Pres. Taye stresses need to expand financial services, champion digital transformation, and foster inclusivity for sustainable growth

Addis Ababa, May 15, 2025 (FMC) — President Taye Atske-Selassie today underscored the critical need for Ethiopia’s financial sector to broaden its client base and geographic reach, lead the nation’s digital transformation, and promote financial inclusivity to sustain growth.

Addressing the Ethiopia Finance Forum 2025 at the Science Museum in Addis Ababa, President Taye highlighted three key recommendations to “sustain the momentum and maximize our success.”

First, he urged that “the financial sector must dramatically expand its size and scope within the economy by pursuing two intertwined imperatives. These are to aggressively broaden its client-based and geographic reach while transforming a customer-centered ecosystem by raising service standards.”

Second, the President stressed that “we all have to be the leaders of Ethiopia’s digital transformation, and position the financial ecosystem at the backbone of the country’s progress.” He pointed out that “digital Ethiopia is becoming a reality in all walks of life, from telecom to shopping to entertainment and much more.”

Third, to ensure sustainable sector growth, he emphasized that “financial inclusivity and investing in human capital is imperative.” He called on financial institutions to “launch talent incubators encompassing sector-wide upscaling programs, tap Ethiopian diaspora expertise, and foster innovation labs,” citing the many innovations displayed earlier at the forum’s exhibition that aim “to reach out to the largest segment of our community and society.”

Reflecting on the economic context, President Taye noted that the previous state-led system “didn’t present it for the development of a modern financial sector that ought to address the urgent needs of private business utilizing innovation and fast-tracking services to the consumer.” This created “a significant strain on the macroeconomy, forcing the country to depend heavily on large-scale borrowing to fund public investment,” resulting in “an enormous burden in debt sustainability and debt servicing.”

He further explained that the government launched a major economic reform program to address “long-standing issues such as high inflation, mounting debts, bad loan portfolios at state banks, and an acute foreign exchange crisis.” The reform aims “not only to correct these imbalances, but more critically, to prompt a more open, competitive, and private sector-led growth model that attracts foreign direct investment.”

President Taye detailed that the reform has been executed “with meticulous planning, seamless coordination, and proper sequencing,” with “a close partnership between pertinent ministries and the National Bank of Ethiopia.” Mitigation measures were carefully embedded throughout the process.

He also pointed to the significant financial support received, noting “the support provided by the International Monetary Fund is the largest ever concessional funding in IMF history,” and that “the World Bank has also approved one of the largest GOP loans in recent years, providing critical budget support to sustain the reform momentum.” This “unprecedented financial commitment… is a testimony to Ethiopia’s reform trajectory.”

Early encouraging results “on the fiscal and revenue side is a proof that the reform blueprint is feasible and achievable,” though the President cautioned that “the journey towards fully achieving our reform goals is arduous, requiring considerable efforts and discipline, and yet attainable.”

The Ethiopia Finance Forum, organized by the National Bank of Ethiopia in collaboration with Ethio Telecom, gathers policymakers, financial institutions, development partners, private sector stakeholders, and the diaspora community to discuss Ethiopia’s financial sector development and investment prospects. The two-day event continues through May 16, 2025.