National Bank of Ethiopia Annual Report 2022-2023

Ethiopia: Macroeconomic and Social Indicators 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 (2008) (2009) (2010) (2011) (2012) (2013) (2014) (2015)

1. Country Profile Land Area (total, In Sq.Km) 1.14 million 1.14 million 1.14 million 1.14 million 1.14 million 1.14 million 1.14 million 1.14 million Arable Land (% of total area) NA 12.00 13 14.2 14.32 14.41 16.2 16.2 Agricultural Irrigated Land (% of totalAgricultural area) NA NA 4.0 4.0 4.7 5 6% 6.20% Population Density (person per sq.km)* 101.00 104.00 106 109 112 115 123 127
2. Social Indicators Population total, in millions (Mid-Year population) 91.2 93.4 95.5 97.6 99.75 101.9 104.1 105.7 (o/w Urban Poulation, in %) 19.9 20.3 21 22.8 28.2 Working Age Population (In Millions) Urban 12.2 12.8 12 13.13 14.03 15.01 16.04 31.1 Rural 39.7 40.8 42 43.06 44.28 45.8 46.6 40.4 Total 52.0 53.6 56 56.19 58.31 60.81 62.64 61.7 Age Dependency Ratio 75.0 75 69 62 Life Expectancy at Birth (Male - Female) 60.2-64.2 60.2-64.2 62.4-66.6 62.4-66.6 62.4-66.7 65.5 Crude Birth Rate 30.3:1000 30.3:1000 27:1000 27:1000 27:1001 27:1002 27:1003 27:1000 Crude Death Rate 7.2:1000 7.2:1000 6:03 6.00 6.:30 Natural Rate of Population Increase (In %) 2.31 2.31 2:07 Total Fertility Rate 3.94chil:W 3.94chil:W 3.5chil:W 4.6chil:W 4.6chil:W 4.1 People : Hospital Beds 2850:1 2980:1 3617:1 1,312 2750 2720 2900 3225: 1 bed People : Physician1 14045:1 22766:1 26635:1 10,521:1 9977:1 8448:1 7576 5737 People : Nurse1 1999:1 1194:1 1780:1 1620:1 1705 1473 1415 983 Infant Mortality Rate 62.4:1000 62.4:1000 53.3:1000 53.3:1000 43.3:1000 47:1001 47:1000 34:1000 Access to Safe Water (In %) Country Level 61.0 66.0 71 76 79.3 58.5 58.76 67.1 Urban Population 52.5 55.0 60 66 66.5 62.95 71.97 75.7 Rural Population 63.1 68.0 74 79 82.7 57.26 59.76 64.5 Student-Teacher Ratio Primary (1-8) 46:1 43.00 43 39 39 34.8 34.6 36.4 Secondary (9-12) 26.5:1 43.00 43 22.5 24 27.4 27.7 26.6 Technical & Vocational 12.6፡1 11.00 26 13.3 13.3 1:11 1:11 1:18 Student-School Ratio Primary (1-8) 573፡1 580.00 567 628 528 512.7 526.6 517.6 Secondary (9-12) 767.2፡1 754.00 741 568 940 1017 1063 1009.6 Technical & Vocational 523፡1 329.00 318 246.8:1 246.6:1 177 158 151.5 Indicators

2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 (2008) (2009) (2010) (2011) (2012) (2013) (2014) (2015) 3. Macroeconomic Indicators 3.1. Real sector Development2 GDP at Current Market Price (In Mn. Birr) 1568097.5 1832553.7 2202372.7 2696222.7 3374746.9 4341024.2 6157015.2 8723116.8 Nominal GDP Growth Rate (In %) 17.7 16.9 20.2 22.4 25.2 28.6 41.8 41.7 Average Marginal Exchange Rate (Birr per USD) 21.1 22.4 26.1 28.1 31.3 39.0 48.6 53.3 GDP at Current Market Price (In Mn. USD) 74296.6 81760.4 84355.6 95951.0 107672.6 111261.9 126772.7 163712.9 Nominal GDP per Capita (In USD) 814.6 875.8 883.3 983.1 1079.4 1091.7 1217.8 1548.7 Real GDP per Capita (In Birr) 17192.4 18393.9 19204.9 20312.7 21144.7 21860.6 22543.2 23664.4 Real GDP per Capita Growth Rate (In %) 5.0 7.0 4.4 5.8 4.1 3.4 3.1 5.0 GDP Deflator (% change) 9.5 6.7 12.5 13.2 18.2 21.8 34.7 32.9 Real GDP at constant basic price (In Mn. Birr) 1449397.5 1596481.6 1719491.3 1874689.3 1989587.7 2114238.3 2248662.8 2409921.4 Real GDP at constant market price (In Mn. Birr) 1568097.5 1717127.2 1834066.5 1982516.7 2109180.1 2227894.7 2346748.0 2501498.3 Real GDP Growth Rate (In %) 8.0 10.1 7.7 9.0 6.1 6.3 6.4 7.2 Agriculture & Allied Activties(In Billion Birr) 544.1 580.4 600.9 623.8 650.3 686.4 728.4 774.0 Industrial Sector (In Billion Birr) 343.9 413.8 464.4 526.2 576.9 618.8 649.2 694.2 Service Sector(In Billion Birr) 575.9 619.3 673.9 745.7 786.8 836.2 899.8 971.3 Agriculture & Allied Activties (% of GDP) 37.2 36.0 34.5 32.9 32.3 32.1 32.0 31.7 Industrial Sector (% of GDP) 23.5 25.6 26.7 27.8 28.6 28.9 28.5 28.5 Service Sector (% of GDP) 39.3 38.4 38.7 39.3 39.1 39.0 39.5 39.8 Private Consumption Expenditure 1042264.6 1219365.9 1441581.1 1848070.0 2360896.0 3134993.8 4764429.0 6882737.9 Government Consumption Expenditure 174598.8 203607.9 225523.2 247362.0 307769.0 383565.3 453263.0 551106.6 Investment 585665.0 704596.0 751626.2 948866.0 1037685.0 1216584.9 1560325.0 1933863.0 Exports 122500.8 139830.1 184282.1 213437.0 239229.0 329634.5 507692.0 575061.6 Imports 424749.9 430233.2 502112.9 561512.0 571230.0 723391.3 1128171.0 1220461.4 Resource Balance -302249.0 -290403.0 -317831.0 -348075.0 -329096.0 -394236.0 -620479.0 -645399.8 Gross Private Consumption (% of GDP) 66.5 66.5 65.5 68.5 70.0 72.2 77.4 78.9 Gross Government Cosumption (% of GDP) 11.1 11.1 10.2 9.2 9.1 8.8 7.4 6.3 Gross Domestic Fixed Investment (% of GDP) 37.3 38.4 34.1 35.2 30.7 28.0 25.3 22.2 Resource Balance (% of GDP) (19.3) (15.8) (14.4) (12.9) (9.8) -9.08 -10.1 -7.4 3.2. Monetary Indicators Narrow Money Supply (M1) (In Mn. Birr) 178,609.66 216,769.62 281,154.66 308,937.13 360,585.50 437,391.97 588,015.82 706,142.20 Broad Money Supply (M2) (In Mn. Birr) 445,266.25 573,384.05 740,572.88 886,752.53 1,037,646.33 1,348,266.15 1,715,310.03 2,170,848.37 Net Foreign Assets (In Mn. Birr) 21,524.19 38,034.79 39,376.20 14,506.19 (8,321.31) (812.32) (111,427.54) (160,097.68) Reserve Requirement (CBs) 21,745.43 28,278.91 36,385.76 44,861.74 51,952.51 67,732.40 119,022.60 147,931.40 Interest Rate (In %) Minimum Deposit Rate 5.00 5.00 7 Lending Rate 12.75 12.75 13.5 13.5 14.25 Total Net Domestic Credit (in mn. Birr) 490,230.35 631,092.73 784,621.73 963,699.91 1,176,926.45 1,481,844.43 1,930,621.80 2,444,435.50 Government 47,524.36 85,441.85 102,002.83 109,799.21 137,082.91 214,275.16 422,864.02 573,675.72 Other Sectors 442,705.99 545,650.89 682,618.90 853,900.70 1,039,843.53 1,267,569.27 1,507,757.78 1,870,759.78 Indicators Continued….

2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 (2008) (2009) (2010) (2011) (2012) (2013) (2014) (2015) 3.3. Inflation (CPI growth rate)3 Country Level -General inflation 9.7 7.4 14.60 12.60 19.90 20.20 33.80 32.50 -Food inflation 11.2 7.2 13.40 13.10 23.30 23.20 40.30 31.70 -Non-Food inflation (core inflation) 8.1 7.5 15.80 11.90 15.80 16.40 25.15 33.90 Addis Ababa -General inflation 10.3 2.3 16.5 14.6 18.8 19.5 29.8 37.3 -Food inflation 16.6 1.2 8.7 15 25.9 26.2 36.6 35.5 -Non-Food inflation (core inflation) 5.8 3.2 22.6 14 13.9 14.4 24.1 39.0 3.4. External Trade(In Mn.USD) Export of goods & services 6077.3 6257.2 7095.9 7694.9 7715.7 8498.9 10457.7 10855.8 Import of goods & services 20552.1 19714.0 19707.4 20704.8 18828.3 19177.0 23845.0 23430.0 Net trade in goods & services -14474.7 -13456.9 -12611.4 -13009.9 -11112.6 -10678.0 -13387.3 -12574.2 Current account balance including official transfers -6655.1 -6543.2 -5285.0 -4948.0 -4401.9 -3190.7 -5145.1 -4672.9 Capital account balance 6554.1 6885.3 6184.6 4822.4 4326.5 3785.8 2723.7 3547.3 Overall balance of payments -830.9 658.6 -201.6 -941.6 -833.4 298.7 -2149.8 -752.0 3.5. Government Finance (In Mn .Birr4 ) Total Revenue (including grants) 244,819.4 270,214.1 287,562.1 344,936.5 394,965.8 478,888.1 566,753.6 717,586.7 Total Revenue (excluding grants) 231,805.2 257,737.2 269,648.2 311,317.4 354,312.8 444,582.6 540,060.5 685,459.1 o/w Tax-Revenue 190,519.7 210,172.5 235,229.5 268,457.4 311,476.5 388,763.5 477,770.3 593,232.1 Tax-Revenue as % of GDP 12.1 11.5 10.7 10.0 9.2 9.0 7.8 6.8 Total Expenditures 280,892.8 329,658.1 354,205.3 413,105.7 488,243.2 599,006.7 779,099.0 938,771.6 Current Expenditures 136,708.7 176,634.6 210,470.2 238,156.6 280,667.0 363,596.9 517,043.4 582,854.6 Capital Expenditures 144,184.1 153,023.5 143,735.1 174,949.1 207,576.1 235,409.7 262,055.7 355,917.0 Equity Contribution (Sinking Fund) - - - - - - - - Special Programs - - - - - - - - Total Expenditures as % of GDP 17.9 18.0 16.1 15.4 14.5 13.8 12.7 10.8 Current Surplus/Deficit 108,110.7 93,579.4 77,091.9 106,779.9 114,298.8 115,291.2 49,710.3 134,732.1 Overall Budget Deficit (including grants) (36,073.4) (59,444.0) (66,643.2) (68,169.2) (93,277.4) (120,118.5) (212,345.4) (221,184.9) Deficit as % of GDP (2.3) (3.2) (3.0) (2.5) (2.8) (2.8) (3.4) (2.5) Overall Budget Deficit (excluding grants) (49,087.6) (71,920.9) (84,557.1) (101,788.3) (133,930.4) (154,424.0) (239,038.5) (253,312.4) Deficit as % of GDP (3.1) (3.9) (3.8) (3.8) (4.0) (3.6) (3.9) (2.9) 3.6. Exchange Rate (Birr/ USD) Inter-Bank Forex Market Rate5

• Period weighted Average 21.1059 22.4137 26.1082 28.0543 31.3427 39.0163 48.5673 53.2830
• End period 21.8004 23.1081 27.2621 28.9109 34.9822 43.6910 51.9938 54.5943 Indicators Continued….

2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 (2008) (2009) (2010) (2011) (2012) (2013) (2014) (2015) 3.7. Treasury Bill Market (In Mn. Birr) T-Bills Demanded (Total) 161,575.24 225,321.24 323,991.24 422,633.54 242,155.09 284,783.55 599,478.63 595,231.34 T-Bills Sold 161,475.24 225,321.24 323,991.24 422,633.54 242,155.09 238,799.55 582,268.63 576,081.34 Average Weighted Yield (in %) 1.438 1.424 1.420 1.741 4.808 7.970 9.459 9.70 T-Bills Outstanding by holder 57,252.56 73,271.56 111,213.56 138,054.36 23,724.00 116,559.95 317,169.59 341,869.53 Banks - - - 650.00 5,604.00 52,040.00 195,432.29 146,568.05 Non-Banks 57,252.56 73,271.56 111,213.56 137,404.36 18,120.00 64,519.95 121,737.30 195,301.48 3.8. Inter Bank Money Market Rate5 3.9. Financial Institutions Number of Commercial Banks 17.00 18.00 30.00 31.00 (o/w Private banks) 16.00 17.00 28.00 29.00 Number of Bank Branches 3,301.00 4,257.00 4,757.00 5,564.00 6,511.00 7,344.00 8,944.00 11,281.00 Population : Bank Branch 27,932.00 22,164.00 20,286.50 17,732.20 15,702.00 13,921.00 11,516.00 9,514.00 Number of Insurance Companies 17.00 18.00 (o/w Private Insurance Companies) 16.00 17.00 Number of Insurance Branches 426 492.00 532.00 568.00 605.00 635.00 690.00 741.00 Population : Insurance Branch 216,443.00 191,772.00 181,396.00 173,848.00 168,983.00 160,629.92 149,272.50 144,846.00 Number of Development Banks 1.00 1.00 1 Number of Development Bank Branches 110 110.00 107 107 93 82 83 83 Number of Micro-financial Institutions 35.00 35.00 38 38 39 39 43 47 Source : Ministries of Agriculture, Finance, Health, and Education, National Bank of Ethiopia, Ethiopian Statistical Services, … etc Note:- *population is estimated using component method after 2006/2007

1. Excluding manpower out side the Ministry of Health.
2. The GDP data series is revised on basis of 2015/16 =100 base year
3. Inflation data is calculated using the new base year (December 2016=100)
4. Figures for government finance are preliminary estimates from 1999/00 onwards.
5. Inter-bank money market was first introduced in Aug.1998 and Inter-bank forex market started as of September 1998, and the daily trasactions introduced beginning from october 24, 2001. *Mid year population was obtained from MoF Indicators Continued….

1 GOVERNOR’S NOTE

1. The Ethiopian economy registered real GDP growth of 7.2 percent in 2022/23, compared with the 6.4 percent expansion a year ago. It was also roughly doubled the average for Sub￾Saharan Africa over the same period. This economic growth was attributed to 7.9 percent growth in service sector, 6.9 percent in industry and 6.3 percent in agriculture sector. The share of services in GDP rose to 40.3 percent while that of industry modestly declined to 28.8 percent and that of agriculture to 32.1 percent.
2. In the past decade and half, per capita income has steadily increased to USD 1,549 in 2022/23. Meanwhile, investment-to-GDP ratio stood at 22.2 percent which saw a slight drop in recent years due to slow down in public and private investment. Similarly, gross domestic savings-to-GDP ratio stood at 14.8 percent which was 0.5 percentage point lower than a year earlier.
3. Annual average headline inflation moderately subsided to 32.6 percent in 2022/23 from 33.8 percent in the previous year. Yet, inflation has remained above single digit mid-term target in the past five years due to the rise in both food and non-food inflation. Likewise, annual headline inflation dropped to 29.3 percent from 34.0 percent a year ago on account of a 10.1 percent decline in food and non-alcoholic beverages, despite a 3.0 percent increase in non￾food inflation. Inflation has been a persistent challenge over the last five years and showed a significant volatility depending on various external and internal shocks which included instability in some parts of the country, the Russia – Ukraine war, mismatch in aggregate supply and demand, high commodity prices in the global market as well as expansionary monetary and fiscal policies. Against this backdrop, NBE has embarked on pursuing contractionary monetary policy to maintain price stability aided by prudent fiscal and other administrative measures.
4. Regarding fiscal operations, the government focused on revenue mobilization and fiscal consolidation measures in 2022/23 that led to an increase in tax revenue to cover a greater proportion of government expenditures from domestic sources. Meanwhile, government expenditures were largely geared towards supporting capital expenditure and enhancing pro-

2 poor social spending programs and safety nets. Accordingly, domestic revenue registered a 26.6 percent annual growth in 2022/23 while general government expenditure showed a 20.5 percent increment resulting in a budget deficit of 2.5 percent of GDP which was lower than the 3 percent of GDP target. 5. In the external sector, merchandise trade deficit narrowed in 2022/23 due to the fall in merchandise import which outweighed the decline in merchandise export. Proceeds from merchandise export saw a 11.8 percent annual drop due to lower export receipts mainly from coffee, oil seeds, gold, and chat. Similarly, total merchandise imports slowed down by 5.4 percent as a result of a decline in imports of raw materials, semi-finished goods, and consumer goods. Improvement in net service surplus together with narrower merchandise trade deficit has led to improvements in the current account balance including official transfers. Capital account balance also saw an increase in surplus compared to the previous year. 6. NBE continued to apply managed float exchange rate regime in 2022/23. Hence, the Birr was allowed to depreciate by 9.7 percent in nominal terms against US Dollar while real effective exchange rate marginally appreciated by 2.6 percent due to higher domestic inflation and appreciation of the Birr against that of Ethiopia’s major trading partner currencies. 7. In 2022/23 the safety and soundness of the financial sector has been duly ensured against all financial soundness indicators. The financial sector has continued to play its growing role of intermediation and broadly contributed to the country’s growth performance. In 2022/23, with the opening of new bank branches, the number of bank branches rose to 11,281 from 8,944 a year ago. The banking sector also increased its deposit mobilization by 27 percent, loan collection (45 percent) and loan disbursement (28 percent). The sector’s non￾performing loan ratio was within the required limit of 5 percent. In addition, insurance companies, microfinance institutions and capital goods finance companies have expanded their outreach and increased their financial services. Accordingly, financial inclusion and access to finance has seen substantial growth momentum despite limitations.

National Bank of Ethiopia 1 | Annual Report 2022/23 I. THE OVERALL ECONOMIC PERFORMANCE 1.1. Economic Growth The Ethiopian economy continued to grow with real GDP average growth rate of 8.1 percent from 2013/14 to 2022/23. This average GDP growth was one of the highest in Africa and it reflected moderate improvement in the living standards of the population both in urban and rural areas. In 2022/23, real GDP showed a 7.2 percent annual expansion compared to 3.3 percent forecast for sub-Saharan African countries (WEO, October 2023). The growth was mainly contributed to the growth the services sector (43.8 percent), agricultural sector (28.2 percent) and industrial sector (27.9 percent). Nominal GDP per capita went up to USD 1,549 from USD 1,218 in the preceding year, registering a 27.1 percent year-on-year increase. Real per capita GDP, however, decreased by 4.3 percent to USD 444.1during the same period. The Ethiopian economy is projected to grow by 7.9 percent in 2023/24 (MoPD, 2023) compared with the 4 percent forecast for sub-Saharan African countries (WEO, October 2023).

2 | Annual Report 2022/23 Table 1.1: Sectorial Contributions to GDP and GDP Growth (In Billions of Birr) Items Year 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 Sector Agriculture 544.1 580.4 600.8 623.8 650.3 686.4 728.4 774.0 Industry 343.9 414.7 467.5 526.2 576.9 618.8 649.2 694.2 Services 575.9 619.3 671.8 747.3 786.9 836.2 899.8 971.3 Total 1,463.9 1,614.3 1,740.1 1897.4 2,014.1 2,141.5 2,277.5 2,439.5 Less FISIM 14.5 17.0 19.8 21.0 24.5 27.2 28.8 29.6 Real GDP 1,449.4 1,596.5 1,719.5 1,874.7 1,989.6 2,114.2 2,248.7 2,409.9 Growth in Real GDP 8.0 10.1 7.7 9.0 6.1 6.3 6.4 7.2 7.2 Real GDP per capita 815 876 883 985 1,080 1,092 1,218 1,549 1,549 Growth in Real GDP per capita 9.5 7.5 0.9 11.6 9.6 1.1 11.6 27.1 27.1 Mid-year population (in millions) 91.2 93.4 95.5 97.6 99.7 101.9 104.1 105.7 105.7 Share in GDP (in %) Agriculture 37.5 36.3 34.9 33.3 32.7 32.5 32.4 32.1 Industry 23.7 25.9 27.0 28.1 29.0 29.3 28.9 28.8 Services 39.7 38.8 39.2 39.8 39.5 39.6 40.0 40.3 Agriculture Real Growth rate 2.3 6.7 3.5 3.8 4.3 5.6 6.1 6.3 Contribution to real GDP growth 0.9 2.5 1.3 1.3 1.4 1.8 2.0 2.0 Growth contribution in percent 11.3 24.6 16.4 14.7 22.8 29.0 31.2 28.2 Industry Real Growth rate 22.2 20.6 12.7 12.6 9.6 7.3 4.9 6.9 Contribution to real GDP growth 4.7 4.8 3.3 3.4 2.6 2.1 1.4 2.0 Growth contribution in percent 58.8 47.3 42.5 37.5 42.4 33.6 22.6 27.9 Services Real Growth rate 8.7 7.5 8.5 11.0 5.3 6.3 7.6 7.9 Contribution to real GDP growth 3.4 3.0 3.3 4.3 2.1 2.4 3.0 3.1 Growth contribution in percent 42.5 29.3 42.3 48.2 34.0 39.1 46.7 43.8 Source: Ministry of Planning and Development (MoPD)

3 | Annual Report 2022/23 1.2. GDP by Sector The share of agriculture in Ethiopian economy during the F.Y 2022/23 was 32.1 percent with an annual growth rate of about 6.3 percent. The sector contributed about 28.2 percent to the overall GDP growth. The sector’s growth was driven by a marginal increase in crop production (from 6.9 percent to 7.1 percent). Crop production sector contributed about 21.1 percent to the annual GDP growth. In 2022/23, total cultivated land area showed a 0.5 percent decline and reached 12.1 million hectares. As a result, the total agricultural crop production dropped by 0.9 percent to amount to 325 million quintals. Cereal production accounted for 88 percent of the total crop production during the review period. Production of pulses increased by 7.3 percent as cultivated land area increased by 7.4 percent. On the other hand, oil seeds production decreased by 4.8 percent, as cultivated land area shrunk by 6.4 percent. Industry sector achieved a 6.9 percent annual growth and it contributed about 27.9 percent to the overall economic growth for the review fiscal year. The manufacturing sub sector also exhibited a 7 percent in expansion and contributed about 23.4 percent to the industrial sector annual growth and 6.5 percent to the overall real GDP growth. Meanwhile, the construction sector contributed 20.5 percent to the GDP growth and 73.9 percent to industrial sector growth. Thus, currently, the sector is the leading sub sector in the industry due to expansion of roads, dams and housing infrastructures. The service sector was relatively the dominant sector in the Ethiopian economy and it registered a 7.9 percent annual growth in 2022/23 and constituted about 40.3 percent of the overall economy. The major contributor in the service sector during the fiscal year whole sale and retail trade; constituted 14.6 percent of the whole economy followed by transport & communications (5.8 percent), real estates, renting & business activities comprising (4.7 percent), public administration & defense (4 percent), financial intermediation (3.6 percent) and hotels & restaurants (2.5 percent).

4 | Annual Report 2022/23 Fig.I.1: GDP Growth by Major Sectors Source: Ministry of planning and development (MoPD) 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 3.5 3.8 4.3 5.5 6.1 6.3 12.2 12.6 9.6 7.3 4.9 6.9 8.8 11.0 5.3 6.3 7.6 7.9 7.7 9.0 6.1 6.3 6.4 7.2 Agriculture Industry Service Real GDP

National Bank of Ethiopia 5 | Annual Report 2022/23 Table 1.2: Estimates of Agricultural Production and Cultivated Areas of Major Crops for Private Peasant Holdings - Meher Season

(Area in thousands of hectares and production in thousands of quintals) Agricultural Production 2019/20 2020/21 2021/22 2022/23 Cultivated Area Total Production Cultivated Area Total Production Cultivated Area Total Production Cultivated Area Total Production Cereals 10,478 296,726 9,759 283,191 9,998 290,808 9,844 285,831 Percentage Change 1.2 6.9 -6.9 -4.6 2.4 2.7 -1.5 -1.7 Pulses 1,563 30,051 1,628 31,298 1,677 31,680 1,801 34,005 Percentage Change -3.5 -0.2 4.2 4.1 3.0 1.2 7.4 7.3 Oilseeds 820 8,421 647 6,813 522 5,415 488.5 5,153 Percentage Change 9.8 7.3 -21.1 -19.1 -19.2 -20.5 -6.4 -4.8 Total 12,862.0 335,199 12,034 321,302 12,197 327,904 12,133 324,989 Percentage Change 1.1 6.2 -6.4 -4.1 1.4 2.1 -0.5 -0.9 Source: Ethiopian Statistical Service (ESS)

6 | Annual Report 2022/23 Table 1.3: Growth and Percentage Distribution of Major Agricultural, Industrial and Service Sub-sectors Sectors 2018/19 2019/20 2020/21 2021/22 2022/23 Growth rate Crop 3.0 4.7 5.7 6.9 7.1 Animal Farming and Hunting 6.0 3.3 5.8 4.6 4.4 Forestry 3.8 3.9 4.0 4.3 4.0 Fishing 2.3 2.8 1.7 21.9 38.6 Share in Agriculture Crop 64.8 65.0 65.1 65.6 66.1 Animal Farming and Hunting 26.2 25.9 26.0 25.6 25.2 Forestry 8.8 8.8 8.6 8.5 8.3 Fishing 0.3 0.3 0.2 0.3 0.4 Growth rate Mining and Quarrying -21.9 91.4 115.4 6.1 -7.1 Manufacturing 7.7 7.5 5.1 4.8 7.0 Electricity and Water 4.0 7.2 9.2 6.0 13.2 Construction 15.0 9.9 6.6 4.9 7.1 Share in Industry Mining and Quarrying 0.5 0.9 1.8 1.8 1.6 Manufacturing 24.3 23.9 23.4 Electricity and Water 2.7 2.6 2.7 2.7 2.9 Construction 72.5 72.6 72.2 Growth rate Whole Sale and Retail Trade 11.7 6.4 6.3 7.9 7.6 Hotels and Restaurants 9.0 2.2 2.6 8.0 10.3 Transport and Communications 21.0 1.2 7.0 9.8 12.0 Real Estate, Renting and Business Activities 7.5 9.5 8.9 9.0 9.1 Public Administration and Defense 9.0 2.3 4.9 4.5 4.0 Others* 7.5 6.4 6.2 6.5 6.5 Share in Service Whole Sale and Retail Trade 35.9 36.3 36.3 36.4 36.3 Hotels and Restaurants 6.5 6.3 6.0 6.1 6.2 Transport and Communications 14.0 13.4 13.5 13.8 14.3 Real Estate, Renting and Business Activities 10.7 11.1 11.4 11.5 11.7 Public Administration and Defense 11.2 10.9 10.7 10.4 10.0 Others* 21.7 22.1 22.0 21.8 21.5 Source: Ministry of planning and development (MoPD)

• Includes: financial intermediation, education, health and social work, private households with employed persons and other community, social and personal services.

7 | Annual Report 2022/23 1.3. GDP by Expenditure Components The total consumption expenditure (public and private) as a percent of GDP increased to 85.2 percent in 2022/23 from 84.8 percent in the preceding year due to a 1.5 percentage point rise in private consumption expenditure which reduced domestic saving by 0.5 percentage points. Thus, gross domestic saving to GDP decreased to 14.8 percent from 15.2 percent recorded a year earlier. Likewise, the ratios of gross capital formation to GDP and government consumption to GDP dropped by 3.1 and 1.1 percentage point, respectively. In the same way, domestic absorption to GDP ratio dropped by 2.7 percentage point vis-à-vis last fiscal year.

