Addis Ababa, September 23, 2025 (FMC) – Ethiopia’s sweeping macroeconomic reforms are setting the stage for a new chapter of sustainable, diversified, and inclusive growth, according to Ambassador Girma Biru, Macroeconomic Advisor to the Prime Minister.
Ambassador Girma underscored that the reform package—designed to modernize the economy, sharpen competitiveness, and expand investment opportunities—is already delivering measurable progress across agriculture, manufacturing, and services. Productivity gains, greater sectoral resilience, and broader private-sector engagement are emerging as defining outcomes.
“By moving toward a more market-oriented economic framework, we are unlocking the potential of sectors long underutilized, enabling them to become central drivers of national development,” Ambassador Girma remarked.
A central pillar of the reform agenda is the liberalization of the foreign exchange regime, which now allows the Ethiopian birr to be determined by market dynamics. This structural shift, he noted, has bolstered export competitiveness, attracted foreign currency inflows, and strengthened profitability for domestic producers. Early signs include a narrowing trade deficit as export volumes rise and foreign direct investment accelerates.
Equally pivotal is the push for import substitution, with industries once reliant on imports now producing goods domestically. This policy, Ambassador Girma explained, is reducing external dependency while simultaneously energizing local industries and generating employment. Sectors such as agro-processing, textiles, and pharmaceuticals are expanding rapidly, reinforcing Ethiopia’s pursuit of economic self-reliance.
He further observed that Ethiopia’s earlier growth trajectory depended heavily on agriculture and state-led infrastructure spending. In contrast, the current reforms seek to diversify and rebalance the economic base, ensuring a more resilient and broad-based path forward.
“These reforms are not merely about short-term stabilization; they are strategic investments in the country’s long-term economic sovereignty and resilience,” he told local news agency ENA. “By fostering competition, stimulating productivity, and deepening private-sector participation, Ethiopia is charting a more inclusive development model that delivers for all citizens.”
Looking ahead, Ambassador Girma expressed confidence that steadfast adherence to the reform program would cement Ethiopia’s standing as one of Africa’s most dynamic economies. “The road ahead will present challenges, but the foundation we are laying today is indispensable for achieving sustainable growth and economic independence,” he concluded.