Ethiopia Macroeconomic and Social Indicators Annual Report 2023-2024

Ethiopia: Macroeconomic and Social Indicators 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 (2011) (2012) (2013) (2014) (2015) (2016)

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 Arable Land (% of total area) 14.2 14.32 14.41 16.2 16.2 17.3 Agricultural Irrigated Land (% of totalAgricultural area) 4.0 4.7 5 6% 6.20% 6.20% Population Density (person per sq.km)* 109 112 115 123 127 132
2. Social Indicators Population total, in millions (Mid-Year population) 97.6 99.75 101.9 104.1 105.7 108.4 (o/w Urban Poulation, in %) 22.8 28.2 28.2 Working Age Population (In Millions) Urban 13.13 14.03 15.01 16.04 31.1 31.1 Rural 43.06 44.28 45.8 46.6 40.4 40.4 Total 56.19 58.31 60.81 62.64 61.7 61.7 Age Dependency Ratio 69 62 73 Life Expectancy at Birth (Male - Female) 62.4-66.6 62.4-66.7 65.5 69 Crude Birth Rate 27:1000 27:1001 27:1002 27:1003 27:1000 31.8:1000 Crude Death Rate 6:03 6.00 6.:30 6.5 Natural Rate of Population Increase (In %) 2:07 4.6 Total Fertility Rate 3.5chil:W 3.5chil:W 4.6chil:W 4.6chil:W 4.1 4.6 People : Hospital Beds 1,312 2750 2720 2900 3225: 1 bed 3650:1 Bed People : Physician1 10,521:1 9977:1 8448:1 7576 5737 5,843 People : Nurse1 1620:1 1705 1473 1415 983 999 Infant Mortality Rate 53.3:1000 43.3:1000 47:1001 47:1000 34:1000 47:1000 Access to Safe Water (In %) Country Level 76 79.3 58.5 58.76 67.1 69.52 Urban Population 66 66.5 62.95 71.97 75.7 66.62 Rural Population 79 82.7 57.26 59.76 64.5 79.12 Student-Teacher Ratio Primary (1-8) 39 39 34.8 34.6 36.4 35.5 Secondary (9-12) 22.5 24 27.4 27.7 26.6 22.6 Technical & Vocational 13.3 13.3 1:11 1:11 1:18 1:17 Student-School Ratio Primary (1-8) 628 528 512.7 526.6 517.6 513.3 Secondary (9-12) 568 940 1017 1063 1009.6 864.9 Technical & Vocational 246.8:1 246.6:1 177 158 151.5 172.8 Indicators

2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 (2011) (2012) (2013) (2014) (2015) (2016) 3. Macroeconomic Indicators 3.1. Real sector Development2 GDP at Current Market Price (In Mn. Birr) 2,696,223.0 3,374,747 4341387.1 6,157,538 8,722,308 11,752,138 Nominal GDP Growth Rate (In %) 22.4 25.5 28.6 41.8 42.4 35.6 Average Marginal Exchange Rate (Birr per USD) 28.1 31.3 39.0 48.57 53.283 55.96 GDP at Current Market Price (In Mn. USD) 95,951.0 107,673 111271.2 126,783 163,698 210,001 Nominal GDP per Capita (In USD) 2,228.3 1,080 2429.5 1,218 1,549 1,937 Real GDP per Capita (In Birr) 46,148.6 47,632.8 48,650.00 50,359.40 61,918.28 66,448.64 Real GDP per Capita Growth Rate (In %) 140 3 2.1 3.5 23.0 7.3 GDP Deflator (% change) 13.2 18.2 21.8 34.7 32.9 25.5 Real GDP at constant basic price (In Mn. Birr) 1,874,689.3 1,989,587.7 2,114,238.3 2,248,662.8 2,409,921.4 2,603,952.86 Real GDP at constant market price (In Mn. Birr) 1,987,157.5 2,109,180.1 2,228,170.1 2,346,748.0 2,501,498 2,684,525 Real GDP Growth Rate (In %) 9.0 6.1 6.3 6.1 7.2 8.1 Agriculture & Allied Activties(In Billion Birr) 623.8 650.3 686.4 728.4 774.0 827.9 Industrial Sector (In Billion Birr) 526.2 576.9 618.8 649.2 694.2 758.4 Service Sector(In Billion Birr) 745.7 786.8 836.2 899.8 971.3 1,046.1 Agriculture & Allied Activties (% of GDP) 33.3 32.7 32.5 32.4 32.1 31.8 Industrial Sector (% of GDP) 28.1 29.0 29.3 28.9 28.8 29.1 Service Sector (% of GDP) 39.8 39.5 39.6 40 40.3 40.2 Private Consumption Expenditure 1,848,070.0 2,360,896 3,134,994 4,764,429 6,882,737.92 9,422,416 Government Consumption Expenditure 247,362.0 307,769 383,565 453,263 551106.6 650,000 Investment 948,866.0 1,037,685 1,216,585 1,560,325 1,933,863 2,409,022 Exports 213,437.0 239,229 329,634 507,692 575,062 652,779 Imports 561,512.0 571,230 723,391 1,128,171 1,220,461 1,382,079 Resource Balance (348,075.0) -329,096 -394,236 -620,479 -645,400 (729,300) Gross Private Consumption (% of GDP) 68.5 69.96 72 77.4 78.9 80.2 Gross Government Cosumption (% of GDP) 9.2 9.1 8.84 7.4 6.3 5.5 Gross Domestic Fixed Investment (% of GDP) 35.2 30.7 28.02 25.3 22.2 20.5 Resource Balance (% of GDP) (12.9) (9.8) -9.08 -10.1 -7.4 -6.2 3.2. Monetary Indicators Narrow Money Supply (M1) (In Mn. Birr) 308,937.13 360,585.50 437,391.97 588,015.82 706,142.20 822,498.60 Broad Money Supply (M2) (In Mn. Birr) 886,752.53 1,037,646.33 1,348,266.15 1,715,310.03 2,170,848.37 2,477,891.90 Net Foreign Assets (In Mn. Birr) 14,506.19 (8,321.31) (812.32) (111,427.54) (160,097.68) (245,298.39) Reserve Requirement (CBs) 44,861.74 51,952.51 67,732.40 119,022.60 147,931.40 149,916.90 Interest Rate (In %) Minimum Deposit Rate 7 Lending Rate 13.5 14.25 Total Net Domestic Credit (in mn. Birr) 963,699.91 1,176,926.45 1,481,844.43 1,930,621.80 2,444,435.50 2,797,752.10 Government 109,799.21 137,082.91 214,275.16 422,864.02 573,675.72 745,541.10 Other Sectors 853,900.70 1,039,843.53 1,267,569.27 1,507,757.78 1,870,759.78 2,052,211.00 Indicators Continued….

2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 (2011) (2012) (2013) (2014) (2015) (2016) 3.3. Inflation (CPI growth rate)3 Country Level -General inflation 12.60 19.90 20.20 33.80 32.50 26.60 -Food inflation 13.10 23.30 23.20 40.30 31.70 28.10 -Non-Food inflation (core inflation) 11.90 15.80 16.40 25.15 33.90 24.40 Addis Ababa -General inflation 14.6 18.8 19.5 29.8 37.3 31.20 -Food inflation 15 25.9 26.2 36.6 35.5 34.10 -Non-Food inflation (core inflation) 14 13.9 14.4 24.1 39.0 28.60 3.4. External Trade(In Mn.USD) Export of goods & services 7694.9 7715.7 8498.9 10457.7 10855.8 11763.6 Import of goods & services 20704.8 18828.3 19177.0 23845.0 23430.0 25128.0 Net trade in goods & services -13009.9 -11112.6 -10678.0 -13387.3 -12574.2 -13364.4 Current account balance including official transfers -4948.0 -4401.9 -3190.7 -5145.1 -4672.9 -5916.9 Capital account balance 4822.4 4326.5 3785.8 2723.7 3547.3 4128.3 Overall balance of payments -941.6 -833.4 298.7 -2149.8 -752.0 -1347.9 3.5. Government Finance (In Mn .Birr4 ) Total Revenue (including grants) 344,936.5 394,965.8 478,888.1 566,753.6 717,586.7 873,126.5 Total Revenue (excluding grants) 311,317.4 354,312.8 444,582.6 540,060.5 685,459.1 840,094.8 o/w Tax-Revenue 268,457.4 311,476.5 388,763.5 477,770.3 593,232.1 716,172.2 Tax-Revenue as % of GDP 10.0 9.2 9.0 7.8 6.8 6.1 Total Expenditures 413,105.7 488,243.2 599,006.7 779,099.0 938,771.6 1,120,077.3 Current Expenditures 238,156.6 280,667.0 363,596.9 517,043.4 582,854.6 652,619.7 Capital Expenditures 174,949.1 207,576.1 235,409.7 262,055.7 355,917.0 467,457.6 Equity Contribution (Sinking Fund) - - - - - 0 Special Programs - - - - - 0 Total Expenditures as % of GDP 15.4 14.5 13.8 12.7 10.8 9.5 Current Surplus/Deficit 106,779.9 114,298.8 115,291.2 49,710.3 134,732.1 220,506.9 Overall Budget Deficit (including grants) (68,169.2) (93,277.4) (120,118.5) (212,345.4) (221,184.9) (246,950.7) Deficit as % of GDP (2.5) (2.8) (2.8) (3.4) (2.5) (2.1) Overall Budget Deficit (excluding grants) (101,788.3) (133,930.4) (154,424.0) (239,038.5) (253,312.4) (279,982.5) Deficit as % of GDP (3.8) (4.0) (3.6) (3.9) (2.9) (2.4) 3.6. Exchange Rate (Birr/ USD) Inter-Bank Forex Market Rate5

• Period weighted Average 28.0543 31.3427 39.0163 48.5673 53.2830 55.9623

• End period 28.9109 34.9822 43.6910 51.9938 54.5943 57.3265 Indicators Continued….

2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 (2011) (2012) (2013) (2014) (2015) (2016) 3.7. Treasury Bill Market (In Mn. Birr) T-Bills Demanded (Total) 422,633.54 242,155.09 284,783.55 599,478.63 595,231.34 812,892.09 T-Bills Sold 422,633.54 242,155.09 238,799.55 582,268.63 576,081.34 797,797.09 Average Weighted Yield (in %) 1.741 4.808 7.970 9.459 9.70 9.74 T-Bills Outstanding by holder 138,054.36 23,724.00 116,559.95 317,169.59 341,869.53 447,802.85 Banks 650.00 5,604.00 52,040.00 195,432.29 146,568.05 162,259.26 Non-Banks 137,404.36 18,120.00 64,519.95 121,737.30 195,301.48 285,543.59 3.8. Inter Bank Money Market Rate5 3.9. Financial Institutions Number of Commercial Banks 17.00 17.00 18.00 30.00 31.00 32.00 (o/w Private banks) 16.00 16.00 17.00 28.00 29.00 30.00 Number of Bank Branches 5,564.00 6,511.00 7,344.00 8,944.00 11,281.00 12,278.00 Population : Bank Branch 17,732.20 15,702.00 13,921.00 11,516.00 9,514.00 8,918.00 Number of Insurance Companies 17.00 18.00 (o/w Private Insurance Companies) 16.00 17.00 Number of Insurance Branches 568.00 605.00 635.00 690.00 741.00 799.00 Population : Insurance Branch 173,848.00 168,983.00 160,629.92 149,272.50 144,846.00 147,771.93 Number of Development Banks 1.00 Number of Development Bank Branches 107 93 82 83 83 105.00 Number of Micro-financial Institutions 38 39 39 43 47 48.00 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 | 2023/24 Annual Report I. THE OVERALL ECONOMIC PERFORMANCE 1.1. Economic Growth The Ethiopian economy continued to grow with annual average growth rate of 7.9 percent from 2014/15 to 2023/24. During the fiscal year 2023/24, the economy registered 8.1 percent growth compared to 3.6 percent growth forecast for Sub￾Saharan African countries (WEO, October 2024). This growth was attributed to service (38.1 percent), industry (33.1 percent) and agriculture (27.8 percent) sectors. The nominal GDP per capita went up to USD 1,937 in 2023/24 from USD 1,549 in the preceding year, signifying a 25.1 percent annual increase while real per capita GDP marginally rose by 0.3 percent to reach USD 429.2. The Ethiopian economy is projected to grow by 8.4 percent in 2024/25 performance improvement in (MoPD, 2024) compared with 4.2 percent forecast for Sub-Saharan African countries (WEO, October 2024).

2 | 2023/24 Annual Report Table 1.1: Sectoral Contributions to GDP and GDP Growth (In Billions of Birr) Items Year 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 Sector Agriculture 580.4 600.8 623.8 650.3 686.4 728.4 774.0 827.9 Industry 414.7 467.5 526.2 576.9 618.8 649.2 694.2 758.4 Services 619.3 671.8 747.3 786.9 836.2 899.8 971.3 1046.1 Total 1,614.3 1,740.1 1897.4

2,014.1

2,141.5

2,277.5

2,439.5

2,632.4 Less FISIM 17.0 19.8 21.0 24.5 27.2 28.8 29.6 28.4 Real GDP 1,596.5

1,719.5

1,874.7

1,989.6

2,114.2

2,248.7

2,409.9

2,604.0 Growth in Real GDP 10.1 7.7 9.0 6.1 6.3 6.4 7.2 8.1 Per capita GDP (USD) (Nominal) 876 883 985 1,080 1,092 1,218 1,549 1,937 Growth in per capita GDP 7.5 0.9 11.6 9.6 1.1 11.6 27.1 25.1 Mid-year population (in millions) 93.4 95.5 97.6 99.7 101.9 104.1 105.7 108.4 Share in GDP (in %) Agriculture 36.3 34.9 33.3 32.7 32.5 32.4 32.1 31.8 Industry 25.9 27.0 28.1 29.0 29.3 28.9 28.8 29.1 Services 38.8 39.2 39.8 39.5 39.6 40.0 40.3 40.2 Agriculture Real Growth rate 6.7 3.5 3.8 4.3 5.6 6.1 6.3 7.0 Contribution to real GDP growth 2.5 1.3 1.3 1.4 1.8 2.0 2.0 2.2 Growth contribution in percent 24.6 16.4 14.7 22.8 29.0 31.2 28.2 27.8 Industry Real Growth rate 20.6 12.7 12.6 9.6 7.3 4.9 6.9 9.2 Contribution to real GDP growth 4.8 3.3 3.4 2.6 2.1 1.4 2.0 2.7 Growth contribution in percent 47.3 42.5 37.5 42.4 33.6 22.6 27.9 33.1 Services Real Growth rate 7.5 8.5 11.0 5.3 6.3 7.6 7.9 7.7 Contribution to real GDP growth 3.0 3.3 4.3 2.1 2.4 3.0 3.1 3.1 Growth contribution in percent 29.3 42.3 48.2 34.0 39.1 46.7 43.8 38.1 Source: Ministry of Planning and Development (MoPD)

3 | 2023/24 Annual Report 1.2. GDP by Sector The agricultural sector showed moderate growth of 7.0 percent in 2023/24 mainly due to 7.8 percent expansion in crop production which accounted for 66.7 percent of total agricultural production (Table 1.3). The share of agriculture in GDP slightly dropped to 31.8 in 2023/24 from 32.1 percent a year ago (Table 1.1). Likewise, the industrial sector registered 9.2 percent annual growth and contributed 33.1 percent to the overall economic growth. Manufacturing, with an 8.4 percent expansion, contributed about 21.2 percent share to industrial output and 7 percent to real GDP growth during the review period. The construction sector contributed around 23 percent to GDP and 70.1 percent to industrial sector. On the other hand, the service sector had a 40.2 percent share in the overall economy and it registered a 7.7 percent annual growth. Its contribution to the GDP growth was 38.1 percent. Whole sale and retail trade had the larger share; constituting about 14.6 percent of the economy followed by transport & communications (5.9 percent), real estates, renting & business activities (4.7 percent), public administration & defense (3.9 percent), financial intermediation (3.5 percent), hotels & restaurants (2.5 percent), education (1.9 percent) and health & social work (1.4 percent). Fig.I.1: GDP Growth by Major Sectors Source: Ministry of planning and development (MoPD) 0 1 2 3 4 5 6 7 8 9 10 2019/20 2020/21 2021/22 2022/23 2023/24 4.3 5.5 6.1 6.3 7 9.6 7.3 4.9 6.9 9.2 5.3 6.3 7.6 7.9 7.7 6.1 6.3 6.4 7.2 8.1 Agriculture Industry Service Real GDP

