A World Bank economist on Tuesday, July 22, 2014 noted Ethiopia must devaluate its currency in order to boost export because the nation’s export commodities are mostly unprocessed products and they need to stay competitive on price.
The World Bank (WB) disclosed there is a need to strengthen competitiveness in the Ethiopian economy by diversifying and introducing value added export commodities. According to WB, such shall be done in order to tackle the recent problems such as drop in price the export sector is facing.
The World Bank has granted 11 million birr to facilitate an investigation into the national revenue potential of Ethiopia. The study was commissioned by the Ethiopian Revenues and Customs Authority (ERCA).
The study will assess the revenue productivity of each tax, identify gaps in the law and how to address them as well as widening the tax base on the national level. It will be part of the tax reform instituted by the government to generate mechanisms of increasing the tax-GDP ratio.
Ethiopia’s investments in health, education, social protection, and infrastructure have had a positive impact on economic development and promoting shared prosperity in the country, says 2015 Ethiopia Public Expenditure Review, a new World Bank Group report released today.
The World Bank has approved a 1.15 billion US dollar loan to fund a range of development activities in Ethiopia according to a
statement issued by the bank.
The bank also approved a new Country Partnership Strategy for Ethiopia at the same time. The new strategy is intended to build upon the development of the country to encourage more growth, employment, health and education.
The ban released the interest free credit totaling 1.15 billion US dollars on the basis of the new strategy explained the statement.
