Comprehensive Reform Enables Ethiopia to Navigate Shocks, Says Finance Minister

Addis Ababa, January 22, 2026 (ENA)—Ethiopia’s comprehensive reform has effectively enabled it to withstand numerous shocks, including the COVID-19 pandemic, droughts, and inherited debt, over the past seven years, Finance Minister Ahmed Shide said.

Speaking at the World Economic Forum panel held in Davos, Finance Minister Ahmed Shide said “the fundamental issues we’ve faced include various shocks such as the pandemic and geopolitical tensions stemming from the Ukraine-Russia conflict”.

 To overcome these and other challenges, Ethiopia has been successfully carrying out a wide-ranging reform agenda that encompasses political, social, and economic dimensions for the last seven years, he added.

According to him, the substantial investments in the agricultural sector have led to improved food security and sovereignty as well as initiatives aimed at human development and infrastructure connectivity.

 The Minister noted that the macroeconomic reforms have bolstered Ethiopia’s capacity to mobilize revenue and enhance the efficiency of public enterprises.

He also pointed out the significant improvement in delivery capacity of the nation while reducing its debt risk level through successful negotiations with creditor countries as part of the G20 Common Framework.

“Domestic ownership, strong leadership, and diversified sources of growth have contributed to our declining risk vulnerability, enhancing our resilience capacity,” he added.

The Minister underscored that Ethiopia comprehensive approach has focused on institutional building, economic diversification, social cohesion, and regional solidarity.

In this regard, the efforts not only equipped Ethiopia to respond to its own challenges but also supported broader regional connectivity and economic integration, benefiting neighboring countries vulnerable to similar shocks.

Ahmed also emphasized Ethiopia's strategic position as a major market in the region, with significant investments in infrastructure such as energy generation, facilitating electricity exports to countries like Kenya, Djibouti, and Sudan.

In this respect, he revealed that Ethiopian Airlines is doing a fantastic job in terms of connectivity in the region and this creates resilience at regional level as well.