The International Monetary Fund (IMF) has called on Ethiopia to take further steps to enhance competition and efficiency in its foreign exchange market, underscoring the importance of prudent expenditure management and sustained revenue mobilization to safeguard fiscal sustainability.
In a statement issued on Wednesday, December 10, the IMF said that fostering private sector investment will require continued efforts to strengthen the business climate.
Alvaro Piris, head of the IMF staff team for Ethiopia, emphasized that “maintaining a tight monetary policy stance remains appropriate to anchor inflation expectations and support price stability.”
Piris noted that progress under the government’s Homegrown Economic Reform Agenda “continues, yielding favorable macroeconomic outcomes.” According to him, available data indicate accelerating economic growth since mid 2024, supported by strong performance in gold, electricity, and agricultural production.
The Fund highlighted that Ethiopia’s goods exports have more than doubled in value, inflation has moderated, and government revenue has expanded significantly. Authorities are also pressing ahead with reforms to improve the foreign exchange market, modernize the monetary policy framework, strengthen revenue mobilization, and advance financial regulatory measures.
Following the successful completion of the fourth review under the IMF’s Extended Credit Facility (ECF), Ethiopia is expected to receive about USD 261 million, subject to approval by the IMF Executive Board.
Once disbursed, total IMF financial assistance to Ethiopia under the ongoing ECF arrangement will reach approximately USD 2.13 billion — about 62 percent of the total approved amount in July 2024.
