Ethiopia's comprehensive macroeconomic reform program is yielding impressive results, surpassing anticipated outcomes across all indicators, according to Mamo Mihretu, Governor of the National Bank of Ethiopia.
In a recent briefing, Governor Mamo detailed the significant progress made, emphasizing that the reforms are fostering sustainable economic growth. He highlighted the program's success in achieving key objectives, including increasing revenue, restructuring debt, stabilizing the macroeconomy, boosting foreign exchange earnings, and strengthening the financial sector.
"The comprehensive macroeconomic performance is being implemented effectively," Mamo stated, pointing to tangible improvements in export trade, foreign exchange reserves, and inflation reduction. He underscored the International Monetary Fund's (IMF) validation, noting that a recent IMF report, from one of the program's key supporters, confirmed Ethiopia's macroeconomic reform performance is outperforming its targets.
A crucial success has been the steady decline in inflation since the reforms began. Governor Mamo reported that food-related inflation is now below 12 percent. Looking ahead, he announced ambitious plans to bring overall inflation down to a single digit by the end of next year, a goal to be achieved through strict monetary and fiscal policies, enhanced productivity, and value-added trade facilitation.
The Governor also shed light on the radical improvements within the foreign exchange system. Measures taken have not only led to a market-based exchange rate but have also significantly enhanced the entire foreign exchange framework. This has resulted in a notable increase in foreign exchange inflows into the Ethiopian economy and a boost in export performance over the past 11 months.
Remarkably, exports, which stood at $3.8 billion before the foreign exchange reforms, are projected to reach $8 billion by the close of the current fiscal year, Mamo revealed. He attributed the program's success to thorough preparation, extensive studies, and a comprehensive implementation approach that integrated various critical issues.
Concluding his remarks, Governor Mamo highlighted the reforms' substantial impact on attracting investment. He affirmed a continued focus on strengthening and sustaining these achievements, emphasizing that the combination of market-determined exchange rates, robust fiscal and new monetary policies, and investment-friendly legal amendments has been instrumental in achieving these significant results, ENA learned.