Ethiopia is on a "healing journey," with significant strides in export revenue and a notable drop in inflation, Prime Minister Abiy Ahmed revealed during the second part of his interview with the Ethiopian Broadcasting Corporation (EBC). While acknowledging the persistent challenge of inflation, PM Abiy emphasized that curbing economic growth is not a sustainable solution.
"Stopping growth would act as an anti-pain for the moment, but the problem will resurface like after a week. That's why we can't fight inflation by halting growth," PM Abiy stated, underscoring the need for an evolving strategy to tackle the issue.
The Prime Minister highlighted the nation's remarkable turnaround in export performance. In just the past year, Ethiopia generated approximately $8 billion in export revenue. This figure, he noted, surpasses the $7.5 billion earned over a 15-year period from 1984-1998, which included times of war and political instability.
Reflecting on that earlier period, Prime Minister Abiy Ahmed pointedly questioned the pace of development, asserting that "one has to ask what has been done in 15 years." He emphasized that given Ethiopia's rich resources, the nation could have achieved significantly more, particularly in boosting its export capacity, highlighting a period of vast, unrealized potential.
Coffee exports, a cornerstone of the economy, are projected to exceed the $3.5 billion generated over 15 years, with sales already reaching $2.5 billion within just a year. "In two years' time, it would be more than the 15 years' time. We worked hard to get the results. What more can we want?" he added.
Gold exports have seen an even more dramatic increase. Over 15 years, gold brought in $508 million, but this year alone, the country has earned $3.2 billion—more than six times the previous figure. "If this isn’t a sign of revival then I don’t know what is. This is just export," the Prime Minister declared, suggesting that tangible change is evident across the country, visible even a short distance from urban or rural centers.
PM Abiy also reported success in reigning in inflation, which has decreased significantly from 34% to 13.5%. Additionally, he noted a reduction in national debt. These indicators, he stressed, are clear signs of Ethiopia's economic recovery and progress.
"Inflation is a moving target," the Prime Minister acknowledged, emphasizing the need for flexible and adaptive strategies. While recognizing the legitimacy of concerns regarding salary increases, PM Abiy affirmed to provide calm and reasoned solutions as the country continues its journey towards stability and sustained growth.