ADDIS ABABA – Policy reforms and import substitution would play a crucial role to curb hyperinflation and debit distress, experts in the area said, emphasizing the role of peace to this end.
Approached by the Ethiopian Press Agency (EPA), Senior Economist and African Chamber of Commerce President Kibur Gena said that the government should revise and frame viable financial systems that help to curb the present economic challenges.
Quoting the global debt burden experience, the economist explained that Ethiopia is currently experiencing some economic challenges in terms of inflation and shortages of foreign currency.
Kibur, therefore, advised the government to prioritize mechanized agriculture systems that help substitute imported items and promote overseas jobs that generate remittance. “Beyond enhancing productivity and export capacity, remittance needs to be given the utmost priority in order to improve the inflow of foreign currency.”
“Financial devaluation and the ever increasing amount of interest fee are also the main contributing factors for the aggravating debt burden.”
Access to credit is synonymous with a sword, if appropriately utilized it boosts the nation’s holistic economic development unless it pulls down the overall economy that results in absolute poverty and debt distress, he phasized.
Indeed, the country needs to establish a well-managed and guided import substitution strategy to address forex shortage and ease the current spike in the price of goods and services that leads to inflation and the existing national debt burden, Kibur pointed out.
Political-Economy Analyst She waferahu Shitaw on his part stated that it is highly important to put financial policy
restructuring and gearing up capital intensive agricultural systems that are firmly believed to halt forex and debt crunches. The country also needs to have land and manpower as contributing factors to curb inflation and bring about a vibrant economic development.
Citing Ethiopia’s development experience, the economist recommended the country to engage in industrial park development, infrastructure and educating manpower.
Moreover, it is critical to consolidate efforts to link the farming community with manufacturers and investors to produce more yields and irrigation projects should be enhanced as the country’s economy is mainly based on a rain-fed agricultural system.
Apart from policy and other paradigm shifts, the experts recommended the government to give due emphasis to peace and security, hold dialogues and other fueling factors to attract FDI and bring remarkable development.
BY ASHENAFI ANIMUT
THE ETHIOPIAN HERALD TUESDAY 13 FEBRUARY 2024
