Well-acclaimed economic experts lauded Prime Minister Abiy Ahmed’s (PhD) recent economic report to MPs and took the government’s plan to allow foreign banks’ involvement as a positive step to the growth of the financial sector.
The experts told local media that permitting foreign banks to Ethiopia is crucial to stabilize forex crunch, strengthen investment and entrepreneurship.
For Zelalem Teklu (PhD), a notable economist, Ethiopia’s economy, which is highly affected by the coronavirus pandemic and the northern conflict, have been demonstrating sustenance and progress. Considering the agricultural sector, for instance, dozens of farmers have been yielding best wheat products through organizing themselves in cluster farming.
Zelalem further noted that the cluster farming system is very helpful to achieve national import substitution strategy through producing food and related products. “Despite the above, most of the northern parts of Ethiopia is not conducive for cluster farming and the government should
have set strategies and approaches to enhance the productivity of farmers and implement farming practices that are best fit with the respective area.”
Concerning the manufacturing industry, he claimed that the sector has not been performing at the desired level and requires the government’s smart intervention to create an enabling environment for involved businesses.
Sharing the above rationale, another prominent economist Shiferaw Adilu (PhD) said that Ethiopia’s economy has been adversely spiking of the prices of goods and services which is largely resulted from the ongoing conflict, COVID-19 pandemic and other global and local factors.
Lauding Premier Abiy’s emphasis on investigative journalism to discourage corruption, Shiferaw stressed that the government’s close follow-up and supervision would play a crucial role to deter economic crimes. “The flow of tourism and investment as well the productivity of agriculture and other economic sectors have been challenged by the northern conflict and the government is expected to exert its full potential to resolve the encounter.”
BY TAMERU REGASA
