Ethiopia is on the brink of unlocking billions of USD in trade opportunities for the private sector, driven by its engagement in continental trade and anticipated GDP growth. Deputy Prime Minister Temesgen Tiruneh has urged manufacturers and exporters to boost their competitiveness in both African and global markets.
Central to this economic transformation are the Homegrown Economic Reforms, which focus on increasing private sector participation in key sectors like mining, agriculture, and manufacturing-areas identified as having untapped potential for trade, according to the Ministry of Trade and Regional Integration (MoTRI).
The government’s emphasis on private sector engagement aims to enhance Ethiopia’s competitive edge internationally, creating lucrative trade opportunities worth billions of USD, as highlighted by the African Continental Free Trade Area (AfCFTA) official website. Deputy Prime Minister Temesgen reaffirmed the government’s commitment to supporting local manufacturers and exporters, emphasizing the need to improve competitiveness amid efforts to boost economic growth and balance trade.
Despite facing challenges in its import-export trade balance, Ethiopia’s commitment to economic reforms is seen as a critical step toward achieving a more balanced market environment. During a recent public-private dialogue, Temesgen reiterated the government’s dedication to policy and structural reforms to foster private sector participation, a vital aspect of enhancing the country’s trade position.
International observers, including AfCFTA Secretary General Wamkele Mene, have praised Ethiopia’s proactive approach to economic reforms and its significant role in implementing the agreement. Ethiopia’s alignment with AfCFTA modalities and tariff offers underscores its commitment to facilitating trade across the continent.
With its strategic position as Africa’s second most populous country and a resilient economy, Ethiopia is well-positioned to be a key player in AfCFTA. Despite global challenges, Ethiopia’s economy is projected to grow by 6.2% in 2024 and 6.5% in 2025. These economic reforms and strategic positioning offer substantial opportunities for the private sector to expand beyond East Africa and deepen its integration into the continental economy.
The AfCFTA is considered a catalyst for enhancing Ethiopia’s export trade, offering substantial benefits for businesses to extend their reach and integrate more fully into the African market. Ongoing policy reforms, such as liberalizing the currency exchange regime and opening state-owned enterprises to private investment, are designed to create a more favorable environment for private sector growth.
MoTRI Minister Kasahun Gofe emphasized that these reforms will only succeed if the private sector actively engages in export activities. The government’s support for the private sector is evident through fostering public-private partnerships and engaging in regular dialogues to address export sector challenges and opportunities. “The AfCFTA platform provides a unique opportunity for local traders to tap into the broader continental market,” he remarked.
To maximize these opportunities, the private sector must intensify efforts to align with the government’s trade and economic goals.
BY YESUF ENDRIS
The Ethiopian herald September 1/2024
