Mamo Mihretu
Mamo Esmelealem Mihretu | |
|---|---|
| Born | Ethiopia |
| Occupation(s) | Economist, lawyer, policymaker |
| Years active | –present |
| Known for | Governor of the National Bank of Ethiopia (since 2023), senior economic advisor to the Prime Minister, founding CEO of Ethiopian Investment Holdings |
Mamo Esmelealem Mihretu (in Amharic: ማሞ እስመላለም ምህረቱ) is an Ethiopian economist, lawyer, and policymaker who has held the position of Governor at the National Bank of Ethiopia (NBE) since 2023. He has been instrumental in advancing Ethiopia’s economic transformation by modernizing monetary policy, liberalizing the financial sector, and stabilizing the national currency. During his tenure, Ethiopia adopted a flexible exchange rate mechanism, relaxed foreign currency controls, and implemented banking reforms aimed at attracting international investment. These initiatives have contributed to curbing inflation, enhancing liquidity, and reinforcing financial system resilience.
Prior to his role as central bank governor, Mihretu served as a senior economic advisor to the Prime Minister and headed Ethiopian Investment Holdings (EIH), the country’s sovereign wealth fund.
Early life and education
Mihretu earned a law degree from Addis Ababa University and pursued studies in Leadership, Public Administration, and Economic Development at Harvard Kennedy School. He also completed advanced legal education at the Universities of Pretoria and Amsterdam.
His dual expertise in law and economics establishes him as a prominent leader within Ethiopia’s financial landscape.
Career
Mihretu started his professional journey at the World Bank, concentrating on trade policy, investment climate improvements, and economic governance to foster private sector expansion in Ethiopia and across sub-Saharan Africa.
Upon returning to Ethiopia, he took on the role of Senior Economic Advisor to Prime Minister Abiy Ahmed and served as Chief Trade Negotiator, significantly contributing to the Home-Grown Economic Reform Agenda.
As founding CEO of Ethiopian Investment Holdings, created in December 2021, Mihretu oversaw Ethiopia’s inaugural sovereign wealth fund. EIH functions as the government’s strategic investment entity with goals to enhance management of state-owned enterprises, attract foreign capital, and elevate economic productivity.
EIH consolidates government assets and establishes co-investment platforms to unlock value from underperforming SOEs while maximizing returns. Under Mihretu’s guidance, Ethiopia has moved toward adopting a more market-driven economic framework.
Governor of the National Bank of Ethiopia
Since assuming office, Mamo Mihretu has spearheaded significant reforms in monetary policy and financial regulation focused on inflation management, foreign exchange market liberalization, and banking sector modernization.
Monetary Policy Reforms Ethiopia transitioned to an interest rate-based monetary policy under Mihretu’s leadership, replacing previous direct credit controls with market-oriented tools. The central bank actively manages liquidity through open market operations aiming for single-digit inflation targets.
Exchange Rate Liberalization He directed Ethiopia’s landmark shift to a floating exchange rate system that harmonized official and parallel market rates to improve market transparency and efficiency. This reform increased remittance inflows, bolstered foreign currency reserves, and stabilized exchange markets.
Financial Sector Reforms The banking industry has undergone governance enhancements, strengthened financial stability frameworks, and steps toward greater competition including proposals to permit foreign banking institutions. The NBE has prioritized robust regulatory oversight and innovation within financial services.
Fiscal Stability and Investment Climate Mihretu curtailed central bank financing of fiscal deficits to support macroeconomic stability. These measures helped reduce inflationary pressures while boosting investor confidence, thereby improving Ethiopia’s attractiveness for sustainable investment.
Through these comprehensive reforms, Mihretu aims to establish a more open, resilient, and competitive financial environment conducive to enduring economic growth. Nonetheless, challenges persist such as managing elevated inflation rates, public debt burdens, and socioeconomic disparities exacerbated by global crises.
Economic Vision and Challenges Mihretu underscores the difficulties African economies encounter in balancing external debt obligations against incoming investments, noting that many nations face net negative financial flows due to debt repayments surpassing new inflows. He advocates for strengthening financial institutions, updating policy frameworks, and expanding private sector participation as essential steps toward achieving long-term economic stability in Ethiopia.
Recognition and Influence
Mamo Mihretu is widely acknowledged as a prominent figure in African economic reform, playing a crucial role in stabilizing Ethiopia’s economy during periods of difficult investment climates. According to The Economist, escalating debt levels pose significant obstacles for many African countries seeking to attract foreign investment.
In spite of these hurdles, Mihretu’s efforts in monetary reform, the liberalization of the banking sector, and strategic financial diplomacy have successfully regained support from global financial institutions, establishing Ethiopia among the continent’s more robust economies. He has been instrumental in managing geopolitical dynamics and drawing investment from China, the UAE, and Western financial organizations.
The Economist highlights Mihretu as the mastermind behind the reforms that have enticed international financial bodies to Ethiopia, while also cautioning about the serious challenges African economies continue to face:
“The biggest story that nobody is paying attention to” is how hard it has become for African nations to attract the investment they need.
Through initiatives such as debt restructuring, updating financial frameworks, and opening up the banking industry, Mihretu has strengthened Ethiopia’s position as a leader in economic reform.
Personal life
Mihretu chooses to keep his personal affairs private.