- The Ministry of Finance reported Ethiopia’s total public debt at USD 51.8 billion, comprising USD 33.5 billion in external debt and USD 18.3 billion in domestic borrowing.
- Only USD 2 billion of a planned USD 3.1 billion in external financing was secured, leaving a USD 1.1 billion gap. The federal government remains responsible for most of the debt.
Market Impact:
The debt increase and financing shortfall could pressure government budgets, lead to higher domestic borrowing and raise borrowing costs for businesses if private credit is crowded out.
Key Numbers:
- USD 51.8 billion — total public debt.
- USD 33.5 billion — external debt.
- USD 18.3 billion — domestic debt.
- USD 1.1 billion — external financing shortfall.
Business Signal:
Rising debt underscores macroeconomic risks and may prompt further fiscal consolidation or additional engagement with multilateral lenders to close funding gaps.