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Analysis by Region - Africa

Publisher Oxford Economics
Published Jan 27, 2026
Length 6 Pages
SKU # OFE20872879

Description

Ethiopia carried strong policy reform momentum into 2026, as illustrated by the ongoing overhaul of the monetary policy framework and liberalisation of the banking sector. Moreover, the months-long stalemate between the government and bondholders has been resolved, culminating in an agreement-in-principle regarding the Eurobond exchange. In recent months, the country benefited from favourable commodity prices, with gold prices shining brightly while coffee export receipts added a jolt to hard-currency earnings. With strong price momentum in key commodities expected to carry into 2026, Ethiopia is poised to post another robust year for merchandise trade receipts. Yet, import pressure is dialling up as construction of the Bishoftu airport megaproject commenced.

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