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Ethiopia's Financial Boom: Federal Revenue Soars 112% in Three Months

Published 4 hours ago2 minute read
Precious Eseaye
Precious Eseaye
Ethiopia's Financial Boom: Federal Revenue Soars 112% in Three Months

Ethiopia's federal government has demonstrated a robust economic performance in the first three months of the current Ethiopian fiscal year (July 2025 - June 2026), collecting a substantial 323 billion birr in revenue. This figure represents a significant increase from the 152 billion birr collected during the same period last year, a testament to the focused efforts undertaken by the government to strengthen revenue collection across various sectors. The Minister of Planning and Development, Fitsum Assefa (PhD), presented these findings as part of the government's 100-day performance report.

Key economic indicators further underscore this positive trend. Gold exports contributed $1.2 billion, while coffee exports brought in $763 million over the past three months. Remittance inflows reached an impressive $2.3 billion, and foreign direct investment (FDI) was recorded at $961 million, highlighting strong external sector performance. The financial sector also saw significant growth, with the total deposit reserve reaching 3.73 trillion birr. Fitsum Assefa noted an "unusual rate" of growth in the volume of credit extended to various sectors, indicating increased economic activity.

The 100-day performance review, presented to the Council of Ministers, also assessed global economic trends and Ethiopia's macroeconomic developments and growth outlook. Despite challenges in the global economy, the Office of the Prime Minister affirmed Ethiopia's "distinctive resilience and momentum." The nation's economy grew by 9.2 percent in the preceding 2017 Ethiopian fiscal year, driven by robust expansions in agriculture (7.3%), industry (13%), and services (7.5%). Agriculture constituted 31.3% of GDP, industry 30.2%, and services 39.6%.

Looking ahead, the government projects an even higher GDP growth rate of 10.2 percent for the current fiscal year. This optimistic forecast is bolstered by ongoing reforms, large-scale investments, and major infrastructure projects, including the completion of the Grand Ethiopian Renaissance Dam (GERD) and new ventures in fertilizer production and gas development. Sectoral forecasts predict continued expansion, with agriculture expected to grow by 7.8%, industry by 13.2%, and services by 9.3%, supported by rising trade, transport, tourism, and digital activity.

Commodity exports in the first quarter reached $2.5 billion, surpassing both set targets and last year's performance. Loan disbursement by the financial sector surged by 113 percent compared to the same period last year, and digital finance transactions amounted to 6.5 trillion birr within three months. The Office of the Prime Minister concluded that the overall performance "indicates a better outlook on all fronts," reinforcing Ethiopia's commitment to structural transformation and achieving sustainable, inclusive economic growth.

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