Addis Ababa, March 20, 2025 (ENA) – Ethiopia's Prime Minister Abiy Ahmed stated that the country's export revenues over the last eight months have surpassed the highest yearly export earnings recorded previously.
Abiy stated that over the past eight months, Ethiopia has seen export revenues reach $4.5 billion, which represents a notable success for the country’s economy.
Today, he emphasized the country's significant economic advancement, highlighting the government’s targeted initiatives aimed at maintaining this pace during a meeting with the House of People's Representatives.
By sustaining this pace over the coming four months, we will reach an all-time high in export earnings for Ethiopia, bringing us nearer to our objective outlined in the bold decade-long strategy.
He mentioned that significant income from various sources has also been obtained, which includes $4.7 billion from services, $3.7 billion from remittances, and $2 billion from foreign direct investments (FDI).
Concerning imports, Abiy stated that expenditure reached $10.5 billion over the last eight months.
Out of this total sum, 3 percent went towards importing raw materials, while more than 21 percent was designated for industrial capital goods, highlighting an emphasis on crucial industries.
Regarding financial issues, the leader mentioned that although tax collections have risen above 580 billion Birr in the past eight months, spending remains high because of significant subsidies and wage hikes.
The expenses related to fuel and fertilizer subsidies along with wage hikes have imposed a considerable financial strain. Nonetheless, progress is being observed.
Prime Minister Abiy also spoke about the country's financial obligations, noting that recent discussions regarding debt restructuring have led to savings of $3.5 billion.
"This represents a considerable accomplishment as it enables us to conserve resources from business loans acquired for initiatives launched in prior years," he emphasized.
In addition, he stated that Ethiopia's foreign exchange reserves have surged over twofold since 2019, hitting an all-time peak in the country’s record.
Over the past century in Ethiopian history, Ethiopia has not experienced such high levels of reserves as it does today.
Regarding inflation, the Prime Minister noted a considerable decrease from around 29 percent during the previous Ethiopian fiscal year to 15 percent this month.
Abiy explained this as a significant triumph due to advancements in financial reforms, managed budget deficits, higher output levels, and farmers selling directly in the supply market.
Furthermore, the leader unveiled strategies to initiate local fertilizer manufacturing aimed at decreasing reliance on foreign imports.
"We provide subsidies of 3,700 Birr per quintal for fertilizers and 28 Birr per liter for fuels. Once the Grand Ethiopian Renaissance Dam (GERD) is complete, we plan to concentrate on producing domestic fertilizers, an essential step towards sustainable solutions," he clarified.
The administration is considering various approaches to set up fertilizer plants via partnerships, private sector involvement, or direct funding from the public sector.
"Decreasing inflation and rising exports are yielding positive outcomes," stated Prime Minister Abiy Ahmed, emphasizing his administration’s dedication to maintaining economic stability and fostering development.
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