It is worth mentioning that the newly implemented macroeconomic reform measures have kicked off addressing economic encounters such as foreign exchange crises, surges in prices, debt management sustainability, and more of the same. In the present circumstances, the reform has been yielding results within the bounds of alleviating inflation and other things of a similar kind at the earliest possible time.
As the country has been putting in place a broad range of effective strategies that can take the country’s economy to new heights, scores of cheerful trajectories have been witnessed in the length and breadth of the country.
When the federal government of Ethiopia plunged into effectuating the macroeconomic reform policy, some naysayers over and over again had been dragging through the mud the positive developments of the policy. They left no stone unturned to besmirch this breakthrough initiative. However, through the passage of time, the reform jumpstarted producing results and coming to fruition, proving the wet blankets wrong.
It is highly believed that if stockholders in the approved manner make use of macroeconomic prospects, the economic reform actions would highly breathe new life into the efficiency of the manufacturing industry.
Apart from creating a stable macroeconomic approach, consolidating the involvement of private sector and other things of a similar kind, the reform plays a paramount role in providing a unique opportunity to the manufacturing sector. Other than that the procedure would give the green light to address foreign exchange distortions, balance trade, and tackle inflation and others.
In the same manner, Ethiopia’s macroeconomic reform is a crucial step in uncovering new business opportunities for the nation by attracting both national and international financiers.
The National Bank of Ethiopia (NBE) Governor, Mamo Miheretu said that the undertaken economic reform measures would highly contribute to the effectiveness of manufacturing industry if investors properly utilize macroeconomic opportunities, according to information obtained from local media.
The measures would offer unique benefit to manufacturing sector. Mainly the foreign exchange floating would highly benefit in improving and strengthening the involvement of private sector creating a stable macroeconomic approach.
The reforms would support to develop competitive manufacturing sector to deliver positive economic outcome. They would enable to create more jobs, register promising performance and others, he added.
Furthermore, the action would enable to correct foreign exchange distortions, balance trade, and reduce inflation and others. Mentioning the measures are golden opportunities for private sector, especially for manufacturing industry to create sustainable jobs, resolve foreign exchange shortage, and expand investment, Mamo urged the private sector to galvanize their energy and utilize these opportunities.
Currently, investors can repatriate their 100% of income, dividend and other export earnings. This would enable investors to focus on their tasks, he added.
According to the Governor, the banking sector has been shifting, offering almost its generated resources or deposits to private sector creditors, which are basically intended to address manufacturing sector challenges in order to increase production and productivity and import substitution.
It is abundantly clear that the macroeconomic reform has been playing a paramount role in expediting the country’s sustainable growth. As the intended target of the macroeconomic reform policy cannot be achieved at the earliest possible time, everyone should stand by the side of the federal government.
In the same way, the reform serves as a stepping stone to finance, improve competitiveness, fashion new market opportunities and abolish trade barricades and whatnot.
Although the reimbursements may take time to fully put in place, the reform steps as an exhilarating view for Ethiopia’s business community and foreign direct investments. If the whole thing keeps going in the same path, investors from various parts of the world will invest in Ethiopia at the earliest possible time.
The comprehensive economic reform of Ethiopia will create an enabling environment for investment in the financial sector in the country, VISA Company Country Manager Yared Endale said. The country manager recently told ENA that the economic reform would encourage foreign investors to invest in the financial markets of Ethiopia.
The reform creates more confidence for foreign investors to be able to come and operate in the market and increase the volume of foreign currency flow to the country, he added. Above all, Yared noted that it transforms the landscape of the financial sector in Ethiopia.
“The opening up of the market and the foreign direct investment is really encouraging a lot of investors outside of the country to able to have more confidence to come and operate in the market.” According to him, all this transformation is really changing the landscape of the financial sector in Ethiopia.
Moreover, the country manager explained that the economic reform would further bring opportunities for domestic banks and financial institutions to grow their technological capabilities as the opening up of the market inspires and attracts foreign competitors who come with a lot of experience to invest in Ethiopia.
“Now the market is opening up. The competitors are coming with a lot of experiences which create opportunity for our banks to grow their technological capabilities. This will really increase the appetite for the banks to be able to transform,” Yared said.
The macroeconomic reform policy functions as a pivotal step towards the country’s economic transformation. As a matter of fact, this landmark deal has become instrumental in advancing essential macro-economic and microeconomic reforms in Ethiopia.
Apart from playing a paramount role in expediting essential reforms in Ethiopia, the intended purposes have got underway augmenting the business environment. It is expected that the macroeconomic reform policy will end up stabilizing the country’s economy in the course of time.
Ethiopia’s full implementation of macroeconomic reforms has significantly enhanced the country’s trading system, providing a more favorable environment for businesses, Democratic System Building Coordination Center Head with the rank of Deputy Prime Minister, Adem Farah remarked, according to information obtained from local media.
Speaking at the official inauguration of the Ethiopian Export Trade Exhibition Center recently, Adem emphasized the positive impact of the reforms on the business community. The government is committed to practical and sustainable export trade reforms, especially to expand its base, promote and create conducive environment in the sector, he reassured.
“The full implementation of macroeconomic reform has created a favorable trading environment that addresses the needs of businesses,” Adem stated.
Therefore, he urged businesses to capitalize on these favorable conditions to expand their operations, increase competitiveness, and contribute to Ethiopia’s sustainable economic growth.
Creating reformed and favorable trading condition is a major strategic goal of the Home Grown Economic Reform policy and the national 10-year development plan, he noted.
For favorable trade environment and sustainable growth, improving infrastructures and connection, revising law frameworks, facilitating bureaucracies, reducing barriers, and introducing effective administration are strategic directions of development.
The government, among others, expects major strategic results, including competitive domestic market, swift supply and trade chain that enable to assist interactions of customers and producers, improving export competition and performance from the trade reform measures.
Besides facilitating economic stability and enhanced growth, the recent macro-economic reform would bring meaningful impact in addressing private sector challenges, Addis Ababa Chamber of Commerce and Sectoral Association (AACCSA) disclosed.
It is recalled that AACCSA organized a half day discussion forum recently in collaboration with Ethiopian Coffee Association under the theme: “The impacts of the major revision of a country’s foreign exchange system on the national economy.”
In her opening remark, AACCSA’s President Mesenbet Shenkute said that the recent macroeconomic reform would help to reduce foreign currency crunch, increase investment and encourage export among others.
As to the president, the private sector has been facing foreign currency shortages and loan accesses in the past over many years.
She added that the sector has been playing an indispensable role in creating jobs, boosting production and productivity and maximizing revenues, while challenges related to infrastructure gaps, inflation, and others have hindered the sector’s competitiveness at the international level.
However, the recent macroeconomic reform, mainly the implementation of floating foreign exchange rates, will address the aforementioned challenges.
As macroeconomic reform has been proceeding in the right direction, everyone should work in close collaboration with the federal government for its successful implementation.
All and sundry should do everything they can to give the cold shoulder to worrywarts that have an intense aversion to Ethiopia’s development. As nothing makes them happier than dragging through the mire Ethiopia’s promising developments, they have sustained coming up with barefaced lies that do not reflect the tangible existence on the ground.
BY ADDISALEM MULAT
THE ETHIOPIAN HERALD TUESDAY 1 OCTOBER 2024
