Economic Policy Research and Studies Sector

teferi-tiyaru-pic.jpg

Dupty Director General 

Teferi Tiyaru

ecosec@psi.gov.et

+251 115 506 066

Economic Policy Research and Studies Sector

The Policy Study Institute was established with the primary mandate of conducting study and research and initiate policies and strategies. It was established with the mission to conduct policy studies and researches in order to formulate, propose and advise on policy and strategic issues essential for the development of the country.

Study Centres

Agriculture and Rural Development Policy Research and Studies Centre

Centre Coordinator

Centre Coordinator

Tadesse Kuma (PhD)
Lead researcher
amrdpsc@psi.gov.et
+251115506066
Agriculture has been and will remain a way of life for millions of Ethiopians. The sector contributes about 33% of the GDP, employment for about 80% working-age population, 76% of the merchandise export earnings; 70 percent of input for agro-processing industries, and many others. Knowing its importance, the government of Ethiopia (GoE) has formulated and implemented large number of agricultural sector development policies and strategies. The major policy framework is based on the strategy of Agricultural Development-Led Industrialization (ADLI), which has been the central pillar of Ethiopia’s development vision since the 1990s. The Poverty Reduction Strategy Program (PRSP) was prepared and implemented in 2001, and the Sustainable Development and Poverty Reduction Plan (SDPRP) and the Plan for Accelerated and Sustainable Development to End Poverty (PASDEP) were formulated and implemented during 2002–2004 and 2005–2010, respectively. Since 2010/11, the government has implemented its third generation five-year Growth and Transformation Plan I (GTP I) in between 2010–2015. Currently, it has been implementing GTP II (2016-2020) which is an extension of the former. Since April 2018, the new government has formulated Home Grown Economic Reform (HGER) which bridge GTP II with the new Ten-Year Perspective Plans.

Industrial Development Policy Research and Studies Centre

Centre Coordinator

Centre Coordinator

Amare Matebu Kassa (PhD)
Lead researcher
ipsc@psi.gov.et
+251115506066
Industrial Development Policy Study Center (IDPS) is one of the policy study center in the FDRE, Policy Study Institute. The major focus or thematic areas of this center are Manufacturing industries (Small, Medium and Large scale); Investment (Domestic private, FDI, Public); Export and Import-substitution policy; Technology transfer and development; labor market and labor policy; Industrial relations; Rural Industrialization, Industrial Parks Development, Industrial Standards and capacity of production; and others.

Objectives:
  • Assess the existing gaps in Ethiopian industrial development policies/strategies and generate new policy/strategy ideas for the sustainable industrial development.
  • Identify Industrial policy/strategy implementation gaps and propose solutions to minimize or avoid the gaps/problems through scientific study.
  • Deliver a consultancy services to the stakeholders and actors in Ethiopian industrial development policy /strategy.

Major Accomplishments

Completed Policy Research Projects

Completed Policy Research Projects

Completed Policy Research Projects are:
  1. Study of Agro-Food Processing Industries in Ethiopia: Policy and Strategy Options for its Development (2015-2025)
  2. Study of Non-Food Agro-Processing Industries in Ethiopia: Policy Options to Strengthen and Expand the Subsector (2015-2025)
  3. Study of development of iron ore and metallurgy industries: challenges, prospects and policy/strategy options (2015 –2025)
  4. Development of Ethiopian Steel Industries: Challenges, Prospects, and Policy Options (2015 –2025)
  5. የሀገር ውስጥ የግል ባለሀብት በአምራች ኢንዱስትሪው ውስጥ የሞተርነት ሚናውን ከመጫዎት አኳያ ያሉት ተግዳሮቶች፣ ዕድሎችና የመፍትሄ አቅጣጫዎች
  6. Foreign Direct Investment in Ethiopia: Challenges, Opportunities and Policy Options for Effective Use to Stimulate Industrialization.
Policy Research Projects which are in progress

Environment and Climate Change Policy and Studies Centre

Centre Coordinator

Centre Coordinator

Tagel Gebrehiwot (PhD)
Lead Researcher
eccpsc@psi.gov.et
+251115506066
The Environment and Climate Research Centre (ECRC) at the Policy Studies Institute (PSI) aims to conduct high quality and rigorous policy-oriented research on the economics of climate and the environment, natural resource and sustainable development as well as undertake real-time impact evaluation studies of climate-related interventions and policies, with a focus on the implementation of the Climate Resilient Green Economy strategy outlined by the Ethiopian government. It also aims to provide evidence-based policy advice, compile and disseminate knowledge and data, serve as a research-policy interaction hub, and contribute to capacity building on the economics of climate change and the environment. The Policy Research and Impact Evaluation program of the Centre spans six research themes, addressing: Sustainable Agriculture, Sustainable Energy Transitions, Sustainable Water Resources Management, Sustainable Forest Management, Sustainable Industrialization, and Sustainable Urbanization. The Centre has about 16 full-time staff and two part-time staff. Six staffs are Senior Research Fellows. The Centre also serves as the Environment for Development Initiative (EfD) for Ethiopia.

Urban and Infrastructure Development Policy and Studies Centre

Centre Coordinator

Centre Coordinator

Tsega Adigu (PhD)
Researcher I
uidpsc@psi.gov.et
+251115506066
Although Ethiopia registered an economic growth that averaged 10 percent over the last two decades, its structural transformation has been quite slow. The GDP shares of the agriculture, industry and service sectors changed from 41.1, 18.6, and 39.4 percent in 2014/2015 to 33.3, 28.1, and 39.8 percent in 2018/2019. Currently, the manufacturing sector contributes less than 8% to GDP (lower than the Sub-Saharan Africa average, which is about 12%). Therefore, achievements in structural transformation in terms of a change in the structure of the economy measured by sector value-added towards the manufacturing sector have been limited. Similar conclusions can be reached when we measure structural transformation in terms of employment and export. More than 75% of employment and more than 80% of export revenue come from the agriculture sector. Consequently, structural transformation is at the top of Ethiopia's policy agenda.

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