute to meetings and stopover tourism.
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Tourism institutions and actors will be supported to institute specific and targeted regulatory and marketing instruments to develop the MICE sub- sector. Strengthen the linkage to the agriculture and creative sectors. Beyond the visible tourist service, in travel and hospitality, tourism has multiple opportunities for households and micro, and small enterprises.
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There are significant opportunities for improved linkages to the agriculture sector by promoting use of local produces at hotels and restaurants. Measure will be undertaken to develop select local products (horticulture, produce, crafts, entertainment, transportation) with a focus to supply to the tourism industry. 36 4.4.5. ICT and Digital Economy Rationale. Information Communication Technology (ICT) is an integral and essential part of Ethiopia’s growth strategy.
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It has a catalytic potential, both as an industry in and of itself, and as an enabler of socioeconomic transformation. Ethiopia’s ICT endeavors include telecommunications, IT services, and IT enabled services (ITes), including as destination for business process outsourcing (BPO). Investing in ICT will enable Ethiopia to start the transition into an inclusive digital economy and to create sustainable job opportunities for youth across the country.
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Unlocking the potential of ICT services in the economy requires an enabling policy, regulatory environment, infrastructure, and human capital. During this reform period, a digital momentum can be built by taking advantage of low-hanging fruits such as the country’s growing Science Technology Engineering & Mathematics (STEM) graduates, the telecom sector liberalization, revitalization of the existing ICT park, and necessary regulatory reviews. Key reform measures are outlined below.
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Key reform measures are outlined below. Promote the use of ICT for modernizing the civil and public services to enhance efficiency and effectiveness of service delivery. E-government is a comprehensive measure that will improve effectiveness and efficiency of service delivery, while onboarding large segments of the population to the digital space. Despite the challenges of infrastructure and connectivity, the government has launched a number of e-governance initiatives.
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Scaling up ongoing government ICT initiatives such as e-governance, WoredaNet, the rural connectivity program, and rural public internet access centres will be key. ICT is also at the backbone of and will be utilized to boost measures to improve the Ease of Doing Business and expand service delivery (e.g. education, health, agricultural extension services). Promote e-commerce and digitization of the financial and logistic sectors.
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E-commerce adoption brings opportunities for market expansion across the country as well as internationally. Ethiopia’s large population and market size can be leveraged for e-commerce development. Exploiting e-commerce in the country calls for improvements in the financial and logistics sector including e- payments, national addressing system, and geo-spatial enabled logistics modernization.
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During the reform period, measures will be undertaken to accelerate the development of a digital payment’s eco- system and promote e-transactions. Investments and start-ups to drive e-commerce will be encouraged through policy and regulatory reforms. Expand ICT infrastructure throughout the country and ensure it is accessible. Despite rapid expansion in ICT infrastructure across the country, both access and quality of services remain limited.
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To unlock the country’s potential in the digital economy and ITes, it’s important to expand access to services through infrastructure development including broadband networks. Expediting the telecom reform agenda and ongoing work on digital ID system and revitalizing the ICT-park (concept, management, infrastructure and readiness for services to attract investors) would be initial efforts to 37 kick-start ITes in the country in the short-term.
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The development of specialized ICT parks will further be explored. Investing on ICT literacy and advanced trainings. Ethiopia has a significant advantage when it comes to ICT and digital skills. Over 250,000 new university graduates enter the labor force every year, and over 65 percent are in STEM fields.
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This youthful human capital can be exploited and further developed through expanding short-term training programs on digital literacy for ICT-enabled jobs and promoting applied work experiences and internships. Furthermore, ICT teaching curriculums will be revised and digital literacy will be integrated within formal and informal education systems. Pro-innovation and ICT regulatory and business environment. The ICT sector is disruptive by its nature, making regulation difficult.
