The Ministry of Finance has a long tradition of supporting economic growth in Ethiopia.
However, despite the high economic growth that was realized over the past decade, Ethiopia’s economy has encountered several challenges that make it difficult for growth to sustain.
This has led us to examine the quality of this growth, evaluate whether these economic gains are based on solid foundations and see how they are being distributed.
Our the economy is facing significant macro-economic imbalances that are seen in the high external debt, high inflation, low foreign currency reserve, rising unemployment, low-quality social services, and basic infrastructure that fail to meet demands, to name a few.
In order to act on these challenges, our administration introduced the Homegrown Economic Reform program with the foundational objectives of supporting sustainable economic growth, maintaining a stable macroeconomic environment by reducing debt vulnerabilities, and creating adequate and high-quality job opportunities.
The Homegrown Economic Reform program aims to increase productivity and competitiveness in the overall economy and transition Ethiopia to private sector-led growth through a series of macro-economic, sectoral, and structural reforms. We believe a more stable macroeconomy will be ensured as a strong private sector will play a significant role in the economy and will improve economic efficiency and increase jobs.
Our government’s ten-year development plan also delivers a long-term vision of Ethiopia becoming a middle-income country by 2025 and an “African Beacon of Prosperity.”. The Ministry of Finance which formulates macro-economic, fiscal, and revenue policies is committed to playing its role in realizing the implementation of both the Homegrown Economic Reform program and the ten-year development plan. To fully succeed, we cooperate closely with other stewards of Ethiopia’s economy such as the Prime Minister’s Office, the Planning and Development Commission, the Ethiopian Investment Commission, and other line Ministries. On behalf of the Ministry of Finance, I wish to thank Ministry of Finance employees, Government of Ethiopia officials and staff, our development partners, investors and private sector firms operating in Ethiopia, for your contributions to the prosperity of my country and the Ethiopian people.