ADDIS ABABA – Government should assist the priavte sector in alleviating hindrance to contribute more in economic growth, the private sector urged.
During a panel discussion organized by Addis Ababa Chamber Of Commerce and Sectorial Association (AACCSA) Friday, members of the private sector have mainly pinpointed political unrest in parts of the country as the major factor hindering the economic growth.
Ethiopia is registering remarkable economic achievement. Recent political unrest in different parts of the country is challenging the economic activity in the country. Political instability risks eroding the hard-won economic gains registered over the past decade, they indicated.
AACCSA President Mesenbet Shenkute said on her part Ethiopia has been registering remarkable economic achievement for the past years. At the same time there are lots of challenges which need solution. Among the problems shortage of foreign currency, inflation, trade imbalance and others are there.
Million Kibret, Economist and Managing Partner of BDO Ethiopia said that in 2018/19 fiscal year Ethiopia’s economy grew by 9 percent which is big. Compared to the potential of the country the recorded growth is not sufficient. There are lots of problems which hinder economic development.
Among the problems are land related issues, illegal trade, low export performance which leads to forex shortage and inflation. Ethiopia has enough forex but majority of it is smuggled out of the country. Talking these issues into consideration is essential. Many investors have been complaining about foreign currency constraints, access to finance, tax administration related problems and issue related to land. With this challenge many investment projects had been lagging behind.
He stressed that government alone could not realize expansion of necessary facilities, social service delivery and economic development. The active involvement of private sector is therefore highly crucial. Especially, the private sector plays a paramount role in speeding up the government’s move especially in economic aspect he indicated.
Above all currently the burning issue in Ethiopia is the issue of peace and stability to boost investment in the country. Investors whether it is domestic or foreign need a stabilized political situation to invest. Regarding this, Ethiopia has been taken as the symbol of peace and stability in the highly volatile East African region. However, in recent years, political unrest had broken out especially in many parts of the country. These kinds of problems hinder the economic aspect of the country.
The Ethiopian Herald Jan 25, 2020
BY HAILE DEMEKE
