Addis Ababa, December 29, 2025 (FMC) – Ethiopia will continue prioritizing exports, import substitutions, and productivity to maintain the achievements realized through its ongoing economic reforms, the Government Communication Service (GCS) announced on Monday.
The GCS said the country’s comprehensive macroeconomic reform program has successfully shielded Ethiopia from recession while strengthening its economic resilience and elevating its engagement with the international trading community.
The reforms have produced tangible results, including stabilizing inflation, increasing foreign exchange reserves, promoting import substitutions, attracting new investments, and accelerating economic growth across key sectors.
According to the GCS, these achievements are rooted in the government’s consistent and committed reform measures. Among the most significant steps was the adoption of a market-based foreign exchange rate, which allowed the Ethiopian currency to reflect its true value. This move brought previously illicitly transferred foreign currency into the formal banking system, enabling investment institutions facing dollar shortages to resume operations and contributing to the broader economic recovery.
Another major initiative has been the successful restructuring and partial cancellation of Ethiopia’s foreign debt. The country had faced considerable pressure from high-interest, short-term commercial loans. Through negotiations with creditor countries and financial institutions, Ethiopia restructured approximately $4.5 billion in debt, freeing foreign exchange reserves to finance nationwide development projects and reinforcing the stability of financial institutions.
The reforms have also established a transparent and predictable exchange rate regime, which has increased foreign investor confidence and boosted capital inflows, further supporting the country’s economic recovery.
The GCS emphasized that sustaining these gains will require continued focus on increasing exports, promoting import substitutions to reduce reliance on foreign goods, and enhancing productivity across sectors. These priorities, it said, are essential for building an internally resilient, internationally integrated, and market-competitive economy.