Ethiopia’s Parliament Reappoints Abiy Ahmed as Prime Minister

Ethiopia’s parliament has reappointed Abiy Ahmed as prime minister for another five-year term, giving him a fresh mandate as the government prepares to continue an economic reform programme that has reshaped foreign-exchange policy, debt management and the role of the private sector.

The House of Peoples’ Representatives approved Abiy’s reappointment on October 5, following the formation of the newly elected parliament after the June general election. He subsequently took the constitutional oath of office.

The new term begins with the government facing a number of economic priorities, including maintaining macroeconomic stability, addressing foreign-exchange constraints, managing external debt and attracting investment.

Abiy’s administration has introduced significant changes to Ethiopia’s economic policy in recent years, including a market-based foreign-exchange regime and measures intended to increase private-sector participation in the economy.

The government has also been negotiating the restructuring of Ethiopia’s external debt, while seeking to improve access to foreign currency and strengthen the country’s capacity to generate export earnings.

The new parliament is dominated by the ruling Prosperity Party, which secured 438 seats in the 547-member House of Peoples’ Representatives in the June election. Voting was not held in every constituency, including parts of Tigray and areas affected by insecurity.

Abiy’s new term also comes as Ethiopia continues to pursue greater access to regional and international markets. The government has repeatedly identified securing reliable access to the sea as an economic and strategic priority, alongside efforts to expand trade and investment.

With the executive and legislature entering new five-year terms, attention will now turn to the composition of Abiy’s cabinet and the policies his administration adopts on foreign exchange, public finance, debt, investment and trade.

Source: FSX Business News