The governor of the National Bank of Ethiopia (NBE), Mamo Mihretu, announced his resignation on Wednesday after serving in the government for seven years.
During his tenure, he oversaw some of the nation’s most significant economic reforms in decades.
In his farewell message, Mamo described his time in government as an “honour and source of satisfaction,” saying he was leaving the public service “to pursue other passions and tackle other challenges.”
Mamo’s role in the formulation of Ethiopia’s economic policies formulation
Mamo, appointed governor of NBE in January 2023, was instrumental in Prime Minister Abiy Ahmed’s formulation of Ethiopia’s economic policies. Before this, he was a senior member of the macroeconomic team behind the Home-Grown Economic Reform Program and the founding CEO of Ethiopian Investment Holdings, the sovereign wealth fund established to manage state assets.
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While serving as governor, Mamo implemented a market-based exchange rate system, established a contemporary monetary policy framework, and helped pass laws increasing the central bank’s independence.
Additionally, he secured 10.5 billion US dollars in external financing from multilateral partners like the World Bank and the International Monetary Fund, expanded digital financial inclusion, and oversaw the opening of Ethiopia’s financial sector to foreign banks.
He claimed that while inflation dropped to its lowest level in seven years, foreign exchange reserves tripled in a single year to reach an all-time high. Digital payments increased more than tenfold, and the value of financial sector assets surpassed 5 trillion Ethiopian birr.
Controversy over Mamo’s economic policies formulation
However, there was some controversy surrounding some of his most important actions.
The decision to gradually float the birr in an effort to improve competitiveness and alleviate ongoing foreign exchange shortages also fueled sharp increases in the cost of living.
Opposition leaders and economists criticised the policy for adding to the financial strain that households were already under from rising fuel and food prices.
Mamo especially appreciated Prime Minister Abiy, whose “invitation, leadership, and guidance” he claimed enabled him to serve the public.
Mamo rumoured to take on international role
The government has not yet released an official statement, but according to Prime Minister’s Office sources, Mamo Mihretu’s next stop is outside of Ethiopia.
According to insiders, he is ready to assume international duties, possibly in a global financial organisation or multilateral institution.
The departure of Mamo, a former World Bank employee, marks the start of Ethiopia’s next stage of economic development and the end of an era.
His legacy includes bold reform, institutional modernisation, and an unwavering commitment to integrating Ethiopia’s financial systems with international norms.
His departure leaves behind a revitalised investment environment, a reformed national bank, and a nation more equipped to handle the challenges of the global economy.
Ethiopia’s economic narrative will rely heavily on Mamo’s contributions as it pursues its ambitious reform agenda.