Ethiopia’s Macroeconomic Reform More Succesful Than Many Countries – Finance Minister

Addis Ababa — Finance Minister Ahmed Shide said that Ethiopia’s macroeconomic reform efforts have achieved greater success than that of many other nations.

A macroeconomic team chaired by Prime Minister Abiy Ahmed assessed in detail the performance of the reform over the past two months today.

In his presser, Finance Minister Ahmed emphasized that the reform has been highly successful when compared to similar efforts in other countries.

He noted that one of the primary objectives of the reform was to ensure overall economic stability.

Ethiopia’s economy, despite significant social challenges, has continued to progress steadily, he added.

The minister further highlighted that inflationary pressures have not escalated and there are in fact signs of decreasing inflation.

According to him, macro economy reform in general and free-floating currency exchange in particular and the implementation of a new monetary policy in many countries have been creating problems.

In Ethiopia, the reform has been executed smoothly, contributing to stable conditions both within the economy and in the society, Ahmed noted.

The other major goal of the macroeconomic reform is to boost revenue, it was learned.

The minister revealed that Prime Minister Abiy Ahmed had initiated the formation of a new task force and it has been striving over the past two months to enhance revenue.

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Ministries of Finance and Revenues, alongside the Customs Commission and other key government bodies, including the premier, have been working collaboratively to execute the plan.

This joint effort has already shown positive results, with higher revenue performance compared to last Ethiopian fiscal year.

The prime minister has instructed the macroeconomic team to continue focusing on these areas, he said, adding that significant dialogues have been held with taxpayers, and agreements reached to further improve tax compliance in the past two months.

The government has also been cautious about ensuring that the reform does not lead to excessive social strain, especially on lower-income communities.

Accordingly, a new policy measure was introduced to protect vulnerable groups, and the salary increment for low-wage earners approved yesterday would be implemented. This initiative requires an additional 92 billion Birr in budgetary allocations.

Details of the salary increment would soon be announced by the Civil Service Commission, he added.

Despite the inflationary pressures over the past two months, price has remained stable, Ahmed said, adding that the government’s proactive approach in managing price hikes, particularly through the importation of essential commodities like cooking oil and sugar, has helped ease inflationary burdens on the public.

The minister remarked that efforts are ongoing to stabilize the prices of essential goods, including medicines and other necessary supplies, ensuring continued availability for the public.

In this regard, two public enterprises have been importing edible oil and sugar.

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