ADDIS ABABA: The International Monetary Fund (IMF) on Tuesday said government policies have been playing key role in registering ongoing economic growth and sustaining it in Ethiopia. IMF special envoy Kal Wajid made the remark after holding talks with Prime Minister Hailemariam Desalegn in Addis Ababa. The IMF envoy said this year's economic growth of Ethiopia is estimated to seven percent while the Ethiopian government says over 11 percent growth is expected. Policies and strategies set by the Ethiopian government are registering results, he said. The envoy, however, suggested the need to give due attention to the private sector, especially in facilitating supports such as bank loans. Prime Minister Hailemariam said his government would give the necessary attention to the private sector so that it can play its role in the development of the nation, particularly by advancing infrastructure. The IMF statement comes after the government cracked down recently on businesses in the country, putting more oversight onto companies in an effort it argued to bolster the country's economic progress and ensure better business practices. Ethiopian business leaders are not pleased with the government's continued push into the business sphere and their invasive policies, a number of businesspeople told Bikyanews.com in May in Addis Ababa. "We are really frustrated that the government's arms are still pushing into our activities and making it extremely difficult for us to make things work as the economy shows real promise," said Marketing Executive Anwar Mohammed. "Ethiopia is a strong country and our business is looking good so why do they still need to invade? It doesn't make sense," he added. Prime Minister Hailemariam Desalegn, who took over from Meles Zenawi after the latter's death nine months ago, said the telecoms, retail and banking industries in Africa's second-most populous country after Nigeria are still too weak to withstand external competition. "This sector [telecoms] is a cash cow, and that's why the private sector wants to get in there, and they're trying to tell us all kinds of stories . . . to get the license," he told the Financial Times. "We want to use that money for infrastructure development." For business leaders this is too much and they have called for an end to government entrenching themselves in the business community. Mohammed argues that for Ethiopia to become a true middle-income country in the near future, there "must be a way to separate the government from business. This is what other countries do and we must follow suit." Hailemariam's stance on privatization in the state-dominated economy is at odds with much of the rest of the continent, where private investment by African and global companies has transformed the quality and accessibility of services. It does, however, match that of his predecessor, who was heavily influenced by Marxism during his time as a guerrilla leader but came during his 21 years in power to see Taiwan and South Korea as economic models. He termed his ideal state "democratic developmentalism." BN