4 | 2023/24 Annual Report Table 1.2: Growth and Percentage Distribution of Major Agricultural, Industrial and Service Sub-sectors Sectors 2019/20 2020/21 2021/22 2022/23 2023/24 Growth rate Crop 4.7 5.7 6.9 7.1 7.8 Animal Farming and Hunting 3.3 5.8 4.6 4.4 5.3 Forestry 3.9 4.0 4.3 4.0 4.2 Fishing 2.8 1.7 21.9 38.6 29.6 Share in Agriculture Crop 65.0 65.1 65.6 66.1 66.7 Animal Farming and Hunting 25.9 26.0 25.6 25.2 24.8 Forestry 8.8 8.6 8.5 8.3 8.1 Fishing 0.3 0.2 0.3 0.4 0.4 Growth rate Mining and Quarrying 91.4 115.4 6.1 -7.1 18.4 Manufacturing 7.5 5.1 4.8 7.0 8.4 Electricity and Water 7.2 9.2 6.0 13.2 18.0 Construction 9.9 6.6 4.9 7.1 9.0 Share in Industry Mining and Quarrying 0.9 1.8 1.8 1.6 1.7 Manufacturing 23.9 23.4 23.2 Electricity and Water 2.6 2.7 2.7 2.9 3.1 Construction 72.6 72.2 72.1 Growth rate Whole Sale and Retail Trade 6.4 6.3 7.9 7.6 7.8 Hotels and Restaurants 2.2 2.6 8.0 10.3 9.1 Transport and Communications 1.2 7.0 9.8 12.0 11.4 Real Estate, Renting and Business Activities 9.5 8.9 9.0 9.1 8.8 Public Administration and Defense 2.3 4.9 4.5 4.0 4.9 Others* 6.4 6.2 6.5 6.5 5.3 Share in Service Whole Sale and Retail Trade 36.3 36.3 36.4 36.3 36.3 Hotels and Restaurants 6.3 6.0 6.1 6.2 6.3 Transport and Communications 13.4 13.5 13.8 14.3 14.8 Real Estate, Renting and Business Activities 11.1 11.4 11.5 11.7 11.8 Public Administration and Defense 10.9 10.7 10.4 10.0 9.8 Others* 22.1 22.0 21.8 21.5 21.0 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.

5 | 2023/24 Annual Report 1.3. GDP by Expenditure Components The total consumption expenditure (public and private) as a percent of GDP marginally increased to 85.7 percent in 2023/24 from 85.2 percent in the preceding year. The growth was mainly attributed to 1.3 percentage point rise in private consumption expenditure, despite the 0.8 percentage point decline in government consumption expenditure. On the other hand, gross domestic saving saw a 0.5 percentage point decline and reached 14.3 percent of GDP. Likewise, the ratios of gross capital formation to GDP and government consumption to GDP during the review period dropped by 1.7 and 0.8 percentage points respectively. Similarly, the domestic absorption to GDP ratio declined by 1.2 percentage point vis-à-vis last fiscal year and reached 106.7 percent of GDP.

7 | 2023/24 Annual Report Table: 1.3: 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 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 2023/24 106.2 85.7 5.5

80.2

20.5

(6.2)

5.6

11.8

14.3 Average 2019/20- 2023/24 108.5 83.2 7.4 75.8 25.3 -8.5 7.0 15.5 16.8 Average 2014/15- 2023/24 111.2 80.3 8.9 71.3 31.0 -12.5 7.6 20.1 19.7

8 | 2023/24 Annual Report 1.4: Micro and Small-Scale Enterprises 282,193 new micro and small scale enterprises (MSEs) were established during 2023/24. These enterprises created employment opportunities for about 2.6 million people and acquired about Birr 17 billion in loans for their operations. Table 1.4: 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 2021/22 2022/23 2023/24 No. of MSE's 160,099 208,667 282,193 Amount of credit 9,444.2 10,557 17,029 No of Total employment 2,009,140 4,467,023 2,568,340

9 | 2023/24 Annual Report Table 1.5: Numbers, Amount of Credit and Jobs Created through MSEs by Region (Credit in Millions of Birr) Source: Federal Urban Jobs Creation and Food Security Agency In terms of regional distribution, 62.7 percent of the newly established MSEs were located in Oromia followed by Tigray (10.2 percent), Amhara (10.1 percent), Central Ethiopia region (4.1 percent), South Ethiopia region (3.9 percent), Addis Ababa (2.1 percent), Sidama (1.8 percent), South west Ethiopia (1.7 percent), Somali (1.5 percent) and other regions (1.9 percent). With respect to total loans, SMEs in Oromia received 32.5 percent, Tigray 17.4 percent, Addis Ababa 16.6 percent, Amhara 14.2 percent, Somali 6.8 percent; Dire Dawa 3.8 percent, South Ethiopia region 3.3 percent, Sidama 1.5 percent and other regions 1.6 percent. Of the total jobs created by these enterprises, about 76 percent was in Oromia, 10.9 percent in Amhara, 3.4 percent in southern Ethiopia region, 3 percent in central Ethiopia region, 1.3 percent in Tigray and 1.1 percent in Somali; Addis Ababa and South West Ethiopia region 1 percent each. Addis Ababa Afar Amhara Benishangu l Gumuze Dire Dawa Gambela Sidama Harari Oromia Central Ethiopia South Ethiopia Sidama Somali South West Ethiopia Tigray Total No. of MSEs 5,910 705 28,365 1,543 759 1,638 665 176,921 11,483 11,048 5,119 4,343 4,918 28,776 282,193 Amount of credit 2,829 86 2,421 23 646 10 16 5,543 387 559 252 1,156 140 2,961 17,029 No. of Employ ment created by MSEs 24,983 12,781 279,888 11,775 2,409 4,663 2,528 1,952,570 78,042 87,099 22,700 28,078 26,534 34,290 2,568,340 Regional Percentage Share No. of MSEs 2.1 0.2 10.1 0.5 0.3 0.6 0.2 62.7 4.1 3.9 1.8 1.5 1.7 10.2 100 Amount of credit 16.6 0.5 14.2 0.1 3.8 0.1 0.1 32.5 2.3 3.3 1.5 6.8 0.8 17.4 100 No. of Employ ment created by MSEs 1.0 0.5 10.9 0.5 0.1 0.2 0.1 76.0 3.0 3.4 0.9 1.1 1.0 1.3 100

10 | 2023/24 Annual Report Fig.I.2: Annual Distribution of Numbers of MSEs during 2023/24 5,910 705 28,365 1,543 759 1,638 665 176,921 11,483 11,048 5,119 4,343 4,918 28,776

20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 Source: Federal Urban Jobs Creation and Food Security Agency Fig.I.3: Annual Distribution of Amount of Credit to MSEs during 2023/24 2,829 86 2,421 23 646 10 16 5,543 387 559 252 1,156 140 2,961 0.0 1000.0 2000.0 3000.0 4000.0 5000.0 6000.0 Millions of Birr Source: Federal Urban Jobs Creation and Food Security Agency

11 | 2023/24 Annual Report Fig.I.4: Annual Distribution of Employment Created by MSEs during 2023/24 24,983 12,781 279,888 11,775 2,409 4,663 2,528 1,952,570 78,042 87,099 22,700 28,078 26,534 34,290 0 500000 1000000 1500000 2000000 2500000 Source: Federal Urban Jobs Creation and Food Security Agency 1.5. Access to Water Supply The proportion of population with access to potable water supply improved by 2.4 percentage point to reach 69.5 percent (66.6 percent for rural and 79.1 percent for urban population); relative to 67.1 percent (64.5 percent rural and 75.7 percent urban people) a year ago (Table 1.7). In terms of access to potable water, Oromia registered 87.4 percent followed by Gambella (83.9 percent), Amhara (75.1 percent), Benishangul Gumuz (69.4 percent), Dire Dawa (61 percent), Sidama (60.4 percent), Addis Ababa (57 percent), Afar (54.7 percent), Central Ethiopia (53.4 percent), Southern Ethiopia (52 percent), Somali (47.4 percent), South West Ethiopia (42.8 percent) and Harari (40 percent). Regarding access to potable water in urban areas, Oromia had 89.4 percent share followed by Gambella (75.6 percent), Amhara (75.1 percent), Benshangul Gumuz (72.1 percent), Sidama (66.7 percent), Central Ethiopia region (63.3 percent), Southern Ethiopia region (62 percent), South West Ethiopia (59 percent), Addis Ababa (57 percent), Afar (55.1 percent), Somali (51.4

12 | 2023/24 Annual Report percent), Dire Dawa (45 percent) and Harari (26 percent). In terms of access to potable water in rural areas, Gambella registered the highest (93.2 percent) followed by Dire Dawa (91 percent), Oromia (88.5 percent), Amhara (75.1 percent), Benishangul Gumuz (68.4 percent), Sidama (58.4 percent), Afar (54.2 percent), Harari (53 percent), Central Ethiopia (51 percent), Southern Ethiopia (50 percent), Somali (45.7 percent) and South West Ethiopia (39.7 percent) (Table 1.7). Table 1.6: Percentages of People with Access to Potable Water by Region Regions 2022/23 2023/24 Rural Urban Total Rural Urban Total Change in percentage point A B C D E F D-A E-B F-C Tigray - - - - - - - - - Afar 52.3 62.7 50.8 54.2 55.1 54.7 1.9 -7.6 3.9 Amhara 73.9 72.2 73.6 75.1 1.2 2.9 1.4 Oromia 87.9 88.3 86.7 88.5 89.4 87.4 0.7 1.1 0.7 Somali 41.5 47.9 43.4 45.7 51.4 47.4 4.2 3.5 4.0 B.Gumuz 65.1 62.9 64.6 68.4 72.1 69.4 3.3 9.1 4.8 Gambella 86.2 63.2 76.7 93.2 75.6 83.9 7.0 12.4 7.2 Harari 63 24.0 44.0 53.0 26.0 40.0 -10.0 2.0 -4.0 D. Dawa 78 68 77 91.0 45.0 61.0 13.0 -23.0 -16.0 Sidama 54.26 62.4 55.3 58.4 66.7 60.4 4.1 4.3 5.1 South West Ethiopia 38.7 46.0 39.8 39.7 59.0 42.8 - - - Central Ethiopia - - - 51.0 63.3 53.4 - - - South Ethiopia - - - 50.0 62.0 52.0 - - - AA - 55.0 55.0 - 57.0 57.0 - 2.0 2.0 Total 64.5 75.7 67.1 66.6 79.1 69.5 2.1 3.4 2.4 Source: Ministry of Water, Irrigation and Energy and NBE Staff Computation1

1 This result has been computed based on 2nd water supply inventory

13 | 2023/24 Annual Report Fig.I.5: Access to water supply by Region 2023/24 (in %) Source: Ministry of Water, Irrigation and Energy; and NBE Staff Computation 1.6. Road Sector Development 1.6.1. Road Network Road transport is the dominant and crucial mode of transport in Ethiopia. Hence, road transport network has improved over the last decades which facilitated accessibility and mobility of agricultural and industrial products. In 2023/24, total road network reached 171,176 Km, which depicted a 3.2 percent annual expansion. The country’s total road network consisted of 66,288 Km (38.7 percent) woreda road, 39,891 Km (23.3 percent) urban road, 34,174 Km (20 percent) rural road and 30,823 Km (18 percent) federal road. The Federal roads included 18,754 Km (60.8 percent) asphalt network and 12,069 Km (39.2 percent) gravel road. Total asphalt road accounted for about 11.0 percent of the total road network. 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 Rural Urban Total

14 | 2023/24 Annual Report Table 1.7: Classification of Road Network (Length in km) Federal Road Rural Roads Woreda Roads * Urban Roads Year Asphalt Gravel Total** Paved Coble Unpaved Length Growth rate Length Growth rate Length Growth rate Length Growth rate Length Growth rate 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 NA 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 18,621 11.1 12,144 -0.7 32,859 -17.5 64,567 3.4 1,805 7,206 28,661 165,862 2.4 2023/24 18,754 0.7 12,069 -0.6 34,174 4.0 66,288 2.7 2,448 7,492 29,950 171,176 3.2 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.

15 | 2023/24 Annual Report 1.6.2 Road Density The proper level of road network is assessed by road density as measured by road length per 1,000 persons or by road length per 1,000 km2 . At the end of 2023/24, road density per 1,000 square Km was 149.1 km depicting a 3.2 percent improvement over the previous year. Meanwhile, road density per 1,000 population reached 1.44 km sharing a 2.1 percent annual improvement (Table 1.9). Table 1.8: Road Densities Year Road Density /1000 person Road density /1000 sq. km 2010/11 0.65 48.3 2011/12 0.75 57.3 2012/13 1.00 78.2 2013/14 1.10 90.5 2014/15 1.20 100.4 2015/16 1.23 102.8 2016/17 1.30 109.2 2017/18 1.30 115.2 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 1.41 144.5 2023/24 1.44 149.1 Growth rate 2.13 3.2 Source: Ethiopian Roads Authority

16 | 2023/24 Annual Report 1.6.3 Road Accessibility Annual average distance from all￾weather roads increased by 7.3 percent from 4.1 Km in 2022/23 to 4.4 Km 2023/24. Similarly, the proportion of area more than 5 km from all-weather roads went up to 32 percent from 29.8 percent a year ago (Table 1.10). Regarding, the status of road transport network about 22 percent of the asphalt road and 5 percent of the gravel road were in good condition (Figure I.6) Table 1.9: Road Accessibility Indicator 2022/23 2023/24 Percentage change Proportion of area more than 5Km from all-weather road 29.8 32.0 7.4 Average distance from all-weather roads 4.1 4.4 7.3 Source: Ethiopian Roads Authority Fig.I.6: Status of Roads Source: Ethiopian Roads Authority 0 10 20 30 40 50 60 70 80 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 73 28.5 26 24 22 22 62 13.6 14 5 71 20.1 20.8 22 26.7 25.9 percentage Asphalt Roads in Good Condition Gravel Roads in Goods Condition Total Roads Network in Good Condition

17 | 2023/24 Annual Report 1.6.4 Road Sector Financing During the review period, total investment in road construction and expansion increased by 18.4 percent to Birr 82.5 billion from Birr 69.7 billion a year ago (Table 1.11 and fig.I.7). Investment in Federal road construction and expansion constituted 79.3 percent of the total road investment capital (Birr 65.4 billion), while regional roads accounted for 10.9 percent followed by woreda road (5.3 percent) and urban road (4.4 percent) (Table 1.11) and (Fig.1.7).

18 | 2023/24 Annual Report Table 1.10: Investments in the Road Sector (In millions of Birr) Road type 2022/23 2023/24 Percentage A Share (In %) B change Share (In %) Federal roads 60,966 87.5 65,407 79.3 7.3 Regional road 4,963 7.1 9,025 10.9 81.9 Woreda road 3,512 5.0 4,400 5.3 25.3 Urban road* 217 0.3 3,633 4.4 1,571.1 Total 69,657 100 82,465 100 18.4 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 80000 90000 In Millions of Birr Federal Road Regional Road woreda Road Urban Road Total Investment

19 | 2023/24 Annual Report 1.7. Telecommunication Telecommunication is the prime engine to support the 2020 (E.C.) Ethiopian Digital Transformation Strategy and harness technology to drive economic growth. Expansion of infrastructure development such as telecommunication would have a 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 for improving service quality, expansion of service coverage and enhancing institutional capacity in the telecom sector. As a result, Ethio-telecom has set ambitious targets to enhance customer acquisition, customer satisfaction and provision of quality services to customers. In 2023/24, total number of subscribers reached 78.3 million with a 8.9 percent annual expansion. This was attributed to 8.8 percent increase in mobile voice and 22.8 percent increase in internet & data subscribers. On the other hand, 3.7 percent decline is observed in fixed voice service subscriber. Of the total subscriber, mobile voice accounted for a lion’s share of 75.6 million (96.5 percent) followed by internet & data 1.9 million or 2.5 percent) and fixed voice service (822 thousand or 1 percent) (Table 1.13).

