As talks progress, Ethiopians debate whether joining the WTO is a good idea

 

After eight years of stalemate, Ethiopia resumed its World Trade Organisation (WTO) accession process in January.

Ethiopia’s transition to liberalism is fairly recent, having started in the 1990s, and the country’s launch of this process in 2003 is fully in line with this trend.

While the previous government was willing to negotiate on trade in goods, it was very reluctant to open up the services sector to privatisation and foreign investment. This stalled the negotiations. The current administration is more enthusiastic about implementing a more liberal economic policy.

Ethiopia was the fastest-growing economy in 2017 according to the World Bank, yet its debt is rising sharply, from more than 47% of GDP in 2014 to 61% in 2018. “We have borrowed significantly for infrastructure projects that have really not achieved the expected results,” Ethiopia’s finance minister Eyob Tekalign told parliament in 2019.

The development model implemented by former prime minister Meles Zenawi was supposed to pay for the debt through export revenue. It is a difficult plan to implement in a continuing period of political turmoil. It was in this context that Prime Minister Abiy Ahmed came to power in 2018.

Reforms needed

Under constant pressure from the World Bank and the IMF, the Abiy administration has adopted a radical reform to move to a market economy. Included in the new policy is the privatisation of key sectors such as telecoms with Ethio Telecom, air transport with Ethiopian Airlines, banking and logistics. These reforms have enabled it to resume negotiations with the WTO.

READ MORE Ethiopia prepares for partial privatisation of Ethio Telecom

By adhering to a regime of binding rules and thus guaranteeing reform, Ethiopia wishes to encourage foreign investment. At the local level, the government says that WTO membership will provide the private sector with better market access.


Source: The Africa Report

Comments

Post a Comment

Popular posts from this blog

Suspension of US aid to Ethiopia is yet another example of Trump’s disregard for Africa

Image
America’s Department of State recently suspended   $130 million worth of aid to Ethiopia because of “a lack of progress” on negotiations pertaining to the construction of the Grand Ethiopian Renaissance Dam on the River Nile. According to state department officials, the decision to cut aid came as a result of a direct “ guidance ” from President Donald Trump. Estimates  show that almost half of Ethiopia’s budget is linked to foreign aid. The country depends on  economic assistance  to support its infrastructure projects, health care and education expansion efforts, and security sector reforms. By suspending some aid, the United States has reopened the debate on whether developing countries should depend on foreign aid to realise their economic goals. The decision to suspend aid to Ethiopia comes after  almost 10 years of regional and international efforts  to mediate the dam dispute between Egypt and Ethiopia. Almost  60% of Ethiopians  do not have access to electricity. The renaissanc
Read more

The 9 Most Beautiful Towns and Cities in Africa

Image
The African continent is not only about impressive animals, stunning deserts and beautiful savannahs. It is also home to astonishing cities and towns that are rich in history and culture. Here are our top picks. Cape Town, South Africa Cape Town is a vibrant and colorful city with stunning beaches, beautiful mountains and some of the best vineyards in Africa. Taking the cable car ride to  the top of Table Mountain  at sunrise or sunset to take in the beautiful views is a must. With all the sophistication and activities that can be found in the city, this seaside playground certainly has enough to offer to everyone. Essaouira, Morocco With an ancient medina and lustrous fortifications that date back to the 18th century, miles of stunning beaches, and a charming harbour and fish market to stroll around,  Essaouira is one the most beautiful towns to visit  on the continent. It guarantees moments of peace and tranquility far away from the mayhem of bigger cities and the charmless all
Read more

UAE and Ethiopia discuss more avenues to enhance cooperation

Image
  Mohamed Saif Al Suwaidi, Director General of Abu Dhabi Fund for Development (ADFD), received at the Fund’s headquarters Suleiman Dedefo, Ambassador of Ethiopia to the UAE. Senior officials from both sides were present at the meeting. The two sides discussed bilateral relations and means of developing them, especially through the Fund’s support to the Ethiopian government to achieve sustainable development goals by financing development and investment projects. Al Suwaidi emphasised the Fund’s commitment to supporting Ethiopia in its developmental efforts, noting that the visit presented an opportunity to discuss issues of common interest. The meeting was part of the continuous coordination, particularly over the Fund’s support to the Ethiopian government to achieve its economic objectives. Dedefo expressed appreciation for the UAE, as well as ADFD, for supporting his country in its effort to achieve sustainable developmental goals and economic priorities. He pointed out that the
Read more