Ethiopia Secures $261 Million IMF Disbursement Amid Reform Progress

Getting your Trinity Audio player ready... The International Monetary Fund has approved a new disbursement of $261 million for Ethiopia after completing the fourth review of the country’s 48‑month Extended Credit Facility (ECF) programme. The latest release brings total IMF disbursements under the programme to just over $2.18 billion, out of a total package valued at approximately $3.4 billion. The funds are intended to help Ethiopia cover balance‑of‑payments pressures and support budgetary needs during a period of continued economic reform. According to the IMF, Ethiopia’s economic performance has exceeded expectations. The Fund cited strong growth, higher exports, improved revenue collection, and rising foreign exchange reserves, while noting that inflation continues to ease. The ECF programme supports Ethiopia’s Homegrown Economic Reform Agenda, which aims to correct long‑standing macroeconomic imbalances while laying the foundation for private‑sector‑led growth. The IMF confirmed that Ethiopia met all key quantitative targets and most structural benchmarks under the programme. However, the Fund also noted that the federal budget for the current fiscal year deviated from earlier programme assumptions. Ethiopian authorities have committed to new measures to ensure the deficit remains manageable and that spending aligns with agreed programme objectives. The IMF urged Ethiopia to maintain tight monetary policy to keep inflation under control, continue reforms to the foreign exchange market, and push ahead with tax and customs reforms aimed at broadening the tax base. On debt restructuring, the Fund welcomed progress under the G20 Common Framework, including the signing of a memorandum of understanding with official creditors. Negotiations with private creditors remain ongoing. IMF Deputy Managing Director Nigel Clarke said reforms in foreign exchange policy, monetary management, revenue mobilisation and financial regulation were delivering “encouraging results,” while stressing that maintaining reform momentum will be critical to Ethiopia’s medium‑term growth and poverty‑reduction goals. For Ethiopia, the latest IMF disbursement signals continued international confidence in its reform path at a time when economic stability remains closely linked to sustained policy discipline and institutional credibility. And as with many African economies navigating reform under pressure, Ethiopia’s story reflects a broader reality: progress is not linear, comparison is rarely fair, and transformation takes time. The continent remains young, adaptive, and resilient, with today’s reforms shaping the foundations for a more stable and self‑directed future. IMF Ethiopia, Ethiopia IMF loan, IMF Extended Credit Facility, Ethiopia economy 2026, Ethiopia IMF disbursement, Ethiopia economic reforms, IMF Africa funding, Ethiopia balance of payments, Ethiopia budget support, IMF Nigel Clarke, Ethiopia inflation easing, Ethiopia foreign reserves, Ethiopia exports growth, Ethiopia revenue collection, Ethiopia macroeconomic reforms, IMF programme review, Ethiopia Homegrown Economic Reform Agenda, Ethiopia private sector growth, IMF Africa economy, Ethiopia debt restructuring, G20 Common Framework Ethiopia, Ethiopia IMF targets, Ethiopia fiscal policy, Ethiopia monetary policy, Ethiopia forex reform, Ethiopia tax reform, Ethiopia customs reform, IMF financial support Africa, Ethiopia poverty reduction, Ethiopia economic stability, Ethiopia development financing, Ethiopia IMF programme performance, Africa IMF loans, East Africa economy, Ethiopia budget deficit, Ethiopia structural reforms, Ethiopia growth outlook, IMF Ethiopia review, Ethiopia reform momentum, Ethiopia international finance, Ethiopia macro stability, Africa economic reforms, Ethiopia policy discipline, Ethiopia financial regulation, Ethiopia debt talks, Ethiopia private creditors, Ethiopia economic recovery, IMF Africa strategy, Ethiopia economic indicators, Ethiopia development agenda, IMF Ethiopia funding tranche, Africa multilateral finance, Ethiopia reform progress, IMF Ethiopia statement, Ethiopia fiscal management, Africa economic resilience, Ethiopia long term growth, IMF Africa engagement, Ethiopia reform credibility, Ethiopia economic transition, Africa development finance, Ethiopia international support, IMF lending Africa, Ethiopia economic outlook, Ethiopia reform programme, Africa IMF partnership, Ethiopia economic confidence, Ethiopia poverty reduction goals, Africa young economies, Ethiopia future growth