8 | Annual Report 2022/23 Table: 1.4: Expenditure on GDP and Gross Domestic Savings (As Percentage of GDP) Source: Ministry of Planning and Development (MoPD) Year Domestic Absorption Consumption Expenditure Gross Capital Formation Resource Balance Exports of Goods & Services Imports of Goods & Services Gross Domestic Total Govt. Pvt. Savings 2010/11 113.8 82.7 11.8 70.9 31.1 (14.5) 16.3 30.7 17.3 2011/12 116.4 80.4 9.5 71.0 36.0 (17.4) 13.4 30.8 19.6 2012/13 115.2 82.2 10.2 71.9 33.0 (16.1) 12.2 28.2 17.8 2013/14 116.2 79.3 10.6 68.8 36.8 (17.0) 11.3 28.4 20.7 2014/15 116.1 77.9 10.3 67.6 38.2 (20.4) 9.1 29.5 22.1 2015/16 115.0 77.6 11.1 66.5 37.3 (19.3) 7.8 27.1 22.4 2016/17 116.1 77.6 11.1 66.5 38.4 (15.8) 7.6 23.5 22.4 2017/18 109.8 75.7 10.2 65.5 34.1 (14.4) 8.4 22.8 24.3 2018/19 112.9 77.7 9.2 68.5 35.2 (12.9) 7.9 20.8 22.3 2019/20 109.8 79.2 9.1 70.0 30.6 (9.8) 7.1 16.9 20.8 2020/21 109.1 81.1 8.8 72.2 28.0 (9.1) 7.6 16.7 18.9 2021/22 110.1 84.8 7.4 77.4 25.3 (10.1) 8.2 18.4 15.2 2022/23 107.4 85.2 6.3 78.9 22.2 (7.4) 6.6 14.0 14.8 Average 2018/19- 2022/23 109.9 81.6 8.2 73.4 28.3 (9.2) 7.5 17.4 18.4 Average 2013/14- 2022/23 113.0 79.3 9.8 69.5 33.7 (11.1) 8.7 23.2 20.7

9 | Annual Report 2022/23 1.4: Micro and Small-Scale Enterprises During 2022/23, a total of 208,667 new micro and small scale enterprises (MSEs) were established and they created employment opportunities for 4.5 million people. These enterprises acquired more than Birr 10.6 billion in loans from financial institutions to conduct their business operations. Table 1.5: Numbers, Amount of Credit and Jobs Created through MSEs (Credit in Millions of Birr) Source: Federal Urban Job Creation and Food Security Agency (FeUJCFSA) Particulars 2020/21 2021/22 2022/23 No. of MSE's 115,200 160,099 208,667 Amount of credit 5,016.2 9,519.13 10,557.1 No of Total employment 585,119 2,009,140.0 4,467,023.0

10 | Annual Report 2022/23 Table 1.6: Numbers, Amount of Credit and Jobs Created during 2022/23 through MSEs by Region (Credit in Millions of Birr) Source: Federal Urban Job Creation and Food Security Agency (FeUJCFSA) In terms of regional distribution, 74.9 percent of the newly established MSEs were located in Oromia followed by Addis Ababa (9.9 percent), former SNNPR (7.3 percent), Somali (2.9 percent), Sidama (2.6 percent) and others (2.5 percent). With respect to total loans, MSEs in Oromia received 50.2 percent, followed by Addis Ababa (24.9 percent), Somali (9.8 percent), SNNPR ( 8.2 percent), Dire Dawa (3.7 percent), Sidama (1.7 percent) and in SW Ethiopia 1 percent. Of the total jobs created by these enterprises, about 79 percent was in Oromia, 8.5 percent in Addis Ababa, 4.8 percent in SNNPR, 3.2 percent in Somali, 1.3 percent in Sidama & Afar each and others 1.9 percent. Addis Ababa Oromia SNNPR Amhara Tigray Dire Dawa Sidama SW Ethiopia Harari Benishang ul Somali Gambela Afar Total No. of MSEs 20,578 156,299 15,172 - - 319 5,327 1,419 938 1,014 6,045 492 1,064 208,667 Amount of credit 2,627.2 5,303.0 863.5 - - 391.2 177.6 106.4 26.9 17.2 1,039.0 4.9 - 10,557.0 Employment 377,887 3,530,254 215,384 - - 12,182 58,498 23,654 8,459 27,768 142,104 14,091 56,742 4,467,023 Regional Percentage Share No. of MSEs 9.9 74.9 7.3 - - 0.2 2.6 0.7 0.4 0.5 2.9 0.2 0.5 100 Amount of credit 24.9 50.2 8.2 - - 3.7 1.7 1.0 0.3 0.2 9.8 0.0 - 100 No. of total Employmen t created by MSEs 8.5 79.0 4.8 - - 0.3 1.3 0.5 0.2 0.6 3.2 0.3 1.3 100

11 | Annual Report 2022/23 Fig.I.2: Annual Distribution of Numbers of MSEs during 2022/23 20,578 156,299 15,172 5,327 1,419 319 938 1,014 6,045 492 1,064

20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 Source: Federal Urban Job Creation and Food Security Agency (FeUJCFSA)

Fig.I.3: Annual Distribution of Amount of Credit during 2022/23 2,627 5,303 864 178 106 391 27 17 1,039 5

1,000 2,000 3,000 4,000 5,000 6,000 Millions of Birr Source: Federal Urban Job Creation and Food Security Agency (FeUJCFSA)

12 | Annual Report 2022/23 Fig.I.4: Annual Distribution of Employment Created during 2022/23 377,887 3,530,254 215,384 58,498 23,654 12,182 8,459 27,768 142,104 14,091 56,742

500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 Source: Federal Urban Job Creation and Food Security Agency (FeUJCFSA)

13 | Annual Report 2022/23 1.5. Access to Water Supply During 2022/23, the number of population having access to portable water supply improved by 4.6 percentage points over the preceding fiscal year and reached 67.1 percent1 (i.e., 64.5 percent rural and 75.7 percent urban population). The result also indicates that urban areas had relatively better access to potable water than the rural areas (Table 1.7). In terms of regional distribution, 86.7 percent of the population in Oromia had access to potable water followed by Dire Dawa (77 percent), Gambella (76.7 percent), Amhara (73.6 percent), Benshangul Gumuz (64.6 percent), Sidama (55.3 percent), Addis Ababa (55 percent), SNNPR and Afar (50.8 percent each), Harari (44 percent), Somali (43.4 percent) and SWE (39.8 percent). In terms of access to potable water in urban areas, Oromia had 88.3 percent share followed by Amhara (72.2), Dire Dawa (68 percent), Gambella (63.2 percent), Benishangul Gumuz (62.9 percent), Afar (62.7 percent), Sidama (62.4 percent), SNNPR (61.5 percent), Addis Ababa (55 percent), Somali (47.9 percent), SWE (46 percent), and Harari (24 percent). Similarly, Oromia region had 87.9 percent share in terms of access to potable water in rural areas followed by Dire Dawa (87 percent), Gambella (86.2 percent), Amhara (73.9 percent), Benishangul Gumuz (65.1 percent), Harari (63 percent), Sidama (54.3 percent), Afar (52.3 percent), SNNPR (50.4 percent), Somali (41.5 percent) and SWE (38.7 percent).

14 | Annual Report 2022/23 Table 1.7: Percentages of People with Access to Potable Water by Region Regions 2021/22 2022/23 Change in percentage point Rural Urban Total Rural Urban Total A B C D E F D-A E-B F-C Tigray1 NA - - - Afar 64.0 74.2 70.3 52.3 62.7 50.8 -11.7 -11.5 -19.5 Amhara 72.2 69.2 71.8 73.9 72.2 73.6 1.6 2.9 1.9 Oromia 82.0 78.4 80.2 87.9 88.3 86.7 5.9 9.9 6.5 SNNPR 46.4 58.4 48.6 50.4 61.5 50.8 4.0 3.1 2.2 Somali 37.0 45.0 39.4 41.5 47.9 43.4 4.5 2.9 4.0 B.Gumuz 62.6 62.0 62.4 65.1 62.9 64.6 2.5 0.9 2.2 Gambella 85.2 61.9 75.1 86.2 63.2 76.7 1.0 1.3 1.6 Harari 62.0 23.0 42.5 63 24.0 44.0 1.0 1.0 1.5 D. Dawa 83.0 60.0 75.8 87.0 68.0 77.0 4.0 8.0 1.2 Sidama 49 60 51.6 54.3 62.4 55.3 5.3 2.4 3.7 SWE - - - 38.7 46.0 39.8 - - - AA - 57.0 57.0 - 55.0 55.0 - -2.0 -2.0 Total 59.8 71.9 62.5 64.5 75.7 67.1 4.7 3.8 4.6 Source: Ministry of Water, Irrigation and Energy and NBE Staff Computation2

1 Access to Potable Water data for Tigray region is not incorporated in the Table since the data is not available 2 This result has been computed based on 2nd water supply inventory

15 | Annual Report 2022/23 Fig.I.5: Access to water supply by Region Source: Ministry of Water, Irrigation and Energy; and NBE Staff Computation 0 10 20 30 40 50 60 70 80 90 100 Rural Urban Total

16 | Annual Report 2022/23 1.6. Road Sector Development 1.6.1. Road Network Road transport is the dominant mode of transport in Ethiopia and it accounts for about 95 percent of motorized inter￾urban freight and passenger movements. In 2022/23, the total stock of road network reached 171,368 km, depicting a 5.8 percent annual expansion. The country’s total road network consisted of 65,855 Km (38.4 percent) Woreda road, 42,488 (24.8 percent) rural road, 30,534.9 Km (17.8 percent) Federal road and 32,491 Km (19 percent) urban road. With regard to the Federal roads, asphalt road constituted 18,218 Km (59.7 percent) and gravel roads 12,317 Km (40.3 percent). The share of asphalt road in total road network amounted to 10.6 percent, about 0.3 percentage point higher than the preceding year. Similarly, rural road grew by 6.6 percent constituted 24.8 percent of the total road network during the review period.

17 | Annual Report 2022/23 Table 1.8: Classification of Road Network (Length in km) Year Federal Road Rural road Woreda road * Urban Roads Total** Asphalt Gravel Paved Coble Unpave d Length Growth rate Length Growth rate Length Growth rate Length Growth rate Length Growt h rate 2008/09 6,938 14.4 14,234 (0.9) 25,640 7.1 85,767 22.5 NA 46,812 5.5 2009/10 7,476 7.8 14,373 1.0 26,944 5.1 100,385 17.0 NA 48,793 4.2 2010/11 8,295 11.0 14,136 (1.6) 30,712 14.0 854 (99.1) NA 53,997 10.7 2011/12 9,875 19.0 14,675 3.8 31,550 2.7 6,983 717.7 NA 63,083 16.8 2012/13 11,301 14.4 14,455 (1.5) 32,582 3.3 27,628 295.6 NA 85,966 36.3 2013/14 12,640 11.8 14,217 (1.6) 33,609 3.2 39,056 41.4 NA 99,522 15.8 2014/15 13,551 7.2 14,055 (1.1) 30,641 (8.8) 46,810 19.9 1,693 850 2,814 110,414 10.9 2015/16 14,632 8.0 13,400 (4.7) 31,620 3.2 48,057 2.7 1,693 3,664 113,066 2.4 2016/17 15,886 8.6 12,813 (4.4) 33,367 5.5 52,748 9.8 1,693 2,814 3,664 122,985 8.8 2017/18 15,886 - 12,813 - 35,985 7.8 56,732 7.6 1,693 2,814 850 126,773 3.1 2018/19 15,886 - 12,813 - 35,806 (0.5) 55,808 (1.6) 1,914 5,200 15,583 143,010 12.8 2019/20 15,886 - 12,813 - 35,806 0.0 55,808 - 1,734 5,798 16,182 144,028 0.7 2020/21 16,225 2.1 12,491 (2.5) 38,547 7.7 59,604 6.8 1,771 6,568 20,624 155,830 8.2 2021/22 16,760 3.3 12,231 (2.1) 39,840 3.4 62,430 4.7 1,824 7,046 21,903 162,034 4.0 2022/23 18,218 8.7 12,317 0.7 42,488 6.6 65,855 5.5 1,926 7,365 23,198 171,368 5.8 Source: Ethiopian Roads Authority

• Includes community road, which was replaced by Woreda road and registered as new road in 2010/11 ** Total road length does not include community road length till 2010/11as it is non-engineered road; but it includes Woreda road.

18 | Annual Report 2022/23 1.6.2. Road Density The proper level of road network is assessed by road density measured by road length per 1,000 persons or by road length per 1,000 km2 . At the end of 2022/23, road density per 1,000 square Km expanded to 149.3 km from 141 km a year earlier showing a 5.9 percent annual growth while road density per 1,000 population decreased by 1.4 percent (Table 1.9). Table 1.9: Road Densities Year Road Density /1000 person Road density /1000 sq. km 2009/10 0.6 44.4 2010/11 0.65 48.3 2011/12 0.75 57.3 2012/13 1.0 78.2 2013/14 1.1 90.5 2014/15 1.2 100.4 2015/16 1.23 102.8 2016/17 1.3 109.2 2017/18 1.3 115.2 2018/19 1.43 130.9 2019/20 1.41 131.3 2020/21 1.42 135.8 2021/22 1.43 141.0 2022/23 1.41 149.3 Growth rate in 2022/23 against 2021/22 -1.4 5.9 Source: Ethiopian Roads Authority

19 | Annual Report 2022/23 1.6.3. Road Accessibility In 2022/23, the annual average distance from all-weather roads reached 4.1 kilometers depicting a 4.7 percent annual decline. Likewise, the proportion of area with more than 5km from all-weather roads decreased to 29.8 percent from 32 percent a year ago (Table 1.10). About 22 percent of the asphalt road and 5 percent of the gravel road were in good condition during the review period (Figure I.6). Table 1.10: Road Accessibility Indicator 2021/22 2022/23 Percentage change Proportion of area more than 5Km from all-weather road 32 29.8 -6.9 Average distance from all-weather roads 4.3 4.1 -4.7 Source: Ethiopian Roads Authority Fig.I.6: Status of Road Source: Ethiopian Roads Authority 74 73 28.50 26 24 22 58 59 59 66 66 62 14 14 5 5 70 70 72 71 20 21 22 27 0 10 20 30 40 50 60 70 80 Percentage Asphalt Roads in Good Condition Gravel Roads in Goods Condition Total Roads Network in Good Condition

20 | Annual Report 2022/23 1.6.4. Road Sector Financing In 2022/23, total investment in road construction and expansion increased by 1.6 percent to Birr 58.5 billion from Birr 57.6 billion a year earlier (Table I.11 and fig.I.7). Investment in Federal road construction and expansion constituted 90.4 percent of the total road investment capital and reached at Birr 52.9 billion, while regional roads accounted for 6.2 percent and Woreda road 3.3 percent (Table I.11) and (Fig.I.7).

21 | Annual Report 2022/23 Table 1.11: Investments in the Road Sector (In millions of Birr) Road type 2021/22 2022/23 Percentage A Share (In %) B change Share (In %) Federal roads 50,111.0 87.0 52,906.4 90.4 5.6 Regional roads 5,397.0 9.4 3,654.1 6.2 -32.3 Woreda roads 2,060.0 3.6 1,938.6 3.3 -5.9 Urban road* - - - - 0.0 Total 57,568.0 100 58,499.1 100 1.6 Source: Ethiopian Roads Authority

• All municipalities’ maintenance. Fig.I.7፡ Investment in Road Construction and Expansion Source: Ethiopian Roads Authority 0 10000 20000 30000 40000 50000 60000 70000 In Millions of Birr Federal Road Regional Road Woreda Road Urban Road Total Investment

22 | Annual Report 2022/23 1.8. Telecommunication In today’s digitized world telecommunication has become one of the prime support services required for rapid growth and modernization of various sectors of the economy. Expansion of infrastructure development such as telecommunication would have significant impact on attracting investment, creating market opportunities, enhancing competitiveness and boosting regional economic integration. Cognizant of this fact, the Ethiopian government has made major investment to improve service quality, expansion of service coverage and enhancing institutional capacity in the telecom sector. In 2022/23, the total number of subscribers reached 71.9 million depicting a 8 percent annual growth. This was attributed to 7.7 percent increase in mobile voice and 30.5 percent rise in internet & data subscribers despite the 3.5 percent drop in fixed voice service subscribers. Of the total subscribers, mobile voice accounted for 69.5 million (96.6 percent) followed by internet & data (1.6 million or 2.2 percent) and fixed voice service (854 thousand or 1.2 percent) (Table 1.13).

23 | Annual Report 2022/23 Table 1.13: Number of Subscribers (In 000’) Service Type 2021/22 2022/23 Percentage Change Total subscriber base 66,593 71,922 8.0 Mobile voice subscriber 64,506 69,500 7.7 Internet and data subscriber 1,202 1569 30.5 Fixed voice service subscriber 885 854 -3.5 Internet and data user 26,080 33,897 30.0 Mobile voice 64,506 69,500 7.7 Residential 63,604 68,478 7.7 Enterprises 902 1,020 13.1 Broad band & internet subscriber 845 1,222 44.6 Residential 616 926 50.3 Enterprises 229 296 29.3 Narrow band data & internet subscriber 357 347 -2.8 Residential 0 0.2 -50.0 Enterprises 357 347 -2.8 Fixed voice 885 854 -3.5 Residential 512 491 -4.1 Enterprises 373 363 -2.7 Broad band data & internet user 25,722 33,435 30.0 Broad band data Residential 25,159 32,197 28.0 Broad band data enterprise 563 1,239 120.1 Narrow data & internet user 358 461 28.8 Narrow band residential 1 0.4 -33.3 Narrow band enterprise 357 461 29.1 Source: Ethio-Telecom Note: Total subscriber base doesn't include internet and data user. At the same time, the country’s telecommunication penetration rate (telecom density) increased from 62.8 percent in 2021/22 to 66.2 percent in 2022/23 due to improvement in mobile density (65.4 percent) compared to 62.8 percent a year ago. Similarly, internet and data density increased to 31.5 percent from 24.8 percent during the review period while fixed line density remained at 0.8 percent (Table 1.14).

24 | Annual Report 2022/23 Table 1.14: Telecom Density Tele density/100 Inhabitants* 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 Fixed line 1.2 1.2 1.0 0.9 0.8 0.8 Mobile 39.8 41.9 44.9 53.6 62.0 65.4 Total 41.0 43.1 45.9 54.5 62.8 66.2 Internet and data 18.5 21.8 24.0 24.3 24.8 31.5 Source: Ethio-Telecom *Tele-density is mobile plus fixed telephone subscribers per 100 inhabitants Ethio-telecom’s income increased by 21.9 percent and reached Birr 75.8 billion in 2022/23 vis-à-vis Birr 62.2 billion income in the previous year. Likewise, total expenses of the company went up by 47.6 percent to Birr 47.1 billion during the review period. Thus, its gross profit stood at Birr 28.7 billion about 5.3 percent lower than a year earlier (Table 1.16).

National Bank of Ethiopia 25 | Annual Report 2022/23 Table 1.15: Financial Performance and Asset of Ethio-Telecom (In Billions of Birr) Finance and Asset 2019/20 2021/22 2022/23 Percentage Change A B C C/A

C/B Income 55.8 62.2 75.8 35.8 21.9 Expense 25.9 31.9 47.1 81.9 47.6 Gross Profit 24.7 30.3 28.7 16.3 -5.3 Assets 39.1 40.2 51.3 31.2 27.6 Fixed Gross - - - - - Depreciation 5.4 6.4 6.2 15.0 -3.0 Source: Ethio-Telecom

National Bank of Ethiopia 26 | Annual Report 2022/23 II. ENERGY PRODUCTION 2.1 Electric Power Generation Ethiopia has immense potential for hydroelectric power, geothermal and wind energy generation. According to Ethiopian Electric Power Corporation (EEPCO) report, the country has an estimated hydro-power potential of 45,000 MW, a geothermal potential of 10,000 MW and 1.3 million MW potential for wind farm. Yet, the country’s generating capacity is largely based on hydropower reservoirs as nine of its major rivers are suitable for hydroelectric power generation. In addition, the non-renewable fuels such as gasoline and charcoal are widely used as energy sources. Considering the increasing power demand and capacity shortfall in the system and to have a better generation mix, the country is looking to diversify its production of renewable power to wind and geothermal sources. Wind energy has been identified as an immediate and clean energy solution since wind power is renewable with short construction period and significant immediate result. Thus, the Ethiopian Electric Power Corporation has implemented different wind power projects in several parts/sites of the country. Adama II wind farm is the latest and the third project completed and started operation with a generating capacity of 153 MW thereby raising the country’s wind power by 324 MW (combined with Adama I (51MW) and Ashegoda (120 MW)). In addition, a process is underway to undertake the construction of Aysha 300 MW wind power project. Ethiopia has also been identified as one of the countries with a great potential for solar energy because of its geographical location near to the equator. With the intent of becoming a major power exporter in East Africa, the country is also building several geothermal power plants. The Ethiopian Electric Power Corporation is a public enterprise mandated with the task of generating,

27 | Annual Report 2022/23 transmitting, distributing, and selling electricity. The Corporation generates electricity through two different power supply systems, namely, the Inter Connected System (ICS)3 and Self Contained System (SCS)4 . The ICS constituted the major source of electric power generating system in Ethiopia.

3 Generates power by connecting to other systems 4 Generates power independently The total amount of electric power generated in 2022/23 was about 17.7 billion KWH, showing a 14.2 percent annual increase. About 96.7 percent of the electric power was generated by hydropower and the remaining 3.3 percent by wind sources (Table 2.1).

National Bank of Ethiopia 28 | Annual Report 2022/23 Table 2.1: Electric Power Generation in ICS and SCS (I n ‘000 KWH) Source 2020/21 2021/22 2022/23 Percentage Change [A] Share in % [B] Share in % [C] Share in % [C/A] [C/B] ICS Hydro Power 14,850,391.3 95.6 14,914,367.2 96.2 17,126,115.6 96.7 15.3 14.8 Thermal Power - - - - - Geothermal - - - - - Wind 608,171.7 3.9 560,562.1 3.6 575,617.1 3.3 -5.4 2.7 Biomass 73,491.9 0.5 29,149.8 0.2 6,575.0 0.0 -91.1 -77.4 Sub Total 15,532,055.0 100 15,504,079.1 100 17,708,307.7 100 14.0 14.2 SCS Hydro Power - - - - - - - Thermal Power - - - - - - - Sub Total - - - - - - - - Total Hydro Power 14,850,391.3 95.6 14,914,367.2 96.2 17,126,115.6 96.7 15.3 14.8 Thermal Power - - - - - - Geothermal - - - - - Wind 608,171.7 3.9 560,562.1 3.6 575,617.1 3.3 -5.4 2.7 Biomass 73,491.9 0.5 29,149.8 0.2 6,575.0 0.0 -91.1 -77.4 Grand Total 15,532,055.0 100 15,504,079.1 100 17,708,307.7 100 14.0 14.2 Source: Ethiopian Electric Power Corporation

29 | Annual Report 2022/23 2.2 Volume and Value of Petroleum Imports During the review period, about 3.9 million a total metric tons of petroleum products with a total value of Birr 203.8 billion were imported by the Ethiopian Petroleum Enterprise. As compared to previous year, total value of and volume of petroleum imports increased by 24 percent and 2.4 percent, respectively. Imported volume of jet fuel and regular gasoline showed annual increase of 25.2 and 4.9 percent while fuel oil and gas oil dropped by 19.7 and 1.9 percent, respectively. In terms of value, jet fuel increased by 55.8 percent followed by gas oil (21.5 percent) and regular gasoline (16.2 percent). The value of fuel oil however, dropped by 22.9 percent (Table 2.2) (Fig.II.1 & Fig.II.2). Table 2.2: Volume and Value of Petroleum Imports (Volume in MT and Value in '000 Birr) Petroleum Products 2021/22 2022/23 Volume Value Volume Value Percentage Change A B C D C/A D/B Regular Gasoline (MGR) 673,719.1 32,617,390.0 706,499.4 37,906,113.5 4.9 16.2 Jet Fuel 496,706.6 20,352,168.4 621,715.4 31,711,252.4 25.2 55.8 Fuel Oil 81,539.4 2,434,822.3 65,442.0 1,876,056.4 (19.7) (22.9) Gas Oil (ADO) 2,597,202.5 108,886,608.3 2,546,849.9 132,302,935.2 (1.9) 21.5 Total 3,849,167.6 164,290,989.0 3,940,506.7 203,796,357.4 2.4 24.0 Source: Ethiopian Petroleum Enterprise

30 | Annual Report 2022/23 Fig.II.1: Trends in Volume of Petroleum Imports (In ‘000) 0 500 1000 1500 2000 2500 3000 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 MGR Jet Fuel Fuel Oil Gas Oil Source: Ethiopian Petroleum Enterprise Fig.II.2: Trends in Value of Petroleum Imports (In ‘000) 0 20000000 40000000 60000000 80000000 10000000 12000000 14000000 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 MGR Jet Fuel Fuel Oil Gas Oil Source: Ethiopian Petroleum Enterprise Domestic retail prices of petroleum products were adjusted in line with the global oil prices. As the international oil prices tended to increase during 2022/23 domestic retail prices were also adjusted upwards. Accordingly, retail prices of Regular Gasoline increased (97.2 percent), Fuel Oil (68.4 percent), Gas Oil and kerosene (127.7

31 | Annual Report 2022/23 percent each) and Jet Fuel (20.4 percent) in the review period (Table 2.3). As illustrated in Fig.II.3, the retail fuel prices in Addis Ababa have been rising for the last five consecutive years owing to the rise in international oil price.

32 | Annual Report 2022/23 Table 2.3: Annual Retail Prices of Petroleum Products in Addis Ababa (Birr/liter) Year Quarter MGR Fuel Oil Gas Oil Kerosene Jet fuel 2020/21 Qtr.1 21.53 32.91 18.75 18.75 25.87 Qtr.2 21.87 33.27 18.98 18.98 24.74 Qtr.3 25.12 37.96 22.42 22.42 35.51 Qtr.4 25.86 40.05 23.18 23.18 51.76 Average 23.59 36.05 20.83 20.83 34.47 2021/22 Qtr.1 25.86 40.05 23.18 23.18 47.76 Qtr.2 29.78 44.70 27.02 27.02 56.43 Qtr.3 31.74 68.33 28.94 28.94 68.29 Qtr.4 35.16 95.81 33.27 33.27 79.46 Average 30.64 62.22 28.10 28.10 62.99 2022/23 Qtr.1 50.90 105.47 52.65 52.65 94.03 Qtr.2 59.88 100.74 64.83 64.83 73.41 Qtr.3 61.29 98.37 67.30 67.30 70.60 Qtr.4 69.52 114.60 71.15 71.15 65.35 Average 60.40 104.79 63.98 63.98 75.85 Annual percentage change 97.2 68.4 127.7 127.7 20.4 Source: Ethiopian Petroleum Enterprise

33 | Annual Report 2022/23 Fig.II.3: Trends in Average Fuel Price in Addis Ababa 0 20 40 60 80 100 120 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 MGR Fuel Oil Gas Oil Kerosene Jet Fuel Source: Ethiopian Petroleum Enterprise.

34 | Annual Report 2022/23 III. PRICE DEVELOPMENTS 3.1. Developments in Consumer Price at National Level In 2022/23, annual average headline inflation reached 32.6 percent whereas food inflation contributed 19 percent and non-food inflation 13.6 percent. The headline inflation declined to 32.6 percent from 33.8 percent a year ago largely due to 8.6 percentage point slowdown in food & non-alcoholic beverage inflation. In contrast, non-food inflation rose from 25.2 percent to 33.9 percent during the same period (Table 3.1). The slowdown in annual average food & non-alcoholic beverage inflation was ascribed to decreased inflation of bread & cereals (11.5 percentage point), oils & fats (43.4 percentage points), food products (23.3 percentage points) and non-alcoholic beverages (27.3 percentage points). Bread and cereals contributed the 11.6 percent to the 31.7 percent average food price rise in 2022/23 (Table 3.3). Annual average non-food inflation increased by 8.7 percentage points and reached 33.9 percent in 2022/23 on account of higher inflation in transport (21.8 percentage points), clothing and foot wear (15.1 percentage points), restaurants & hotels) (13.3 percentage points), furniture, furnishing household equipment & operations (7.5 percentage points), recreation & culture (6.7 percentage points), house rent, construction materials, water, fuel & power (4.7 percentage points) and miscellaneous goods & services (25.4 percentage points). House rent, water, fuel and power had the biggest contribution (8.1 percent) to the 33.9 percent average non-food inflation recorded in 2022/23 (Table 3.4). Moreover, annual headline inflation declined to 29.3 percent from 34.0 percent a year ago owing to 10.1 percentage points decrease in food & non-alcoholic beverages inflation. Food inflation had 12.5 percent absolute growth while non-food inflation accounted for 16.8 percent of the annualized inflation recorded in 2022/23 (Table 3.2).

35 | Annual Report 2022/23 Table 3.1: Annual Average Inflation Rates (in %) Items Weight (%) 2021/22 2022/23 Change (in %age Points) Absolute Contribution to Headline Inflation of 2022/23 (in %) A B B-A C General 100 33.8 32.6 -1.3 32.6 Food &Non￾alcoholic beverages 54 40.3 31.7 -8.6 19.0 Non-Food 46 25.2 33.9 8.7 13.6 Source: Ethiopian Statistical Service(ESS) Fig.3.1: Developments in Average National Inflation Rates Source: ESS Table 3.2: Annual Year-on Year Inflation Rates (in %) Items Weight (%) 2021/22 2022/23 Change (in %age Points) Absolute Contribution to Headline Inflation of 2022/23 (in %) A B B-A C General 100 34.0 29.3 -4.7 29.3 Food &Non￾alcoholic beverages 54 38.1 28.0 -10.1 12.5 Non-Food 46 28.4 31.4 3.0 16.8 Source: ESS 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 January February March April May June July August September October November December January February March April May June July August September October November December January February March April May June 2021 2022 2023 Percent General Food & Non-alcoholic bevarages Non Food

36 | Annual Report 2022/23 Fig.3.2: Development in Annual Year-on-Year National Inflation Rate Source: ESS Table 3.3: Annual Average Food Inflation Rates (in %) (Dec. 2016=100) Items Weight 2021/22 2022/23 Change(in %age Points) Absolute Contribution to Food Inflation of 2022/23 (%) A B B-A C Food & Non-alcoholic beverages Inflation 0.54 40.3 31.7 -8.6 31.7 Bread & Cereals 0.17 42.3 30.8 -11.5 11.6 Meat 0.04 31.0 39.7 8.7 2.9 Fish and sea food 0.00 34.8 107.7 72.9 0.03 Milk, cheese & egg 0.03 35.3 41.5 6.2 2.1 Oils & Fats 0.04 86.9 43.5 -43.4 3.4 Fruit 0.00 31.0 45.2 14.2 0.2 Vegetables 0.12 26.0 30.1 4.1 6.2 Sugar jam, honey, chocolate 0.01 21.7 33.6 11.9 0.4 Food products n.e.c 0.06 37.4 14.1 -23.3 1.6 Non-alcoholic beverages 0.05 62.0 34.7 -27.3 3.0 Source: ESS 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0 January February March April May June July August September October November December January February March April May June July August September October November December January February March April May June 2021 2022 2023 General Food & Non-alcoholic bevarages Non Food

37 | Annual Report 2022/23 Table 3.4: Annual Average Non- Food Inflation Rates (in %) (Dec. 2016=100) Items Weight 2021/22 2022/23 Change(in %age Points) Absolute Contribution to Non-Food Inflation of 2022/23 (%) A B B-A C Non-Food Inflation 0.46 28.3 33.9 5.6 33.9 Alcoholic Beverages and tobacco 0.05 33.8 33.2 -0.6 3.6 Clothing and Footwear 0.06 24.6 39.7 15.1 5.8 Housing, Water, Electricity, Gas and other Fuel 0.17 19.3 23.9 4.6 8.1 Furnishings, Household Equipment and Routine maintenance of houses 0.05 43.4 51.0 7.6 6.5 Health 0.01 36.8 26.5 -10.3 0.6 Transport 0.02 7.5 29.3 21.8 1.7 Communication 0.02 9.5 5.3 -4.2 0.1 Recreation and culture 0.00 43.0 49.7 6.7 0.6 Education 0.00 27.3 20.1 -7.2 0.2 Restaurant & hotel 0.05 28.1 41.4 13.3 5.0 Miscellaneous Goods 0.03 29.0 54.3 25.4 2.9 Source: ESS 3.2 Consumer Price Developments in Regional States In 2022/23, the regional average headline inflation increased to 36.4 percent from 34.9 percent in the preceding year. Dire Dawa (44.8%), Afar (42.0%), Somali (40.2%) and Addis Ababa (37.3%) registered annual headline inflation rates greater than the regional average. Dire Dawa experienced the highest headline inflation of (44.8 percent) while the lowest (32.4 percent) was in Benshangul Gumuz and SNNP, revealing a 12.4 percentage point margin in the rates of inflation between regions with highest and lowest headline inflation (Table 3.5).

