Paris Summit vows to Increase Financing for Developing Countries: Finance Minister

Addis Ababa, June 25, 2023 (FBC) – Agreement has been reached to increase the development financing to developing countries, including Ethiopia, at the Summit for a New Global Financing Pact in Paris, Finance Minister Ahmed Shide said.

Prime Minister Abiy Ahmed participated at the Summit for a New Global Financing Pact in Paris, France.

The premier has reached an agreement on the sidelines of the summit with leaders of countries and international financial institutions on debt adjustment and getting new macroeconomic development financial support.

According to Ethiopian News Agency (ENA), the minister elaborated that it was agreed at the summit to significantly increase the provision of development finance to developing countries, including Africans.

International financial organizations, including the World Bank and the International Monetary Fund, have been directed to invest heavily in development programs to reduce poverty in low-income countries and carry out reforms focused on this, the finance minister stated.

Moreover, Ahmed pointed out that a decision was made to enter into the practical phase of the agreements reached in the past on climate change.

On other hand, he recalled that many developing countries are under pressure due to the COVID-19 pandemic, the war between Ukraine and Russia and international economic fluctuations.

Accordingly, a consensus has been reached to reduce the debt burden and make debt adjustment of countries, and Ethiopia will benefit greatly from the debt burden reduction and debt adjustment decision.

Ahmed revealed that Prime Minister Abiy also presented the success of the national reform and Green Legacy initiative at the summit and was appreciated.

If the initiative is given international financial support, Ethiopia is determined to strengthen its efforts to expand it in the region and Africa, he said.

In the field of agriculture, apart from stopping importation of wheat, Ethiopia has started exporting to neighboring countries and international organizations.

Furthermore, it was learned that the premier had discussion with leaders of various countries and international institutions and reached bilateral and multilateral agreements on development finance support.

In his discussion with the French leader Emmanuel Macron, the president assured the prime minister that France will help Ethiopia to get financial support.

Prime Minister Abiy had also a successful discussion with the new World Bank President Ajay Bangan and International Monetary Fund (IMF) Managing Director Kristalina Georgieva.

Noting that the new president of the World Bank has announced that he will visit Ethiopia soon, the finance minister said the World Bank has reached a consensus that it will continue its financial support to Ethiopia’s second phase Homegrown Economic Reform and large-scale development programs.

The Managing Director of the IMF confirmed that the IMF recognizes Ethiopia has a large population and is carrying out effective development; and that it is interested in debt relief and macro-economic support.

According to Ahmed, Ethiopia’s leadership role in global climate, agricultural production, and regional peace and security issues was given a high place in the summit.

The Governor of National Bank of Ethiopia, Mamo Mehretu said on his part that the summit has created opportunity to strengthen Ethiopia’s relations with international financial institutions.

It was a summit where Ethiopia actively participated in issues related to its national interest in terms of international finance, including gathering additional financial resources, based on demand, he added.

Climate change prevention, reform of financial institutions and debt reduction of developing countries were the main agenda of the Paris financial summit.