Dev’t partners crucial to advancing Ethiopia’s long-term economic transformation agenda – Senior Officials

Addis Ababa, November 20, 2024 (FBC) – A dialogue aimed at highlighting the vital role of development partners in advancing Ethiopia’s long-term economic transformation agenda was held in Addis Ababa today.

Following yesterday’s dialogue on Economic Transformation organized by the Ministry of Planning and Development, today’s session convened a distinguished audience, including ambassadors, heads of agencies, representatives from multilateral and bilateral institutions, members of the diplomatic corps, civil society representatives, and other invited partners.

Planning and Development Minister Fitsum Assefa briefed representatives of development partners about the early results of the comprehensive macroeconomic reform and its implication for Ethiopia’s long-term economic transformation.

She traced Ethiopia’s trajectory of growth and transformation, reflecting on 60 years of development policies, the hurdlesand opportunities encountered amid political reforms, and the vision for economic transformation over the next 25 years.

Fitsum highlighted significant achievements in agriculture, industry, tourism, infrastructure, water, and energy, underscoring an average economic growth rate of 7.3 percent over the past six years and an impressive 8.1 percent growth in the fiscal year 2023/24.

According to the minister, the government of Ethiopia currently has a plan to achieve long-term economic transformation through multi sectoral approach by facilitating continuous technological upgrading focusing on skills development, adequate clean energy, efficient public investment management, modernization of agriculture, harnessing mining sector potential, leveraging digital economy, infrastructure prioritization, harnessing tourism potential, pragmatic economic diplomacy, and transition into green economy.

In this respect, she urged development partners to actively collaborate with the government and support efforts to realize a long-term economic transformation of the country making it a beacon of prosperity for Africa and the world in 2030 and 2050, respectively.

Fitsum emphasized that development partners can support Ethiopia’s development aspiration and long term economic transformation in de-risking private sector investments, re-framing climate finance, rationalize social sector supports, new modalities for funding technological capabilities, capacity building, and strengthening supports in identifying FDI aligned with the economic transformations, among others.

Finance Minister, Ahmed Shide on his part reiterated that Ethiopia’s long-term economic transformation demands deepening and sustaining the comprehensive macroeconomic reform of the country, as called by local newswire service ENA.

Ahmed emphasized Ethiopia’s ambitious long-term development initiatives, particularly the goal of achieving middle-income status by 2025.

Ahmed emphasized government’s commitment for sustainable peace, inclusive development and creating enabling environment for private sectors for economic transformation based on sustainable financing modality.

Moreover, he said the government of Ethiopia will continue its partnership with development partners, highlighting the crucial of collective action to deepen and sustain macro-economic reform as well as to ensure inclusive and long-term economic development and aspiration of the country.

Governor of National Bank of Ethiopia, Mamo Mihretu on his part reiterated the government of Ethiopia is taking a number of steps and measures to ensure macroeconomic stability.

He pointed out that the recently implemented comprehensive macro-economic reform, for example, has addressed bottlenecks related to access to foreign currency for investors and they are getting special privilege to invest in Ethiopia.

However, the government of Ethiopia need development partners to scale up their continued support and collaboration in the national efforts to bring long term economic transformation of the Ethiopia since its development interest is also partners’ interest, he underscored.

The discussions reaffirmed the vital role of development partners in advancing Ethiopia’s long-term economic transformation agenda.

The event is ongoing, with further exchanges of ideas and insights expected to shape the path forward.