The Ministry of Finance has presented its nine-month financial report to the House of Representatives.
According to the report, Ethiopia has received $4.5 billion from loans and grants over the past nine months. Of this amount, 54 percent came from grants, while $849 million was obtained through loans.
The World Bank contributed $1 billion of the total, reflecting a strong relationship between Ethiopia and the institution.
The Ministry of Finance also reported that 356.5 billion birr was targeted for tax collection, with 338 billion birr successfully collected.
Additionally, 739 million birr was collected from current and overdue payments from government organizations that have been privatized, against a target of 760 million birr.
The Ministry detailed that 470 billion birr has been disbursed from the central treasury, with 153.5 billion birr allocated to national regional governments for the 2016 fiscal year.
Ethiopia currently holds $29 billion in foreign loans, half of which is owed to China, and is seeking an extension on its loan repayment period.
Prime Minister Abiy Ahmed mentioned in a recent discussion with tax-paying businessmen that Ethiopia has repaid $10 billion in loans over the past five years.
Despite this, other creditors and lending institutions, excluding China, have been reluctant to extend the repayment period.
A month ago, the Ministry of Finance announced that Ethiopia and the World Bank signed an aid and loan agreement worth $1.72 billion (97 billion birr).
Ethiopia is also negotiating for a $10 billion loan from the World Bank and the IMF, although these negotiations have been challenging, with international lenders setting preconditions such as the devaluation of the birr against the USD.
Ethiopia’s economy faces multiple challenges, including war, the COVID-19 pandemic, climate change, rising living costs, and international pressures.
Although the war in northern Ethiopia has ceased following an African Union-brokered peace agreement, conflict persists in the Amhara region.
Additionally, the Ethiopian Maritime Transport and Logistics has reported that the ongoing conflict between Israel and Hamas has disrupted trade flow through the Red Sea, affecting Ethiopia’s import and export activities.
Major shipping companies have halted operations at the port of Djibouti, complicating the movement of goods, particularly Ethiopian coffee exports, and contributing to a decline in trade.