20 | 2023/24 Annual Report Table 1.11: Number of Subscribers (In 000’) Service Type 2022/23 2023/24 Percentage Change Total subscriber 71,922 78,342 8.9 Mobile voice subscriber 69,500 75,594 8.8 Internet and data subscriber 1,569 1,927 22.8 Fixed voice service subscriber 854 822 -3.7 Internet and data user 33,897 41,193 21.5 Mobile voice 69,500 75,594 8.8 Residential 68,478 74,599 8.9 Enterprises 1,020 994 -2.5 Broad band & internet subscriber 1,222 1,535 25.6 Residential 926 1,186 28.1 Enterprises 296 349 17.9 Narrow band data & internet subscriber 347 392 13.0 Residential 0.2 - - Enterprises 347 392 13.0 Fixed voice 854 822 -3.7 Residential 491 464 -5.5 Enterprises 363 357 -1.7 Broad band data & internet user 33,435 40,801 22.0 Broad band data Residential 32,197 40,001 24.2 Broad band data enterprise 1,239 800 -35.4 Narrow data & internet user 461 393 -14.8 Narrow band residential 0.4 - - Narrow band enterprise 461 392 -15.0 Source: Ethio-Telecom Note: Total subscriber base doesn't include internet and data user. The country’s telecommunication penetration rate (telecom density) increased from 66.2 percent in 2022/23 to 71 percent in 2023/24 as a result of improvement in mobile density to 69.6 percent compared to 65.4 percent in the previous year. At the same time, internet and data density rose to 37.4 percent from 31.5 percent a year ago. On the contrary, fixed line density went down to 0.7 per 100 subscribers relative to the 0.8 per 100 subscribers a year ago (Table 1.14).

21 | 2023/24 Annual Report Table 1.12: Telecom Density Tele density/100 Subscribers* 2020/21 2021/22 2022/23 2023/24 Fixed line 0.9 0.8 0.8 0.7 Mobile 52.9 62 65.4 69.6 Total 54.8 62.8 66.2 71.0 Internet and data 24.3 24.8 31.5 37.4 Source: Ethio-Telecom *Tele-density is mobile plus fixed telephone subscribers per 100 inhabitants The income of Ethio-telecom increased 26.2 percent to Birr 95.7 billion in 2023/24 vis-à￾vis Birr 75.8 billion registered a year ago. At same time, its total expenses rose to Birr 57.5 billion depicting a 35.8 percent annual increment. Consequently, Ethio-telecom earned a gross profit of Birr 29.8 billion in 2023/24 that was 3.8 percent higher than the previous year (Table 1.16). Table 1.13: Financial Performance and Asset of Ethio -Telecom (In Billions of Birr) Finance and Asset 2021/22 2022/23 2023/24 Percentage Change A B C C/A

C/B Income 62.2 75.8 95.7

53.8

26.2 Expense 31.9 42.3 57.5 80.3

35.8 Gross Profit 30.3 28.7 29.8 -1.7 3.8 Assets 40.2 143.3 156.2

288.6

9.0 Depreciation 6.4 6.2 8.4

30.6

34.6 Source: Ethio – telecom

22 | 2023/24 Annual Report II. ENERGY PRODUCTION 2.1. Electric Power Generation Ethiopia has a huge potential for renewable electric power generation from hydro, wind, solar and geothermal sources. Hydro remains the predominant energy source though it is vulnerable to the effects of climatic changes. According to the Ethiopian Electric Power (EEP), the country has an estimated hydro-power potential of 45,000 MW, a geothermal (10,000 MW) and wind farm (1.3 million MW). Ethiopia has set an ambition to fully meet the domestic energy demand through renewable energy. To achieve this objective, the government has been implementing various renewable energy projects such as the Grand Ethiopian Renaissance Dam (GERD), wind farms, bio-mass sources, and geothermal plants. In 2023/24, the total amount of electric power generated was about 20.6 billion KWH, about 16.3 percent higher than the previous year. 19.87 billion KWH (96.5 percent) of the electric power was generated from hydropower, 3.3 percent from wind and 0.2 percent from bio-mass sources (Table 2.1). About 684.7 million KWH wind energy was produced from Adama I (51 MW), Adama II (153 MW), Ashegoda (120 MW), and Ayisha II wind farms. In addition, a process was underway to undertake the construction of Ayisha I (300 MW) wind power project. Ethiopia is also identified to possess a promising potential for solar energy due to its geographical location near the equator. In its bid to become a major power exporter and green economy in East Africa, the country has been building several geothermal power plants which are expected to contribute towards enhancing Ethiopia’s economic growth and to its bid to become a carbon-neutral middle income economy.

23 | 2023/24 Annual Report Table 2.1: Electric Power Generation in Inter Connected System (in kilowatts hour) Source 2021/22 2022/23 2023/24 Percentage Change [A] Share (In %) [B] Share (In %) [C] Share (In %) [C/A] [C/B] Hydro Power 14,914,367.2 96.2 17,126,115.6 96.7 19,868,434.9 96.5 33.2 16.0 Thermal Power - - - - - - - Geothermal - - - - - - - Wind 560,562.1 3.6 575,617.1 3.3 684,651.1 3.3 22.1 18.9 Biomass 29,149.8 0.2 6,575.0 0.0 41,123.8 0.2 41.1 525.5 Total 15,504,079.1 100 17,708,307.7 100 20,594,209.8 100 32.8 16.3 Source: Ethiopian Electric Power 2.2. Volume and Value of Petroleum Imports In 2023/24, the Ethiopian Petroleum Enterprise imported about 3.8 million metric tons of petroleum products worth Birr 197.5 billion which was 3.1 percent lower than that of the previous year due to slowdown the combined effect of the reduction in international oil price in import volume. The volume of imported gas oil (accounting for 60.7 percent of total petroleum import) declined by 7.2 percent. On the other hand, the total volume of jet fuel, fuel oil and regular gasoline imports increased. In terms of value import of these petroleum products (fuel oil, jet fuel and regular gasoline) rose while that of gas oil declined (Table 2.2).

24 | 2023/24 Annual Report Table 2.2፡ Volume and Value of Petroleum Imports (Volume in MT and Value in '000 Birr) Petroleum Products 2022/23 2023/24 Volume Value Volume Value Percentage Change A B C D C/A D/B Regular Gasoline (MGR) 706,499.4 37,906,113.5 708,569.7 39,841,056.0 0.3 5.1 Jet Fuel 621,715.4 31,711,252.4 672,561.0 35,283,000.2 8.2 11.3 Fuel Oil 65,442.0 1,885,446.0 69,380.6 2,455,560.3 6.0 30.2 Gas Oil (ADO) 2,546,849.9 132,302,935.2 2,362,773.6 119,875,256.5 -7.2 -9.4 Total 3,940,506.7 203,805,747.0 3,813,284.9 197,454,873.1 -3.2 -3.1 Source: Ethiopian Petroleum Enterprise Fig.II.1: Trends in Volume of Petroleum Imports (In MT) 0 500 1000 1500 2000 2500 3000 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 MGR Jet Fuel Fuel Oil Gas Oil Source: Ethiopian Petroleum Enterprise

25 | 2023/24 Annual Report Fig.II.2: Trends in Value of Petroleum Imports (In ‘000’) 0 20000000 40000000 60000000 80000000 100000000 120000000 140000000 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 MGR Jet Fuel Fuel Oil Gas Oil Source: Ethiopian Petroleum Enterprise Following the lifting up of fuel subsidy, domestic retail prices were adjusted upwards despite the reduction in international oil price. Accordingly, retail prices of regular gasoline rose 27.9 percent followed by gas oil and kerosene (23.6 percent each) and fuel oil (17.6 percent) while jet fuel price declined (7.4 percent) (Table 2.3).

26 | 2023/24 Annual Report Table 2.3: Annual Retail Prices of Petroleum Products in Addis Ababa (Birr/liter) Year Quarter Regular Gasoline (MGR) Fuel Oil Gas Oil Kerosene Jet fuel 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 2023/24 Qtr.1 74.01 120.47 75.75 75.75 68.33 Qtr.2 77.65 123.52 79.75 79.75 70.83 Qtr.3 77.65 123.52 79.75 79.75 70.83 Qtr.4 79.64 125.58 81.08 81.08 70.83 Average 77.24 123.27 79.08 79.08 70.21 Annual percentage change 27.88 17.63 23.60 23.60 -7.44 Source: Ethiopian Petroleum Enterprise Fig.II.3: Trends in Average Fuel Price in Addis Ababa 0 20 40 60 80 100 120 140 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 MGR Fuel Oil Gas Oil Kerosene Jet Fuel Source: Ethiopian Petroleum Enterprise

27 | 2023/24 Annual Report III. PRICE DEVELOPMENTS 3.1. Developmentsin Consumer Price at National Level In 2023/24, the annual average headline inflation rate dropped to 26.6 percent 32.5 percent from a year ago. Food inflation contributed 16.7 percent and non-food inflation 9.9 percent to the annualized average headline inflation. The slowdown was attributed to 3.6 percentage point decline in annual average food inflation and 9.5 percentage point drop in average annual non-food inflation (Table 3.2). The underlying reasons for the fall in food inflation was the decrease in the inflation rate of meat (12.2 percentage points), ‘fish & sea food’ (116.4 percentage points), ‘milk, cheese and egg’ (19.5 percentage points), ‘oils & fats’ (40.4 percentage points), fruits (27.8 percentage points) and non￾alcoholic beverages by (35.3 percentage points) (Table 3.3). Bread & cereals contributed the highest (14.4 percent) to the 28.1 percent annualized average inflation rate. Meanwhile, the decline in annualized average non-food inflation rate was mainly attributed to the fall in inflation rate of ‘clothing and foot wear’ (25.1 percentage points), ‘furniture & household equipment’ (28.8 percentage points), restaurant and hotels (14.6 percentage points) and ‘recreation & culture (49.4 percentage points). ‘Housing, water, electricity, gas & fuels’ were the major absolute contributors (8.9 percent) to the 24.4 percent average annual non-food inflation in 2023/24(Table 3.4). Year-on-year, general inflation declined to 19.9 percent from 29.3 percent a year ago on account of 15.6 percentage points decrease in non-food inflation and 5.2 percentage points in food inflation. Food inflation contributed 13.5 percent and non-food inflation 6.4 percent to its absolute growth (Table 3.1).

28 | 2023/24 Annual Report Table 3.1: National Annual Year-on Year Inflation Rates (in %) Inflations Weight (in %) 2022/23 2023/24 Change (in %age Points) Contribution in % to annual inflation A B B-A Absolute Relative General 100 29.3 19.9 -9.4 19.9 100 Food and Non￾alcoholic Beverages 54 28.0 22.7 -5.2 13.5 67.9 Non-Food 46 31.4 15.8 -15.6 6.4 32.1 Source: Ethiopian Statistical Service (ESS) Table 3.2: National Annual Average Inflation Rates (in %) Inflations Weight (in %) 2022/23 2023/24 Change(in %age Points) Contribution(in%) to annual average inflation A B B-A Absolute Relative General 100.0 32.5 26.6 -6.0 26.6 100 Food and Non￾alcoholic Beverages 54.0 31.7 28.1 -3.6 16.7 62.9 Non-Food 46.0 33.9 24.4 -9.5 9.9 37.3 Source: ESS

29 | 2023/24 Annual Report Fig.III.1: Developments in Average National Inflation Rates Source: ESS Fig.III.2: Development in Annual Year-on-Year National Inflation Rate 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 2022 2023 2024 Percent General Food & Non-alcoholic bevarages Non Food 0 5 10 15 20 25 30 35 40 45 50 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 2022 2023 2024 % General Food & Non-alcoholic bevarages Non Food

30 | 2023/24 Annual Report Table 3.3: Average Annual Inflation of Food & Non-alcoholic Beverages December 2016=100 Inflations Weights (in%) 2022/23 2023/2 4 Change in%age points Contribution(in%) to Annual Average Inflation A B B-A Absolute Relative Food and Non-alcoholic Beverages 0.54 31.7 28.1 -3.6 28.1 100 Bread and Cereals 0.17 30.8 38.5 7.6 14.4 51.2 Meat 0.04 39.7 27.5 -12.2 2.2 7.7 Fish and Sea food 0.00 107.7 -8.7 -116.4 0.0 0.0 Milk, cheese and egg 0.03 41.5 22.0 -19.5 1.2 4.4 Oils & Fats 0.04 43.5 3.0 -40.4 0.3 0.9 Fruit 0.00 45.2 17.4 -27.8 0.1 0.3 Vegetables 0.12 30.1 40.4 10.3 8.3 29.4 Sugar jam, honey, chocolate 0.01 33.6 34.2 0.7 0.5 1.6 Food products n.e.c 0.06 14.1 13.8 -0.3 1.3 4.7 Non-alcoholic beverages 0.05 34.7 -0.6 -35.3 -0.1 -0.2

Table 3.4: Average Annual Inflation of Non-food by Component December 2016=100 Inflations Weights (in%) 2022/2 3 2023/24 Change in%age points Contribution(in%) to Annual Average Inflation A B B-A Absolute Relative Non-Food Inflation 0.46 33.9 24.4 -9.5 24 100 AlcoholicBeverages and tobacco 0.05 33.2 27.7 -5.5 3.0 12.3 Clothing and Footwear 0.06 39.7 14.6 -25.1 2.2 9.1 Housing, Water, Electricity, Gas and other Fuel 0.17 23.9 28.3 4.4 8.9 36.8 Furnishings, Household Equipment and Routine maintenance of houses 0.05 51.0 22.2 -28.8 3.2 13.2 Health 0.01 26.5 37.1 10.6 0.8 3.4 Transport 0.02 29.3 17.1 -12.2 1.0 3.9 Communication 0.02 5.3 28.6 23.3 0.3 1.2 Recreation and culture 0.00 49.7 0.3 -49.4 0.0 0.0 Education 0.00 20.1 23.1 3.0 0.2 0.7 Restaurant & hotel 0.05 41.4 26.8 -14.6 3.4 14.1 Miscellaneous Goods 0.03 54.3 20.7 -33.7 1.3 5.2 Source: ESS

31 | 2023/24 Annual Report 3.2. Consumer Price Developments in Regional States In 2023/234, the regional annual average headline inflation decreased to 23.9 percent from 35.5 percent recorded in the preceding year. Benishangul Gumuz (36.6%), Amhara (31.7%), Oromia (26.7 %) and Addis Ababa (31.2%) registered annual average headline inflation rates greater than the regional average. Benishangul Gumuz experienced the highest headline inflation (36.6 percent) while the lowest (13.6 percent) was in Afar; revealing a 23 percentage points margin in the rates of inflation between the highest and lowest regional headline inflation (Table 3.5). Table 3.5: Regional Average Annual Inflation (2022/23 FY) Regions 2022/23 2023/24 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 D-A E-B F-C SNNP 32.4 31.7 33.5 21.9 18.2 28.2 -10.4 -13.5 -5.3 Harari 33.5 35.9 31.5 19.9 30.7 10.5 -13.6 -5.2 -21.0 Oromia 33.5 32.3 35.6 26.7 28.6 23.6 -6.8 -3.7 -12.0 Tigray 0.0 Gambela 34.7 35.4 33.6 23.7 26.7 18.8 -11.0 -8.7 -14.9 Addis Ababa 37.3 35.5 39.0 31.2 34.1 28.6 -6.1 -1.5 -10.3 Dire Dawa 62.7 40.9 49.1 11.0 30.3 18.9 -51.7 -10.6 -30.2 Ben. Gumuz 32.4 32.6 32.1 36.6 38.5 34.2 4.2 5.9 2.1 Somali 40.2 37.3 44.5 22.9 26.4 18.1 -17.3 -10.9 -26.4 Afar 15.0 13.6 14.2 12.7 -1.4 -0.8 -2.3 Amhara 33.1 32.2 34.3 31.7 34.4 28.2 -1.3 2.3 -6.0 Regions Average 35.5 32.9 34.8 23.9 28.2 22.2 Standard deviation 35.5 32.9 34.8 23.9 28.2 22.2 Coefficient of variation 11.6 6.9 9.0 8.0 7.4 7.6