38 | Annual Report 2022/23 Table 3.5: Regional Average Annual Inflation (2022/23 FY) Regions 2021/22 2022/23 Change General Food &Non￾alcoholic beverages Non￾food General Food &Non￾alcoholic beverages Non￾food General Food &Non￾alcoholic beverages Non￾food A B C D E F G=D-A H=E-B I=F-C SNNP 34.9 44.9 20.8 32.4 31.7 33.5 -2.6 -13.2 12.7 Harari 37.0 41.5 33.4 33.5 35.9 31.5 -3.4 -5.5 -1.9 Oromia 38.1 43.5 29.8 33.5 32.3 35.6 -4.6 -11.2 5.8 Tigray Gambela 34.6 41.5 24.5 34.7 35.4 33.6 0.2 -6.1 9.2 Addis Ababa 29.8 36.6 24.1 37.3 35.5 39.0 7.5 -1.1 14.9 Dire Dawa 33.4 37.3 29.4 44.8 40.9 49.1 11.3 3.7 19.7 Ben. Gumuz 39.5 44.8 55.1 32.4 32.6 13.8 -7.1 -12.2 -41.3 Somali 35.7 43.8 25.6 40.2 37.3 44.5 4.5 -6.5 18.9 Afar 33.3 41.3 23.7 42.0 41.0 43.5 8.7 -0.3 19.8 Amhara 32.9 35.9 29.2 33.1 26.1 49.5 0.2 -9.8 20.3 Regions Average 34.9 41.1 29.6 36.4 34.9 37.4 Standard deviation 2.8 3.4 9.7 4.5 4.5 10.5 Coefficient of variation 8.0 8.3 32.9 12.3 12.8 28.2 Source: ESS Fig.3.3:Variation in Regional Annual Average Headline Inflation 34.9 37.0 38.1 34.6 29.8 33.4 39.5 35.7 33.3 32.9 32.4 33.5 33.5 34.7 37.3 44.8 32.4 40.2 42.0 33.1 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0 SNNP Harari Oromia Tigray Gambella Addis Ababa Dire Dawa Ben. Gum Somali Afar Amhara percent 2021/22 2022/23 Source: ESS

39 | Annual Report 2022/23 The regional average food & non￾alcoholic beverages inflation slowed down to 34.9 percent in 2022/23 from 41.1 percent last year. Food & non-alcoholic beverages inflation in Afar (41.0%), Dire Dawa(40.9%), Somali(37.3%), Harari(35.9%), Addis Ababa(35.5%) and Gambella(35.4%) was higher than the regional average. The highest food & non-alcoholic beverages inflation was registered in Afar and Dire Dawa (41.0%) while the lowest was in Amhara(26.1%), depicting a 14.9 percentage point margin among the regions (Table 3.5). Fig.3.4: Variation in Regional Annual Average Food & Non-alcoholic Beverages Inflation 44.9 41.5 43.5 41.5 36.6 37.3 44.8 43.8 41.3 35.9 31.7 35.9 32.3 35.4 35.5 40.9 32.6 37.3 41.0 26.1 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0 SNNP Harari Oromia Tigray Gambella Addis Ababa Dire Dawa Ben. Gum Somali Afar Amhara percent 2021/22 2022/23 Source: ESS

40 | Annual Report 2022/23 During 2022/23, average regional non￾food inflation increased to 37.4 percent from 29.6 percent in 2021/22. Amhara (49.5%), Dire Dawa(49.1%), Somali(44. 5%), Addis Ababa (39.0%) and Afar (43.5%) recorded non-food inflation higher than the regional average. The highest non-food inflation was recorded in Amhara (49.5%) and the lowest (13.8 %) in Benishangul Gumuz showing a 35.7 percentage point margin in the rate of non-food inflation among the regions (Table 3.5). Fig.3.5: Variation in Regional Annual Average Non-food Inflation 20.8 33.4 29.8 24.5 24.1 29.4 55.1 25.6 23.7 29.2 33.5 31.5 35.6 33.6 39.0 49.1 13.8 44.5 43.5 49.5 0.0 10.0 20.0 30.0 40.0 50.0 60.0 SNNP Harari Oromia Tigray Gambella Addis Ababa Dire Dawa Ben. Gum Somali Afar Amhara percent 2021/22 2022/23 Source: ESS

National Bank of Ethiopia 41 | Annual Report 2022/23 IV. MONETARY AND FINANCIAL DEVELOPMENTS 4.1 Monetary Developments and Policy Maintaining price stability remains one of the key objectives of the NBE. Accordingly, NBE has been taking various monetary policy actions to stem inflation. Yet, inflation has shown minimal improvement and remained off target due to several internal and external factors. Currently, the NBE has approved a three year strategic plan during which it aims to evolve from the current system of targeting monetary aggregates (typically reserve money) towards a price-based monetary policy regime. 4.1.1 Developments in Monetary Aggregate Domestic liquidity, as measured by broad money supply (M2), reached Birr 2.2 trillion at the end of 2022/23 reflecting a 26.6 percent annual growth. This was mainly due to the 26.6 percent expansion in domestic credit offsetting the decline in external asset (net). The high growth in domestic credit was attributed to a 38.4 percent and 23.3 percent increase in both credit to the central government and credit to the non-central government, respectively (Table 4.2). As for broad money growth, all of its components witnessed significant expansion where narrow money rose by 20.1 percent due to an increase in demand deposits and currency outside banks, reflecting improvements in money demand for transaction purposes. Similarly, quasi-money, that comprises savings and time deposits, increased 29.9 percent and reached Birr 1.46 trillion reflecting increased capacity of banks in deposit mobilization (Table 4.1).

National Bank of Ethiopia 42 | Annual Report 2022/23 Table 4.1: Components of Broad Money (Value in millions of birr) Source: NBE Fig.V.1: Major Components of Broad Money Source: NBE

500,000.0 1,000,000.0 1,500,000.0 2,000,000.0 2,500,000.0 In Millions of Birr Quasi- Money Net Demand Deposit Currency Outside Banks Particulars Year Ended June 30 Annual Percentage Change 2019/20 2020/21 2021/22 2022/23 2019/20 2020/21 2021/22 2022/23 Narrow Money Supply 360,585.5 437,392.0 588,015.8 706142.2 16.7 21.3 34.4 20.1 Currency Outside Banks 109,071.8 133,621.3 173,382.8 211,636.8 18.5 22.5 29.8 22.1 Demand Deposits (net) 251,513.7 303,770.7 414,633.0 494,505.4 15.9 20.8 36.5 19.3 Quasi-Money 677,060.8 910,874.2 1,127,294.2 1,464,706.2 17.2 34.5 23.8 29.9 Savings Deposits 589,174.1 816,380.3 1,016,048.8 1,315,260.4 20.9 38.6 24.5 29.4 Time Deposits 87,886.8 94,493.8 111,245.4 149,445.8 -2.9 7.5 17.7 34.3 Broad Money Supply 1,037,646.3 1,348,266.1 1,715,310.0 2,170,848.4 17.0 29.9 27.2 26.6

National Bank of Ethiopia 43 | Annual Report 2022/23 Table 4.2: Factors Influencing Broad Money (Value in millions of birr) Particulars Year Ended June 30 Annual Percentage Change 2019/20 2020/21 2021/22 2022/23 2019/20 2020/21 2021/22 2022/23 External Assets (net) -8,321.3 -812.3 -111,427.5 -160,097.7 -157.4 90.2

13,617.2 -43.7 Domestic Credit 1,176,926.4 1,481,844.4 1,930,621.8 2,444,435.5 22.1 25.9 30.3 26.6 Claims on Central Gov't (net) 137,082.9 214,269.2 421,213.7 585,441.9 24.8 56.3 96.6 38.4 Claims on Non-Central Gov't 1,039,843.5 1,267,575.3 1,509,408.1 1,858,993.6 21.8 21.9 19.1 23.3 Other Items (net) 130,957.8 132,766.0 103,884.2 113,489.4 43.2 1.4 -21.8 -9.2 Broad Money (M2) 1,037,646.3 1,348,266.1 1,715,310.0 2,170,848.4 17.0 29.9 27.2 26.6 Source: NBE Fig.IV.2: Major Determinants of Monetary Growth Source: NBE

-200.0 -150.0 -100.0 -50.0 0.0 50.0 100.0 150.0 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2020/22 2022/23 Annual Percentage Change Credit to Central Gov't Credit to Non-Central Gov't Broad Money Net Foreign Assets

National Bank of Ethiopia 44 | Annual Report 2022/23 4.1.2. Developments in Reserve Money and Monetary Ratios Reserve money or base money also witnessed an annual expansion of 32.0 percent to reach Birr 478.5 billion during the review fiscal year. The reserve money growth was attributed to 45.3 percent surge in deposits of banks at NBE and 22.1 percent growth in currency in circulation. Excess reserves of commercial banks reached Birr 73.9 billion at the end of June 2022/23 compared with Birr 48.7 billion a year ago. The ratio of broad money supply (M2) to GDP5 , an indicator of financial deepening, was 0.25, a slight decline from 0.28 last year same period, reflecting marginal weakening of financial liquidity and depth. The money multiplier, defined as the ratio of broad money to reserve money, declined to 4.7 from 4.5 a year ago implying that money was relatively created by the NBE rather than by commercial banks (Table 4.3).

5 The 2022/23 GDP is measured at current market price obtained from NPC estimate.

National Bank of Ethiopia 46 | Annual Report 2022/23 Table 4.3: Reserve Money and Monetary Ratios Particulars Year Ended June 30 Annual Percentage Change 2019/20 2020/21 2021/22 2022/23 2021/22 2022/23 Reserve Requirement (CB's) 51,952.6 61,720.9 119,022.6 147,931.4 92.8 24.3 Actual Reserve (CB's) 105,289.1 101,384.0 145,877.3 221,837.7 43.9 52.1 Excess Reserve (CB's) 53,336.5 39,663.1 26,854.7 73,906.3 -32.3 175.2 Reserve Money 246,545.4 264,301.8 362,498.7 478,471.7 37.2 32.0 . Currency in Circulation 140,521.1 163,709.1 208,211.3 254,316.1 27.2 22.1 . Bank Deposits 106,024.2 100,592.8 154,287.4 224,155.7 53.4 45.3 Money Multiplier (Ratio): . Narrow Money to Reserve Money 1.46 1.65 1.62 1.48 -2.0 -9.0 . Broad Money to Reserve Money 4.21 5.10 4.73 4.54 -7.2 -4.1 Other Monetary Ratios (%): . Currency to Narrow Money 30.25 30.55 29.49 29.97 -3.5 1.6 . Currency to Broad Money 10.51 9.91 10.11 9.75 2.0 -3.6 . Narrow Money to Broad Money 34.75 32.44 34.28 32.53 5.7 -5.1 . Quasi Money to Broad Money 65.25 67.56 65.72 67.47 -2.7 2.7 M2/GDP Ratio 0.31 0.31 0.28 0.25 -10.3 -10.7 Source: NBE Fig.IV.3: Reserve Money Source: NBE

National Bank of Ethiopia 47 | Annual Report 2022/23 4.2. Developments in Interest Rate In 2022/23, both the minimum and maximum saving deposit interest rates remained unchanged at 7.0 and 9.0 percent, respectively. Subsequently, the average saving deposit and weighted average demand deposit rate stood at their preceding year level of 8.0 and 0.05 percent, respectively. The weighted average time deposit rate, however; a slightly declined to 7.61 percent from 7.70 percent a year earlier. The simple average lending interest rate was at 14.25 percent. Accordingly, both the deposit and lending interest rates remained negative in real terms given 29.3 percent headline inflation during the review period (Table 4.4). Table 4.4: Interest Rate Structure of Commercial Banks (In percent per annum) Rates 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23

1. Deposit Rate 1.1 Savings Deposit (Simple Average) 5.38 5.38 8.0 8.00 Minimum 5.0 7.0 7.00 7.00 Maximum 5.75 9.0 9.00 9.00 1.2 Time deposit (Weighted Average) 5.54 8.09 8.07 7.94 7.8 7.70 7.61 Up to 1 year 5.43 8.05 8.02 7.88 7.75 7.66 7.57 1 -2 years 5.57 8.1 8.07 7.94 7.81 7.71 7.61 Over 2 years 5.63 8.13 8.11 7.99 7.83 7.75 7.65 1.3 Demand Deposit (Weighted Average) 0.04

0.05 2. Lending Rate (Average) 12.75 13.5 13.5 14.25 Minimum 7.5 7.00 Maximum 18.0 20.0 20.0 21.5 21.5 21.50 21.50 3. T-bills (Nominal) 1.42 1.42 1.74 4.54 7.97 9.46 9.71 4. Headline Inflation (Year-on-Year) 8.8 14.7 15.3 21.6 24.6 34.0 29.3 5. Real Rate of Interest on: 5.1 Saving Deposit (1.1 - 4) -3.43 -6.7 -7.28 -13.55 -16.6 -26.04 -21.30 5.2 Time Deposit (1.2 - 4) -3.26 -6.61 -7.21 -13.62 -16.8 -26.34 -21.69 5.3 Lending (2 - 4) 3.95 -1.2 -1.78 -7.3 -10.35 -19.79 -15.05

National Bank of Ethiopia 48 | Annual Report 2022/23 Fig.IV.4: Interest Rate Structure of Commercial Banks Source: NBE 4.3 Developments in Financial Sector Banks, insurance and capital good finance companies and micro-finance institutions constituted the major financial institutions operating in Ethiopia. At the end of June 2022/23, the number of banks reached 31, insurance companies 18 micro finance institutions 47 and capital goods finance 6. Banks opened 2,337 new branches in 2022/23, thereby raising the total number of branches to 11,281 from 8,944 a year ago. As a result, one bank branch serves about 9,514.36 people. About 32.6 percent of the bank branches were located in Addis Ababa. Major branch expansion was undertaken by Tseday Bank (364 branches), Siinqee Bank

6 Total population is 107,331,000 as CSA Estimation for 2023 (222 branches), Amahara Bank (178 branches), Cooperative Bank of Oromia (154 branches), Awash Bank (143 branches), Dashen Bank (140 branches), Bank of Abyssinia (128 branches) and Oromia Bank (101 branches). The share of private banks in total branch network rose to 80.0 percent from 76.1 percent last year (Table 4.5). At the same time, total capital of the banking industry showed a 24 percent annual growth to reach Birr 246.7 billion(Table 4.5). The branches of insurance companies increased to 741 following the opening of 51 new branches. About 56.4 percent of insurance branches were in Addis Ababa and 87.7 percent of the total branches were private. Their total capital increased by 22.6 percent to

National Bank of Ethiopia 49 | Annual Report 2022/23 Birr 16.4 billion, of which, the share of private insurance companies was 78.9 percent while that of the state-owned insurance company was 21.1 percent (Table 4.6). Fig.IV.5: Branch Network and Capital of Banking System (2019/20-2022/23) Source: Commercial Banks including DBE 29.0 27.3 23.9 20.0 50.8 52.6 41.5 36.2 71.0 72.7 76.1 80.0 49.2 47.4 58.5 63.8 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Percentage share from total Total Private Banks Total Public Banks

National Bank of Ethiopia 50 | Annual Report 2022/23 Table.4.5: Branch Network and Capital of the Banking System at the Close of June 30, 2023 (Branch in Number and Capital in Millions of Birr)

1. State owned Banks Commercial Bank of Ethiopia 1597 460 2057 23.0 1696.0 477.0 2173.0 19.3 52,387.8 26.3 58296.7 23.6 Development Bank of Ethiopia 77 6 83 0.9 77.0 6.0 83.0 0.7 30,115.9 15.1 30968.6 12.6 Total State owned Banks 1674 466 2140 23.9 1773.0 483.0 2256.0 20.0 82,503.7 41.5 89265.3 36.2
2. Private Banks Awash Bank 489.0 261.0 750.0 8.4 597.0 296.0 893.0 7.9 14,035.8 7.1 19729.3 8.0 Dashen Bank 512.0 209.0 721.0 8.1 566.0 295.0 861.0 7.6 9,676.8 4.9 15707.1 6.4 Bank of Abyssinia 530.0 273.0 803.0 9.0 602.0 329.0 931.0 8.3 9,898.6 5.0 14286.3 5.8 Wegagen Bank 271.0 149.0 420.0 4.7 282.0 154.0 436.0 3.9 5,252.9 2.6 5996.5 2.4 Hibret Bank 223.0 206.0 429.0 4.8 254.0 232.0 486.0 4.3 5,771.9 2.9 6568.1 2.7 Nib International Bank 214.0 223.0 437.0 4.9 227.0 234.0 461.0 4.1 6,484.4 3.3 8080.5 3.3 Cooperative Bank of Oromia 466.0 136.0 602.0 6.7 553.0 203.0 756.0 6.7 9,225.8 4.6 12217.8 5.0 Lion International Bank 204.0 88.0 292.0 3.3 205.0 94.0 299.0 2.7 3,332.9 1.7 3496.8 1.4 Oromia Bank 274.0 142.0 416.0 4.7 339.0 178.0 517.0 4.6 5,448.0 2.7 6980.5 2.8 Zemen Bank 29.0 53.0 82.0 0.9 37.0 64.0 101.0 0.9 4,739.8 2.4 6570.6 2.7 Buna Bank 215.0 159.0 374.0 4.2 301.0 171.0 472.0 4.2 3,969.1 2.0 5142.0 2.1 Berhan Bank 195.0 154.0 349.0 3.9 227.0 171.0 398.0 3.5 3,844.4 1.9 4329.7 1.8 Abay Bank 284.0 127.0 411.0 4.6 338.0 171.0 509.0 4.5 4,693.4 2.4 5960.3 2.4 Addis Interational Bank 49.0 70.0 119.0 1.3 62.0 72.0 134.0 1.2 1,711.5 0.9 2179.6 0.9 Debub Global Bank 62.0 73.0 135.0 1.5 70.0 84.0 154.0 1.4 1,840.4 0.9 2406.9 1.0 Enat Bank 54.0 52.0 106.0 1.2 88.0 65.0 153.0 1.4 2,261.4 1.1 3019.0 1.2 Hijra Bank 32.0 12.0 44.0 0.5 53.0 18.0 71.0 0.6 980.5 0.5 1274.8 0.5 Zamzam Bank 22.0 23.0 45.0 0.5 41.0 37.0 78.0 0.7 1,461.6 0.7 1753.4 0.7 Goh Betoch Bank 1.0 3.0 4.0 0.0 4.0 4.0 8.0 0.1 780.0 0.4 1324.8 0.5 Siinqee Bank 132.0 2.0 134.0 1.5 292.0 64.0 356.0 3.2 7,124.6 3.6 7643.2 3.1 Tseday Bank 10.0 20.0 30.0 0.3 357.0 37.0 394.0 3.5 7,949.6 4.0 11330.7 4.6 Shebele Bank 0.0 19.0 4.0 23.0 0.2 525.9 0.3 609.6 0.2 Amahara Bank 73.0 28.0 101.0 1.1 166.0 113.0 279.0 2.5 5,526.0 2.8 5891.5 2.4 Ahadu Bank 0.0 32.0 44.0 76.0 0.7 - - 672.6 0.3 Tsehay Bank 0.0 49.0 37.0 86.0 0.8 - - 1087.8 0.4 Sidama Bank S.C 0.0 15.0 1.0 16.0 0.1 - - 688.1 0.3 Omo Bank S.C 0.0 - - 919.5 0.4 Gadaa Bank 0.0 44.0 18.0 62.0 0.5 - - 943.0 0.4 Ramis Bank S.C 0.0 13.0 2.0 15.0 0.1 - 636.1 0.3 Total Private Banks 4,341 2,463 6,804.0 76.1 5,833.0 3,192.0 9,025.0 80.0 116,535.2 58.5 157,446.2 63.8 3.Grand Total Banks 6,015.0 2,929.0 8,944.0 100.0 7,606.0 3,675.0 11,281.0 100.0 199,038.9 100.0 246,711.5 100.0 Addis Ababa Total Addis Ababa Total % Share Regions Capital 2021/22 2022/23 2021/22 2022/23 Banks Branch Network Regions % Share % Share Total Capital % Share Total Capital Source: Commercial Banks & DBE

National Bank of Ethiopia 51 | Annual Report 2022/23 Table.4.6: Branch Network & Capital of Insurance Companies as at June 30, 2023 (Branch in Number and Capital in Millions of Birr) Source: Insurance Companies Note: A.A=Addis Ababa Fig.IV.6: Branch Network and Capital of Insurance Companies (2019/20-2022/23) Source: Insurance Companies 2021/22 2022/23 % Change A.A Regions Total A.A Regions Total A B B/A 1 Ethiopian Ins. Cor. 25 66 91 25 66 91 3,376 3,466 2.7 2 Awash Ins.Com.S.C. 30 26 56 32 27 59 1,898 2,553 34.5 3 Africa Ins.Com S.C. 18 14 32 20 15 35 410 435 6.1 4 National Ins. Co. of Eth. 22 17 39 25 17 42 296 359 21.3 5 United Ins.Com. S.C 30 13 43 34 16 50 797 1,363 71.0 6 Global Ins. Com.S.C 12 8 20 13 9 22 280 272 -2.9 7 Nile Ins.Com.S.C 33 24 57 35 24 59 940 1,242 32.1 8 Nyala Ins.Com.S.C 18 18 36 19 19 38 1,260 1,370 8.7 9 Nib Ins. Com.S.C 30 15 45 31 16 47 844 995 17.9 10 Lion Ins. Com.S.C 19 22 41 19 22 41 346 400 15.6 11 Ethio-Life Ins.Com.S.c 20 6 26 21 8 29 228 286 25.4 12 Oromia Ins.Com.S.c 25 25 50 27 28 55 972 1,350 38.9 13 Abay Insurance 16 15 31 21 16 37 516 675 30.8 14 Berhan insurance S.C 15 8 23 19 8 27 266 355 33.5 15 Tsehay Insurance S.C 22 10 32 24 10 34 378 489 29.4 16 Lucy Insurance 18 6 24 18 6 24 162 216 33.3 17 Bunna Insurance S.C. 17 12 29 19 13 32 255 374 46.7 18 Zemen Insurance S.C. 12 3 15 16 3 19 154 199 29.2 Total 382 308 690 418 323 741 13,378.0 16,399.0 22.6 No. Capital 2022/23 Insurance Companies 2021/22 Branch 14.9 14.2 13.2 12.3 29.7 26.4 25.2 21.1 85.1 85.8 86.8 87.7 70.3 73.6 74.8 78.9 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Percentage Share from total State Owned Insurances Companies Private Insurances Companies

National Bank of Ethiopia 52 | Annual Report 2022/23 By end of 2022/23, the number of micro￾finance institutions (MFIs) reached 47. The total capital of microfinance institutions decreased by 20.5 percent due to the transformation of some of the micro-finance institutions into a bank while their total asset increased by 18 percent (Birr 54.4 billion) At the same time, their deposit mobilization and credit facility also expanded remarkably. Compared to last year, their deposit went up by 28.8 percent and reached Birr 27.9 billion while their outstanding credit increased by 23.7 percent to Birr 39.2 billion indicating their expanded outreach (Table 4.7). Table 4.7: Microfinance Institutions Performance as of June 30, 2023 (In thousands of birr) 2021/22 2022/23 % Change A B C= B/A Total Capital 12,079,853.6 9,597,910.0 -20.5 Saving 21,670,882.0 27,903,518.7 28.8 Credit 31,654,784.3 39,171,342.4 23.7 Total Assets 46,129,535.9 54,445,035.9 18.0 Particulars Source: MFIs 4.3.1 Resource Mobilization Total resources mobilized by the banking system in the form of deposit, borrowing and loan collection increased by 41.1 percent and reached Birr 884.3 billion at the end of 2022/23 (Table 4.8). Aided by remarkable branch expansion, deposit liabilities of the banking system topped Birr 2.2 trillion, reflecting 27 percent annual growth whereby saving deposits increased by 30.1 percent, demand deposit by 20.6 percent and time deposit by 30.8 percent. Of the total deposits, saving deposits accounted for 61.1 percent, demand deposits 31.7 percent and time deposit 7.2 percent (Table 4.9). The share of private banks in total deposit mobilization increased to 51.2 partly due to the opening of 2,337 new branches. CBE alone mobilized 48.7 percent of the total deposits due to its extensive branch network. Raising funds through borrowing by the banking system remained insignificant as most of the banks were sufficiently liquid due to increased deposit mobilization and collection of loans. Their total outstanding borrowing stood at Birr

National Bank of Ethiopia 53 | Annual Report 2022/23 108.9 billion up from Birr 86.1 billion a year earlier due to borrowing by Development Bank of Ethiopia (DBE). Of the total borrowing, domestic sources accounted for 75.8 percent and foreign sources 24.2 percent. Its net borrowing was Birr 22.8 billion (Table 4.8 & 4.9). Moreover, banks collected Birr 401.0 billion in 2022/23, showing a 45 percent annual increment. Private banks collected 64.6 percent of the loans during the review period (Table 4.8). Table 4.8: Annual Resource Mobilization & Disbursing Activities of Commercial Banks and DBE (Specialized Bank) as at June 30, 2023 Public Banks Private Banks Total (A) Public Banks Private Banks Total (B) Public Banks Private Banks Total (C) C/A C/B

1. Deposits (net change) 139,813.4 175,598.7 315,412.0 154,697.8 193,509.4 348,207.2 164,146.8 296,342.8 460,489.6 46.0 32.2 Demand 27,982.7 55,519.9 83,502.5 62,313.4 66,215.7 128,529.0 45,059.5 72,075.4 117,135.0 40.3 (8.9) Savings 115,460.6 112,694.2 228,154.8 86,809.4 112,483.4 199,292.8 117,549.8 188,920.5 306,470.4 34.3 53.8 Time (3,629.9) 7,384.6 3,754.7 5,575.0 14,810.4 20,385.4 1,537.4 35,346.9 36,884.3 882.4 80.9
2. Borrowing (net change) 3,739.4 - 3,739.4 1,890.8 - 1,890.8 22,788.9 - 22,788.9 509.4 1,105.3 Local 49.4 - 49.4 (2,010.0) - (2,010.0) 16,053.3 - 16,053.3 32,383.2 698.7 Foreign 3,690.0 - 3,690.0 3,900.8 - 3,900.8 6,735.5 - 6,735.5 82.5 72.7
3. Collection of Loans 63,548.9 122,451.5 186,000.4 72,697.6 203,782.5 276,480.1 142,098.0 258,905.5 401,003.4 115.6 45.0
4. Total Resources Mobilized (1+2+3) 207,101.7 298,050.2 505,151.9 229,286.2 397,291.9 626,578.1 329,033.6 555,248.3 884,282.0 75.1 41.1
5. Disbursement 121,322.2 208,128.8 329,451.0 129,141.5 298,767.5 427,909.0 160,127.0 387,549.7 547,676.7 66.2 28.0
6. Change in Liquidity (4-5) 85,779.5 89,921.4 175,700.9 100,144.7 98,524.4 198,669.1 168,906.7 167,698.6 336,605.3 91.6 69.4 Memorandum Item: -
7. Outstanding Credit 763,657.4 519,626.4 1,283,283.8 700,732.7 889,630.3 1,590,362.9 948,485.2 1,002,084.6 1,950,569.8 52.0 22.6 2021/22 2022/23 Percent Change Particulars 2020/21 (In Millions of Birr) Source: Commercial Banks & DBE

National Bank of Ethiopia 54 | Annual Report 2022/23 Table 4.9: Deposits and Borrowings of Commercial Banks and Specialized Bank as at June 30, 2023 (In Millions of Birr) Source: Commercial Banks & DBE Table.4.10: Loans and Advances by Lenders (In Millions of Birr) D* C* O/S* D* C* O/S* A B C D E F D/A E/B F/C A.Public Banks 1.Commercial Bank of Ethiopia 175,386.38 112,382.64 789,481.07 140,823.73 128,616.86 876,079.80 -19.7 14.4 11.0 2.Development Bank of Ethiopia 10,505.01 10,851.38 58,174.17 19,303.24 13,481.10 72,405.38 83.8 24.2 24.5 Sub-Total 185,891.4 123,234.0 847,655.2 160,127.0 142,098.0 948,485.2 -13.9 15.3 11.9 B. Private Banks Awash Bank 47287.9 22243.9 129217.1 58915.0 36847.5 160987.1 24.6 65.7 24.6 Dashen Bank 25152.2 20048.5 76071.8 45781.2 39029.2 101964.6 82.0 94.7 34.0 Bank of Abyssinia 36148.3 15924.5 113942.8 39865.5 21631.1 147990.9 10.3 35.8 29.9 Wegagen Bank 5003.8 5944.8 30476.0 12661.8 9662.2 39661.5 153.0 62.5 30.1 United Bank 13391.5 12291.5 43881.3 19356.1 17767.0 60255.1 44.5 44.5 37.3 Nib International Bank 10929.2 8616.0 39406.3 21412.1 10778.2 54181.9 95.9 25.1 37.5 Cooperatives Bank of Oromia 37607.9 18781.7 84255.9 30994.9 28337.2 102048.3 -17.6 50.9 21.1 Lion International Bank 1068.7 1935.5 25195.6 2255.0 2824.0 28372.9 111.0 45.9 12.6 Zemen Bank 8061.2 5500.7 21412.5 13555.3 8004.1 31825.6 68.2 45.5 48.6 Oromia Bank 10170.0 8526.6 32183.1 14718.1 12834.2 42674.6 44.7 50.5 32.6 Berhan Bank 8152.1 6720.7 21829.8 12089.3 10660.4 28478.3 48.3 58.6 30.5 Buna International Bank 7045.6 5454.6 25069.0 11340.1 5216.8 34633.7 61.0 -4.4 38.2 Abay Bank 11136.1 5562.2 26296.3 13468.0 7140.6 35584.2 20.9 28.4 35.3 Addis International Bank 1149.9 1179.3 6143.0 1378.0 1641.5 7592.1 19.8 39.2 23.6 Debub Global Bank 2555.8 4711.3 9598.2 4508.9 3465.0 13998.1 76.4 -26.5 45.8 Enat Bank 1689.8 1905.2 11443.1 4400.2 4030.3 15368.2 160.4 111.5 34.3 ZemZem Bank 1431.0 15.3 691.6 7696.7 1744.5 3617.9 437.8 11282.6 423.1 Hijira Bank 654.1 4.9 374.6 7249.5 647.2 3013.7 1008.4 13097.1 704.6 Goh Betoch Bank 302.9 9.5 298.5 1050.4 188.7 1318.6 246.8 1878.3 341.7 Tseday Bank 9767.3 6813.0 26880.4 32760.1 24110.1 37174.9 235.4 253.9 38.3 Shebelle Bank 67.9 56.7 1939.6 387.4 396.9 1934.3 470.8 600.5 -0.3 Siinqee Bank 3244.6 999.7 16101.4 12342.4 7717.2 24019.4 280.4 672.0 49.2 Amhara Bank 0.0 13273.0 1146.1 15201.0 0.0 Sidama Bank 0.0 425.9 384.9 550.6 0.0 Omo Bank 0.0 2799.7 2630.0 6807.8 0.0 Tsehay Bank 0.0 1102.4 32.3 1063.9 0.0 Ahadu Bank 0.0 896.0 18.5 899.0 0.0 Gadaa Bank 0.0 867.1 19.6 866.3 0.0 Sub-Total 242,017.6 153,246.1 742,707.7 387,549.7 258,905.5 1,002,084.6 60.1 68.9 34.9 Grand Total 427,909.0 276,480.1 1,590,362.9 547,676.7 401,003.4 1,950,569.8 28.0 45.0 22.6 Lenders 2021/22 Percentage Change 2022/23 Source: Commercial Banks D*=Disbursement, C*=Collection, O/S*= Outstanding Credit 2020/21 2021/22 2022/23 % Change A B C D=B/A E=C/B A. Deposits -Demand 439,831.1 568,360.2 685,495.1 29.2 20.6 -Savings 817,619.8 1,016,912.6 1,323,382.9 24.4 30.1 -Time 99,371.4 119,756.8 156,641.1 20.5 30.8 T o t a l 1,356,822.3 1,705,029.5 2,165,519.2 25.7 27.0 B. Borrowings -Local 68,466.3 66,456.3 82,509.6 -2.9 24.2 -Foreign 15,716.0 19,616.8 26,352.3 24.8 34.3 T o t a l 84,182.3 86,073.1 108,862.0 2.2 26.5 Particulars

