Following the effectuation of macroeconomic reform policy, Ethiopia has embarked on attaining the desired goal and moving forward in the right direction. In the present circumstances, the reform has already set in motion getting to the bottom of predicaments revolving around foreign currency shortage.
In a similar vein, Ethiopia’s macroeconomic reform policy has been getting involved in uncovering new business opportunities for the nation by alluring both domestic and overseas investors.
It is worth recalling that the federal government of Ethiopia, in the recent past, has jumpstarted implementing macroeconomic reform policy in the length and breadth of the country in the middle of a diverse range of negative and positive speculations. It is anticipated that the reform lays the foundation of guaranteeing national development by fashioning unchanging, all-embracing and natural capital economy down the road.
There is no gainsaying the fact that the macroeconomic reform policy for sure will smooth the path of competiveness, bring to an end impediments revolving around trade and what have you. In so doing it is possible to fashion emerging market prospects, overseas direct investments and creating favorable opportunities for investors in the shortest possible time.
Apart from improving economic conditions and fostering a more robust and favorable business environment, the reform signifies great strides forward and advantageous circumstance in attracting a vast range of investors from every nook and cranny of the world.
As a matter of fact, the fundaments building blocks of the reform policy get an eyeful of economic resilience and persistence providing enabling and economic competition enhancing productivity as well as offering quality of services.
Finance Minister Ahmed Shide said that, Ethiopia’s macroeconomic reform efforts have achieved greater success than that of many other nations, according to information obtained from local media. A macroeconomic team chaired by Prime Minister Abiy Ahmed (PhD) assessed in detail the performance of the reform over the past two months.
In his presser, the Finance Minister emphasized that the reform has been highly successful when compared to similar efforts in other countries. He noted that, one of the primary objectives of the reform was to ensure overall economic stability.
Ethiopia’s economy, despite significant social challenges, has continued to progress steadily. The minister further highlighted that inflationary pressures have not escalated and there are in fact signs of decreasing inflation.
According to him, macro economic reform in general and free-floating currency exchange in particular and the implementation of a new monetary policy in many countries have been creating problems.
In Ethiopia, the reform has been executed smoothly, contributing to stable conditions both within the economy and in the society. The other major goal of the macroeconomic reform is to boost revenue, Ahmed noted.
The Minister revealed that Prime Minister Abiy Ahmed had initiated the formation of a new task force and it has been striving over the past two months to enhance revenue. Ministries of Finance and Revenues, alongside the Customs Commission and other key government bodies, including the premier, have been working collaboratively to execute the plan. This joint effort has already shown positive results, with higher revenue performance compared to last Ethiopian fiscal year.
It is envisaged that the implementation of the economic reform policy without doubt will oil the wheels of Ethiopia’s economic growth and fashion a favorable environment for business and investment in the timeliest manner possible.
In actual fact, the encyclopedic implementation of the macroeconomic policy plays a prominent role in alleviating fritter away resources, augmenting productivity and investment in every corner of the country.
As the successful implementation of the macroeconomic reform policy is instrumental in modernizing foreign exchange management system and enhancing performance, pertinent bodies should make an all-out effort devoid of batting an eye.
It is quite clear that the implementation of Ethiopia’s reform as time goes on will reinforce the country’s exchange rate and macroeconomic stabilization policy.
In deed, the macroeconomic reform policy plays a huge role in inspiring the country’s economy by resolving difficulties surrounding foreign currency exchange and economic imbalances. In light of the current situation, the positive move of the macroeconomic reform policy has jumpstarted continuing to make progress and turning over a new leaf all over the country.
At the time when the reform was put in place, some groups were persistently making an effort to throw cold water on the positive move of the country utilizing their usual cock and bull stories, all their efforts have been going for nothing. Though they move heaven and earth to tarnish the promising move, the reform has been heading in the right direction.
Ethiopia’s recent macroeconomic reforms, implemented since last July, are beginning to yield positive outcomes for the nation’s economic landscape, particularly in the realm of Foreign Direct Investment (FDI). The Ethiopian Investment Commission (EIC) reports a notable 12% increase in FDI flows over the past three months compared to the same period last year, signaling a robust recovery in investment activities.
A key reform allowing foreign wholesalers and retailers to operate within the local market has particularly drawn interest from new investors. EIC Commissioner, Zeleke Temesgen (PhD) noted, “About 72 investors have expressed interest in the newly opened sectors; 42 aim to engage in importing commodities, while 31 seek to invest in the export sector.” So far, 22 proposals have been submitted, with 18 investors already licensed to commence operations.
During a recent address to the joint session of the House of People’s Representatives and the House of Federation, President Taye Atsekeselassie outlined ambitious economic goals for the fiscal year, projecting an 8.4% growth rate, with value-added exports anticipated to reach five billion USD and total export revenues hitting 10 billion USD.
Zeleke highlighted an influx of Chinese investors following the reforms, which have significantly bolstered Ethiopia’s economy through capital flow, job creation, and technological advancements. Currently, there are about 3,303 Chinese projects in Ethiopia, with a combined portfolio valued at 8.5 billion USD. Since 2022, 322 new Chinese investors have been licensed, demonstrating a significant increase in their activity.
As the reform plays a huge role in taking Ethiopia’s economy to the next level of accomplishment at the earliest possible juncture, stakeholders should do everything they can for the attainment of the objectives and attaining the goals.
For the sake of truth, if the positive journey keeps moving in the right direction, achieving the desired goal will be as easy as falling off a log and easy as shooting fish in a barrel.
It is certain that Ethiopia has carried out noteworthy economic policy reform with a focus on blossoming the country’s economy embracing the liberalization of a wide spectrum of sectors all over the country which scratch together a competitive, market-oriented foreign currency exchange rate and more of the same.
Leaders of Political parties in Ethiopia have pledged their support for the government’s ongoing macroeconomic reforms, aimed at stabilizing the economy and promoting sustainable development, according to information obtained from ENA.
The leaders of the parties met with the Minister of Planning and Development, Fitsm Asefa and discussed the progress and objectives of the macroeconomic reforms. On the occasion, Fitsum highlighted the positive results achieved so far, including increased foreign exchange reserves, higher export earnings, and improved sector productivity.
The government has allocated significant resources to mitigate the impact of reforms on citizens, particularly through subsidies for essential goods like fuel, fertilizer, and medicines.
The government has collected 180.3 billion Birr in tax revenue over the past three months, exceeding the same period of the previous fiscal year by 71 billion birr. This achievement is attributed to comprehensive macroeconomic reforms aimed at establishing a stable economic environment, she said.
The minister emphasized the importance of political-economic cooperation for the success of the reforms. “By working together, we can build a stable macroeconomic foundation and ensure a prosperous future for Ethiopia,” she stated.
The leaders of the political parties expressed their commitment to supporting the government’s efforts.
“Economic development is a long-term endeavor that requires sustained growth,” head of the Democratic Culture at the Prosperity Party and Vice President of the Joint Council of Ethiopian Political Parties, Melese Alemu said, adding “We are united in our goal of building a stronger and more resilient nation.”
BY ADDISALEM MULAT
THE ETHIOPIAN HERALD TUESDAY 5 NOVEMBER 2024
