Expert predicts steady economic progress amidst of challenges

ADDIS ABABA- The ongoing macroeconomic reforms would bring in good results in enhancing economic efficiency and boosting flow of business and investment projects thereby sustaining the economic growth amidst pressing peace and health challenges, according to a renowned economist.

Speaking to The Ethiopian Press Agency (EPA), the economist Zemedeneh Nigatu stated that Ethiopia’s auspicious economy shores up in the current year, despite the fact that the country has been challenged by the outbreak of COVID-19 pandemic and the northern conflict. Following the restoration of peace and stability and the expected lessening of the impact of COVID-19, Ethiopia is predicted to register better economic growth compared with the previous few years.

Noting the economic reforms have the role to keep the positive trend, Zemedeneh indicated that the overall economic performance could not sufficiently benefit the low-income communities. “Particular attention should be given to arrest the soaring inflation.”

The government has done commendable jobs in intensifying irrigation and enhancing the production of agricultural crops thereby putting the import substitution strategy in a good position. Industrial parks have also a noteworthy contribution in the production of basic products and have the capacity to penetrate the global market besides satisfying the local desire. The amount of forex that has been generated from IPs is also encouraging.

“Perhaps, it is possible to bring a five percent growth in the national economy by mere investment in the agricultural sector. The investment on gold and other precious minerals is also a driving force to galvanize the national economy.”

This week, Business Insider Africa has ranked Ethiopia the 7th best African country to invest in 2022. Also, the African Export-Import Bank (Afrexim bank) signed a memorandum of understanding with the National Bank of Ethiopia (NBE) and the former extended over one billion USD to financially support the trade and investment of private and public sectors in the country in the form of line credits.



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