State Minister Updates Swedish Companies on Recent, Future Economic Reforms in Ethiopia

April 7/2021(ENA) A webinar that provides updates on measures being taken to transform Ethiopia's economy and what to expect from future reforms was held with Swedish companies today, according to Ministry of Finance.

Finance State Minister Eyob Tekalign  and Sweden's Ambassador to Ethiopia Hans  Henric Lundquist  and the African Union as well as Swedish companies, some of whom are already present and active in Ethiopia and other parts of Africa, took part in the virtual webinar.

In his opening remarks, Eyob said the series of economic reform measures and policies that Ethiopia is undertaking are directed towards creating structural transformation and strengthening private sector participation in the economy.

The state minister explained how the reforms have been significant in avoiding a full-fledged financial crisis that was looming because of the development model the previous government was following, which relied heavily on borrowing money for State-Owned Enterprises, and projects that also used the money inefficiently.

In this regard, he noted that economic reform measures have helped to remove regulatory obstacles, which in the past used to hamper investment.

The state minister also said that the reform measures taken so far have brought about significant improvements in investment laws and enhancements in the business climate.

In terms of priority, Eyob explained the reforms in the agricultural sector are making the country move towards mechanization, improved manufacturing, and growth in export.

The state minister also elaborated about SOE reforms, tax reforms, debt management plans, and measures being taken to liberalize the telecom sector and privatize the telecom industry.

With regard to financial sector reforms, he elaborated about the steps taken in terms of foreign exchange management, measures to control inflation as part of preparations to establish a capital market, and strengthening the treasury bill market as well as modernizing the monetary policy framework.

Eyob said Ethiopia possesses a vast array of resources that can offer a huge potential for investment in agriculture, agro-processing, mining, manufacturing, and other sectors, and encouraged Swedish investors to continue looking into the untapped investment potential and incentives in the country.

Representatives of over 25 companies such as Ericsson, Hennes, and Mauritz (H&M), Volvo Trucks, and AstraZeneca attended the meeting.