Ethiopia’s export earnings have reached a record $11.2 billion, signalling a potentially significant shift in the country’s trade performance as foreign-exchange reforms begin to reshape its economy.
President Taye Atske Selassie announced the latest figures while addressing Ethiopia’s parliament at the opening of the new fiscal year, presenting the export performance alongside stronger foreign investment, manufacturing growth and rising domestic revenue.
Foreign direct investment reached $4.5 billion during the same period, while manufacturing output expanded by 15.8%. Domestic revenue climbed to almost 1.98 trillion birr, with credit supplied to the economy reaching 1.3 trillion birr.
The figures come as Ethiopia continues to implement major economic reforms following years of pressure from currency shortages, inflation, internal conflict and global economic volatility.
Agriculture remains central to the country’s export potential. Annual crop production increased from approximately 335 million quintals seven years ago to 1.3 billion quintals during the 2025/26 fiscal year.
The government has linked the substantial increase in agricultural production to the broader improvement in export earnings, although the president did not identify specific commodities responsible for the record performance.
Ethiopia has traditionally relied on agricultural commodities including coffee, sesame and cut flowers as important sources of export revenue. Higher production across the agricultural economy could provide the country with greater capacity to expand these exports while supporting the development of additional value-added products.
The growth also highlights the importance of agricultural productivity to Ethiopia’s wider trade strategy. Increasing production can create opportunities for processors, exporters, logistics companies and manufacturers if stronger connections are established between farms and international markets.
A key factor behind the changing export environment has been Ethiopia’s foreign-exchange reform programme.
In 2024, the country moved towards a market-determined exchange rate for the birr, replacing the previous managed system. The reform was introduced as part of an economic restructuring programme and was intended to narrow the gap between official and parallel exchange rates, improve export competitiveness and create a more attractive environment for foreign investment.
The latest export and investment figures suggest the reforms are beginning to deliver measurable results.
However, the transition remains challenging. Inflation stood at 13.4% in May 2026, although this represented an improvement from earlier levels. The government is targeting a return to single-digit inflation during the current fiscal year.
Maintaining macroeconomic stability while protecting export competitiveness will therefore remain an important test for Ethiopia.
For businesses operating across Africa, the developments are significant because Ethiopia is one of the continent’s largest economies and a major market in the Horn of Africa. Sustained growth in exports and manufacturing could have implications for regional supply chains, investment flows and demand for logistics and trade services.
The combination of higher agricultural output, expanding manufacturing and increased foreign investment could also help Ethiopia gradually shift from exporting predominantly commodities towards more processed and higher-value products.
That transition would be particularly important for creating greater value within the domestic economy and strengthening the country’s position in regional and international supply chains.
The government has indicated that expanding exports, improving productivity, attracting further investment and strengthening domestic revenue mobilisation will remain priorities in the new fiscal year.
If Ethiopia can sustain the momentum while bringing inflation lower and improving access to foreign exchange, its record $11.2 billion export performance could represent more than a short-term increase in trade revenue.
It could mark the early stages of a broader transformation in Ethiopia’s role in African and global trade.