ShareEthiopia has secured a $3.4 billion loan from the IMF following the decision to float its currency. This move is part of broader reforms aimed at alleviating the country’s foreign currency shortages and attracting foreign investments. IMF’s approval follows extensive negotiations with Prime Minister Abiy Ahmed’s administration, which seeks to borrow over $10 billion from the IMF and World Bank to manage the country’s escalating debt. The Ethiopian economy has faced pressure from double-digit inflation and increasing debt repayments, with external debt exceeding $28 billion as of December 2023. The US, IMF, and World Bank withdrew their support during the war, further straining an economy already suffering from the impacts of the COVID-19 pandemic.
