Press Release No. 12/67

Press Release: IMF Deputy Managing Director Shinohara Visits Ethiopia and Discusses Economic Challenges with the Authorities

March 5, 2012

Deputy Managing Director of the International Monetary Fund (IMF), Naoyuki Shinohara, visited Ethiopia during March 1-3, 2012. Mr. Shinohara issued the following statement at the conclusion of the visit:

"I would like to thank Prime Minister Meles Zenawi for his hospitality and our fruitful discussion. I also had the privilege to meet the Minister of Finance and Economic Development Sufian Ahmed, the Governor of National Bank of Ethiopia Teklewold Atnafu, and other senior officials. In all our discussions, I was impressed by the authorities' strong determination to transform Ethiopia into a vibrant middle income economy.

“I am happy to say that the authorities welcomed IMF engagement in support of their efforts to address current macroeconomic challenges and implement economic reforms and poverty reduction programs in Ethiopia. There has been significant progress over the past 10 years towards putting in place sound and sustainable economic policies to deliver robust growth. Most recently, the Ethiopian authorities have implemented a base money nominal anchor and important tax administration reforms. These measures have started bearing fruit as inflation is progressively declining and fiscal revenues are on the rise.

“But more needs to be done. Ethiopia still faces significant challenges, in particular containing still-high inflation, raising savings, and meeting enormous investment needs. I encourage the authorities to continue the reforms, particularly to mobilize the resources and savings needed to achieve high investment and sustainable growth, and to reduce poverty.

“The IMF is committed more than ever to assist the Ethiopian government in the best possible way to address these challenges and meet their important development goals.”