IMF to Unlock $345m in Loans, Concluding Ethiopia Deals First Review

Sep 29 , 2024


[ssba-buttons]

Alvaro Piris, chief of the International Monetary Fund's (IMF) staff team, struck a bullish tone completing a two-week visit to Addis Abeba — an optimistic shift from his language of despair over the past three years. The change follows the conclusion of the first review of a four-year program agreed upon with Ethiopian authorities. Members of his team, over 20, met with Minister of Finance Ahmed Shide, Central Bank Governor Mamo Mihretu, and the Prime Minister’s macroeconomic and monetary policy advisors during their visit from September 17 to 26, 2024. "The staff team is grateful to the authorities for good discussions and their strong action to ensure the success of the IMF-supported economic program," said Piris in a statement. His team urged the Board yesterday to grant Ethiopia access to about 345 million dollars in much-needed financing, to be disbursed beginning in the coming weeks. Previous statements from the IMF had focused on ongoing talks and snail progress but had stopped short of announcing a formal agreement. However, an agreement came after several rounds of discussions where optimism was cautiously expressed but tangible outcomes remained elusive. "Ethiopia's economic reform program, including the transition to a market-determined exchange rate, is advancing well," said Piris. "The new exchange rate regime is alleviating the acute shortage of foreign exchange that previously existed, lifting a significant impediment to economic activity." The IMF’s Executive Board approved a 3.4-billion credit facility in July this year after the authorities agreed to liberalise the economy, particularly the foreign exchange market regime. Key elements of the reform include a tight monetary policy to reduce inflation and end the government's monetary financing. A temporary fiscal spending package is also planned to cushion the socio-economic impact of the reforms.


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...