Ethiopia's Full Implementation of Macroeconomic Reform Transformative to Industrial Dev't, Say Senior Gov't Officials

Addis Ababa, May 4, 2025 (ENA) --- The full implementation of the macroeconomic reform has played transformative role in enhancing Ethiopia's industrial development, according to senior government officials.

Minister of Planning and Development, Fitsum Assefa, Minister of Finance, Ahmed Shide and Governor of the National Bank of Ethiopia, Mamo Miheritu reflected on the full implementation of the macroeconomic reform at the panel discussion held yesterday as part of the Made in Ethiopia Expo 2025.

The Third  Made in Ethiopia Expo, officially inaugurated by Prime Minister Abiy Ahmed at the Addis International Convention Center, served as a platform for high-ranking government officials to underscore the profound and positive impacts of Ethiopia's ongoing macroeconomic reforms on the country's industrial development.

Minister Fitsum Assefa emphasized that the Homegrown Economic Reform agenda has significantly enhanced the industrial production and productivity.

 

She noted that the first phase of the homegrown reform has already yielded tangible results, including improved access to loans for the private sector and attendant reforms that have attracted both domestic and foreign investment.

Aiming to raise the target of the production capacity to 85 percent by 2030, Fitsum stated that the first phase of the Homegrown Economic Reforms has registered tangible results.

Ethiopia’s macroeconomic reform has made robust economy--i.e. competitive by international standard and modern economic system, she said.

Ahmed Shide, Minister of Finance, for his part echoed the aforementioned ideas, stating that the reforms have created a stable macroeconomic environment conducive to investment and are positioning Ethiopia as a future manufacturing hub in Africa.

 

He emphasized the liberalization of previously restricted sectors, increased private-sector financing and major infrastructural upgrades in transport, telecom, and energy.

According to the finance minister,  the role of industrial parks and targeted incentive schemes, such as tax relief and access to regional markets are key drivers for competitiveness and growth in manufacturing.

Following the reform, some sectors have been opened up for foreign investors, Ahmed added.

Stating that efforts are underway to make the private sector to spearhead the economy, the finance minister added that the role of the government is to enable the private sector operates under sable financing, ensuring that it is effective sustainably.

Recalling that small loans had been provided to the private sector before seven years, Ahmed stated that currently, the Commercial Bank of Ethiopia alone provides over 80 percent of loans to the private sector. 

According to the finance minister, the comprehensive macroeconomic reform would have enormous contributions to create conducive landscape for investment, foster the country's endeavours for regional infrastructure development and make Ethiopia hub of manufacturing industry.

Stating in utilizing markets in neighboring countries apart from use of local markets, the finance minister pointed out efforts are being made to enable the Ethiopian manufacturer  embark on development of infrastructure in transport and energy infrastructure in neighboring countries.

National Bank Governor Mamo Mihret also mentioned the specific impact of foreign exchange reform, which has improved access to foreign currency.

 

These measures, he said, have boosted the profitability of export-oriented industries and allowed Ethiopian manufacturers to compete more effectively in global markets.

He reaffirmed the Bank’s commitment to monitoring and supporting the system to ensure sustainable industrial development.

All senior government officials emphasized that Ethiopia’s macroeconomic overhaul is not only revitalizing the manufacturing sector but also is laying the groundwork for the country to emerge as a major industrial player in the region.