Ethiopia economic reforms attract IFC support and new investment

The International Finance Corporation (IFC) has endorsed Ethiopia’s recent economic reforms, noting that improvements in the foreign-exchange market, international reserves, and inflation are reducing barriers to private investment. IFC Managing Director Makhtar Diop highlighted that a more flexible exchange rate and better access to hard currency are critical for firms looking to repatriate profits and manage international obligations.

As part of these developments, the National Bank of Ethiopia and the IFC have signed a framework agreement to establish the country’s first mortgage refinance company. The vehicle is expected to be capitalized at 100 billion birr, with an IFC contribution of at least $200 million. This initiative supports a government goal to deliver 1.5 million homes over five years.

Beyond housing, the Ethiopian government is promoting several flagship mega-projects. These include the development of a nuclear energy facility, gas plants, an oil refinery, a large-scale fertilizer plant, and what officials describe as Africa’s largest airport.