Finance Minister highlights positive impact of macroeconomic reforms on Ethiopia’s economy

Addis Ababa, September 22, 2017 (FBC) – Minister of Finance Ahmed Shede announced that the full implementation of macroeconomic reforms has led to improved economic performance over the past two months.

During a meeting held to review the performance of the macroeconomic reform over the past two months in attendance of Prime Minister Abiy Ahmed (PhD), Minister Ahmed Shide provided a detailed evaluation of the reforms’ impact, noting that they have fostered economic stability, and have been implemented in way that helped alleviate social burden on citizens.

A recent assessment by a team of experts from the International Monetary Fund confirmed the successful implementation of these reforms, the Minister reported. He emphasized that enhancing government revenue is a primary goal of the reforms. He noted that ministerial taskforce to oversee the progress has been established and gone operational.

Ahmed highlighted that government income has shown improvement compared to the same period last year, and efforts are underway to further boost tax collection. He also underscored the importance of reforming income sources without burdening low-income citizens.

Additionally, he mentioned that the government has implemented oil subsidies and will maintain fertilizer subsidies while allocating an extra 60 billion birr for implementation of social safety net program benefiting urban and rural communities.

In terms of debt management, the Minister noted advancements in debt restructuring efforts, with the Ministry of Finance providing bonds worth 900 billion birr to Commercial Bank of Ethiopia to settle existing debts owed to development organizations and to stimulate capital growth. Unpaid loans have been converted into long-term bonds via treasury bills, he indicated.

Regarding foreign loans, he revealed that Ethiopia will soon receive debt relief, following guarantees provided by the Group of 20 creditor committee. The Minister added that the dialogue between the development and partners has continued.