The Ethiopian government has announced its ambitious plan to create 4.9 million jobs, both domestically and abroad, in the current fiscal year, according to the Ministry of Labor and Skills (MoLS). This initiative is part of a broader strategy aimed at tackling unemployment, which remains a significant challenge in the country.
The Ministry, in collaboration with the United Nations Development Programme (UNDP) and the Ethiopian Outsourcing Association (EOA), hosted a half-day forum on job creation under the theme “Creating Jobs for the Future: Uncovering the Key Drivers for the Growth of Ethiopia’s Outsourcing Industry.”
MoLS State Minister Solomon Soka emphasized that the government is taking proactive measures to ensure millions of Ethiopian citizens secure employment opportunities both locally and overseas. In the previous fiscal year, MoLS facilitated job placements for 3.7 million people, including 345,000 workers who found employment abroad.
However, the State Minister acknowledged that the unemployment rate remains alarmingly high, highlighting the critical role that the outsourcing industry could play in addressing this issue. Solomon cited the example of the United States, which generated over 500 million USD in revenue from the 14.3 million jobs created through outsourcing in 2021. This, he argued, demonstrates the potential for Ethiopia to leverage outsourcing as a key driver for job creation and foreign currency inflows.
He noted that approximately 2 million Ethiopians enter the job market every year, further increasing the demand for employment solutions. To address this, MoLS has set an ambitious target of securing over 14 million jobs by 2025. However, Solomon acknowledged that this target was set before the country began implementing significant reforms to improve the quality of education.
“The growing unemployment rate necessitates the creation of at least 4 million jobs annually," Solomon remarked, adding that to achieve this, Ethiopia must expand its digital infrastructure, improve the skill sets of its workforce, and strengthen collaboration between stakeholders and development partners.
Wondwosen Zewdie, President of the Ethiopian Outsourcing Association, echoed the importance of outsourcing for Ethiopia's economic development. He pointed out that the country has vast untapped potential to generate jobs through outsourcing but stressed the need for a strategic approach to fully realize this potential.
Outsourcing, Wondwosen added, not only creates jobs but also alleviates Ethiopia's foreign currency shortage and improves the overall livelihoods of its citizens. He underscored the importance of learning from the successes of countries like India and the Philippines, which have developed thriving Business Process Outsourcing (BPO) sectors that contribute significantly to their economies.
Ethiopia's vision of becoming a hub for outsourcing and digital jobs will require focused efforts to build skilled labor, develop infrastructure, and create an enabling environment for business. With the right approach, the nation could harness this growing industry to meet its employment goals and stimulate economic growth.