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News: IMF indicates progress in talks on assisting Ethiopia’s economic program

Finance Minister Ahmed Shide (middle) and Governor of the National Bank of Ethiopia, Mamo Mihretu, met with IMF Managing Director Kristalina Georgieva during the joint annual meeting in Marrakesh, Morocco (Photo: Kristalina Georgieva/X)

Addis Abeba – Following a mission led by Alvaro Piris, the International Monetary Fund (IMF) has announced significant progress in discussions regarding potential support for the Ethiopian authorities’ economic program. Piris and his team visited Addis Abeba from 25 September to 03 October, 2023, engaging in crucial talks focused on Ethiopia’s request for IMF assistance with its reform program.

According to the statement released by the organization, the IMF’s team has noted important measures taken by Ethiopia to reduce inflation and stabilize the economy. These measures include significant fiscal and monetary tightening, which have laid a strong foundation for the success of the domestically-led economic reform agenda. The IMF further stated that discussions will continue in the coming weeks to reach an agreement on a comprehensive set of reforms for the requested program.

Since 2019, the Ethiopian government has been implementing the first phase of its homegrown economic reform program, aimed at addressing macroeconomic imbalances and establishing a solid basis for long-lasting and inclusive economic growth. This reform program has received substantial financial backing of nearly $3 billion from the IMF.

The IMF’s recent announcement followed a meeting between the Ethiopian delegation, led by Finance Minister Ahmed Shide and Governor of the National Bank of Ethiopia Mamo Mihretu, and IMF Managing Director Kristalina Georgieva. The meeting took place on the sidelines of the joint annual meeting of the World Bank and the IMF in Marrakesh, Morocco. The discussions primarily focused on how the IMF can provide support for Ethiopia’s homegrown economic reform program.

In June 2023, while addressing members of parliament, Prime Minister Abiy Ahmed outlined his administration’s plans to proceed with the second phase of the homegrown economic reform program. The prime minister emphasized that the main objective of this program is to revive an economy that has been impacted by various conflicts, both domestically and internationally. AS

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