Ethiopia Central Bank Governor Mamo Mihretu resigns after two-year reform push

Ethiopian National Bank Governor Mamo Mihretu has resigned. He is credited with overseeing major economic reforms, including the liberalisation of the financial sector, a market-based exchange rate and record external funding.

Mihretu, who was appointed as the bank's governor on January 20, 2023, said his decision to resign was motivated by a desire to explore new challenges beyond government service.

“After seven years of dedicated public service in different capacities, the time has come for me to leave government to pursue other passions and tackle other challenges. It has been a great honour and source of satisfaction to be of service to our beloved nation,” he said in a statement on Wednesday.

He credited Prime Minister Abiy Ahmed for the opportunity to serve.

“I know this extraordinary opportunity for service was made possible because of the invitation, leadership, and guidance of Prime Minister Abiy Ahmed. For that and a lot more, I remain immensely grateful to him,” he said.

Mamo played a central role in Ethiopia’s macroeconomic policymaking. Before his appointment as NBE governor, he served as founding CEO of Ethiopian Investment Holdings, the sovereign wealth fund tasked with generating long-term wealth through global investment partnerships. He was also a senior member of the team behind the Home-Grown Economic Reform Programme.

Reflecting on his tenure at the central bank, Mamo said he guided the introduction of a modern monetary policy framework, led the transition to a market-based exchange rate system, and supported legislation that strengthened the bank’s autonomy.

“As Governor of the National Bank of Ethiopia, I led this venerable institution through the country’s most significant economic reforms in over 50 years. Thanks to the unparalleled professionalism and selfless work ethic of the NBE team and colleagues in the rest of the government, we introduced a modern monetary policy framework, transitioned to a market-based exchange rate system, and helped establish the Bank’s autonomy through new legislation,” he said.

He highlighted key achievements during his tenure, including opening the financial sector to foreign banks and advancing digital inclusion.

“We opened the financial sector to foreign banks, advanced digital inclusion, and secured $10.5 billion in external financing from partners including the IMF and World Bank, while stabilising the macroeconomy and restoring investor confidence. As a result of these reforms, foreign currency holdings increased by more than threefold, reaching historically its highest level in a matter of a year. Inflation reached its lowest in seven years,” he said.

“Digital payments increased by more than tenfold. The financial sector strengthened and expanded tremendously, reaching more than 5 trillion in assets. These and other historic achievements of the government are nothing short of remarkable.”

Mamo also acknowledged that while the reforms were transformative, some measures, such as gradually floating the birr, were controversial, as they contributed to rising living costs even while easing chronic foreign exchange shortages and improving competitiveness.

He expressed pride in his team and confidence in the future, saying, “On leaving the NBE today, I am confident that the vision of a modern central bank that is fit for purpose is within reach.”

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