Ethiopia has been scaling up economic diplomacy after launching a Home-Grown Economic Reform, says the country’s Ministry of Foreign Affairs.
The launch of the extensive economic reform aimed at opening up the economy to the external private sector and connecting it with the global economy, Foreign Affairs State Minister, Amb. Mesganu Arga told ENA.
“As part of the Homegrown Economic Reform Program, Ethiopia is now liberalizing and connecting our economy with the global economy.”
The Ethiopian Investment Board has recently issued a new directive outlining that foreign investors can engage in specific trade investments and in the previously reserved businesses including export, import, wholesale and retail trade investments.
According to the state minister, these economic reforms and initiatives have a paramount importance to opening up the economy and linking it with regional markets such as the African Continental Free Trade Area (AfCFTA.)
He added that Ethiopia is also gearing up to be part of the World Trade Organization (WTO). The process being expedited is imperative to Ethiopia in order to access global trade opportunities.
The Ethiopian government has been currently implementing a new economic reform blueprint, dubbed Homegrown Economic Reform, with a major aspiration to unlock the country's development potentials.
Following the reform program, Mesganu noted that promoting economic opportunities and investment potential has become at the heart of Ethiopia’s diplomacy.
“We have realized that investment promotion and confidence building for global economic activities are pretty much imperative to our diplomacy. In this regard, attracting foreign direct investment and connecting our economy with the global market are important steps carried out.”
To realize these economic endeavors, trade and investment promotion activities have been conducted by foreign missions, consulates and diplomats, it was learned.
Looking for additional markets globally, attracting more investments, as well as promoting domestic tourism potentials are at the epicenter of the economic diplomacy.
The state minster pointed out that Ethiopia’s foreign policy is anchored on strengthening partnership with neighboring countries, and the policy essentially prioritizes economic integration to achieve joint regional development.
Further elaborating on the country's economy, Mesganu said that it has shown significant resilience amidst global challenges.
“Our GDP has redoubled and our economy has registered a fast-growing record. Thus, this has been encouraging us to reinforce the economic foreign policy missions in the region and beyond. We are really working hard as a country to bring about development and achieve growth internally and also sharing achievement to the neighboring countries.”
Moreover, he reaffirmed the commitment of Ethiopia to connecting with its neighboring nations in terms of infrastructure as well as sharing its development ambition and integration agenda through road and railway.
For the state minister, those agendas are quite important and they are the main focus for our foreign policy since the economic dividend is for mutual benefits.
For the economic ambition of the country to come to fruition, Mesganu underlined that Ethiopia always seeks jointly and collaboratively working with the global community and with the neighboring countries.
In this respect, he explained that Ethiopia is committed to the securitization, joint development, and economic integration of the region.
“So our agenda is peace, economic development, integration, trade promotion and large infrastructure connectivity between the neighboring countries,” the state minister stressed.
Furthermore, Mesganu called on the neighboring countries to genuinely understand Ethiopia's quest for access to sea.
“Our right to have seaport access is based on rational ground,” he noted, adding that there will also be opportunities for neighboring countries in the expanding economic activity and the large economy of Ethiopia.