Ethiopia’s Macroeconomic Reforms Usher in New Era of Sustainable Growth: Ambassador Girma

Addis Ababa, September 23, 2025 (ENA) -- Ethiopia’s ongoing macroeconomic reforms are laying the groundwork for a new era of sustainable and inclusive growth, according to Ambassador Girma Biru, the Prime Minister’s Macroeconomic Advisor.

In an exclusive interview with ENA, Ambassador Girma highlighted the wide-ranging impact of the reform agenda, which is aimed at modernizing the economy, increasing competitiveness, and attracting investment across multiple sectors.

He emphasized that the reforms are already yielding tangible results in key areas such as agriculture, manufacturing, and services, which have seen improved productivity and increased resilience.

“By creating a more market-oriented economic environment, we are enabling sectors that were once underutilized to thrive and contribute meaningfully to national development,” Ambassador Girma stated.

One of the cornerstone policies of the reform package has been the liberalization of the foreign exchange regime, allowing the Ethiopian birr’s exchange rate to be determined by market forces

This shift, he explained, has enhanced export competitiveness, incentivized foreign currency inflows, and made trade more profitable for domestic producers.

We are now seeing a gradual narrowing of the trade deficit as export volumes increase and more foreign direct investment is mobilized, he added.

Another important element of the reform program is the promotion of import substitution, where goods that were traditionally imported are now being produced domestically.

This not only reduces the country's dependency on foreign goods but also stimulates local industries and job creation.

“We’re seeing strong growth in areas such as agro-processing, textiles, and pharmaceuticals, which are essential to building a more self-reliant economy,” the Ambassador noted.

Ambassador Girma also pointed out that Ethiopia’s previous growth model relied heavily on a narrow base of sectors, primarily agriculture and state-led infrastructure investment.

The current reform agenda, however, is designed to broaden the economic base, enabling a more balanced and diversified growth trajectory.

“These reforms are not just about short-term recovery; they are strategic investments in our long-term economic resilience,” he said.

By encouraging competition, enhancing productivity, and expanding the role of the private sector, the country is moving towards a more inclusive model of development that benefits all Ethiopians.

Looking ahead, Ambassador Girma expressed confidence that continued commitment to the reform process would position Ethiopia as one of Africa’s most dynamic economies.

“The road ahead will not be without challenges, but the foundation we are laying today is critical to ensuring sustainable growth and economic sovereignty,” he concluded.