Addis Ababa, December 30, 2024 (FMC) – Ethiopia’s comprehensive macroeconomic reforms have brought about fundamental changes in the economy, registering tangible results, Mamo Mihretu, Governor of the National Bank of Ethiopia (NBE) and central committee member of Prosperity Party said.
The governor, explaining the outcomes of the economic reforms in Ethiopia over the past five years, recalled that launching the macroeconomic reform was historic and bold, resulting in numerous tangible achievements.
For example, Mamo pointed out the monetary policy reform was put in place in a manner which can control inflation and the policy has continued to bear successful results.
Prior to the monetary policy reform, Mamo noted that the country had faced lack of production, productivity and growing inflation, however, following the reform, inflation has decreased from 30 to 16 percent.
Moreover, the reform made in foreign exchange governance brought fundamental change in the economy, he said, adding that efforts to curb inflation and improve the cost of living will further be intensified.
The reform has fundamentally alleviated the foreign currency shortages that used to challenge Ethiopia for so long, he said, adding by now, the foreign currency reserve surpassed 200 percent.
The growing foreign currency earnings plays a significant role in creating a conducive environment for trade and investment, ensure the sustainablity of Ethiopia’s economic growth thereby boosting production and productivity, the governor elaborated.
Additionally, various reforms have been made to maintain Ethiopia’s robust financial sector, which has been growing from year to year, he stated.
He noted that the financial sector registers growth by over 25 percent every year in terms of savings and loan provisions, as reported by local newswire service ENA.
Similarly, revenue from tax collection has been growing and on the other hand, the government’s foreign debts have also been alleviated, he pointed out.
As the macroeconomic reform measures are coordinated to stabilize and sustain Ethiopia’s economy, the measures are boosting the export sector, the governor added.