National Bank of Ethiopia 55 | Annual Report 2022/23 4.3.2 New Lending Activities Commercial banks and Development Bank of Ethiopia (DBE) disbursed Birr 547 billion in fresh loans which was 28.0 percent higher than a year ago (Table 4.10). Of the total new loans, about 70.8 percent was provided by private banks and 29.2 percent by the two state owned banks (i.e. CBE and DBE) (Table 4.11). Sector wise, the share of international trade in the new disbursed loan was (20.8 percent) followed by domestic trade (18.3 percent), agriculture (13.9 percent), consumer & staff loan (12.9 percent), manufacturing (12.1 percent), building & construction (8.2 percent), and the others. Fig.IV.7: Development in Net Deposit, Lending and Loan Collection Activities of the Banking System (2020/21-2022/23) Source: Commercial Banks and DBE 0 50000 100000 150000 200000 250000 300000 350000 400000 450000 Value in Millions of Birr Net Deposit Lending Loan collection

National Bank of Ethiopia 56 | Annual Report 2022/23 Table 4.11: Percentage Share of Loans and Advances by Lenders D* C* O/S* D* C* O/S* A B C D E F D/A E/B F/C A.Public Banks 1.Commercial Bank of Ethiopia 41.0 40.6 49.6 25.7 32.1 44.9 (37.3) (21.1) (9.5) 2.Development Bank of Ethiopia 2.5 3.9 3.7 3.5 3.4 3.7 43.6 (14.3) 1.5 Sub-Total 43.4 44.6 53.3 29.2 35.4 48.6 (32.7) (20.5) (8.8) B.Private Banks Awash Bank 11.1 8.0 8.1 10.8 9.2 8.3 (2.7) 14.2 1.6 Dashen Bank 5.9 7.3 4.8 8.4 9.7 5.2 42.2 34.2 9.3 Bank of Abyssinia 8.4 5.8 7.2 7.3 5.4 7.6 (13.8) (6.3) 5.9 Wegagen Bank 1.2 2.2 1.9 2.3 2.4 2.0 97.7 12.1 6.1 United Bank 3.1 4.4 2.8 3.5 4.4 3.1 12.9 (0.3) 12.0 Nib International Bank 2.6 3.1 2.5 3.9 2.7 2.8 53.1 (13.8) 12.1 Cooperatives Bank of Oromia 8.8 6.8 5.3 5.7 7.1 5.2 (35.6) 4.0 (1.2) Lion International Bank 0.2 0.7 1.6 0.4 0.7 1.5 64.9 0.6 (8.2) Zemen Bank 1.9 2.0 1.3 2.5 2.0 1.6 31.4 0.3 21.2 Oromia Bank 2.4 3.1 2.0 2.7 3.2 2.2 13.1 3.8 8.1 Berhan Bank 1.9 2.4 1.4 2.2 2.7 1.5 15.9 9.4 6.4 Buna International Bank 1.6 2.0 1.6 2.1 1.3 1.8 25.8 (34.1) 12.6 Abay Bank 2.6 2.0 1.7 2.5 1.8 1.8 (5.5) (11.5) 10.3 Addis International Bank 0.3 0.4 0.4 0.3 0.4 0.4 (6.4) (4.0) 0.8 Debub Global Bank 0.6 1.7 0.6 0.8 0.9 0.7 37.8 (49.3) 18.9 Enat Bank 0.4 0.7 0.7 0.8 1.0 0.8 103.5 45.9 9.5 ZemZem Bank 0.3 0.0 0.0 1.4 0.4 0.2 320.2 7,747.9 326.5 Hijira Bank 0.2 0.0 0.0 1.3 0.2 0.2 766.0 8,999.0 556.0 Goh Betoch Bank 0.1 0.0 0.0 0.2 0.0 0.1 171.0 1,264.0 260.2 Tseday Bank 2.3 2.5 1.7 6.0 6.0 1.9 162.1 144.0 12.8 Shebelle Bank 0.0 0.0 0.1 346.0 383.0 (18.7) Siinqee Bank 0.8 0.4 1.0 2.3 1.9 1.2 197.2 432.2 21.6 Amhara Bank - - - 2.4 0.3 0.8 - - - Sidama Bank - - - 0.1 0.1 0.0 - - - Omo Bank - - - 0.5 0.7 0.3 - - - Tsehay Bank - - - 0.2 0.0 0.1 - - - Ahadu Bank - - - 0.2 0.0 0.0 - - - Gadaa Bank - - - 0.2 0.0 0.0 - - - Sub-Total 56.6 55.4 46.7 70.8 64.6 51.4 25.1 16.5 10.0 Grand Total 100.0 - - Lenders 2021/22 Percentage Change 2022/23 Source: Commercial Banks D*=Disbursement, C*=Collection, O/S*= Outstanding Credit 4.3.3 Outstanding Loans Outstanding credit of the banking system (including corporate bond) increased by 22.6 percent and reached Birr 1.95 trillion at the end of June, 2023. About 18.0 percent of the outstanding loan went to manufacturing, followed by international trade (15.6 percent), domestic trade (12.3 percent), mines, power and water resources (10.9 percent), building construction (9.1 percent), consumer and staff loan (7.1 percent), agriculture (4.8 percent) and others (Table 4.12).

National Bank of Ethiopia 57 | Annual Report 2022/23 The share of private sector in outstanding credit was Birr 1,203.3 billion (or 61.7 percent) reflecting a 22.6 percent year￾on-year growth (Table 4.13). Table 4.12: Loans & Advances by Economic Sectors (In Millions of Birr) D* C* O/S* D* C* O/S* D* C* O/S* A B C D E F D/A E/B F/C Agriculture 21,374.6 25,087.5 52,002.7 75,885.3 77,174.5 93,402.0 255.0 207.6 79.6 Manufacturing 52,097.8 61,864.1 297,560.2 66,382.8 49,664.2 351,511.4 27.4 (19.7) 18.1 Domestic Trade 61,303.6 41,204.5 151,615.5 100,111.9 68,726.3 239,715.1 63.3 66.8 58.1 International Trade 136,302.2 80,160.8 294,692.1 113,940.8 91,200.6 304,752.6 (16.4) 13.8 3.4 Export 65,926.1 41,650.1 176,404.1 85,650.6 62,984.0 205,423.2 29.9 51.2 16.5 Import 70,376.1 38,510.8 118,288.0 28,290.2 28,216.7 99,329.5 (59.8) (26.7) (16.0) Hotels and Tourism 4,569.8 5,891.3 29,814.9 10,963.0 8,145.7 37,883.9 139.9 38.3 27.1 Building and Construction 33,597.5 22,277.5 170,072.4 44,987.3 40,819.1 176,836.0 33.9 83.2 4.0 Mines, Power and Water resources 40,694.9 3,697.1 359,757.9 15,885.5 1,129.1 212,413.5 (61.0) (69.5) (41.0) Financial Institutions 5,136.4 1,920.2 8,820.4 7,186.0 5,112.2 12,917.1 39.9 166.2 46.4 Transport and Communication 28,651.5 5,622.9 112,755.1 22,527.7 9,083.3 31,402.2 (21.4) 61.5 (72.2) Health and Education 1,041.8 449.1 2,781.7 2,153.0 1,064.0 4,292.4 106.7 136.9 54.3 Consumer and Staff Loans 34,568.6 19,795.3 91,334.9 70,663.0 29,010.4 138,265.5 104.4 46.6 51.4 Other Sectors 8,570.3 8,509.8 19,155.1 16,990.3 19,874.1 347,178.1 98.2 133.5 1,712.5 Total 427,909.0 276,480.1 1,590,362.9 547,676.7 401,003.4 1,950,569.8 28.0 45.0 22.6 2021/22 2022/23 Economic Sectors Percentage Change Source: Commercial Banks & DBE D*=Disbursement, C*=Collection, O/S*= Outstanding Credit

National Bank of Ethiopia 58 | Annual Report 2022/23 Fig.IV.8: Sectorial Breakdown of Bank Credit (2020/21-2022/23) 0 200000 400000 600000 800000 1000000 1200000 1400000 1600000 1800000 2000000 2020/21 2021/22 2022/23 In Millions of Birr Agriculture Others Housing & Construction International Trade Domestic Trade & Services Industry Source: Commercial Banks including DBE Table 4.13: Loans and Advances by Borrowers (In Millions of Birr) 2019/20 2020/21 2021/22 O/S* O/S* O/S* D* C* O/S* A B C E F G G/B G/C Corporate Bond 405,235.4 444,871.7 502,578.4 27,103.0 25,095.9 567,138.3 27.5 12.8 Public Enterprises 547,616.6 612,774.3 700,732.7 75,801.5 83,984.7 747,220.6 21.9 6.6 Cooperatives 19,891.0 29,129.8 21,398.8 9,751.2 8,475.0 21,148.1 -27.4 -1.2 Private & Individuals 464,695.4 641,379.7 868,231.5 462,124.0 308,543.7 1,182,201.1 84.3 36.2 Total 1,032,203.0 1,283,283.8 1,590,362.9 547,676.7 401,003.4 1,950,569.8 52.0 22.6 2022/23 Borrowing Sector Percentage change

National Bank of Ethiopia 59 | Annual Report 2022/23 4.4. Financial Activities of NBE As of June 2023, gross claims of NBE on the central government reached Birr 564.0 billion which was 57.8 percent higher than a year earlier. Of the total credit to the central government, bond accounted for 77.0 percent and direct advance 23.0 percent. Similarly, NBE’s outstanding claim on DBE remained at Birr 44.8 billion. On the liability side, total deposits at NBE surged by 43.8 percent and stood at Birr 266.9 billion due to the increase in 45.2 percent deposit by financial institutions (Table 4.14). Table 4.14: Financial Activities of National Bank of Ethiopia (In Millions of Birr) 2020/21 2021/22 2022/23 A B C B/A C/B Loans and Advances (1+2) 338,505.3 402,249.8 608,814.3 18.8 51.4 1.Claims on Central Gov’t 281,862.6 357,427.1 563,991.5 26.8 57.8 1.1 Direct Advance 83,500.0 159,500.0 130,000.0 91.0 -18.5 1.2 Bonds 198,362.6 197,927.1 433,991.5 -0.2 119.3 2. Claims on DBE 56,642.7 44,822.7 44,822.7 -20.9 0.0 3. Deposit Liabilities 137,565.9 185,675.5 266,929.9 35.0 43.8 3.1 Government 36,843.5 31,210.8 42,691.6 -15.3 36.8 3.2 Financial Institutions 100,722.4 154,464.7 224,238.3 53.4 45.2 Particulars % Change Source: NBE

National Bank of Ethiopia 60 | Annual Report 2022/23 4.5 Developments in Financial Markets In the absence of secondary market in Ethiopia, government bonds were occasionally issued to finance government expenditures and/or to absorb excess liquidity in the banking system. Similarly, Treasury bills were auctioned regularly on bi-weekly basis. Banks also buy T-bonds based on their new monthly loan disbursements. 4.5.1. Treasury Bills Market In 2022/23, T-bills supplied to the bi￾weekly auction amounted to Birr 1.3 Billion reflecting a 48.9 percent annual increment. At the same time, the demand for T-bills decreased by 0.7 percent to Birr 595.2 billion indicating that the market was undersubscribed by Birr 682.8 billion (53.4 percent). Meanwhile, the amount of T-bills sold reached Birr 576.1 billion of which T￾bills worth Birr 317.8 billion were bought by banks and Birr 236 billion by non-bank institutions. Birr 22.3 billion (net of redemption) was mobilized for government financing from the T￾bills sale during the fiscal year. Thus, total outstanding T-bills rose 7.8 percent and stood at Birr 341.9 billion, of which, banks accounted for Birr 146.6 billion (42.9 %) and nonbank institutions Birr 195.3 billion (57.1%) (Table 4.15). The average weighted T-bills yield increased to 9.704 percent from 9.459 percent, depicting a 2.6 percent annual growth (Table 4.15). The highest yield (10.354 percent) was recorded for 91-day T-bills and the lowest (9.416 percent) for 364-day T-bills.

National Bank of Ethiopia 61 | Annual Report 2022/23 Table 4.15: Results of Annual Treasury Bills Auction C/A C/B Number of Bidders 57.32 8.19 Amount Demanded (Mn.Birr) 109.01 (0.71) 28-day bill 87.27 13.88 91-day bill 1.27 (26.18) 182-day bill 138.24 16.49 364-day bill 496.22 5.62 Amount Supplied (Mn.Birr) 286.51 48.88 28-day bill 465.76 134.92 91-day bill 228.60 58.06 182-day bill 189.43 54.21 364-day bill 515.44 17.97 Amount Sold (Mn.Birr) 141.24 (1.06) Banks 176.18 (30.15) Non-Banks 117.29 55.28 Redemption (Mn. Birr) 297.40 43.72 Banks 446.01 29.25 Non-Banks 190.80 69.25 NetAmount (Mn. Birr) (77.58) (88.68) Banks (227.34) (135.88) Non-Banks 18.73 22.18 28-day bill (0.21) (0.07) 91-day bill (0.50) 0.02 182-day bill (0.84) (0.01) 364-day bill (0.35) (0.10) 28-day bill 40.11 10.78 91-day bill 24.80 (0.76) 182-day bill 22.76 0.16 364-day bill 4.24 1.21 Banks 55,040.00 45.50 195,432.29 61.62 146,568.05 42.87 -25.003 Non-Banks 65,919.95 54.50 121,737.30 38.38 195,301.48 57.13 196.271 60.429 Public Servants Social Security Agency 45,269.95 37.43 84,307.00 26.58 134,327.92 39.29 196.726 59.332 Development Bank of Ethiopia - 0.00 - 0.00 - 0.00 Private Organizations’ Employees Social Security Agency 20,600.00 17.03 37,330.30 11.77 60,873.56 17.81 195.503 63.067 Other Non-Bank Institutions 50.00 0.04 100.00 0.03 100.00 0.03 - Share % 182.630 7.788 Outstanding bills at the end of period(Mn.Br.) 120,959.950 Share % 317,169.585 Share % 341,869.525 7.723 9.466 9.480 9.032 9.303 9.416 6.826 8.634 9.565 8.297 10.433 10.354 Average Weighted Yeild for Successful bids(%) 7.970 9.459 9.704 21.76 2.59 96.292 95.493 95.486 91.737 91.510 91.416 99.479 99.342 99.272 97.973 97.465 97.484 Average Weighted Price for Successful bids(Birr) 96.370 95.953 95.914 (0.47) (0.04) 38,922.6 138,142.3 -49,564.2 60,525.400 58,817.350 71,864.175 81,143.7 139,419.0 235,962.1 99,447.95 196,959.64 22,299.94 139,351.600 385,308.990 553,781.400 58,207.9 245,890.0 317,819.3 97,130.4 384,032.3 268,255.1 141,669.1 198,236.3 307,826.2 59,850.0 312,244.4 368,343.6 238,799.550 582,268.625 576,081.340 108,117.0 224,773.8 355,267.6 132,476.0 248,645.6 383,427.1 330,673.000 858,468.750 1,278,068.290 30,230.0 72,805.0 171,030.0 72,176.3 147,606.1 171,949.9 34,868.4 196,825.1 207,891.3 41,148.6 67,664.8 77,059.0 136,590.3 187,382.6 138,331.1 403.00 586.00 634.00 284,783.550 599,478.625 595,231.335 Particulars 2020/21 2021/22 2022/23 Percentage Change A B C

National Bank of Ethiopia 62 | Annual Report 2022/23 Fig.IV.9: Treasury Bills Auction Result 4.5.2. Corporate Bonds Market Commercial Bank of Ethiopia (CBE) purchased corporate bonds to the tune of Birr 492.4 billion showing a 664.13 percent annual increase. During the same period, corporate bonds valued at Birr 15.6 billion were redeemed, of which Birr 15.6 billion was by Addis Ababa City Administration, Birr 192.2 billion by EEP, 31.4 billion by Railway Corporation and Birr 79.4 million by regional governments (Table 4.16). Thus, in 2023, outstanding bond held by CBE showed a 12.8 percent annual increase to Birr 567.1 billion. The share of Liability & Asset Management Corporation in outstanding corporate bond was 50.6 percent followed by EEP (41.7 percent) and Addis Ababa City Administration (7.7 percent).

National Bank of Ethiopia 63 | Annual Report 2022/23 Table 4.16. Disbursement, Redemption and Outstanding of Coupon and Corporate Bond of CBE (In Millions of Birr) Particulars Annual The first Twelve Months of Percentage Change 2020/21 2021/22 2022/23 Actual A B B/A

1. Corporate Bond Purchases by holders 43,768.87 64,444.24 492,436.77 664.13 EEP 19,856.55 40,306.18 250,042.81 520.36 Regional governments 0.00 - - Development Bank of Ethiopia 0.00 - - - City Government of Addis Ababa 13,587.37 5,000.00 5,000.00 0.0 Railway Corporation 10,324.95 19,138.06 8,603.01 -55.05 Private Sector - Liability & Asset Management Corp. 228,790.95 -
2. Redemption of Bonds by Clients 8,496.49 6,737.54 428,386.57 6,258.2 EEP 1,316.56 3,250.00 192,240.98 5815.1 Regional governments 38.07 177.48 79.39 -55.3 Development Bank of Ethiopia 0.00 - - City Government of Addis Ababa 7,141.87 3,310.05 15,639.54 372.5 Railway Corporation - - 31,365.50 Private Sector - Liability & Asset Management Corp. 189,061.16
3. Outstanding Bonds by Clients 444,871.73 502,578.44 567,138.25 12.8 EEP 320,885.7 2 357,941.9 0 236,542.81 41.7 Regional governments 467.59 290.11 210.72 0.04 Development Bank of Ethiopia 0.00 - - - City Government of Addis Ababa 52,132.19 53,822.14 43,692.22 7.7 Railway Corporation 71,386.23 90,524.29 Private Sector - Liability & Asset Management Corp. - - 286,692.50 50.6 Source: Commercial Bank of Ethiopia 4.5.3. Inter-bank Money Market There has been no interbank money market transaction in 2022/23.

National Bank of Ethiopia 64 | Annual Report 2022/23 V. DEVELOPMENTS IN EXTERNAL SECTOR 5.1 Overall Balance of Payments The overall balance of payments registered USD 752 million in deficit in the 2022/23 compared to USD 2.1 billion deficit a year earlier. This was attributed to lower current account deficit and higher capital account surplus. The current account deficit narrowed due to decline in merchandise trade deficit and a rise in net surplus of services trade despite decline in net official transfers and net private transfers. As a result, the ratio of current account deficit (including official transfers) to GDP stood at 2.8 percent during the review fiscal year. On the other hand, capital account surplus increased by 28.7 mainly due to rise in net surplus of official long term capital (10.6 percent), FDI (3.6 percent) and significant decline in net deficit of other public sector long term capital from USD 1 billion to USD 385.1 million (Table 5.1). Table 5.1: Balance of Payments1

(In Millions of USD)

National Bank of Ethiopia 65 | A n n u a l R e p o r t 2 0 2 2 / 2 3 S/N Particulars 2020/21 2021/22R 2022/23P Percentage Change A B C B/A C/B 1 Exports, f.o.b. 3,596.6 4,101.5 3,618.5 14.0 -11.8 Coffee 909.4 1,430.7 1,340.2 57.3 -6.3 Other 2,687.3 2,670.8 2,278.3 -0.6 -14.7 2 Imports 14,287.9 18,128.0 17,148.5 26.9 -5.4 Fuel 1,940.8 3,460.4 3,966.5 78.3 14.6 Cereals 1,336.7 2,179.8 1,038.7 63.1 -52.3 Aircraft 130.4 140.7 164.0 7.9 16.5 Imports excl. fuel, cereals, aircraft 10,879.9 12,347.0 11,979.3 13.5 -3.0 3 Trade Balance (1-2) -10,691.3 -14,026.5 -13,530.0 31.2 -3.5 4 Services, net 13.2 639.2 985.6 4,729.9 54.2 Non-factor services, net 586.9 1,212.9 1,399.1 106.7 15.4 Exports of non-factor services 4,894.6 6,349.6 7,174.1 29.7 13.0 Imports of non-factor services 4,307.7 5,136.8 5,775.0 19.2 12.4 Income, net -573.6 -573.7 -413.4 0.0 -27.9 O/w Gross official int. payment 581.3 579.5 469.3 -0.3 -19.0 Dividend, net 5 Private transfers, net 6,118.4 7,106.0 6,797.6 16.1 -4.3 o/w: Private Individuals 4,931.3 5,251.5 4647.4 6.5 -11.5 6 Current account balance excluding off. Transfers (3+4+5) -4559.6 -6,281.3 -5,746.8 37.8 -8.5 7 Official transfers, net 1,368.9 1,136.3 1,093.3 -17.0 -3.8 8 Current account balance including official transfers(6+7) -3,190.7 -5,145.1 -4,653.5 61.3 -9.6 9 Capital account 3,785.8 2,723.7 3,504.9 -28.1 28.7 Off. Long-term Cap., net 898.2 450.8 498.8 -49.8 10.6 Disbursements 1,022.4 793.5 927.3 -22.4 16.9 Amortization 124.3 342.7 428.5 175.8 25.0 Other pub. long-term cap. -885.9 -1,005.9 -385.1 13.5 -61.7 Private sector, long term 153.4 86.2 101.0 -43.8 17.2 Foreign Direct Investment(net) 3,955.4 3,307.9 3,428.0 -16.4 3.6 Short-term Capital -335.3 -115.3 -137.7 -65.6 19.4 10 Errors and Omissions [11-(9+8)] -296.4 271.6 396.5 11 Overall balance (-13) 298.7 -2,149.8 -752.0 12 Financing (13+16) -298.7 2,149.8 752.0 13 Reserves [ Increase(-), Decrease (+)] (14+15) -298.7 2149.8 752.0 14 Central Bank (NFA) 386.4 1,601.8 887.5 Asset 244.0 1370.8 469.2 Liabilities 142.4 231.0 418.2 15 Commercial banks (NFA) -685.1 548.0 -135.4 16 Debt Relief Principal Interest Source: NBE Staff Compilation P 2022/23 data are Preliminary R Some items are revised

National Bank of Ethiopia 66 | A n n u a l R e p o r t 2 0 2 2 / 2 3 Table 5.2: Components of Current Account as Percentage of GDP Particulars 2020/21 2021/22 2022/23* Percentage Change A B C B/A C/B Trade Balance -9.6 -11.1 -8.3 15.1 -25.3 Net Services 0.0 0.5 0.6 -

19.4 Net Private Transfers

5.5

5.6

4.2 1.9 -25.9 Net Official Transfers

1.2

0.9

0.7 -27.1 -25.5 Current Account Deficit (excluding official transfers) -4.1 -5.0 -3.5 20.9 -29.4 Current Account Deficit (including official transfers) -2.9 -4.1 -2.8 41.5 -30.2 Source: NBE Staff Compilation GDP is an estimate Source: NBE Staff Computations (15,000.0) (10,000.0) (5,000.0)

5,000.0 10,000.0 In Million of USD Fig.V.1: Trends in Components of Current Account Merchandise Trade Balance Net Services Net Private Transfers Net Official Transfers

National Bank of Ethiopia 67 | A n n u a l R e p o r t 2 0 2 2 / 2 3 5.2. Developments in Merchandise Trade 5.2.1 Balance of Trade Merchandise trade deficit narrowed to USD 13.5 billion from USD 14.0 billion a year earlier as the fall in merchandise import bills outweighed the decline in export receipts. Hence, merchandise trade deficit as a ratio of GDP stood at 8.3 percent. 5.2.2 Merchandise Export Total merchandise export earnings amounted to USD 3.6 billion, showing a 11.8 percent annual decline due to lower receipts from coffee, oilseeds, gold, chat, textile & textile products, leather & leather products, meat & meat products and live-animals. Meanwhile, export receipts from flowers, pulses, fruit & vegetables, electricity and others tended to improve. Export earnings from coffee fell by 6.3 percent due to 20.3 percent decrease in export volume despite 17.5 percent rise in international price. Yet, the share of coffee in total merchandise export earnings went up to 37.0 percent from 34.9 percent a year ago. Likewise, export revenue from oilseeds declined by 2.9 percent as export volume fell by 12.7 percent in spite of 11.2 percent increase in international price. Nevertheless, the share of oilseeds in total export earnings marginally increased to 7.1 percent from 6.5 percent a year earlier. Export earnings from gold sharply dropped by 63.9 percent due to the 60.1 percent slowdown in volume and 9.6 percent in international price. Thus, the share of gold in total merchandise export earnings sank to 5.4 percent from 13.2 percent a year ago. Export earnings from chat fell by 36.8 percent due to 44.4 percent decrease in export volume despite 13.7 percent rise in price. Consequently, the share of chat in total merchandise export stood at to 6.8 percent compared with 9.5 percent a year earlier. Similarly, export earnings from leather & leather products declined by 25.5 percent, owing to 24.3 percent drop in export volume and 1.6 percent in

National Bank of Ethiopia 68 | A n n u a l R e p o r t 2 0 2 2 / 2 3 international price. As a result, their share in total merchandise export earnings slightly decreased to 0.7 percent from 0.8 percent. Similarly, export receipts from meat & meat products went down 25.5 percent over the same period last year, owing to 39.4 percent decrease in export volume whereas international prices rose by 22.9 percent. Hence, the share of meat & meat products in total merchandise export earnings slightly fell to 2.3 percent from 2.7 percent. Receipts from textiles & textile products were declined by 15.3 percent due to lower export volume (10.9 percent) and international price (4.9 percent). As a result, the share of textiles & textile products in total merchandise export earnings was 4.1 percent compared with 4.3 percent a year ago. Export earnings from live-animals decreased by 40.1 percent on account of 54.4 percent drop in export volume despite 31.3 percent increase in international price. Thus, the share of live-animals in total merchandise export earnings stood at 0.5 percent. Proceeds from pulses export increased (48.2 percent) and reached USD 324.5 million due to higher export volume (85.3 percent) despite 20 percent slowdown in price. Hence, the share of pulses in total merchandise export increased to 9.0 percent from 5.3 percent a year ago. Similarly, flower export earnings went up by 4.8 percent year-on-year owing to a 6 percent rise in international price although export volume declined by 1.1 percent. Therefore, the share of flower in total merchandise export earnings improved to 15.7 percent from 13.2 percent in the same period last year. Revenue from export of fruits & vegetables increased by 5.3 percent due to a 32.3 percent rise in international price despite the 20.4 percent drop in export volume. As a result, the share of fruit & vegetables in total merchandise export receipts stood at 2.6 percent. Likewise, export earnings from electricity increased 3.2 percent and amounted to USD 96 million, as in export volume rose 5.1 percent while international price decreased by 1.8 percent. Hence, the share of electricity in

National Bank of Ethiopia 69 | A n n u a l R e p o r t 2 0 2 2 / 2 3 total merchandise export earnings increased to 2.7 percent from 2.3 percent a year ago. Similarly, earnings from other export items increased by 24.9 percent and reached USD 222 million. Table 5.3: Values of Major Export Items (In millions of USD) Particulars 2020/21 2021/22 2022/23 Percentage Change A %share B %share C %share B/A C/B Coffee 909.4 25.3 1,430.7 34.9 1,340.2 37.0 57.3 (6.3) Oilseeds 335.5 9.3 265.7 6.5 258.0 7.1 (20.8) (2.9) Leather and Leather Products 36.5 1.0 33.2 0.8 24.7 0.7 (9.1) (25.5) Pulses 233.8 6.5 218.9 5.3 324.5 9.0 (6.4) 48.2 Meat & Meat Products 75.3 2.1 109.6 2.7 81.7 2.3 45.5 (25.5) Fruits & Vegetables 69.3 1.9 87.8 2.1 92.5 2.6 26.8 5.3 Textile & Textile Prod. 147.1 4.1 175.6 4.3 148.7 4.1 19.4 (15.3) Live Animals 44.9 1.2 29.2 0.7 17.5 0.5 (35.1) (40.1) Chat 402.5 11.2 391.6 9.5 247.5 6.8 (2.7) (36.8) Gold 651.6 18.1 546.4 13.3 197.0 5.4 (16.1) (63.9) Flower 470.6 13.1 541.6 13.2 567.8 15.7 15.1 4.8 Electricity 90.5 2.5 93.5 2.3 96.0 2.7 3.3 3.2 Others 129.5 3.6 177.7 4.3 222.0 6.1 37.2 24.9 Total Export 3,596.6 100.0 4,101.5 100.0 3,618.5 100.0 14.0 (11.8) Source: Ethiopian Customs Commission and Ethiopian Electric Power

National Bank of Ethiopia 70 | A n n u a l R e p o r t 2 0 2 2 / 2 3 Source: NBE Staff Computation Source: NBE Staff Computation 0 200 400 600 800 1,000 1,200 1,400 1,600 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 (Millions USD) Fig.V.2: Foreign Exchange Earnings from Selected Export Items Coffee Oil Seeds Leather & Leather Products Pulses Flower Gold Chat Coffee 37.0% Oilseeds 7.1% Pulses 9.0% Live Animals 0.5% Chat 6.8% Gold 5.4% Flower 15.7% Leather & Leather Products 0.7% Others 17.7% Fig.V.3: Export Share of Selected Commodities (2022/23)

National Bank of Ethiopia 71 | A n n u a l R e p o r t 2 0 2 2 / 2 3 Table 5.4: Volume of Major Exports (In millions of kg unless stated otherwise) Particulars 2020/21 2021/22 2022/23 Percentage Change A B C B/A C/B Coffee 248.7 303.2 241.7 22.0 (20.3) Oilseeds 245.5 172.1 150.3 (29.9) (12.7) Leather and Leather Products 2.3 2.2 1.7 (2.2) (24.3) Pulses 280.6 213.9 396.2 (23.8) 85.3 Meat & Meat Products 14.6 19.0 11.5 29.9 (39.4) Fruits & Vegetables 221.7 222.7 177.2 0.4 (20.4) Textile & Textile Prod. 24.0 35.2 31.4 46.5 (10.9) Live Animals 26.3 17.3 7.9 (34.3) (54.4) Chat 71.2 56.3 31.3 (20.9) (44.4) Gold(In mn. of grams) 9.2 8.7 3.5 (5.5) (60.1) Flower 101.6 114.3 113.0 12.5 (1.1) Electricity(In mn of kwh) 1,637.2 1,665.2 1,750.0 1.7 5.1 Source: Ethiopian Customs Commission and Ethiopian Electric Power Source: NBE Staff Computation 0 50 100 150 200 250 300 350 400 450 500 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 (Million Kg.) Fig.V.4: Export Volume of Selected Commodities Coffee Oil Seeds Leather & Leather Products Pulses Flower Gold Chat

National Bank of Ethiopia 72 | A n n u a l R e p o r t 2 0 2 2 / 2 3 Table 5.5: Unit Value of Major Export Items (In USD/kg unless stated otherwise) Particulars 2020/21 2021/22 2022/23 Percentage Change A B C B/A C/B Coffee 3.7 4.7 5.5 29.0 17.5 Oilseeds 1.4 1.5 1.7 12.9 11.2 Leather and Leather Products 15.9 14.8 14.6 (7.0) (1.6) Pulses 0.8 1.0 0.8 22.8 (20.0) Meat & Meat Products 5.1 5.8 7.1 12.0 22.9 Fruits & Vegetables 0.3 0.4 0.5 26.3 32.3 Textile & Textile Prod. 6.1 5.0 4.7 (18.5) (4.9) Live Animals 1.7 1.7 2.2 (1.3) 31.3 Chat 5.7 7.0 7.9 23.0 13.7 Gold (USD/grams) 70.9 63.0 56.9 (11.2) (9.6) Flower 4.6 4.7 5.0 2.3 6.0 Electricity (USD/kwh) 0.1 1.5 (1.8) Source: Ethiopian Customs Commission and Ethiopian Electric Power Source: NBE Staff Computation 0 10 20 30 40 50 60 70 80 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 (USD/Kg,, Gold (USD/Gm)) Fig.V. 5: Unit Value of Selected Export Commodities Coffee Oil Seeds Leather & Leather Products Pulses Flower Gold Chat

National Bank of Ethiopia 73 | A n n u a l R e p o r t 2 0 2 2 / 2 3 5.2.3. Import of Goods Total merchandise import bill reached USD 17.1 billion, depicting a 5.4 percent annual decline due to lower import bill for raw materials, semi-finished goods, consumer goods and miscellaneous goods, while payments for capital goods and fuel increased during the review period. Therefore, import-to-GDP ratio decreased to 10.5 percent from 14.3 percent a year ago. Consumer goods import amounted to USD 5.9 billion, which was 22.5 percent lower than last year due to the 34.5 percent decline in imports of non-durable goods in despite durable goods in 77.5 percent. As a result, the share of consumer goods in total merchandise import bills fell to 34.4 percent from 42.0 percent last year. Likewise, semi-finished goods import reached USD 3.3 billion, depicting a 13.1 percent annual drop as import of fertilizer slowed down by 33.5 percent. Hence, the share of semi-finished goods in total merchandise imports stood at 19.0 percent. Similarly, import bills of raw materials declined by 5.8 percent relative to the preceding year and accounted for 0.6 percent of the total merchandise import bill during the review period. In contrast, capital goods import grew 25.0 percent as the imports of transport, industrial and agricultural capital goods surged by 122.6 percent, 12.1 percent and 68.2 percent, respectively. Thus, the share of capital goods in total merchandise imports increased to 22.1 percent from 16.8 percent in the preceding year. Likewise, fuel imports rose by 14.6 percent and reached USD 4.0 billion primarily due to higher (8 percent) international prices despite a 6.1 percent decrease in fuel import volume. Hence, the share of fuel in total merchandise imports increased to 23.1 percent from 19.1 percent a year before (Table 5.6).

