Ethiopia’s Full Implementation of Macroeconomic Reform Transformative to Industrial Development, Say Senior Government Officials
Addis Ababa: The full implementation of the macroeconomic reform has played a transformative role in enhancing Ethiopia’s industrial development, according to senior government officials.
According to Ethiopian News Agency, Minister of Planning and Development Fitsum Assefa, Minister of Finance Ahmed Shide, and Governor of the National Bank of Ethiopia Mamo Miheritu reflected on the full implementation of the macroeconomic reform during a panel discussion at the Made in Ethiopia Expo 2025. The Third Made in Ethiopia Expo, inaugurated by Prime Minister Abiy Ahmed at the Addis International Convention Center, provided a platform for government officials to highlight the positive impacts of Ethiopia’s ongoing macroeconomic reforms on industrial development.
Minister Fitsum Assefa emphasized the significant enhancements in industrial production and productivity due to the Homegrown Economic Reform agenda. She noted that the first phase of the reform has led to tangible outcomes, including improved access to loans for the private sector and reforms attracting both domestic and foreign investment. The aim is to increase production capacity to 85 percent by 2030, with the first phase already showing results.
Minister of Finance Ahmed Shide echoed these sentiments, stating that the reforms have created a stable macroeconomic environment conducive to investment, positioning Ethiopia as a future manufacturing hub in Africa. He highlighted the liberalization of previously restricted sectors, increased private-sector financing, and upgrades in transport, telecom, and energy infrastructure. The role of industrial parks and targeted incentive schemes, such as tax relief and access to regional markets, are crucial for competitiveness and growth in manufacturing.
Ahmed noted that some sectors have opened up to foreign investors following the reforms. Efforts are underway to enable the private sector to spearhead the economy, with the government facilitating stable financing. The Commercial Bank of Ethiopia now provides over 80 percent of loans to the private sector. The comprehensive macroeconomic reform aims to create a conducive investment landscape, foster regional infrastructure development, and establish Ethiopia as a manufacturing hub.
National Bank Governor Mamo Mihret highlighted the impact of foreign exchange reform, which has improved access to foreign currency. These measures have boosted the profitability of export-oriented industries and strengthened Ethiopian manufacturers’ competitiveness in global markets. He reaffirmed the Bank’s commitment to supporting sustainable industrial development.
Senior government officials emphasized that Ethiopia’s macroeconomic overhaul is revitalizing the manufacturing sector and laying the groundwork for the country to emerge as a major industrial player in the region.