In Ethiopia, the government celebrates a historic turnaround. In six years, the country’s external debt has been dramatically reduced, falling from $23 billion to $4.5 billion. A feat that Prime Minister Abiy Ahmed attributes to economic reforms initiated since 2019 and better management of internal resources.
Ethiopia is entering a new economic phase. In six years, its external debt has dropped from $23 billion to $4.5 billion, according to Prime Minister Abiy Ahmed. This recovery was made possible through debt rescheduling and a strategy focused on internal resources.
“Ethiopia has undertaken long-term work to clean up its macroeconomic framework and improve its economy. Internally, notably through the massive and increased industrialization of the country. Through somewhat easier access to credit for small and medium-sized enterprises. A special emphasis was placed on improving the tertiary sector, particularly services.”
The head of government praises the success of the economic reform program launched in 2019. Public revenue has climbed from 170 billion to 1 trillion birr, while inflation has been brought down to 11.7%, its lowest level in several years.
“This reflects an improvement in the standard of living for Ethiopians. Prime Minister Abiy Ahmed continues his efforts to develop the country’s maritime access. This is a fundamental shift that, in the absence of disruptive external factors, can be sustainable.”
Despite this progress, some analysts urge caution. They believe the reported growth remains uneven, with food and rental prices staying high, particularly in major cities.