Ethiopia Says Policy Overhaul Is Strengthening Fiscal Position and Economic Stability

July 28, 2026
By Mintesinot Nigussie

Ethiopia’s macroeconomic reform programme is strengthening the country’s fiscal position, improving domestic revenue mobilisation and supporting efforts to stabilise the economy, Finance Minister Ahmed Shide said. Ahmed made the remarks during a joint performance review by the Ministry of Finance and its affiliated institutions covering the concluded fiscal year and the current fiscal year plan.

The minister said implementation of the macroeconomic reform programme had delivered significant results, particularly in containing inflation, increasing domestic revenue and strengthening cooperation with development partners. “The performance of the macroeconomic reform implementation is highly effective,” Ahmed said, adding that the reforms had contributed to progress in key areas of economic management.

He also highlighted the government’s debt restructuring agreement with international creditors during the 2018 fiscal year, describing it as a milestone year in which debt repayment began under the new arrangements. Ahmed said the government would continue implementing the reform programme while focusing on the effective execution of the federal budget approved by the House of Peoples’ Representatives.

The Ministry of Finance launched discussions on the implementation of the approved budget and priorities for the coming fiscal year as part of efforts to improve public financial management and institutional performance. State Minister of Finance Fekadu Horreta said the ministry had undertaken institutional reforms aimed at improving service delivery standards and strengthening its capacity to meet its objectives. He added that institutional reform measures introduced alongside the macroeconomic reform programme would continue to receive attention.

Ethiopia introduced its macroeconomic reform programme in July 2024 as part of efforts to address economic imbalances and improve growth prospects. The programme includes foreign exchange market reforms, monetary policy adjustments, fiscal measures and initiatives to increase domestic revenue mobilisation. The reforms are being implemented alongside a four-year, 3.4 billion US dollars Extended Credit Facility programme with the International Monetary Fund, approved in July 2024 to support Ethiopia’s economic reform agenda.

Source: FSX Business News