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Existing traditional regulatory approaches have limited understanding of the ICT sector and are often constraining and prescriptive to match the sector’s innovation and dynamics. Expanding and strengthening the role of the private sector to ensure the rapid development of ICT and ITes requires a concerted policy action along with some degree of laissez-faire to promote innovation in an organic way.
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In this line, the government will adopt a consultative approach to policy making and explore sandbox regulatory approaches to support technology start-ups and incumbents. It will explore initiatives to facilitate access to alternative financing sources and risk capital for technology start-ups. Promote the export of IT-enabled services. ITes include services that are performed via information technology infrastructure.
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Ethiopia can exploit the ICT sector to become a destination for BPO, allowing the labor force to tap into global labor markets. The BPO industry requires a good talent pool, low labor costs, and the availability of high-quality and reliable telecommunications and power supply. Ethiopia’s large STEM graduates can be exploited to cater to the BPO industry.
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Despite the concerns with connectivity and power issues, the development of BPO in Ethiopia can be promoted by adopting targeted BPO-friendly regulations and policies, encouraging private investment, and branding and marketing Ethiopia as a BPO-primed site. The young STEM graduates can be better exploited through short term advance courses in relevant skills. 38 5.
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38 5. Implementation arrangements The Reform agenda guides the overall direction of the economy towards a balanced macro-economy, the development of a dynamic private sector, and improved regulatory and institutional frameworks to sustain the rapid economic growth and pave the journey to prosperity. The details of the reform implementation measures will be elaborated by the relevant implementing offices, while ensuring coordination and alignment across the pillars of the reform.
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The agenda will be implemented in whole-of-government approach through a coordinated institutional structure within the government, and a stronger consultative framework with the private sector, academia and development partners. Each ministry and relevant office will set-up a reform secretariat to develop a detailed policy and regulatory reform plan along with an investment plan for required interventions. The figure below depicts the reform coordination structure.
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Figure 7 HGER implementation oversight and coordination structure Economic Refroms Unit Hosted at the MoF Macro-Economic Commitee Led by the PM Macro-financial Reforms Sub- Commitee Led by MoF & NBE Structural Reforms Sub-Commitee Led by MOF-MoTI-EIC Sectoral Reforms Sub-Commitee Led by PDC 39 Macro-economic Committee: The Committee, led by the Prime Minister, will oversee and guide the overall implementation of the home-grown economic reform agenda.
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The Committee is comprised of ministers from the macro-institutions including the Ministry of Finance, the National Bank of Ethiopia, and the Planning and Development Commission, as well as senior advisors from the Office of the Prime Minister. Macro-financial Reforms Sub-committee: The Ministry of Finance and National Bank of Ethiopia will jointly lead macro-financial reforms. Sectoral Reforms Sub-committee: The Planning and Development Commission will lead and coordinate the sectoral reform efforts.
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The sub-committee will be comprised of ministers of agriculture, manufacturing, tourism, mining and ICT. Structural Reforms Sub-committee: The Ministry of Finance, Ministry of Industry and Trade and the Ethiopian Investment Commission will co-lead and coordinate the structural reforms.
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The Investment Commission will lead the doing business reforms, the Ministry of Trade will lead trade and private sector development reforms, and the Ministry of Finance will lead the reform of strategic enabling sectors such telecom, logistics, and electricity in collaboration with relevant entities. The committee will be comprised of the aforementioned offices and other relevant entities.
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Economic Reforms Unit: A Unit hosted at the MOF will serve as a secretariat for the coordination and oversight of the reform implementation. The Unit will oversee and guide the implementation of the reform agenda and facilitate cross-sectoral engagement for a coordinated and sequenced policy making. The Unit will consolidate HGER implementation plans, monitor and evaluate performance, and provide overall technical backstopping for the comprehensive implementation of the agenda.
