Ethiopia Striving to Achieve Long-term Economic Transformation through Multi Sectoral Approach

Addis Ababa November 19/2024 (ENA) A dialogue that underlined the importance of enhanced financial and private sector engagements aimed at realizing the long-term economic transformation of Ethiopia held in Addis Ababa today.

Planning and Development Minister Fitsum Assefa briefed the stakeholders gathered from financial and private sectors about the early results of the comprehensive macroeconomic reform and its implication for Ethiopia’s long-term economic transformation.

The Minister said that the government has significantly enhanced the overall macro-economic policy environment, trying to compare and contrast the history of development policies and economic transformation paths of four successive regimes of Ethiopia starting from the imperial regime. 

Fitsum stated that the development policies and economic transformation of Ethiopia over the last 60 years were not successful and transformative, though there are some positive improvements but they were not technologically driven economic development and mainly dependent on agriculture.

The economic growth of Ethiopia and South Korea in 1960s was the same; however, the economy of the two countries nowadays is drastically different, she noted.

The government of Ethiopia currently has a plan to achieve long-term economic transformation through multi sectoral approach as well as facilitating continuous technological upgrading with the focus on the manufacturing sector, Fisum pointed out.

Technologically driven manufacturing sector is critical for long-term economic or structural transformation of the country since it enhances the growth of capital accumulation; increases return to scale; promote skill development and export competitiveness, among others, she stated.

The Minister mentioned that skills development, adequate clean energy, efficient public investment management, modernization of agriculture, harnessing mining sector potential,  leveraging digital economy, infrastructure prioritization, harnessing tourism potential, pragmatic economic diplomacy, transition into green economy, etc. are identified as foundation for long-term economic transformation of the country.

She finally urged the financial and private sectors to actively collaborate with the government and to play a major role in the effort to realize a long-term economic transformation of the country making it a beacon of prosperity for Africa and the world in 2030 and 2050, respectively.

Finance Minister, Ahmed Shide on his part reiterated that Ethiopia’s long-term economic transformation demands deepening and sustaining the comprehensive macroeconomic reform of the country.

Ahmed reaffirmed the government’s commitment in encouraging the role of the private sectors in the overall economy of the country. 

Governor of National Bank of Ethiopia, Mamo Mihretu on his part reiterated the need for collaboration among stakeholders to bring long term economic transformation of the country, underlining that government alone can’t achieve successful economic transformation.

Financial sectors, exporters and private sectors must work in collaboration, he added, stressing that one of the reason for the implementation of comprehensive economic reform is to support and encourage the development of financial and private sectors in the country.