Ethiopia Unveils Landmark Reform Report Showcasing Strong Growth, Policy Gains

Addis Ababa, April 7, 2026 (ENA) —The Government of Ethiopia today officially launched the Macroeconomic and Structural Reform Report during a high-level event held at the Commercial Bank of Ethiopia.

The report, which highlights 18 months of report performance, was produced by a collaborative team of Ethiopian economists, provides a rigorous, evidence-based analysis of the nation’s economic performance and the tangible gains achieved under the second phase of the Home-Grown Economic Reform program.

 

 Minister of Finance, Ahmed Shide, highlighted the significant progress made under the leadership of Prime Minister Abiy Ahmed.

He explained that a high-level macroeconomic coordination platform has been established, supported by a robust technical team drawn from key economic institutions, think tanks, and international partners.

He added that this structure has been instrumental in enabling continuous monitoring of the country's economic landscape, allowing the government to anticipate potential risks and respond swiftly with coordinated policy measures.

 

“The Ministry of Finance, together with our partner institutions, is committed to making this a regular exercise, producing high-quality analytical outputs that inform policy and strengthen accountability.

 On her part, Fitsum Assefa, Minister of Planning and Development, told the gathering that Ethiopia has sustained a broad-based economic growth averaging 7.5% per annum over the past eight years, driven by expansions in agriculture, industry, and services.

She noted that the report demonstrates that reforms are taking hold, coordination is improving, and the economy is responding.

Despite a complex global backdrop and internal shocks, the report indicates that early indicators for FY2024/25 are highly encouraging, with improved foreign exchange reserves and declining inflation.

 

Minister Fitsum highlighted that the government is now establishing a macroeconomic data exchange system to enable real-time sharing of indicators and improve consistency across public institutions.

 Eyob Tekalign, Governor of the National Bank of Ethiopia emphasized that the report reflects a growing technical capability within the government to use high-frequency data and advanced analytical tools.

He noted that "stability is a system outcome," requiring aligned fiscal and monetary policies rather than isolated interventions.

 

The report highlights several key milestones in Ethiopia’s ongoing reform journey. Over the past eight years, A significant milestone was the transition to a market-determined exchange rate, a reform initiated in July 2024.

This move has begun to address exchange rate misalignments, resulting in a noticeable strengthening of Ethiopia’s export performance.

 In addition, the government has made strides in strengthening fiscal and monetary discipline.

It shifted to an interest-rate-based monetary policy framework and ceased direct advances from the National Bank of Ethiopia (NBE) to the budget, aiming to create a more sustainable fiscal environment.

Complementing these efforts, parallel reforms have modernized tax administration through digitalization, e-filing, and risk-based audits, all geared toward enhancing revenue mobilization and supporting the country’s broader economic stability.

 Professor Stefan Dercon of the University of Oxford, a distinguished economist who supported the work, lauded the report for being locally designed and owned.

 

He remarked that while many countries implement reforms reluctantly due to external pressure, Ethiopia’s current efforts are characterized by a clear determination to ensure the agenda is homegrown, which significantly increases its credibility.

 As Finance Minister Ahmed Shide previously noted regarding the nation's direction, the reform momentum is "real and irreversible," designed to position Ethiopia as a competitive, private-sector-led economy that is "open for business".