What effort to drive Home Grown Economic Reform?

For a country influenced by external factors and international financial organizations, diplomacy is a means to an essential and most cost-effective engine, particularly during the times when new financial laws’ adoption. Ethiopia, now implementing the second phase of the Homegrown Economic Reform (HGER), has revealed a new guide to its diplomacy towards the reform implementation considering diplomatic works as a tool of promotion.

The newly published Diplomatic Guide for the Home-Grown Economic Reform, jointly presented by Ministry of foreign Affairs and Ministry of Finance, clearly signals a strategic approach of the government on diplomatic means not only to strengthen its foreign relations, but also to the country’s domestic economic agenda.

Foreign Minister Gedion Timothewos (PhD) and Finance Minister Ahmed Shide, during their speech, while unveiling the Guide, underlined that the successful implementation of the homegrown economic policy needs beyond technical policy implementations. The dynamic and outward-facing engagement with global partners needs a diplomatic approach clearly informing about the process and the aim of the reform, they stated.

Economic diplomatic information serves to attract foreign direct investment, enhance trade ties, secure better terms of international development finance, and promote Ethiopia’s competitiveness on the global stage, said Foreign Minister Gedion.

Central to this approach, the Diplomatic Guide has also clearly stating about Ethiopia’s commitment to finalizing WTO membership, leveraging opportunities within the African Continental Free Trade Area, and aligning investment protection frameworks to foster trust and legal certainty for international investors.

Finance Minister Ahmed Shide also reinforced the perspective by the Foreign Minister, saying “framing the diplomatic engagements as a central pillar to promote the implementation of HGER’s second phase” is now needed much more than previous times.

He underscored the importance of transparent, responsible diplomatic approach and strong partnerships with both bilateral and multilateral actors.

The macro-economic reform, as stated on the document, aims macroeconomic stability, productivity enhancement, and inclusive growth to be realized which all needs broaden global economic alliances and actively mobilization of international financial resources alternatives.

The diplomatic guide is therefore more than a manual; it is a strategic framework for how Ethiopia intends to sell its economic potential, attract capital, and embed itself within global value chains, as to Ahmed Shide.

The guide also highlights major roles of government institutions, private sector players, and the Diaspora.

In an economic landscape still challenged by structural obstacles and external uncertainties, Ethiopia’s success will depend heavily on how skillfully it navigates this economic diplomacy. The Diplomatic Guide also reflects the ultimate goal of Ethiopia’s foreign policy not as a supporter to economic reform, but as a driving tool, Gedion noted.

The fact that some foreign investors who attended the event stated that the HGER needs the diplomatic promotions.

Chamber of Commerce Industry and Agriculture Belgium-Luxemburg-Africa-Caribbean-Pacific (CBL-ACP) Vice president Dominiek Viaene, who had a short interview with The Ethiopian Herald, expressed that he found the reformed investment policy clear and straightforward attractive for foreign investors, stating that it could attract more FDI into the country if promoted well.

“What the Ethiopian government has done to promote Investments, I think this is a very attractive. First of all, it is clear that the investment policy is structured. It goes step by step. It is quite daring compared to a lot of other African nations. The government is offering opportunities straightforward, and clearing what they want to do,” he commented into the reformed investment policy.

BY YESUF ENDRIS

THE ETHIOPIAN HERALD WEDNESDAY 11 JUNE 2025

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