Significant Growth in Ethiopia’s Revenue Collection Amid Economic Resilience
Addis Abeba – The Ethiopian federal government has reported a remarkable surge in revenue collection, amassing 323 billion birr in the first quarter of the fiscal year, a substantial increase compared to 152 billion birr during the same period last year. This accomplishment was revealed by Dr. Fitsum Assefa, Minister of Planning and Development, during the government’s 100-day performance report for the fiscal year 2018 (July 2025 – June 2026).
Focused Efforts Yield Positive Results
Dr. Fitsum highlighted that the government has taken targeted measures to enhance revenue collection across various sectors, which has significantly contributed to this positive trend. The minister’s report underscores the various economic streams, including foreign trade and investment, which have bolstered the nation’s financial position.
Key Statistics from the First Quarter
- Gold Exports: Generated $1.2 billion.
- Coffee Exports: Yielded $763 million.
- Remittance Inflows: Reached $2.3 billion.
- Foreign Direct Investment (FDI): Recorded at $961 million.
Financial Sector Performance
The rapid growth in revenue is paired with significant developments in Ethiopia’s financial sector. The total deposit reserve has now surged to 3.73 trillion birr, illustrating an expansive growth trend in credit extended across sectors. The financial health of the country indicates a vigorous pace of lending, essential for supporting ongoing economic activities.
Economic Growth and Projections
In its performance review presented to the Council of Ministers, the government also assessed global economic trends, macroeconomic developments, and Ethiopia’s growth outlook. The Office of the Prime Minister stated that despite challenges in the global economy, “Ethiopia continues to demonstrate distinctive resilience and momentum.”
Recent Economic Metrics
- GDP Growth: Ethiopia’s economy grew by 9.2% in the 2017 fiscal year, driven by various sectors:
- Agriculture: 7.3%
- Industry: 13%
- Services: 7.5%
Future Outlook for Ethiopia’s Economy
The government anticipates 10.2% GDP growth for the current fiscal year, propelled by ongoing reforms and substantial investments, particularly in infrastructure. Significant projects, including the Grand Ethiopian Renaissance Dam (GERD), are expected to play a crucial role in achieving these targets.
Sectoral Growth Expectations
- Agriculture: Projected growth of 7.8%.
- Industry: Expected to expand by 13.2%.
- Services: Anticipated growth of 9.3%.
With commodity exports reaching $2.5 billion in the first quarter, exceeding both expectations and last year’s figures, Ethiopia’s financial environment remains robust.
Conclusion: A Positive Economic Trajectory
Overall, the performance report illustrates a promising outlook for Ethiopia, indicating progress toward structural transformation and sustainable economic growth. With increasing trade, investment, and digital finance activity contributing to the economy, Ethiopia stands poised for a future of increased prosperity and stability.
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