National Bank of Ethiopia 74 | A n n u a l R e p o r t 2 0 2 2 / 2 3 Table 5.6: Value of Imports by End Use (In Millions of USD) Source: Ethiopian Customs Commission and Ethiopian Petroleum Enterprise Categories 2020/21 2021/22 2022/23 Percentage change A % share B % share C % share B/A C/B Raw Materials 138.9 1.0 114.5 0.6 107.9 0.6 -17.6 -5.8 Semi-finished Goods 2,681.0 18.8 3,748.2 20.7 3,258.2 19.0 39.8 -13.1 Fertilizers 688.6 4.8 1,385.0 7.6 921.0 5.4 101.1 -33.5 Fuel 1,940.8 13.6 3,460.4 19.1 3,966.5 23.1 78.3 14.6 Petroleum Products 1,839.3 12.9 3,362.3 18.5 3,829.4 22.3 82.8 13.9 Others 101.5 0.7 98.1 0.5 137.1 0.8 -3.4 39.8 Capital Goods 3,879.7 27.2 3,038.1 16.8 3,798.0 22.1 -21.7 25.0 Transport 349.9 2.4 327.0 1.8 728.0 4.2 -6.5 122.6 Agricultural 89.5 0.6 55.6 0.3 93.4 0.5 -37.9 68.2 Industrial 3,440.3 24.1 2,655.5 14.6 2,976.6 17.4 -22.8 12.1 Consumer Goods 5,472.4 38.3 7,618.3 42.0 5,904.6 34.4 39.2 -22.5 Durables 803.1 5.6 815.5 4.5 1,447.3 8.4 1.5 77.5 Non-durables 4,669.3 32.7 6,802.8 37.5 4,457.3 26.0 45.7 -34.5 Miscellaneous 175.0 1.2 148.5 0.8 113.3 0.7 -15.2 -23.7 Total Import 14,287.9 100.0 18,128.0 100.0 17,148.5 100.0 26.9 -5.4

National Bank of Ethiopia 75 | A n n u a l R e p o r t 2 0 2 2 / 2 3 5.2.4. Direction of Trade 5.2.4.1. Export of Goods The major destinations7 for Ethiopian merchandise export were Asia, Europe, Africa and America. Asia accounted for 38.8 percent of Ethiopia’s total exports. Saudi Arabia was the biggest market for Ethiopia’s exports having a 23.1 percent share in total export earnings from Asia, followed by United Arab Emirates (14.2 percent), Israel (8.0 percent), Japan (7.9 percent), South Korea (7.8 percent), India (7.6 percent), China (7.6 percent), Singapore (5.0 percent), Taiwan (2.2 percent) and Indonesia (1.4 percent). These countries in total had a 84.8 percent share in Ethiopia’s total exports to Asia. About 33.9 percent of Ethiopia’s total export revenue originated from Europe with the Netherlands taking a 32.5 percent, followed by Germany (16.6 percent), Switzerland (16.2 percent), Belgium (8.7 percent) and United Kingdom (5.8 percent), Italy (5.7 percent),

7 Wheat & Hilina’s enriched foods sells to humanitarian organization operating in Ethiopia is included to export receipts and categorized under unspecified during the FY 2022/23. Turkey (3.2 percent), France (2.9 percent) and Russia (1.4 percent). These countries jointly accounted for 92.9 percent of Ethiopia’s total exports to Europe. Close to 15.1 percent of Ethiopia’s export earnings were from Africa, mainly Somalia (31.3 percent), Djibouti (27.7 percent), Sudan (13.8 percent), Kenya (11.3 percent) and South Africa (3.0 percent) which altogether accounted for 87.1 percent of the total exports to Africa. America accounted for 9.7 percent of Ethiopia’s total export earnings, of which 90.1 percent was from exports to the United States and 8.6 percent to Canada. These countries constituted 98.7 percent of Ethiopia’s total exports to America.

National Bank of Ethiopia 76 | A n n u a l R e p o r t 2 0 2 2 / 2 3 Source: NBE Staff Compilation 5.2.4.2 Import of Goods Asia accounted for 63.0 percent of the total imports of Ethiopia in 2022/23. The major imports from Asia included China (33.3 percent), India (17.9 percent), Saudi Arabia (13.5 percent), U.A.E. (13.3 percent), Kuwait (6.1 percent), Malaysia (5.1 percent), Indonesia (2.8 percent), Thailand (1.2 percent), South Korea (1.2 percent) and Japan (0.8 percent). Their combined share stood at 95.3 percent. The share of Ethiopia’s total merchandise imports from Africa was 16.0 percent. The major countries of origin were Egypt (33.7 percent), Morocco (30.1 percent), Djibouti (16.9 percent), South Africa (9.6 percent) and Kenya (4.1 percent), which in total constituted 94.4 percent of the total imports from the continent. Ethiopia’s import from Europe had a 14.0 percent share, with the major trading countries being Turkey (31.5 percent), Ukraine (9.6 percent), Italy (8.6 percent), United Kingdom (8.3 percent), France (7.0 percent), Germany (6.7 percent), Netherlands (4.3 percent), Belgium (4.0 percent), Switzerland (2.7 percent), Spain (2.4 percent) and Ireland (2.2 percent). These countries jointly accounted for 87.4 percent of Ethiopia’s total imports from Europe. Imports from America constituted 7.0 percent of the total import, of which the share of the United States was 88.0 percent, 15.1% 33.9% 9.7% 38.8% 0.9%1.6% Fig.V.6: Export by Destination Africa Europe America Asia Oceania Unspecified

National Bank of Ethiopia 77 | A n n u a l R e p o r t 2 0 2 2 / 2 3 followed by Canada (3.4 percent) and Brazil (2.1 percent). Source: NBE Staff Compilation 5.3 Services and Transfers 5.3.1 Services In 2022/23, net services account recorded USD 985.6 million in surplus compared with USD 639.2 million surplus a year ago. This was attributed to 22.8 percent improvement in surplus of net transport services, net travel (13.3 percent) and government services (12.1 percent) coupled with contraction in deficits of net investment payment (27.9 percent). However, the deficit of net other services increased by 27.6 percent. 16.0% 14.0% 7.0% 63.0% 0.1% Fig.V.7: Import by Origin Africa Europe America Asia Oceania

National Bank of Ethiopia 78 | A n n u a l R e p o r t 2 0 2 2 / 2 3 Table 5.7: Services Accounts (In Millions of USD) No Particulars 2020/21 2021/22 2022/23 Percentage Change A B C D=B/A E=C/B 1 Investment Income (2+5) -573.6 -573.7 -413.4 0.0 -27.9 2 Interest, net (3-4) -573.5 -573.0 -411.8 -0.1 -28.1 3 Credit 7.8 6.6 57.5 -15.0 771.0 4 Debit 581.3 579.5 469.3 -0.3 -19.0 5 Dividend, net -0.1 -0.7 -1.6 6 NON-FACTOR SERVICES, net (7-8) 586.9 1,212.9 1,399.1 106.7 15.4 7 Exports of non-factor services 4,894.6 6,349.6 7,174.1 29.7 13.0 Travel 1,124.8 1,028.4 1,140.5 -8.6 10.9 Transport 1 3,233.9 4,751.2 5,479.2 46.9 15.3 Gov't 2 184.9 192.4 208.9 4.1 8.6 Other 3 351.0 377.7 345.4 7.6 -8.5 8 Imports of non-factor services 4,307.7 5,136.8 5,775.0 19.2 12.4 Travel 437.9 563.5 614.0 28.7 9.0 Transport 1 2,497.2 3,648.1 4,124.9 46.1 13.1 Gov't 2 23.0 6.7 0.8 -71.0 -88.0 Other 3 1,349.6 918.5 1,035.3 -31.9 12.7 9 Net Services (10+11+12+13+14) 13.2 639.2 985.6 4,729.9

54.2 10 Travel 686.9 464.9 526.5 -32.3 13.3 11 Transport 736.7 1,103.1 1,354.3 49.7 22.8 12 Gov't 161.9 185.7 208.1 14.7 12.1 13 Other -998.6 -540.8 -689.9 -45.8 27.6 14 Investment Income -573.6 -573.7 -413.4 0.0 -27.9 Source: MoF, Transport and Telecommunication Companies, NBE- FEMEMD and Staff Compilation. 1/ Includes Ethiopian Airlines receipts and payments 2/ Includes transactions with Embassies and international organizations such as UN-ECA, AU, EU, IMF and WB 3/ Includes communication, construction, insurance, financial, information, other business 5.3.2. Unrequited Transfers Net transfers declined by 4.3 percent and reached USD 7.9 billion in 2022/23 due to the fall in net private transfers (4.3 percent) and net official transfers (3.8 percent). Receipts from private individual transfers, which comprised 83.8 percent of total transfers, amounted to USD 6.8 billion (declined by 3.9 percent annually). Likewise, net official transfers showed a 3.8 percent slowdown.

National Bank of Ethiopia 79 | A n n u a l R e p o r t 2 0 2 2 / 2 3 Table 5.8: Unrequited Transfers (In Millions of USD) S/N Particulars 2020/21 2021/22 2022/23 Percentage Change A % share B % share C % share B/A C/B 1 Private Transfers, net

6,118.4

81.7

7,106.0

86.2

6,797.6

86.1 16.1 -4.3 1.1 Receipts

6,140.0

80.3

7,119.8

83.6

6,839.6

83.8 16.0 -3.9 NGO's

1,208.6

15.8

1,868.3

21.9

2,192.2

26.9 54.6 17.3 Cash

715.6

9.4

698.6

8.2

780.3

9.6 -2.4 11.7 Food

493.1

6.4

1,169.7

13.7

1,411.9

17.3 137.2 20.7 Other

Private Individuals

4,931.3

64.5

5,251.5

61.7

4,647.4

57.0 6.5 -11.5 1.2 Payments

21.5

13.3

13.8

5.1

42.0

15.8 -36.1 204.9 2 Official Transfers, net

1,368.9

18.3

1,136.3

13.8

1,093.3

13.9 -17.0 -3.8 2.1 Receipts

1,509.6

19.7

1,394.5

16.4

1,317.9

16.2 -7.6 -5.5 Cash

1,509.4

19.7

1,331.7

15.6

1,317.9

16.2 -11.8 -1.0 Food

Other

0.1

62.8

2.2 Payments

140.7

86.7

258.2

94.9

224.6

84.2 83.5 -13.0 Total Receipts

7,649.6

100.0

8,514.3

100.0

8,157.5

100.0 11.3 -4.2 Total Payments 162.3 100.0 272.0 100.0 266.5 100.0 67.6 -2.0 3 Net Transfers

7,487.3

100.0

8,242.3

100.0

7,890.9

100.0 10.1 -4.3 Source: National Disaster Risk Management Commission (NDRMC), MoF and NBE 5.4. Current Account

National Bank of Ethiopia 80 | A n n u a l R e p o r t 2 0 2 2 / 2 3 The deficit in the current account balance, including official transfers, narrowed to USD 4.7 billion in 2022/23 from USD 5.1 billion last year due to lower merchandise trade deficit (3.5 percent) and improved net services surplus (54.2 percent). In contrast, there was a decline in net private transfer (4.3 percent) and net official transfers (3.8 percent) (Table 5.1). 5.5 Capital Account Net capital account, recorded USD 3.5 billion in surplus, which was 28.7 percent higher than that of last year on account of increased net official long term capital (10.6 percent), foreign direct investment (3.6 percent) and private long term capital (17.2 percent) yet net other public sector long term capital had a significant (61.7 percent) deficit. Short term capital outflow rose to USD 137.7 million from USD 115.3 million during the same period (Table 5.1). 5.6 Changes in Reserve Position Net foreign assets of the banking system recorded a reserve drawdown of USD 752 million. Net foreign assets of the National Bank of Ethiopia depicted a USD 887.5 million decline while net foreign asset of commercial banks recorded a USD 135.4 million build up (Table 5.1). 5.7 External Debt Ethiopia’s external debt stock reached USD 28.1 billion in 2022/23, depicting 0.5 percent annual rise mainly due to an increase in multilateral creditors (3.7 percent) and a decline in bilateral (4.1 percent) and commercial creditors (1.4 percent). Hence, the country’s external debt stock to GDP ratio stood at 17.2 percent. Commercial debt a stock reached USD 5.2 billion showing a 1.4 percent annual reduction and it accounted for 18.5 percent of the total debt stock. Of the total debt stock, 54.3 percent was owed to multilateral and the remaining 27.2 percent to bilateral creditors. The country’s external debt burden, measured by debt services to export of goods and non-factor services ratio, decreased to 16.4 percent from 20.5 percent a year earlier (Table 5.9). Table 5.9: External Public Debt (In Millions of USD)

National Bank of Ethiopia 81 | A n n u a l R e p o r t 2 0 2 2 / 2 3 Particulars 2020/21 2021/22 2022/23 Percentage Change A B C D=B/A E=C/B Annual Debt

3,327.9

1,407.3

1,087.2 -57.7 -22.7 Debt Stock

29,521.8

27,957.4

28,099.5 -5.3 0.5 Multilateral

14,983.1

14,707.6

15,250.8 -1.8 3.7 Bilateral

8,509.7

7,982.4

7,657.1 -6.2 -4.1 Commercial

6,029.0

5,267.4

5,191.6 -12.6 -1.4 Debt Services

1,910.7

2,141.3

1,774.3 12.1 -17.1 Principal repayments

1,413.6

1,644.5

1,354.8 16.3 -17.6 Interest payments

497.1

496.8

419.4 -0.1 -15.6 Debt Stock to GDP Ratio (in %) 26.5 22.1 17.2 -16.9 -22.2 Debt stock to export of goods and non￾factor services

3.5

2.7

2.6 -23.1 -2.7 Receipt from Goods & Non-factor Services

8,491.2

10,451.1

10,792.6 23.1 3.3 Debt service ratio (In percent )1/ 22.5 20.5 16.4 -8.9 -19.8 Arrears Principal Interest Relief Principal Interest Source: MoF and NBE 1/ Ratio of debt service to receipts from export of goods and non-factor services 5.8. Developments in Foreign Exchange Markets

National Bank of Ethiopia 82 | A n n u a l R e p o r t 2 0 2 2 / 2 3 5.8.1. Developments in Nominal Exchange Rate In 2022/23, weighted average exchange rate of Birr in the inter-bank foreign exchange market reached Birr 53.2830/USD, depicting a 9.7 percent annual depreciation (Table 5.10). In the retail foreign exchange market, the average buying and selling rates of the Birr in forex bureaus depreciated by 9.9 and 10.1 percent, respectively, with a spread margin of 2.1 percent. Table 5.10: Inter-Bank Exchange Rates of Birr per USD Period Average Weighted Rate Amount Traded in millions of USD Number of Trades Total o/w Among CBs Total o/w Among CBs 2020/21 39.0163 12.4 0.0 248.0 0.0 Qtr. I 35.7771 3.1 0.0 62.0 0.0 Qtr. II 37.8663 3.3 0.0 65.0 0.0 Qtr. III 39.8933 3.1 0.0 61.0 0.0 Qtr. IV 42.5284 3.0 0.0 60.0 0.0 2021/22 48.5674 12.6 0.0 252.0 0.0 Qtr. I 44.9109 3.2 0.0 64.0 0.0 Qtr. II 47.6026 3.3 0.0 65.0 0.0 Qtr. III 50.2619 3.1 0.0 61.0 0.0 Qtr. IV 51.4941 3.1 0.0 62.0 0.0 2022/23 53.2830 12.7 0.0 253.0 0.0 Qtr. I 52.3035 3.3 0.0 65.0 0.0 Qtr. II 52.9654 3.3 0.0 65.0 0.0 Qtr. III 53.6179 3.2 0.0 63.0 0.0 Qtr. IV 54.2454 3.0 0.0 60.0 0.0 Source: NBE, Foreign Exchange Monitoring & Reserve Management Directorate and Staff Compilation Table 5.11: End Period Mid-Market Rates (USD per Unit of Foreign Currency)

National Bank of Ethiopia 83 | A n n u a l R e p o r t 2 0 2 2 / 2 3 Currency 2020/21 2021/22 2022/23 Percentage Change A B C B/A C/B Pound Sterling 1.3834 1.2161 1.2659 (12.1) 4.1 Swedish Kroner 0.1173 0.0984 0.0926 (16.1) (5.9) Djibouti Franc 0.0056 0.0 (0.2) Swiss Franc 1.0855 1.0522 1.1176 (3.1) 6.2 Saudi Riyal 0.2666 0.2665 0.2666 (0.0) 0.0 UAE Dirham 0.2722 (0.0) 0.0 Canadian Dollar 0.8080 0.7775 0.7542 (3.8) (3.0) Japanese Yen 0.0090 0.0073 0.0069 (19.0) (5.4) Euro 1.1902 1.0527 1.0936 (11.6) 3.9 SDR 1.4286 1.3363 1.3363 (6.5) 0.0 Source: Staff Compilation Measured at the end-period mid-market exchange rate, the US dollar appreciated against the Swedish Kroner (5.9 percent), Japanese Yen (5.4 percent), Canadian Dollar (3.0 percent) and Djibouti Franc (0.2 percent), whereas it depreciated against Swiss Franc (6.2 percent), Pound Sterling (4.1 percent) and Euro (3.9 percent).Yet , USD remained stable vis-à￾vis the SDR, Saudi Riyal and UAE Dirhams (Table 5.11). Table 5.12: End Period Mid-Market Rates (Birr per Unit of Foreign Currency) Currency 2020/21 2021/22 2022/23 Percentage Change A B C B/A C/B USD 43.9095 52.2538 54.8673 19.0 5.0 Pound 60.7444 63.5459 69.4565 4.6 9.3 Swedish Kroner 5.1500 5.1426 5.0805 (0.1) (1.2) Djibouti Franc 0.2464 0.2932 0.3104 19.0 5.8 Swiss Franc 47.6655 54.9809 61.3180 15.3 11.5 Saudi Riyal 11.7077 13.9258 14.6290 18.9 5.0 UAE Dirhams 11.9531 14.2245 14.9364 19.0 5.0 Canadian Dollar 35.4767 40.6265 41.3812 14.5 1.9 Japanese Yen 0.3971 0.3829 0.3804 (3.6) (0.7) Euro 52.2610 55.0076 60.0029 5.3 9.1 SDR 62.7291 69.8267 73.3192 11.3 5.0 Source: Staff Compilation

National Bank of Ethiopia 84 | A n n u a l R e p o r t 2 0 2 2 / 2 3 Likewise, the Birr depreciated against almost all major international currencies, including Swiss Franc (11.5%), Pound Sterling (9.3%), Euro (9.1%), Djibouti Franc (5.8 percent), Saudi Riyal (5.0 percent), SDR (5.0 percent), USD (5.0 percent), UAE Dirham (5.0 percent) and Canadian Dollar (1.9 percent). In contrast, it appreciated against Swedish Kroner (1.2 percent) and Japanese Yen (0.7 percent) (Table 5.12). 5.8.2. Movements in Real Effective Exchange Rate The real effective exchange rate (REER) of the Birr has been appreciating since 2012/13 due to higher domestic inflation and strengthening of US dollar. The Birr exchange rate, however, tended to deprecate in real terms during 2017/18, 2019/20 and 2021/22. Specifically, in 2022/23, the Birr showed a marginal appreciation in (2.6 percent) due to higher domestic inflation and appreciation of the Birr vis-à-vis its major trading partner currencies. Likewise, the nominal effective exchange rate (NEER) of the Birr appreciated by 20.4 percent compared with 3.0 percent depreciation a year earlier (Table 5.13). Table 5.13: Trends in Real and Nominal Effective Exchange Rates Fiscal Year REERI NEERI Percentage Change REERI NEERI 2012/13 140.2 42.0 0.6 -2.7 2013/14 140.8 40.7 0.4 -3.3 2014/15 157.6 42.3 11.9 4.0 2015/16 159.3 41.2 1.1 -2.7 2016/17 171.2 41.8 7.5 1.6 2017/18 164.0 37.2 -4.2 -10.9 2018/19 198.6 42.4 21.1 13.9 2019/20 179.0 38.6 -9.9 -8.9 2020/21 179.5 69.6 0.3 80.1 2021/22 114.1 67.5 -36.5 -3.0 2022/23 117.0 81.3 2.6 20.4 Source: NBE Staff Compilation An increase in REERI and NEERI indicates appreciation and vice versa. Where: REERI = Real Effective Exchange Rate Index NEERI = Nominal Effective Exchange Rate Index

National Bank of Ethiopia 85 | A n n u a l R e p o r t 2 0 2 2 / 2 3 5.8.3. Foreign Exchange Transactions USD 12.7 million was traded in the inter￾bank foreign exchange market in 2022/23 which was 0.4 percent higher than that of last year. All the foreign exchange traded in the inter-bank foreign exchange market was supplied by the National Bank of Ethiopia (Table 5.10). At the same time, forex bureaus of commercial banks purchased USD 184.0 million from customers which is 9.7 percent lower than a year earlier. However, their foreign exchange sales increased 77.3 percent and reached USD 222.5 million (Table 5.14).

National Bank of Ethiopia 86 | Annual Report 2022/23 Table 5.14: Foreign Exchange Transactions by Forex Bureaus of Commercial Banks In Millions of USD Name of Forex Bureau 2020/21 2021/22 2022/23 Percentage Change A B C D E F G=E/C H=F/D Purchases Sales Purchases Sales Purchases Sales Purchases Sales Commercial Bank of Ethiopia 127.2 22.7 136.3 39.0 142.7 127.3 4.7 226.3 Bank of Abyssinia 2.5 9.1 4.1 17.1 1.1 17.8 -72.8 3.8 Dashen Bank 15.0 12.7 14.2 14.8 13.9 17.3 -2.5 17.4 Awash International Bank 3.5 12.9 2.6 15.9 2.2 25.3 -14.7 59.1 Construction & Business Bank 0.0 - - Wegagen Bank 4.4 2.7 6.7 4.0 1.3 4.9 -80.6 22.1 United Bank 18.9 5.1 4.6 8.0 1.8 3.3 -61.3 -58.5 Development Bank 0.0 0.1 0.0 0.1 0.0 0.1 314.7 -19.1 Nib International Bank 3.0 2.8 11.4 3.1 2.2 3.7 -80.4 19.0 Lion International Bank 4.1 0.3 0.4 0.3 0.7 0.4 68.3 15.4 Oromia International Bank 11.3 2.9 9.9 3.8 11.0 5.4 11.8 42.2 Zemen Bank 0.3 11.7 0.4 4.5 0.3 3.8 -22.7 -16.7 Cooperative Bank of Oromia 0.7 3.8 0.8 5.7 0.5 4.0 -36.9 -30.9 Buna International Bank 1.3 0.5 1.5 1.6 0.4 1.1 -75.5 -31.7 Birhan International Bank 1.3 2.2 2.7 3.1 0.5 3.2 -83.1 4.1 Abay Bank 0.8 0.5 2.1 1.0 0.8 0.9 -63.4 -9.0 Addis International Bank 3.5 0.8 3.6 1.3 2.1 1.2 -41.0 -11.0 Debub Global Bank 3.9 0.8 0.8 0.7 1.1 0.8 33.7 10.4 Enat Bank 0.3 0.8 1.7 1.1 1.0 0.9 -40.4 -18.0 Zamzam Bank - - 0.0 0.3 0.0 0.5 -88.0 50.4 Gohe Betoch Bank - - 0.0 0.1 673.8 - Hijra Bank - - 0.0 0.0 0.2 0.1 709.9 - Amhara Bank - - - - 0.0 0.4 - - Tsehay Bank - - - - 0.0 0.1 - - Siinqee Bank - - - - 0.0 0.0 - - Geda Bank - - - - 0.0 0.0 - - Ahadu Bank - - - - 0.0 0.0 - - Tseday Bank - - - - 0.0 0.0 - - Total 202.0 92.4 203.8 125.5 184.0 222.5 -9.7 77.3 Average Exchange Rate 39.0406 39.8005 48.7250 49.6583 53.5595 54.6562 9.9 10.1 Source: Staff Compilation

National Bank of Ethiopia 87 | Annual Report 2022/23 VI. GENERAL GOVERNMENT FINANCE 6.1. General Overall fiscal performance of the general government exhibited a bigger expansion of overall fiscal deficit (including grants). The overall fiscal gap widened from Birr 212.3 billion in 2021/22 to Birr 221.1 billion in 2022/23 and its ratio to GDP was 2.5 percent which was lower than 3.4 percent in 2021/22. Total revenue (including grants) grew by 26.6 percent and its ratio to GDP was 7.9 percent (Table 6.1). General government expenditure rose by 20.5 percent (Table 6.3).Its ratio to GDP was 10.8 percent (Table 6.1). Public debt to GDP ratio was 39.4 percent and was significantly lower than last year same period (Table 6.1). Table 6.1: Measuring Fiscal Sustainability (In Percent) Fiscal Year PD/GDP IP/RR Debt/GDP PDebt/GDP R(Debt) R(GDP) Exp/GDP Rev/GDP R(OR) 2013/14 -2.6 2.6 28.6 61.0 28.4 21.1 17.5 13.8 17.8 2014/15 -2.5 2.9 31.8 56.6 31.1 16.6 18.6 15.1 27.7 2015/16 -1.9 3.1 31.3 54.7 24.6 18.2 17.4 14.7 23.6 2016/17 -3.3 3.2 34.4 57.7 28.7 17.6 18.0 14.0 11.3 2017/18 -3.0 4.3 35.7 61.2 24.3 21.0 16.1 12.3 5.1 2018/19 -2.5 4.3 35.8 57.8 22.8 23.1 15.4 11.6 15.5 2019/20 -2.5 3.8 34.9 57.2 22.1 25.4 14.2 10.5 13.8 2020/21 -2.8 5.4 34.1 56.8 25.9 29.4 13.8 10.2 25.5 2021/22 -3.4 7.1 31.4 48.5 30.3 41.8 12.7 8.8 21.5 2022/23 -2.5 8.0 27.6 39.4 24.7 41.7 10.8 7.9 26.9 Source: NBE Staff Computation Footnotes: PD = Primary Deficit IP/RR = Share of interest payments in Recurrent revenue Debt/GDP = Ratio of Domestic Debt to GDP R(Debt) = Growth rate of Domestic Debt R(GDP) = Growth rate of GDP at current market price Exp/GDP = Ratio of General Government Expenditure to GD Rev/GDP = Ratio of General Government Revenue to GDP R(OR) = Growth rate of ordinary Revenue PDebt/GDP = Ratio of public debt to GDP

National Bank of Ethiopia 88 | Annual Report 2022/23 6.2. Revenue and Grants General government revenue (including grants) went up by 26.6 percent on annual basis and reached Birr 717.5 billion in the review year (Table 6.2). General government revenue constituted 7.9 percent of GDP which was lower than 8.8 percent recorded a year ago. About 86.5 percent of the total domestic revenue was generated from taxes which increased 24.2 percent. The rise in tax revenue was attributed to improved collection of taxes from direct (22.3 percent) and indirect taxes (25.7percent). The contribution of direct and indirect taxes to tax revenue has reached 44.5 percent and 55.5 percent, respectively. Non-tax revenue was Birr 92.2 billion and which depicted a 48.1 percent annual increment mainly due to higher sales of goods & services (Table 6.2). Likewise, grants stood at Birr 32.1 billion which was 20.4 percent higher than a year ago. All in all, total revenue performance (including grants) was 95.5 percent of the total annual budget.

