IMF Pledges Continued Backing for Ethiopia’s Economic Reforms Ahead of Third Program Review

Addis Ababa, October 14, 2025 (FMC) – The International Monetary Fund has pledged continued support for Ethiopia’s ambitious reform agenda, recognizing the country’s strong progress in macroeconomic stabilization and structural transformation.

During the 2025 Annual Meetings of the World Bank and IMF, a high-level Ethiopian delegation held productive discussions with IMF Deputy Managing Director Nigel Clarke and senior officials from the Fund’s Africa Department. The meetings focused on Ethiopia’s ongoing IMF-supported program, aligned with the Homegrown Macroeconomic Reform Agenda.

Finance Minister Ahmed Shide expressed appreciation for the IMF’s support in advancing reforms aimed at unlocking Ethiopia’s economic potential, creating jobs, and improving living standards. He highlighted achievements including a sharp decline in inflation, a significant rise in exports—particularly gold—enhanced revenue mobilization, and improvements in the business climate.

Shide also emphasized the high financial cost of reform implementation, calling for increased concessional financing commensurate with Ethiopia’s needs as one of Africa’s largest economies.

National Bank Governor Eyob Tekalign briefed the IMF on progress in debt restructuring negotiations under the G20 Common Framework and shared updates on ongoing financial sector reforms.

The IMF praised Ethiopia’s strong economic growth, enhanced macroeconomic stability, and efforts to open up the economy. Clarke described Ethiopia’s reforms as a model for other nations and reaffirmed the Fund’s commitment to supporting the country’s transformation. He also noted the importance of continued collaboration with partners such as the World Bank to mobilize additional financing and announced plans to visit Ethiopia in December to engage with government institutions, policymakers, and the private sector.

The meeting concluded with both sides agreeing to work closely during the upcoming Third Review of the IMF program in Addis Ababa, which will assess reform progress and identify critical areas for deeper collaboration to support Ethiopia’s long-term development and sustained economic growth.