32 | 2023/24 Annual Report Source: ESS Source: ESS The regional average food & non￾alcoholic beverages inflation fall to 28.2 percent from 32.9 percent last year. Amhara (34.4%), Dire Dawa (30.3%), Benishangul Gumuz (38.5%), Harari (30.7 %), Addis Ababa (34.1%) and Oromia (38.6%) saw higher food inflation than the regional average. The highest food & non-alcoholic beverages inflation was registered in Benishangul Gumuz (38.5%) and the lowest in Afar (14.2%), showing a 24.3 percentage point margin among the regions (Fig.3.4). 32.4 33.5 33.5 34.7 37.3 62.7 32.4 40.2 15.0 33.1 21.9 19.9 26.7 23.7 31.2 11.0 36.6 22.9 13.6 31.7 0 10 20 30 40 50 60 70 SNNP Harari Oromia Tigray Gambe lla Addis Ababa Dire Dawa Ben. Gumuz Somali Afar Amhar a Fig.III.3: Variation in Regional-Average-Annual Headline Inflation 2022/23 2023/24

33 | 2023/24 Annual Report Source: ESS 31.7 35.9 32.3 35.4 35.5 40.9 32.6 37.3 15.0 32.2 18.2 30.7 28.6 26.7 34.1 30.3 38.5 26.4 14.2 34.4 0 5 10 15 20 25 30 35 40 45 Fig.III.4: Variation in Regional-Average-Annual Food and Non￾Alcoholic Beverages Inflation 2022/23 2023/24

34 | 2023/24 Annual Report The average annual regional non-food inflation decreased to 22.2 percent from 34.8 percent in 2022/23. Benishangul Gumuz (34.2%), Amhara (28.2%), SNNP (28.2%), Addis Ababa (28.6%) and Oromia (23.6%) recorded non-food inflation higher than the regional average. The highest non-food inflation as seen in Benishangul Gumuz (34.2%) and the lowest (10.5%) in Harari revealing 23.7 percentage points differentials (Fig.3.5). Source: ESS 33.5 31.5 35.6 33.6 39.0 49.1 32.1 44.5 15.0 34.3 28.2 10.5 23.6 18.8 28.6 18.9 34.2 18.1 12.7 28.2 0 10 20 30 40 50 60 Fig.III.5: Variation in Regional-Average-Annual Non-food Inflation 2022/2 3 2023/2 4

National Bank of Ethiopia 35 | 2023/24 Annual Report IV. MONETARY AND FINANCIAL DEVELOPMENTS 4.1. Monetary Developments and Policy In its monetary policy, the National Bank of Ethiopia always laid emphasis on maintaining price stability due to its prudent monetary policy stance; inflation has showed a significant improvement in 2023/24; consecutively falling the past twelve months. 4.1.1 Developments in Monetary Aggregates At the end of 2023/24, domestic liquidity, as measured by broad money supply (M2), stood at Birr 2.5 trillion reflecting a 14.1 percent annual growth. This was mainly due to the 14.5 percent increase in domestic credit offsetting the 53.2 percent annual decline in external asset (net). The growth in domestic credit was attributed to a 30.0 percent and 9.7 percent increase in both credit to the central government and credit to the non-central government, respectively (Table 4.1). Table 4.1: Factors Influencing Broad Money (Value in millions of birr) Particulars Year Ended June 30 Annual Percentage Change 2020/21 2021/22 2022/23 2023/24 2022/23 2023/24 External Assets (net) (812.3)

(111,427.54)

(160,097.68)

(245,298.39) -43.7 -53.2 Domestic Credit 1,481,844.4 1,930,621.8 2,444,435.5 2,797,752.1 26.6 14.5 Claims on Central Gov't (net) 214,269.2 422,864.0 573675.7 745,541.1 38.4 30.0 Claims on Non-Central Gov't 1,267,575.3 1,507,757.8 1,870759.8 2,052,211.0 23.3 9.7 Other Items (net) 132,766.0 103,884.2 113,489.4 74,561.8 9.2

(34.3) Broad Money (M2) 1,348,266.1 1,715,310.0 2,170,848.4 2,477,891.9 26.6 14.1 Source: NBE Fig.IV.1: Major Component of Broad Money

National Bank of Ethiopia 36 | 2023/24 Annual Report Source: NBE All broad money components showed expansion where narrow money rose by 16.5 percent due to growth demand deposits and currency outside banks, reflecting the upsurge in money demand for transaction purposes. Similarly, quasi-money, which included savings and time deposits, rose 13.0 percent and reached Birr 1.66 trillion. The contribution of quasi-money was large compared to net demand deposit and currency outside the bank owing was due to improved capacity of commercial banks in deposit mobilization (Table 4.2). Table 4.1: Components of Broad Money Source: NBE Fig.IV.2: Major Determinants of Monetary Growth 0.00 500000.00 1000000.00 1500000.00 2000000.00 2500000.00 3000000.00 In Millions of Birr Quasi- Money Net Demand Deposit Currency Outside Banks Particulars Year Ended June 30 Annual Percentage Change 2021/22 2022/23 2023/24 2021/22 2022/23 2023/24 Narrow Money Supply 588,015.8 706,142.2 822,498.6 34.4 20.1 16.5 Currency Outside Banks 173,382.8 211,636.8 205,441.3 29.8 22.1 (2.93) Demand Deposits (net) 414,633.0 494,505.4 617,057.3 36.5 19.3 24.8 Quasi-Money 1,127,294.2 1,464,706.2 1,655,393.3 23.8 29.9 13.0 Savings Deposits 1,016,048.8 1,315,260.4 1,461,904.1 24.5 29.4 11.1 Time Deposits 111,245.4 149,445.8 193,489.2 17.7 34.3 29.5 Broad Money Supply 1,715,310.0 2,170,848.4 2,477,891.9 27.2 26.6 14.1

National Bank of Ethiopia 37 | 2023/24 Annual Report Source: NBE

4.1.2. Developments in Reserve Money and Monetary Ratios Base money witnessed a slight annual tightening (1.1 percent) to reach Birr 473.2 billion at the end of the fiscal year. The contraction was attributed to 3.7 percent decline in deposits of banks at the NBE, despite a 1.2 percent increase in currency in circulation. The 19.0 percent rise in net domestic credit was offset by the 50.9 decline in net foreign assets. Excess reserves of commercial banks stood compared to Birr 73.9 billion a year ago. The ratio of broad money supply (M2) to GDP2 , an indicator of financial deepening was 0.21, a slight decline from 0.25 last year the same period

2 The 2023/24 GDP is measured at current market price obtained from MNPD. reflecting marginal weakling of financial liquidity and depth. The money multipliers defined as broad money to reserve money reached at 5.2 from 4.5 registered last year at the same period, implying that money is relatively created by commercial banks (Table 4.3). -200 -150 -100 -50 0 50 100 150 Annual Percentage Change Credit to Central Gov't Credit to Non-Central Gov't Broad Money Net Foreign Assets

National Bank of Ethiopia 37 | 2023/24 Annual Report Table 4.3: Reserve Money and Monetary Ratios Source: NBE Fig.IV.3: Reserve Money Source: NBE 0 100000 200000 300000 400000 500000 600000 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 value in million of Birr Reserve Requirement (CB's) Actual Reserve (CB's) Excess Reserve (CB's) Reserve Money Particulars Year Ended June 30 Annual Percentage Change 2020/21 2021/22 2022/23 2023/24 2022/23 2023/24 Reserve Requirement (CB's) 67,732.4 119,022.6 147,931.4 149,916.9 24.3 1.3 Actual Reserve (CB's) 101,384.0 145,877.3 221,837.7 211,215.4 52.1 (4.8) Excess Reserve (CB's) 33,651.6 26,854.7 73,906.3 61,298.4 175.2 (17.1) Reserve Money 264,301.8 362,498.7 478,471.7 473,223.2 32.0 (1.1) Currency in Circulation 163,709.1 208,211.3 254,316.1 257,296.3 22.1 1.2 Bank Deposits 100,592.8 154,287.4 224,155.7 215,926.9 45.3 (3.7) Money Multiplier (Ratio): Narrow Money to Reserve Money 1.65 1.62 1.48 1.74 -9.02 17.77 Broad Money to Reserve Money 5.10 4.73 4.54 5.24 (4.12) 15.41 Other Monetary Ratios (%): Currency to Narrow Money 30.55 29.49 29.97 24.98 1.64 -16.66 Currency to Broad Money 9.91 10.11 9.75 8.29 -3.55 -14.96 Narrow Money to Broad Money 32.44 34.28 32.53 33.19 -5.11 2.04 Quasi Money to Broad Money 67.56 65.72 67.47 66.81 2.67 -0.99 M2/GDP Ratio* 0.33 0.28 0.25 0.21

National Bank of Ethiopia 38 | 2023/24 Annual Report 4.2. Developments in Interest Rate In 2023/24, both the minimum and maximum saving deposit interest rates were unchanged at 7.0 and 9.0 percent, respectively. Subsequently, the average saving deposit and weighted average demand deposit rate remained constant at their preceding year level of 8.0 and 0.05 percent, respectively. The weighted average time deposit rate, however, showed a slight decline to 7.68 percent from 7.61 percent a year earlier. The simple average lending interest rate was 14.25 percent. Accordingly, both the deposit and lending real interest rates were negative given the 19.9 percent headline inflation (Table 4.4). Table 4.4: Interest Rate Structure of Commercial Banks (In percent per annum) Rates 2019/20 2020/21 2021/22 2022/23 2023/24

1. Deposit Rate 1.1 Savings Deposit (Simple Average) 8.00 Minimum 7.00 Maximum 9.00 1.2 Time deposit (Weighted Average) 7.94 7.83 7.70 7.61 7.68 Up to 1 year 7.88 7.78 7.66 7.57 7.63 1 -2 years 7.94 7.83 7.71 7.61 7.68 Over 2 years 7.99 7.87 7.75 7.65 7.74 1.3 Demand Deposit (Weighted Average) 0.04 0.05 0.05
2. Lending Rate (Average) 14.25 Minimum 7.00 Maximum 21.50
3. T-bills (Nominal) 4.54 7.97 9.57 9.71 9.74
4. Headline Inflation (Year-on-Year) 21.6 24.5 34.0 29.3 19.9
5. Real Rate of Interest on: 5.1 Saving Deposit (1.1 - 4)

(13.55)

(16.50)

(26.00)

(21.30)

(11.91) 5.2 Time Deposit (1.2 - 4)

(13.62)

(16.67)

(26.30)

(21.69)

(12.23) 5.3 Lending (2 - 4)

(7.30)

(10.25)

(19.75)

(15.05)

(5.66) Source: NBE

National Bank of Ethiopia 39 | 2023/24 Annual Report Fig.IV.4: Interest Rate Structure of Commercial Banks Source: NBE

4.3. Developments in Financial Sector Banks, insurance companies and micro￾finance institutions constitute the major financial institutions in Ethiopia. As June 2023/24, the number of banks reached 32, insurance companies 18 and micro finance institutions 48. Banks opened 997 new branches in 2023/24 thereby raising the total number of branches to 12,278 from 11,281 a year ago. As a result, one bank branch serves about 8,918 3 people. About 31 percent of the bank branches were located in Addis Ababa. Major branch expansion was undertaken by Tsedey Bank (147 branches), followed by

3 Total population is 109,499, 000 as CSA Estimation for 2024 Global Bank (86 branches), Awash Bank (69 branches), Siinqee Bank (52 branches), Oromia Bank (52 branches), Enat Bank (50 branches), Dashen Bank (48 branches), Amhara Bank (45 Branches), Bank of Abyssinia (44 branches), Abay Bank (43 ranches) and Lion International Bank (30 branches). Thus, the share of private banks in total branch network slightly rose to 81.3 percent from 80.0 percent last year (Table 4.5). At the same time, total capital of the banking industry showed a 20 percent annual growth to reach Birr 296.1 billion (Table 4.5). Unlike banks, the number of insurance companies remained at 18 while their branches rose to 799 following the opening of 58 new 0 2 4 6 8 10 12 14 16 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 Value in Percent Average Saving Deposit Rate Weighted Average Time Deposit Rate Average Lending Rate

National Bank of Ethiopia 40 | 2023/24 Annual Report branches. About 56.6 percent of the insurance branches were in Addis Ababa and 88.6 percent of the total branches were private. Their total capital increased by 36.4 percent to Birr 22.4 billion, of which, the share of private insurance companies was 80.4 percent and the remaining 19.6 percent public (Table 4.6). Fig.IV.5: Branch Network and Capital of Banking System (2020/21-2023/24) Source: Commercial Banks including DBE 27.3 23.9 20.0 18.7 52.6 41.5 36.2 32.0 72.7 76.1 80.0 81.3 47.4 58.5 63.8 68.0 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 41 | 2023/24 Annual Report Table 4.5: Branch Network and Capital of the Banking System at the Close of June 30, 2024 (Branch in Number and Capital in Millions of Birr) Source: Commercial Banks & DBE

1. State owned Banks Commercial Bank of Ethiopia 1696 477 2173 19.3 1705 480 2185 17.8 58,296.7 23.6 62,470.5 21.1 Development Bank of Ethiopia 77 6 83 0.7 99 6 105 0.9 30,968.6 12.6 32,405.0 10.9 Total State owned Banks 1773 483 2256 20.0 1804.0 486.0 2290.0 18.7 89,265.3 36.2 94875.6 32.0
2. Private Banks Awash Bank 597 296 893 7.9 657 305 962 7.8 19,729.3 8.0 27,141.6 9.2 Dashen Bank 566 295 861 7.6 630 279 909 7.4 15,707.1 6.4 19,166.5 6.5 Bank of Abyssinia 602 329 931 8.3 667 308 975 7.9 14,286.3 5.8 17,579.0 5.9 Wegagen Bank 282 154 436 3.9 307 153 460 3.7 5,996.5 2.4 7,536.9 2.5 Hibret Bank 254 232 486 4.3 272 236 508 4.1 6,568.1 2.7 9,570.6 3.2 Nib International Bank 227 234 461 4.1 236 222 458 3.7 8,080.5 3.3 10,107.0 3.4 Cooperative Bank of Oromia 553 203 756 6.7 590 187 777 6.3 12,217.8 5.0 14,723.1 5.0 Lion International Bank 205 94 299 2.7 238 91 329 2.7 3,496.8 1.4 3,985.8 1.3 Oromia Bank 339 178 517 4.6 392 177 569 4.6 6,980.5 2.8 8,621.0 2.9 Zemen Bank 37 64 101 0.9 47 74 121 1.0 6,570.6 2.7 9,619.1 3.2 Buna Bank 301 171 472 4.2 312 168 480 3.9 5,142.0 2.1 5,902.5 2.0 Berhan Bank 227 171 398 3.5 227 182 409 3.3 4,329.7 1.8 4,751.9 1.6 Abay Bank 338 171 509 4.5 384 168 552 4.5 5,960.3 2.4 7,915.1 2.7 Addis Interational Bank 62 72 134 1.2 78 80 158 1.3 2,179.6 0.9 2,487.6 0.8 Debub Global Bank 70 84 154 1.4 101 139 240 2.0 2,406.9 1.0 3,111.7 1.1 Enat Bank 88 65 153 1.4 130 73 203 1.7 3,019.0 1.2 3,680.5 1.2 Hijra Bank 53 18 71 0.6 73 25 98 0.8 1,274.8 0.5 1,521.1 0.5 Zamzam Bank 41 37 78 0.7 57 47 104 0.8 1,753.4 0.7 2,118.4 0.7 Goh Betoch Bank 4 4 8 0.1 4 4 8 0.1 1,324.8 0.5 1,629.7 0.6 Siinqee Bank 292 64 356 3.2 338 70 408 3.3 7,643.2 3.1 8,886.9 3.0 Tseday Bank 357 37 394 3.5 481 60 541 4.4 11,330.7 4.6 11,331.3 3.8 Shebele Bank 19 4 23 0.2 30 4 34 0.3 609.6 0.2 789.1 0.3 Amahara Bank 166 113 279 2.5 198 126 324 2.6 5,891.5 2.4 6,683.3 2.3 Ahadu Bank 32 44 76 0.7 45 56 101 0.8 672.6 0.3 1,036.1 0.3 Tsehay Bank 49 37 86 0.8 55 39 94 0.8 1,087.8 0.4 1,340.7 0.5 Sidama Bank S.C 15 1 16 0.1 34 4 38 0.3 688.1 0.3 997.5 0.3 Omo Bank S.C 0.0.0 919.5 0.4 922.0 0.3 Gadaa Bank 44 18 62 0.5 55 36 91 0.7 943.0 0.4 1,071.9 0.4 Ramis Bank S.C 13 2 15 0.1 30 7 37 0.3 636.1 0.3 692.9 0.2 Siket bank 6,314.0 2.1 Total Private Banks 5,833 3,192 9,025 80.0 6,668 3,320 9,988 81.3 157,446.2 63.8 201,235.0 68.0 3.Grand Total Banks 7,606 3,675 11,281 100 8,472 3,806 12,278 100.0 246,711.5 100.0 296,110.6 100.0 Addis Ababa Total % Share Regions Addis Ababa Total Capital 2022/23 2023/24 2022/23 2023/24 Banks Branch Network Regions % Share % Share Total Capital % Share Total Capital