National Bank of Ethiopia 89 | Annual Report 2022/23

0 50000 100000 150000 200000 250000 300000 In million Birr Fiscal Year Fig.VI.1: Trend of General Government Revenue by Component Total Revenue and Grants Tax Revenue Direct tax revenue Indirect tax revenue Non-tax revenue Grants

National Bank of Ethiopia 90 | Annual Report 2022/23 Table 6.2: Summary of General Government Revenue by Component (In Millions of Birr) Particulars 2021/22 2022/23 Percentage Change Performance [A] [B] [C] Rate Pre. Act Budget Pre. Act [C/A] [C/B] Total Revenue and Grants 566,753.6 751,714.2 717,586.7 26.6 95.5 Total Revenue 1/ 540,060.5 712,790.2 685,459.1 26.9 96.2 Tax Revenue 477,770.3 614,207.3 593,232.1 24.2 96.6

1. Direct Tax Revenue 215,805.4 267,470.3 263,958.6 22.3 98.7 1.1 Income and Profit Taxes 211,451.6 258,230.6 254,984.3 20.6 98.7 Personal 82,815.4 102,025.3 108,234.1 30.7 106.1 Business 106,806.8 121,930.8 123,422.3 15.6 101.2 Others 2/ 21,829.5 34,274.4 23,327.9 6.9 68.1 1.2 Rural Land Use Fee 387.9 921.4 511.6 31.9 55.5 1.3 Urban Land Use Fee 3,965.9 8,318.3 8,462.7 113.4 101.7
2. Indirect Taxes 261,964.9 346,737.0 329,273.4 25.7 95.0 2.1 Domestic Taxes 130,654.9 174,632.1 160,720.8 23.0 92.0 2.2 Foreign Trade Taxes 131,310.0 172,104.9 168,552.6 28.4 97.9 Import 131,310.0 172,104.9 168,552.6 28.4 97.9 Export
3. Non-Tax Revenue 62,290.2 98,582.9 92,227.1 48.1 93.6 3.1 Charges and Fees 7,166.2 7,334.3 7,148.0 (0.3) 97.5 3.2 Govt. Invt. Income 3/ 13,347.2 23,436.4 16,679.0 25.0 71.2 3.3 Reimb. And Property Sales 4,325.6 2,047.3 1,477.5 (65.8) 72.2 3.4 Sales of Goods & Services 8,823.5 14,844.3 12,844.5 45.6 86.5 3.5 Others 4/ 28,627.8 50,920.6 54,078.1 88.9 106.2
4. Grants 26,693.1 38,924.0 32,127.6 20.4 82.5 Source: Ministry of Finance and Economic Development 1/ It does not include privatization proceeds 2/ Others include rental income tax, withholding income tax on imports, interest income tax, capital gains tax, agricultural income and other income 3/ Government investment income includes: residual surplus, capital charge, interest payments and state dividend. 4/Other extraordinary, miscellaneous and pension contribution

National Bank of Ethiopia 91 | Annual Report 2022/23 6.3. Expenditure Total general government expenditure reached Birr 938.7 billion which exhibited a 20.5 percent annual growth due to higher recurrent and capital expenditures (Table 6.3). Recurrent expenditure at Birr 582.8 billion showed a 12.7 percent year-on￾year increase and its share in total expenditure stood at 62.0 percent with a 98.7 percent performance against the annual budget. At the same time, capital expenditure stood at Birr 355.9 billion depicting a 35.8 percent annual growth. Its performance was 90.6 percent of annual budget. In summary, total general government expenditure performance was 95.5 percent of the annual budget plan.

National Bank of Ethiopia 92 | Annual Report 2022/23 Table 6.3: Summary of General Government Expenditure (In Millions of Birr) Particulars 2021/22 2022/23 Percentage Change Performance [A] [B] [C] Rate Pre. Act Budget Pre. Act [C/A] [C/B] Total Expenditure

779,099.0

983,116.0

938,771.6 20.5 95.5

1. Current Expenditure

517,043.4

590,289.9

582,854.6 12.7 98.7 General Services

214,473.6

201,880.4

215,850.3 0.6 106.9 Economic Services

50,711.1

60,413.7

55,863.0 10.2 92.5 Social Services

200,594.3

209,493.8

217,279.4 8.3 103.7 Interest and Charges

38,512.8

48,498.8

54,544.0 41.6 112.5 External Assistance1/ Social Safety Net Others (miscellaneous)

12,751.6

70,003.2

39,317.9 208.3 56.2 2. Capital Expenditure

262,055.7

392,826.1

355,917.0 35.8 90.6 Economic Development

155,288.3

229,935.4

216,131.9 39.2 94.0 Social Development

65,626.6

79,486.0

74,773.2 13.9 94.1 General Development

41,140.7

83,404.7

65,011.8 58.0 77.9 3. Special programs

---

Source: Ministry of Finance and Economic Development Note: 1/ Includes mapping, science and technology, public buildings, etc.

National Bank of Ethiopia 93 | Annual Report 2022/23 0 50000 100000 150000 200000 250000 300000 350000 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 Fig.VI.2: Trends in General Government Expenditure by Component Total Expenditure Current Expenditure Capital Expenditure

National Bank of Ethiopia 94 | Annual Report 2022/23

5.0 10.0 15.0 20.0 25.0 30.0 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 In Percent of GDP Fiscal Year Fig.VI.3: Trends in General Government Expenditure and Revenue (% of GDP) Expenditure/GDP Revenue/GDP

National Bank of Ethiopia 95 | Annual Report 2022/23 6.4. Deficit Financing General government budgetary operations (including grants) resulted in Birr 221.1 billion deficit about 4.2 percent higher than a year earlier. Primary deficit as percentage of GDP was 2.5 percent. The deficit was financed by net domestic and external borrowing.

National Bank of Ethiopia 96 | Annual Report 2022/23 Table 6.4: Summary of General Government Finance (In Millions of Birr) Particulars 2022 2022/23 Percentage Change performance rate [A] [B] [C] Pre. Act Budget Pre. Act [C/A] [C/B] Total Revenue and Grants 566,753.6 751,714.2 717,586.7 26.6 95.5 Revenue 540,060.5 712,790.2 685,459.1 26.9 96.2 Grants 26,693.1 38,924.0 32,127.6 20.4 82.5 Total Expenditure 779,099.0 983,116.0 938,771.6 20.5 95.5 Current Expenditure 517,043.4 590,289.9 582,854.6 12.7 98.7 Capital Expenditure 262,055.7 392,826.1 355,917.0 35.8 90.6 Special Programs Overall Surplus/ Deficit (Including Grants) (212,345.4) (231,401.8) (221,184.9) 4.2 95.6 (Excluding Grants) (239,038.5) (270,325.8) (253,312.4) 6.0 93.7 Total Financing 212,345.4 231,401.8 221,184.9 4.2 95.6 Net External Borrowings 3,295.5 6,875.9 28,641.6 769.1 416.5 Gross Borrowing 20,224.4 42,785.5 51,842.7 156.3 121.2 o/w Special Programs Amortization Paid 16,928.9 35,909.5 23,201.1 37.1 64.6 HIPC relief & MDRI Net Domestic Borrowings 262,431.0 224,525.9 214,243.1 (18.4) 95.4 Banking System 206,613.7 141,728.9 (31.4) Non-Banking Systems 55,817.3 72,514.2 29.9 Privatization Receipts - - Others and Residuals (53,381.1) (21,699.9) (59.3) Source: Ministry of Finance

National Bank of Ethiopia 97 | Annual Report 2022/23 Fig.VI.4: General Government Deficit Finance of F.Y 2022/23

200,000.0 400,000.0 600,000.0 800,000.0 1,000,000.0 1,200,000.0 (In Millions of Birr) Years Expenditure Deficit Revenue Including Grants

National Bank of Ethiopia 98 | Annual Report 2022/23 6.5. General Government Public Debt Total general government debt reached Birr 3439.2 billion and showed a 15.3 percent annual growth due to an increase in all of its components (Table 6.5). External public debt at Birr 1534.0 billion, increased 5.5 percent over last fiscal year. Likewise, domestic public debt reached Birr 1909.1 billion depicting 24.5 percent annual increase. Public debt as percentage of GDP was 39.4 percent compared with 48.5 percent a year ago (Table 6.1).

99 | Annual Report 2022/23 Table 6.5: Summary of General public debt by components (In millions of Birr) Particulars 2021/22 2022/23 %age Change [A] [C] Actual Actual [C/A] Total Public Debt

2,983,687.2

3,439,251.2

15.3 External Debt

1,453,608.9

1,534,072.8

5.5 Domestic Debt

1,530,078.3

1,905,178.4

24.5 0 500000 1000000 1500000 2000000 2500000 3000000 3500000 4000000 In million Birr Fiscal Year Fig.VI.5: General Government Public Debt by Componnents Total Public Debt External Debt Domestic Debt

100 | Annual Report 2022/23 VII. INVESTMENT The Ethiopian Investment Agency (EIA) and Regional Investment Offices licensed 104 investment projects worth Birr 62.5 Billion in 2022/23. Though the total investment capital showed a remarkable growth, the number of projects declined (7.1 percent) compared with last year. All the projects, which become operational, were under private ownership. Of the total investment, 37 projects (35.6 percent) were domestic with an investment capital of Birr 5 billion. Meanwhile, foreign investments constituted 67 projects (64.4 percent) and they had Birr 57.5 billion in investment capital. Thus, a number of foreign investment projects during the review period were 48.9 percent higher than the preceding year. The average capital per project for domestic investment projects was Birr 135.8 million while that of foreign investment projects was Birr 857.7 million, signifying that foreign investment projects were relatively more capital intensive than domestic investment projects. The investment projects approved during the review period are to create job opportunities for 6,849 permanent and 9,431 casual workers (Table 7.2).

101 | Annual Report 2022/23 Table 7.1: Number of Projects, Capital and Jobs Created by Operational Investment (Capital in Millions of Birr) 2020/21 2021/22 2022/23 Percentage change A B C Share C/A C/B

1. Total Investment Number 785 112 104 100.0 -86.8 -7.1 Capital 34,073.4 2,183.8 62,490.0 100.0 83.4 2,761.5 Permanent Workers 11,768 12,914 6,849 100.0 -41.8 -47.0 Temporary Workers 6,132 3,452 9,431 100.0 53.8 173.2 1.1. Total Private Number 785 112 104 100.0 -86.8 -7.1 Capital 34,073.4 2,183.8 62,490.0 100.0 83.4 2,761.5 Permanent Workers 11,768 12,914 6,849 100.0 -41.8 -47.0 Temporary Workers 6,132 3,452 9,431 100.0 53.8 173.2 1.1.1. Domestic Number 752 67 37 35.6 -95.1 -44.8 Capital 31,105.6 862.1 5,026.2 8.0 -83.8 483.1 Permanent Workers 8,578 1,973 915 13.4 -89.3 -53.6 Temporary Workers 5,013 228 6,619 70.2 32.0 2,803.1 1.1.2. Foreign Number 33 45 67 64.4 103.0 48.9 Capital 2,967.7 1,321.8 57,463.7 92.0 1,836.3 4,247.5 Permanent Workers 3,190 10,941 5,934 86.6 86.0 -45.8 Temporary Workers 1,119 3,224 2,812 29.8 151.3 -12.8 1.2.Public Number - - - - - - Capital - - - - - - Permanent Workers - - - - - - Temporary Workers - - - - - - Source: Ethiopian Investment Agency

102 | Annual Report 2022/23 Fig.VII.1: Number of Operational Investment Projects by Source Source: Ethiopian Investment Agency Fig.VII.2: Capital of Operational Investment Projects by Source Source: Ethiopian Investment Agency 913 47 752 67 37 63 37 33 45 67 0.0 100.0 200.0 300.0 400.0 500.0 600.0 700.0 800.0 900.0 1,000.0 2018/19 2019/20 2020/21 2020/22 2022/23 Number of projects Domestic Foreign Public 7,839 675 31,106 862 5,026 1,115 645 2,968 1,322 57,464

10,000.0 20,000.0 30,000.0 40,000.0 50,000.0 60,000.0 70,000.0 2018/19 2019/20 2020/21 2021/22 2022/23 Millions of Birr Domestic Foreign Public

103 | Annual Report 2022/23 7.1. Investment by Sector Of the total number of projects that become operational, about 56.7 percent were in manufacturing, 13.5 percent each in construction and real estate, renting & business activities, 5.7 percent in tour operation, transport and communication, 2.9 percent in health and social work, 1.9 percent in hotels and restaurants, 1 percent each in agriculture, hunting & forestry and education sector, and 3.8 percent in others. In terms of investment capital, real estate, renting and business activities took the lion’s share (89.9 percent) followed by manufacturing (4.4 percent), education (2.4 percent), tour operation, transport and communication (1.8 percent) and others (1.1 percent). Fig.VII.3: Distribution of Operational Investment capital by Sector in 2022/23 Source: Ethiopian Investment Agency. Others*: Agriculture, hunting and forestry, Hotel and restaurants, Health and social work, Construction and Others Manufacturing 4.4% Real estate, renting and Business activities 89.9% Education 2.4% Others 3.3%

104 | Annual Report 2022/23 Table: 7.2: Numbers and Capital of Operational Investment Projects by Sector (Capital in millions of Birr) Sectors 2020/21 2021/22 2022/23 Percentage share No. of Projects Investment Capital No. of Projects Investmen t Capital No. of Projects Investmen t Capital No. of Projects Investmen t Capital Manufacturing 242 12,097.0 26 1,308.2 59 2,765.5 56.7 4.4 Agriculture, hunting and forestry 6 114.5 - - 1 20.0 1.0 0.0 Real estate, renting and Business activities 238 10,426.5 23 130.7 14 56,150.9 13.5 89.9 Hotel and restaurants 18 5,887.4 1 105.4 2 30.4 1.9 0.0 Education 2 13.0 1 20.6 1 1,500.0 1.0 2.4 Health and social work 9 864.1 1 7.0 3 48.7 2.9 0.1 Construction 224 1,799.1 47 482.1 14 118.2 13.5 0.2 Tour operation, transport and communicatio n 34 669.2 8 62.5 6 1,139.5 5.8 1.8 Whole sale, retail trade and repair service 3 381.5 1 1.7 - - - - Mining and quarrying - - - - - - - - Electricity, gas, steam and water supply - - - - - - - - Others and other community, social and personal service activities - - - - - - - - Others 8 1,816.1 4 65.7 4 716.7 3.8 1.1 Grand Total 785 34,073.4 112 2,183.9 104 62,490.0 100 100 Source: Ethiopian Investment Agency

105 | Annual Report 2022/23 7.2 Distribution by Region Recording spatial distribution, out of the 104 projects that went operational in 2022/23, about 35 projects (33.7 percent) having Birr 5 billion capital were located in Addis Ababa and 69 projects (66.3 percent) with Birr 57.5 billion in investment capital were multiregional projects (Table 7.4).

Table 7.4: Number and Capital of Approved Projects by Region (Capital in millions of Birr) Regions 2020/21 2021/22 2022/23 Percentage share to total No. of projects Investment Capital No. of projects Investment Capital No. of projects Investment Capital No. of projects Investment Capital Tigray - - - - - - - - Afar - - - - - - - - Amhara 41 285.2 1 1.7 - - - - Oromia - - - - - - - - Somali - - - - - - - - Benishangul￾Gumuz - - - - - - - - SNNPR - - 1 105.4 - - - - Gambella - - - - - - - - Harari - - - - - - - - Addis Ababa 711 30,820.4 64 750.0 35 5,010.3 33.7 8.0 Dire Dawa - - - - - - - - Sidama - - - - - - - - SW Ethiopia - - - - - - - - Multiregional Projects 33 2,967.7 46 1,326.8 69 57,479.7 66.3 92.0 Grand Total 785 34,073.4 112 2,183.8 104 62,490.0 100 100 Source: Ethiopian Investment Agency

106 | A n n u a l R e p o r t 2 0 22 / 23 VIII. INTERNATIONAL DEVELOPMENTS 8.1. International Economic Developments 8.1.1. Overview of the World Economy Global growth is projected to fall from 3.5 percent in 2022 to 3.0 percent in 2023 on an annual average basis. For advanced economies, the growth slowdown projected for 2023 remains significant: from 2.7 percent in 2022 to 1.5 percent in 2023. About 93 percent of advanced economies are projected to have lower growth in 2023, and growth in 2024 among this group of economies is projected to remain at 1.4 percent. On the other hand, in emerging market and developing economies, the growth outlook is broadly stable for 2022 and 2023. In the United States, growth is projected to slow from 2.1 percent in 2022 to 1.8 percent in 2023, and then slow further to 1.0 percent in 2024. Growth in the euro area is projected to fall from 3.5 percent in 2022 to 0.9 percent in 2023, before rising to 1.5 percent in 2024. Given stronger services and tourism, growth has been revised upward by 0.4 percentage Point for Italy and by 1.0 percentage point for Spain. Growth in the United Kingdom is projected to decline from 4.1 percent in 2022 to 0.4 percent in 2023, then to rise to 1.0 percent in 2024, reflecting stronger than expected consumption and investment from the confidence effects of falling energy prices, lower post-Brexit uncertainty, and a resilient financial sector as the March global banking stress dissipates. Growth in Japan is projected to rise from 1.0 percent in 2022 to 1.4 percent in 2023, reflecting a modest upward revision, buoyed by unexpressed demand and accommodative policies. Growth in emerging and developing Asia was on track to rise by 4.5 percent in 2022, then to rise to 5.3 percent in 2023. The forecast for China is unchanged at 5.2 percent for 2023. Growth in the Middle East and Central Asia is projected to decline from 5.4 percent in 2022 to 2.5 percent in 2023. In sub-Saharan Africa, growth is projected to decline to 3.5 percent in 2023. Growth in

107 | A n n u a l R e p o r t 2 0 22 / 23 Nigeria in 2023 is projected to gradually slowdown, reflecting security issues in the oil sector. In South Africa, growth is expected to decline to 0.3 percent in 2023, with the decline reflecting power shortages. Table 8.1: Overview of World Economic Outlook and Projection (Annual Percentage Change) Particulars 2021 2022 Projection 2023 2024 World Output 6.3 3.5 3.0 3.0 Advanced Economies 5.4 2.7 1.5 1.4 United States 5.9 2.1 1.8 1.0 Euro Area 5.3 3.5 0.9 1.5 Japan 2.2 1.0 1.4 1.0 United Kingdom 7.6 4.1 0.4 1.0 Emerging Market & Developing Economies 6.8 4.0 4.0 4.1 Middle East and Central Asia 4.4 5.4 2.5 3.2 Sub-Saharan Africa 4.7 3.9 3.5 4.1 Nigeria 3.6 3.3 3.2 3.0 South Africa 4.7 1.9 0.3 1.7 World Trade Volume (goods & services) 10.9 5.1 0.9 3.5 Import Advanced Economies 10.3 6.7 0.1 3.0 Emerging Market and Developing Economies 11.8 3.2 1.7 4.4 Export Advanced Economies 9.8 5.3 1.8 3.1 Emerging Market and Developing Economies 12.8 4.1 -0.1 4.2 Commodity Prices (US dollars) Oil 65.9 39.2 -24.1 -5.8 Non- fuel(average based on world commodity import weights) 26.3 7.4 -2.8 -1.0 World Consumer Price 4.7 8.7 6.9 5.8 Advanced Economies 3.1 7.3 4.6 3.0 United Stated 4.7 8.0 4.1 2.8 Euro Area 2.6 8.4 5.6 3.3 Japan -0.2 2.5 3.2 2.9 Emerging Market & Developing Economies 5.9 9.8 8.5 7.8 China 0.9 1.9 0.7 1.7 Mexico 5.7 7.9 5.5 3.8 Turkey 19.6 72.3 51.2 62.5 Brazil 8.3 9.3 4.7 4.5 Russia 6.7 13.8 5.3 6.3 Sub-Sahara Africa 11.0 14.5 15.8 13.1 Angola 25.8 21.4 13.1 22.3 Nigeria 17.0 18.8 25.1 23.0 Ghana 10.0 31.9 42.2 23.2 Source: IMF, World Economic Outlook, October, 2023

108 | A n n u a l R e p o r t 2 0 22 / 23 8.1.2. World Trade Global trade growth is expected to decline from 5.1 percent in 2022 to 0.9 percent in 2023. The decline in 2023 reflects not only the path of global demand, but also shifts in its composition toward domestic services, lagged effects of US dollar appreciation which slows trade owing to the widespread invoicing of products in US dollars and rising trade barriers. 8.1.3. Inflation and Commodity Prices Global headline inflation is set to fall from 8.7 percent in 2022 to 6.9 percent in 2023 on the back of lower commodity prices, but underlying (core) inflation is likely to decline more slowly. In the United States, headline consumer price inflation is expected to decrease from 8.0 percent in 2022 to 4.1 percent in 2023. Likewise, in Euro area headline inflation is expected to decline to 5.6 percent in 2023 from 8.4 percent in 2022. Headline inflation in Japan forecasted to rise by 3.2 percent in 2023 from 2.5 percent in 2022. In China inflation is expected to rise by 1.9 in 2022 and increase by 0.7 percent in 2023. Inflation is expected to rise in 2022 and 2023 in Sub-Saharan Africa, 14.5 percent and 15.8 percent, respectively. Crude oil prices are projected to fall by about 24.1 percent in 2023 from rise in 2022 by 39.2 percent, while nonfuel commodity prices are expected to rise in 2022 by 7.4 percent and declined by 2.8 in 2023. 8.1.4. Exchange Rate In foreign exchange markets prevailing on 14 June 2022/23, the euro appreciated in trade-weighted terms. During the review period the nominal effective exchange rate of the euro as measured against the currencies of 41 of the euro area’s most important trading partners appreciated by 1.7 percent. In terms of bilateral exchange rate movements against major currencies, the euro appreciated against the US dollar (by 2.0 percent), despite a widening of interest rate differentials, as well as against the Chinese renminbi (by 5.9 percent) and the Japanese yen (by 7.9 percent), while it depreciated against the pound sterling (by 2.7 percent) and the Swiss franc (by 0.7

109 | A n n u a l R e p o r t 2 0 22 / 23 percent). It also strengthened against the currencies of most major emerging economies in Asia, as well as against the Turkish lira (by 26.7 percent), but weakened against the Brazilian real (by 6.3 percent) and against the currencies of most central and eastern European non-euro area EU Member States. 8.2. Implications of International Economic Developments on the Ethiopia Economy Despite slowdown, the global economy is estimated to grow in 2022/23 while commodity prices, both oil and non-oil commodities, are expected to increase. These have both positive and negative impact on the economy. Improvement in the global economy creates demand for Ethiopia’s export commodities and increases forex in flows and employment.

Meanwhile, higher oil price increased import payments which in turn results in higher pressure in the country’s trade balance.

STATISTICAL ANNEXES

Table 1: GDP By Economic Activity at Constant Prices (In millions of Birr) 2008 2009 2010 2011 2012 2013 2014 2015 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 Agriculture, Hunting and Forestry 542,700.2 579,022.9 599,331.4 622,220.3 648,711.8 684,775.8 726,412.8 771,163.0 Crop 346,293.6 374,649.8 392,291.8 404,049.6 422,966.5 446,919.4 477,801.1 511,777.5 Animal Farming and Hunting 146,959.5 153,170.4 154,038.0 163,279.5 168,722.4 178,571.3 186,759.1 195,057.3 Forestry 49,447.1 51,202.7 53,001.7 54,891.1 57,022.9 59,285.2 61,852.6 64,328.3 Fishing 1,381.9 1,389.4 1,546.7 1,581.8 1,625.9 1,653.4 2,015.5 2,794.3 Mining and Quarrying 6,116.8 4,296.9 3,402.8 2,658.9 5,089.3 10,960.7 11,624.5 10,796.1 Manufacturing 89,246.7 111,249.6 117,410.7 127,986.7 137,601.5 144,618.9 151,583.9 162,125.7 Large and Medium Scale Manufacturing 61,687.4 73,528.2 77,966.5 87,691.9 96,268.6 102,266.2 108,223.9 117,266.1 Small Scale and Cottage Industries 27,559.2 37,721.5 39,444.2 40,294.7 41,332.9 42,352.7 43,360.1 44,859.6 Electricity and Water 11,015.5 11,552.5 11,929.0 14,115.4 15,136.4 16,522.3 17,593.6 19,826.3 Construction 237,545.0 286,749.6 331,691.4 381,443.8 419,078.0 446,721.7 468,435.8 501,490.4 Whole Sale and Retail Trade 202,241.5 215,351.0 241,936.3 268,037.0 285,293.1 303,204.7 327,260.0 352,241.8 Hotels and Restaurants 41,601.3 41,625.2 44,335.3 48,143.8 49,220.4 50,484.9 54,536.5 60,146.9 Transport and Communications 202,241.5 215,351.0 241,936.3 104,436.2 105,646.1 113,090.7 124,120.5 139,047.5 Financial Intermediation 41,601.3 41,625.2 44,335.3 57,368.6 65,274.3 71,158.1 78,636.2 86,092.9 Real Estate, Renting and Business Activities 67,062.9 70,005.2 74,364.3 79,942.0 87,510.2 95,299.7 103,829.9 113,274.2 Public Administration and Defense 62,259.2 70,488.5 76,754.1 83,662.0 85,612.2 89,770.1 93,768.3 97,515.9 Education 42,385.6 41,031.0 42,520.8 44,221.6 44,784.1 45,694.9 46,432.3 47,583.1 Health and Social Work 15,669.4 16,767.9 18,153.4 20,747.2 23,414.2 26,554.3 29,413.0 32,650.5 Other Community , Social & Personal Services 18,371.3 19,198.4 20,178.0 21,454.2 21,995.5 22,426.8 22,890.2 23,400.6 Private Households with Employed Persons 16,063.8 16,633.3 17,276.0 17,707.4 18,115.5 18,515.9 18,939.5 19,329.1 Total 1,463,883.2 1,613,519.9 1,739,254.9 1,895,726.7 2,014,108.6 2,141,452.8 2,277,492.4 2,439,478.1 Less : FISIM 14,485.8 17,038.3 19,763.6 21,037.4 24,520.9 27,214.5 28,829.5 29,556.7 Gross Value Added at Constant Basic Prices 1,449,397.5 1,596,481.6 1,719,491.3 1,874,689.3 1,989,587.7 2,114,238.3 2,248,662.8 2,409,921.4 Taxes on Products 118,700.0 120,645.6 114,575.2 112,468.2 119,592.3 113,931.8 98,085.2 91,585.7 GDP at Constant Market Prices 1,568,097.5 1,717,127.2 1,834,066.5 1,987,157.5 2,109,180.1 2,228,170.1 2,346,748.0 2,501,507.2 Source:MoPD Sectors/Year

Table 2: Growth Rate of GDP By Economic Activity at Constant Prices 2007 2008 2009 2010 2011 2012 2013 2014 2015 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 Agriculture, Hunting and Forestry 6.3 2.3 6.7 3.5 3.8 4.3 5.6 6.1 6.2 Crop 7.2 3.4 8.2 4.7 3 4.7 5.7 6.9 7.1 Animal Farming and Hunting 4.7 -1.5 4.2 0.6 6 3.3 5.8 4.6 4.4 Forestry 3.5 2.2 3.6 3.5 3.8 3.9 4.0 4.3 4.0 Fishing 30.6 0.1 0.5 11.3 2.3 2.8 1.7 21.9 38.6 Mining and Quarrying -25.6 -3.3 -29.8 -20.8 -21.9 91.4 115.4 6.1 -7.1 Manufacturing 18.2 18.4 24.7 5.5 7.7 7.5 5.1 4.8 7.0 Large and Medium Scale Manufacturing 23.1 22.9 19.2 6.0 10 9.8 6.2 5.8 8.4 Small Scale and Cottage Industries 3.8 2.5 36.9 4.6 3 2.6 2.5 2.4 3.5 Electricity and Water 4.5 15.0 4.9 3.3 4 7.2 9.2 6.5 12.7 Construction 31.6 25.0 20.7 15.7 15 9.9 6.6 4.9 7.1 Whole Sale and Retail Trade 12.3 8.2 6.5 12.3 11.7 6.4 6.3 7.9 7.6 Hotels and Restaurants 29.6 15.6 0.1 6.5 9 2.2 2.6 8.0 10.3 Transport and Communications 13.3 13.7 15.1 6.4 21 1.2 7.0 9.8 12.0 Financial Intermediation 7.5 9.6 18.3 10.7 10.1 10.2 9.0 10.5 9.5 Real Estate, Renting and Business Activities 4.1 3.7 4.4 6.2 7.5 9.5 8.9 9.0 9.1 Public Administration and Defense 6.0 7.4 13.2 8.9 9 2.3 4.9 4.5 4.0 Education 9.2 8.8 -3.2 3.6 4 1.8 2.0 1.6 2.5 Health and Social Work 13.0 10.8 7.0 8.3 14.3 12.9 13.4 10.8 11.0 Other Community , Social & Personal Services 3.7 3.0 4.5 5.1 6.3 2.5 2.0 2.1 2.2 Private Households with Employed Persons 4.4 4.3 3.5 3.9 2.5 2.3 2.2 2.3 2.1 Total 10.4 8.0 10.2 7.8 8.9 6.2 6.3 6.4 7.1 Less : FISIM 17.9 16.9 17.6 16.0 7 14.2 11.0 5.9 2.5 Gross Value Added at Constant Basic Prices 10.4 8.0 10.1 7.7 9.0 6.1 6.3 6.4 7.2 Taxes on Products 10.2 3.1 1.6 -5.0 -1.8 6.3 -4.7 -13.9 -6.6 GDP at Constant Market Prices 10.4 7.6 9.5 6.8 8.3 6.1 5.6 5.3 6.6 Source:MoPD Industry/Year

Table 3: GDP by Economic Activity at Current Prices (In million Birr) 2010 2011 2012 2013 2014 2015 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 Agriculture, Hunting and Forestry 684,644 910,589.1 1,196,254.2 1,626,284.1 2,312,286.2 3,114,215.0 Crop 427,193 587,216.0 797,015.6 1,122,637.7 1,639,822.3 2,189,185.1 Animal Farming and Hunting 191,867 247,337.3 303,074.1 385,788.3 523,066.6 731,290.9 Forestry 65,584 76,035.8 96,164.4 117,858.2 149,397.2 193,738.9 Fishing 2,351 3,020.6 3,747.5 5,034.3 5,351.5 7,481.6 Mining and Quarrying 4,053 3,368.1 9,643.4 30,909.1 34,587.9 29,329.9 Manufacturing 128,200 150,530.5 178,972.3 199,934.1 261,122.9 390,709.0 Large and Medium Scale Manufacturing 84,791 104,723.1 125,757.6 141,915.1 185,656.5 285,203.1 Small Scale and Cottage Industries 43,410 45,807.5 53,214.7 58,019.0 75,466.4 105,505.9 Electricity and Water 15,026 18,726.4 23,826.9 30,434.9 34,860.6 53,134.9 Construction 452,978 495,283.1 567,201.4 687,236.9 1,068,150.2 1,662,566.4 Whole Sale and Retail Trade 275,513 360,656.3 444,506.1 554,457.8 801,596.4 1,129,865.3 Hotels and Restaurants 53,441 66,596.7 79,304.1 95,766.7 129,976.7 195,338.3 Transport and Communications 82,947 99,884.4 140,312.7 183,481.3 251,762.7 314,877.2 Financial Intermediation 69,359 85,044.1 102,994.4 122,893.7 180,666.7 238,373.1 Real Estate, Renting and Business Activities 79,553 106,157.2 154,804.2 228,594.8 404,030.6 715,651.7 Public Administration and Defense 94,614 103,262.3 120,235.7 159,154.9 188,988.2 260,507.3 Education 75,776 85,738.9 94,199.3 116,406.3 127,857.9 164,357.3 Health and Social Work 24,100 27,328.0 34,927.8 40,104.3 47,995.9 60,118.6 Other Community , Social & Personal Services 23,634 28,140.8 33,305.6 39,400.7 49,977.4 66,077.1 Private Households with Employed Persons 25,428 31,181.0 38,264.3 45,764.8 67,753.0 80,607.1 Total 2,091,618 2,575,507.5 3,222,499.9 4,165,858.8 5,966,964.9 8,483,209.8 Less : FISIM 26,829 31,884.3 39,104.0 46,801.9 67,289.5 79,436.0 Gross Value Added at Constant Basic Prices 2,064,789 2,543,623.2 3,183,395.8 4,119,057.0 5,899,675.3 8,403,773.7 Taxes on Products 137,583 152,599.6 191,351.1 221,967.3 257,339.9 319,343.1 GDP at Current Market Prices 2,202,373 2,696,222.7 3,374,746.9 4,341,024.2 6,157,015.2 8,723,116.8 Source: MoPD Industry/Year 4

