ADDIS ABABA – The Ethiopian government says the country’s economy has started to rebound.
Briefing the Media at the Prime Minister’s Office yesterday, the country’s finance and investment top brass stated that the country has started many projects by taking out loan from international creditors, which spiked the country’s debt to GDP ratio to 31 percent as the projects were not finished at scheduled time and at the needed quality.
In addition, they said that the economy was stuck low gear as the previous policy had problems, and it has started to rebound as a result to the measures the government took.
Finance State Minister Dr. Eyob Tekalegn on the occasion said that the economy in a bad state and unable to achieve the second Growth and Transformation Plan has put the country in a bad place. It created sky-high national debt.
In the meantime, trade gap ballooned, sectors that were incentivized did not amount to anything, and the planned structural transformation did not materialize.
The economy which was heavily public sector-driven has shifted its approach to where both the public and private sector play their respective role. The government is working to create a conducive environment to support the private sector. And various measures are taken to this end.
The Minister also pointed out that the economy is made to recover after the government undertook a thorough assessment to treat the economy.
It has worked to identify the problems that exist within the economy. Legal reforms are being undertaken. The Ministry is working to adjust the incentive system. By identifying new economic sources, projects that were stopped due to minimal problems are back to work.
The fact that Plan Commission assessment projected a 9.2 percent economic growth is a show that the economy is bouncing back, he noted.
Abebe Abebayehu, Ethiopia Investment Commission Commissioner, for his part stated that about 40 legal and procedural reforms have taken place to help the private sector create job and become the main protagonist in the economy. Citing data from international institutions, the Commissioner said that Ethiopia is one of the top five investment destinations in the region.
We should work even more considering the country’s potential resource. And various works are underway to realize this. Creating job for citizens is the main solution to solving the peace and security issue the country is currently facing. And to do this, the government and the people should work hand in hand. It is the private sector, and not the public sector, that creates job. What is expected from the government is to create conducive environment, he added.
The Ethiopian Herald July 10/2019
BY STAFF REPORTER
