Ethiopia’s central bank governor, Mamo Mihretu, has stepped down after just two years, leaving behind a sweeping reform legacy. Appointed in January 2023, Mihretu oversaw a broad liberalization of the economy, including the critical floating of the birr currency, the launching of a securities exchange, and the opening of the financial sector to foreign players. The reforms helped unlock $10.5 billion in support from the IMF and World Bank, tripled foreign reserves, and cut inflation from nearly 37% to 14%. Digital payments also surged more than tenfold, while banking assets climbed past $35 billion. While the painful currency adjustment squeezed households, it established vital market credibility. As Mihretu exits, the challenge is whether his reforms will endure—and who will steer Ethiopia’s financial future.
The Africa Report
