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EconomyEthiopia and Italy have signed a €70 million concessional budget support loan to finance the country’s Third Development Policy Operation (DPO3), aligning with complementary financing from the World Bank. The agreement was signed by Ethiopia’s Minister of Finance, Ahmed Shide, and Italy’s Ambassador to Ethiopia, Sem Fabrizi. Speaking at the signing ceremony, Ahmed Shide said
EconomyEthiopia has reached a preliminary agreement with key bondholders to restructure its defaulted $1 billion international bond, marking a significant step toward resolving a debt crisis that has persisted for years, the Ministry of Finance announced on Monday. Under the proposed terms, Ethiopia will issue an $880 million restructured bond to be repaid in installments,
EconomyEthiopia’s House of People’s Representatives has approved a USD 600 million loan agreement with the International Development Association (IDA), the World Bank’s concessional lending arm, during a special parliamentary session held on Friday. The approval came just hours after the Council of Ministers reviewed and endorsed three financing agreements signed with the IDA, stating that
Banking & FinanceThe National Bank of Ethiopia (NBE) has successfully conducted its 23rd Special Foreign Exchange Auction, allocating USD 100 million to participating banks at a marginal rate of 157.9999 birr per U.S. dollar. According to results released by the central bank on Tuesday, the auction attracted total bids worth USD 236.3 million, more than double the
EconomyEthiopia’s annual inflation rate rose to 13.4 percent in May 2026, marking a sharp increase from 11.7 percent in April and signaling renewed pressure on household budgets after months of easing price growth. According to the latest Consumer Price Index (CPI) data released by the Ethiopian Statistical Service (ESS), the increase was largely driven by
EconomyThe federal government has allocated 542.1 billion Br for domestic and external debt servicing in its proposed 2019 fiscal year budget, making debt repayment the single largest expenditure item in the spending plan. The allocation represents an increase of nearly 79 billion Br compared to the current fiscal year and accounts for 43.3pc of the
EconomyEthiopia’s Council of Ministers has approved a record federal budget proposal of 2.34 trillion birr for the 2019 fiscal year and forwarded it to the House of People’s Representatives, signaling the government’s continued commitment to economic reform and development priorities. During its 56th regular meeting, the Council reviewed and unanimously endorsed the country’s Medium-Term Macroeconomic
EconomyKEFI Gold & Copper reported a loss for 2025 as the company intensified development activities at its flagship Tulu Kapi Gold Project in Ethiopia, while emphasizing that the project has now moved into the construction phase and remains on track for first gold production in 2028. The London-listed mining company posted a pretax loss of
EconomyEthiopia is set to receive approximately $468 million in additional financing after the International Monetary Fund (IMF) reached a staff-level agreement with the government on the fifth review of the country’s Extended Credit Facility (ECF) program. The agreement, announced on Wednesday, marks another milestone in Ethiopia’s ongoing economic reform agenda and, once approved by the
EconomyEthiopia’s efforts to restructure its defaulted $1 billion Eurobond have encountered another setback after a committee representing bondholders rejected the government’s latest proposal and warned that some investors are preparing to pursue legal action. In a statement released on Monday, the bondholder committee said it remains willing to consider alternative solutions but concluded that Ethiopia’s
BusinessThe National Bank of Ethiopia (NBE) has introduced a new directive governing imports made under the Franco Valuta system, aiming to modernize the framework and strengthen oversight of foreign currency-free imports. The directive officially took effect on May 29, 2026. Franco Valuta refers to the importation of goods without using foreign exchange obtained from Ethiopia’s
EconomyEthiopia’s efforts to restructure its international debt have suffered another setback after bondholders rejected the government’s latest proposal, according to the Ministry of Finance. The proposal, discussed during negotiations held from May 6 to May 27, reportedly included a 12% haircut on Ethiopia’s $1 billion Eurobond due in 2024. Bondholders declined the offer, prolonging a
