Ethiopia's Economic Reforms Drive Revenue Growth and Lower Inflation

Ethiopia, 19 January 2026 The Ethiopian government has reported notable progress in revenue mobilisation and macroeconomic stabilisation as it continues to roll out wide-ranging fiscal and monetary reforms aimed at supporting sustainable growth and strengthening confidence in the national economy. Speaking to local media, Revenue Minister Aynalem Nigussie said the government collected approximately 709 billion Ethiopian birr ($4.54 billion) in the first half of the current fiscal year—an increase of 256 billion birr ($1.64 billion) compared with the same period last year. She added that authorities are targeting total revenues of 2.1 trillion birr ($13.44 billion) by the end of the fiscal year through improved tax efficiency and a broader compliance base. Nigussie noted that the next phase of reforms will prioritise expanding technology-driven tax administration systems, tightening measures against tax evasion, and building a tax framework grounded in trust and partnership between taxpayers and the revenue authority. Separately, National Bank of Ethiopia Governor Ayub Tekalign said recent economic reforms have modernised monetary policy, restructured the foreign exchange system, and strengthened the resilience of the financial sector. He said these measures have had a direct impact on inflation, which declined from above 30 per cent in June 2019 to 9.7per cent by December 2025, reflecting marked improvements in monetary stability management. Tekalign also pointed to progress in narrowing the gap between official and parallel exchange rates, expanding private-sector credit to 77per cent, and the creation of 254 million digital financial accounts—signalling rapid advances in financial inclusion and digital transformation across the country.