-Association launches report on Ethiopian economy
ADDIS ABABA – Financial inclusion in Ethiopia has shown notable improvement, largely driven by the expansion of digital financial services, according to a new report by the Ethiopian Economics Association (EEA).
The EEA officially launched its latest report on the Ethiopian economy on Thursday, covering the period from 2000/01 to 2023/24. The comprehensive study offers a panoramic, data-driven evaluation of the country’s economic transformation over the past two decades.
Speaking at the event, EEA’s Partnership and Communication Director, Abule Mehare (PhD), stated that the rise of digital financial platforms, such as mobile money services like Telebirr, has played a pivotal role in expanding financial access across the country. He noted that the growing availability of credit to the private sector signals a shift toward a more business-friendly economic environment.
“Further efforts are needed to strengthen financial inclusivity and promote a private sector-led economy,” Abule added. “Supporting economic growth requires sound policies and effective initiatives.”
He also pointed out that while exports have increased, imports continue to rise, resulting in a persistent trade imbalance. To improve export performance, he recommended diversifying exports, focusing on more complex and competitive products, enhancing institutional capacity, aligning trade policies with current development needs, and leveraging Ethiopia’s comparative advantages.
Regarding fiscal performance, Abule highlighted a steady increase in government tax revenue, with over 88% of domestic revenue now coming from taxes. Although this is a positive trend, the tax-to-GDP ratio remains low, indicating untapped potential.
He also noted that delays in mega projects had previously contributed to the country’s debt burden. However, Ethiopia’s debt level is currently low compared to other Sub-Saharan African nations. To sustain this, he underscored the need for robust debt assessment and management strategies, as well as coordinated efforts to boost exports and revenue mobilization.
EEA CEO Prof. Mengistu Ketema emphasized the report’s role in bridging the gap between research and policy-making. “Projects, strategies, and policies must be designed with equity in mind, ensuring that all Ethiopians benefit from economic progress,” he said.
BY TSEGAYE TILAHUN
THE ETHIOPIAN HERALD SATURDAY 24 MAY 2025
