“Ethiopia’s Reform Is Tough, Takes Time—Please Be Patient”: IMF Chief Pleads

IMF Managing Director Kristalina Georgieva called on Ethiopians to exercise patience and rally behind the government’s economic reform efforts. Speaking at a press briefing held today, February 9, 2025, at the Ministry of Finance premise in Addis Ababa alongside Finance Minister Ahmed Shide, Georgieva emphasized the importance of unity in achieving the reforms’ goals.

“The reform Ethiopia has embraced is tough and takes time, but it will yield tremendous results,” said Georgieva. “I appeal to the public to be patient. Society must unite behind the reform. There is a lot of work to be done to make the economy more efficient. Please support the government in getting the job done.”

The IMF chief’s visit to Ethiopia, her first since 2018, comes amid the ongoing implementation of an IMF-supported reform program that began in July 2024. While both Georgieva and Ahmed painted an optimistic picture of the program’s progress, they provided contradictory responses to some pressing issues stemming from the reforms.
Georgieva claimed that inflation in Ethiopia has eased due to the reform program and that exports have seen significant growth.

However, she also acknowledged the complexity of addressing inflation, stating, “Bringing down inflation requires strong monetary and fiscal policies, expanding the economy’s productive capacity, increasing exports and foreign exchange revenue, and empowering the private sector.”

On Ethiopia’s ongoing negotiations for debt restructuring under the G20’s Common Framework, Georgieva remarked, “We are at the final stage of the debt restructuring process. This is a top priority in my engagement with Ethiopia’s creditors. Ethiopia was the first country to receive a debt standstill. Securing debt restructuring while continuing to service debt is a significant achievement.”

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Regarding tax measures introduced as part of the IMF program, Georgieva noted that Ethiopian authorities had identified significant untapped tax potential to support the national budget.

Finance Minister Ahmed Shide expressed his gratitude for Georgieva’s visit, saying, “Her Excellency’s visit strengthens our partnership.”

Georgieva also highlighted that Ethiopia’s GDP growth had already surpassed the IMF’s initial projections. However, some of her statements seemed at odds with the reality on the ground. For example, the IMF’s latest report urged the Ethiopian government to expand its safety net programs to accommodate the increasing number of people falling into poverty.