Addis Ababa — The Ministry of Finance and the National Bank of Ethiopia (NBE) have announced the successful completion of the joint Fourth Review of Ethiopia’s economic reform program, marking a key milestone in the implementation of the Homegrown Economic Reform Agenda.
According to a joint press release issued on Tuesday, the review confirmed that Ethiopia’s economic performance exceeded initial expectations, with all quantitative performance criteria met and most indicative targets surpassed, despite ongoing global and regional challenges.
Following the positive assessment, the International Monetary Fund (IMF) Executive Board approved the release of an additional US$261 million in financing. This brings total disbursements under the current IMF arrangement to more than US$2.18 billion, providing further support to Ethiopia’s reform efforts.
The government noted that the economy is now experiencing a rare and favorable combination of outcomes, including strong and sustained economic growth, a rapid decline in inflation, improved fiscal discipline, and a steady rebuilding of foreign exchange reserves. Officials attributed these results to a firm commitment to macroeconomic stability, consistent reform implementation, and strong national ownership of policy choices, rather than reliance on short-term measures.
Significant progress has also been recorded in foreign exchange market reforms. The shift to transparent foreign exchange auctions and steps toward a more market-based system have helped restore confidence, enhance export competitiveness, and support private sector activity.
On the fiscal front, revenue mobilization has exceeded expectations, supported by recent tax policy and tax administration reforms. At the same time, government spending has been managed prudently to safeguard priority public investments and social protection programs.
The government further welcomed progress in restoring debt sustainability, highlighting the completion of the Official Creditor Committee Memorandum of Understanding under the G20 Common Framework. Officials described the development as a critical step toward reducing uncertainty and unlocking investment.
Financial sector reforms are also advancing, with ongoing efforts to modernize monetary policy, strengthen banking supervision, and reinforce the autonomy and institutional capacity of the National Bank of Ethiopia.
Looking ahead, the government reiterated its focus on translating macroeconomic stabilization into job creation, increased private investment, and rising incomes, while deepening reforms aimed at fostering inclusive and resilient economic growth.
