Gov’t, partners breathing life into economy

True to most, if not all, all transitional countries, the challenges facing Ethiopia are many. Economic inequality, unemployment and poverty which were a pushing factor for the youth that ultimately precipitated the reformist government ascension to power, have not been resolved yet. Worse than that, as some studies indicate, the country must add two-million jobs per year to keep pace with population growth.

Owing to the nature of the critical problem, the reformist government has introduced a series of reform measures relatable to the Ethiopian socio-economic factors. The objectives of such measures are to generate exports and to create jobs, to attract investors and make public enterprises efficient, etc.

The government has also unveiled its Homegrown Economic Reform last September. The reform agenda has aimed at unlocking the country’s development potential. As Prime Minister Abiy Ahmed said, announcing the reform agenda in an event organized at the United Nations Conference Centre in Addis Ababa on September 9, the “initiative aims to propel Ethiopia into becoming the African icon of prosperity by 2030.”

The agenda outlines macroeconomic, structural and sectoral reforms that will pave the way for job creation, poverty reduction, and inclusive growth with priorities given to sectors such as agriculture, manufacturing, mining, tourism, and ICT.

Apart from that, several other measures taken by the government, in just over one year time, has shown the extent to which the government is committed to address the socio-economic hurdles that has passed down from past administration. Among these are reforms made in investment laws and business climate, which have helped remove regulatory obstacles that hamper investment.

The government has also opened up key economic sectors to private participation. In the event that was attended by representatives from the World Bank, IMF, UN Agencies and other development partners, announcing the Homegrown Economic Reform, Prime Minister Abiy Ahmed urged all stakeholders to support his government in crafting Ethiopia’s economic miracle.

Responding to the call, development partners such as the World Bank approved the home-grown economic reform as doable and important to enable the country to have stable and strong economy. They are also pledging and providing supports for the realization of the home-grown economic reform.

Similarly, in bilateral relations, various countries have also continued to encourage and support Ethiopia’s efforts. Among these are, Germany, which last Monday has announced a 352.5 million Euro financial assistance to support the on-going political and home-grown economic reforms.

The Kingdom of Saudi Arabia is another country, which has pledged support to the reform in the most recent time. An Ethiopian delegation led by Ahmed Shide, Minister of Finance, during his visit to the Kingdom of Saudi Arabia on December, 3rd and 4th, 2019 discussed with Saudi Finance Minister and officials of Saudi Fund for Development on bilateral and regional issues.

Ahmed Shide, who delivered a message from Prime Minister Abiy to the Saudi Crown Prince Mohammad bin Salman, told local media that the Kingdom is ready to provide support the ongoing homegrown economic reform agenda.The kind of supports must be appreciated. Supports such as expanding the private sector, boosting the export sector, creating more jobs are highly invaluable for the miracle Ethiopia has envisioned.

The Ethiopian Herald, December 6/2019

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