Fana: At a Speed of Life!

Private sector-led diversification, growth workshop kicks off

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Addis Ababa, July 17, 2019 (FBC) – A joint Ethio-IMF workshop that aims to propose guiding principles in the design of comprehensive strategy for sustained growth and diversification kicked off here today.

The forum organized at the request of Ethiopia will share experiences and distill lessons of history and adapt these to country specific circumstances and strategies.

In his opening remark, Ethiopian Investment Commissioner Abebe Abebayehu appreciated the IMF and partnering countries for spearheading the G20 Compact with Africa initiative as it provides much needed framework to boost private sector investment.

Investment is one of the primary engines of growth and economic diversification in all economies, he said, adding “its effectiveness, however, rests on strong complementarities with other important elements and processes, most notably technological progress.”

The commissioner stated that skill formation and development of dynamic and competitive private sector are other elements.

“These elements make investment a natural point of departure for governments seeking to formulate sustainable growth and diversification strategy,” Abebe Abebayehu noted.

IMF African Department Director, Abebe Aemroselassie said on his part any initiative that has the potential to boost the productive capacity of industry and much-needed employment in Africa is welcome.

He added that the investment on private sector is very important at this juncture with the observance of fiscal space in African countries, particularly in Sub-Saharan over the last couple of years.

Over the last two decades, many African countries have sustained relatively strong economic growth, Abebe Aemroselassie pointed out, adding that “ economic diversification and structural transformation have, however, been limited.”

Economic diversification and structural transformation are kindles of development, he stressed.

The two-day workshop will discuss various topics, including the role of the state in creating dynamic export sector, global manufacturing and supply chains, strategies to attract private investment, role of government in fostering export-oriented industries, according to ENA.