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Ethiopia Urged to Delay Financial Opening Amid Risks

4/15/2026

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Story summary
  • Studwell, a fellow at the Overseas Development Institute, warns against opening Ethiopia's financial system prematurely, citing South Korea's 1997 crisis.
  • Ethiopia has made progress but lacks a clear plan to advance industrial capabilities.
  • He emphasizes maintaining control over key economic levers—cheap power and directed credit—to support manufacturing.
  • He notes Abiy Ahmed's leadership could affect long-term policy stability.
  • Aligning economic reforms with developmental goals is urgent for Ethiopia's future.