Borrowing from Mum

Ethiopia-IMF currency compromise is key to limiting inflation, economist says

By David Whitehouse

Reserved for subscribers

Posted on May 3, 2023 04:00

© Ethiopian Prime Minister Abiy Ahmed, addresses the African Union in Addis Ababa, February 18, 2023. REUTERS — Ethiopian Prime Minister Abiy Ahmed, addresses the African Union in Addis Ababa, February 18, 2023. REUTERS

Ethiopian Prime Minister Abiy Ahmed said in December 2019 that borrowing from the IMF is like borrowing from your mother.

A lot has happened since then, in the shape of Covid-19, a civil war in Tigray, and Russia’s invasion of Ukraine. This time around, mother is looking for some lifestyle changes, notably in Ethiopia’s exchange-rate system.

There's more to this story

Get unlimited access to our exclusive journalism and features today. Our award-winning team of correspondents and editors report from over 54 African countries, from Cape Town to Cairo, from Abidjan to Abuja to Addis Ababa. Africa. Unlocked.

Subscribe Now

cancel anytime

Already a a subscriber Sign In

More Business

The traveller’s experience is very different, depending on which side of security checks you happen to be on. © GettyImages

ready for take off

Congo-Brazzaville, Kenya, Senegal…Africa’s airports must modernise Online check-in, priority queues, lounges, connectivity issues…to reduce passenger waiting times and grow, the continent’s airports are slowly moderni...

jad20230526-eco-cameroun-telecoms-camtel-photo2-1256×628-1685118985 © A Camtel shop in Yaoundé in 2023… Maboup

failed networks

Camtel, Orange, MTN, Nexttel… Cameroon’s telecoms watchdog doles out fines For the first time since 2019, the regulatory agency has imposed a fine – totalling $9.7m – on Cameroon’s three main telecoms providers.

© Worker cleaning Kenya’s court of arms at Treasury Building during the budget reading 2020/2021./SOPAIMAGES

More or less borrowing?

Five questions on Kenya’s new debt policy As Kenya prepares to table the final budget for the upcoming fiscal year beginning next July, there are adjacent hasty plans to get parliament to chan...

© A general view of solar power panels is seen at the Atlantic Shrimp farm in Badagry, Lagos, Nigeria July 5, 2022. REUTERS/Temilade Adelaja

New Dawn?

Nigeria: Tinubu policy shift can prompt solar-power breakthrough Nigeria’s new President Bola Ahmed Tinubu has the chance to drive forward the country’s adoption of solar power, WATT Renewable CEO Oluwole Eweje tell...