The World Bank’s Board of Executive Directors has approved a $1.5 billion financing package to support Ethiopia’s home-grown economic reforms. This comprehensive support includes a $1 billion grant and a $500 million concessional credit from the International Development Association (IDA). The “Ethiopia First Sustainable and Inclusive Growth Development Policy Operation” aims to help Ethiopia transition
The Executive Board of the International Monetary Fund (IMF) has approved a four-year arrangement under the Extended Credit Facility (ECF) for Ethiopia, amounting to SDR 2.556 billion (approximately US$3.4 billion). This arrangement supports Ethiopia’s Homegrown Economic Reform (HGER) Agenda, aiming to address macroeconomic imbalances and establish the foundations for private-sector led growth. The decision enables
Prime Minister Abiy Ahmed has announced key policy measures under the second phase of the Homegrown Economic Reform Program (HGER 2.0). The main highlights of the macroeconomic policy reforms include: In addition to these policy reforms, measures to support vulnerable sections of society have been outlined: These measures are designed to ensure a comprehensive approach
Ethiopia has attracted $3.82 billion in foreign direct investment (FDI) during the recently concluded Ethiopian fiscal year, as reported by the Ethiopian Investment Commission. At a media briefing today, Ethiopian Investment Commissioner Hanna Arayaselassie highlighted the key areas of focus over the past fiscal year, including improving the business climate, promoting investment, facilitating activities, providing
The Central Bank of the UAE (CBUAE) and the National Bank of Ethiopia (NBE) have signed a significant currency swap agreement, along with two Memorandums of Understanding (MoUs), aimed at enhancing financial cooperation between the two countries. The deal allows the CBUAE and NBE to exchange local currencies up to AED 3 billion and ETB
The National Bank of Ethiopia (NBE) has announced that the country’s inflation rate fell to 19.9% in June 2024, a significant decrease from 29.3% during the same period last year. This marks a 9.4 percentage point reduction year-on-year. According to the NBE, non-food inflation decreased from 31.4% to 15.3%, while food inflation dropped from 28.0%
Today, Prime Minister Abiy Ahmed addressed the Ethiopian Parliament, where he faced numerous questions from lawmakers about the country’s current challenges and the impending ratification of a nearly one trillion Birr federal budget bill. Lawmakers expressed their concerns about the delays and budget overruns in key corridor projects in Addis Ababa, the effectiveness of current
In 2018, there was a significant struggle for political reform, leading to Prime Minister Abiy Ahmed (Ph.D.) coming to power. His time in office began with ambitious plans and actions aimed at promoting political transparency and addressing critical issues. However, the initial momentum did not last. While the political reforms of 2018 aimed to foster
Economy
