The head of the International Monetary Fund (IMF), Kristalina Georgieva, will visit Ethiopia on February 8 and 9 as the country continues its extensive economic reforms.
Ethiopia, a nation of approximately 120 million people, has introduced several liberalising measures in recent months to attract investment. While the economy remains largely state-controlled, the country recently launched its first stock exchange and has allowed its currency, the birr, to float freely against the dollar since July 2024.
Maintaining a fixed currency peg had become unsustainable, depleting Ethiopia’s financial reserves. The IMF made the floating of the currency a prerequisite for unlocking a $3.4 billion aid package.
During her two-day visit, the first to Ethiopia since assuming the role of IMF managing director in 2019, Georgieva will meet Prime Minister Abiy Ahmed and senior officials. Discussions will focus on Ethiopia’s economic outlook, policy priorities, and ongoing reforms, according to a statement from the finance ministry.
In October, the IMF commended Ethiopia’s economic reforms, stating they were “continuing well” and had led to “improved foreign currency availability”.
Ethiopia, Africa’s second most populous nation, experienced robust economic growth between 2004 and 2019, frequently surpassing 10 percent annually.
Since taking office in 2018, Abiy Ahmed has strongly advocated economic reform. However, progress has been hampered by the Covid-19 pandemic, the war in Ukraine, and a costly civil war in the northern Tigray region, which is estimated to have incurred losses of around $20 billion.
Inflation, which peaked at 33.9 percent in 2022, declined to 23.9 percent last year and is projected to fall further to 13.3 percent by 2026. GDP growth stood at 6.1 percent in 2024, with IMF forecasts predicting an increase to 6.5 percent this year.
