Ethiopian President Taye Atske Selassie announced on October 6, 2026, at a joint parliamentary session in Addis Ababa, that the country's economy is projected to grow by 10.1% in the 2026/2027 fiscal year. This follows a 10.2% expansion in 2025/2026, cementing Ethiopia's position among Africa's most dynamic economies according to the IMF.
Record Export Revenues
Annual export revenues reached a historic high of $11.2 billion, while foreign direct investment (FDI) inflows rose to $4.5 billion. These results reflect the government's strategic fiscal measures aimed at diversifying the economic base and strengthening domestic revenue collection.
Government Renewed for Five Years
Prime Minister Abiy Ahmed, whose Prosperity Party won the June 1 general elections by a landslide, was re-appointed for a new five-year term. The new federal government was formed in the same week, signalling political continuity that markets had been watching for.
Why It Matters for the Indian Ocean
Ethiopia is an expanding trade partner for Indian Ocean nations. Rising FDI and exports strengthen Addis Ababa's position as East Africa's key logistics and industrial hub — a market of 130 million people less than five hours by air from Mauritius or Réunion. For regional investors, Ethiopia represents a direct gateway to Africa's fast-growing interior.
Source: The Star / Xinhua, 7 October 2026.