Ethiopia's foreign exchange availability has significantly improved following the implementation of recent macroeconomic reforms, according to Minister of Planning and Development, Fitsum Assefa (PhD). Speaking at a forum organized by the Prime Minister’s Office, she addressed public concerns regarding foreign exchange shortages that have previously hindered industrial growth.
Minister Fitsum emphasized that foreign exchange is no longer a structural issue for Ethiopian industries.
“Foreign exchange availability has increased significantly since the implementation of macroeconomic reforms in Ethiopia,” she stated.
This turnaround is evident in the remarkable 102 per cent increase in commodity exports over the past seven months compared to the same period last year.
Additionally, the supply of capital goods essential for manufacturing has risen by 20 per cent, underscoring the positive impact of these reforms on economic activity.
The Minister highlighted that Ethiopia has received $3.9 billion from development partners in the last seven months, with remittance earnings also showing a robust 14 per cent increase compared to the previous year.
These figures reflect a growing confidence among international partners and a strengthening economy, she noted.
A key element of this foreign exchange improvement is the National Bank's auction system, which has facilitated significant transactions in the market. According to Fitsum, banks have purchased $5.1 billion in foreign exchange, selling $4.4 billion of that amount. Currently, there exists a surplus of $720 million in the banking system, indicating ample availability for viable investments.
In a further testament to the government's commitment to revitalizing industry, the Ethiopian Tamirt movement has successfully helped 395 factories that had ceased operations due to various challenges resume production.
This initiative addresses both national and international obstacles, demonstrating the government's proactive approach to fostering industrial recovery.
Fitsum's remarks come at a crucial time when businesses are seeking stability and growth opportunities. By alleviating foreign exchange constraints and supporting industrial operations, Ethiopia is positioning itself for sustainable economic development.
The Minister’s insights not only reflect progress but also signal a renewed optimism for the country's economic landscape as it navigates the complexities of global markets and domestic challenges.