The agreement is now subject to approval by IMF management and the Executive Board.
The IMF team, led by Alvaro Piris, visited Addis Ababa from October 30 to November 13, 2025, with follow-up discussions held virtually and in the Ethiopian capital between December 3 and 5.
The ECF arrangement, approved by the IMF Executive Board on July 29, 2024, was initially set at $3.4 billion at the time. The fourth review, once approved, will make available approximately $261 million, bringing total IMF financial support under the ECF arrangement so far to about $2.134 million.
According to the IMF, Ethiopia has continued to make progress under its Homegrown Economic Reform agenda, achieving favourable macroeconomic outcomes. Indicators suggest accelerating growth since mid-2024, driven by strong performance in gold, electricity, and agricultural production. Goods exports have more than doubled in value, inflation has declined, and government revenue has grown significantly.
The authorities are taking steps to strengthen the functioning of the foreign exchange market, modernise the monetary policy framework, mobilise fiscal revenue, and advance the financial regulatory agenda. Maintaining reform momentum will be essential to consolidating macroeconomic stability and supporting medium-term growth and poverty reduction.
The IMF highlighted that a tight monetary stance remains appropriate to anchor inflation expectations and support price stability, while prudent expenditure management and sustained resource mobilisation are critical for fiscal sustainability. Measures to encourage private investment, including improving the business environment and enhancing competition in the foreign exchange market, were also emphasised.
On debt sustainability, Ethiopia has advanced discussions under the G20 Common Framework. A Memorandum of Understanding on key terms for a debt treatment between the Official Creditor Committee and Ethiopian authorities was agreed in July 2025, with the next step involving bilateral agreements with official creditors.
The IMF staff team praised the authorities for their constructive policy dialogue and engagement, including meetings with the Minister of Finance, the Governor of the National Bank of Ethiopia, senior officials, banks, private companies, and development partners.
–IMF/ChannelAfrica–
