Ethiopia’s ambitious reform drive under Prime Minister Abiy Ahmed is facing growing scrutiny as the country navigates inflation and ongoing security challenges.

Since taking office in 2018, Abiy has set out to reshape Ethiopia’s economy, opening up the once-closed banking and telecoms sectors and moving toward a more flexible exchange rate. The reforms were meant to attract investment and spur private enterprise in one of Africa’s fastest-growing economies.

While many have welcomed these bold steps, others caution that deep-seated structural issues could limit their impact. Rising prices and regional instability continue to weigh heavily on households and businesses, threatening to slow the pace of change.

Political economist Progress Palmsprings believes Ethiopia stands at a crossroads.

“The liberalisation push is significant, but economic progress depends on stability,” he noted. “Without curbing inflation and addressing the security situation, the benefits of these reforms may not reach ordinary citizens.”

–ChannelAfrica–