@MoF_Ethiopia – Ethiopian Business Review

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Ethiopia ranked fifth among African nations importing U.S. goods in 2024, with an import worth of USD 1.016 billion, according to the latest data from the United States Census Bureau.

Ethiopia followed Egypt (USD6.89 billion), South Africa (USD5.8 billion), Morocco (USD5.2 billion), and Nigeria (USD4.1 billion) in total value of imports. It remained one of only six African countries to exceed the USD1 billion mark, ahead of nations such as Algeria and Ghana.

Despite a year-over-year decrease of about USD202.7 million from 2023’s total of USD1.218 billion, Ethiopia’s strong position in the rankings highlights the depth of its commercial ties with the U.S.

While the Census Bureau’s figures do not break down imports by sector, previous trends suggest that Ethiopia’s purchases often include aircraft components, machinery, medical technology, and agricultural equipment goods linked to infrastructure, healthcare, and economic modernization.

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Ethiopia has been ranked as the first expensive country to live in Africa, according to new global data from Numbeo, the world’s largest cost of living database. The report titled “Cost of Living Index by Country 2025” shows that, compared to other African countries, people in Ethiopia now spend more money on basic things like food, transportation, and dining.

Ethiopia is ranked 53rd in the world with cost of living index 46.5, higher than any other African country listed. The high cost of groceries is one of the main reasons for Ethiopia’s top ranking. This shows that it is becoming harder for people to afford their weekly shopping, especially for families living on fixed or low incomes.

Ethiopia’s position stands in contrast to other relatively high-ranking African nations on the cost-of-living scale. Botswana, Mozambique, Ivory Coast, Somalia, Cameroon, and Mauritius follow behind, with Zimbabwe trailing these countries.

Although rent in Ethiopia is still relatively low compared to many parts of the world, the combined cost of rent and living expenses remains very high for most people. Eating at restaurants, transportation, and general services are all getting more expensive. The transportation index shows that traveling inside the country, whether for work or personal needs, is more costly than in most other African countries.

These rising costs come during a time of economic change. Over the past year, Ethiopia has made big shifts in its economy such as adjusting its currency system and reducing government spending. While these changes are meant to help in the long term, they are causing short-term pain for many citizens. Prices have gone up, but salaries have not kept pace, which means that many people are struggling to afford the same standard of living they had a year or two ago.

For example, Numbeo estimates that a single person living in Addis Ababa would now need around USD800 per month (excluding rent) to cover basic living costs. A family of four would need more than USD2,700 per month. This is far above what most Ethiopian households actually earn.

This situation is affecting not only families but also small businesses. With fewer people able to spend money, many shops and restaurants are seeing fewer customers. Some companies are cutting jobs or closing down altogether. The pressure is felt most strongly in cities like Addis Ababa, where prices have risen faster than incomes.

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The Addis Ababa City Administration Cabinet has proposed a substantial budget increase for the 2025/2026 fiscal year, submitting a draft budget of ETB 350 billion to the city council, as reported by Fana Media Corporation (FMC). This represents a major expansion compared to the approved ETB 230.39 billion budget for the current 2024/2025 fiscal year.

The current fiscal year’s budget already marked a significant 64% rise from the previous year, with capital expenditures accounting for nearly two-thirds of the total allocation. Priorities included infrastructure development, job creation, housing projects, and poverty alleviation initiatives designed to support the city’s rapidly growing population.

Building on this foundation, the newly proposed budget allocates approximately 249.9 percent of its resources to critical sectors such as sustainable development, infrastructure expansion, poverty reduction, job creation, and subsidies for essential public services. The remaining ETB 100.1 billion is reserved for the city’s regular operational costs, managed with a strong emphasis on fiscal discipline and savings.

In parallel, the cabinet approved revisions to land lease bid prices following recommendations from the Land Development and Administration Bureau. The city’s Communication Bureau explained to the FMC that this adjustment is in response to improved infrastructure within corridor development zones, stable land prices, and future urban expansion requirements.

The Institute of Foreign Affairs (IFA), in collaboration with the Ministry of Foreign Affairs, held a high-level conference on Tuesday at the Sheraton Hotel under the theme “Exploring New Avenues: Economic Diplomacy as a Mainstay of Ethiopian Foreign Policy.”

