Ethiopia Secures $261 Million IMF Disbursement Following Reform Review

By Abdullahi Salad - Reporter

Ethiopia, 22 January 2026 Ethiopia has secured an additional $261 million from the International Monetary Fund (IMF) following the successful completion of the fourth review of its economic reform programme by the financial institution.

Ethiopia’s Ministry of Finance made the announcement on Tuesday, noting that all quantitative performance criteria were met and most indicative targets were exceeded, despite a challenging global and regional environment. The review is part of the implementation of Ethiopia’s Home grown Economic Reform Agenda.

The latest support takes the total funds disbursed under the current IMF arrangement to more than $2.18 billion.

The Finance Ministry said in a statement that the economy is experiencing a combination of strong economic growth, declining inflation, improved fiscal discipline, and a gradual rebuilding of foreign exchange reserves.

Reforms in the foreign exchange market, including the introduction of transparent auctions and steps toward a market-based system, have supported export competitiveness and private sector activity, the statement noted.m.

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Revenue mobilization has exceeded projections, supported by recent tax policy and administration reforms, while spending has been managed to maintain priority investments and social programs, it added.

The statement also cited progress in restoring debt sustainability under the G20 Common Framework, including the completion of a Memorandum of Understanding with official creditors, expected to reduce uncertainty and support investment.

It added that financial sector reforms are ongoing, with steps already taken to modernize monetary policy, strengthen banking supervision, and enhance the autonomy and capacity of the National Bank of Ethiopia.

The statement said the government remains focused on translating macroeconomic stabilization into job creation, private investment, and rising incomes, while continuing reforms to support inclusive growth.

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