The program seeks to correct foreign exchange distortions, reduce inflation, alleviate public debt, and strengthen the financial sector. By fostering a more competitive business environment and increasing domestic investment, the government aims to unlock economic growth potential and create job opportunities.
To achieve these goals, Ethiopia will adopt a market-based foreign exchange rate regime, modernize its monetary policy framework, and implement comprehensive fiscal reforms. The government is also actively seeking to restructure its debt and attract new development financing.
The International Monetary Fund (IMF), World Bank, and other development partners are supporting Ethiopia’s reform efforts. Through these partnerships, the government expects to receive billions of dollars in additional financing.
The program emphasizes the importance of strong institutions and transparent communication. The government is committed to monitoring and evaluating the reform process closely, making necessary adjustments, and protecting vulnerable populations from potential negative impacts.
With this ambitious reform agenda, Ethiopia aims to build a modern and internationally competitive economy, creating a brighter future for its citizens.
Key reforms include:
- Shifting to a market-based foreign exchange rate
- Modernizing monetary policy with an interest rate-based framework
- Enhancing government revenue collection and expenditure efficiency
- Restructuring public debt
- Strengthening the financial sector
- Improving the business environment
- Protecting vulnerable populations
By implementing these measures, Ethiopia seeks to achieve high and stable economic growth, reduce inflation, and create a favorable environment for private sector investment.