Growth and Transformation Plan II (GTP II) (2015/16-2019/20).

Part I of the present Plan deals with the performance under the First Growth and Transformation Plan (GTPI) (2010/11-2014/15). Whereas Part II deals with the Second Growth and Transformation Plan (GTP II) (2015/16 -2019/20)
The main basis of the GTP II is the country’s Vision to become a lower middle-income country by 2025. In the coming 10 years, Ethiopia's Vision is to reach the level of lower middle-income countries where democracy, good governance and social justice are maintained through people's participation. The realization of this Vision calls for creating competitive, productive and inclusive economy in all its aspects.
The overarching objective of the GTP II is to sustain the accelerated growth and establish a spring board for economic structural transformation and thereby realizing the national Vision of becoming a lower middle-income country by 2025. To this end, the GTP II has set out the following specific objectives: i) Achieve an annual average real GDP growth rate of 11 percent within a stable macroeconomic environment and thereby contribute towards the realization of Ethiopia’s afore-mentioned Vision, while pursuing comprehensive measures towards narrowing the saving-investment gap and bridging the widening trade deficit; ii) Develop the domestic engineering and fabrication capacity and improve productivity, quality, and competitiveness of the domestic productive sectors (agriculture and manufacturing industries) to speed up structural transformation; iii) Further solidify the on-going public mobilization and organised participation to ensure the public become both owners and beneficiaries from development outcomes; iv) Deepen the hegemony of developmental political economy by strengthening a stable democratic developmental state.
The pillar strategies of GTPII are built on that of GTP I complemented by additional pillar strategies that serve as foundation for sectorial plans. Therefore, in order to achieve the objectives of GTP II, the following pillar strategies will be pursued. i) Sustain the rapid, broad based and equitable economic growth and development witnessed during the last decade; ii) Increase the productive capacity and efficiency to reach the economy’s production possibility frontier through concurrently improving quality, productivity and competitiveness of productive sectors (agriculture and manufacturing industries); iii) Speed up and catalyse transformation of the domestic private sector and render them a capable development force; iv) Build the capacity of the domestic construction industry, bridge critical infrastructure gaps with particular focus on ensuring the quality of infrastructure services through strengthening the implementation capacity of the construction sector; v) Properly manage and administer the on-going rapid urbanization to unlock its potential for sustaining growth and structural transformation of the economy; vi) Accelerate human development and technological capacity building and ensure its sustainability; vii) Establish democratic and developmental good governance through enhancing implementation capacity of the public sector and mobilization of public participation; viii) Promote women and youth empowerment, ensure their participation in the development process and enable them equitably benefit from the outcomes of development; ix) Build climate resilient green economy.
The Economic Development Sector Plan of Part II deals, inter alia, with agricultural and rural transformation. In particular, the agricultural sector development plan has the following objectives: i) bring about accelerated and sustained growth of agriculture within the framework of the Climate Resilient Green Economy Strategy that equitably benefits people at all levels and that realizes structural transformation of the sector and the overall economy; ii) Bring about a significant shift in agricultural productivity, build productive capacity and thereby enhance the contribution of the sector to the economy and stabilizing the macroeconomy; iii) to enable women, youths and other stakeholders participate in a structured and organized manner to contribute their part and benefit from the development outcomes.
The following major targets are set to achieve the objectives of GTP II (2015/16 – 2019/20): A) Crop Farming and Pastoral Development: 1) Crop Productivity and Production; 2) Coffee Productivity and Production; 3) Horticulture productivity and Production; 4) Livestock Productivity and Production; 5) Natural Resources Conservation and Utilization; 6) Improved Production and Productivity through Strengthening Demand Driven Agricultural Research works; 7) Improved Sustainable National Biodiversity Conservation and Equitable Benefit to the Community; 8) Food Security, Disaster Prevention and Preparedness.
As far as the implementation strategies are concerned the following are listed: A) Implementation Capacity Building; B) Improved Crop Productivity and Production: 1) Strengthening Agricultural Marketing and Cooperatives; 2) Agricultural Inputs Supply and Utilization; 3) Expansion of Agricultural Extension system; 4) Enhancing Agricultural Investment; 5) C) Livestock Productivity and Production: Livestock Genetic Improvement; Improved Livestock Feed Production; Integrated Implementation of Livestock Value Chain Efficiency; D) Natural Resources Conservation and Utilization; E) Improved Sustainable National Biodiversity Conservation and Equitable Benefit to the Community; F) Food Security Disaster Prevention and Preparedness; G) Agricultural Development in Pastoral Areas.
Chapter 2 of Part II deals with mining. The development objectives of GTP II are: i) enhancing the implementation capacity of the sector by improving policy, legal frameworks, regulatory and working systems; ii) increasing export revenues through promoting mining-value creation activities; iii) saving foreign currency by producing minerals inputs for import substituting manufacturing development, mainly to speed up the sector’s transformation; iv) enabling the mining sector to meet national and international environmental standards and regulations; v) expanding the geo-sciences mapping coverage of the country both in quality and accessibility; vi) saving fuel costs, specifically, as alternative energy sources for vehicles, using bio-fuel and gas-oil in line with the green economy development strategy of the country and vii) reducing wastage and environmental impacts of fuel oil by setting standards and regulations in fuel extraction, blending, storing, transporting and distributing processes in the country.
Major targets for the mining sector, during the plan period, focus mainly, on increasing the production of industrial raw materials, boosting export earnings and improving revenues collection from the sector. In light of this, it is planned to increase modern and artisanal systems of gold production.
Part Two consists of 10 Chapters as follows: Objectives (I); Macroeconomic Plan (II); Financial Plan (III); Economic Development Sector Plan (IV); Economic Infrastructure (V); Human Development and Technology Capacity Building (VI); Developmental Good Governance and Building Democratic System (VII); Cross Cutting Issues (VIII); Opportunities and Threats (IX); Monitoring and Evaluation System (X).