Ethiopia’s macroeconomic reform ushers in competitive investment opportunity: Indian Investor

Addis Ababa, August 7, 2024 (FBC) – The Macroeconomic reform policy which Ethiopia has embarked on has created great opportunity for competitive investment in the country, Indian investor Mayur Kothari said.

The Chairperson of Indian Mohan Group PLC in Ethiopia, Mayur Kothari said that the full implementation of macroeconomic reform policy of Ethiopia has created competitive investment opportunity in the country.

Noting that his company was eagerly waiting for the macroeconomic reform, the chairperson stated the reform is crucial for manufacturing sector.

The reform policy is vital to manage the economy,  increase export trade, attract investment, and boost foreign currency earnings, the investor elaborated.

Moreover, the macroeconomic reform will reduce the foreign exchange rates gap between the black market and banks, he said, adding this measure will alleviate the shortage of the foreign currency facing the manufacturing sector.

Kothari cited the lack of foreign currency as an obstacle for launching new projects for his company and he stated that the reform policy will be instrumental to bridge the previous gap.

It will also boost export trade, increase farmers revenue worth of their labor and achieve equitable economic benefits, he said.

The reform would also lure new investment flows, job opportunities, technology transfer, making significant contributions to foster fast economic growth, he stated.

The policy also offers key investment incentives as the country’s market potential is huge, he noted.

Over the next four years, the full-scale implementation of macroeconomic policy is expected to register economic growth of 8 per cent on average and raise the foreign direct investment (FDI) to 8 billion US dollar.

The implementation of the policy will also reduce inflation rate to 10 percent,  increase the share of tax revenue to 11 percent of the GDP,  reduce the share of government debt to 35 percent of GDP as well as raise export and import trade to 20 billion dollars and increase national reserve deposit to more than 10 billion US dollars, as reported by ENA.