Mamo Mihretu

Mamo Esmelealem Mihretu (Amharic: ማሞ እስመላለም ምህረቱ) is an Ethiopian economist, lawyer, and policymaker who currently serves as the Governor of the National Bank of Ethiopia (NBE). He has been a key figure in Ethiopia’s economic reform agenda, particularly in monetary policy modernization, financial sector liberalization, and currency stabilization. Under his leadership, Ethiopia has introduced a more flexible exchange rate system, eased foreign currency restrictions, and pursued banking sector reforms aimed at attracting foreign investment. His policies have played a crucial role in addressing inflation, improving liquidity, and enhancing financial stability.
Prior to his appointment as central bank governor, Mihretu served as a senior economic advisor to the Prime Minister and led Ethiopian Investment Holdings, the country’s sovereign wealth fund.
Mr. Mihretu holds a degree in law from Addis Ababa University and studied Leadership, Public Administration, and Economic Development at the Kennedy School of Government at Harvard University. Additionally, he has also completed his postgraduate studies in Law at the Universities of Pretoria and Amsterdam.
His academic background combines legal expertise with economic policy, positioning him as a key figure in Ethiopia’s financial sector.
Mr. Mihretu started his career at the World Bank, where he worked on trade policy, investment climate, and economic governance. During his tenure, he helped shape economic policies that supported private sector growth across Ethiopia and sub-Saharan Africa.
Upon returning to Ethiopia, he served as a Senior Economic Advisor to Prime Minister Abiy Ahmed and Chief Trade Negotiator. He was instrumental in the rollout of the Home-Grown Economic Reform Agenda.
Ethiopian Investment Holdings
As the founding CEO of Ethiopian Investment Holdings, Mihretu managed Ethiopia’s first sovereign wealth fund, focusing on restructuring key industries.
Established in December 2021, Ethiopian Investment Holdings serves as the strategic investment arm of the Ethiopian government. Its primary objectives include professional management of state-owned enterprises (SOEs), attracting foreign investment, and maximizing economic productivity and growth.
EIH was created to rethink SOE management by aligning it with best practices of active ownership and professionalism. By consolidating assets and establishing co-investment platforms, EIH aims to unlock value from underutilized assets, bringing the highest possible return on investment.
His tenure saw a significant shift in Ethiopia’s economic policy, moving away from state-controlled models toward a more market-oriented approach.
Since his appointment as Governor of the National Bank of Ethiopia, Mamo Mihretu has led major monetary and financial sector reforms, focusing on inflation control, foreign exchange liberalization, and banking modernization.
Monetary Policy Reforms
Under his leadership, Ethiopia transitioned to an interest rate-based monetary framework, replacing direct credit controls with market-driven policies. The central bank now actively manages liquidity through open market operations, aiming to bring inflation to single digits.
Exchange Rate Liberalization
Mihretu oversaw Ethiopia’s historic move to float the exchange rate, aligning the official and parallel market rates to improve transparency and efficiency. This reform has boosted remittance inflows, strengthened foreign exchange reserves, and stabilized market conditions.
Financial Sector Reforms
The banking sector has seen new governance directives, improved financial stability measures, and a push for greater competition, including the planned entry of foreign banks. The NBE has also focused on strengthening financial oversight and encouraging innovation in financial services.
Fiscal Stability and Investment Climate
Mihretu has worked to reducing monetary financing of fiscal deficits, reinforcing macroeconomic stability. His policies have reduced inflationary pressures and improved investor confidence, making Ethiopia’s financial landscape more attractive for long-term growth.
Through these reforms, Mihretu is steering Ethiopia toward a more open, stable, and competitive financial system, positioning the country for sustained economic progress.
However, he has also faced challenges, including managing high inflation, public debt, and economic inequalities exacerbated by global and regional crises.
Economic Vision and Challenges
Mihretu has been vocal about the pressures African economies face in balancing foreign debt and investment inflows. He argues that many African countries struggle with negative net financial flows, where more money leaves in debt repayments than is received in investments and loans.
He continues to advocate for stronger financial institutions, modernized economic policies, and greater private sector engagement to drive long-term stability in Ethiopia’s economy.
Mamo Mihretu is widely recognized as one of Africa’s leading economic reformers, playing a crucial role in stabilizing Ethiopia’s economy amid a difficult investment climate. The Economist highlights that many African nations face growing debt burdens and financial shortfalls, making it increasingly hard to attract investment.
Despite these challenges, Mihretu’s monetary reforms, banking liberalization, and financial diplomacy have helped secure renewed support from international institutions, positioning Ethiopia as one of the continent’s more resilient economies. He has also been a key player in navigating geopolitical shifts and securing investments from China, the UAE, and Western financial institutions.
As The Economist describes, Mihretu is the architect of many of the reforms that attracted global financial institutions to Ethiopia, but he warns that African economies face serious headwinds. He emphasizes:
“The biggest story that nobody is paying attention to” is how hard it has become for African nations to attract the investment they need.
By supporting in efforts in restructuring debt, modernizing financial policies, and opening the banking sector, Mihretu has strengthened Ethiopia’s role as a leader in economic transformation. (After the war ends, can Ethiopia’s economic ‘miracle’ get back on track?
Mihretu maintains a relatively private personal life.