The forum brought together leading government institutions — including the Ministry of Finance, Ethiopian Securities Exchange, Ethiopian Investment Holdings, Ethiopian Investment Commission, and the Ministry of Foreign Affairs — to discuss how to align foreign policy with Ethiopia’s economic ambitions.

Central to the discussions was the Homegrown Economic Reform Agenda, launched in September 2019, which aims to liberalize and modernize Ethiopia’s economy. Panelists explored how the reform program is positioning the country to better integrate with the global economy and attract quality investments.

In his opening remarks, IFA Executive Director Jafar Bedru stressed the need to shift diplomatic efforts beyond traditional political frameworks. “Our diplomatic engagements must transcend conventional paradigms and adopt a proactive, business-oriented approach — one that prioritizes investment and trade facilitation,” he said.

Ambassador Workalemahu Desta, Political and Economic Diplomacy Advisor, MoFA, acknowledged that while Ethiopia’s economic and business diplomacy is making progress, it still falls short of matching the opportunities created by recent reforms. He noted the growing global demand for competitive investment destinations, emphasizing Ethiopia’s strategic potential.

“Globally, production and labor costs are soaring. Multinational companies are actively seeking low-cost, stable, and business-friendly environments — and Ethiopia is emerging as a top destination,” he said.

Ambassador Workalemahu also underscored Africa’s growing strategic importance, pointing to the African Continental Free Trade Area (AfCFTA) as a transformative platform. “AfCFTA is unlocking a vast market for investors across Ethiopia. Additionally, our membership in BRICS and the New Development Bank enhances our positioning within the evolving global economic order,” he added.

Dr. Tilahun Kassahun, CEO of the Ethiopian Securities Exchange (ESX), highlighted the need to diversify Ethiopia’s financial landscape to sustain economic growth. He emphasized that beyond traditional financing mechanisms, both local and foreign private investors require access to alternative financial instruments such as portfolio investments. He mentioned that amid the launch of the capital market in Ethiopia, the Ministry of Foreign Affairs must attract investments from abroad as the old technical way of investment has changed to easy and Central Securities Depository. “Beyond simply counting how many remittance accounts are opened, a new key performance indicator (KPI) should be how many CSD accounts are created,” he added.

He also revealed that the capital market is expected to integrate with the interbank lending system in the first week of July. Just six months after its launch, the interbank market has already facilitated over ETB 800 billion in transactions, with daily volumes reaching several ETB billion, he reported.

This comes on the heels of the launch of a Diplomatic Guide for the Homegrown Economic Reform Agenda, unveiled on Monday by the Ministry of Foreign Affairs in collaboration with the Ministry of Finance, the Ethiopian Securities Exchange, and Ethiopian Investment Holdings.

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BitX, a global mining company has signed a Memorandum of Understanding (MoU) with Ethiopia Mining Farm, paving the way for cutting-edge AI-powered mining infrastructure in Ethiopia, according to Street Insider.

The agreement marks a significant milestone in BitX’s African expansion, introducing its flagship Bit-X V2 Accelerator into local mining operations. This AI-driven technology is designed to double mining efficiency without the need for hardware upgrades, offering a more sustainable and cost-effective approach to Bitcoin mining. Ethiopia is seen as a high-potential hub, thanks to its largely untapped energy reserves and increasing momentum in digital transformation.

BitX’s CEO highlighted that the partnership goes beyond efficiency—it aims to foster a more inclusive and decentralized Web3.0 mining model, where access and fairness are prioritized. Ethiopia Mining Farm officials echoed this vision, stating that the integration of BitX’s accelerator will significantly enhance their operational performance and global competitiveness.

According to the MoU, BitX plans to roll out its technology across 20,000 mining machines in Ethiopia by the end of 2025, with ambitions to expand across other African markets. A key part of this initiative is BitX’s Shared Accelerator Program, which allows global participants to invest in decentralized mining via AI-powered contracts, starting at just $100—making it accessible to a broad base of investors, including Ethiopians.

Unlike traditional mining models that depend heavily on hardware or low-cost electricity, BitX’s approach focuses on software optimization and energy efficiency, enabling emerging economies like Ethiopia to participate in the global Bitcoin mining economy without massive capital requirements.

