Ethiopia: Economic Diplomacy Pivotal to Realize Ethiopia’s Macroeconomic Reform

ADDIS ABABA – Strengthening economic diplomacy is critical to realizing Ethiopia’s macroeconomic reform agendas, the Ministry of Foreign Affairs (MoFA) stated.

The Institute of Foreign Affairs (IFA) in collaboration with MoFA, hosted a high-level economic diplomacy conference yesterday under the theme: “Exploring New Avenues: Economic Diplomacy as the Mainstay of Ethiopian Foreign Policy.”

In his keynote address, MoFA’s Political and Economic Affairs State Minister Ambassador Hadera Abera, emphasized that strong economic diplomacy is essential to advancing Ethiopia’s macroeconomic and Home-Grown Economic Reform (HGER) agendas. In addition to utilizing local capacities and opportunities, effectively leveraging foreign resources is vital for fostering reform efforts.

The conference plays a key role in enhancing collaboration among stakeholders. Embassies, missions, diplomats, and other entities have a crucial role in promoting economic diplomacy, he noted.

Furthermore, he stressed the importance of HGER’s favorable environment for foreign direct investment (FDI) and the need for sector-wide improvements to strengthen the reform, as economic diplomacy remains a pillar of Ethiopia’s foreign policy.

Ethiopian Investment Commission (EIC) Commissioner Zeleke Temesgen (PhD) stated that implementing macroeconomic reforms has helped manage and increase FDI in Ethiopia. Diplomatic missions play a vital role in showcasing the country’s investment opportunities globally, but coordinated efforts are needed to enhance this promotion.

Attracting more FDI requires stakeholder collaboration and further promotional efforts to establish sustainable investments and strong economic partnerships. The new EIC strategy, currently in its final stage, is expected to significantly boost FDI inflows.

IFA Executive Director Jafar Bedru highlighted that Ethiopia has embarked on transformative economic reforms following national policy shifts.

BY TSEGAYE TILAHUN

THE ETHIOPIAN HERALD WEDNESDAY 11 JUNE 2025