Ethiopia’s financial landscape has been dramatically overhauled, with Prime Minister Abiy Ahmed announcing that the nation’s foreign debt has plummeted from a staggering $23 billion to just $4.5 billion following a successful rescheduling programme.

Addressing the House of People’s Representatives this week, the Prime Minister championed his government’s 2019 Homegrown Economic Reform Programme, stating, “The economy is growing without foreign loans. We have built a system that stands on Ethiopia’s own capacity.”

Ahmed detailed how the reforms have stabilized the economy and boosted domestic earnings.

Annual government revenue, which once stood at 170 billion birr (about $2.95 billion), is now projected to reach 1 trillion birr (about $17.3 billion).

Furthermore, the government spent 440 billion birr ($7.6 billion) in subsidies—primarily on fuel, fertiliser, and public sector salaries—to “stabilise inflation,” which has dropped to 11.7%, its lowest in years.

However, analysts caution that the macroeconomic recovery has yet to translate into tangible relief for ordinary citizens, as food and rent prices remain stubbornly high, continuing to affect household purchasing power.

Source : Business Insider Africa