Ethiopia’s economy has demonstrated robust performance in the first quarter of the current fiscal year (FY2025/2026, beginning July 8), generating over $2.48 billion in export revenue. This figure represents a massive 65% year-on-year increase compared to the same period last year, putting the country on track to meet its ambitious annual target of $9.4 billion.
The significant growth was announced by Minister of Trade and Regional Integration Kassahun Gofe and is largely attributed to the effectiveness of the government’s ongoing macroeconomic reform programme. Specifically, the surge is driven by strong output across multiple key sectors, including coffee, gold, oilseeds, and emerging value-added manufacturing exports. Coffee exports alone generated over $760 million in the quarter, a 47% increase year-on-year, thanks to improved quality and favorable global prices.
Beyond commodity performance, the export momentum is supported by increasing trade with neighboring countries under the African Continental Free Trade Area (AfCFTA) framework, signaling successful trade diversification efforts. This economic resilience, supported by high export earnings, provides crucial foreign exchange inflows, which are vital for supporting the broader national development agenda and macroeconomic stability.
