Ethiopia a recent paragon of resilience in the face of multiple shocks: Finance Minister

Addis Ababa, March 20, 2023 (FBC) – Ethiopia is a recent embodiment of resilience in the face of multiple shocks, said Ahmed Shide, Finance Minister of Ethiopia.

Speaking at ECA’s 55th session of Conference of African Ministers of Finance, Planning and Economic Development, Ahmed remarked that his country’s recent experience of improving agricultural productivity to achieve food sovereignty is a prime example of collective wisdom of African stakeholders.

He recalled that the current government of Ethiopia launched the home-grown economy reform in 2018 to ensure a macroeconomic stability to increase ease of doing business and addressing institutional constraint for inclusive and private sectors-led growth.

However, Ahmed admitted that right after the launching, the economic reform has faced unexpected obstacles due to the outbreak of the conflict in the northern part of Ethiopia, the COVID-19 pandemic, the conflict in Ukraine, and climate change induced-shocks such as drought and desert locust invasion in some parts of the country.

“Amidst these internal and external shocks, the government of Ethiopia exerted maximum efforts to take the reform agenda forward and achieved remarkable results, including positive per capita income growth, better debt management, improved FDI flows and export performance, as well as privatization of public enterprises and liberalization of selected sectors which have boosted private sector participation in the economy”, he emphasized.

The Finance Minister also underscored that Ethiopia also improved its domestic resource mobilization capacity through reforms in tax policies, tax administration, tax rates, and application of information technology.

Inspite of these gains, Ahmed disclosed that most of the macroeconomic imbalances such as fiscal deficit, foreign exchange shortage, inflation, and accumulated debt remained stern economic setbacks and challenges.

Therefore, the government continued working on the second home-grown economic reform to consolidate the gains and address current and emerging macroeconomic imbalances and challenges, the Minister indicated.

“Furthermore, as we work together towards peace consolidation, our reform also focuses on paving the way for equitable and inclusive post-conflict recovery that will contribute towards strengthening social cohesion among all Ethiopians”, Ahmed underlined.

“As Africans, it is important to recognize that we share the same destiny. Divided, we remain fragmented but united we rise strong and well integrated. Big achievement emanates from wise use of the available resources and opportunities at hand. The steps we take together both as an individual country and as a continent will guarantee us a better and prosperous future” he pointed out.

He called on all Africans to concentrate on Africa’s untapped potential to transform the continent and eliminate undeserved poverty.

ECA’s 55th session of the Conference of African Ministers of Finance, Planning, and Economic Development is being held in Addis Ababa since March 15 under the theme of “Fostering recovery and transformation in Africa to reduce inequalities and vulnerabilities”.

FBC understands that the Conference will conclude tomorrow.