Macroeconomic reforms are poised to be a pivotal force in driving Ethiopia's economic growth, according to experts who participated in a recent discussion hosted by EBC FM Addis 97.1.

The forum centred on the implementation and potential impact of ongoing reforms within the nation's economic landscape.

Professor Desta Mebratu, a sustainable development researcher and environmental economist from Stellenbosch University in South Africa, emphasised the necessity of consistently focusing on people-centric projects to ensure the enduring success of economic reforms.

He argued that lasting change requires addressing the root causes of economic challenges through initiatives that directly benefit the populace.

Aschalew Tamiru, CEO of 27 Marketing and Branding, underscored the critical role of these reforms in curbing the black market and bolstering foreign exchange reserves. By creating a more transparent and regulated economic environment, he believes Ethiopia can attract greater investment and improve its overall financial stability.

The experts collectively agreed that embarking on a comprehensive macroeconomic reform process presents a viable path toward stimulating private sector growth, rectifying price instability, and balancing import and export activities to foster a more competitive national economy. This holistic approach is seen as essential for long-term sustainable development.

However, economic expert and lecturer Konstantinos Berhe (PhD) cautioned against expecting immediate results.

He noted that significant macroeconomic shifts typically require more than a year to fully materialise.

He specifically cited recent changes in financial policy, including the establishment of a capital market, the authorisation for foreign banks to operate within Ethiopia, and the allowance for foreign companies to engage in business after a 53-year hiatus, as crucial pillars of the market economy. 

Kostantinos stressed that these developments represent a significant step forward, though their transformative impact will unfold over the long term.

He concluded by highlighting the need to combat illegal trade and money laundering to fully realise the benefits of the reforms.