Ethiopia is experiencing spectacular economic growth and now aims to channel this into jobs and investment. Reforms, agriculture, energy and digital technology: the country is deploying a range of measures to accelerate its transformation and also intends to boost its appeal to investors.
Ethiopia is cementing its place amongst the continent’s most dynamic economies. In 2025, its GDP grew by 9.8 per cent, reaching around $126 billion, according to the World Bank. With a population of over 135 million and nearly two million new entrants to the labour market each year, the country has a vast market and an abundant workforce. However, with per capita GDP still below $1,000, the challenge now is to translate this growth into jobs, incomes and tangible improvements in living standards.
Ethiopia used to be a country that relied on support from other nations. Today, it is able to ensure its own food security. It has even reached a stage where, beyond meeting its own needs, it can also provide support to other countries.
Abiy Ahmed, Prime Minister
Since 2024, reforms supported by the IMF have been gradually liberalising the foreign exchange market, opening up certain sectors to private and foreign capital, and strengthening the financing of the economy. These reforms are beginning to yield results. According to the Ethiopian Investment Commission, approximately $4.4 billion in foreign direct investment was attracted during the 2025/2026 financial year. And last March, the Invest in Ethiopia 2026 forum concluded with the signing of investment agreements worth around $13.1 billion, across sectors as diverse as industry, agriculture and agri-food, energy, construction and mining.
We have implemented artificial intelligence designed to be human-centred and ethical. We understand that good governance must go hand in hand with competence and efficiency. The energy transition, the development of a manufacturing sector suited to our times, and activities linked to the digital economy all rely on these strengths. Under this initiative, beyond the potential to facilitate payments, we must also expand the use of national payment methods. This would also help to reduce costs and stimulate regional trade.
Abiy Ahmed, Prime Minister
The country has another major asset: its vast domestic market and its strategic position in East Africa; and, thanks to Ethiopian Airlines, the country intends to capitalise further on its integration into African and international markets. However, the challenge remains considerable. Despite the progress made, access to electricity remains inadequate. According to the World Bank, the level of electricity access deemed sufficient reached only 44 per cent of the population in 2025, meaning nearly 71 million people were still without adequate access.