Table 4: Growth Rates of GDP by Economic Activity at Current Prices (%) 2010 2011 2012 2013 2014 2015 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 Agriculture, Hunting and Forestry 11.0 33.0 32.6 35.9 42.2 34.7 Crop 8.6 37.5 35.7 40.9 46.1 33.5 Animal Farming and Hunting 16.5 28.9 27.0 27.3 35.6 39.8 Forestry 11.6 16.2 26.5 22.6 26.8 29.7 Fishing 4.1 28.5 24.1 34.3 6.3 39.8 Mining and Quarrying -16.3 -16.9 186.3 220.5 11.9 (15.2) Manufacturing 13.1 17.4 18.9 11.7 30.6 49.6 Large and Medium Scale Manufacturing 13.4 20.2 20.1 12.8 30.8 53.6 Small Scale and Cottage Industries 12.4 3.0 16.2 9.0 30.1 39.8 Electricity and Water 9.6 20.7 27.2 27.7 14.5 52.4 Construction 50.9 9.3 14.5 21.2 55.4 55.6 Whole Sale and Retail Trade 22.4 32.4 23.2 24.7 44.6 41.0 Hotels and Restaurants 19.0 25.1 19.1 20.8 35.7 50.3 Transport and Communications 6.8 20.4 40.5 30.8 37.2 25.1 Financial Intermediation 33.9 22.6 12.2 19.3 47.0 31.9 Real Estate, Renting and Business Activities 12.4 33.4 45.8 47.7 76.7 77.1 Public Administration and Defense 17.1 9.1 16.4 32.4 18.7 37.8 Education 24.0 13.1 11.3 23.6 9.8 28.5 Health and Social Work 28.4 13.4 27.8 14.8 19.7 25.3 Other Community , Social & Personal Services 14.9 19.1 18.4 18.3 26.8 32.2 Private Households with Employed Persons 27.9 22.6 22.7 19.6 48.0 19.0 Total 21.4 23.3 25.3 29.3 43.2 42.2 Less : FISIM 42.2 22.0 13.8 19.7 43.8 18.1 Gross Value Added at Current Basic Prices 21.2 23.3 25.4 29.4 43.2 42.4 Taxes on Products 6.9 10.9 25.4 16.0 15.9 24.1 GDP at Current Market Prices 20.2 22.4 25.2 28.6 41.8 41.7 Source: MoPD Sectors/Year 5

Table 5: Summary of External Public Debt 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 (2007) (2008) (2009) (2010) (2011) (2012) (2013) (2014) (2015) EXTERNAL DEBT Disbursed * 382,564.9 449,037.6 539,568.8 703,675.6 782,908.8 1,010,608.8 1,289,835.3 1,453,608.9 1,534,072.6 Undisbursed n.a DRAWINGS (gross) 119,075.7 73,812.2 66,379.3 92,796.0 79,206.1 106,681.7 56,108.5 55,519.7 78,725.5 REPAYMENTS (1) -13,967.5 -16,306.7 -19,479.7 -30,619.4 -40,234.6 -44,679.7 -56,216.2 -81,284.9 -72,998.9 DEBT SERVICING (2) 18,974.75 23,872.4 29,345.3 42,480.4 58,214.7 64,124.9 75,973.7 105,770.6 95,611.9 Principal 13,967.5 16,306.7 19,479.7 30,619.4 40,234.6 44,679.7 56,216.2 81,284.9 72,998.9 Interest (3) 5,007.2 7,565.7 9,865.6 11,861.0 17,980.1 19,445.1 19,757.5 24,485.7 22,613.0 DEBT SERVICE TO EXPORT OF GOODS RATIO 31.1 39.4 45.0 57.4 77.8 68.5 54.1 53.1 49.6 EXTERNAL DEBT TO TO GDP (%)** 29.5 28.6 29.4 32.0 29.1 29.9 29.7 23.6 17.6 EXPORT OF GOODS 61,064.4 60,526.4 65,167.1 74,044.8 74,807.7 93,641.5 140,326.9 199,307.5 192,804.5 GDP (Current Current Price) 1,297,954.7 1,568,097.5 1,832,786.0 2,200,120.6 2,690,751.4 3,374,746.9 4,341,024.2 6,157,015.2 8,722,307.7 Source: Ministry of Finance and Economic Development *Excludes State defence Credits and Ruble denominated debt. (1)-on cash basis; includes repayments of Trust Fund Loans , and repurchases from IMF. (2)-on accrual basis; includes repayments of Trust Fund Loans, and repurchases from IMF. (3) - Includes IMF charges and interest. **Revised based on rebased GDP series NB: USD to birr coversion is made by using annual average exchange rate. (In Millions of Birr)

Table 6: Balance of Payments (In Millions of Birr) G.C. 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 EFY (2008) (2009) (2010) (2011) (2012) (2013) (2014) (2015) TRADE BALANCE -292,474.9 -289,030.5 -324,244.9 -349,149.7 -341,436.0 -417,133.0 -681,230.9 -720,920.9 Export(f.o.b) 60,526.4 65,167.1 74,044.8 74,806.8 93,641.5 140,326.9 199,197.1 192,804.3 Coffee 15,253.7 19,795.6 21,905.1 21,436.5 26,824.8 35,480.3 69,485.1 71,409.4 Other Exports 45,272.7 45,371.5 52,139.7 53,370.3 66,816.7 104,846.6 129,712.0 121,394.9 Imports (c.i.f.) -353,001.4 -354,197.6 -398,289.7 -423,956.5 -435,077.5 -557,459.9 -880,428.0 -913,725.2 Fuel -28,260.8 -40,876.9 -60,553.0 -72,961.5 -65,445.6 -75,723.5 -168,062.9 -211,347.1 Other Imports -324,740.5 -313,320.8 -337,736.7 -350,995.0 -369,632.0 -481,736.4 -712,365.1 -702,378.1 Net Services -13,027.4 -12,588.8 -5,221.1 -15,833.5 -6,862.8 516.4 31,043.3 52,518.3 Travel -1,386.5 -951.7 7,146.7 6,225.9 10,431.2 26,800.9 22,577.5 28,054.5 Other Transportation 11,209.2 8,569.4 13,494.3 18,091.2 27,972.4 28,743.3 53,574.7 72,162.5 Government(n.i.e.) 7,600.2 8,625.2 5,641.9 7,935.0 1,878.4 6,314.9 9,019.8 11,089.2 Investment Income -7,849.3 -11,214.0 -11,410.1 -16,925.9 -19,203.0 -22,380.5 -27,861.8 -22,028.7 Other Services -22,601.0 -17,617.7 -20,094.0 -31,159.7 -27,942.0 -38,962.2 -26,266.8 -36,759.2 Net Goods & Services -305,502.3 -301,619.3 -329,466.0 -364,983.2 -348,298.9 -416,616.7 -650,187.6 -668,402.6 Private Transfers (net) 135,680.5 122,945.6 158,601.1 167,629.9 162,534.4 238,717.8 345,119.4 362,459.0 Current Account Balance -169,821.8 -178,673.7 -170,864.9 -197,353.3 -185,764.5 -177,898.8 -305,068.2 -305,943.6 Public Transfers (net) 29,359.9 32,014.6 32,678.7 58,540.8 47,797.8 53,408.5 55,185.2 58,256.0 Non Monetary Capital (net) 138,330.8 154,325.0 161,503.2 135,289.6 135,603.6 147,709.5 132,280.7 186,753.7 Public long-term (net)* 67,020.2 57,928.2 68,083.1 46,595.6 64,463.4 6,465.0 -22,774.0 11,437.8 Short-term 2,322.0 2,913.8 -3,792.1 4,099.0 -4,682.9 -13,081.3 -5,601.1 -7,339.7 FDI 68,988.6 93,483.1 97,212.3 84,595.0 75,823.1 154,325.7 160,655.8 182,655.5 Net errors and Omissions -15,405.0 7,096.2 -28,580.3 -22,894.2 -23,758.0 -11,564.6 13,190.0 20,862 Overall Balance -17,536.1 14,762.1 -5,263.3 -26,417.1 -26,121.1 11,654.6 -104,412.3 -40,071.4 Financing : 17,536.1 -14,762.1 5,263.3 26,417.1 26,121.1 -11,654.6 104,412.3 40,071.4 Monetary Authorities (Reseves), net 17,536.1 -14,762.1 5,263.3 26,417.1 26,121.1 -11,654.6 104,412.3 40,071.4 Arrears Change 0.0 Debt Relief 0.0 Cancellation 0.0 Rescheduling 0.0 Sorce: NBE Staff Compilation *Includes other public sector long-term loan and private loan NB: USD to birr coversion is made by using annual average exchange rate.

Table 7: Value of Major Exports (In Thousands of Birr) 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 (2008) (2009) (2010) (2011) (2012) (2013) (2014) (2015) Coffee 15,267,166.7 19,897,558.9 21,893,480.4 21,490,708.9 27,044,310.5 36,367,828.0 70,175,272.0 71,425,122.0 Oilseeds 10,076,702.8 7,891,362.5 11,188,854.0 10,921,323.8 11,012,982.9 13,180,233.0 12,896,678.4 13,781,966.4 Leather and Leather products 2,424,089.0 2,558,995.8 3,455,808.7 3,285,473.7 2,208,391.3 1,425,336.1 1,609,850.6 1,315,467.5 Pulses 4,886,962.9 6,276,562.9 7,124,264.4 7,659,551.2 7,422,895.7 9,243,279.1 10,711,389.3 17,370,062.4 Meat Products 2,026,532.5 2,214,721.7 2,661,968.0 2,484,948.7 2,107,034.0 2,964,430.2 5,329,508.5 4,345,071.3 Fruits & Vegetables 1,128,060.7 1,257,748.5 1,603,497.1 1,709,468.5 1,834,795.4 2,730,982.1 4,272,817.6 4,921,869.7 Sugar - 115,431.7 133,582.5 106,710.5 45,089.5 7,832.9 614.7 15,127.5 Gold 6,113,142.1 4,683,990.8 2,605,757.2 775,705.7 6,572,639.3 25,378,419.0 26,464,048.5 10,491,436.8 Oil Cakes - - - - - - - - Live Animals 3,090,572.3 1,506,508.9 1,539,071.6 1,287,954.6 1,671,076.6 1,758,839.4 1,437,406.1 931,096.6 Chat 5,511,986.7 6,113,689.6 6,882,238.3 8,511,121.5 10,116,170.9 15,808,881.6 18,910,324.2 13,154,557.3 Petroleum Products - - - - - - - - Bee's Wax 51,326.1 60,566.7 81,311.4 67,657.8 65,655.6 69,226.8 58,907.4 58,881.0 Tantalem 151,563.5 137,861.4 246,007.6 274,291.8 155,490.6 179,801.6 464,712.4 902,447.4 Cotton 11.6 - 140,351.4 8,572.2 8,218.7 - - - Text. & Text. Prdts 1,633,981.4 2,004,285.7 2,695,228.8 4,296,263.5 5,235,336.0 5,725,100.5 8,529,908.7 7,911,617.6 Cereals and Flour 185,207.8 645,101.2 156,779.6 81,940.5 117,441.6 758,212.7 1,642,831.6 1,738,883.7 Natural Gum 175,997.8 266,180.1 233,800.6 144,922.8 157,838.7 137,246.6 107,704.1 55,155.3 Civet - - - - - - - - Hop - - - - - - - - Animal Fodder - - - - - - - - Natural Honey 41,928.3 31,343.9 23,694.8 13,468.4 16,439.3 3,036.6 10,592.0 11,932.7 Marble - - - - - - - - Flower 4,737,809.0 4,905,507.6 5,982,071.2 7,228,221.9 13,208,479.3 18,461,631.4 26,445,082.3 30,210,536.2 Beverage 109,780.9 90,513.2 108,799.4 114,745.8 111,398.5 191,924.6 223,891.9 270,324.6 Spices 566,214.9 554,729.1 441,282.3 381,907.9 432,708.0 620,629.5 807,366.2 559,747.4 Others 1,759,529.8 2,473,083.9 5,013,633.7 4,087,463.4 4,820,745.8 6,688,537.9 9,896,132.5 11,686,027.9 Others 9,362,025.1 11,108,606.1 15,041,649.2 16,631,798.2 24,264,096.5 32,766,121.4 48,128,221.7 53,346,672.9 RE-exports - - - - Total 59,938,566.96 63,685,744.10 74,211,482.8 74,932,423.0 94,365,138.3 141,701,409.6 199,995,039.0 191,157,331.5 Source: Ethiopian Customs Commission Commodity

Table 8: Quantity of Major Exports (In Metric Tons) 2014/15 2014/15 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 (2007) (2007) (2009) (2010) (2011) (2012) (2013) (2014) (2015) Coffee 183,870.70 198,658.11 225,747.01 238,572.83 230,931.42 271,111.52 248,653.58 303,235.24 241,700.46 Oilseeds 319,461.91 436,573.50 333,514.13 348,548.01 260,001.58 236,504.53 245,479.33 172,139.72 150,286.63 Leather and Leather products 6,174.96 5,983.46 5,890.12 6,400.79 5,590.40 3,551.27 2,290.59 2,239.29 1,695.73 Pulses 340,736.88 375,425.13 392,743.28 438,061.53 462,821.56 354,010.48 280,603.44 213,873.61 396,224.76 Meat Products 19,034.52 18,965.08 19,564.98 19,954.85 17,719.23 12,819.96 14,631.78 19,012.08 11,527.96 Fruits & Vegetables 150,148.72 167,076.37 178,569.19 188,976.92 175,619.64 191,183.11 221,695.57 222,650.42 177,240.33 Sugar - - 51,126.64 35,958.09 43,706.24 17,515.03 2,511.84 10.00 19.99 Gold 9.04 8.58 5.97 2.82 0.82 3.32 9.56 8.68 3.46 Oil Cakes - - - - - - - - - Live Animals 77,860.31 77,779.01 36,066.48 31,936.99 24,346.65 29,395.64 26,262.97 17,266.04 7,873.21 Chat 49,204.18 47,000.13 48,818.10 47,023.94 53,565.91 57,136.13 71,209.90 56,331.21 31,310.12 Petroleum Products - - - - - - - - - Bee's Wax 520.38 267.65 302.34 358.70 283.18 258.01 229.00 158.02 139.22 Tantalem 147.79 185.90 229.30 2,860.36 386.20 76.08 66.77 161.47 1,534.87 Cotton 8.29 0.34 - 3,529.38 252.91 80.00 - - - Text. & Text. Prdts 14,858.30 12,281.54 16,192.82 16,761.81 19,888.80 22,798.39 24,045.62 35,234.52 31,382.08 Cereals and Flour 39,171.91 11,403.59 71,737.19 11,805.28 3,579.95 4,670.14 25,144.37 38,367.58 39,005.50 Natural Gum 3,472.77 2,351.01 3,383.90 2,482.77 1,111.41 1,384.59 769.68 472.71 308.66 Civet - - - - - - - - - Hop - - - - - - - - - Animal Fodder - - - - - - - - - Natural Honey 681.18 592.53 444.10 316.30 134.43 152.14 15.61 53.91 37.78 Marble - - - - - - - - - Flower 46,330.67 50,629.10 49,356.08 50,100.88 57,849.31 94,389.84 101,578.88 114,253.02 112,989.70 Beverage 2,990.00 4,213.56 3,943.14 3,566.97 4,404.93 4,430.26 5,310.98 5,439.07 4,502.34 Spices 19,146.48 13,374.79 12,427.56 12,576.85 11,589.88 12,499.67 12,823.23 8,667.63 6,429.37 Source: Ethiopian Customs Commission Commodity

Table 9: Value of Major Imports (Thousands of Birr) Period Food & Live Animals Beverages Tobacco Petroleum Crude Petroleum Prod.**** Chemicals Fertilizers Medical & Pharm. Prod Soap & Polish Rubber Prod. Paper & Paper Manfc. 2012/13 11,635,650 261,691 193,101 0 26,565,255 2,092,402 5,332,244 7,169,253 907,442 4,030,338 2,064,095 2013/14 9,165,826 533,829 91,441 18 47,619,870 3,647,031 7,808,484 2,389,297 2,186,493 5,858,244 1,992,580 2014/15 13,155,398 570,045 94,776 200 39,822,539 3,751,995 8,641,772 2,568,987 2,186,737 5,979,668 2,062,833 2015/16 24,592,888 746,323 153,595 109 27,005,493 3,616,705 10,491,320 2,531,734 2,694,456 6,350,622 2,525,557 2016/17 14,830,981 699,400 122,286 3,729 39,143,280 3,323,962 12,279,084 2,091,492 3,090,001 6,708,574 2,457,186 2017/18 22,346,613 843,503 107,047 1,795 58,613,987 4,277,092 12,361,827 1,495,997 3,299,739 6,438,707 2,180,534 2018/19 19,283,197 547,466 107,233 885 69,942,603 5,355,212 17,709,856 2,431,705 3,923,383 7,698,856 2,964,510 2019/20 30,535,356 921,922 113,817 1,964 62,056,891 5,815,180 16,823,353 3,092,276 4,539,296 9,435,759 4,263,241 2020/21 59,877,394 944,240 202,052 10,059 72,597,464 6,105,217 21,000,828 4,407,459 5,425,663 9,959,762 3,359,773 2021/22 115,668,627 2,097,436 417,870 6,971 165,014,806 9,140,163 24,263,829 10,813,389 7,324,338 13,968,242 5,473,448 2022/23 81,855,321 1,256,609 402,246 9,501 208,987,032 14,080,158 28,785,485 183,926 7,465,607 14,675,878 8,663,978 Table 9 Continued: Period Textiles Clothings Glass & Glass Ware Metal & Metal Manfc. Machinery & Aircraft Road Motor Vehicles Electrical Materials Grain* Telecomm. Appara. Others GRAND TOTAL 2012/13 2,744,224 4,449,522 722,828 21,688,480 28,035,377 20,493,273 11,912,689 9,865,215 96,583 58,096,034 208,490,479 '2013/14 4,622,749 5,442,436 1,942,407 29,939,445 36,774,861 23,820,186 22,735,293 5,603,599 349,551 54,927,511 261,847,552 2014/15 5,819,130 6,802,500 2,477,281 45,631,138 45,707,264 31,471,855 43,251,536 2,971,791 1,489,172 69,454,129 330,938,955 2015/16 5,669,241 7,990,759 2,731,966 46,750,241 58,130,972 33,759,296 37,416,225 3,617,393 1,212,163 78,646,953 353,016,619 2016/17 5,416,692 8,529,700 3,376,822 41,572,482 56,981,595 33,498,960 30,086,052 3,847,407 7,730,645 82,328,213 354,271,135 2017/18 5,039,340 9,639,953 3,159,828 37,072,741 65,746,027 27,957,776 28,222,631 5,975,107 428,242 107,882,087 397,115,468 2018/19 6,145,566 6,571,190 2,989,311 40,675,845 59,368,139 22,151,317 27,929,885 4,653,401 1,364,754 126,233,238 423,394,151 2019/20 9,389,053 5,910,193 3,276,373 51,308,076 69,932,130 9,497,824 25,002,128 4,674,500 610,593 119,663,926 432,189,352 2020/21 10,385,932 7,877,484 3,026,514 53,117,272 78,005,719 4,859,279 32,953,170 19,960,579 809,586 184,416,278 559,341,145 2021/22 15,606,493 6,910,168 5,052,160 58,411,496 66,130,653 4,644,695 36,926,587 39,825,945 1,266,842 334,881,277 884,019,490 2022/23 20,253,949 8,720,790 5,403,817 63,694,153 88,070,178 6,777,732 41,298,064 19,397,703 3,335,125 309,064,138 912,983,688

• Included in "Food & Live Animals". Source: Ethiopian Customs Commission

Period Food & Live Animals Beverages Tobacco Petroleum Crude Petroleum Prod. Chemicals Fertilizers Medical & Pharm. Prod Soap & Polish Rubber Prod. 2006/07 597,407.9 2,222.9 1,565.8 - 1,454,121.6 42,222.5 272,802.8 7,010.7 49,042.3 31,256.4 2007/08 506,952.6 2,608.9 2,749.1 - 1,619,430.5 47,665.6 479,485.9 7,959.6 43,334.9 32,450.0 2008/09 1,834,398.8 2,024.2 1,767.6 - 1,404,122.1 53,302.7 528,635.4 11,796.6 51,938.2 37,305.6 2009/10 1,781,546.2 2,415.7 2,659.8 - 2,365,707.0 73,106.4 615,917.4 9,746.8 38,977.5 49,583.9 2010/11 547,512.7 2,308.8 2,228.5 - 1,795,018.8 56,496.0 622,239.2 15,022.9 34,381.8 37,465.4 2011/12 1,818,239.2 3,380.2 2,114.6 - 2,160,455.6 65,088.8 907,129.9 15,442.9 52,956.6 38,732.2 2012/13 1,105,099.7 13,902.5 7,115.5 7,384.2 1,506,402.8 92,926.1 402,556.6 23,612.5 162,562.4 32,775.3 2013/14 1,098,316.9 15,727.9 1,258.8 0.3 2,623,450.8 183,439.5 11,765.6 924.0 43,511.0 84,386.5 2014/15 1,556,755.8 19,058.0 1,148.3 7.4 2,822,058.9 182,043.5 13,804.2 950.6 51,552.3 87,619.2 2015/16 3,162,932.8 22,234.2 1,719.1 1.3 3,043,561.0 185,477.7 14,155.6 1,280.9 66,325.2 242,399.6 2016/17 1,863,068.2 25,010.1 1,440.2 2.6 3,445,456.0 174,373.4 23,800.8 842.3 62,997.9 106,916.3 2017/18 2,217,510.2 26,551.5 1,202.6 50.9 3,770,588.9 183,265.1 15,421.0 1,105.1 84,336.7 124,577.2 2018/19 1,822,744.5 16,807.4 1,164.8 30.0 3,820,223.0 199,647.8 33,959.8 1,150.6 114,565.9 97,938.9 2019/20 2,773,553.3 16,825.8 1,010.0 53.9 3,867,196.1 718,932.3 24,071.8 31,766.5 85,684.7 111,569.5 2020/21 4,153,337.6 16,308.9 1,303.0 147.0 3,719,623.1 176,366.0 22,352.1 808.8 83,410.9 92,909.1 2021/22 4,021,527.7 21,572.8 1,539.7 80.3 3,911,168.8 163,271.5 26,517.5 813.9 69,837.3 97,874.8 2022/23 2,128,163.5 11,313.6 2,517.2 94.7 3,940,881.7 203,320.2 28,503.6 168.8 56,243.5 93,526.7 Table 10 continued: Period Paper & Paper Manfc. Textiles Clothings Glass & Glass Ware Metal & Metal Manfc. Machinery & Aircraft Road Motor Vehicles Electrical Materials Grain* Telecomm. Appara. 2007/08 78,419.8 41,135.5 30,473.6 38,345.1 732,819.0 103,879.9 73,545.7 64,580.6 433,009.5 4,251.1 2008/09 90,504.2 36,349.3 24,278.1 33,469.0 641,508.0 108,046.9 84,279.6 87,896.5 1,731,465.1 1,794.6 2009/10 238,737.5 37,964.1 33,454.5 28,208.1 836,745.9 141,184.6 204,618.5 194,059.8 1,567,321.8 1,428.2 2010/11 57,452.1 38,370.2 31,669.4 25,489.8 772,360.7 231,077.7 133,737.9 64,156.8 438,137.4 1,134.6 2011/12 89,205.8 46,129.4 37,796.9 45,244.9 904,607.4 151,778.3 241,940.5 76,974.4 1,679,919.7 917.4 2012/13 94,055.2 41,858.8 36,103.1 56,403.7 992,746.4 207,980.6 177,514.2 89,945.7 1,252,139.3 1,102.4 2013/14 113,120.3 66,313.0 41,513.8 188,603.6 1,392,828.4 367,372.0 186,099.4 173,869.1 735,463.4 533.9 2014/15 96,423.9 81,769.5 110,349.1 215,500.2 1,646,691.0 288,534.3 211,528.3 230,648.1 258,852.9 503.6 2015/16 120,939.2 535,911.0 511,001.1 1,450,218.2 11,290,987.4 2,226,215.5 1,435,282.4 1,341,928.8 3,281,134.3 3,618.7 2016/17 122,068.3 105,571.3 51,937.5 332,152.8 1,817,012.2 331,153.8 351,494.6 127,280.9 341,047.4 280.1 2017/18 89,634.4 88,081.1 50,756.5 232,072.1 1,381,381.2 255,910.3 204,680.5 119,953.9 640,192.1 264.5 2018/19 105,345.9 140,618.8 45,285.6 194,706.0 1,695,672.5 234,828.2 159,140.1 131,509.1 538,413.5 280.4 2019/20 138,210.5 120,255.0 27,295.3 161,693.5 1,743,124.7 223,926.9 83,162.6 122,689.1 738,036.9 430.6 2020/21 153,513.0 127,478.8 26,875.7 99,087.8 1,402,145.2 183,969.3 28,862.0 94,220.0 2,012,278.3 232.3 2021/22 82,589.9 122,823.2 20,255.8 100,373.4 983,740.9 157,420.5 15,175.1 64,307.6 1,474,052.7 268.6 2022/23 302,429.9 141,777.2 20,166.1 118,727.9 2,302,735.4 200,412.5 22,394.0 74,685.7 637,963.3 452.9

• Included in "Food & Live Animals". Source: Ethiopian Customs Commission Table 10: Volume of Major Imports (in Metric Tones)

(In Millions of Birr) 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 (2007) (2008) (2009) (2010) (2011) (2012) (2013) (2014) (2015) RAW MATERIALS 3,426.40 3,147.26 2,809.23 3,617.87 4,233.32 5,070.88 5,400.91 5,577.02 5,752.90 SEMI-FINISHED GOODS 51,856.36 61,207.76 58,840.49 65,669.07 78,116.49 97,796.04 105,406.69 184,980.29 173,829.41 Chemicals 6,398.19 7,389.96 7,524.19 8,910.53 10,858.90 16,743.30 18,890.76 24,699.48 27,517.04 Fertilizers 10,163.58 9,167.59 8,354.88 13,001.60 14,219.85 19,517.00 28,031.17 70,195.28 49,289.35 Textile Materials 1,311.24 1,335.60 1,580.89 1,589.57 2,276.95 3,485.51 5,359.73 9,507.58 10,364.29 Others 33,983.34 43,314.60 41,380.52 42,167.37 50,760.78 58,050.24 53,125.03 80,577.94 86,658.73 FUEL 40,943.09 28,246.34 40,940.19 61,013.95 72,941.90 64,685.48 76,625.78 169,859.55 211,126.40 Crude Petroleum 0.20 0.11 3.73 1.80 0.88 1.96 10.32 7.18 7.64 Petroleum Products 39,822.54 27,005.49 39,143.28 58,613.99 69,942.60 62,056.89 72,597.46 165,014.81 203,796.30 Others 1,120.35 1,240.74 1,793.18 2,398.17 2,998.41 2,626.62 4,017.99 4,837.57 7,322.46 CAPITAL GOODS 138,421.22 143,943.46 135,285.20 136,684.08 140,570.41 128,229.80 151,669.63 148,132.94 202,143.52 Transport 34,176.24 32,362.86 32,005.58 29,339.13 39,817.70 12,249.42 13,690.16 15,688.20 38,728.67 Tyres for Heavy Vehicle 2,741.61 2,818.81 3,186.58 2,628.97 3,172.73 4,191.33 4,299.83 4,394.44 4,354.59 Heavy Road Motor Vehicle 19,986.57 20,520.03 22,400.17 18,666.44 11,441.56 5,652.14 2,954.13 4,175.33 25,107.09 Aircraft 3,826.27 3,462.96 3,362.78 7,529.52 24,229.19 2,033.72 5,328.32 6,624.19 8,685.05 Others 7,621.78 5,561.06 3,056.05 514.20 974.22 372.22 1,107.88 494.24 581.94 Agricultural 1,444.71 1,761.37 1,691.39 1,343.02 1,616.02 2,745.65 3,422.46 2,678.25 4,987.84 Industrial 102,800.27 109,819.23 101,588.23 106,001.93 99,136.69 113,234.74 134,557.01 129,766.49 158,427.01 CONSUMER GOODS 90,614.30 111,228.72 109,625.01 122,572.11 119,758.04 124,714.69 213,380.89 368,192.64 314,095.72 Consumer Durables 32,305.54 33,062.24 38,146.76 35,022.62 33,670.41 28,525.81 31,313.80 39,701.10 77,073.09 Radio & Television 3,008.95 3,069.50 9,556.66 2,836.57 3,417.15 1,947.48 2,061.47 2,348.43 6,094.82 Tyres, Cars & Other Veh. 1,258.24 1,211.53 1,435.07 1,624.56 1,511.83 1,596.76 1,477.42 2,202.90 2,321.72 Cars & Other Vehicles 7,305.98 9,342.33 9,917.73 12,001.85 9,999.35 3,455.56 812.32 852.77 34,113.23 Others 20,732.38 19,438.89 17,237.31 18,559.64 18,742.09 21,526.01 26,962.59 34,296.99 34,543.31 Consumer Non- Durables 58,308.75 78,166.48 71,478.24 87,549.49 86,087.63 96,188.88 182,067.09 328,491.55 237,022.64 Cereals 12,065.34 21,856.74 12,363.68 20,043.62 16,734.20 26,055.01 53,253.48 105,138.02 55,245.36 Other Food 8,988.00 13,252.27 13,007.05 16,254.14 15,642.11 16,738.49 32,012.30 68,806.45 56,686.47 Medical & Pharmaceutical 11,823.44 13,636.15 15,028.19 14,814.52 21,133.74 21,356.68 26,642.51 38,536.00 36,071.23 Textile Fabrics 11,523.90 13,056.13 12,979.33 14,797.76 11,089.57 12,300.45 18,599.28 16,603.16 22,416.79 Others 13,908.07 16,365.19 18,099.98 21,639.45 21,488.01 19,738.25 51,559.52 99,407.91 66,602.79 MISCELLANEOUS 5,677.60 5,243.09 6,771.02 7,558.39 7,773.99 11,692.47 6,857.24 7,277.05 6,035.74 TOTAL IMPORTS 330,938.95 353,016.62 354,271.13 397,115.47 423,394.15 432,189.35 559,341.15 884,019.49 912,983.69 Source: Ethiopian Customs Commission Table 11: Value of Imports, By End Use

