Ethiopia and the United Kingdom have reaffirmed their long-standing partnership by signing three major cooperation agreements aimed at supporting economic reforms, strengthening public investment systems, and expanding green energy infrastructure. Prime Minister Abiy Ahmed (PhD) received Rt. Hon. Yvette Cooper, the UK Secretary of State for Foreign, Commonwealth and Development Affairs, where the two sides
“Why do some Ethiopians earn 20 times more than others in the same city?” That question feels like an accusation and a confession all at once. Walk down any main street in Addis Ababa and you’ll see it: shiny cafés and new office towers standing beside neighborhoods where a day’s wages pays for a single
Ethiopia is on track to see its poverty rate rise to 43% next year, reversing hard-won gains made over the past two decades, as conflict, drought and surging inflation strain living standards, according to newly released projections. Poverty, measured at the $3 per day international line (2021 PPP), climbed from 33% in 2016 to 39%
Ethiopian Investment Holdings (EIH), the country’s sovereign wealth manager, continued its annual performance dialogue on day two, with updates from its hospitality, power, and engineering portfolio companies. The reviews underscored steady revenue growth in hotels, strong expansion in electricity access, and rising regional ambitions in engineering services. Hospitality SectorGhion Hotel and Spa, one of Addis
Ethiopia has launched a comprehensive portfolio of investment projects valued at more than $13 billion, signaling a major push to attract private capital across agriculture, energy, manufacturing, finance, and infrastructure. The pipeline, outlined in the newly released “Invest in Ethiopia 2025” Deal Book, includes dozens of projects positioned as “investment-ready,” with financing models ranging from
Ethiopia’s economy went through a rollercoaster in late 2024, trying to find its balance amid big changes in the foreign exchange system and stubborn inflation. A report from the Ethiopian Economics Association (EEA) offers a detailed snapshot of how things unfolded, especially between July and December 2024—a period marked by bold reforms, tough realities, and
According to the IMF report, Ethiopia is undergoing significant economic reforms supported by a four-year arrangement with the IMF under the Extended Credit Facility (ECF), which was approved in July 2024. The program aims to correct macroeconomic imbalances, ensure external debt sustainability, and establish a foundation for robust, private sector-led growth, all while navigating challenging
The Ethiopian Parliament approved a $550 million loan agreement aimed at increasing the capital of the Commercial Bank of Ethiopia (CBE). This move is intended to strengthen the state-owned bank, making it more competitive and enabling it to operate effectively within the region. The loan is part of a $700 million financing package provided by
Ethiopia’s ongoing macroeconomic reforms, implemented six months ago, have significantly impacted the manufacturing sector, with the demand for birr doubling during this period, according to Industry Minister Ato Melaku Alebel. Speaking at the House of People’s Representatives today, the minister outlined the challenges and achievements in financing the manufacturing industry while emphasizing the need for
Ethiopia stands at the cusp of a transformative financial evolution. Over the past two decades, the country has emerged as one of Africa’s fastest-growing economies, fueled by substantial public investments in infrastructure and services. Yet, behind this remarkable growth lies a significant challenge—a financial ecosystem constrained by limited domestic savings, an over-reliance on foreign debt,
The National Bank of Ethiopia (NBE) released its second annual Financial Stability Report in November 2024, providing a comprehensive assessment of the country’s financial health up to June 2024, with additional updates through September 2024. This report builds on the findings of the April 2024 report, highlighting key developments in Ethiopia’s financial system amidst ongoing
The International Monetary Fund (IMF) staff and Ethiopian authorities have reached a staff-level agreement on economic policies to conclude the second review of Ethiopia’s four-year, $3.4 billion Extended Credit Facility (ECF) arrangement. Upon formal approval by the IMF Executive Board, Ethiopia will gain access to approximately $251 million in financing. Ethiopia’s homegrown economic reform agenda,
Economy
