Ethiopia’s economy estimated to grow by 7.5 percent – Minister

Addis Ababa, June 27, 2023 (FBC) – The Minister of Planning and Development of Fitsum Aseffa indicated that Ethiopia’s economy is expected to grow by 7.5 percent in the current Ethiopian fiscal year.

It is learned that the Minister held a discussion with the members of the U.S Chamber of Commerce.

During their discussion, the minister revealed that 3.31 billion USD was earned from foreign direct investment in 2023.

She also mentioned that Ethiopia is the largest recipient of foreign direct investment in East Africa.

The Minister made a presentation on the experiences and results of Homegrown Economic Reform Phase I and the preparation and content of Phase II as well as the general economic activities of the country.

Fitsum also explained that the impact of Covid-19, conflicts in northern Ethiopia, the Ukraine-Russia war, disasters caused by climate, floods, drought and desert locusts are challenges that have challenged the economy and the entire country.

She underscored that despite these challenges, Ethiopia’s economy continues to achieve encouraging annual growth.

The Minister said that to get rid of the shackles of the country’s economy, implementing the homegrown economic reforms was one of the effective actions.

11 policies and laws have been amended and revised, including the Commercial Law, Commercial Registration and Commercial Licensing, Proclamation of Security of Movable Property, and VAT Reform, she reminded.

Concrete reforms have been brought about by the reform in various sectors, especially in business convenience, tax system, energy supply and mining, tourism, ICT, agriculture and manufacturing as well as other fields, the Minister added.

Highlighting the content and preparation of the second Homegrown Economic Reform, Fitsum underlined that the economic reform has four main pillars that will help to develop the country’s economy.

She pointed out that creating macroeconomic stability, creating a favorable business and investment environment, increasing the productivity of key sectors, and building a capable and efficient civil service are given great emphasis in the reform.