IMG_20250114_113609_934

Ethiopia’s Fuel Prices Among the Cheapest Globally, as Debt Drops and Economic Reforms Take Shape

Ethiopia’s debt-to-GDP ratio has dropped to 13.7% from over 30%, thanks to strategic reforms initiated during the transition period, according to Minister of Planning and Development Fitsum Assefa (PhD). The government’s new economic and social policy vision prioritizes inclusive growth across sectors like agriculture, manufacturing, mining, tourism, and the digital economy. This vision aims to reduce economic imbalances, transfer key roles from the government to the private sector, and foster structural transformation.Minister Fitsum highlighted the modernization of Ethiopia’s economy, with over 80 laws, including the Trade Law and Investment Proclamation, amended to open up markets and encourage competition. She emphasized successes in improving service, trade, investment, and the digital economy, citing the privatization of major state-owned enterprises like Ethio Telecom.

The government has also significantly boosted revenue, enhanced expenditure management, and ensured that subsidies reach their intended targets. Ethiopia’s national savings rate has risen by 200%, and the country now generates more foreign currency than it spends, thanks to gains from gold and coffee exports.

Despite global challenges, the government continues to provide targeted fuel subsidies, maintaining a price discount of 20 to 26 ETB per liter. Minister Fitsum noted that the reform’s focus on pro-poor policies, such as digitalizing the fuel trading system, aims to reduce costs and prevent smuggling, benefiting the most vulnerable citizens.

Author

Leave a Reply

Your email address will not be published. Required fields are marked *



Ethiopian Business Review | EBR is a first-class and high-quality monthly business magazine offering enlightenment to readers and a platform for partners.



2Q69+2MM, Jomo Kenyatta St, Addis Ababa

Tsehay Messay Building

Contact Us

+251 961 41 41 41

Author

Addis Maleda
x