Since assuming office, Prime Minister Abiy Ahmed (Phd) has come up with various reforms in socio-economic and political spheres in the country. Most of all, Abiy and his administration have pledged to partially or fully privatize public enterprises. The economic reform which is being undertaken is believed to have huge significance to address foreign currency shortages and bring a glimmer of hope for the people’s holistic development.
Because Ethiopian society’s age long questions will be addressed through economic growth. According to Finance Minister, Ahmed Shide, privatization plays a crucial role in reducing rampant poverty and curbing mounting unemployment. For this to happen, the government has been working with experts in formulating laws, policy frameworks and procedures for every public enterprise.
The laws, policies, and procedures would not violate the interest of the country. After the completion of all the necessary legal frameworks, public enterprises such as railway lines, industrial parks, hotels, sugar projects and manufacturing industries, Ethiopian Airlines, Ethio-Telecom, as well as Ethiopian Shipping & Logistics Services Enterprise, would be partially or fully privatized.
These days, Ethiopia is striving to ensure economic growth in a wide range, The Minister said that regarding the privatization of Telecommunication, the Council of Ministers has reviewed and passed a new proclamation which pursuits the establishment of federal authority in charge of regulating the case. The proclamation has been submitted to the HPR for ratification, said Ahmed Shide.
After this, the telecom business evaluation and market structure assessment will be conducted and then the privatization process will be operational in line with the country’s national interest, Ahmed noted. According to the recent nine month reports of the Ministry’s performance, Ethiopia has gained over 4.2 billion USD in the form of grant and loan from bilateral and multilateral organizations.
It is also said that though the country has planned to pay 14.2 billion USD foreign loan and debt in 2018/19, it could be able to pay 8 billion USD within nine months. On the other hand, the performance of export trade has shown a 165.9 million USD decline compared to last year’s same period accomplishment, especially in the main export products.
According to the report, the total monthly inflation rate was 10.9 percent, while the inflation in food and non-food items were 10.7 and 11.2 percent respectively In the fiscal year, the country set to down the inflation rate to a single digit but still not successful in doing so. During the presentation of the nine-month performance report to Parliament last week, Revenue, Budget, and Finance Standing Committee urged the ministry should strive to minimize the inflation rate.
The Standing Committees Chairperson Lemelem Hadigu said that the inflation rate presented in the report is far behind the truth as its adverse impact which is clearly visible. Thus, it should be a priority agenda. Hence, working to decrease the inflation rate should not be left to the ministry alone. Rather, all stakeholders and concerned bodies should act with a sense of duty to stabilize the economy, the Committee insisted.
On the other hand, the Committee recognized the commitment of the Ministry in promoting bilateral and multilateral economic cooperation. Ahmed Shide on his part said this year, his office has set to achieve single-digit inflation but unable to do so far due to the price hike, instabilities in some part of the country and foreign currency shortages.
The Ethiopian Herald May 16/2019
BY MULATU BELACHEW
