Council of Ministers Endorses Wide-Ranging Economic, Social and Institutional Reform Bills

Addis Ababa, May 26, 2026 (FMC) – Ethiopia’s Council of Ministers, during its 55th regular session held today in the presence of Prime Minister Abiy Ahmed, approved and endorsed a broad range of draft proclamations, policies and regulations aimed at advancing the country’s ongoing economic reform agenda, strengthening institutional governance and accelerating social development initiatives.

The Council referred several draft laws to the House of Peoples’ Representatives (HoPR) for further deliberation and final approval, while approving the implementation of a number of policies and regulations.

Among the key matters discussed were two major financing agreements. The Council approved and referred to parliament a 46.3 million U.S. dollar loan agreement secured from the African Development Bank Group to support the implementation of the Pastoralist Food and Livelihood Improvement Project, as well as a 146.1 million SDR financing agreement obtained from the International Development Association for the sixth phase of Ethiopia’s Productive Safety Net Program. The Council noted that both agreements are consistent with the country’s debt management framework.

The cabinet also deliberated on a draft amendment to the Federal Tax Administration Proclamation, aimed at aligning Ethiopia’s tax administration system with ongoing economic reforms and international best practices. The amendment seeks to improve tax dispute resolution mechanisms, strengthen transparency and accountability, and enhance enforcement capacity. Following extensive discussions, the draft amendment was referred to the HoPR with additional recommendations.

In another major decision, the Council discussed and endorsed the draft Agribusiness Company Proclamation, which is intended to support the transition of Ethiopia’s agricultural sector from traditional farming practices to a market-oriented and business-led system. The draft law is designed to strengthen the bargaining power of smallholder farmers, promote value addition and industrial linkages, facilitate the growth of medium-scale enterprises, enhance food security and create employment opportunities. The proclamation was subsequently forwarded to parliament for final consideration.

The Council also reviewed the draft Ethiopian Carbon Market Proclamation, which seeks to establish a comprehensive legal framework for implementing Ethiopia’s carbon market strategy. The proposed legislation aims to create a conducive environment for green investment and technology transfer, regulate carbon trading mechanisms, protect communities and ecosystems surrounding carbon projects, and ensure equitable distribution of carbon revenues among the government, local communities, developers and other stakeholders. The draft law further supports Ethiopia’s commitments under international climate agreements and greenhouse gas reduction frameworks. The proclamation was referred to parliament with additional inputs.

Another key agenda item was the draft Ethiopian Statistics Proclamation, prepared to reinforce the professional independence of the Ethiopian Statistical Service, clarify institutional mandates, strengthen coordination among producers of official statistics, safeguard data confidentiality and improve the quality and accessibility of national statistical outputs in line with international standards. The Council endorsed the draft and referred it to the HoPR for further deliberation.

The ministerial cabinet additionally approved the draft National Energy Policy, which was formulated in alignment with Ethiopia’s Ten-Year Development Plan, national economic reform agenda and green economy strategy. The policy is intended to ensure sustainable, reliable, affordable and competitive energy supply through the efficient development of the country’s energy resources. Following deliberations, the Council approved the policy for implementation with further improvements incorporated.

The Council also approved the draft National Women’s Empowerment and Gender Equality Policy, which was prepared in accordance with international and continental conventions ratified by Ethiopia. The policy seeks to address the root causes of gender inequality, strengthen prevention and response mechanisms against gender-based violence, and provide greater attention to women with disabilities and other vulnerable groups.

The draft Insurance Proclamation was another major issue discussed during the session. The proposed law aims to strengthen the credibility, stability and fairness of Ethiopia’s insurance market, while protecting the rights and interests of policyholders and customers. The Council decided to forward the draft proclamation to parliament for final approval.

On trade reform, the cabinet reviewed the draft Ethiopian Trade Policy, which seeks to improve the management of domestic and international trade, diversify export products and services, reduce excessive dependence on agricultural exports, strengthen product standards, support local industries and enhance national competitiveness and productivity. The Council approved the policy for implementation after incorporating additional recommendations.

The Council further discussed and approved amendments to the regulation governing the powers and responsibilities of the Oil and Energy Authority to enable the institution to more effectively discharge its legal mandates. The regulation will take effect upon publication in the Federal Negarit Gazette.

In a related move, the cabinet approved a draft regulation on beneficial ownership transparency for legal entities. The regulation is intended to strengthen implementation of Ethiopia’s anti-money laundering and counter-terrorism financing legal framework by improving transparency in ownership disclosures. The regulation will also come into force upon publication in the Federal Negarit Gazette.

The Council additionally endorsed and referred to parliament the Food System and Nutrition Bill, which seeks to establish a comprehensive legal framework for improving nutrition systems, reducing food-related diseases and strengthening national coordination, public participation and resource mobilization in the sector while supporting Ethiopia’s international commitments.

Finally, the Council approved a draft regulation designed to oversee the implementation of government budget support provided to autonomous universities. The regulation aims to strengthen financial accountability, efficiency and equitable resource allocation among institutions, while encouraging universities to gradually expand self-financing capacity and improve service quality. The regulation will take effect following its publication in the Federal Negarit Gazette.