Ethiopia holds Global Investors Call to present update on ongoing economic reforms

Addis Ababa, Ethiopia, October 2, 2024 (FBC) – The government of Ethiopia held a Global Investors Call with its eurobond holders on October 1st, 2024, the country’s Ministry of Finance (MoF) confirmed in a statement issued this afternoon.

The Ministry mentioned that Ethiopia successfully hosted a Global Investors Call, bringing together key stakeholders and investors to discuss Ethiopia’s macro-economic status, reform agenda, as well as future path. The virtual meeting, led by Eyob Tekalign, Minister of State for Finance, provided a comprehensive update on the nation’s economic outlook and its strategies for debt restructuring and long-term sustainability.

During the call, State Minister Eyob highlighted Ethiopia’s significant progress in implementing bold macroeconomic and sectoral reforms, all part of its Homegrown Economic Reform (HGER) agenda. The reform agenda, built upon four key pillars—macroeco-nomic stability, enhancing the investment and trade environment, increasing sec-toral productivity, and reforming civil service capacity—aims to propel Ethiopia on a path toward sustainable and inclusive growth realizing its vision of becoming an “African Beacon of Prosperity” by 2030.

According to the Ministry, the call provided critical insights into Ethiopia’s current debt restructuring efforts under the G20 Common Framework. Ethiopia outlined its approach to ensuring long-term debt sustainability, including the transition to a market-determined exchange rate and the implementation of stricter fiscal policies aimed at reducing inflation and rebuilding foreign exchange reserves.

Ethiopia’s ongoing efforts to address its external debt challenges were a central theme of the discussion. The government reiterated its commitment to negotiating with both official and commercial creditors to restore debt sustainability and resolve liquidity and solvency issues.

To ensure equitable treatment of all creditors, Ethiopia has been actively engaging with its bilateral and commercial creditors, including its bondholders. While progress has been made with official creditors, discussions with bondholders remain ongoing.

The government called for continued cooperation and transparency in the negotiations, urging bondholders to engage in constructive discussions aimed at finding a restructuring solution compatible with the requirements of Ethiopia’s IMF program and respectful of the principle of comparability of treatment under the G20 Common framework.

Ethiopia’s resilience in the face of global and domestic shocks, including the COVID-19 pandemic, global monetary tightening, and regional instability, was also emphasized. Despite these challenges, the country has maintained its dedication to reform and growth, demonstrating a strong commitment to meeting its financial obligations.

“Despite turbulences, whether external or domestic, Ethiopia has consistently demonstrated resilience and strength. We take great pride in meeting our financial obligations, even during challenging times,” Mr. Eyob said.

In conclusion, it was emphasized that Ethiopia is making concerted efforts to swiftly address the debt issue and restore debt sustainability in accordance with the IMF’s debt sustainability framework.

The State Minister further reaffirmed Ethiopia’s commitment to ensuring all creditors are treated equitably and to adhering to the principle of Comparability of Treatment.