Kenya, January 29 ,2026 - Ethiopia’s shift toward a clearly defined and pragmatic economic policy framework has translated into measurable macroeconomic gains, according to Brook Taye, Chief Executive Officer of Ethiopian Investment Holdings (EIH).
Speaking at the Conference on Rule of Law and Alternative Dispute Resolution for Sustainable Peace and Development in Bahir Dar on 29 January 2026, Mr Brook described the policy reorientation as a cornerstone of Ethiopia’s recent economic resilience and growth.
Brook highlighted that the shift from ideological debate to clarity of economic purpose has enabled policymakers to confront structural challenges with realistic solutions, boosting investor confidence and supporting sustained expansion in key sectors. “The government’s key breakthrough since 2018 was ending long-standing ideological confusion and replacing it with what I described as clarity of thought grounded in Ethiopia’s economic realities,” he said.
According to Mr Brook, Ethiopia’s Homegrown Economic Reform Agenda was pivotal in identifying core constraints, including foreign exchange shortages, inflation, employment gaps and data limitations, and aligning policy tools to address these systematically.
He explained that “clarity of thought with a very simple four-pointer” provided a framework for realistic, impact-oriented policies.
This strategic recalibration, he argued, allowed Ethiopia’s economy to weather domestic and global shocks while maintaining growth momentum. For example, inflation, which once soared above 30 per cent, was brought under control, declining to under 10 per cent within a year, a significant macroeconomic achievement that supports private-sector activity and investor confidence.
Brook also underscored the importance of public-private synergy, rejecting a zero-sum view of their roles. “We’re not going to compete between private and public. Each has its own role and responsibility,” he said, pointing to improved outcomes driven by collaboration rather than competition between sectors.
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The EIH CEO’s remarks come at a time when Ethiopia is seeking to deepen economic reforms and attract greater domestic and foreign investment, a priority reflected in its engagement at global forums like the World Economic Forum 2026, where Finance Minister Ahmed Shide showcased Ethiopia’s commitment to innovation, infrastructure and fiscal sustainability.
Policy clarity and institutional strengthening also reinforce Ethiopia’s strategic positioning in regional integration efforts and development partnerships.
The narrative of pragmatism and resilience adds to a business environment increasingly focused on predictability, rule of law and sustainable growth, key factors multinational investors evaluate in frontier markets.
For investors, the message is clear: Ethiopia’s economic policy, backed by explicit macroeconomic targets, inflation control and public-private collaboration, is not only designed to withstand shocks but to create pathways for long-term investment in sectors from manufacturing and energy to technology and services.

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