National Bank of Ethiopia 42 | 2023/24 Annual Report Table 4.6: Branch Network & Capital of Insurance Companies as at June 30, 2024 (Branch in Number and Capital in Millions of Birr) 2022/23 2023/24 % Change A.A Regions Total A.A Regions Total A B B/A 1 Ethiopian Ins. Cor. 25 66 91 25 66 91 3,466 4,378 26.3 2 Awash Ins.Com.S.C. 32 27 59 32 32 64 2,553 3,341 30.9 3 Africa Ins.Com S.C. 20 15 35 20 15 35 435 676 55.4 4 National Ins. Co. of Eth. 25 17 42 25 17 42 359 508 41.5 5 United Ins.Com. S.C 34 16 50 34 17 51 1,363 1,798 31.9 6 Global Ins. Com.S.C 13 9 22 13 9 22 272 354 30.1 7 Nile Ins.Com.S.C 35 24 59 37 24 61 1,242 1,597 28.6 8 Nyala Ins.Com.S.C 19 19 38 20 20 40 1,370 1,975 44.2 9 Nib Ins. Com.S.C 31 16 47 31 16 47 995 1,364 37.1 10 Lion Ins. Com.S.C 19 22 41 20 23 43 400 710 77.5 11 Ethio-Life Ins.Com.S.c 21 8 29 23 8 31 286 438 53.1 12 Oromia Ins.Com.S.c 27 28 55 29 32 61 1,350 1,837 36.1 13 Abay Insurance 21 16 37 23 17 40 675 886 31.3 14 Berhan insurance S.C 19 8 27 20 9 29 355 528 48.7 15 Tsehay Insurance S.C 24 10 34 26 12 38 489 687 40.5 16 Lucy Insurance 18 6 24 29 8 37 216 302 39.8 17 Bunna Insurance S.C. 19 13 32 23 15 38 374 512 36.9 18 Zemen Insurance S.C. 16 3 19 22 7 29 199 484 143.2 Total 418 323 741 452 347 799 16,399.0 22,375.0 36.4 No. Capital 2023/24 Insurance Companies 2022/23 Branch Source: Insurance Companies Note: A.A=Addis Ababa

Fig.IV.6: Branch Network and Capital of Insurance Companies (2020/21-2023/24) 14.2 13.2 12.3 11.4 26.4 25.2 21.1 19.6 85.8 86.8 87.7 88.6 73.6 74.8 78.9 80.4 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Percentage Share from total State Owned Insurances Companies Private Insurances Companies Source: Insurance Companies

National Bank of Ethiopia 42 | 2023/24 Annual Report By end of 2023/24, the number of micro￾finance institutions (MFIs) reached 48. Their total capital increased by 18.8 percent and their total asset by 10.4 percent. At the same time, their deposit mobilization and credit also expanded. Compared to last year, their deposit went up by 12.4 percent and reached Birr 31.4 billion while their outstanding credit slightly increased by 1.2 percent to Birr 39.7 billion (Table 4.7).

Table 4.7: Microfinance Institutions Performance as of June 30, 2024 (In thousands of birr) 2022/23 2023/24 % Change A B C= B/A Total Capital 9,597,910.0 11,399,991.6 18.8 Saving 27,903,518.7 31,374,095.6 12.4 Credit 39,171,342.4 39,650,424.8 1.2 Total Assets 54,445,035.9 60,095,189.3 10.4 Particulars Source: MFIs 4.3.1 Resource Mobilization Total resources mobilized by the banking system in the form of deposit, borrowing and loan collection decreased by 8.8 percent and reached Birr 806.5 billion at the end of 2023/24 (Table 4.8). Aided by remarkable branch expansion, deposit liabilities of the banking system topped Birr 2.5 trillion, reflecting 15.3 percent annual growth. Similarly, saving deposits by 11.7 percent, demand deposit by 19.6 percent and time deposit increased by 26.7 percent. Of the total deposits, saving deposits accounted for 59.2 percent, demand deposits 32.8 percent and time deposit 7.9 percent (Table 4.9). The share of private banks in total deposit mobilization rose 52.9 partly due to the opening of 1,145 new branches. CBE alone mobilized 47.1 percent of the total deposits due to its extensive branch network. Total outstanding borrowing of the banking system at the end of the fiscal year was Birr 130.2 billion up from Birr 108.9 billion a year earlier due to borrowing by Development Bank of Ethiopia (DBE). Of the total borrowing, domestic sources accounted for 73.1 percent and foreign sources 26.9 percent. The net borrowing in 2023/24 was Birr 21.3 billion (Table 4.8 & 4.9).

National Bank of Ethiopia 43 | 2023/24 Annual Report Moreover, banks collected Birr 454.1 billion in 2023/24, showing a 13.2 percent annual increment. Private banks collected 60.6 percent of the loans previously disbursed (Table 4.8). Table 4.8: Annual Resource Mobilization & Disbursing Activities of Commercial Banks and DBE (Specialized Bank) as at June 30, 2024 ( In Millions of Birr) 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) 154,697.8 193,509.4 348,207.2 164,146.8 296,342.8 460,489.6 119,927.3 211,129.9 331,057.2 (4.9) (28.1) Demand 62,313.4 66,215.7 128,529.0 45,059.5 72,075.4 117,135.0 63,857.7 70,382.3 134,240.0 4.4 14.6 Savings 86,809.4 112,483.4 199,292.8 117,549.8 188,920.5 306,470.4 58,622.6 96,383.6 155,006.2 (22.2) (49.4) Time 5,575.0 14,810.4 20,385.4 1,537.4 35,346.9 36,884.3 (2,553.0) 44,364.0 41,811.0 105.1 13.4
2. Borrowing (net change) 1,890.8 - 1,890.8 22,788.9 - 22,788.9 21,310.4 - 21,310.4 1,027.1 (6.5) Local (2,010.0) - (2,010.0) 16,053.3 - 16,053.3 12,632.0 - 12,632.0 528.4 (21.3) Foreign 3,900.8 - 3,900.8 6,735.5 - 6,735.5 8,678.4 - 8,678.4 122.5 28.8
3. Collection of Loans 72,697.6 203,782.5 276,480.1 142,098.0 258,905.5 401,003.4 179,034.4 275,053.6 454,088.1 64.2 13.2
4. Total Resources Mobilized (1+2+3) 229,286.2 397,291.9 626,578.1 329,033.6 555,248.3 884,282.0 320,272.1 486,183.6 806,455.7 28.7 (8.8)
5. Disbursement 129,141.5 298,767.5 427,909.0 160,127.0 387,549.7 547,676.7 223,528.1 237,960.7 461,488.8 7.8 (15.7)
6. Change in Liquidity (4-5) 100,144.7 98,524.4 198,669.1 168,906.7 167,698.6 336,605.3 96,744.1 248,222.8 344,966.9 73.6 2.5 Memorandum Item: -
7. Outstanding Credit 700,732.7 889,630.3 1,590,362.9 948,485.2 1,002,084.6 1,950,569.8 1,029,119.0 1,119,132.1 2,148,251.1 35.1 10.1 Percent Change Particulars 2021/22 2022/23 2023/24 Source: Commercial Banks & DBE Table 4.9: Deposits and Borrowings of Commercial Banks and Specialized Bank as at June 30, 2024 (In millions of Birr) 2021/22 2022/23 2023/24 % Change A B C D=B/A E=C/B A. Deposits -Demand 568,360.2 685,495.1 819,735.1 20.6 19.6 -Savings 1,016,912.6 1,323,382.9 1,478,389.1 30.1 11.7 -Time 119,756.8 156,641.1 198,452.2 30.8 26.7 T o t a l 1,705,029.5 2,165,519.2 2,496,576.4 27.0 15.3 B. Borrowings -Local 66,456.3 82,509.6 95,141.6 24.2 15.3 -Foreign 19,616.8 26,352.3 35,030.8 34.3 32.9 T o t a l 86,073.1 108,862.0 130,172.3 26.5 19.6 Particulars Source: Commercial Banks & DBE

National Bank of Ethiopia 44 | 2023/24 Annual Report 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 140,823.73 128,616.86 876,079.80 191,163.83 163,175.72 936,906.98 35.7 26.9 6.9 2.Development Bank of Ethiopia 19,303.24 13,481.10 72,405.38 32,364.26 15,858.71 92,212.02 67.7 17.6 27.4 Sub-Total={A} 160,127.0 142,098.0 948,485.2 223,528.1 179,034.4 1,029,119.0 39.6 26.0 8.5 {B}. Private Banks Awash Bank 58915.0 36847.5 160987.1 39705.8 36829.7 183179.7 -32.6 0.0 13.8 Dashen Bank 45781.2 39029.2 101964.6 43483.9 40941.4 116920.3 -5.0 4.9 14.7 Bank of Abyssinia 39865.5 21631.1 147990.9 17173.9 17410.9 169167.4 -56.9 -19.5 14.3 Wegagen Bank 12661.8 9662.2 39661.5 9667.3 12606.5 45068.3 -23.6 30.5 13.6 United Bank 19356.1 17767.0 60255.1 13365.2 16248.4 69313.3 -31.0 -8.5 15.0 Nib International Bank 21412.1 10778.2 54181.9 2489.0 13517.0 48917.8 -88.4 25.4 -9.7 Cooperatives Bank of Oromia 30994.9 28337.2 102048.3 2444.8 24726.5 99018.6 -92.1 -12.7 -3.0 Lion International Bank 2255.0 2824.0 28372.9 5389.3 5380.6 31891.0 139.0 90.5 12.4 Zemen Bank 13555.3 8004.1 31825.6 8908.9 8816.8 36234.3 -34.3 10.2 13.9 Oromia Bank 14718.1 12834.2 42674.6 5630.7 10697.9 43562.6 -61.7 -16.6 2.1 Berhan Bank 12089.3 10660.4 28478.3 7685.9 11189.9 30328.4 -36.4 5.0 6.5 Buna International Bank 11340.1 5216.8 34633.7 4251.9 5524.1 37938.5 -62.5 5.9 9.5 Abay Bank 13468.0 7140.6 35584.2 9535.4 6950.6 40340.1 -29.2 -2.7 13.4 Addis International Bank 1378.0 1641.5 7592.1 942.6 1627.7 8673.5 -31.6 -0.8 14.2 Debub Global Bank 4508.9 3465.0 13998.1 3015.1 3472.6 15963.8 -33.1 0.2 14.0 Enat Bank 4400.2 4030.3 15368.2 2436.8 3043.9 17495.5 -44.6 -24.5 13.8 ZemZem Bank 7696.7 1744.5 3617.9 3195.9 3267.8 4536.4 -58.5 87.3 25.4 Hijira Bank 7249.5 647.2 3013.7 2926.0 2949.5 3409.1 -59.6 355.7 13.1 Goh Betoch Bank 1050.4 188.7 1318.6 257.1 233.0 1551.8 -75.5 23.5 17.7 Tseday Bank 32760.1 24110.1 37174.9 22478.8 21426.1 41683.4 -31.4 -11.1 12.1 Shebelle Bank 387.4 396.9 1934.3 560.5 565.8 1934.3 44.7 42.5 0.0 Siinqee Bank 12342.4 7717.2 24019.4 15206.6 16562.6 28065.9 23.2 114.6 16.8 Amhara Bank 13273.0 1146.1 15201.0 6185.6 4448.6 20372.1 -53.4 288.1 34.0 Sidama Bank 425.9 384.9 550.6 800.7 565.6 1085.4 88.0 47.0 97.1 Omo Bank 2799.7 2630.0 6807.8 3565.7 3363.2 6431.1 27.4 27.9 -5.5 Tsehay Bank 1102.4 32.3 1063.9 1702.9 459.9 2531.6 54.5 1324.3 138.0 Ahadu Bank 896.0 18.5 899.0 1445.8 468.7 1765.8 61.4 2437.1 96.4 Gadaa Bank 867.1 19.6 866.3 2053.9 997.4 2495.7 136.9 4979.4 188.1 Siket Bank 1358.6 760.5 9163.0 0.0 Rammis Bank 96.2 0.4 93.3 0.0 Sub-Total={B} 387,549.7 258,905.5 1,002,084.6 237,960.7 275,053.6 1,119,132.1 -38.6 6.2 11.7 Grand Total = {( A+B)} 547,676.7 401,003.4 1,950,569.8 461,488.8 454,088.1 2,148,251.1 -15.7 13.2 10.1 Source: Commercial Banks Lenders 2022/23 Percentage Change 2023/24 Source: Commercial Banks D*=Disbursement, C*=Collection, O/S*= Outstanding Credit

National Bank of Ethiopia 45 | 2023/24 Annual Report 4.3.2 New Lending Activities Commercial banks and Development Bank of Ethiopia (DBE) disbursed Birr 461.5 billion in fresh loans which was 15.7 percent lower than a year ago (Table 4.10). Of the total new loans, about 51.6 percent was provided by private banks and 48.4 percent by the two state owned banks (i.e. CBE and DBE) (Table 4.11). Sector wise, the share of agriculture was 23.2 percent, followed by domestic trade (18.7 percent), manufacturing (15.7 percent), international trade (14.7 percent) consumer & staff loan (9.2 percent), building & construction (7.6 percent), and others. Fig.IV.7: Development in Net Deposit, Lending and Loan Collection Activities of the Banking System (2021/22-2023/24) 0 50000 100000 150000 200000 250000 300000 350000 400000 450000 Value in Millions of Birr Net Deposit Lending Loan collection Source: Commercial Banks and DBE

