The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, is scheduled to visit Ethiopia on February 8 and 9 as the nation progresses with its comprehensive economic reforms.
Ethiopia, home to approximately 120 million residents, has implemented various liberalization initiatives in recent months to enhance investment opportunities. Although the economy is predominantly state-controlled, the country has recently inaugurated its first stock exchange and permitted its currency, the birr, to float freely against the dollar since July 2024.
The previous fixed currency peg had become untenable, leading to a depletion of Ethiopia’s financial reserves. The IMF stipulated the currency’s transition to a floating rate as a condition for accessing a $3.4 billion aid package.
The Managing Director of the International Monetary Fund, Kristalina Georgieva, is set to visit Ethiopia for two days, marking her inaugural trip to the country since assuming her position in 2019. During this visit, she will meet with Prime Minister Abiy Ahmed and various high-ranking officials to discuss the nation’s economic outlook, key policy initiatives, and the current reform efforts, as indicated by the finance ministry.
In October, the International Monetary Fund praised Ethiopia’s economic reforms, indicating that they were “progressing well” and had resulted in “enhanced availability of foreign currency.”
Ethiopia, the second most populous country in Africa, witnessed significant economic growth from 2004 to 2019, often exceeding 10 percent annually.
Since assuming office in 2018, Prime Minister Abiy Ahmed has been a strong proponent of economic reform. Nevertheless, advancements have been hindered by the Covid-19 pandemic, the conflict in Ukraine, and a devastating civil war in the northern Tigray region, which has reportedly caused losses estimated at around $20 billion.
Inflation, which reached a peak of 33.9 percent in 2022, decreased to 23.9 percent last year and is anticipated to further decline to 13.3 percent by 2026. The GDP growth rate was recorded at 6.1 percent in 2024, with IMF projections suggesting an increase to 6.5 percent for the current year.
Source –news central
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