Addis Ababa — Ethiopia's shift toward a clearly defined and pragmatic economic policy framework has translated into tangible macroeconomic gains, according to Ethiopian Investment Holdings (EIH) Chief Executive Officer Brook Taye.
The tangible gains include doubling of gross domestic product and per-capita income over the past five years, he added.
Speaking at the Conference on Rule of Law and Alternative Dispute Resolution for Sustainable Peace and Development in Bahirdar , the Chief Executive Officer said the government's key breakthrough since 2018 was ending long-standing ideological confusion and replacing it with what he described as clarity of thought grounded in Ethiopia's economic realities.
"For me, it was all a confusion," he said, referring to earlier debates over whether Ethiopia should pursue a capitalist or socialist path.
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Therefore, what the government has done from day one since 2018 was establishing a clarity of thought.
This clarity was first expressed through the Homegrown Economic Reform Agenda, which openly identified structural constraints facing the economy, including foreign exchange shortages, inflation, employment gaps, and data limitations.
"This is a clarity of thought with a very simple four-pointer," he explained, adding that acknowledging these challenges allowed policymakers to design realistic solutions.
According to Brook, pragmatism has been central to the reform process, enabling Ethiopia to adopt policies based on effectiveness rather than ideology.
The EIH CEO noted that the reform approach helped the economy withstand global and domestic shocks while maintaining momentum.
"This clarity of thought is what enabled our economy to weather global and domestic challenges and continue in its growth trajectory," he stated.
Citing inflation control as an example, Brook noted that inflation declined from 34 percent to 9.7 within a year, alongside continued delivery of major infrastructure and industrial projects.
Furthermore, Brook stressed that rejecting a zero-sum view between the public and private sectors has also been critical.
"We're not going to compete between private and public. Each has its own role and responsibility," he said, arguing that this balance accelerated implementation and improved outcomes.
The CEO finally noted that policy clarity alone is insufficient without capable institutions, stressing that reforms have focused equally on building institutions and professional capacity to sustain long-term growth.
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