ADDIS ABABA – The macroeconomic reform has brought a transformative shift on the national economic growth, the Ministry of Planning and Development (MoPD) said, unveiling its magnificent roles for the macroeconomic ecosystem.
Speaking to the Ethiopian Press Agency (EPA), MoPD Minister Fitsum Assefa (PhD) stated that the introduction of the comprehensive macroeconomic reform is significantly contributing to the development of prime sectors and propelling the country’s overall economic growth.
She further added that the reform measures also smash a significant opportunity on tax policies and administrations, revenue systems, digital transactions and procurement, and improving the business environment.
Similarly, she noted that the government has been undertaking comprehensive policy shifts and economic policies on the national socioeconomic development endeavors by spearheading viable implementation mechanisms over the past five years.
Noting the country’s economic development journey that has long been challenged due to lack of structural economic setbacks, she stated that this resulted in development inefficiencies ranging from individual to the national levels.
She said that in line with sectors that boost productivity and competitiveness, systemic and structural issues have also been given special priorities under the home grown economic reform agenda to drive advanced and competitive economic virtues.
Similarly, ranges of investment proclamations and guidelines have been framed in this reform in a bid to address structural challenges in the home grown phase thereby freshening enabling business environment, upgrading service delivery among many others.
“In addition to stimulating the economy, the reform has brought a transformative shift on the digitization process among other structural shifts in various priority sectors. Also, it has created a profound playground for state owned-enterprises and private sectors to hold seamless operations in the economy.”
According to her, over the entire phases of the reforms, the country has improved the fiscal and macro economy and managed government expenditures, projects execution, debt restructuring, thus enhancing revenue generation.
“The national foreign debt in GDP ratio reaches 13:7, showing a significant reduction by 30%.” she said.
Mamo Mihiretu, the National Bank Governor, emphasized that the home-grown economic program represents a historic reset of the Ethiopian economy and a transformative moment for its economy with open, market based exchange rate, FDI friendly regimes that are the fundamental drivers of the reform taking place.
Mamo also stated that modernizing the interest-based monetary policy helps rein in inflation, stating the introduction of new market infrastructure and policies in the national economy unleashing productivity, addressing challenges, and boosting productivity in the country’s economic growth.
“Under the reform initiative, the current foreign currency inflow in the country has registered a dramatic improvement, the central bank and banking sector reserve has doubled, and access to forex for the private sector increased.”
To mitigate the impact of the reform on lower-income segments of society, the government has implemented a budget subsidy system, salary increment, fuel, fertilizer subsidy and the like to address the potential challenges of the reform, he added.
He further noted that the country is expecting to pursue a prudent macroeconomic stability through enhanced private sector participation.
According to the IMF forecast, he indicated that, “The Ethiopian economy is projected to hit 8% growth in the next four years.”
BY ASHENAFI ANIMUT
THE ETHIOPIAN HERALD WEDNESDAY 15 JANUARY 2025
