- Ethiopia to access additional 251 Million USD
ADDIS ABABA – The International Monetary Fund (IMF) announced a significant milestone in its partnership with Ethiopia, concluding a staff-level agreement for the second review of the four-year Extended Credit Facility (ECF) arrangement.
With the second review approaching formal approval, Ethiopia is set to access an additional 251 million USD, in which the funds are expected to stabilize the economy and foster a conducive environment to sustainable growth.
According to IMF, the agreement highlights the progress Ethiopia is making in its homegrown economic reform program, offering hope for continued growth and stability.
The deal may pave the way for a strategic partnership focused on economic reforms. IMF staff, led by Álvaro Piris, engaged in extensive discussions with Ethiopian officials, including Finance Minister Ahmed Shide and National Bank Governor MamoMihretu, during a mission from November 12 to 26, 2024.
The financial agency stated that its delegation also consulted key stakeholders from the banking and business sectors to evaluate the progress and priorities of Ethiopia’s economic program.
Piris expressed gratitude for the dedication and proactive measures taken by Ethiopian authorities in implementing the economic reform agenda.
He praised the constructive dialogue with officials and stakeholders, which has been vital for advancing the reform initiatives.
The next steps involve pending approval of the agreement by the IMF management and Executive Board in the coming weeks. Future reviews of the ECF arrangement will be conducted every six months to ensure Ethiopia remains on track with its progress.
According to the IMF’s press release, one of the notable successes of Ethiopia’s reform program has been the shift to a market-determined exchange rate. This policy change has significantly alleviated foreign exchange shortages, a long-standing issue for the Ethiopian economy. The narrowing gap between official and parallel exchange rates—now below 10%—underscores the positive impact of these reforms.
As Ethiopia continues its economic transformation journey, its collaboration with the IMF stands as a testament to the country’s commitment to reform and resilience. With improved foreign exchange conditions, controlled inflation, and a strong focus on sustainable growth, Ethiopia is laying a solid foundation for a more prosperous future.It is worth noting that in July 2024, the IMF approved a 3.4 billion USD ECF arrangement to support
BY MENGISTEAB TESHOME
The Ethiopian Herald December 1/2024
