After introducing a series of regulatory reforms to attract investments and ease business climate, Ethiopian Prime Minister Abiy Ahmed is determined to usher in more reforms to push Ethiopia into high –speed economic growth. The government of Ethiopia has unveiled a “Home-grown Economic Reform” agenda at the United Nations Conference Centre in Addis Ababa aimed at unlocking the country’s development potential. “our initiative aims to propel Ethiopia into becoming the African icon of prosperity by 2030,” remarked Prime Minister Abiy Ahmed. He added that the role of the private sector was crucial for Ethiopia’s growth and development. Consequently, key economic activities have been opened to private investments.
The Reform Agenda includes macroeconomic, structural and sectoral reforms to generate jobs, reduce poverty, and pave way for inclusive growth. For a successful implementation of reforms, the country will adopt fiscal discipline, strengthen public sector finances, cut down debts and increase domestic resource mobilization. The Agenda prioritizes sectors such as agriculture, manufacturing, mining, tourism, and ICT.
Responding on the Reform Agenda, the Executive Secretary of the United Nations Economic Commission for Africa (ECA) said Ethiopia’s ambition to grow from 865 to 2219 GDP per capita was “very ambitious”. However, there are examples of China, Laos, and Vietnam which have proved to be successful. Political observers point out that in order to achieve the ambitious plan, Ethiopia has to avoid accumulating debts. Ethiopia currently has a USD 10 billion gap – 6 billion in new investment and 4 billion of debt reduction per year.
