Ethiopia - Inclusive Growth Development Policy Operation : Chair Summary

Overview & Synopsis

The Executive Directors approved two grants and a credit to the Federal Democratic Republic of Ethiopia for the Inclusive Growth Development Policy Operation and broadly endorsed reforms to strengthen financial intermediation, fiscal sustainability, economic management, private sector investment, social inclusion, and statistical systems, noting progress in reducing foreign exchange distortions, mobilizing revenue, and easing financial repression. They emphasized maintaining macroeconomic discipline in a difficult external environment, sustaining exchange rate and financial sector reforms, completing debt treatment, ensuring strong Government ownership, building institutional capacity, and promoting transparency and reliable data; encouraged collaboration between the World Bank and the International Monetary Fund IMF and coordinated support from development partners; welcomed fuel procurement and pricing reforms with careful implementation and protection for vulnerable households; and supported market-opening measures in logistics, energy, water, agricultural inputs, agribusiness, competition policy, and trade finance that should lower costs, improve service reliability, catalyze private investment and jobs, and be complemented by technical assistance and investment operations to overcome bottlenecks in customs administration, logistics performance, and energy access.