Ethiopia has generated $8.71bn in export revenue during the first 10 months of the current fiscal year, marking one of the country’s strongest trade performances in recent years as authorities push ahead with broad economic reforms aimed at stabilising growth and attracting foreign investment.
According to figures released by Ethiopia’s Ministry of Trade and Regional Integration, the revenue exceeded the government’s initial target of $7.25bn by 20%, reflecting a sharp acceleration in export activity across several key sectors. The ministry also reported that export earnings increased by $6.08bn compared with the same period in the previous fiscal year, representing annual growth of 43.32%.
The latest figures offer a significant boost for the government of prime minister Abiy Ahmed, which has faced mounting economic pressures in recent years, including foreign currency shortages, high inflation and the lingering impact of internal conflict on trade and investment.
Officials attributed the strong export performance to ongoing policy reforms and improved coordination between exporters, producers and government agencies. Kasahun Gofe, Ethiopia’s minister of trade and regional integration, described the results as “highly encouraging” and said authorities would continue efforts to maintain momentum through the remainder of the fiscal year.
“We are witnessing substantial progress in export trade due to strategic reforms and the commitment of stakeholders across the sector,” Gofe said during remarks reported by state-affiliated media.
The surge comes amid Ethiopia’s ambitious macroeconomic reform programme, which includes the liberalisation of the country’s foreign exchange market introduced in July 2024. The reforms were backed by international financial institutions including the International Monetary Fund, which has urged Addis Ababa to modernise its tightly controlled currency system and improve investor confidence.
While the easing of currency controls initially triggered volatility in the Ethiopian birr and contributed to inflationary concerns, officials argue the changes are beginning to improve export competitiveness by narrowing the gap between official and parallel market exchange rates.
Economists say the reforms may help address one of Ethiopia’s long-standing economic weaknesses: limited foreign currency reserves. Businesses across the country have struggled for years with restricted access to hard currency needed for imports, while exporters often complained about inefficiencies and reduced incentives under the previous exchange rate regime.
Coffee remains Ethiopia’s leading export commodity, consistently accounting for roughly one-third of annual export earnings. The country, widely regarded as the birthplace of Arabica coffee, exports to major global markets including China, Saudi Arabia, Germany and the United States.
In addition to coffee, export growth has been supported by rising shipments of gold, oilseeds, livestock products and electricity. Government officials say manufacturing exports are also beginning to recover after years of underperformance linked to supply chain disruptions and political instability.
Despite the positive figures, analysts caution that Ethiopia still faces considerable economic challenges. Inflation remains elevated, debt servicing pressures persist and logistical bottlenecks continue to affect trade flows in Africa’s second-most populous nation.
Nevertheless, the latest export data is likely to strengthen confidence in Ethiopia’s reform agenda as the government seeks to position the country as a major manufacturing and export hub in east Africa. Officials say sustaining export growth will remain central to efforts to rebuild foreign reserves, stabilise the currency and reduce dependence on external borrowing.