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

Addis Ababa: A dialogue that underlined the importance of enhanced financial and private sector engagements aimed at realizing the long-term economic transformation of Ethiopia was held in Addis Ababa today. Planning and Development Minister Fitsum Assefa briefed stakeholders from financial and private sectors on the early results of the comprehensive macroeconomic reform and its implications for Ethiopia’s long-term economic transformation.

According to Ethiopian News Agency, the Minister highlighted that the government has significantly improved the overall macro-economic policy environment. She compared and contrasted the history of development policies and economic transformation paths of four successive Ethiopian regimes, starting from the imperial regime. Fitsum noted that, although there have been some positive improvements, the development policies and economic transformation in the past 60 years were not technologically driven and were mainly dependent on agriculture.

She further elaborated that wh
ile Ethiopia and South Korea had similar economic growth in the 1960s, the two countries’ economies are now drastically different. The current Ethiopian government plans to achieve long-term economic transformation through a multi-sectoral approach, focusing on continuous technological upgrades, particularly in the manufacturing sector.

Fitsum emphasized that a technologically driven manufacturing sector is crucial for long-term economic or structural transformation, as it enhances capital accumulation, increases returns to scale, promotes skill development, and boosts export competitiveness. She identified skills development, adequate clean energy, efficient public investment management, modernization of agriculture, harnessing mining sector potential, leveraging the digital economy, infrastructure prioritization, harnessing tourism potential, pragmatic economic diplomacy, and transitioning to a green economy as foundational elements for the country’s long-term economic transformation.

The Minister urged t
he financial and private sectors to actively collaborate with the government to realize long-term economic transformation, aiming to make Ethiopia a beacon of prosperity for Africa and the world by 2030 and 2050, respectively. Finance Minister Ahmed Shide echoed this sentiment, stating that Ethiopia’s long-term economic transformation requires deepening and sustaining comprehensive macroeconomic reforms. He reaffirmed the government’s commitment to encouraging the role of private sectors in the overall economy.

Governor of the National Bank of Ethiopia, Mamo Mihretu, also emphasized the need for collaboration among stakeholders to achieve long-term economic transformation, noting that the government alone cannot accomplish this goal. He stressed the importance of financial sectors, exporters, and private sectors working collaboratively, pointing out that one of the reasons for implementing comprehensive economic reform is to support and encourage the development of financial and private sectors in the countr
y.