Ethiopia's Export Earning Surpasses All Previous Annual Revenues

Addis Ababa, March 20, 2025 (ENA) – Prime Minister Abiy Ahmed announced that Ethiopia's export revenue for the past eight months has exceeded the annual export earnings of any previous year.

Abiy said Ethiopia has generated 4.5 billion USD from exports in the last eight months, marking a significant economic achievement.

He highlighted the nation's remarkable economic progress, underscoring the government's strategic efforts to sustain this momentum during a session of the House of People's Representatives today.

"If we maintain this momentum for the next four months, we will achieve the highest export revenue in Ethiopia's history that is closer to our target in the ambitious 10-year plan."

He added that substantial earnings from other sectors, including 4.7 billion USD from services, 3.7 billion USD from remittances, and 2 billion USD from foreign direct investment (FDI) have been secured.

Regarding import expenditures, Abiy reported that 10.5 billion USD was spent in the past eight months.

Of this amount, 3 percent was allocated to raw materials import and over 21 percent to industrial capital goods, indicating a focus on essential sectors.

With regard to fiscal matters, the premier noted that while revenue collection has increased to over 580 billion Birr in the last eight months, expenditures remain higher due to substantial subsidies and salary increases.

"The costs associated with fuel and fertilizer subsidies as well as salary increases have created a significant expenditure burden. However, we are seeing improvements."

Prime Minister Abiy further addressed the nation's debt situation, stating that recent debt restructuring negotiations have resulted in saving 3.5 billion USD.

"This is a significant achievement, allowing us to save funds from commercial loans taken for projects initiated in previous years," he underscored.

Furthermore, he announced that Ethiopia's foreign currency reserves have more than doubled since 2019, reaching an unprecedented level in the nation's history.

"In the last 100 years of Ethiopian history, Ethiopia has never had the level of reserves we have today."

Commenting on inflation, the PM reported a significant reduction from approximately 29 percent last Ethiopian year to 15 percent this month.

This is a major victory attributable to the progress in financial reforms, controlled budget deficit spending, increased production, and direct sales by farmers in the supply market, Abiy elaborated.

Moreover, the premier announced plans to begin domestic fertilizer production to reduce dependency on imports.

"We subsidize fertilizer by 3,700 Birr per quintal and fuel by 28 birr per liter. With the Grand Ethiopian Renaissance Dam (GERD) completed, we will shift our focus to domestic fertilizer production, which is crucial for sustainable solutions," he explained.

The government is exploring options for establishing fertilizer factories through joint ventures, privatization, or direct state investment.

"With inflation decreasing and exports increasing, we are seeing positive results," Prime Minister Abiy Ahmed concluded, underscoring his government's commitment to economic stability and growth.