The International Monetary Fund (IMF) is set to disburse a new tranche of financing worth approximately US$468 million to Ethiopia as part of the fifth review of its program under the Extended Credit Facility (ECF).
With this latest disbursement, the total amount of financial support provided by the IMF to Addis Ababa since the launch of the program will reach nearly US$2.65 billion.
In a statement, the IMF praised the progress made by the Ethiopian authorities in implementing their economic reform agenda. The institution noted continued improvements in key macroeconomic indicators through the beginning of 2026.
National output, exports, foreign exchange reserves, and government revenues all recorded significant growth, while inflation continued its downward trend.
However, the IMF emphasized that the conflict in the Middle East has represented a major external shock to the Ethiopian economy. Disruptions to international trade have led to temporary fuel shortages and a sharp increase in the prices of imported fuel and fertilizers.
Despite these challenges, the Ethiopian economy has demonstrated resilience, with only a limited impact on economic growth and consumer price inflation. Nevertheless, the international financial institution believes that risks to the country’s economic outlook have increased.
To preserve macroeconomic stability, the IMF recommends maintaining a prudent and restrictive monetary policy aimed at containing inflationary pressures and anchoring inflation expectations.
The institution also stresses the importance of continuing structural reforms to promote private sector-led growth, improve the business environment, deepen market reforms, and strengthen the resilience of the financial system.
The staff-level agreement reached between the two parties must now be approved by IMF management and the Executive Board in the coming weeks.
