Addis Ababa:The opening of the Second Ethiopian Finance Forum 2026 at the Adwa Victory Memorial Museum showcased Ethiopia's commitment to economic transformation through comprehensive structural reforms. These reforms focus on enhancing financial stability, increasing investment, boosting domestic production, and strengthening institutions to create a resilient and self-reliant economy.
According to Ethiopian News Agency, the forum emphasized key priorities in economic reform, financial sector development, and private sector participation. It aims to transform Ethiopia's human, natural, and institutional resources into drivers of growth and prosperity, with discussions running through October 1.
Ethiopia's macroeconomic reform program is a significant step toward aligning the economy with national development priorities. Deputy Prime Minister Temesgen Tiruneh noted reforms in the foreign exchange market, monetary policy, and financial sector regulation as measures to move from stabilization to transformation. These reforms are also opening sectors to greater competition and investment.
Ethiopia has established Ethiopian Investment Holdings to improve the performance of strategic national assets, including Ethiopian Airlines, the Commercial Bank of Ethiopia, and Ethio Telecom. These institutions play a pivotal role in expanding services and supporting economic growth. Additionally, cooperation with development partners has enabled Ethiopia to secure support from the International Monetary Fund to address economic challenges.
A major component of the financial sector reforms is expanding the role of the private sector. The Commercial Bank of Ethiopia has significantly increased its lending to the private sector, facilitating the growth of small and medium-sized enterprises. The bank has also introduced measures to support home and vehicle purchases and innovation and entrepreneurship through loans for emerging entrepreneurs.
Agricultural financing is another critical aspect of Ethiopia's economic transformation. The volume of loans for agriculture has risen significantly, and investments are being made in irrigation, mechanization, and productivity enhancement. Minister of Planning and Development Fitsum Assefa highlighted the reduction in inflation rates as a result of coordinated monetary and fiscal measures.
Efforts to address inflation included adjustments to bank credit growth ceilings and tax policy reforms that have strengthened domestic revenue management. Minister of Finance Ahmed Shide pointed to the tangible results of macroeconomic reforms in easing national debt and reducing inflation.
The digital transformation of banking services is expanding access to financial services and facilitating transactions. The launch of the Ethiopian Finance Academy is expected to prepare professionals to respond to developments in the financial sector.
The Second Ethiopian Finance Forum serves as a platform to assess the progress of Ethiopia's economic reforms, highlighting the financial sector's role in supporting long-term economic development.
