From the signing of the Ethiopia and Somaliland sea access deal to the launching of the power generation of the 3rd and 4th turbines of Ethiopia’s Grand Renaissance Dam (GERD), Ethiopia has remained resilient in the face of adversaries and against all odds.
Despite the ongoing instability in some pockets of Amhara and Oromia states, the country has seen various successful progresses in terms of restoring peace, completing development projects and economic reforms.
The completion of the 3rd and 4th turbines and the commencement of power generation have heralded a new energy revolution for the country. To enter this stage, the construction of the colossal dam has been through various odds. The project has been a target of constant barrages of misinformation and smear campaigns. However, the reliance of the Ethiopian people here and abroad coupled with the unwavering resolve of the incumbent has made it possible to put the dam into the final lap. Now the project will connect millions to the grid.
Above all, despite some chaos in some parts of the country, Ethiopia has been making much bigger progress in ensuring peace and stability. There have visibly been significant improvements in humanitarian situations and security status in the country. With the country poised to stage national dialogue and transitional justice, there has already been some headway in restoring stability.
Diplomatically, the country has been walking a fine line between the west and east. Being the anchor state in the Horn, Ethiopia continues to maintain a balanced and neutral position in its relations with the global community. The country has been admitted to the BRICS bloc and also has been taking center stage in global frontiers.
In another important development, Ethiopia and Somaliland have entered a breakthrough sea access deal. This grand deal sent a new dawn of cooperation in the Horn of Africa. Ethiopia’s signing of a memorandum of understanding with Somaliland—which is in line with the former’s legitimate quest for access to the sea, also came as a vital event opening the door for regional cooperation. However, since the signing, there has been a collusion of internal and external forces to disrupt the cooperation although the signatories remained resilient and resolute to implement the deal. Despite the ongoing efforts to derail the path, Ethiopia is navigating the region towards economic integration.
In terms of the economy, the year has been marked by the vigorous implementation of “the Home Grown Economic Reform,” and sweeping economic reform which aims to address the nation’s economic problems with the active support of international financial institutions like the World Bank Group and the International Monetary Fund. On 29 July, the National Bank of Ethiopia bank introduced a floating exchange rate regime. The same day, the IMF Board approved an Extended Credit Facility (ECF) arrangement of about USD 3.4 billion, with a USD 1 billion immediate disbursement. The World Bank followed the IMF announcement with the pledge of USD 16.6 billion of funding over the next three years, including a USD 1 billion IDA grant and a USD 500 million concessional loan.
These institutions attest to the country’s correct economic direction, even though the adjustment made to foreign exchange rates has resulted in an immediate inflationary tendency. To lessen inflation, lower foreign debt, and promote self-reliance, the government has been promoting increased production and the replacement of imported commodities.
In the same year, Addis Ababa had the most extensive reconstruction and renovations ever, transforming the city into a contemporary, clean, and ecologically pleasant place to live. The corridor project has been completed one after the other giving the city a fine look. All these achievements did not come without challenges. The country has been facing security problems in Amhara Oromia and other parts of the country. Inflation continues to pose economic hardships and the Horn region heading to increased uncertainty. These internal and external woes pose tremendous challenges to the country. Yet again, the above success stories also showcase that with hardwork and commitment; the country can bypass challenges and meet its priorities.
THE ETHIOPIAN HERALD FRIDAY 6 SEPTEMBER 2024
