Agenda |
Ethiopia’s policymakers, international financial institutions and the public agree that it is far better to mobilise one's resources than borrow money from international creditors and development partners. The government has tried to aggressively collect taxes from businesses and individuals over the decade. It even played the love-of-country card.
The results have been less than impressive. The tax-to-GDP ratio stayed well below the 15pc mark all throughout the decade. The government instead supplemented its coffers through loans, grants, services and fees and revenues from state-owned enterprises.
It was evident why this was the case. There was never much to tax to begin with. The private sector was too small. Businesses were never given enough chance to reinvest and grow themselves before the state started to make money from them, while the business environment was hostile to them. But with recent economic reforms by the administration of Prime Minister Abiy Ahmed (PhD), his administration seems to have at last gotten the memo that it is much more advantageous to take a small piece from a large pie than the other way around.
PUBLISHED ON
Jan 05,2020 [ VOL
20 , NO
1028]
Agenda |
Editorial | Jun 28,2025
Viewpoints | Jan 15,2022
Radar | Jan 14,2023
Viewpoints | Aug 06,2022
View From Arada | May 23,2021
Fortune News | Jul 09,2022
News Analysis | Jan 05,2020
Fortune News | Aug 06,2022
Verbatim | Aug 01,2020
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...
Oct 4 , 2025
Eyob Tekalegn (PhD) had been in the Governor's chair for only weeks when, on Septembe...
Sep 27 , 2025
Four years into an experiment with “shock therapy” in education, the national moo...
Sep 20 , 2025
Getachew Reda's return to the national stage was always going to stir attention. Once...
Sep 13 , 2025
At its launch in Nairobi two years ago, the Africa Climate Summit was billed as the f...
Loading your updates...