As it is important to understand the latest developments from a global and local perspective, the future of financial services is being shaped by innovations and dynamic regulations.
For this to happen, the finance sectors in Africa in availing the required financial resources to support the initiation and accomplishments of homegrown economic reform agenda cannot be overstated.
The financial sector is one of the remarkably developed sectors of the economy in Africa in the past few decades and with also huge potential for growth and advancement in the time to come. However, such improvement should fit with the development requirement of its people and the pace with which it has to achieve a reduction of poverty and socio-economic prosperity.
Recently, the 4th Annual East Africa Finance Summit held in Addis for two days under a theme:”Financing Homegrown Economic Transformation and Examining Policies and Practices.”
Including financial experts from Ethiopia, Kenya, South Africa, Morocco, Gambia, other African countries and more than 400 people drawn from financial institutions, insurance companies, high level government offices, and intellectuals have attended the conference.
Various scientific papers are presented at the summit by scholars from higher education institutions and financial sector representatives from Ethiopia, other African countries and beyond. Moreover, panel discussions were also held on selected thematic fields where very crucial policy issues were raised and directions were set for policymakers.
Gemechu Waketolla (PhD), Founder and CEO of the I-Capital Africa Institute, said that discussing and deliberating on a range of issues pertinent to the improvement of financial services in Ethiopia and the region is timely issue. The summit is not only organized for the sake of academic discussions and a circulation of ideas but it is to forward concrete and practical inputs to policymakers regarding financial reform in Ethiopia and the region.
Approached by The Ethiopian Herald, Gemechu said that such a platform is imperative to learn, share knowledge and expertise, as well as it is the right time to hear critical voices that accelerating financial reform.
EyobTakelign(PhD), State Minister of Finance, addressed that the Finance sector in Ethiopia appeared to be one of the prioritized issue where the private actors play their own role over the last few decades.
Much has to be done to upline with international standards. The government and other stakeholders are at a critical juncture to reform the economies, he said.
According to him, the reform measures to be undertaken in the financial sector in the coming three years will be the backbone of the economic reform agenda and will be critical to meet the country’s aspirations. Addressing the capacity and regulatory deficiencies of the sector will be the prioritized tasks.
The government will focus on the strengthening the regulatory environment and putting in place a domestic system which compete in the global market, adding that the industry actors must also gear up building the required human capital and technology to effectively meet the target.
He also said that Home-grown Economy Reform agenda serves as a blueprint for the immediate reform measures the country must address the headwinds the economy is facing as well as seize new growth opportunities. The agenda interlinked challenges at the macro, sectoral and structural levels.
The major microeconomic imbalances are inflation, debt stress, and forex shortage. This imbalance forces the government to shift its face on financial sector reform. The government is to launch a financial education strategy with in a month targeting to increase finance access by the adult population to 60 percent. Furthermore, the government and financial industry must be ready to finance innovations, ideas, technologies and enable E-commerce, he underlined.
Ermyas Admasu, Director for International Relations and Alumni Affairs at Jima University said that financial sector development is inseparably intertwined with the overall economic development of nations which indicates that building a well advanced financial system could be an important step forward to ensure sustained development.
He stressed that the finance sector has to build its capacity in providing the financial resources needed to support the initiation and realization of the economic reform agenda. Local financial institutions can play a vital role in the mobilization of saving, and providing finance, when and if, needed by governments for funding locally initiated transformation agenda.
As to him, the governments need to work closely with such institutions by extending support and easing regulatory frameworks for their well-functioning. Developing partnerships and collaborative frameworks to create conducive policy would ensure the efficiency and effectiveness of local financial institutions and their ability to support homegrown transformation agenda.
Moreover, during the secession very crucial policy issues were raised, and directions were set for policymakers.
The Ethiopian Herald December12, 2019
BY MULATU BELACHEW