With a proven track record in North America and Central Asia, BitX’s move into Ethiopia underscores a growing shift in global mining strategy, one that champions decentralization, smart technology, and environmental consciousness.

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Ethiopia is set to receive USD 260 million in fresh funding from the International Monetary Fund (IMF), as part of a broader USD 3.4 billion loan program aimed at supporting economic recovery and ongoing reforms.

This latest installment brings the total IMF support disbursed under the Extended Credit Facility (ECF) to nearly USD 1.85 billion. The fund’s staff and Ethiopian authorities have now reached a staff-level agreement to complete the third review of the program.

The news comes as Ethiopia shows strong signs of macroeconomic improvement. According to the IMF, inflation is cooling down, exports are rising, and international reserves are growing faster than expected.

“Ethiopia’s economic performance has gone beyond expectations,” said Alvaro Piris, head of the IMF team that visited Addis Ababa in April. “The shift to a more flexible exchange rate has gone smoothly, and government efforts to modernize monetary policy, improve tax collection, and reform state-owned enterprises are starting to bear fruit.”

Despite the progress, challenges remain. The gap between official and black market exchange rates has widened again in early 2025. The IMF notes that fees and commissions in the foreign exchange market are still high, making currency access difficult for many businesses.

To fix this, new measures are being rolled out to make the FX market more transparent and efficient. These include easing restrictions, reducing costs, and improving regulation.

The IMF also emphasized the importance of keeping up the reform momentum. Continued discipline in monetary policy, better tax systems, and a stronger private sector are all seen as key to building long-term growth.

The ECF program, approved in July 2024, is designed to help Ethiopia stabilize its economy, support vulnerable communities, and unlock growth by encouraging private investment and reforming outdated financial systems.

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Ethiopia has officially launched the Ethiopian Insurance Women Association (EthIWA), a national milestone set to foster professional advancement, ethical leadership, and continental collaboration among women in insurance.

The launch took place during the 51st Conference and Annual General Assembly of the African Insurance Organization (AIO), held this week in Addis Ababa. After nearly two decades of absence from the African Insurance Women Association (AIWA) due to the lack of a national women’s platform, Ethiopia now joins the continental network through the formation of EthIWA.

At the helm of this groundbreaking association is none other than Meseret Bezabih, CEO of Hibret Insurance S.C. and one of the most respected figures in Ethiopia’s insurance landscape. Elected as the first president of EthIWA, Meseret brings decades of experience, a record of corporate leadership, and a passion for women’s advancement to the role.

“Today, I am here to herald good news about the establishment of Ethiopian Insurance Women Association (EthIWA) at the 20th birthday of the African Insurance Women Association (AIWA) established in 2005,” she announced in her keynote speech at the launch event.

She highlighted AIWA’s core principles as a non-religious, non-political, and non-ethnic professional association, dedicated to the growth of women in the African insurance industry.

“The success of any goal is unattainable without the active participation of women,” she emphasized, adding, “Africa and Ethiopia are home to numerous thriving institutions led by women, a testament to the value of empowering female professionals.”

Meseret also reflected on the deeper qualities women bring to leadership: care, resilience, and commitment, traits often nurtured through personal roles such as motherhood and caregiving, yet deeply impactful in corporate governance and sectoral growth.

EthIWA’s establishment is expected to catalyze mentorship, leadership development, and cross-border collaboration. As a member of AIWA, the association will give Ethiopian insurance professionals a long-overdue voice on continental platforms and help elevate local standards to global levels.

In closing, Meseret reaffirmed EthIWA’s dedication: “We are determined and ready to work in full solidarity with AIWA to promote the advancement of women in Africa’s insurance industry.”

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Ethiopia’s Council of Ministers, in its 46th regular meeting, approved the Medium-Term Macroeconomic and Fiscal Framework for 2026–2030, a key instrument to guide budget planning and policy direction for the coming fiscal years. The framework aims to expand the government’s revenue base, ensure sustainable public expenditure, and support a stable macroeconomic environment.

The approved framework is expected to serve as a foundation for next year’s federal budget, aligning fiscal strategy with broader economic reforms currently underway in the country.

