. Urges for tangible actions
Prime Minister Dr. Abiy Ahmed stressed the critical need for ensuring quality growth for it relieves the country from debt burden and natural resource dependence thereby to achieving all-round and sustainable development. A one-month progress report of the National Steering Committee established to evaluate the national initiative of doing business in Ethiopia discussed here yesterday.
On the event, the Premier indicated that the business climate so far had been paradoxical. “Government’s plan is to increase domestic revenue; but the practice shows that new businesses have not proliferated owing to strait jacket.” People who have business plans usually find it hard to translate their plans to practice due to restrictive legal environment, backward service delivery and bureaucratic hassling, he said, adding that the objective of the national initiative is to devise innovative mechanisms that enable both domestic and foreign investors easily get into businesses and ensure profitability.
He also indicated as the initiative is part and parcel of mitigating fiscal policy gap focusing on revenue, expenditure and budget deficit. Explaining these, he said the government has prioritized to broaden the tax base in addition to automating the service provision while shifting interest to concessional loan and abolishing straitjacket.
“Our plan is to keep the national budget deficit to the minimum by broadening the revenue base and cutting government expenditure.” To him, by increasing private participation, it is possible to award citizens with a new lease of life. Minor problems emanating from inefficient system and bureaucracy should not set barricade along their journey, he said.
Private investors that could inject a capital as big as seven billion USD to the business have shown interest to engage in road and energy production sectors, he revealed. “Easing the business and trade climate can attract more anchor investors to the country that can involve in agro-processing, manufacturing, mining and other areas.”
Presenting the report, Ethiopian Investment Commissioner Abebe Abebayehu noted that around 80 actions have already been identified which ought to see improvements in the short term. So far, the committee made a one to one meeting with eight government agencies to look into the practical steps taken. He also revealed that 10 indicators have already been set up.
The report included tasks accomplished by Ministry of Trade and Industry, Ethiopian Electric Corporation, Ministry of Revenue, Addis Ababa City Administration, Supreme Court and National Bank of Ethiopia. He said, the activities accomplished so far are revising proclamations, guidelines and directives that could green light easing of doing business.
“After appraisal by the Federal Attorney General, the laws would be referred to Council of Ministers for further scrutiny and will eventually see the light of day by the House of People’s Representatives.” Other tasks like automating and coordinating government agencies, to ensure ease of doing business, have already been accomplished or will see completion shortly, according to him.
The aspiration is that to improve the policy and legal regime that ease doing business in Ethiopia while making the country hub of investment as well as international arbitration. The Premier also put direction for the National Steering Committee to foster supervisions and accomplish the tasks shortly.
The Ethiopian Herald, February 27/2019
BY WORKU BELACHEW
