The International Monetary Fund has flagged a missed transparency benchmark after Ethiopian Investment Holdings (EIH) failed to publish consolidated financial statements for its state-owned enterprise portfolio by a year-end deadline.

In its January 2026 programme review, the IMF said the sovereign investment arm did not meet a requirement to release audited accounts for the 2022/23 fiscal year, citing delays linked to procurement procedures for appointing an international accounting firm. The fund now expects the statements to be completed and published by end-March 2026.

The disclosure lapse comes amid better-than-anticipated macroeconomic performance under Ethiopia’s Homegrown Economic Reform agenda. Real gross domestic product expanded by 9.2 percent in 2024/25, supported by mining, manufacturing, and construction, according to the IMF. Growth is forecast to edge higher to 9.3 percent in 2025/26.

Export earnings have strengthened external balances, led by a sharp increase in gold shipments from just over four metric tons to nearly 39 metric tons within a year. Coffee exports also rose, reaching about 470 metric tons. Inflation pressures have eased, with average inflation falling to 16 percent in 2024/25 from 26.6 percent a year earlier, and projected to decline further to 11.9 percent next year.

Despite the missed benchmark, the IMF said reforms across the state-owned enterprise sector remain broadly on track. Governance frameworks are being upgraded across the 36 entities managed by Ethiopia Investment Holdings, while the financial position of key utilities has improved following tariff adjustments, particularly in the power sector.

The fund cautioned, however, that Ethiopia’s recovery faces downside risks. Political and security pressures could slow reforms, while elections scheduled for June 2026 may intensify demands for public spending and strain fiscal targets. External financing remains fragile, reflecting lower official development assistance, delayed privatisation receipts, and modest foreign direct investment inflows.

Publication of Ethiopia Investment Holdings’ accounts is viewed as central to strengthening fiscal transparency and supporting efforts to restore debt sustainability. The IMF said progress on this front will be closely watched as Ethiopia advances negotiations with members of the Official Creditor Committee and seeks to reassure external partners on the financial health of its state-owned enterprises.