National Bank of Ethiopia 46 | 2023/24 Annual Report 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 25.7 32.1 44.9 41.4 35.9 43.6 61.1 12.0 (2.9) 2.Development Bank of Ethiopia 3.5 3.4 3.7 7.0 3.5 4.3 99.0 3.9 15.6 Sub-Total=A 29.2 35.4 48.6 48.4 39.4 47.9 65.7 11.3 (1.5) B. Private Banks Awash Bank 10.8 9.2 8.3 8.6 8.1 8.5 (20.0) (11.7) 3.3 Dashen Bank 8.4 9.7 5.2 9.4 9.0 5.4 12.7 (7.4) 4.1 Bank of Abyssinia 7.3 5.4 7.6 3.7 3.8 7.9 (48.9) (28.9) 3.8 Wegagen Bank 2.3 2.4 2.0 2.1 2.8 2.1 (9.4) 15.2 3.2 United Bank 3.5 4.4 3.1 2.9 3.6 3.2 (18.1) (19.2) 4.4 Nib International Bank 3.9 2.7 2.8 0.5 3.0 2.3 (86.2) 10.7 (18.0) Cooperatives Bank of Oromia 5.7 7.1 5.2 0.5 5.4 4.6 (90.6) (22.9) (11.9) Lion International Bank 0.4 0.7 1.5 1.2 1.2 1.5 183.6 68.3 2.1 Zemen Bank 2.5 2.0 1.6 1.9 1.9 1.7 (22.0) (2.7) 3.4 Oromia Bank 2.7 3.2 2.2 1.2 2.4 2.0 (54.6) (26.4) (7.3) Berhan Bank 2.2 2.7 1.5 1.7 2.5 1.4 (24.6) (7.3) (3.3) Buna International Bank 2.1 1.3 1.8 0.9 1.2 1.8 (55.5) (6.5) (0.5) Abay Bank 2.5 1.8 1.8 2.1 1.5 1.9 (16.0) (14.0) 2.9 Addis International Bank 0.3 0.4 0.4 0.2 0.4 0.4 (18.8) (12.4) 3.7 Debub Global Bank 0.8 0.9 0.7 0.7 0.8 0.7 (20.6) (11.5) 3.5 Enat Bank 0.8 1.0 0.8 0.5 0.7 0.8 (34.3) (33.3) 3.4 ZemZem Bank 1.4 0.4 0.2 0.7 0.7 0.2 (50.7) 65.4 13.8 Hijira Bank 1.3 0.2 0.2 0.6 0.6 0.2 (52.1) 302.4 2.7 Goh Betoch Bank 0.2 0.0 0.1 (71.0) 9.0 6.9 Tseday Bank 6.0 6.0 1.9 4.9 4.7 1.9 (18.6) (21.5) 1.8 Shebelle Bank 0.1 71.7 25.9 (9.2) Siinqee Bank 2.3 1.9 1.2 3.3 3.6 1.3 46.2 89.5 6.1 Amhara Bank 2.4 0.3 0.8 1.3 1.0 0.9 - - - Sidama Bank 0.1 0.1 0.0 0.2 0.1 0.1 - - - Omo Bank 0.5 0.7 0.3 0.8 0.7 0.3 - - - Tsehay Bank 0.2 0.0 0.1 0.4 0.1 0.1 - - - Ahadu Bank 0.2 0.0 0.0 0.3 0.1 0.1 - - - Gadaa Bank 0.2 0.0 0.0 0.4 0.2 0.1 - - - Siket Bank - - - 0.3 0.2 0.4 Rammis Bank - - - 0.0 Sub-Total=B 70.8 64.6 51.4 51.6 60.6 52.1 (27.1) (6.2) 1.4 Grand Total ( A+B) 100.0 - - - Lenders 2022/23 Percentage Change 2023/24 Source: Commercial Banks D*=Disbursement, C*=Collection, O/S*= Outstanding Credit

National Bank of Ethiopia 47 | 2023/24 Annual Report 4.3.3 Outstanding Loans Outstanding credit of the banking system (including corporate bond) increased by 10.1 percent and reached Birr 2.1 trillion at the end of June 2024. About 18.9 percent of the outstanding loans went to manufacturing, followed by international trade (15.6 percent), other sectors (14.1 percent), domestic trade (12.2 percent), mines, power and water resources (11.5 percent), building construction (9.4 percent), consumer and staff loan (8.3 percent), agriculture (4.9 percent), hotel and tourism (2 percent), transport and communication (1.9 percent), financial institutions (0.9 percent) and health and education (0.3 percent) (Table 4.12). The share of private sector in outstanding credit was 65.3 percent while that of public sector 34.7 percent (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 75,885.3 77,174.5 93,402.0 107,232.2 106,530.6 105,128.4 41.3 38.0 12.6 Manufacturing 66,382.8 49,664.2 351,511.4 72,480.3 58,254.1 406,589.0 9.2 17.3 15.7 Domestic Trade 100,111.9 68,726.3 239,715.1 86,108.5 85,723.8 261,669.4 (14.0) 24.7 9.2 International Trade 113,940.8 91,200.6 304,752.6 67,616.3 80,264.4 334,208.7 (40.7) (12.0) 9.7 Export 85,650.6 62,984.0 205,423.2 50,723.9 54,343.9 212,097.3 (40.8) (13.7) 3.2 Import 28,290.2 28,216.7 99,329.5 16,892.4 25,920.5 122,111.4 (40.3) (8.1) 22.9 Hotels and Tourism 10,963.0 8,145.7 37,883.9 7,989.0 8,817.3 43,094.5 (27.1) 8.2 13.8 Building and Construction 44,987.3 40,819.1 176,836.0 35,026.5 46,245.7 202,480.5 (22.1) 13.3 14.5 Mines, Power and Water resources 15,885.5 1,129.1 212,413.5 8,196.2 1,434.9 246,759.2 (48.4) 27.1 16.2 Financial Institutions 7,186.0 5,112.2 12,917.1 7,773.2 6,935.3 18,958.4 8.2 35.7 46.8 Transport and Communication 22,527.7 9,083.3 31,402.2 11,216.7 10,027.6 40,599.7 (50.2) 10.4 29.3 Health and Education 2,153.0 1,064.0 4,292.4 2,617.7 1,489.0 6,891.1 21.6 39.9 60.5 Consumer and Staff Loans 70,663.0 29,010.4 138,265.5 42,272.2 36,487.5 178,826.5 (40.2) 25.8 29.3 Other Sectors 16,990.3 19,874.1 347,178.1 12,960.2 11,877.9 303,045.7 (23.7) (40.2) (12.7) Total 547,676.7 401,003.4 1,950,569.8 461,488.8 454,088.1 2,148,251.1 (15.7) 13.2 10.1 2022/23 2023/24 Economic Sectors Percentage Change Source: Commercial Banks & DBE D*=Disbursement, C*=Collection, O/S*= Outstanding Credit

National Bank of Ethiopia 48 | 2023/24 Annual Report Fig.IV.8: Sectorial Breakdown of Bank Credit (2021/22-2023/24) 0 500000 1000000 1500000 2000000 2500000 2021/22 2022/23 2023/24 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) 2020/21 2021/22 2022/23 O/S* O/S* O/S* D* C* O/S* A B C E F G G/B G/C Corporate Bond 444,871.7 502,578.4 567,138.3 12,000.0 - 555,131.9 10.5 -2.1 Public Enterprises 612,774.3 700,732.7 747,220.6 99,074.0 97,427.5 745,921.7 6.4 -0.2 Cooperatives 29,129.8 21,398.8 21,148.1 1,586.1 4,831.5 21,343.8 -0.3 0.9 Private & Individuals 641,379.7 868,231.5 1,182,201.1 360,828.8 351,829.1 1,380,985.7 59.1 16.8 Total 1,283,283.8 1,590,362.9 1,950,569.8 461,488.8 454,088.1 2,148,251.1 35.1 10.1 2023/24 Borrowing Sector Percentage change Source: Commercial Banks & DBE

National Bank of Ethiopia 49 | 2023/24 Annual Report 4.4. Financial Activities of NBE As of June 2024, gross claims of NBE on the central government reached Birr 675.1 billion which was 19.7 percent higher than a year earlier. Of the total credit to the central government, bond accounted for 64.2 percent and direct advance 35.8 percent. Similarly, NBE’s outstanding claim on DBE was Birr 41.3 billion showing negligible change over last year same period. On the liability side, total deposits at the NBE declined by 3 percent and stood at Birr 259 billion, due to the 3.6 percent decrease in deposit by the financial institutions (Table 4.14). Table 4.14: Financial Activities of National Bank of Ethiopia at the Close of June 30, 2024 (In Millions of Birr) 2021/22 2022/23 2023/24 A B C B/A C/B

1. Loans and Advances {(1.1)+(1.2)} 402,249.8 608,814.3 716,443.2 51.4 17.7 1.1 Claims on Central Gov’t 357,427.1 563,991.5 675,120.4 57.8 19.7 1.2 Claims on DBE 44,822.7 44,822.7 41,322.7 0.0 -7.8
2. Deposit Liabilities {(2.1)+(2.2)} 185,675.5 266,929.9 258,994.1 43.8 -3.0 2.1 Government 31,210.8 42,691.6 42,867.4 36.8 0.4 2.2 Financial Institutions 154,464.7 224,238.3 216,126.7 45.2 -3.6 Particulars % Change Source: NBE D*=Disbursement, C*=Collection, O/S*= Outstanding Credit

50 | 2023/24 Annual Report 4.5. Developments in Financial Markets In the absence of secondary market in Ethiopia, government bonds were occasionally issued to finance fiscal deficit and/or to absorb excess liquidity in the banking system. Similarly, Treasury bills were auctioned bi-weekly basis. Banks also bought T-bonds based on their new monthly loan disbursements.

4.5.1. Treasury Bills Market In 2023/24, T-bills supplied to the biweekly auction amounted to Birr 1.4 trillion, reflecting a 6.0 percent annual increment. At the same time, demand for T-bills rose 36.6 percent to Birr 812.9 billion, indicating that the market was undersubscribed by Birr 542.0 Billion (40 percent). Meanwhile, the amount of T-bills sold reached Birr 797.8 billion of which T-bills worth Birr 321.3 billion were sold to banks and remaining Birr 476.5 billion to non-bank institutions. Birr 105.9 Billion (net of redemption) was mobilized to finance the fiscal deficit through sale of T-bills during the fiscal year. Thus, total outstanding T-bills went up 31 percent and stood at Birr 447.8 billion, of which banks accounted for Birr 162.3 billion (10.7%) and non- bank institutions Birr 285.54 billion (38.4%) (Table 4.15). The average weighted T-bills yield increased to 9.736 percent from 9.704 percent, depicting a 0.33 percent annual growth (Table 4.15). The highest yield (10.217 percent) was recorded for 91-day T-bills while the lowest (9.508 percent) yield was for 28-day T￾bills. .

51 | 2023/24 Annual Report Table 5.15:Results of Annual Treasury Bills Auction C/A C/B Number of Bidders (9.04) (15.93) Amount Demanded (Mn.Birr) 35.60 36.57 28-day bill 87.58 64.71 91-day bill 20.30 62.96 182-day bill 47.00 26.19 364-day bill 23.75 17.16 Amount Supplied (Mn.Birr) 57.82 6.01 28-day bill 157.07 9.43 91-day bill 88.75 19.42 182-day bill 55.30 0.71 364-day bill 14.42 (3.01) Amount Sold (Mn.Birr) 37.02 38.49 Banks (16.33) 19.78 Non-Banks 140.36 54.79 Redemption (Mn. Birr) 79.56 24.93 Banks 24.23 (3.89) Non-Banks 177.15 63.75 NetAmount (Mn. Birr) (46.22) 375.04 Banks (88.53) (131.98) Non-Banks 53.16 25.35 28-day bill (0.07) 0.00 91-day bill 0.05 0.03 182-day bill (0.11) (0.11) 364-day bill (0.19) (0.09) 28-day bill 10.13 (0.59) 91-day bill (2.07) (1.33) 182-day bill 2.55 2.39 364-day bill 2.24 1.02 Banks 195,432.29 61.62 146,568.05 42.87 162,259.26 36.23 10.706 Non-Banks 121,737.30 38.38 195,301.48 57.13 285,543.59 63.77 134.557 46.207 Public Servants Social Security Agency 84,307.00 26.58 134,327.92 39.29 185,246.00 41.37 119.728 37.906 Development Bank of Ethiopia - 0.00 - 0.00 - 0.00 Private Organizations’ Employees Social Security Agency 37,330.30 11.77 60,873.56 17.81 93,961.00 20.98 151.702 54.354 Other Non-Bank Institutions 100.00 0.03 100.00 0.03 6,336.59 1.42 - ( In Million of Birr) Share % 41.187 30.986 Source: NBE Outstanding bills at the end of period(Mn.Br.) 317,169.585 Share % 341,869.525 Share % 447,802.850 9.466 9.480 9.707 9.303 9.416 9.512 8.634 9.565 9.508 10.433 10.354 10.217 Average Weighted Yeild for Successful bids(%) 9.459 9.704 9.736 2.93 0.33 95.493 95.486 95.383 91.510 91.416 91.336 99.342 99.272 99.276 97.465 97.484 97.516 Average Weighted Price for Successful bids(Birr) 95.953 95.914 95.878 (0.08) (0.04) 138,142.3 -49,564.2 15,851.2 58,817.350 71,864.175 90,082.110 139,419.0 235,962.1 386,395.7 196,959.64 22,299.94 105,933.32 385,308.990 553,781.400 691,863.775 245,890.0 317,819.3 305,468.1 384,032.3 268,255.1 321,319.3 198,236.3 307,826.2 476,477.8 312,244.4 368,343.6 357,271.6 582,268.625 576,081.340 797,797.090 224,773.8 355,267.6 424,265.5 248,645.6 383,427.1 386,158.3 858,468.750 1,278,068.290 1,354,852.165 72,805.0 171,030.0 187,156.8 147,606.1 171,949.9 216,976.9 196,825.1 207,891.3 243,562.6 Treasury Bill Particulars A 2021/22 2022/23 B C 2023/24 Percentage Change 187,382.6 138,331.1 225,427.6 586.00 634.00 533.00 599,478.625 595,231.335 812,892.090 67,664.8 77,059.0 126,925.0

52 | 2023/24 Annual Report Source: NBE 4.5.2. Bonds Market Commercial Bank of Ethiopia (CBE) purchased corporate bonds to the tune of Birr 12.0 billion showing a 55.7 percent annual decrease. During the same period, corporate bond valued at Birr 14.5 billion were redeemed, of which Birr 14.3 billion was by Addis Ababa City Administration, Birr 12.1 billion by EEP and Birr 210.72 million by regional governments (Table 4.16). Thus, in 2023/24, outstanding bond held by CBE showed a 2.1percent annual decrease and reached Birr 555.1 billion. The share of Liability & Asset Management Corporation in outstanding corporate bond was 49.9 percent followed by EEP (43.9 percent), and Addis Ababa City Administration (6.2 percent). 0.000 1.000 2.000 3.000 4.000 5.000 6.000 7.000 8.000 9.000 10.000 11.000

200,000.00 400,000.00 600,000.00 800,000.00 1,000,000.00 1,200,000.00 1,400,000.00 1,600,000.00 Annual weighted yield Value in Millions of Birr Year Fig.IV.9: Annual trends of T-Bills Market and its weighted yeild Demand Supply Average Weighted Yield

53 | 2023/24 Annual Report Table 13: Disbursement, Redemption and Outstanding of Coupon and Corporate Bond of CBE4 (In Millions of Birr) Percentage Change 2021/22 2022/23 2023/24 Actual A B

1. Corporate Bond Purchases by holders 64,444.24 27,103.01 12,000.00 (55.7) EEP 40,306.18 13,500.00 7,000.00 (48.1) Regional governments - - - - Development Bank of Ethiopia - - - - City Government of Addis Ababa 5,000.00 - Railway Corporation 19,138.06 8,603.01 - (100.0) Private Sector - - - - Liability & Asset Management Corp. - - - -
2. Redemption of Bonds by Clients 6,737.54 25,095.95 14,506.39 (42.2) EEP 3,250.00 - 12.09 - Regional governments 177.48 79.39 210.72 165.4 Development Bank of Ethiopia - - - - City Government of Addis Ababa 3,310.05 15,639.54 14,283.57 (8.7) Railway Corporation - 1,069.09 - (100.0) Private Sector - - - - Liability & Asset Management Corp. - 8,307.93 - (100.0)
3. Outstanding Bonds by Clients 502,578.44 567,138.25 555,131.86 (2.1) EEP 357,941.90 208,978.05 243,530.71 16.5 Regional governments 290.11 210.72 - (100.0) Development Bank of Ethiopia 0.00 0.00 - - City Government of Addis Ababa 53,822.14 43,692.22 34,408.65 (21.2) Railway Corporation 90,524.29 0.00 - - Private Sector 0.00 - - - Liability & Asset Management Corp. - 314,257.26 277,192.50 (11.8) Corporate Bond Issuer Annual B/A Source: Commercial Bank of Ethiopia 4.5.3. Inter-bank Money Market There has been no interbank money market transaction in 2023/24.

