IMF Executive Directors Indicate Commitment to Support Ethiopia’s Reform Agenda

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Addis Ababa October 16/2022/ENA/ IMF Executive Directors have commended Ethiopia’s ambitious economic and monetary policy reforms indicating their commitment to support the reform agenda through an IMF program upon further engagement.

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At the sideline of the IMF and World Bank Annual Meetings, the Ethiopian Delegation led by the Minister of Finance Ahmed Shide held constructive meetings with the IMF Executive Directors and advisors for China, France, Germany, United Kingdom and Italy.

The discussion focused on IMF’s critical development partnership, in particular in times of crisis when the needs are even greater and a sustained support on the development front is essential to avoid setbacks caused by the overlapping shocks that Ethiopia is currently facing.

The Executive Directors acknowledged Ethiopia’s resilience amid the overlapping shocks it is currently facing.

The Directors have also commended the government’s ambitious economic and monetary policy reforms indicating their commitment to support the reform agenda through an IMF program upon further engagement.

Minister of Finance Ahmed Shide briefed the Executive Directors on Ethiopia’s current political and economic affairs, progress made on Ethiopia’s homegrown economic reform agenda.

He also explained about the ambitious plan for the next phase of transformative reforms needed to address present challenges, push growth through private sector led development, as well as sustain development gains of recent years.

The Minister emphasized the criticality and urgency of IMF’s support in view of the millions of people across the country who are being hit by the severe drought, high inflation, conflict, rising commodity prices, and other ongoing challenges.

Ahmed acknowledged the IMF’s recent visit to Ethiopia and the successful discussions around the policy reform areas that will address macro imbalances, tackle the forex exchange rate issues, tame inflation, and manage debt issues.

He underlined these discussions are key steps towards agreeing on the framework of an IMF program that could support ongoing economic recovery efforts and strengthen macroeconomic stability.

The Minister asked the Executive Directors’ support to Ethiopia’s request to access IMF’s new Food Shocks Window to dampen the food insecure resulting from the severe drought, displacement, and livelihood losses.

He highlighted that, while this assistance would directly support the poorest and most vulnerable communities across the country, the government’s ultimate interest remains in a comprehensive and ambitious Fund-supported program.

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