Ethiopia is projecting an ambitious 10.2% GDP growth for the 2025/2026 fiscal year, solidifying its place among Africa’s fastest-growing economies, according to a government report unveiled during a 100-day macroeconomic review.
The country’s economic expansion—up from 9.2% last year—is being driven by strong performances across industry, agriculture, and services, with industrial growth hitting 13%, agriculture at 7.3%, and services at 7.5%.
Officials say the growth reflects Ethiopia’s ongoing structural transformation and diversification, where agriculture contributes 31.3%, industry 30.2%, and services 39.6% to the national output.
Key infrastructure projects are fueling this momentum, notably the completion of the Grand Ethiopian Renaissance Dam (GERD)—a $4.8 billion megaproject expected to enhance electricity supply, exports, and manufacturing productivity.
New fertilizer plants and natural gas initiatives are also poised to strengthen the country’s industrial and export base.
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Projections for the coming year include 7.8% growth in agriculture, 13.2% in industry, and 9.3% in services, with major gains expected from digital finance, mining, tourism, and transport.
In the first quarter of the fiscal year alone, exports topped $2.5 billion, exceeding previous targets, while loan disbursements surged 113% compared to last year—a sign of growing private-sector confidence. Digital transactions also reached $114 billion within three months.
Officials say Ethiopia’s robust performance underscores its resilience amid global economic uncertainty, positioning the nation as a pan-African growth leader powered by industrialisation, technology, and value-added exports.
