Ethiopia set to get about $261 million funding from the International Monetary Fund (IMF) in the coming weeks, says the IMF.
The fund in its press release on Wednesday stated that IMF staff and the Ethiopian authorities have reached staff-level agreement on economic policies to conclude the fourth review of the four-year US$ 3.4 billion ECF arrangement. Once approved, Ethiopia will gain access to about $261 million.
The two sides recently reached staff-level agreement on the fourth review of Ethiopia’s economic program under the ECF arrangement. “The agreement is subject to the approval of IMF management and the Executive Board in the coming weeks,” said Mr. Alvaro Piris, who led IMF team that visited Ethiopia from October 30 – November 13, 2025.
“Maintaining reform momentum will be key to consolidating macroeconomic stability and supporting growth and poverty reduction in the medium term. A tight monetary stance continues to be appropriate to anchor inflation expectations and support price stability. Continued action will be needed to enhance competition and improve efficiency in the foreign exchange market. Prudent expenditure management and sustained resource mobilization will be critical for fiscal sustainability. Encouraging private investment will require efforts to improve the business environment,” he said.
The Fund noted that Progress under Ethiopia’s Homegrown Economic Reform (HGER) agenda continues, with favorable macroeconomic outcomes since the launch of the ECF in July 2024. “Maintaining reform momentum will be key to consolidating macroeconomic stability and supporting growth and poverty reduction in the medium term,” it said.
“Discussions continued subsequently; virtually, and in Addis Ababa during December 3 – 5, 2025. The ECF arrangement was approved by the IMF Executive Board on July 29, 2024, for an initial total amount of SDR 2.556 billion (about US$3.4 billion at that time). Subject to approval by the IMF Executive Board, the fourth review will make available about US$261 million (SDR191.7 million), bringing total IMF financial support under the ECF arrangement so far to about US$2,134 million (SDR1,598.1 million),” the IMF said.
