Ethiopia is launching a significant plan to improve its economy. This plan builds on a local program designed to boost economic growth and attract investment. Reportedly, the Ethiopian government has successfully reached agreements for billions of dollars in funding from important organizations like the International Monetary Fund (IMF) and the World Bank.
The new economic changes will introduce several important steps. First, the government will implement a market-based foreign exchange system to help set a fair value for the country’s currency. Ethiopia is planning to devalue the birr in the next few days, reportedly. The devaluation is expected to happen at the heels of a key meeting between the International Monetary Fund and Ethiopian government delegations on Monday. The government has been in talks with the IMF for months about a $3 billion bailout package.
They will also create a new policy for managing interest rates, guiding how people borrow and lend money. Additionally, the government will update its budget policies to improve how it spends and saves money. They plan to manage loans and funding for development projects more effectively.
To ensure these changes work well, the government has set clear goals. They will monitor progress through different government offices to protect the country’s interests and ensure that citizens benefit from these reforms.
The government also plans to support vulnerable communities by introducing social safety net programs. This includes temporary financial aid for low-paid government workers to help them cope with any negative effects of the changes. Furthermore, the government will implement a partial increase in fuel prices as part of the new economic strategy. You can check the current fuel price in Ethiopia here.
Overall, Ethiopia is committed to these reforms to promote the growth of the economy and improve the lives of its citizens.
The timing is not good. It is the time of budget allocation. ሰርገኛ መጣ፡
Sure this reform will more initiate economic development when ever government able to control and supervise corrupted officials, different development projects ,increase the income of civil servants above all keeping the peace and security is mandatory for the government.
It is well known that the IMF and other international financial institutioma solution is lkke pouring a benzine on fire.
They will advice the Government to raise VAT or taxes and create more obstacles to the public.
Through out the modern history qe have seen this in a number of countries. The only country spared itself from this was Malaysia as I remember.
What will be the outcome from this is more suffering to the poor and needy Ethiopians.