Hailemariam's announcement comes amid a political crisis and lingering unrest in the Horn of Africa country, which has been releasing thousands of political prisoners to ease tensions.
"Unrest and a political crisis have led to the loss of lives and displacement of many," Hailemariam said in a televised address on Thursday.
"I see my resignation as vital in the bid to carry out reforms that would lead to sustainable peace and democracy," he said.
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