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It noted that despite being one of Africa’s fastest-growing economies, with growth reaching 7.3 percent in 2023-24, Ethiopia’s financing needs far outpace its revenue generation capacity.
Ethiopia will need between USD 257 billion and USD 397 billion over the next seven years to achieve its national development priorities, a new report has revealed. The figure underscores the scale of the country’s financing challenges. The country is facing a unique situation of constants in revenue and investment flows.
The report was released during the Impact Dialogues Ethiopia Conference, held recently, under the theme ‘Aligning Priorities to Accelerate and Scale-Up Impact Investment in Ethiopia.’ It noted that despite being one of Africa’s fastest-growing economies, with growth reaching 7.3 percent in 2023-24, Ethiopia’s financing needs far outpace its revenue generation capacity.
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The federal government currently mobilizes funds from tax and non-tax revenues, which together provide USD 18.13 billion, alongside international public sources such as external debt and official development assistance (USD 4.4 billion), and international private flows like remittances, foreign direct investment, and portfolio capital of USD 16 billion.
