Ethiopia export earnings hit record US$10.7bn as reforms boost foreign exchange

According to the Ministry of Trade and Regional Integration, export revenues exceeded the government’s annual target by 14%, achieving 114% of the planned objective. Trade Minister Kassahun Gofe announced the results during the ministry’s annual performance review, describing the outcome as a historic milestone for Ethiopia’s trade sector.

Reforms begin translating into export growth

The record comes at a pivotal moment for Ethiopia’s economy. The government has been implementing wide-ranging reforms aimed at rebuilding investor confidence, easing chronic foreign-exchange shortages and restoring macroeconomic stability.

A key milestone was the decision to float the birr in July 2024 as part of the country’s US$3.4 billion International Monetary Fund (IMF) programme. Although the move resulted in a sharp depreciation of the currency, it was intended to improve export competitiveness, attract investment and support Ethiopia’s long-running debt restructuring process.

Stronger exports have become central to the government’s recovery strategy. Higher foreign-exchange earnings provide the hard currency needed to finance imports, meet external debt obligations and support industrial production.

Coffee continues to lead export earnings

While the ministry did not publish a detailed commodity breakdown, coffee remains Ethiopia’s largest export earner.

The Ethiopian Coffee and Tea Authority recently confirmed that coffee exports generated a record US$3 billion during the 2025/26 fiscal year, reinforcing Ethiopia’s position as the world’s leading producer of Arabica coffee.

Other major export sectors include gold, oilseeds, horticultural products, livestock and livestock products, as well as textiles, highlighting a gradually broadening export base.

Trade infrastructure and business services expand

Alongside stronger exports, the government reported significant progress in improving the business environment.

More than 3.4 million online business registration and licensing services were processed during the fiscal year, surpassing official targets. Authorities also carried out over 2.9 million post-licensing inspections as part of efforts to strengthen regulatory compliance and formalise business activity.

Domestic trade infrastructure also expanded. The government established 804 new weekend market centres, increasing the national total to 2,369. These markets are intended to connect producers directly with consumers, improve price discovery and reduce distribution costs.

In addition, 31 modern market centres were completed, while two of the ten planned livestock market centres have already been commissioned.

Stronger exports support Ethiopia’s recovery story

For investors, the record export performance provides fresh evidence that Ethiopia’s reform programme is beginning to generate tangible economic results.

Higher export earnings strengthen foreign-exchange reserves, improve external liquidity and support macroeconomic stability—three key considerations for international lenders and investors assessing Ethiopia’s recovery.

However, sustaining this momentum will require broader diversification beyond coffee and gold. Expanding industrial exports, improving manufacturing competitiveness and maintaining reform momentum while containing inflationary pressures from the weaker birr will be critical to achieving durable export-led growth.

The post Ethiopia export earnings hit record US$10.7bn as reforms boost foreign exchange appeared first on FurtherAfrica.