IMF Signals Progress in Talks with Ethiopia

May 18 , 2024

  The International Monetary Fund (IMF) reported "substantial progress" last week on its negotiations with Ethiopia for a potential multi-billion dollar economic support package. Julie Kozack, communications director of IMF, said that virtual meetings held after the Fund's staff visit to Ethiopia last month and subsequent Spring meetings have been productive. However, no finalised deal has been reported. Ethiopia has requested financial assistance from the IMF to address food security, humanitarian needs, post-conflict reconstruction, and high inflation. However, securing a deal with the IMF hinges on a staff-level agreement that requires Ethiopia to implement structural economic reforms. An agreement with the IMF is also crucial for Ethiopia's debt restructuring program under the Group of 20's Common Framework mechanism, which has been ongoing for the past three years. The IMF is looking for economic reforms that address current account deficits, achieve debt sustainability, improve the balance of payments, reduce inflation to single digits, and transition towards a more market-oriented exchange rate system. Despite a series of tightening monetary policy measures taken by the National Bank of Ethiopia (NBE) over the past year, inflation remains in double digits and the foreign currency shortage persists.


Ministry Secures $86m Grants

An 86.18 million dollar grant agreement was signed between the Ministry of Finance, UNICEF and UNFPA last week to support the agencies' ongoing country programs for the fiscal year. Out of the total grant, UNICEF committed 70 million dollars to support its water, nutrition, education, health, sanitation, child protection, and gender projects. Meanwhile, UNFPA pledged 16.1 million dollars for family planning, maternal health, adolescent and youth development, and gender equality and women empo...


Authority Reports Fuel Import Stats

Ethiopian Petroleum & Energy Authority (EPA) disclosed that 3.2 million tons of fuel were imported into the country during the last fiscal year. The figure includes 2.04 million tons of diesel and 767,672tns of benzene. In the past fiscal year, the digital payment system, Telebirr, facilitated transactions totalling 103 million volumes worth 61.8 billion Br. Of these transactions, 81.39pc were for diesel, while 17.82pc were for benzene. The number of fuel stations increased from 682 to...


Commercial Bank Collects $3.2b in Foreign Currency

The Commercial Bank of Ethiopia (CBE) announced robust performance in foreign currency collection for the past fiscal year, achieving 3.2 billion dollars in total mobilisation. This includes 2.07 billion dollars in remittances, with the Bank's Diaspora banking service and CBE Birr contributing 89.9 million dollars to the total. The performance details were shared during CBE's annual review meeting last week. "This achievement is particularly gratifying given the challenging economic climat...