Ethiopia’s Finance Minister Engages with International Finance Entities to Boost Private Sector Investment

WASHINGTON: Ethiopia's Finance Minister, Ahmed Shide, conducted discussions with representatives from the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) during the 2024 World Bank and International Monetary Fund Annual Meetings. The talks focused on Ethiopia's macroeconomic reforms and strategies to enhance private sector development.According to Ethiopian News Agency, the Ethiopian delegation, led by Minister Shide, engaged in productive exchanges with IFC's Managing Director Makhtar Diop and MIGA's Vice President, Ethiopis Tafara. The discussions centered around Ethiopia's ongoing macroeconomic reforms and initiatives to attract private sector investments, including the recent opening of retail, financial, and other sectors to international investors.Minister Shide updated the representatives on the progress of Ethiopia's homegrown macroeconomic reforms, highlighting positive signs such as improved business sentiment among private investors. He reiterated the government's commitment to increasing private sector investments, especially in energy, manufacturing, logistics, and telecom sectors, to drive sustainable growth.The international agencies acknowledged Ethiopia's efforts to foster an investment-friendly environment while emphasizing the need for continued improvements to fully realize the potential of private sector-led development. Minister Shide urged the agencies to enhance their support for private investments, given the favorable macroeconomic conditions in Ethiopia.IFC Managing Director Makhtar Diop expressed his commitment to furthering IFC's technical support and resource mobilization to aid Ethiopia's development goals. He indicated readiness to explore financing options for the new airport project and rural development and agriculture initiatives in partnership with other development entities.Both IFC and MIGA committed to mobilizing additional resources through various instruments, including a streamlined guarantees scheme for the privat e sector. The parties agreed to strengthen partnerships, increase resource mobilization, and co-organize a high-level Foreign Direct Investment Roundtable in Addis Ababa in January 2025.