Table 12: Value of Imports, By Country of Origin (Thousands of Birr) 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2008 2009 2010 2011 2012 2013 2014 2015 Djibouti 25.5 54.6 7,505.5 269,451.0 1,226,326.3 5,657,336.4 20,613,926.2 24,598,623.6 Kenya 704,623.9 775,026.6 883,937.3 1,139,053.5 2,682,248.7 2,237,418.7 5,292,979.2 5,994,083.8 Sudan 885,021.3 2,697,548.6 2,500,770.0 2,303,862.7 2,295,903.2 1,107,245.5 176,219.6 220,345.5 U.A.E 9,676,619.7 8,283,685.2 14,283,917.6 15,436,918.6 17,282,832.8 36,910,293.4 60,220,789.4 76,635,417.1 France 4,176,288.1 4,505,121.3 4,756,805.0 4,355,547.8 8,257,770.3 7,481,685.2 6,609,334.3 8,948,029.7 Germany 7,849,773.2 5,711,671.2 7,256,006.1 9,018,930.8 9,208,171.1 8,345,258.5 8,779,107.1 8,611,306.9 Italy 13,340,823.0 15,518,259.6 13,370,601.9 9,585,488.8 8,191,163.0 13,317,722.6 9,137,982.9 10,925,653.4 Netherlands 4,140,318.9 4,540,832.5 6,172,113.2 5,203,113.3 4,678,959.5 3,780,241.5 7,141,614.2 5,542,764.6 U.K. 4,277,114.5 3,750,299.2 5,981,832.7 9,114,791.7 9,216,314.9 11,152,568.7 6,097,132.3 10,588,592.9 Russia 3,983,984.5 947,736.5 2,472,934.4 3,422,604.1 2,116,402.5 4,712,302.7 6,054,250.0 1,830,694.9 Yugoslavia 0.0 0.3 0.0 U.S.A. 26,691,945.0 22,894,078.3 31,244,388.2 38,161,945.4 33,114,719.7 38,100,962.8 48,138,146.4 56,476,065.0 China, P. Rep. 117,251,124.0 114,932,245.7 100,864,789.1 109,790,427.2 112,353,466.1 126,418,108.2 162,302,544.7 191,663,400.4 Japan 14,792,746.8 15,545,024.5 13,546,649.0 10,523,030.1 5,490,339.1 4,139,127.9 3,480,925.1 4,825,674.9 Saudi Arabia 7,964,804.7 10,728,630.6 9,089,126.5 6,854,464.4 14,250,180.6 19,549,678.9 57,856,736.4 77,470,351.8 Rest of the World 137,281,406 143,440,920 184,684,091 198,214,521 201,824,554 276,431,194 482,117,802 428,652,684 Total Import 353,016,618.9 354,271,134.9 397,115,467.6 423,394,150.7 432,189,352.0 559,341,145.1 884,019,489.6 912,983,688.2 Source: Ethiopian Customs Commission Countries

Table 13: Values of Export by Destination* (In Thousand of Birr) 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 (2005) (2006) (2007) (2008) (2009) (2010) (2011) (2012) (2013) (2014) (2015) Djibouti 2,237,358.7 3,657,884.1 1,594,047.2 2,205,921.5 2,283,064.5 3,312,767.9 3,572,337.4 3,702,736.4 4,497,508.4 6,856,655.5 8,046,821.4 Kenya 190,937.6 383,109.9 586,440.4 618,827.4 1,186,102.0 1,057,668.8 566,102.0 439,609.0 1,616,543.8 814,696.3 3,292,880.6 Sudan 1,675,096.7 1,550,096.2 1,649,715.5 1,333,607.7 983,314.5 2,690,709.5 1,945,939.4 2,168,104.2 3,168,442.1 3,966,853.8 4,023,359.7 U.A.E 1,434,079.8 1,505,223.0 1,968,395.0 1,663,203.4 2,694,755.9 2,890,041.4 3,660,308.4 3,936,157.3 7,145,156.7 9,434,813.3 10,581,684.4 France 602,489.7 685,632.9 721,352.6 679,965.7 827,504.6 815,455.0 556,438.0 890,052.7 2,181,537.6 1,930,292.1 1,886,179.1 Germany 4,200,733.7 3,578,887.9 4,206,156.1 3,374,501.1 3,943,246.8 4,729,675.7 3,117,963.9 5,026,821.2 5,745,974.7 13,556,632.4 10,792,625.7 Italy 1,185,007.4 1,193,640.4 1,089,194.7 966,200.8 1,347,709.3 1,485,535.5 1,195,539.3 1,401,024.7 2,839,821.4 3,960,106.4 3,704,728.0 Netherlands 3,029,773.3 3,733,608.0 3,590,928.2 3,705,135.6 4,177,990.4 5,001,313.7 5,843,402.3 9,670,552.9 10,695,072.7 18,888,943.7 21,196,233.9 U.K. 859,631.5 1,034,640.7 701,778.1 807,237.0 1,290,346.0 1,158,597.9 1,158,806.1 1,052,198.4 2,357,712.9 2,726,446.9 3,758,186.7 Russia 215,319.3 382,322.7 305,928.6 332,653.0 386,108.6 471,864.5 344,778.3 369,994.7 1,891,810.4 729,040.5 889,009.7 Yugoslavia 0.0 45,939.9 0.0 U.S.A. 2,055,429.7 2,528,824.6 3,516,765.2 3,284,622.6 4,317,231.5 6,053,876.5 5,308,192.0 5,031,320.4 8,495,485.6 17,565,965.5 16,895,318.4 China, P.Rep. 4,660,201.6 7,588,195.4 7,378,001.3 6,643,602.4 5,111,009.8 6,301,806.7 3,985,339.1 2,500,656.6 3,731,565.0 5,219,670.4 5,677,015.0 Japan 1,617,076.4 1,304,904.4 1,965,574.6 1,212,783.4 2,233,317.5 2,377,676.8 3,335,760.7 3,431,247.0 3,495,238.4 7,440,192.5 5,950,701.4 Saudi Arabia 2,754,839.5 3,516,770.4 4,039,151.9 3,642,647.6 4,400,225.0 4,971,483.0 5,022,828.1 6,349,911.2 7,463,486.1 13,454,223.6 17,313,019.1 Rest of the World 29,405,616.7 29,599,272.5 26,546,929.3 29,421,718.0 28,503,817.8 30,893,009.8 35,318,688.1 48,394,751.6 76,376,053.7 93,064,511.3 78,851,285.5 Total Export 56,123,591.7 62,243,013.1 59,860,358.7 59,938,567.0 63,685,744.1 74,211,482.8 74,932,423.0 94,365,138.3 141,701,409.6 199,609,044.4 192,859,048.4

• Export value of gold is not included in this table for the years before 2003/04 Source: Ethiopian Customs Commission Countries

Table 14: Trade Balance with Major Trading Partners 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 (2008) (2009) (2010) (2011) (2012) (2013) (2014) (2015) Djibouti 2,205,895.91 2,283,009.94 3,305,262.37 3,302,886.37 2,476,410.09 - 1,159,828.00 - 13,757,270.62 - 16,551,802.25 Kenya - 85,796.43 411,075.40 173,731.42 - 572,951.51 - 2,242,639.74 - 620,874.88 - 4,478,282.86 - 2,701,203.26 Sudan 448,586.45 - 1,714,234.10 189,939.59 - 357,923.38 - 127,799.00 2,061,196.66 3,790,634.17 3,803,014.22 U.A.E - 8,013,416.29 - 5,588,929.30 - 11,393,876.20 - 11,776,610.13 - 13,346,675.45 - 29,765,136.69 - 50,785,976.13 - 66,053,732.73 France - 3,496,322.40 - 3,677,616.68 - 3,941,350.04 - 3,799,109.79 - 7,367,717.62 - 5,300,147.55 - 4,679,042.19 - 7,061,850.62 Germany - 4,475,272.13 - 1,768,424.37 - 2,526,330.43 - 5,900,966.85 - 4,181,349.91 - 2,599,283.75 4,777,525.29 2,181,318.80 Italy - 12,374,622.20 - 14,170,550.33 - 11,885,066.35 - 8,389,949.56 - 6,790,138.34 - 10,477,901.21 - 5,177,876.51 - 7,220,925.46 Netherlands - 435,183.35 - 362,842.14 - 1,170,799.45 640,289.00 4,991,593.40 6,914,831.20 11,747,329.49 15,653,469.31 U.K. - 3,469,877.49 - 2,459,953.18 - 4,823,234.75 - 7,955,985.63 - 8,164,116.46 - 8,794,855.85 - 3,370,685.36 - 6,830,406.26 Russia - 3,651,331.50 - 561,627.87 - 2,001,069.82 - 3,077,825.86 - 1,746,407.72 - 2,820,492.31 - 5,325,209.50 - 941,685.29 Yugoslavia 45,939.89 - 0.26 - 0.00 - - - - - U.S.A. - 23,407,322.41 - 18,576,846.83 - 25,190,511.74 - 32,853,753.41 - 28,083,399.33 - 29,605,477.20 - 30,572,180.84 - 39,580,746.64 China, P.Rep. - 110,607,521.54 - 109,821,235.92 - 94,562,982.35 - 105,805,088.06 - 109,852,809.46 - 122,686,543.20 - 157,082,874.30 - 185,986,385.48 Japan - 13,579,963.40 - 13,311,707.06 - 11,168,972.25 - 7,187,269.43 - 2,059,092.16 - 643,889.53 3,959,267.41 1,125,026.50 Saudi Arabia - 4,322,157.13 - 6,328,405.58 - 4,117,643.49 - 1,831,636.29 - 7,900,269.49 - 12,086,192.84 - 44,402,512.79 - 60,157,332.66 Rest of the World - 107,859,687.90 - 114,937,102.51 - 153,791,081.32 - 162,895,833.11 - 153,429,802.60 - 200,055,140.29 - 389,053,290.44 - 349,801,398.03 OverallTrade Balance - 293,078,051.94 - 290,585,390.79 - 322,903,984.82 - 348,461,727.63 - 337,824,213.76 - 417,639,735.45 - 684,410,445.18 - 720,124,639.83 Source: Ethiopian Customs Commission Trading Country (Thousands of Birr)

(In Millions of Birr) Currency outside Banks Net Demand Deposit Narrow Money Quasi Money Broad Money 1 2 3=1+2 4 5=3+4 1997/98 4,716.8 6,377.2 11,094.0 7,549.3 18,643.3 1998/99 5,196.4 6,182.5 11,378.9 8,020.5 19,399.4 1999/00 5,914.3 7,136.0 13,050.3 9,127.5 22,177.8 2000/01 5,911.8 7,834.0 13,745.8 10,770.4 24,516.2 2001/02 5,461.9 8,690.6 14,152.5 12,139.5 26,292.1 2002/03 6,582.0 8,834.8 15,416.8 13,643.4 29,060.2 2003/04 7,843.9 10,192.1 18,036.0 15,590.0 33,626.0 2004/05 10,026.0 11,265.1 21,291.1 18,920.7 40,211.7 2005/06 11,422.9 12,389.0 23,811.9 22,565.5 46,377.4 2006/07 13,708.4 15,909.3 29,617.7 27,034.2 56,651.9 2007/08 17,654.1 17,696.3 35,350.4 32,831.8 68,182.1 2008/09 19,715.0 22,397.6 42,112.7 40,397.1 82,509.8 2009/10 24,206.8 28,227.8 52,434.6 51,997.8 104,432.4 2010/11 32,574.9 43,596.1 76,171.0 69,206.0 145,377.0 2011/12 38,537.1 56,312.7 94,849.9 94,548.9 189,398.8 2012/13 45,671.0 69,074.7 114,745.7 120,567.9 235,313.6 2013/14 53,161.4 80,887.8 134,049.2 163,682.8 297,732.0 2014/15 60,460.9 94,245.4 154,706.3 216,622.6 371,328.9 2015/16 66,686.2 111,923.5 178,609.7 266,656.6 445,266.3 2016/17 73,917.7 142,851.9 216,769.6 356,614.4 573,384.1 2017/18 86,417.3 194,737.4 281,154.7 459,418.2 740,572.9 2018/19 92,017.0 216,920.2 308,937.1 577,815.4 886,752.5 2019/20 109,071.8 251,513.7 360,585.5 677,060.8 1,037,646.3 2020/21 133,621.3 303,770.7 437,392.0 910,874.2 1,348,266.1 2021/22 173,382.8 414,633.0 588,015.8 1,127,294.2 1,715,310.0 2022/23 211,636.8 494,505.4 706,142.2 1,464,706.2 2,170,848.4 Source: National Bank of Ethiopia Table 15: Components of Broad Money End of period

Table 16: Domestic Credit በy Sector (In Millions of Birr) Claims on Central Gov't 1=2+5 2=3+4 3 4 5=6to9 6* 7 8 9 1996/97 19,803.4 10,975.8 8,838.9 2,136.9 8,827.6 8,822.5 - 5.1 - 1997/98 22,050.8 12,032.4 9,819.3 2,213.1 10,018.4 10,015.4 - 3.0 - 1998/99 23,942.7 13,053.8 10,562.2 2,491.6 10,888.9 10,883.2 - 5.7 - 1999/00 31,283.7 19,423.4 16,533.1 2,890.3 11,860.3 11,852.1 - 8.2 - 2000/01 34,035.1 21,357.4 14,342.5 7,014.9 12,677.7 12,667.6 - 10.1 - 2001/02 28,099.0 15,985.1 8,986.7 6,998.4 12,113.9 12,082.4 - 31.5 - 2002/03 28,689.4 17,229.8 9,387.6 7,842.2 11,459.7 11,417.1 - 42.6 - 2003/04 31,653.0 19,199.2 9,389.2 9,809.9 12,453.8 12,245.1 - 208.7 - 2004/05 40,873.5 21,673.8 19,540.0 2,133.9 19,199.7 15,927.0 - 3,272.7 - 2005/06 49,298.6 25,266.4 19,095.7 6,170.6 24,032.2 19,431.1 - 4,601.1 - 2006/07 61,846.9 30,337.6 24,855.6 5,482.1 31,509.2 23,493.8 - 8,015.5 - 2007/08 78,475.1 33,075.7 35,405.8 (2,330.1) 45,399.4 33,600.6 - 11,798.8 - 2008/09 89,205.9 32,786.5 37,827.2 (5,040.7) 56,419.4 38,802.0 - 17,617.4 - 2009/10 104,416.2 33,013.1 39,340.3 (6,327.2) 71,403.1 47,603.6 - 23,799.5 - 2010/11 135,558.6 28,651.7 45,323.7 (16,672.1) 106,906.9 61,871.3 - 38,785.6 6,250.0 2011/12 189,122.1 21,557.4 45,344.1 (23,786.7) 167,564.6 94,617.0 - 60,445.6 12,502.0 2012/13 233,406.4 21,965.5 55,377.3 (33,411.8) 211,440.8 114,384.6 - 80,549.2 16,507.0 2013/14 299,729.6 26,630.8 64,211.9 (37,581.2) 273,098.9 141,975.8 - 110,866.0 20,257.0 2014/15 393,439.8 30,735.3 77,076.8 (46,341.6) 362,704.5 185,501.9 - 153,845.6 23,357.0 2015/16 490,230.4 47,524.4 95,038.1 (47,513.7) 442,706.0 226,849.2 - 190,249.8 25,607.0 2016/17 631,092.8 85,441.8 120,891.0 (35,449.2) 545,650.9 283,835.2 - 234,589.8 27,226.0 2017/18 784,621.8 102,002.8 140,206.9 (38,204.0) 682,618.9 346,302.9 - 289,023.3 47,292.7 2018/19 963,699.9 109,799.2 172,171.4 (62,372.2) 853,900.7 443,362.2 - 358,395.8 52,142.7 2019/20 1,302,948.3 137,082.9 195,711.0 (58,628.1) 1,165,865.4 588,391.2 - 519,331.4 58,142.7 2020/21 1,659,218.4 214,275.2 245,019.2 (30,744.0) 1,444,943.3 778,613.2 - 609,687.4 56,642.7 2021/22 2,195,732.5 422,864.0 326,216.3 96,647.7 1,772,868.5 996,662.2 - 731,383.6 44,822.7 2022/23 2,711,304.0 573,675.7 521,300.0 52,375.7 2,137,628.3 1,293,479.3 - 799,326.4 44,822.7

• Includes Claims on Other Financial Institutions Source: National Bank of Ethiopia Invest￾ments End of Period Claims on Non-Central Gov't Priority sec. loan to DBE Gross Grand Total Total National Bank Comm. Banks Total Loans & Advances Bills Disc.

(In Millions of Birr) 1=2+6 2=3to5 3 4 5 6 7=8+9 8 9 10=11+12 11=2-9 12=6-8 1997/98 8,843.6 3,105.7 2.5 3,036.8 66.4 5,737.9 3,012.6 2,072.5 940.1 5,831.0 2,165.6 3,665.4 1998/99 8,839.9 3,588.8 2.8 3,508.9 77.1 5,251.1 2,752.1 1,685.1 1,067.0 6,087.8 2,521.8 3,566.0 1999/00 7,814.5 2,921.7 2.8 2,840.5 78.4 4,892.8 3,043.9 2,089.5 954.4 4,770.6 1,967.3 2,803.3 2000/01 7,829.5 2,907.8 2.9 2,829.6 75.3 4,921.7 3,029.5 1,815.4 1,214.1 4,800.0 1,693.7 3,106.3 2001/02 11,470.7 5,743.6 2.9 5,660.0 80.7 5,727.1 3,648.3 1,703.3 1,945.0 7,822.4 3,798.6 4,023.8 2002/03 14,427.2 7,988.2 2.9 7,899.3 86.0 6,439.0 3,378.1 1,674.7 1,703.4 11,049.1 6,284.8 4,764.3 2003/04 17,449.8 11,307.3 2.5 11,213.3 91.6 6,142.5 4,452.0 1,889.5 2,562.4 12,997.8 8,744.9 4,253.0 2004/05 19,963.5 13,704.9 57.0 13,556.5 91.3 6,258.6 6,095.5 1,979.8 4,115.7 13,868.0 9,589.2 4,278.8 2005/06 16,759.0 10,071.7 89.2 9,889.6 92.8 6,687.3 4,649.5 1,735.8 2,913.6 12,109.6 7,158.0 4,951.5 2006/07 19,514.9 11,977.3 429.3 11,448.5 99.5 7,537.7 6,174.6 1,986.3 4,188.3 13,340.4 7,789.0 5,551.4 2007/08 16,735.5 8,708.7 5.5 8,589.2 114.0 8,026.8 5,069.9 2,301.9 2,768.0 11,665.6 5,940.7 5,725.0 2008/09 26,434.3 17,214.6 18.2 17,069.0 127.5 9,219.7 8,457.5 3,076.5 5,380.9 17,976.8 11,833.7 6,143.1 2009/10 42,350.1 27,289.3 443.3 26,700.3 145.7 15,060.8 15,160.3 3,254.3 11,906.0 27,189.8 15,383.3 11,806.5 2010/11 79,945.5 51,551.4 1,395.2 49,960.5 195.7 28,394.2 24,410.9 5,715.5 18,695.4 55,534.7 32,856.0 22,678.7 2011/12 64,119.0 40,101.4 2,038.1 37,868.1 195.3 24,017.6 26,738.5 5,484.2 21,254.3 37,380.5 18,847.1 18,533.4 2012/13 72,658.1 44,140.0 2,253.2 41,685.1 201.8 28,518.1 27,009.6 7,515.2 19,494.4 45,648.5 24,645.6 21,002.9 2013/14 77,878.0 50,624.5 1,217.6 49,188.5 218.4 27,253.5 31,905.7 7,995.1 23,910.6 45,972.3 26,713.9 19,258.4 2014/15 82,741.8 66,817.7 79.3 66,423.1 315.3 15,924.1 45,170.9 8,326.6 36,844.3 37,570.9 29,973.4 7,597.6 2015/16 95,055.0 74,156.7 1,113.9 72,711.3 331.5 20,898.2 73,530.8 9,880.5 63,650.3 21,524.2 10,506.4 11,017.7 2016/17 98,750.8 73,874.3 741.3 72,783.6 349.4 24,876.5 60,716.1 10,818.8 49,897.3 38,034.8 23,977.0 14,057.7 2017/18 102,738.9 77,617.4 750.5 76,448.4 418.4 25,121.5 63,362.7 14,504.8 48,858.0 39,376.2 28,759.4 10,616.8 2018/19 127,270.4 98,726.6 804.9 97,484.0 437.8 28,543.8 112,765.3 18,006.4 94,758.9 14,505.2 3,967.8 10,537.4 2019/20 147,202.9 112,086.4 3,280.6 108,280.4 525.4 35,116.5 155,524.2 24,578.2 130,946.0 -8,321.3 -18,859.6 10,538.3 2020/21 202,804.8 125,859.7 628.2 124,551.3 680.2 76,945.1 203,617.1 33,850.4 169,766.7 -812.3 -43,907.0 43,094.7 2021/22 143,751.3 79,819.6 2,065.3 76,997.2 757.1 63,931.7 255,178.9 41,140.6 214,038.3 -111,427.5 -134,218.7 22,791.1 2022/23 130,367.5 56,154.3 129.2 55,230.1 795.0 74,213.2 290,465.2 42,887.7 247,577.5 -160,097.7 -191,423.1 31,325.5 Source: National Bank of Ethiopia (NBE) Reserve Tranche NBE Comm. Banks Table 17: Gold & Foreign Exchange Holdings of the National Bank of Ethiopia and Commercial Banks CBs' Foreign Exchange Total Liab. Comm. Banks NBE Total End of Fiscal Year Gross Gold and Foreign Exchange Holdings National Bank of Ethiopia International Reserves Foreign Liabilities Net Gold & Foreign Exchange Gross Total NBE Total Gold Foreign Exchange

Table 18: Treasury Bills Auction Results Bank Non-bank Total Bank Non-bank Total Bank Non-bank Total 1997/98 5086.0 98.0 116.0 214.0 2386.7 3705.3 6092.0 1521.6 3033.9 4555.5 3.714 1998/99 13435.5 88.0 193.0 282.0 6231.3 6986.2 13217.5 5261.2 6333.0 11594.2 3.650 1999/00 16147.0 110.0 162.0 272.0 10772.3 7550.5 18322.8 7954.4 5356.8 13311.2 3.262 2000/01 12100.0 133.0 208.0 346.0 10361.0 7844.0 18205.0 5087.7 4235.3 9322.9 2.829 2001/02 16625.0 152.0 166.0 326.0 18632.6 6216.0 26089.1 12176.4 3996.8 16453.2 1.982 2002/03 29818.0 174.0 122.0 296.0 33488.0 5341.8 38829.8 26987.6 2830.4 29818.0 1.311 2003/04 51645.0 152.0 120.0 272.0 56481.0 4960.0 61441.0 47921.8 3710.2 51632.0 1.023 2004/05 41262.5 175.0 94.0 269.0 49658.5 7237.7 56896.2 37783.9 3281.1 41065.0 0.243 2005/06 47793.5 142.0 45.0 187.0 56687.5 3916.0 60603.5 44465.6 3327.9 47793.5 0.038 2006/07 69487.0 99.0 68.0 167.0 71259.0 7663.0 78922.0 58599.6 6715.4 65315.0 0.493 2007/08 48889.0 92.0 88.0 180.0 46761.0 13127.5 59888.5 35613.0 12103.5 47716.5 0.674 2008/09 28471.9 83.0 178.0 261.0 21974.5 24792.7 46767.2 2672.0 25167.8 27839.8 0.520 2009/10 55203.3 82 198 280 23386.9 27871.2 51258.1 13902.0 27834.5 41736.5 0.652 2010/11 83390.7 65 155 220 23715.3 32044.8 55760.0 20271.3 32044.8 52316.0 1.305 2011/12 96511.9 202 204 406 26712.7 50482.1 77194.8 24212.7 50482.1 74694.8 1.944 2012/13 107484.5 394 210 604 51493.5 62185.7 109184.5 51493.5 62185.7 109184.5 2.203 2013/14 88074.94 226 240 466 31226.00 81608.55 112834.55 16989.0 76933.5 94233.3 1.503 2014/15 100739.4 0.0 248.0 248.0 0.0 136536.8 136536.8 0.0 110593.3 110593.3 1.340 2015/16 145877.4 0.0 217.0 217.0 0.0 161575.2 161575.2 0.0 199200.0 199200.0 1.323 2016/17 204543.2 0.0 200.0 200.0 0.0 225321.2 225321.2 0.0 225321.2 225321.2 1.298 2017/18 286494.2 0.0 192.0 192.0 0.0 323991.2 323991.2 0.0 323991.2 323991.2 1.341 2018/19 397958.2 3.0 189.0 192.0 650.0 421983.5 422633.5 650.0 421983.5 422633.5 1.410 2019/20 231486.9 35.0 128.0 163.0 11143.0 232012.1 243155.1 5980.0 228859.1 234839.1 4.526 2020/21 330673.0 286.0 117.0 403.0 127679.0 157104.6 284783.6 109655.9 129143.7 238799.6 7.977 2021/22 858468.8 412.0 174.0 586.0 365432.3 234046.3 599478.6 357032.3 225236.3 582268.6 9.006 2022/23 1278068.3 414.0 235.0 649.0 287405.1 307826.2 595231.3 268255.1 307826.2 576081.3 9.381 Annual Weighted Period Yield Amount Offered Number of Bidders Amount Demanded (in millions of Birr) Amount Sold (in millions of Birr)

Table 19: Employment Created by Domestic & Foreign Investment Projects Which Have Commenced Operation, by Sector Perm. Empl. Temp. Emp Perm. Empl. Temp. Emp Perm. Empl. Temp. Emp Perm. Empl. Temp. Emp Perm. Empl. Temp. Emp Perm. Empl. Temp. Emp Perm. Empl. Temp. Emp Agriculture, hunting and forestry 6,082 859 259 2428 536 1,862 3 5 27 2 - - - - Construction 3,346 5,232 1664 2738 3,368 1,788 100 168.0 1,837 961 30 24 765 355 Education 89 0 16 23 200 154 2 2.0 - - 17 - 120 40 Electricity, gas, steam and water supply - - 0 250 - - - - - - - - - - Fishing - - - - - - - - - - - - - - Health and social work 20 5 44 220 43 8 6 6 74 23 20 - 66 127 Hotels and restaurants 23 35 97 64 173 75 35 20 391 192 60 80 107 5 Manufacturing 6,016 3,143 123,353 8,070 15,918 5,142 2,858 1,387 6,657 2,116 8,747 1,566 5031 4445 Mining and quarrying 74 299 96 414 35 92 - - - - - - - - Other community, social and personal service activities 37 8 125,002 109 19 12 - - - - - - - - Real estate, renting and business activities 4,989 187 81,347 21,710 2,269 1,303 52 41 1868 2362 1,109 426 625 4,375 Transport, Storage and Communication 28 7 23 28 44 121 0 807 388 3 2 65 32 Wholesale, retail trade & repair service - - 2 0 - - - - 23 66 3 30 - - Others* 8 - 100 160 26 105 34 5 84 22 2,925 1,324 70 52 Grand Total 20,712 9,775 332,003 36,214 22,631 10,541 3,211 1,634 11,768 6,132 12,914 3,452 6,849 9,431 Sector 2009(2016/17) 2010(2017/18) 2011(2018/19) 2012(2019/20) 2013(2020/21) 2014(2021/22) 2015(2022/23)

Table 20: Number and Investment Capital of Domestic & Foreign Investment Projects Which Have Commenced Operation by Sector (In Millions of Birr) No. of Projects Investment Capital No. of Projects Investment Capital No. of Projects Investment Capital No. of Projects Investment Capital No. of Projects Investment Capital No. of Projects Investment Capital Agriculture, hunting and forestry 42 322.8 27 297.7 1 10.5 6 114.5 - - 1 20.0 Construction 344 3,002.1 176 1,745.7 15 135.5 224 1,799.1 47 482.1 14 118.2 Education 7 67.8 6 68 1 2.5 2 13.0 1 20.6 1 1500 Electricity, gas, steam and water supply 1.0 100.0 - - - - - - - - - - Fishing - - - - - - - - - - - - Health and social work 15 276.4 5 25 3 18.0 9 864.1 1 7.0 3 49 Hotels and restaurants 5 57.8 7 39.5 3 307.9 18 5,887.4 1 105.4 2 30 Manufacturing 578 14,494.8 337 4,647.0 42 710.1 242 12,097.0 26 1308.2 59 2766 Mining and quarrying 7 81.0 4 38 - - - - - - - - Other community, social and personal service activities 46 245.8 2 82 - - 1 5.0 - - - - Real estate, renting and business activities 496 7,204.8 404 1909.30534 15 98.3 238 10,426.5 23 130.7 14 56150.9 Transport, Storage and Communication 5 11.4 5 20.0 2 17.9 34 669.2 8 62.5 6 1139.5 Wholesale, retail trade & repair service 1 2.0 - - - - 3 381.5 1 1.7 - - Others* 3 9.5 3 79 2 19.6 8 1,816.1 4 65.7 4 716.7 Grand Total 1,550 25,876.2 976 8,952 84 1,320 785 34,073 112 2,184 104 62490 Sector 2010(2017/18) 2011(2018/19) 2012(2019/20) 2013(2020/21) 2014(2021/22) 2015(2022/23)

Annex 21: Number and Capitalof Domestic & Foreign Investment Projects Which Have Commenced Operation, by Region (In Millions of Birr) No. of Projects Investment Capital No. of Projects Investment Capital No. of Projects Investment Capital No. of Projects Investment Capital No. of Projects Investment Capital No. of Projects Investment Capital Addis Ababa 1,362 19,839.3 681 6,838.4 40 650 711 30,820 64 750.0 35 5010.3 Afar 46 380.0 - - - - - - - - - - Amhara 15 39.7 20 152.5 6 11 41 285.2 1 1.7 - - B.Gumze 1 2.0 - - - - - - - - - - Dire Dawa - - - - - - - - - - - - Gambella - - - - - - - - - - - - Harari - - - - - - - - - - - - Multiregional 59.0 5,217.5 69 1,135 37 645 33 2,967.7 46 1,327 69 57479.7 Oromia - - 157 560.4 - - - - - - SNNPR 1 2.5 - - - - - 1 105.4 - - Somali - - - - - - - - - - - - Tigray 66 395.3 49 265.6 1 15 - - - - - Grand Total 1,550 25,876.3 976 8,951.7 84 1,320 785 34,073 112 2,184 104 62490.0 Sector 2010(2017/18) 2011(2018/19) 2012(2019/20) 2013(2020/21) 2014(2021/22) 2015(2022/23)