4 The reason for adjusting the total purchase and redemption amounts for FY 2022/23 was the exclusion corporate bond transfer ownership from state own enterprises to Liability and Asset Management corporation which was considered as purchase and redemption.

54 | 2023/24 Annual Report V. DEVELOPMENTS IN EXTERNAL SECTOR 5.1. Overall Balance of Payments The overall balance of payments registered USD 1.3 billion deficit in the 2023/24 compared to USD 752 million deficit a year earlier. This was attributed to widened current account deficit albeit the rise in capital account surplus. The current account deficit widened due to an increase in merchandise trade deficit and a decline in net private transfers. As a result, current account deficit (including official transfers) ratio to GDP reached 2.8 percent in 2023/24. On the other hand, capital account surplus increased by 16.4 mainly due to higher net surplus in official long term capital (15.5 percent) and foreign direct investment (13.9 percent) and decline in net deficit of other public sector long term capital (Table5.1).

55 | 2023/24 A n n u a l R e p o r t Table 5.1: Balance of Payments1

(In Millions of USD) S/N Particulars 2021/22 2022/23R 2023/24P Percentage Change A B C B/A C/B 1 Exports, f.o.b. 4,101.5 3,624.3 3,798.7 -11.6 4.8 Coffee 1,430.7 1,340.2 1,430.8 -6.3 6.8 Other 2,670.8 2,284.1 2,367.9 -14.5 3.7 2 Imports 18,128.0 17,148.5 18,441.1 -5.4 7.5 Fuel 3,460.4 3,966.5 3,608.7 14.6 -9.0 Cereals 2,179.8 1,038.7 678.6 -52.3 -34.7 Aircraft 140.7 164.0 622.3 16.5 279.5 Imports excl. fuel, cereals, aircraft 12,347.0 11,979.3 13,531.4 -3.0 13.0 3 Trade Balance (1-2) -14,026.5 -13,524.3 -14,642.4 -3.6 8.3 4 Services, net 639.2 950.1 1,278.0 48.6 34.5 Non-factor services, net 1,212.9 1,399.1 1,610.4 15.4 15.1 Exports of non-factor services 6,349.6 7,174.1 7,865.9 13.0 9.6 Imports of non-factor services 5,136.8 5,775.0 6,255.5 12.4 8.3 Income, net -573.7 -449.0 -332.4 -21.7 -26.0 o/w Gross official int. payment 579.5 504.9 430.0 -12.9 -14.8 Dividend, net 5 Private transfers, net 7,106.0 6,807.9 6,211.1 -4.2 -8.8 o/w: Private Individuals 5,251.5 4,657.7 5,443.5 -11.3 16.9 6 Current account balance excluding off. Transfers (3+4+5) -6,281.3 -5,766.3 -7,153.3 -8.2 24.1 7 Official transfers, net 1,136.3 1,093.3 1,236.4 -3.8 13.1 8 Current account balance including official transfers(6+7) -5,145.1 -4,672.9 -5,916.9 -9.2 26.6 9 Capital account 2,723.7 3,547.3 4,128.3 30.2 16.4 Off. Long-term Cap., net 450.8 546.5 631.2 21.2 15.5 Disbursements 793.5 975.6 1,125.4 22.9 15.4 Amortization 342.7 429.2 494.2 25.2 15.2 Other pub. Long-term cap. -1,005.9 -390.5 -219.2 -61.2 -43.9 Private sector, long term 86.2 101.0 72.7 17.2 -28.0 Foreign Direct Investment(net) 3,307.9 3,428.0 3,905.8 3.6 13.9 Short-term Capital -115.3 -137.7 -262.2 19.4 90.4 10 Errors and Omissions [11-(9+8)] 271.6 373.6 440.6 11 Overall balance (-13) -2,149.8 -752.0 -1,347.9 12 Financing (13+16) 2,149.8 752.0 1,347.9 13 Reserves [ Increase(-), Decrease (+)] (14+15) 2,149.8 752.0 1,347.9 14 Central Bank (NFA) 1,601.8 887.5 1,534.9 Asset 1,370.8 469.2 -403.1 Liabilities 231.0 418.2 1,938.0 15 Commercial banks (NFA) 548.0 -135.4 -186.9 16 Debt Relief Principal Interest Source: NBE Staff Compilation P 2023/24 data are Preliminary R Some items are revised

56 | 2023/24 A n n u a l R e p o r t Table 5.2: Components of Current Account as Percentage of GDP Particulars 2021/22 2022/23 2023/24 Percentage Change A B C B/A C/B Trade Balance -11.1 -8.3 -7.0 -25.3 -15.6 Net Services 0.5 0.6 0.6 15.1 4.9 Net Private Transfers 5.6 4.2 3.0 -25.8 -28.9 Net Official Transfers 0.9 0.7 0.6 -25.5 -11.8 Current Account Deficit (excluding official transfers) -5.0 -3.5 -3.4 -28.9 -3.3 Current Account Deficit (including official transfers) -4.1 -2.9 -2.8 -29.7 -1.3 Source: NBE Staff Compilation 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

57 | 2023/24 A n n u a l R e p o r t 5.2. Developments in Merchandise Trade 5.2.1. Balance of Trade Merchandise trade deficit widened to USD 14.6 billion from USD 13.5 billion a year earlier, as the increase in merchandise import bills outpaced that of export receipts. Consequently, merchandise trade deficit as a ratio of GDP narrowed to 7.0 percent from 8.3 percent a year ago. 5.2.2. Merchandise Export Total merchandise export earnings reached USD 3.8 billion, reflecting a 4.8 percent increase over the same period last year, driven by higher receipts from coffee (6.8 percent), gold (107.4 percent), oilseeds (29.2 percent), pulses (5.9 percent), electricity (36.0 percent), and live-animals (148.9 percent). On the other hand, export receipts from flower (17.2 percent), chat (33.6 percent), textiles and textile products (19.2 percent), fruits and vegetables (29.6 percent), meat and meat products (13.8 percent), leather and leather products (19.5 percent), and other export items (14.4 percent) showed negative growth. Export earnings from coffee rose 6.8 percent, driven by a 23.7 percent increase in export volume despite a 13.7 percent decline in international price. Thus, the share of coffee in total merchandise exports slightly increased to 37.7 percent from 37.0 percent a year ago. Gold export receipts surged 107.4 percent due to the 21.8 percent increase in export volume and 70.2 percent rise in international price. Hence, the share of gold in total merchandise export earnings doubled to 10.8 percent from 5.4 percent a year ago. Likewise, export revenue from oilseeds grew by 29.2 percent due to an increase in export volume (27.2 percent) and international price (1.5 percent). Accordingly, the share of oilseeds in total export earnings marginally rose to 8.8 percent from 7.1 percent a year earlier. Export earnings from live-animals rose by 148.9 percent due to more than fivefold increase in export volume despite 62.3 percent decline in international price. As a result, the share

58 | 2023/24 A n n u a l R e p o r t of live-animals in total merchandise export earnings slightly increased to 1.1 percent from 0.5 percent a year ago. Proceeds from export of pulses went up 5.9 percent, reaching USD 343.8 million due to a 7.5 percent growth in export volume, despite 1.5 percent decline in international price. Consequently, the share of pulses in total merchandise export earnings reached 9.1 percent. Similarly, total export earnings from electricity stood at USD 139.0 million, showing a 36 percent annual increase owing to higher export volume (1.7 percent) and international prices (33.7 percent). Thus, the share of electricity in total merchandise export earnings increased to 3.7 percent from 2.8 percent a year ago. On the other hand, flower export earnings fell by 17.2 percent due to a 2.0 percent decline in international price and 15.5 percent drop in export volume. Hence, the share of flowers in total merchandise export earnings decreased to 12.4 percent compared to 15.7 percent during the same period last year. Similarly, export earnings from chat dropped 33.6 percent due to 49.4 percent fall in export volume, despite 31.3 percent rise in the international price. Consequently, the share of chat in total merchandise exports fell to 4.3 percent from 6.8 percent a year ago. Export earnings from leather & leather products decreased 19.5 percent as export volume declined by 3.6 percent and international price by 16.5 percent. As a result, their share in total merchandise export earnings stood 0.5 percent. Export revenue from meat & meat products went down (13.8 percent) owing to the decline in export volume and international price (10.1 percent). Hence, the share of meat & meat products in total merchandise export earnings was 1.9 percent. Receipts from textile & textile products’ export declined (19.2 percent) due to the fall in export volume (1.8 percent) and international price (17.7 percent). As a result, the share of textiles & textile products in total merchandise export was 3.2 percent. Similarly, revenue from export of fruits & vegetables declined by (29.6 percent)

59 | 2023/24 A n n u a l R e p o r t as a result of a slowdown in international price (32.5 percent) despite an increase in export volume (4.3 percent). As a result, the share of fruits & vegetables in total merchandise export receipts stood at 1.7 percent. Furthermore, earnings from other export items declined (14.4 percent) to USD 189.9 million. Table 5.3: Values of Major Export Items (In millions of USD) Particulars 2021/22 2022/23 2023/24 Percentage Change A %share B %share C %share B/A C/B Coffee 1,430.7 34.9 1,340.2 37.0 1,430.8 37.7 (6.3) 6.8 Oilseeds 265.7 6.5 258.0 7.1 333.2 8.8 (2.9) 29.2 Leather and Leather Products 33.2 0.8 24.7 0.7 19.9 0.5 (25.5) (19.5) Pulses 218.9 5.3 324.5 9.0 343.8 9.1 48.2 5.9 Meat & Meat Products 109.6 2.7 81.7 2.3 70.4 1.9 (25.5) (13.8) Fruits & Vegetables 87.8 2.1 92.5 2.6 65.1 1.7 5.3 (29.6) Textile & Textile Prod. 175.6 4.3 148.7 4.1 120.1 3.2 (15.3) (19.2) Live Animals 29.2 0.7 17.5 0.5 43.5 1.1 (40.1) 148.9 Chat 391.6 9.5 247.5 6.8 164.5 4.3 (36.8) (33.6) Gold 546.4 13.3 197.0 5.4 408.6 10.8 (63.9) 107.4 Flower 541.6 13.2 567.8 15.7 469.9 12.4 4.8 (17.2) Electricity 93.5 2.3 102.2 2.8 139.0 3.7 9.3 36.0 Others 177.7 4.3 222.0 6.1 189.9 5.0 24.9 (14.4) Total Export 4,101.5 100.0 3,624.3 100.0 3,798.7 100.0 (11.6) 4.8 Source: Ethiopian Customs Commission, NBE and Ethiopian Electric Power

60 | 2023/24 A n n u a l R e p o r t Source: NBE Staff Computation Source: NBE Staff Computation 0 200 400 600 800 1,000 1,200 1,400 1,600 (Millions USD) Fig.V.2: Foreign Exchange Earnings from Selected Export Items Coffee Oil Seeds Leather & Leather Products Pulses Flower Gold Chat Coffee 42.0% Oilseeds 9.8% Pulses 10.1% Live Animals 1.3% Chat 4.8% Gold 12.0% Flower 13.8% Leather & Leather Products 0.6% Others 5.6% Fig.V.3: Export Share of Selected Commodities (FY2023/24)

61 | 2023/24 A n n u a l R e p o r t Table 5.4: Volume of Major Exports (In millions of kg unless stated otherwise) Particulars 2021/22 2022/23 2023/24 Percentage Change A B C B/A C/B Coffee 303.24 241.70 298.97 (20.3) 23.7 Oilseeds 172.14 150.29 191.17 (12.7) 27.2 Leather and Leather Products 2.24 1.70 1.63 (24.3) (3.6) Pulses 213.87 396.22 425.99 85.3 7.5 Meat & Meat Products 19.01 11.53 11.06 (39.4) (4.0) Fruits & Vegetables 222.65 177.24 184.84 (20.4) 4.3 Textile & Textile Prod. 35.23 31.38 30.81 (10.9) (1.8) Live Animals 17.27 7.87 51.99 (54.4) 560.4 Chat 56.33 31.31 15.84 (44.4) (49.4) Gold(In mn. of grams) 8.68 3.46 4.22 (60.1) 21.8 Flower 114.25 112.99 95.42 (1.1) (15.5) Electricity(In mn of kwh) 1,665.17 1,749.96 1,779.53 5.1 1.7 Source: Ethiopian Customs Commission and Ethiopian Electric Power Source: NBE Staff Computation 0 50 100 150 200 250 300 350 400 450 500 (Million Kg.) Fig.V.4: Export Volume of Selected Commodities Coffee Oil Seeds Leather & Leather Products Pulses Flower Gold Chat

62 | 2023/24 A n n u a l R e p o r t Table 5.5: Unit Value of Major Export Items (In USD/kg unless stated otherwise) Particulars 2021/22 2022/23 2023/24 Percentage Change A B C B/A C/B Coffee 4.72 5.54 4.79 17.5 (13.7) Oilseeds 1.54 1.72 1.74 11.2 1.5 Leather and Leather Products 14.81 14.58 12.17 (1.6) (16.5) Pulses 1.02 0.82 0.81 (20.0) (1.5) Meat & Meat Products 5.77 7.09 6.37 22.9 (10.1) Fruits & Vegetables 0.39 0.52 0.35 32.3 (32.5) Textile & Textile Prod. 4.98 4.74 3.90 (4.9) (17.7) Live Animals 1.69 2.22 0.84 31.3 (62.3) Chat 6.95 7.91 10.38 13.7 31.3 Gold(USD/grams) 62.95 56.93 96.91 (9.6) 70.2 Flower 4.74 5.02 4.92 6.0 (2.0) Electricity(USD/kwh) 0.06 0.06 0.08 4.0 33.7 Source: Ethiopian Customs Commission and Ethiopian Electric Power Source: NBE Staff Computation 0 20 40 60 80 100 120 (USD/Kg,, Gold (USD/Gm)) Fig.V. 5: Unit Value of Selected Export Commodities Coffee Oil Seeds Leather & Leather Products Pulses Flower Gold Chat

63 | 2023/24 A n n u a l R e p o r t 5.2.3. Import of Goods Total merchandise import bill reached USD 18.4 billion, reflecting a 7.5 percent annual growth due to higher import bills for capital goods, semi-finished goods, raw materials and miscellaneous goods. On the other hand, payments for consumer goods and fuel declined during the review period. Thus, the import-to￾GDP ratio declined to 8.8 percent from 10.5 percent a year ago. Capital goods import bill rose by 48.4 percent, as the value of transport and industrial capital goods increased by 66.6 percent and 46.4 percent, respectively while import value of agricultural capital goods declined (30.6 percent) during the review period. Consequently, the share of capital goods in total merchandise imports increased to 30.6 percent from 22.1 percent a year earlier. Likewise, semi-finished goods import bill reached USD 3.8 billion, reflecting a 16.7 percent annual increase as import bill for fertilizer grew (42.8 percent). As a result, the share of semi-finished goods in total merchandise imports rose to 20.6 percent from 19.0 percent last year. Import bill of raw materials increased by (10.0 percent) relative to the preceding year and accounted for 0.6 percent of the total merchandise imports. In contrast, consumer goods import decreased (12.9 percent) and reached USD 5.1 billion, owing to a decline in imports of durable goods (3.4 percent) and non-durable goods (16.0 percent). Hence, the share of consumer goods in total merchandise import decreased to 27.9 percent from 34.4 percent last year same period. Likewise, the value of fuel import fell (9.0 percent) to USD 3.6 billion due to a fall in international price (4.0 percent) and import volume (5.2 percent). Hence, the share of fuel in total merchandise import went down to 19.6 percent from 23.1 percent a year ago (Table 5.6).