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It will provide timely reports to the Macro-Economic Committee and engage stakeholder for the implementation of the reform agenda. Economic Advisory Council: An independent economic advisory council comprised of members of the private sector, academia, and political actors will be convened to provide independent and objective policy advice to support the successful implementation of the reform agenda. 40
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NATIONAL ASSEMBLY ------- SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness --------------- No. 39/2019/QH14 Hanoi, June 13, 2019 LAW ON PUBLIC INVESTMENT Pursuant to the Constitution of the Socialist Republic of Vietnam; The National Assembly hereby promulgates the Law on Public Investment. Chapter I GENERAL PROVISIONS Article 1.
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Chapter I GENERAL PROVISIONS Article 1. Scope This Law provides for state management of public investment; management and use of public investment capital; rights, obligations and responsibilities of regulatory authorities, affiliates, entities and persons involved in public investment activities. Article 2. Subjects of application This Law applies to regulatory authorities, affiliates, entities and persons involved in or related to public investment, management and use of public investment capital.
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Article 3. Application of Law on Public Investment, international treaties and agreements 1. Management and use of public investment capital and public investment activities shall have to comply with provisions laid down herein and other provisions of relevant law. 2. If there is any difference between provisions of this Law and those of international treaties of which the Socialist Republic of Vietnam is a member state, the latter shall prevail. 3.
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3. Public investment programs and projects in foreign countries must be implemented in accordance with provisions of international treaties of which the Socialist Republic of Vietnam is a member state or international agreements between Vietnam and foreign parties. 4. Management and use of state-owned funds invested in enterprises shall be subject to provisions of law on management and use of state capital invested in production and business activities of enterprises. Article 4.
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Article 4. Interpretation For the purposes of this Law, terms used herein shall be construed as follows: 1. Investment policy recommendation report refers to a document presenting a preliminary study’s contents, including necessity, feasibility, efficiency, intended capital sources and estimated capital amounts of a public investment program, group-B or group-C investment project, as a basis for a competent authority to make its decision on that investment policy. 2.
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2. Pre-feasibility study report refers to a document presenting a preliminary study’s contents, including necessity, feasibility, efficiency, intended capital sources and estimated capital amounts of an investment project of national significance and a group-A investment project, as a basis for a competent authority to make its decision on an investment policy. 3.
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3. Feasibility study report refers to a document presenting a study’s contents, including necessity, feasibility, efficiency, intended capital sources and estimated capital amounts of a public investment program or project, as a basis for a competent authority to make its investment decision. 4.
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Ministries and/or central and local bodies refers to regulatory authorities or entities assigned planned public investment duties, including: a) Central bodies affiliated to political organizations, Supreme People’s Procuracy, Supreme People’s Court, State Audit, Office of the President, Office of the National Assembly, Ministries, Ministry-level agencies, Governmental agencies and central bodies of Vietnam Fatherland Front and socio-political organizations (hereinafter referred to as Ministries and/or central bodies); b) Provincial-level People’s Committees; c) Other entities and organizations assigned planned public investment duties.
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5. Program owner refers to an entity or organization assigned to preside over management of a public investment program. 6. Investment project owner refers to an entity or organization assigned to directly manage a public investment project. 7.
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7. Investment policy refers to a competent authority’s decision concerning major contents of an investment program or project, serving as a basis to issue, submit and approve a decision on investment in an investment program and project, or a decision on approval of a feasibility study report of a public investment project. 8. Public investment program refers to a combination of goals, duties and solutions designed to carry out socio- economic development objectives. 9.
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9. National target program refers to a public investment program designed to pursue socio-economic objectives in specific stages on a nationwide scale. 10. Host entity refers to a Ministry, central or local entity prescribed in clause 4 of this Article that is in charge of an investment program or project. 11.
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11. Entity specialized in management of public investment refers to a unit performing the function of management of public investment that is put under the control of the Ministry of Planning and Investment; a unit assigned to take charge of public investment affairs of a Ministry, central or local authority; a division or department authorized to manage public investment that is put under the control of a district or commune-level People's Committee. 12.
