ADDIS ABABA – Ethiopia’s ongoing economic reforms, aimed at macroeconomic stability and growth, will receive a significant boost from financial packages provided by the World Bank and the International Monetary Fund (IMF), announced Finance Minister Ahmed Shide today. The minister spoke at the presentation of a draft proclamation regarding a 500-million USD concessional loan from the International Development Association (IDA) to the House of People’s Representatives.

According to Ethiopian News Agency, these financial packages will significantly support the government’s reform initiatives, which are part of a broader macroeconomic overhaul launched this week, building on the foundations laid by the Homegrown Economic Reform initiated five years ago. The reforms prioritize enhancing the private sector’s role and addressing macroeconomic imbalances.

The Homegrown Economic Reform and the 10-year development plan were introduced to sustain development, stabilize prices, maintain a sustainable payment balance, reduce the debt burden, and tackle economic challenges. Despite facing obstacles such as internal conflicts, climate change, and global disruptions from the Russia-Ukraine conflict, the initial phase of reforms achieved notable successes.

Minister Shide detailed the launch of the Second Homegrown Economic Reform, which aims to build upon the achievements of the first phase with more extensive discussions and training. He emphasized that recent government actions are designed to deepen these reforms and ensure the full implementation of the planned activities.

Highlighting a shift towards a market-led economy as a timely move, Shide remarked on the country’s financial discipline: “We have not borrowed any external loan in the past six years,” pointing out the existing high debt burden from loans over the past 15 years. The comprehensive macroeconomic reforms aim to mitigate this debt burden and secure substantial foreign currency to support both the reforms and the national budget.