Addis Ababa, April 13, 2025 (FMC) – Ministry of Finance stated that this budget year marks a significant departure from previous years, as Ethiopia embarks on sweeping macroeconomic reforms.
Ahmed Shide, Minister of Ministry of Finance, expressed strong economic growth, better inflation control, and increased government revenue over the past nine months.
The announcement came during the third-quarter performance review of the 2017 Ethiopian fiscal year, a session attended by Prime Minister Abiy Ahmed.
The minister described the budget year as a historic turning point, marking the most extensive economic transformation in the country’s history.
“This has been a year where the market has determined the foreign exchange rate. Monetary policy is gradually aligning with market-based interest rates, and fiscal policy reforms are increasing revenue and enhancing spending efficiency,” the minister stated.
He emphasized that a task force, led by the Prime Minister and comprising the Ministries of Finance and Revenue, the Customs Commission, and other stakeholders, achieved the government’s nine-month revenue targets through successful tax administration and increased compliance, thus strengthening public finances.
According to the minister, revenue generation has significantly improved and must be sustained to maintain the reform momentum.
Inflation has declined in recent months, a result of coordinated policy interventions, he stated, adding, the government has taken steps to shield citizens from the effects of economic reforms by providing subsidies on essential goods, including fertilizers, fuel, cooking oil, and medicines, and increasing salaries for public employees.
“Efforts have been made to stabilize prices, improve food availability, and ensure the reforms do not disproportionately affect low-income groups,” said the minister.
The minister affirmed the restructuring of public enterprises under Ethiopian Investment Holdings has led to enhanced governance and improved revenue performance.
“Our export performance is robust, and our foreign exchange reserves are stable. We’re seeing consistent improvement across all major macroeconomic indicators,” Ahmed underscored.
Ethiopia has reached a preliminary agreement with the G20 creditors to restructure 3.5 billion US Dollars of external debt, he noted, stating a memorandum of understanding is expected to be signed shortly as individual discussions with each creditor country are ongoing, and the minister called this a major step forward in reducing the country’s debt burden.
Minister Ahmed also expressed the importance of maintaining reform momentum by bolstering production systems, enhancing productivity, increasing export capacity, and optimizing efficiency across public institutions.
He also expressed the ongoing progress in the country’s digital transformation and in key sectors such as agriculture, industry, and services.
“For reforms to continue delivering results, we must ensure that the private sector plays a central role and that government institutions operate with efficiency and accountability,” he added.
According to the minister, the ministry reaffirmed its commitment to deepening macroeconomic reforms aimed at achieving sustainable, inclusive growth, positioning Ethiopia for long-term prosperity.