In the same meeting, the Council endorsed two financial agreements signed with international development partners. A $49.55 million loan from the Arab Bank for Economic Development in Africa will support youth employment projects in coordination with agro-industrial parks. A second loan of SDR 45.1 million from the International Development Association (IDA) will be directed toward improving health service delivery for women and girls. Both loans carry favorable conditions, including long grace periods and minimal service fees.

The Council also approved a regulation prepared by the Ministry of Labor and Skills, which sets service fees for foreign employment agencies. The regulation is intended to help the ministry recover operational costs while considering the financial capacity of users. It will take effect upon publication in the Federal Gazette.

Further, the Council discussed and passed a draft proclamation on employment abroad, aimed at ensuring the safety, rights, and dignity of Ethiopian citizens working overseas. It also intends to improve the country’s ability to benefit from foreign employment opportunities. The draft was referred to the House of People’s Representatives for further legislative process.

Lastly, a draft proclamation on plant protection and quarantine was approved and forwarded to the House. The measure aims to strengthen pest control systems, facilitate safe trade in agricultural goods, and ensure compliance with the International Plant Protection Convention.

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The Commercial Bank of Ethiopia (CBE) and the Addis Ababa City Administration signed a memorandum of understanding (MoU) on Friday to finance housing for more than 41,000 government employees under the 25/75 cost-sharing program.

As part of the agreement, CBE will provide 120 billion birr in long-term financing, with a 20-year repayment period and favorable interest rates. The loan is expected to ease the persistent housing shortages faced by civil servants in the capital.

CBE President Ato Abe Sano said the initiative demonstrates the bank’s commitment to social development and financial inclusion. “We are offering this financing not just to build houses, but to solve a long-standing problem that affects public service delivery and worker morale,” he stated during the ceremony.

He also urged the city administration to accelerate the housing construction process and deliver the promised units swiftly.

Ms. Kidist WoldeSelassie, Head of the Housing Development Bureau, welcomed the partnership and said the city will prioritize teachers in the first phase of the program. “We’re prepared to move quickly and ensure these homes are delivered within a short time frame,” she added.

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The International Monetary Fund (IMF) is expected to convene this summer to consider the third review of Ethiopia’s USD3.4 billion support program, according to a spokesperson cited by Reuters. The review remains on track with the original schedule, signaling continued confidence in Ethiopia’s reform trajectory despite recent delays in securing a staff-level agreement.

An IMF delegation visited Addis Ababa in mid-April for routine assessments. At the time, Ethiopian authorities anticipated a swift announcement of a staff-level agreement. However, no official update has since been issued, leaving observers awaiting clarity as the Executive Board meeting nears.

If approved in June, the review will unlock a 191.70 million Special Drawing Rights (SDR) tranche—equivalent to about USD265 million—to support the country’s sweeping macroeconomic reform agenda. The disbursement would represent a crucial injection of liquidity as Ethiopia navigates fiscal consolidation, foreign exchange liberalization, and structural adjustments.

The IMF program, agreed upon last July, was a key requirement for Ethiopia’s participation in the G20’s Common Framework for debt restructuring. Since then, the government has secured a preliminary deal with official creditors and is preparing to engage with private bondholders in the coming weeks and months.

Older Posts

Ethiopia Among Top Five African Countries Importing U.S. Goods in 2024

Ethiopia Tops Africa’s Cost of Living Index Amid Economic Reform Pressures

Addis Ababa City Plans Major Budget Expansion to Tackle Infrastructure and Poverty

Key Government Institutions Convene to Reinforce Economic Diplomacy as Pillar of Ethiopian Foreign Policy

BitX Enters Africa via Ethiopia in Major AI-Driven Mining Deal

IMF Staff Back USD260M Disbursement as ‘Ethiopia Exceeds Reform Targets’

Veteran Insurance Leader Meseret Bezabih to Chair Historic Women’s Association in Ethiopia

Council of Ministers Approves Five-Year Fiscal Framework to Guide Budget and Reforms

CBE Pledges ETB120 Billion to Ease Housing Crunch, Prioritizes Teachers

IMF to Review Ethiopia’s USD3.4B Program Despite Staff-Level Delay