It is noteworthy that the newly instigated macroeconomic reform policy plays a very important part in bolstering the economic growth of the nation and fashioning the self-confidence of financiers and smoothing the path of tomorrow’s Ethiopia and attracting investors from various parts of the world. On top of that the new reform plays a big part in creating a better macroeconomic environment and fostering self-confidence of investors in all regions of the country at the earliest possible moment.
On the heels of the implementation of the macroeconomic reform policy in all areas of the country, people from all backgrounds have been enunciating their ideas, feelings and thoughts in a number of respects and in widely different manners. As a matter of fact, apart from attracting investors from various parts of the world, the reform policy through the passage of time will embark on attracting overseas investors and alleviating shortage of foreign currencies in the course of time.
In a similar vein, the reform policy is turning out to be a great advocate for foreign direct investment flows. Aside from that, the enthusiasm and pledge of the federal government of Ethiopia to promote and have a very friendly investment setting for investors and the country is out of this world.
Apart from oiling the wheels of all-inclusive and progressive economy, the new policy reform beyond a shadow of a doubt will take the country to new heights setting up an internationally competitive economic system. In more concert terms, it is envisioned that if the whole thing continues heading in the same path taking the country to new frontiers and unprecedented heights will be as easy as falling off a log and shooting fish in a barrel.
It is highly likely that the reform policy takes a role in curtailing foreign currencies shortage, financial instability, and making stable economy certain in every region of the country. Though a lot has been said by doomsayers with respect to the macroeconomic reform policy implementation, the country has kicked off harvesting the fruits of accomplishment and moving progress in the right direction.
Ethiopia’s latest comprehensive macroeconomic reform tailored to build vibrant and effective free economy, said the Ministry of Planning and Development (MoPD). The MoPD Development Planning and Government Investment Administration Lead Executive Officer, Bereket Fisehatsion told recently The Ethiopian Press Agency (EPA) that, the comprehensive macroeconomic reform would have a range of contributions such as increasing productivity, substituting imports, overcoming debt burden, improving foreign exchange earnings and so on.
Over the past years, the country has been undertaking various short and long term economic reforms, which include the ten-year development plan, homegrown economic reform and macroeconomic reform agendas. The floating foreign exchange rate system is one of the macroeconomic reform agenda that the country lately introduced to overcome economic challenges, he said.
This system would address the country’s structural economic problems contributing to allocate resources in effective sectors, overcoming macroeconomic distortions, ensuring sustainable economic growth and its competitiveness, minimizing debt, ensuring fair and effective distribution of foreign exchange in successful sectors, encouraging production and productivity, correcting foreign exchange rate and others, Bereket added.
Furthermore, it has a huge contribution to attracting FDI, substituting import, balancing trade deficit and debt structuring among others. In the long run, the new system would reduce debt to GDP ratio and it leads to increase export and revenue, he noted.
The fundamentals of this reform is getting the price right. If there is a right price in the country, the lenders would release extra finance to mobilize development finance. As a result, the country’s debt servicing would be significantly improved.
The current macroeconomic reform is directly related with the previous economic reforms and one of the reform measures that planned in the second homegrown economic reform agenda. There would be community sectors that might be impacted following the reform so that the government is working on safety net, subsidization and others legal measures to tackle these challenges.
As bringing to bear the new policy reform will make a huge contribution to the country’s economy, everyone should stand with one accord for the successful implementation of the macroeconomic policy. Following the positive moves of the reform, people from all segments of society have sustained expressing their boundless joy.
It must be recognized that as the policy change in the sector awakens the system with modern macroeconomic outline, enhance the investment and trade atmosphere, upgrade productive capacity, and other things of a similar kind, the public at large has been articulating their positive views.
In point of fact, the full implementation of macroeconomic reform policy has set in motion on account of the determination and hard work of the federal government with the objective of taking the county to a higher level and higher standard.
Ethiopia’s full implementation of economic reform policy measures would expedite the country’s effort for accession of World Trade Organization (WTO), Trade and Regional Integration Minister Kassahun Gofe underscored, according to information obtained from local media.
The Minister made the remark recently at a panel discussion held between pertinent government entities and the private sectors to discuss on challenges of domestic investors in Ethiopia.
The participants exchanged views on challenges and opportunities that arise with the opening up of the market following the economic reform measures being undertaken by the government of Ethiopia.
The minister emphasized most importantly that Ethiopia’s immense economic potential will enable the private sector to be more innovative, productive and competitive in the international market.
Moreover, the economic reform measures will play pivotal role to further advance Ethiopia’s WTO accession efforts which would bring more opportunities for the private sectors to access international markets, the Minister emphasized.
Ethiopian Chamber of Commerce and Sectorial Associations (ECCSA) Vice President, Aynalem Abayneh, on his part reiterated that the private sectors are engines of the economy that contribute the lion’s share in the overall economic development of the country.
Hence, beyond production, the vice president urged the private sectors to actively engage in innovation by enhancing their technological capabilities to cope up with the challenges that may arise with the coming up of the reform measures.
Zemedeneh Nigatu, an economist, on his part said that the economic reform being undertaken in Ethiopia is an encouraging measure to bring about a vibrant economy by transforming the private sectors in the long run.
“Over the past years, there have been significant development cooperation and financing efforts and negotiations for the implementation of our Home-Grown Economic Reform program. These negotiations have been conducted with adequate knowledge and wisdom for outcomes that protect Ethiopia’s national interests and improve the lives and livelihoods of our citizens,” Prime Minister Abiy Ahmed (PhD) said.
As long as the new macroeconomic policy plays a huge role in taking the country to tomorrow’s further stage and higher standard, everyone from all sections of the population should go to the ends of the earth by giving the cold shoulder to worryguts that every so often come up with fake news stories. The new macro-economic reform would boom the leather industry as it coincided with the rise in global leather market, Ethiopian Leather Industry and Research Development Center indicated.
Center’s Managing Director, Mohammed Hussien told the Ethiopian Press Agency (EPA) that, the macroeconomic reform coupled with the spur in the international leather market could contribute hugely for the success of the leather industry.
He said absence of adequate foreign currency remained a challenge in most sectors including leather industry which constrained the nation to benefit as per to its abundant resources. Thus, the reform would put positive impact on addressing the challenge.
The leather industry had not only affected by internal factors, however the external issues such as COVID-19 pandemic and other global crisis have hugely contributed to the failure, he stressed.
“The fact that due emphasis has been given to alleviating the obstacles would help the nation to address major constraints of the sector eventually,” Mohammed said.
Similarly, the international market is showing promising progress and business has started to get to normal. Thus, the nation aspires to seize the opportunity and perform better through integrated approach, the Manager indicated.
As a result, the center has planned to amass about 68 million USD from the leather sector in the coming year. Last year, it was able to gain around 27.7 million USD, which is 60% of the plan.
BY ADDISALEM MULAT
THE ETHIOPIAN HERALD TUESDAY 10 SEPTEMBER 2024
