Ethiopia continues to work towards improving ease of doing business in the country as part of wider economic reforms of the present Abiy Ahmed led government. The move is to help create a conducive environment for businesses to start up and to also have access to finance.
The result of a good business atmosphere and finance the PM said will be a “means of tackling structural problem of unemployment.” Ethiopia, Africa’s second most populous nation suffers a high unemployment rate.He also stressed that in addressing access to finance problems faced by many startups, a revision of lending practices which allows putting up movable assets as collateral is being put in place.Ethiopia since the present government took over in April 2018 has been undergoing a raft of reforms.
Under the economic reform sector, the prime minister has reiterated his resolve to open up a hitherto government-controlled economic space. Since last year, government disclosed that it was planning to open up state monopoly companies to private investors. The Central Bank also revised some restrictive measures on loans and the general financial system.
The key indicators in improving ease of doing business in Ethiopia’s are focused on:
1. Starting a business
2. Construction permits
3. Registering property
4. Getting electricity
5. Getting credit
6. Paying taxes
7. Trading across borders
8. Resolving insolvency
9. Protecting minority rights
10. Enforcing contracts
Prime Minister, Abiy Ahmed focused on cutting bureaucratic bottlenecks in these processes will enable focus investment areas of electricity, mining, housing, manufacturing and Small and Medium Enterprises to be effective.