• Ethiopia expects $261 million in new IMF disbursements under its Extended Credit Facility (ECF).
• The IMF says the reform program delivers favourable macroeconomic results, including faster growth and lower inflation.
• Total disbursements under the ECF arrangement will reach about $2.13 billion.

The agreement that Ethiopia and the IMF concluded under the Extended Credit Facility (ECF) aims to correct the country’s macroeconomic imbalances and restore the sustainability of its public debt. The program remains central to Ethiopia’s broader reform agenda.

Ethiopia expects to receive $261 million from the IMF after the institution completed the fourth review of the ECF-supported program, according to a statement published on Wednesday, 10 December 2025. The authorities view the disbursement as essential to stabilising the external and fiscal position.

The financing will help cover Ethiopia’s balance-of-payments requirements and budget funding needs. It will also support implementation of the Home-Grown Economic Reform (HGER) program, which aims to correct macroeconomic distortions and lay the foundation for private-sector-led growth.

Nigel Clarke, IMF Deputy Managing Director, said: “The progress under Ethiopia’s Home-Grown Economic Reform (HGER) program continues, with favourable macroeconomic outcomes. Available indicators show accelerated growth since mid-2024, supported by strong gold, electricity, and agricultural production. Goods exports have more than doubled in value, inflation has declined and public revenues have increased sharply.”

He emphasized that the new disbursement will bring total IMF financing under the arrangement to about $2.13 billion.

Despite robust economic growth estimated at 8.1% in 2023/2024, Ethiopia continues to face major economic and social constraints. The country posts a low human development index of 0.38, while per-capita income remains limited at about $1,020. Persistent inflation, estimated at 17.5% at end-September 2024, and a chronic shortage of foreign exchange continue to weigh on imports and medium-term macroeconomic stability.

At the end of the discussions, the IMF urged Ethiopian authorities to continue monetary, financial and foreign-exchange market reforms to strengthen macroeconomic stability, contain inflation and support the expansion of private-sector-driven growth. The Fund stressed that sustained reform momentum remains vital.

Ethiopia concluded a 48-month, $3.4 billion ECF agreement with the IMF on 29 July 2024. The arrangement represents a key step in the country’s external debt-restructuring process. Ethiopia’s external debt stood at $28.5 billion at end-2023.

This article was initially published in French by Ingrid Haffiny (intern)

Adapted in English by Ange Jason Quenum