GCS Says Homegrown Reforms Anchor Ethiopia’s Economic Recovery

Addis Ababa, December 29, 2025 (ENA)—The Government Communications Service (GCS) has stated that Ethiopia’s Homegrown Macroeconomic Reform Program has established a solid foundation for a strong and competitive economy, citing tangible and lasting improvements across key sectors.

In a statement it released on its social media page today, the GCS said the government’s bold policy choices and structural changes helped the country avert economic crisis, rebuild foreign exchange reserves, and stimulate growth.

“Ethiopia’s broad economic reform plan has created a solid foundation for a competitive economy by achieving significant and lasting advancements in various fields,” the statement noted.

The GCS further elaborated that sustained political commitment has enabled the government to gradually address deep-rooted structural problems that had constrained economic performance for many years.

According to the statement, the reform program has also created a conducive environment for building a strong, globally connected, and market oriented economy.

The service highlighted progress in stabilizing inflation, increasing foreign reserves, promoting local production to substitute imports, and attracting investment as key achievements in accelerating economic recovery.

Foreign exchange market reforms were described as a major milestone. GCS explained that improved price discovery for the Ethiopian Birr helped channel illegal currency flows into the formal banking system, easing dollar shortages for businesses and supporting economic stabilization.

Debt restructuring was also cited as a critical success. High interest short term loans had long weighed on the economy, the statement said.

“Talks with creditors led to a relief of 4.5 billion US dollars, which was then used for reserves and projects across the country, strengthening financial stability,” it added.

The reforms have also strengthened confidence in Ethiopia’s exchange systems, improving the investment climate and boosting foreign direct investment. GCS said the inflow of capital has helped trigger a broader economic revival.

“Overall, these economic changes have saved the country from disaster, boosted foreign exchange reserves, and made Ethiopia’s economy stronger while opening new doors for global trade,” the statement said.

Looking ahead, the service stressed that sustaining the gains will require a continued focus on exports, domestic production, and productivity.

“To ensure these achievements last, the government’s primary goal is to raise exports, promote local alternatives to imports, and enhance overall productivity,” it said.

GCS concluded that the reforms have positioned Ethiopia to advance despite development challenges across Africa, demonstrating resilience and preparedness to compete on the global stage.