In late July, Ethiopian Prime Minister Abiy Ahmed introduced a new plan called the Homegrown Economic Reform Program (HGER 2.0). This program aims to fix some big problems in the country’s economy, like high debt, rising prices (inflation), joblessness, and a struggling currency. The government wants to create a more stable and competitive economy, where the foreign exchange market works properly.
During a speech to the House of People’s Representatives, Prime Minister Abiy made some startling claims. He accused foreign embassies in Ethiopia of engaging in illegal currency operations on the black market. He suggested that these embassies are “robbing” Ethiopia of its resources by participating in shady currency deals that hurt the country’s economy. According to him, these actions are making it harder for Ethiopia to get the foreign currency it needs to stabilize its economy.
Abiy’s comments raised eyebrows because they suggest a conflict between Ethiopia and some foreign countries. He expressed frustration over the illegal currency exchanges that are disrupting the government’s efforts to improve the economic situation. He emphasized that while Ethiopia wants to maintain good relationships with other countries, those relationships must be built on respect for Ethiopian laws.
So far, the government has been patient, but Abiy warned that if foreign embassies continue to operate on the black market, action will be taken. The prime minister’s strong words signal that the Ethiopian government is serious about protecting its economy and will not tolerate any actions that threaten its stability.
The Homegrown Economic Reform Program includes plans to change the way the exchange rate works. Instead of a fixed rate, the government wants to move towards a system where the currency’s value is determined by the market. While banks and licensed currency exchange offices are starting to offer official rates, the black market remains a big challenge.
With these reforms, Ethiopia has already managed to gather over $27 billion, showing that the government’s efforts are starting to pay off. However, the battle against black market currency operations is just beginning, and Prime Minister Abiy Ahmed is determined to fight for the future of Ethiopia’s economy. The coming months will reveal whether these bold measures will lead to lasting change or if external pressures will continue to threaten the country’s stability.
