Fiscus Public Finance Consultancy Describes Ethiopia’s Economic Reform Transformational

Addis Ababa, April 3, 2025 (ENA) ---- Ethiopia has taken transformational economic reform during the last five years, according to Fiscus International Public Finance consulting company.

In an exclusive interview with ENA, Fiscus International Public Finance consulting company director Andrew Lawson said the measures taken by the government have been transformational.

According to him, open economies that have free floating exchange rates tend to perform better in international markets; and Ethiopia needed just to choose the right time to move towards that.

“In the short term, there are always difficulties; but in the longer term, the reform will open up opportunities,” Lawson noted.

The director pointed out the reform will make it much easier for companies to import the products they need to create value added products here in Ethiopia, which is crucial to the country and the people.

For trade to work, he said trust is needed, “you need trust in the banking system, and you need trust that the exchange rate will be reasonably stable over time, which is what encourages investment.”

Therefore, the move towards a free floating exchange rate is absolutely crucial as the process has been managed very well.

Despite facing difficulties initially, the fact that the exchange rate is more competitive means that over time you can have gains, Lawson elaborated.

Exports are growing because the exchange rate is more competitive. So the trends are encouraging that exports were already increasing.

On the benefit of the recent debt restructuring agreement with official creditors, the director said it will improve the reserve position of the government very significantly; and it's also a very good marker that Ethiopia is a credible country to do business with.

“I think the debt restructuring agreement is very important, both in terms of reserves and the signal it gives about the creditworthiness of Ethiopia.”

Recall that Ethiopia had reached an agreement in principle with its official creditors to restructure 8.4 billion USD of international debt under the G20 Common Framework.

The agreement marks a significant milestone in the efforts to normalize the nation's relations with international partners and deliver economic stability to Ethiopia.