The Ethiopian economy has received a huge boost courtesy of a $3 billion funding from the World Bank aimed at strengthening structural imbalances, and macroeconomic growth. It will also help the country to address some underlying factors slowing down its economic growth.
Ethiopian Prime Minister Abiy Ahmed
Ethiopia which has been one of Africa’s fastest growing economies over the last decade has witnessed huge infrastructural development impacting growth and pumping up employment, however, political instability occasioned by protests and violence has slowed down growth in some sectors.
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The country’s tourism and hospitality industry which has attracted a lot of attention in recent years has been at the receiving end of the political upheavals which l led to a change of government in the last two years, as expectations have been dampened as a result of the violence.
The government however, has vowed to continue churning out positive growth numbers through structural balancing and strengthening macroeconomic growth.
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Speaking on government’s efforts to see growth rebound soonest, the Ethiopian Prime Minister Abiy Ahmed said at the weekend that Ethiopia will receive $3 billion from the World Bank to help strengthen reforms in its traditionally state-controlled economy.
The announcement was made two days after the International Monetary Fund said it had reached a preliminary agreement for a three-year, $2.9 billion financing package to support Ethiopia’s economic reforms.
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Abiy did not give more details on the World Bank funding. He said on his Twitter account that unnamed development partners have pledged more than $3 billion in addition to the World Bank and IMF funding.
The money will go toward macroeconomic, structural and sectoral reforms, he said.“This reaffirms both Governments’ and donors’ partnership to transition Ethiopia to a prosperous and peaceful nation,” Abiy tweeted.
The Prime Minister is hell bent on opening up the Ethiopian economy to the private sector which was the core of his promise when he came to power in 2018. Ethiopia is one of the remaining African countries with huge public sector run centrally controlled economy. Sectors like the telecomms and banking are still in government hands. It is expected that the country will open its economy to forein investors in key sectors.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry