Ethiopia's Debt Stress Tones Down to Moderate

Ahmed Shide


Ethiopia's Debt Stress Tones Down to Moderate

Ethiopia's debt stress level has improved from high risk to moderate as of January due to loan rescheduling by China, according to the Ministry of Finance. Ethiopia has 39.1 billion dollars of outstanding debt, of which 16.8 billion dollars is foreign debt, while the remaining is domestic debt. The debt stress level improved after China rescheduled the loan payments period of the railway from five years to 10 years and also extended the grace period of the loans to 20 years. In addition, China has also changed its commercial loans to concessional loans, according to Haji Ibsa, communications director at the Ministry. In the first half of this fiscal year, the country has closed 54.5 billion Br in loans and grants, which is roughly on track with last year's numbers. Of the total value, 28.8 billion Br was in loans, while the remaining is in grants. The loans and the grants came from bilateral and multilateral sources.

[ssba-buttons]

Radar

NBE Expands Diaspora Warning Over Unlicensed Remittance Firms

The National Bank of Ethiopia (NBE) has issued an expanded public warning targeting unlicensed remittance operators abroad, flagging four U.S.-based companies it says are undermining Ethiopia's financial regulations. The warning includes newly disclosed findings and specific cases that underscore growing concerns about illicit cross-border financial activity. Remittance flows remain a vital lifeline for Ethiopia's economy, supporting households and supplying critical foreign currency. But as...


Radar

Stricter Standards Unveiled for Public Auditors, Accounting Firms

The Accounting & Auditing Board of Ethiopia (AABE) has issued a new directive aimed at strengthening oversight and professional standards in the accounting and auditing sector. Grounded in the Financial Reporting Proclamation, the directive addresses long-standing regulatory gaps while preparing the sector for the country's emerging capital market. Key provisions introduce stricter licensing standards for public auditors, professionals permitted to audit public interest entities. Applican...


Radar

Export Recovery Gains Ground, Industry Still Lags Potential

The Ministry of Industry (MoI) has reported a modest rebound in Ethiopia's manufacturing exports, with revenues climbing eight percent in the 2025 fiscal year to reach 318 million dollars. Minister Melaku Alebel attributed the growth to a gradual sectoral recovery but acknowledged the figures remain well below the country's industrial potential. Speaking at a forum held with 60 top-performing manufacturers, Melaku said the ministry is working to unlock bottlenecks and improve coordination. Th...