@addisstandardeng · Post #21450 · 02/19/2026, 08:50 AM
#Ethiopia’s projected double-digit growth tied to #reforms, #exports, #geopolitical risks—Foreign Policy Ethiopia’s projected double-digit economic growth follows recent reforms, export gains, and ongoing geopolitical uncertainties, according to analysis by Foreign Policy Magazine. The magazine said, the National Bank of Ethiopia recently eased foreign-exchange controls to attract investment and improve the business climate, shortly after Prime Minister Abiy Ahmed said the economy could grow 10.2% this fiscal year. The analysis notes that Ethiopia had averaged about 11% annual growth until the Tigray war in 2020 caused an estimated $28 billion in losses and left many reliant on aid. Reforms backed by the International Monetary Fund, including floating the birr and opening banking, telecom, and real estate sectors, reportedly boosted agriculture, mining, and exports despite inflation pressures. Coffee exports exceeded $2.6 billion last fiscal year, with the United States remaining a major market despite Ethiopia’s suspension from AGOA. Exports have also expanded toward Asian and Gulf markets, particularly China. Gold exports surged as well, though the outlet warns this may reflect temporary global price trends. Debt restructuring remains unresolved, with bilateral creditors, including France and China, reportedly complicating negotiations. The magazine also cites a Reuters investigation alleging Ethiopian links to Sudan’s conflict involving the Rapid Support Forces and the Sudanese Armed Forces, claims analysts link partly to tensions with Egypt over the Grand Ethiopian Renaissance Dam. Foreign Policy adds that regional frictions with United Arab Emirates alliances, tensions with Eritrea, and conflicts in the Tigray, Amhara, and Oromia Regions could challenge the country’s economic recovery. https://foreignpolicy.com/2026/02/18/ethiopia-economic-growth-projected-foreign-exchange-controls/