Prime Minister Abiy Ahmed (PhD) alighted in the French capital last week, ushering his high-level entourage, Mamo Mihretu, the central bank governor, and Ahmed Shide, his finance minister, into the "New Global Financing Pact" talks. He was met by the world's financial elite, including Ajay Banga, the new chieftain of the World Bank Group; Melinda Gates, the American philanthropist; Janet Yellen, the US Treasury's guardian; and Malfada Duarte, the helmswoman of the Green Climate Fund.
During a spirited panel discussion on the subject of multilateral development financing, Abiy delivered a lucid diagnosis of the daunting crisis cocktail beleaguering the African continent, a mélange of climate financing shortfalls, weighty debt burdens, and potent political instability. Abiy proposed a remedy of sorts, recommending that prior financing promises be upheld, more concessional loans and grants be awarded, and restructuring of IMF`s special drawing rights (SDRs) be instituted.
"Private and public debt has scaled new altitudes," the Prime Minister admonished the gathered financial titans.
The Prime Minister's plea for more favourable financial conditions, in light of Ethiopia's pressing debt burden, is a vivid illustration of the broader economic plight faced by many developing countries, particularly in Africa. The fiscal plan set forth by his Finance Minister to the Ethiopian parliament demonstrates the gravity of this issue. The budget bill proposes a 159 billion Br allocation to debt repayment next year, which only grazes the surface of the looming 27 billion dollars debt Ethiopia`s economy is shouldering. It appears that, despite all the rhetoric, the harsh reality of the country's economic straits cannot be ignored.
PUBLISHED ON
Jun 24,2023 [ VOL
24 , NO
1208]
Commentaries | Mar 25,2023
Viewpoints | Jun 03,2023
Editorial | Apr 04,2020
Editorial | Oct 05,2024
Viewpoints | Sep 03,2022
My Opinion | Oct 21,2023
Commentaries | Oct 12,2019
My Opinion | Jan 01,2022
Editorial | Nov 04,2023
Editorial | Sep 04,2021
Dec 22 , 2024 . By TIZITA SHEWAFERAW
Charged with transforming colossal state-owned enterprises into modern and competitiv...
Aug 18 , 2024 . By AKSAH ITALO
Although predictable Yonas Zerihun's job in the ride-hailing service is not immune to...
Jul 28 , 2024 . By TIZITA SHEWAFERAW
Unhabitual, perhaps too many, Samuel Gebreyohannes, 38, used to occasionally enjoy a couple of beers at breakfast. However, he recently swit...
Jul 13 , 2024 . By AKSAH ITALO
Investors who rely on tractors, trucks, and field vehicles for commuting, transporting commodities, and f...
Jul 26 , 2025
Teaching hospitals everywhere juggle three jobs at once: teaching, curing, and discov...
Jul 19 , 2025
Parliament is no stranger to frantic bursts of productivity. Even so, the vote last w...
Jul 12 , 2025
Political leaders and their policy advisors often promise great leaps forward, yet th...
Jul 5 , 2025
Six years ago, Ethiopia was the darling of international liberal commentators. A year...
Loading your updates...