UNCTAD lauds Ethiopia’s ongoing macroeconomic reform policy as positive move

Addis Ababa, August 17, 2024 (FBC) – Ethiopia’s macroeconomic reform policy is a very positive move in strengthening the whole economic environment and building the confidence of investors, according to the United Nations Conference on Trade and Development (UNCTAD).

UNCTAD Regional Office for Africa Chief Diane Sayinzoga hailed Ethiopia for its transformational change that would address the east African nation’s economic structural issues, ENA reported.

According to her, the macroeconomic reform policy that is under implementation would be vital in creating a better macroeconomic environment, and building the confidence of investors in the country.

Sayinzoga underscored that: “This is a very positive move, and which will bring very positive results in the coming months, in terms of strengthening the macroeconomic environment of the country, and building the confidence of investors.”

Recently, the government of Ethiopia has embarked on full implementation of macroeconomic reform policy.

As part of the reform, the country’s central bank in its announcement on the Foreign Exchange Regime reform, said it will significantly improve Ethiopia’s attractiveness to foreign investors.

Most importantly, the policy has become a big boost to FDI inflows and aligning the business environment with those of the neighbors and peers.

Those reforms actually have the motivations, and encompass key pillars to attract more investors to come in the country and invest in various spheres, chief elaborated.

Moreover, Sayinzoga said the willingness and commitment of the government to promote and to have a very friendly investment environment is also something which is motivating UN agencies including UNCTAD.

She further elaborated that Ethiopia’s ongoing reform, considered as a ground-breaking, is also motivating private investors.

There are investors who are very much interested in coming and understanding and to know what are the existing incentives you have in the country and what are the facilities the Ethiopian Investment Commission (EIC) can provide, she noted.

There are really many motivations to work with the EIC and together to promote investment, according to the chief.

UNCTAD and the government of Ethiopia have been working in collaboration on a range of various areas including promoting investments.

For over 20 years, UNCTAD has also provided technical assistance to Ethiopian Investment Commission and other government entities on investment policy and promotion, the trade facilitation, among other interventions in Ethiopia, she indicated.

Ethiopia now stands out among many emerging markets for having a regulated exchange rate System marked by controls and FX supply shortages.

The previous FX regime which has been seen as a major deterrent by foreign investors is anticipated to deepen FDI interest and activity in Ethiopia.