Mamo Mihretu, the reformist Governor of the National Bank of Ethiopia (NBE), has stepped down after two and a half years in office. His resignation, announced on Tuesday, came as a surprise to many inside Ethiopia’s financial sector.
Mamo said he was leaving public service “to pursue other passions and tackle other challenges.” But his exit comes at a delicate moment, just as the central bank is cracking down on the country’s large parallel foreign exchange market—a fight he described as his “last legacy.”
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A Governor Who Shook the System
Appointed in January 2023 by Prime Minister Abiy Ahmed, Mamo entered the central bank without a traditional background in banking. Instead, he came with years of experience at the World Bank, in government policy-making, and as the first CEO of Ethiopian Investment Holdings, the country’s sovereign wealth fund.
In a short time, he pushed through some of Ethiopia’s most far-reaching economic reforms in decades. He introduced an interest-rate-based monetary system to replace years of money printing, launched a historic plan to gradually float the birr, opened the financial sector to foreign players, and oversaw the creation of the Ethiopian Securities Exchange.
Digital finance also boomed under his watch, with payments expanding tenfold. These moves were part of the government’s broader Home-Grown Economic Reform Program.
Achievements and Friction
The numbers tell part of the story. Inflation, which hit nearly 34% in 2022, dropped to 13.9% by mid-2025. Foreign currency reserves tripled, boosted by over $10 billion in external financing from the IMF and World Bank. The government projected strong growth, though global institutions gave more cautious figures.
But reforms came with costs. The birr’s float narrowed the gap between official and black-market rates, yet the parallel market remained strong. Many citizens complained of rising food and fuel prices, feeling little relief despite falling inflation on paper.
Why His Exit Matters
Mamo’s resignation echoes the sudden departure of his predecessor, who left after disputes over central bank independence. While the government has promised more autonomy for the NBE, critics argue political influence still runs deep.
For supporters, Mamo will be remembered as the governor who pulled Ethiopia’s financial system into the modern era. For critics, he leaves behind unfinished business: stabilizing the birr, building trust in official data, and ensuring the central bank can operate free from politics.
What is certain is that his exit marks the end of a bold, turbulent chapter. Ethiopia’s next central bank governor will inherit both the progress Mamo started and the deep challenges that remain.
