Ethiopia Nears IMF Approval for $468 Mln After Fifth Review

June 4, 2026

Mintesinot Nigussie

Ethiopia moved closer to securing another 468 million US dollars from the International Monetary Fund after the lender reached a staff-level agreement with Addis Ababa on the fifth review of the country’s reform programme, even as conflict in the Middle East adds new pressure on the economy.

The agreement, announced Wednesday, is subject to approval by the IMF’s management and executive board in the coming weeks.

If approved, total disbursements under Ethiopia’s Extended Credit Facility programme would rise to about 2.65 billion US dollars since the four-year arrangement was approved in July 2024.

The IMF said Ethiopia continued to record stronger macroeconomic performance through early 2026, with gains in exports, foreign exchange reserves and government revenue alongside easing inflation.

But the Fund said the war in the Middle East had emerged as a major external shock, disrupting trade flows and contributing to temporary fuel shortages and higher import costs for fuel and fertiliser.

Even so, the IMF said the economic fallout had so far remained contained, with only modest effects on growth and consumer prices.