The macroeconomic reform the government implemented has helped increase foreign currency flow into Ethiopia, an advisor to the Prime Minister said.
Mamo Mihretu, Economic Policy Advisor to Prime Minister Abiy Ahmed, speaking to ENA, said the measures the government took under the Prime Minister's leadership have helped in significantly increase the inflow of foreign currency. Mr. Mamo noted foreign currency inflow in the past nine months alone neared $19 billion, a figure showing a dramatic increase compared to the same period of last year.
Funds from various financial organizations, including the World Bank, will help Ethiopia adjust its macroeconomic imbalance, he added.
“We have done significant work in terms of mobilizing external finance and resources from our development partners and from other countries. The World Bank, for instance, financed the government to win 1.7 billion USD through budgetary support” the advisor pointed out.
Mr. Mamo credited much of what he called "effectively engaging a sustainable economic growth" to the reform measures of the government.
Ethiopia's double-digit growth for the past 15 years was to the large part due to public investment in infrastructural projects, which incidentally were stifled by foreign currency shortage and debt accumulation, the advisor explained. This, he said, in turn, led to debt distress and external debt vulnerability: “If you look at the current rating of Ethiopia’s debt status, which is rated as high, [it] implies that the country will not able to access external commercial loans.” Hence, he said, currently the government is focused on completing existing public projects rather than starting new ones.
The Economic Policy Advisor stated Ethiopia is embarking on an investment reform program, initiated by the prime minister, hoping to alleviate the private sector's involvement in the economy. This, he expressed belief, is expected to generate a significant amount of hard currency. “The purpose of the initiative is to address policy and regulatory administrative barriers that inhibit the growth in the performance of the private sector, and all those measures are bringing positive results,” Mr. Mamo said.
Source: ENA
