Ethiopia Posts Record Foreign Exchange Inflows of USD 18 Billion.

Ethiopia generated more than USD 18 billion in foreign exchange inflows over the first six months of the current fiscal year, marking a record performance and strengthening the country’s external position amid ongoing economic reforms, Prime Minister Abiy Ahmed (PhD) told Parliament.

Presenting the government’s mid-year economic update, the Prime Minister said foreign exchange earnings were driven by strong performance across exports, services, remittances, investment inflows, and external financing.

According to the briefing, exports of goods generated USD 5.1 billion, exceeding the government’s initial target of USD 4.2 billion for the period. Service exports contributed USD 4 billion, while remittance inflows reached USD 4.6 billion, reflecting continued support from the Ethiopian diaspora.

Foreign direct investment added USD 2.3 billion, and aid and concessional loans exceeded USD 2 billion, lifting total foreign exchange inflows to over USD 18 billion in the six months.

Against these inflows, Ethiopia’s import bill stood at USD 11.3 billion, underscoring persistent demand for foreign currency to finance fuel, capital goods, and consumer imports. The figures suggest a narrower external gap compared with previous years, supported by improved export and remittance performance.

The Prime Minister also updated lawmakers on fiscal developments, saying the federal government collected 709 billion birr in tax revenue during the first half of the fiscal year. On the back of the strong mid-year performance, the administration has revised its revenue expectations upward, now targeting 1.5 trillion birr in federal tax collection by the end of the fiscal year in July. Regional governments are expected to raise an additional one trillion birr.

While acknowledging the scale of the target, Abiy said the government intends to push for higher revenue mobilisation to support public spending and reduce reliance on borrowing.

The figures come as Ethiopia continues to implement macroeconomic and institutional reforms aimed at boosting export-led growth, strengthening foreign exchange availability, and improving fiscal sustainability under its broader reform agenda.