It is important to highlight that the newly implemented macroeconomic policy has been fashioning vivacious and active economy that can take the country’s economy to whole other level just around the corner.
If the macroeconomic reform policy is put in place on the proper way, beyond a shadow of a doubt, it will boost productivity, facilitate imports, overcome debt burden, progress foreign currency earnings and more of the same at the earliest possible time.
It has commonly been assumed that the reform plays a paramount role in making economic growth happen, tackling structural economic predicaments and other things of a similar kind. Against this backdrop, no matter what naysayers say the positive development unfolding across the country signals the fact that the future is rosy for Ethiopia.
It should be remembered that over the course of years, Ethiopia has undertaken a broad range of economic reforms with the intention of addressing potential economic challenges. Apart from attracting FDI, import exchange, balancing deficit in trade, debt structuring and other things of a similar kind, it is anticipated that the reform policy will play a huge role in burgeoning export and revenue.
Approached by local media, Economist and policy advisor Costantinos Berhutesfa (PhD) noted that manufacturing requires huge capital as the entry of foreign banks are anticipated to bring about substantial finance. The liberalization of monetary policy in terms of the interest rate and exchange rate is going to contribute as main pillars for investment in the industrial sector, he pointed out.
Recall that the government of Ethiopia has already embarked on the full implementation of macroeconomic reform policy which introduces a competitive, market-based foreign exchange rate regime. Ethiopia marks this transformative moment in its economic journey to becoming among Africa’s most vibrant, open, and competitive economies, it was learned.
Apart from that following its ambition in the industrial sector, Ethiopia has been working to transform the industrial parks into dynamic economic zones by incorporating additional services in the coming 5 to 10 years.
Transforming the industrial parks into special economic zones will make them centers of urbanization by incorporating trade, manufacturing, and logistics.
It is worth mentioning that the macroeconomic reform plays a huge role in fashioning supportable jobs, getting higher investments, contributing significantly to the national economy, and other things of a similar kind. It is envisaged that the macroeconomic reform implementation has been breathing new life into private sector affordability.
Moreover, the reforms concentrate on tackling the needs of the manufacturing sector to boost production, productivity, and import substitution. In the present circumstances, on the heels of the macroeconomic reform implementation, Ethiopia has jumpstarted heading in the right direction.
Notwithstanding the fact that a lot has been said by worrywarts on the subject of the reform of macroeconomic policy, it has set in motion attaining the intended target in the shortest possible time. Following the positive moves of the macroeconomic reform implementation, the country has kicked off progressing in the right direction. On the basis thereof, the country’s momentous macroeconomic reforms have begun increasing the private sector involvement.
Ethiopian banks have launched a large-scale remittance campaign recently aimed at promoting the legal transfer of diaspora finances to assist national development, the National Bank of Ethiopia (NBE) announced.
Under the guidance of NBE, all Ethiopian banks have launched a remittance campaign dubbed “DEBO,” to encourage Ethiopians living abroad to legally send remittance home. The NBE disclosed that all banks have pledged to provide over 100 billion Birr loans as part of the remittance campaign which stays for the coming six months.
During the launching event, NBE Governor, Mamo Mihretu said that the remittance campaign will involve a major initiative that encourages Ethiopians abroad to remit funds via banks by offering attractive exchange rates, opening accounts in local or foreign currency, and taking advantage of various savings and lending products such as mortgage loans, vehicle loans, and SME loans linked to remittances.
The federal government has instigated most important measures in the macroeconomic reform sector and yielding satisfactory results. Against this backdrop, the whole lot has set in motion pointing in the right direction and proving wet blankets wrong.
In actual fact, the government has been sparing no effort to smooth the path of the competitiveness and efficiency of the private sector leading to job creation and improved performance. Ethiopia’s macroeconomic reform is a critical step in opening up new markets for the nation by attracting both domestic and international investors, Expert in Social Development focusing on Africa, Sunil Verma recently remarked.
The government of Ethiopia announced recently that it has embarked on full implementation of macroeconomic reform policy which is believed to guarantee national development by creating stable, comprehensive and sustainable economy. Talking to ENA, Verma described this macroeconomic reform as an exciting phase for the country’s sustainable development.
“This is an exciting phase for Ethiopia. I am confident that every Ethiopian citizen is proud of the new steps that have been taken up by the government,” he elaborated.
However, Verma emphasized the need for patience as the reforms are implemented and their impact on investors both local and foreign is assessed. This macroeconomic reform represents a promising development, poised to attract a diverse range of investors and significantly impact Ethiopia’s economic landscape.
Ethiopia’s ongoing macroeconomic reforms plays a huge role in paving the way for the manufacturing sector and attracting investors from various parts of the world, fostering Direct Investment, enhancing financial accessibility and other related aspects.
The reform will further lift the spirits of investors to set up their business in Ethiopia. In the aftermath of the positive moves of the reform, people from all walks of life have been expressing their outlooks at various points in time.
As the macroeconomic reform is vital to seize economic growth on the grounds that the reform oils the wheels of import and export trade businesses, bring sustainable growth, and other things of a similar kind, all and sundry should stand by the side of the government without batting an eye.
In a similar vein, the reform pave the way for addressing foreign exchange crunch, boosting production, encouraging exporters, attracting foreign direct investment, filling the import and export gaps.
The full implementation of macroeconomic reform policy in Ethiopia is a big change to further place the country as a more favorable destination for Foreign Direct Investment (FDI), Ethiopian Investment Commissioner, Hanna Arayaselassie lately remarked.
The government of Ethiopia announced recently that it has embarked on full implementation of macroeconomic reform policy. In an exclusive interview with ENA, Commissioner Hanna said that the macroeconomic reform policy is a very big change to further enhancing investment in Ethiopia.
So far, the nation had very good successes in attracting FDI, she said, adding but one of the burning issues and continuous challenges for investments have been shortages of foreign currency. The floating of the currency will have a very good impact on that. As investors look at Ethiopia as a potential destination for their investment, one of the key challenges that they bring up has now been addressed.
Because in the previous discussions with investors, they had serious concerns as to how to access foreign exchange, in terms of getting their inputs, repatriating their profits and to be able to pay off their foreign debts, among other things.
Taking the positive moves of the reform policy into account, people from all backgrounds have been forwarding their considerations in a variety of forms and patting the government on the back. In former times, investors had no enough access to foreign exchange. But in this day and age thanks to the new macroeconomic reform policy, they have access to hard currency.
As the macroeconomic reform is vital to bring sustainable development, everyone should stand in unison with the federal government. African Financial Integrity and Accountability Program’s Coordinator, Getachew Teklemariam told The Ethiopian Press Agency (EPA) that the macroeconomic reform is significant to realize economic development.
For years, there was a high level of loan burden in Ethiopia that forced the private sector to struggle with the inaccessibility of adequate foreign exchange. In the previous system, exporters paid taxes and importers were subsidized, but it was not fair and many business communities were harmed in such a way. “That is why I said the macroeconomic reform is substantial,” he added.
Indeed, Ethiopian economy has been facing different factors such as conflict, but the macroeconomic reform is vital to bring sustainable development. However, the government should provide subsidy for those who might face challenges in the implementation period,” Getachew suggested.
The floating exchange rate would help the business community for facilitating activities and ensuring international competitiveness. “In this regard,” he said, “The government has made its preliminary activities especially in supplying money so as to reduce shortages.”
BY ADDISALEM MULAT
THE ETHIOPIAN HERALD TUESDAY 17 SEPTEMBER 2024
