June 20 , 2025
The Ministry of Foreign Affairs of Ethiopia has launched a Diplomatic Guide on Ethiopia’s Homegrown Economic Reform in the presence of ministers, parliamentarians, senior officials from the Ministry and other government institutions, as well as CEOs and staff of the Ethiopian Securities Exchange and Ethiopian Investment Holdings on Monday (June 9). The Ministry of Foreign Affairs, in collaboration with the Ministry of Finance, the Ethiopian Securities Exchange, and Ethiopian Investment Holdings, prepared this comprehensive Diplomatic Guide.
In his opening remarks, Foreign Minister Gedion Timothewos outlined the significant challenges that the government encountered upon assuming leadership. He described the dire economic conditions at the time, characterized by rising inflation, a substantial debt burden, high unemployment, and low productivity across various sectors. These inefficiencies led to considerable resource wastage and a sluggish pace of structural transformation within the economy. In response to these pressing challenges, the government launched the Homegrown Economic Reform in 2019, a strategic initiative aimed at revitalizing the national economy.
Minister Gedion highlighted the remarkable achievements attained through the Reform, which have laid the groundwork for a more inclusive and diversified economic landscape. Among the key accomplishments, he emphasized the transformative agricultural revolution, particularly the expansion of irrigation projects in lowland areas, which has significantly boosted food production. The success of the wheat revolution has further strengthened food security by increasing domestic wheat production and reducing reliance on imports.
The reforms have also driven substantial growth in the productive capacities of various industries, fostering diversification and stimulating economic expansion. Minister Gedion underscored the improvements in the ease of doing business, which have contributed to enhanced investor confidence and the attraction of foreign direct investment. This positive trend is further reflected in the considerable growth of exports, strengthening Ethiopia’s foreign exchange reserves and overall economic resilience.
Moreover, the government has achieved commendable macroeconomic stability, creating a strong foundation for sustained development. Through these wide-ranging reforms, the Federal Democratic Republic of Ethiopia (FDRE) is striving to build a balanced, resilient, and inclusive economy that ensures equitable growth and benefits for all Ethiopians. Minister Gedion noted that the cumulative achievements of the past seven years have positioned Ethiopia as one of the fastest-growing economies globally, the largest economy in East Africa, and the third-largest in Sub-Saharan Africa, despite enduring both man-made and natural crises, as well as global geopolitical shifts.
He further emphasized that the Ministry of Foreign Affairs has actively advanced various economic diplomacy efforts in support of the economic reform agenda. Minister Gedion stressed the need for intensified diplomatic engagement to sustain and scale up the bold, far-reaching, and dynamic reforms, while also effectively seizing opportunities presented by the rapidly changing global geo-economic environment. Within this context, the Diplomatic Guide was meticulously prepared to highlight the core pillars and objectives of the Homegrown Economic Reform, showcase new investment opportunities, and promote Ethiopia’s improved business environment to the international community. The primary purpose of the Guide is to effectively present these opportunities to foreign governments, investors, and the Ethiopian diaspora.
Additionally, Minister Gedion underlined the Foreign Ministry’s commitment to strengthening coordination among stakeholders to ensure that Ethiopia’s economic diplomacy delivers tangible outcomes.
In his keynote address, Ahmed Shide, Minister of Finance, emphasized the critical importance of the newly launched Diplomatic Guide. He described the Guide not merely as a document but as an essential tool to propel Ethiopia’s national economic reform agenda towards sustained and inclusive growth across all sectors. Minister Shide elaborated on the Guide’s practical significance for Ethiopian diplomats, noting that it equips them to engage more effectively with the international community, strengthen trade partnerships, and attract foreign direct investment, particularly in priority sectors.
The Minister also stressed the Guide’s role in facilitating technology transfer, which is essential for modernizing Ethiopia’s economy. Furthermore, by promoting increased remittance flows, the Guide contributes to supporting the financial well-being of many Ethiopian families and communities. Minister Ahmed Shide also highlighted the importance of securing development finance to support the country’s ongoing initiatives. He emphasized that Ethiopia’s current reform momentum presents a unique opportunity that foreign partners and investors should understand and seize.
By serving as a vital reference for Ethiopian diplomats, the Guide offers essential insights into the country’s ongoing economic reforms and provides strategic direction to support the effective conduct of economic diplomacy. It enables diplomats to navigate the complexities of international relations while actively advancing Ethiopia’s financial interests.
The Diplomatic Guide not only redefines Ethiopia’s economic diplomacy but also acknowledges the shifting dynamics of international relations, where geo-economics is becoming increasingly influential. This strategic reorientation marks Ethiopia’s deliberate shift from traditional geopolitical considerations to a stronger emphasis on advancing its economic interests globally. The implications of this transition are far-reaching, affirming that economic priorities now hold as much significance as political alignments in shaping Ethiopia’s foreign policy.
This approach aligns Ethiopia with contemporary global trends and enhances its capacity to engage effectively with a rapidly evolving international order. Through its Homegrown Economic Reform, Ethiopia is actively pursuing economic partnerships that promise sustainable development and long-term prosperity.
Ethiopia is undergoing a significant evolution in its foreign policy, characterized by a diversification strategy that reflects its growing autonomy and strategic interests. The country is actively cultivating balanced partnerships with nations from both the Global North and Global South to maximize mutual benefits and reinforce its sovereignty in international affairs.
In response to the rapidly changing global geo-economic environment, Ethiopia has proactively expanded its international partnerships by utilizing a range of economic instruments outlined in the Homegrown Economic Reform, particularly in the areas of infrastructure development and global trade. Through these diversified alliances, Ethiopia seeks to enhance its economic capacity and strengthen its role within the complex global system.
Ethiopia is confidently navigating the challenges of the contemporary international system, recognizing that interdependence among nations is now a key determinant of security, influence, and resilience. This strategy ensures that Ethiopia remains a relevant and influential player in the global arena. As an active proponent of South-South cooperation, Ethiopia is committed to fostering direct collaboration among developing countries and fully supports the African Continental Free Trade Area (AfCFTA), which aims to create a unified market for 1.3 billion people and empower Africa to achieve greater economic self-sufficiency and regional integration.