Moving away from Zenawisim (statism) and embracing a more active private sector participation to dig outta poverty..
Posted: 17 Sep 2019, 17:28
"Rapid increases in external debt in the context of poor project executions and export performance led to a high risk of debt distress," he said.
As of last March, the total outstanding debt growth of Ethiopia stood at 26.9 billion dollars, of which a large share of the debt was owed by state-owned enterprises. In addressing these problems, the reform agenda outlines three responses: macroeconomic, structural and sectoral reforms.
The responses at the macroeconomic level aim at re-balancing and safeguarding financial stability through encouraging savings to get invested in the financial system, strengthening public sector finances, controlling inflationary pressure, improving access to land and developing capital markets. Maintaining a "prudent fiscal policy stance and mobilizing foreign currency through privatization and concessional loans" are also the macroeconomic objectives of the reform.
On the structural front, the reformers focus on creating a conducive investment climate for the private sector by amending legal frameworks, administrative procedures and policies. The reformers want to see a facilitating bureaucracy, away from one that is there to "police".
It also considers overhauling the logistics, power and telecommunications sectors, identifying them as key enablers. Priority sectors in agriculture, manufacturing, mining, tourism, technology and creative industries were identified in the Sectoral Reforms. The reformers hope these are sectors with the potential to create millions of jobs and generate revenues."
https://addisfortune.com/a-10-billion-e ... m-package/
As of last March, the total outstanding debt growth of Ethiopia stood at 26.9 billion dollars, of which a large share of the debt was owed by state-owned enterprises. In addressing these problems, the reform agenda outlines three responses: macroeconomic, structural and sectoral reforms.
The responses at the macroeconomic level aim at re-balancing and safeguarding financial stability through encouraging savings to get invested in the financial system, strengthening public sector finances, controlling inflationary pressure, improving access to land and developing capital markets. Maintaining a "prudent fiscal policy stance and mobilizing foreign currency through privatization and concessional loans" are also the macroeconomic objectives of the reform.
On the structural front, the reformers focus on creating a conducive investment climate for the private sector by amending legal frameworks, administrative procedures and policies. The reformers want to see a facilitating bureaucracy, away from one that is there to "police".
It also considers overhauling the logistics, power and telecommunications sectors, identifying them as key enablers. Priority sectors in agriculture, manufacturing, mining, tourism, technology and creative industries were identified in the Sectoral Reforms. The reformers hope these are sectors with the potential to create millions of jobs and generate revenues."
https://addisfortune.com/a-10-billion-e ... m-package/