IMF Chief optimistic about Ethiopia’s economic progress

• Urges continued reform

ADDIS ABABA – International Monetary Fund (IMF) Managing Director Kristalina Georgieva expressed strong optimism about Ethiopia’s economic future, while urging Ethiopians to remain patient and support ongoing reforms.

During a recent joint press briefing with the Ministry of Finance, Kristalina commended Ethiopia’s “exemplary and effective” homegrown macroeconomic reform program. She emphasized the IMF’s commitment to supporting these reforms, which aim to transform the economy, create a favorable environment for private sector investment, generate jobs, and improve living standards.

Kristalina highlighted Ethiopia’s impressive 8.1% GDP growth, surpassing the IMF’s 6.1% projection. This growth, she noted, was driven by increased private sector engagement and productivity across agriculture, industry, and services.

To further bolster economic progress, Kristalina stressed the importance of collaborative efforts, sound fiscal and monetary policies, increased productivity, and higher export volumes to control inflation. She observed the visible transformation of Addis Ababa since her last visit in 2018, noting its improved suitability for businesses and residents.

The IMF chief pledged continued collaboration with Ethiopia in economic initiatives, financial support, and capacity development. She emphasized the need to strengthen monetary policy and enhance the National Bank’s capacity to sustainably boost economic activity, reduce inflation, stabilize living costs, increase exports, and generate revenue.

“Transformation is not instant coffee,” Kristalina stated. “It takes time, determination, strong political will from the government, and the support of the people of Ethiopia.” She affirmed her belief in Ethiopia’s inevitable economic transformation and its implications for the region and the continent.

On the occasion, Finance Minister Ahmed Shide underscored that a private sector-led investment strategy and market-driven growth are key pillars of the reform program. He emphasized the government’s commitment to ensuring sustainable, broad-based development and mitigating the effects of reforms.

Ahmed highlighted the comprehensive nature of the reform program, which aims to improve the stability and competitiveness of the financial system, enhance public service delivery, and accelerate productivity through inclusive digitization. He noted that the reform-driven monetary and fiscal policies have narrowed the gap between formal and parallel markets, improved the balance of payments, curbed inflation, and boosted government revenue. He expressed Ethiopia’s eagerness to collaborate with international and domestic investors.

The minister reiterated Ethiopia’s role as a pillar of regional economic development, emphasizing the opportunities available for domestic and international investments in key sectors driving the macro economy.

During her two-day visit, Kristalina’s itinerary included visits to a Women’s Skill Development Center, a Blinds Boarding School, the National Bank, and the Adwa Victory Memorial Museum, among other engagements.

BY ASHENAFI ANIMUT

THE ETHIOPIAN HERALD TUESDAY 11 FEBRUARY

Recommended For You