Ethiopia Records Major Macroeconomic Gains Following Homegrown Reforms, Says Finance Minister

Addis Ababa, January 15, 2026 (FMC) — Ethiopia has achieved significant progress in stabilizing its macroeconomic environment and strengthening public finances following the implementation of wide-ranging economic reforms over the past seven years, Finance Minister Ahmed Shide said.

Addressing the Finance Forward Ethiopia conference, the minister recalled that seven years ago the country faced severe macroeconomic pressures, including deep imbalances, a heavy debt burden, foreign-exchange shortages, and market instability.

He said the government’s Home-Grown Economic Reform programs were introduced to tackle these challenges and have since produced tangible results.

As a result, Ethiopia has emerged as one of Africa’s fastest-growing economies, supported by stronger and more modern public institutions.

Among the key outcomes of the reforms, Minister Ahmed noted that government revenue—including external inflows—has increased fivefold, while tax revenue has grown by 400 percent. Overall government revenue has risen by 446 percent compared to 2010 levels.

In addition, Ethiopia mobilized a total of 25 billion US dollars in external resources over the past seven years.

Budget allocations to poverty-focused sectors have quadrupled since 2010, reflecting the government’s emphasis on inclusive growth.

The minister also highlighted improvements in fiscal discipline, noting that the fiscal deficit declined from 2.5 percent in 2010 to 0.9 percent in 2017.

“These reforms have enabled the design of strong, innovative, and efficient strategies to enhance government revenue and ensure macroeconomic stability,” Ahmed Shide said.