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12. Entity accorded regulatory authority over public investment includes Government, Ministry of Planning and Investment and People's Committee at all levels. 13. Public investment project refers to a project using all or part of public investment capital. 14.
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14. Urgent public investment project refers to a public investment project designed to promptly prevent, control and mitigate consequences of acts of God, disasters or diseases; an urgent duty to ensure national defence, security and external relations that is subject to the decision of a competent authority. 15. Public investment refers to the State’s investment in programs, projects and others classified as subjects of public investment as provided for herein. 16.
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Public investment activities include formulation, evaluation of and decision on an investment policy; design, evaluation of and decision on a public investment program or project; formulation, evaluation, approval, assignment and implementation of a public investment plan or project; management and use of public investment capital; commissioning and transfer of a program and preparation of final accounts of a public investment project; monitoring, assessment, examination and inspection of a public investment plan, program or project.
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17. Public investment plan refers to a collection of objectives, guidelines and lists of public investment programs and projects; balancing of public investment capital sources, alternatives for fund disbursement, methods of channeling resources and implementation thereof. 18. Investment preparatory activities encompasses formulation, evaluation of and decision on an investment policy, and formulation, evaluation of and decision on investment in a project. 19.
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19. Planning activities refers to activities to be performed to formulate, evaluate and decide or approve, release and adjust a planning scheme, subject to provisions laid down in the Law on Planning. 20. Outstanding debts accruing from capital construction activities refers to the post-commissioning value of items that constitute a project belonging to the public investment plan approved by a competent authority and not yet receiving any portion of funds disbursed to these items. 21.
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21. Decentralization of regulatory authority over public investment refers to an act of determining rights and responsibilities of entities and persons having competence in performing public investment activities. 22. Public investment capital regulated herein shall comprise: state budget funds; legitimate revenues of state agencies and public service units that are retained for investment purposes as provided in law. 23.
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23. Central budget’s capital refers to capital expenditures of the central budget, subject to the Law on State Budget. 24. Local budget’s capital refers to capital expenditures of the local budget, subject to the Law on State Budget. 25.
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25. Target transfers from the central budget to the local budget refers to funds from the central budget that are granted as financial supplements in order for local subdivisions to make investment in public investment programs and projects listed in their respective duties decided by a competent authority. Article 5. Public investment objects 1.
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Investment in socio-economic infrastructure construction programs and projects Where really necessary, compensation, support and residential resettlement activities in investment projects of national significance may be divided into separate projects, subject to the National Assembly’s evaluation and decision; with respect to those activities in group-A investment projects, subject to the evaluation and decision of the Prime Minister or provincial-level People’s Council under their respective delegated powers.
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Projects may be separated when approving investment policies for investment projects of national significance and group-A investment projects. 2. Investment in giving support to activities of state regulatory authorities, public service units, political organizations and socio-political organizations. 3. Investment in and support given to investments in provision of public utility and social welfare products and services. 4.
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4. Investment of the State in participation in implementing projects in the public-private partnership form. 5. Investment in providing support for formulation, evaluation of and decision on or approval, public disclosure and modification of planning schemes as per law on planning. 6.
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6. Investment in granting subsidies to offset preferential lending interest rates; making equity contribution to the charter capital of policy banks and state off-budget financial funds; providing investment support for other policy beneficiaries under the Prime Minister’s decisions. The Government shall promulgate regulations procedures and processes for carrying out investment that are applied to those beneficiaries specified in this clause. Article 6. Classification of public investment projects 1.
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Public investment projects can be classified by their characteristics as follows: a) Projects with construction constituents constitute investment projects in new construction, renovation, upgradation and expansion of existing investment projects, including purchase of project-controlled assets and equipment; b) Projects without construction constituents refer to investment projects in purchasing assets, acquiring transferred land use rights, procuring, repairing and upgrading equipment, machinery and other projects that are not prescribed in point a of this clause.
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