Ethiopia's Minister of Finance, Ahmed Shide, announced a significant milestone in the nation's comprehensive macroeconomic reform efforts, stating that for the first time in three decades, the government has not resorted to direct borrowing from the National Bank this year.
In a briefing on the reform's performance, Ahmed highlighted its role in fostering healthy economic growth across various indicators. He emphasized that the government undertook extensive preparations before implementing the nearly year-long reform, which he affirmed is being executed with high responsibility.
A key testament to this commitment, according to Ahmed, is the disciplined management of monetary and fiscal policy. He revealed that the government avoided direct borrowing from the National Bank to finance its budget deficit this year, a practice that had been standard for the past 30 years.
This achievement, the Minister explained, is attributed to a combination of factors: bolstered revenue collection, efficient utilization of funds from development partners, and enhanced government expenditure management. "Overall, the comprehensive macroeconomic reform has yielded these positive results," Shide stated.
Looking ahead, the Minister expressed confidence that the Ethiopian economy is on track to meet its ambitious 8.4 percent growth target for the current year.
Further underscoring the reform's impact, Ahmed reported that export earnings this year have reached an all-time high in Ethiopia's history. Tax revenue has also seen a remarkable increase, approximately doubling compared to the previous year.
Finally, the Minister noted that the decision to allow the foreign exchange rate to be market-determined has effectively addressed previous shortages in the sector and led to a substantial increase in the National Bank's reserve holdings.