PM Addresses Deep Reform Critics

In the wake of the political and economical uncertainty that has rocked the country for over a year and the state of emergency that still hold the population in a state of limbo, Prime Minister Hailemariam seemed to be trying to send the message that it is business as usual for the Ethiopian government.

“The Prime Minister is supposed to give a press conference every two months,” Negeri Lencho (PhD), head of the government communications office told Fortune. “However, because of the various issues around the country it hasn’t been successful for the last few months. It will continue as normal now.”

Since he came to power in 2012, and was subsequently reelected in 2015, Hailemariam has tried to carve out a name for himself outside of the shadow of his much arguably venerated predecessor, Meles Zenawi. During his terms, the country’s economy has grown significantly, and policies encouraging foreign direct investment (FDI) in various sectors such as agriculture and horticulture, and allowing foreign clothing and textile manufacturers to set up shop in the country’s newly build industrial parks.

However, those prized investments became the focus of the people’s rage during the worst of the unrest that rocked large parts of the country for months, and especially areas of Oromia and Amhara regional state.

The subsequent state of emergency fueled the government to initiate a program of ‘deep reform’, to root out the elements at every administrative level that contributed to the dissatisfaction that led to the unrest.

While some do praise him for trying to push the ruling party and the government in a new direction, others find his efforts underwhelming.

“Deep reform can be good, but what they are doing is reform in name only,” leading opposition figure Lidetu Ayalew commented to Fortune. “The ruling party is doing what they did before, with nothing new added.”

However, the deep reform program is doing what it was intended to do, according to Hailemariam.

“The ruling party is one that has come this far by self reflecting and self correcting,” he commented at the press conference. “We have identified the issues and challenges that have got in the way of effective leadership, and are working to correct them.”

Hailemariam Desalegn, Prime Minister of Ethiopia gave his first press conference in almost two years on January 9 2017. Less than a week later, he also appeared before Parliament to answer pre-submitted questions from the legislative body.

Hailemariam took the opportunity to answer questions on the issues that have been plaguing the country and led in part to the declaration of the state of emergency. The economy, the state of emergency, and the ever-present shortage of foreign exchange were among the hot topics of both the PM’s appearances.

Accountability and transparency are the key tenets of the deep reform scheme, according to Hailemariam’s statement before Parliament. The issues of outright corruption and officials who try to attain higher posts for the benefits of power are among the issues that government has faced in trying to deep reform.

Along with comments about deep reform came questions about the state of emergency, and what it might mean for the economy.

“The impact of the state of emergency on the overall economy is something we will see in the coming years,” he said to reporters. “There have been insignificant shocks in the service and tourism sectors, however.”

However, according to long time tourism sector experts, tourism was one of the most affected sectors, especially following the travel bans that followed the state of emergency. In late 2016, the Hotel Owners’ Association and other actors in the hospitality industry submitted a letter to the Prime Minister’s Office asking for support to assure tourists that the country was safe to visit.

Ethiopia earned 872 million dollars from more than 233,032 tourists in the first quarter of the current fiscal year, seven million Birr lower than the preceding fiscal year.

The answer to the same issue before Parliament painted a slightly rosier picture.

“One of the results of the state of emergency was to help sustain our economy at the point of growth where it was,” Hailemariam commented.

The economy was another key point in both his appearance in Parliament and his press conference. The foreign exchange shortage has been haunting the Ethiopian economy for years, making it difficult for importers and other investors to access the necessary funds to conduct their businesses.

“The foreign exchange shortage will continue for another 15-20 years,” he commented answering questions from parliamentarians. “But this is a normal state for an economy that is growing like Ethiopia’s.”

However, it was not all a rosy picture. One of the more visible failures of government planning since Hailemariam’s last press conference was the plans to reduce reliance on sugar imports by building 10 new sugar factories. However, plans for two of the factories were discarded. The rest of the factories are running over the time allotted to them.

Although the government’s program has been business as usual, there is still a long way to go before ‘deep reform’ is achieved, according to opposition leaders.

“There has been development in sectors like infrastructure and healthcare; but politically, we are going back to where we started from,” commented Lidetu.


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