Prime Minister Abiy Ahmed (PhD) revealed that Ethiopia financial sector has achieved remarkable growth this fiscal year, marked by a staggering 12.5 trillion birr in digital transactions.

The Prime Minister highlighted the rapid expansion of digital financial services, noting that the number of mobile money users has surged to 55 million.

Furthermore, digital loans totaling 24.5 billion birr have been disbursed to 11 million micro and small borrowers, greatly enhancing financial inclusion across the country.

Ethiopia’s financial sector performance, alongside positive developments in agriculture, industry, mining, and services, strongly supports the national GDP growth target of 8.4% for the year.

The impressive growth can be attributed to comprehensive macroeconomic reforms aimed at addressing key challenges, such as macroeconomic imbalances and a less conducive environment for private sector growth.

Additionally, Ethiopia’s export reform efforts have yielded substantial results:

• Export revenues exceeded $8.1 billion, surpassing targets by $3 billion and more than doubling last year’s figures.
• The country attracted $7 billion in remittances and $4 billion in foreign direct investment, contributing to a total of $32 billion in foreign exchange earnings, excluding loans and grants.

The government has demonstrated a strong commitment to responsible fiscal management, repaying 92 billion birr in debt this year. A landmark $3.5 billion debt restructuring agreement signed in France has further reduced Ethiopia’s debt burden, enhancing macroeconomic stability.

To address inflation and ease the cost of living, the government has ended borrowing from the National Bank and introduced targeted subsidies worth 350 billion birr to support vulnerable populations.

The industrial sector also showed notable progress, with production capacity rising from 59% to 65%, driven by the Made in Ethiopia initiative. Key figures include:

• Cement production increased by 16%.
• Metal production rose by 18%.
• New factories for solar panels and glass are set to launch soon.

The service sector flourished, hosting over 150 international conferences and attracting nearly 1.3 million foreign tourists. Ethiopian Airlines expanded its network to 136 destinations, transporting over 19 million passengers, while the national railway corporation made significant improvements in facilitating trade.

These comprehensive reforms and sectoral achievements underscore Ethiopia’s commitment to transforming its economy and improving the lives of its citizens. As the nation continues on its path of growth and development, the government remains focused on fostering an inclusive and sustainable economic environment.