World Bank President Lauds Ethiopia’s Resilient Economy

Addis Ababa, August 01/2023 (ENA) The World Bank Group President Ajay Banga applauded today Ethiopia’s economic resilience against the various manmade and natural shocks. 

The president made the remark after holding fruitful discussion on various issues with Finance Minister Ahmed Shide.

Banga said that “despite all the challenges that the country and its society had to deal with, some man-made challenges like the conflict, some natural challenges like drought, floods, COVID…I think you have done very well with resiliency, with care and concern to come out of it.”  

The president, who pointed out that interest rates are higher, debts challenging, and it is not an easy time, added that the two sides “had robust discussion about how we can be helpful.”

In Ethiopia the WB has more than 400 employees, he revealed, stating that “Ethiopia is important to us and will become more.”

The president pointed out that he wants to grow lending in Ethiopia. But underscored that “ten years from today, Ethiopia should not need money from the Bank. All you should need is our knowledge and expertise.”

Finance Minister Ahmed Shide said on his part that he had briefed the visiting WB President about the ongoing economic reforms and development activities in Ethiopia in the past 5 years.

“We have briefed Ajay on the new economic reform that Ethiopia will continue on the fundamental aspects of the previous reform. Particularly, we have four core areas of reform objectives on the new reform agenda which is macroeconomic stability, enabling private sector led growth as well as enhancing production and productivity of private sectors …and the Bank was very much supportive.” 

According to him, the World Bank is a major partner for Ethiopia’s development in terms of size and impact.  

The banking sector reform activity was among the discussion topics, the minister said, adding that “it is in line with our demand, the dimensional nature of poverty, and the complexity of challenges. This needs new approach and the Bank has to be properly resource both for concessional and other financing capacity.”

He further stressed that “Ethiopia will continue to work in terms of attracting foreign direct investment, the privatization program, public-private enterprises reform, and banking sector modernization are all geared toward the [private sector led growth] directions.”