ADDIS ABABA, Dec 25 (NNN-ENA) – The International Monetary Fund (IMF), expressed its support to Ethiopia’s ongoing economic reform initiative, that aimed to eliminate macroeconomic imbalances and lay the foundation for sustainable and inclusive growth.
The IMF, which approved a 2.9 billion U.S. dollar funding to Ethiopia late last week, said, the support is aimed at supporting the Ethiopian government’s Homegrown Economic Reform Programme.
“The authorities have developed their very own ambitious Homegrown Economic Reform Plan, tailored to the country’s needs and preferences. They have engaged in wide-ranging outreach, to discuss the economy’s future with key stakeholders and have taken important initial steps to implement reforms,” IMF said of Ethiopia’s economic reform agenda.
According to IMF, the initiative, in addition to addressing Ethiopia’s foreign exchange shortage, would also reduce debt vulnerabilities, as well as, reforming the financial sector and boosting revenue mobilisation, which will be supported by the provision of technical assistance and training.
The IMF, however, stressed that, financial sector development needs to be accompanied by stronger supervision and financial safety nets, to ensure that the financial sector remains stable.
The east African country recently announced that it would need as much as 10 billion U.S. dollars to successfully implement the three-year long national economic reform. The reform is designed to reduce external imbalances, contain debt vulnerabilities, lift financial repression, increase domestic resource mobilisation, which will also help devote adequate resources to pro-poor spending.
Last week, the Ethiopian government disclosed that the World Bank and IMF have pledged to extend more than five billion U.S. dollars over the coming three years to support Ethiopia’s ongoing economic reform.
On Dec 14, Ethiopian Prime Minister, Abiy Ahmed, also announced over three billion U.S. dollars financial pledge, from Ethiopia’s Development Assistance Group to the reforms.– NNN-ENA