ENA January 18/2019 The Homegrown Economic Strategy, which was initiated by the Government of Ethiopia, is crucial to unlock domestic assets and sustain economic growth, according to an economist.
Ethiopia has developed an ambitious Homegrown Economic Reform Plan tailored to the country’s needs and preferences. Besides helping the country to address its foreign currency shortage, the program is aimed at reducing the debt burden.
In an exclusive interview with ENA, Economic Analyst Gutu Tesso said the country has been experiencing double-digit economic growth during the past 10-15 years. But that experience has been stuck at some stage due to lack of originality. It was simply copied from other countries.
The growth experiences of various countries like China and Korea have their own geopolitical, economic and social bases and contexts, the analyst noted.
Therefore, “Ethiopia badly needed a homegrown economic strategy that emanated from the country`s ample domestic assets. It is very critical to realize the country’s long-term ambitions,” the expert pointed out.
Stressing the significance of discussions held among all stakeholders about the strategy, he said it is time for the government to release the strategy to universities, research institutions, expertise centers, and others so as to receive productive inputs.
Gutu stated that there are many Ethiopian experts in various fields who could contribute massively to the country’s inclusive development. “There are experts who have crucial studies and researches in their hands,” the analyst insisted.
Ministry of Finance Public Relations Director, Haji Ibsaa said on his part the government decided to take the best experiences of the past and changed them into effective plans in line with the ongoing inclusive reform.
According to him, the government opted to implementa homegrown economic strategy as a transition tool to prosperity.
Objectives of the initiative include reforming the financial sector and boosting revenues, which will be supported by the provision of technical assistance and training.
“One of the most critical targets to be achieved during the implementation period of the new strategy will be domestic resources mobilization. Reviving the economic growth that has been declining recently is also among the main targets,” Haji elaborated.
The newly introduced homegrown economic strategy also aims to resume some projects which have been stalled due to economic setbacks, it was learned.
The strategy is backed by the international organizations such as World Bank and IMF. And IMF has recently approved close to 3 billion USD for the implementation of the strategy. The strategy aimed at supporting the government’s own Homegrown Economic Strategy designed to eliminate macroeconomic imbalance and lay foundation for sustainable and inclusive growth.
Ethiopia will also receive 3 billion USD from the World Bank to help strengthen the economic reform. The stated amount of fund would be provided in forms of assistance and loan, according to the ministry.
The financial support pledged by the World Bank and IMF is said to cover about 60 percent of the total finance needed by the country’s three-year economic reform aspiration.