Ethiopia: Deepening Partnership to Accelerate Sustainable Growth and Reforms

Ethiopia stands at a pivotal juncture in its economic history, striving to navigate the complex landscape of global financial challenges. In this context, the Ethiopian government has undertaken significant financial reforms aimed at fostering sustainable growth and development. During the 2025 Spring Meetings, a high-level Ethiopian delegation, led by Finance Minister Ahmed Shide and including prominent figures such as Mamo Mihretu, Governor of the National Bank of Ethiopia, engaged in constructive discussions with Nigel Clarke, the newly appointed Deputy Managing Director of the International Monetary Fund (IMF).

This meeting was crucial for assessing the progress of Ethiopia’s macroeconomic reforms and reviewing insights from the third IMF program review mission, which took place in early April 2025. The discussions highlighted the strong momentum behind Ethiopia’s reform agenda, which is designed to unlock the country’s full economic potential by modernizing its economy, creating new growth opportunities, and fostering private sector investment. Such measures are aimed at generating jobs and improving the living standards of Ethiopians.

Minister Shide expressed gratitude for the IMF’s technical and financial support, acknowledging its pivotal role in advancing Ethiopia’s reform initiatives. The Deputy Managing Director commended the Ethiopian government for its robust reform program and the notable progress made in achieving critical macroeconomic targets, even amidst a challenging global economic environment. Key indicators such as declining inflation, a significant rise in exports, enhanced revenue mobilization, and an overall improving business climate were underscored as markers of progress.

The meeting concluded with a reaffirmation of the commitment to maintain close collaboration between Ethiopia and the IMF, ensuring sustained support for the reform agenda that aims to fast-track the country’s growth and sustainable development.

On the sidelines of the 2025 World Bank-IMF Spring Meetings, Minister Shide also met with Anna Bjerde, the World Bank’s Managing Director for Operations. This meeting focused on the ongoing success of Ethiopia’s economic reforms and the pathway toward sustainable growth. The discussions underscored the strengthened partnership between Ethiopia and the World Bank, which is pivotal in driving the country’s development agenda and fostering regional integration.

Minister Shide, along with Governor Mihretu, Senior Advisor to the Prime Minister Teklewold Atnafu, and State Minister for Finance Eyob Tekalign, provided a comprehensive overview of the progress achieved through Ethiopia’s reform initiatives. These reforms, centered on modernizing the economy, enhancing fiscal stability, and promoting private sector growth, have contributed to notable improvements in economic resilience, despite the backdrop of global challenges.

Mrs. Bjerde praised the Ethiopian government’s steadfast commitment to its reform program, highlighting significant achievements such as a substantial decline in inflation, a robust increase in exports–particularly in the gold sector–and improvements in revenue mobilization. Her acknowledgment of Ethiopia’s effective fiscal management and its success in meeting key macroeconomic targets emphasized a more favorable business environment, which is essential for attracting investment and fostering economic growth.

The meeting also addressed the World Bank’s ongoing support for Ethiopia’s development projects, ensuring that the country’s reform agenda continues to progress. Both parties expressed a shared commitment to deepening their partnership, emphasizing the importance of sustained support for Ethiopia’s long-term development objectives. Mrs. Bjerde encouraged Ethiopia to maintain its momentum on key reform initiatives and to prioritize projects that would enhance economic growth and regional connectivity.

In his remarks, Minister Shide expressed appreciation for the World Bank’s technical and financial assistance, which has been instrumental in advancing Ethiopia’s development goals. He reaffirmed Ethiopia’s determination to unlock its full growth potential by improving productivity, creating jobs, and elevating living standards across the nation. This commitment reflects the government’s recognition of the critical role that both the IMF and World Bank play in supporting Ethiopia’s ambitious development agenda.

The discussions concluded with a renewed commitment to further collaboration, reinforcing the critical role that continued World Bank support will play in Ethiopia’s efforts to accelerate sustainable growth and achieve its development aspirations. As Ethiopia continues on this path of reform and growth, the partnership with the World Bank serves as a vital cornerstone for fostering economic stability and resilience.