Ethiopia export growth and trade deficit initiatives

Ethiopia is implementing strategies to increase export earnings and address foreign exchange pressures. For the 2026/27 fiscal year, the government has set an export target of $13.4 billion, aiming for a 20 percent increase over the previous period. Trade and Regional Integration Minister Kassahun Gofe indicated that the strategy will shift from increasing volume to emphasizing value addition, product quality, and international competitiveness through modernized digital trade systems and market diversification.

A key component of this drive involves addressing the significant trade deficit with China. While Ethiopian exports to China have grown by an average of 92 percent annually over the last five years, imports from China reached approximately $21 billion in the 2025/26 fiscal year, compared to only $369 million in exports. To mitigate this imbalance, Ethiopian and Chinese companies recently signed 33 cooperation agreements valued at over $330 million, targeting sectors such as coffee, oilseeds, leather, and textiles.