64 | 2023/24 A n n u a l R e p o r t Table 5.6: Value of Imports by End Use (In Millions of USD) Source: Ethiopian Customs Commission and Ethiopian Petroleum Enterprise Categories 2021/22 2022/23 2023/24 Percentage change A % share B % share C % share B/A C/B Raw Materials 114.5 0.6 107.9 0.6 118.7 0.6 -5.8 10.0 Semi-finished Goods 3,748.2 20.7 3,258.2 19.0 3,802.3 20.6 -13.1 16.7 Fertilizers 1,385.0 7.6 921.0 5.4 1,315.3 7.1 -33.5 42.8 Fuel 3,460.4 19.1 3,966.5 23.1 3,608.7 19.6 14.6 -9.0 Petroleum Products 3,362.3 18.5 3,829.4 22.3 3,530.9 19.1 13.9 -7.8 Others 98.1 0.5 137.1 0.8 77.8 0.4 39.8 -43.3 Capital Goods 3,038.1 16.8 3,798.0 22.1 5,636.4 30.6 25.0 48.4 Transport 327.0 1.8 728.0 4.2 1,212.7 6.6 122.6 66.6 Agricultural 55.6 0.3 93.4 0.5 64.7 0.4 68.2 -30.8 Industrial 2,655.5 14.6 2,976.6 17.4 4,359.0 23.6 12.1 46.4 Consumer Goods 7,618.3 42.0 5,904.6 34.4 5,140.2 27.9 -22.5 -12.9 Durables 815.5 4.5 1,447.3 8.4 1,397.8 7.6 77.5 -3.4 Non-durables 6,802.8 37.5 4,457.3 26.0 3,742.4 20.3 -34.5 -16.0 Miscellaneous 148.5 0.8 113.3 0.7 134.7 0.7 -23.7 18.9 Total Import 18,128.0 100.0 17,148.5 100.0 18,441.1 100.0 -5.4 7.5

65 | 2023/24 A n n u a l R e p o r t 5.2.4. Direction of Trade 5.2.4.1. Export of Goods The major destinations5 for Ethiopian merchandise exports were Asia, Europe, Africa and America. Asia accounted for 40.8 percent of Ethiopia’s total exports. Saudi Arabia was the largest market for Ethiopia’s exports, with a 23 percent share in total export earnings from Asia, followed by the United Arab Emirates (14.3 percent), South Korea (9.2 percent), Japan (8.3 percent), China (6.9 percent), India (6.6 percent), Israel (6.4 percent), Pakistan (4.4 percent), Singapore (4.1 percent), Hong Kong (1.7 percent), Yemen (1.5 percent) and Indonesia (1.4 percent). These countries in total had a 89.4 percent share in Ethiopia’s total exports to Asia. Europe accounted for 35.9 percent of Ethiopia’s total export revenue, with the Switzerland taking a 30.1 percent, share followed by the Netherlands (24.2 percent), Germany (12.1 percent), Belgium (9.9 percent), Italy (5.6 percent), Turkey (4.3 percent), United Kingdom

5 Wheat & Hilina’s enriched foods sold to humanitarian organization operating in Ethiopia are included to export receipts and categorized under unspecified during 2023/24. (3.8 percent), France (2.9 percent), Russia (1.5 percent) and Spain (1.0 percent). These countries altogether constituted for 95.4 percent of Ethiopia’s total exports to Europe. About 12.1 percent of Ethiopia’s exports went Africa, mainly Djibouti (27.8 percent), Kenya (21.5 percent), Somalia (19.2 percent), Sudan (16.4 percent), Egypt (2.3 percent), South Africa (2.2 percent) and Morocco (2.0 percent) whose combined power was 91.4 percent of the total exports to Africa. America accounted for 8.1 percent of Ethiopia’s total export earnings, of which 86.4 percent was from exports to the United States and 7.6 percent to Canada. These two countries had 94.0 percent share in Ethiopia’s total exports to America.

66 | 2023/24 A n n u a l R e p o r t Source: NBE Staff Compilation 5.2.4.2. Import of Goods Asia accounted for 64.3 percent of Ethiopia’s total imports. The major imports from Asia originated from China (38.8 percent), India (14.7 percent), U.A.E. (14.6 percent), Saudi Arabia (10.1 percent), Malaysia (4.2 percent), Indonesia (3.4 percent), Thailand (1.7 percent), Kuwait (1.2 percent) and South Korea (1.1 percent). Their combined share stood at 89.6 percent. The share of Ethiopia’s total merchandise imports from Africa was 16.2 percent. The major countries of origin were Morocco (45.2 percent), Egypt (28.6 percent), Djibouti (13.5 percent), South Africa (4.8 percent), Nigeria (3.2 percent) and Kenya (2.8 percent), which together constituted 98.1 percent of the total imports from the continent. About 14.5 percent of Ethiopia’s import bill was from Europe were, with the major trading partner countries being Turkey (28.8 percent), United Kingdom (19.1 percent), Germany (10.2 percent), Italy (7.0 percent), Russia (6.8 percent), France (6.0 percent), Netherlands (4.0 percent), Belgium (2.5 percent), Rumania (2.2 percent) and Spain (2.4 percent). These countries jointly accounted for 88.6 percent of Ethiopia’s total imports from Europe. Imports from America accounted for 5.0 percent of the total import bill, of which the 12.1% 35.9% 8.1% 40.8% 0.8% 2.4% Fig.V.6: Export by Destination Africa Europe America Asia Oceania Unspecified

67 | 2023/24 A n n u a l R e p o r t share of the United States was 73.0 percent, followed by Brazil (19.8 percent), Canada (1.6 percent) and Mexico (1.2 percent). Source: NBE Staff Compilation 5.3 Services and Transfers 5.3.1 Services Net services account recorded USD 1.3 billion surplus compared with USD 950.1 million surplus a year ago. This was attributed to a 19.0 percent improvement in surplus of net transport services coupled with contraction in the deficit of net investment payments (26.0 percent) and other services (8.6 percent) while net travel services declined (4.5 percent). 16.2% 14.5% 64.3% 5.0% 0.1% Fig.V.7: Import by Origin Africa Europe America Asia Oceania

68 | 2023/24 A n n u a l R e p o r t Table 5.7 Services Accounts (In Millions of USD) No Particulars 2021/22 2022/23 2023/24 Percentage Change A B C D=B/A E=C/B 1 Investment Income (2+5) -573.7 -449.0 -332.4 -21.7 -26.0 2 Interest, net (3-4) -573.0 -447.4 -331.1 -21.9 -26.0 3 Credit 6.6 57.5 99.0 771.0 72.2 4 Debit 579.5 504.9 430.0 -12.9 -14.8 5 Dividend, net -0.7 -1.6 -1.3 121.1 -16.9 6 NON-FACTOR SERVICES, net (7-8) 1,212.9 1,399.1 1,610.4 15.4 15.1 7 Exports of non-factor services 6,349.6 7,174.1 7,865.9 13.0 9.6 Travel 1,028.4 1,140.5 1,274.0 10.9 11.7 Transport 1 4,751.2 5,479.2 5,946.6 15.3 8.5 Gov't 2 192.4 208.9 127.6 8.6 -38.9 Other 3 377.7 345.4 517.7 -8.5 49.9 8 Imports of non-factor services 5,136.8 5,775.0 6,255.5 12.4 8.3 Travel 563.5 614.0 771.0 9.0 25.6 Transport 1 3,648.1 4,124.9 4,335.0 13.1 5.1 Gov't 2 6.7 0.8 1.2 -88.0 54.9 Other 3 918.5 1,035.3 1,148.2 12.7 10.9 9 Net Services (10+11+12+13+14) 639.2 950.1 1,278.0 48.6 34.5 10 Travel 464.9 526.5 503.0 13.3 -4.5 11 Transport 1,103.1 1,354.3 1,611.6 22.8 19.0 12 Gov't 185.7 208.1 126.3 12.1 -39.3 13 Other -540.8 -689.9 -630.5 27.6 -8.6 14 Investment Income -573.7 -449.0 -332.4 -21.7 -26.0 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 (5.7 percent) and reached USD 7.4 billion in 2023/24. This was attributed to the fall in net private transfers (8.8 percent) despite an increase (13.1 percent) in net official transfers. Receipts from private transfers, which comprised 83.1 percent of total transfers during the period, have registered USD 6.3 billion (declined by 8.7 percent annually). On the other hand, net official transfers increased by 13.1 percent

69 | 2023/24 A n n u a l R e p o r t resulted from a reduction in transfer payments. Table 5.8: Unrequited Transfers (In Millions of USD) S/N Particulars 2021/22 2022/23 2023/24 Percentage Change A % share B % share C % share B/A C/B 1 Private Transfers, net

7,106.0

86.2

6,807.9

86.2

6,211.1

83.4 -4.2 -8.8 1.1 Receipts

7,119.8

83.6

6,849.9

83.9

6,254.9

83.1 -3.8 -8.7 NGO's

1,868.3

21.9

2,192.2

26.8

811.3

10.8 17.3 -63.0 Cash

698.6

8.2

780.3

9.6

741.0

9.8 11.7 -5.0 Food

1,169.7

13.7

1,411.9

17.3

70.4

0.9 20.7 -95.0 Other Private Individuals

5,251.5

61.7

4,657.7

57.0

5,443.5

72.3 -11.3 16.9 1.2 Payments

13.8

5.1

42.0

15.8

43.8

52.8 204.9 4.2 2 Official Transfers, net

1,136.3

13.8

1,093.3

13.8

1,236.4

16.6 -3.8 13.1 2.1 Receipts

1,394.5

16.4

1,317.9

16.1

1,275.5

16.9 -5.5 -3.2 Cash

1,331.7

15.6

1,317.9

16.1

1,275.5

16.9 -1.0 -3.2 Food Other

62.8 2.2 Payments

258.2

94.9

224.6

84.2

39.1

47.2 -13.0 -82.6 Total Receipts

8,514.3

100.0

8,167.8

100.0

7,530.4

100.0 -4.1 -7.8 Total Payments 272.0 100.0 266.5 100.0 82.9 100.0 -2.0 -68.9 3 Net Transfers

8,242.3

100.0

7,901.2

100.0

7,447.5

100.0 -4.1 -5.7 Source: National Disaster Risk Management Commission (NDRMC), MoF and NBE

70 | 2023/24 A n n u a l R e p o r t 5.4. Current Account The deficit in the current account balance, including official transfers, widened to USD 5.9 billion USD 4.7 billion last year due to widened merchandise trade deficit (8.3 percent) and decline in net private transfers (8.8 percent) while net service trade rose 34.5 percent and net official transfers 13.1 percent (Table 5.1). 5.5. Capital Account Net capital accounts, showed USD 4.1 billion surplus, which was 16.4 percent higher than that of last year. This was largely attributed to the rise in net official long term capital (15.5 percent) and net foreign direct investment (13.9 percent) coupled with a decline (43.9 percent) in net other public sector long term capital deficit. In contrast, short term capital outflow rose to USD 262.2 million from USD 137.7 million last year while private long term￾capital declined (28 percent) (Table 5.1). 5.6. Changes in Reserve Position Net foreign assets of the banking system recorded reserve drawdown of USD 1.3 billion. Thus, the draw down in net foreign assets of the National Bank of Ethiopia was USD 1.5 billion while that of commercial banks showed a USD 186.9 million build up (Table 5.1). 5.7. External Debt Ethiopia’s external debt stock reached USD 28.8 billion in 2023/24, depicting a 1.9 percent annual growth mainly due to an increase in multilateral creditors (1.8 percent) and bilateral (4.5 percent) albeit decline in commercial sources (1.7 percent). Hence, the country’s external debt stock to GDP ratio stood at 13.7 percent. Commercial debt stock reached USD 5.1 billion showing 1.7 percent annual reduction and accounted for 17.6 percent of the total debt stock. Of the total debt stock, 54.0 percent was owed to multilateral and the remaining 28.4 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 10.8 percent from 16.6 percent a year earlier (Table 5.9).

71 | 2023/24 A n n u a l R e p o r t Table 5.9: External Public Debt (In Millions of USD) Particulars 2021/22 2022/23 2023/24 Percentage Change A B C D=B/A E=C/B Annual Debt

1,175.6

1,612.5

1,386.4 37.2 -14.0 Debt Stock

27,953.1

28,249.2

28,795.0 1.1 1.9 Multilateral

14,707.6

15,280.5

15,562.6 3.9 1.8 Bilateral

7,982.4

7,801.4

8,150.6 -2.3 4.5 Commercial

5,263.1

5,167.3

5,081.8 -1.8 -1.7 Debt Services

2,139.9

1,790.1

1,265.3 -16.3 -29.3 Principal repayments

1,643.1

1,360.8

974.4 -17.2 -28.4 Interest payments

496.8

429.3

291.0 -13.6 -32.2 Debt Stock to GDP Ratio (in %) 22.0 17.3 13.7 -21.7 -20.5 Debt stock to export of goods and non￾factor services

2.7

2.6

2.5 -2.2 -5.6 Receipt from Goods & Non-factor Services

10,451.1

10,798.4

11,664.6 3.3 8.0 Debt service ratio (In percent )1/ 20.5 16.6 10.8 -19.0 -34.6 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

72 | 2023/24 A n n u a l R e p o r t 5.8. Developments in Foreign Exchange Markets 5.8.1. Developments in Nominal Exchange Rate In 2023/24, weighted average exchange rate of the Birr in the inter-bank foreign exchange market was Birr 55.9623/USD, depicting a 5.0 percent annual depreciation (Table 5.10). In the retail foreign exchange market, the average buying and selling rates (USD/ETB) of forex bureaus depreciated by 4.6 percent and 4.5 percent, respectively. 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 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 2023/24 55.9623 12.7 0.0 254.0 0.0 Qtr. I 54.9259 3.1 0.0 62.0 0.0 Qtr. II 55.6146 3.3 0.0 66.0 0.0 Qtr. III 56.3211 3.3 0.0 65.0 0.0 Qtr. IV 56.9876 3.1 0.0 61.0 0.0 Source: NBE, Foreign Exchange Monitoring & Reserve Management Directorate and Staff Compilation

73 | 2023/24 A n n u a l R e p o r t Table 5.11: End Period Mid-Market Rates (USD per Unit of Foreign Currency) Currency 2021/22 2022/23 2023/24 Percentage Change A B C B/A C/B Pound Sterling 1.2161 1.2659 1.2641 4.1 (0.1) Swedish Kroner 0.0984 0.0926 0.0943 (5.9) 1.9 Djibouti Franc 0.0056 0.0056 0.0057 (0.2) 1.0 Swiss Franc 1.0522 1.1176 1.1137 6.2 (0.3) Saudi Riyal 0.2665 0.2666 0.2666 0.0 (0.0) UAE Dirham 0.2722 0.0 0.0 Canadian Dollar 0.7775 0.7542 0.7300 (3.0) (3.2) Japanese Yen 0.0073 0.0069 0.0062 (5.4) (10.1) Euro 1.0527 1.0936 1.0695 3.9 (2.2) SDR 1.3363 1.3363 1.3075 0.0 (2.2) Source: Staff Compilation End-period mid-market exchange rate of the US dollar depreciated against the Swedish Kroner (1.9 percent) and Djibouti Franc (1.0 percent), whereas it appreciated against the Japanese Yen (10.1 percent), Canadian Dollar (3.2 percent), Euro (2.2 percent), SDR (2.2 percent), Swiss Franc (0.3 percent) and Pound Sterling (0.1 percent). However, USD remained stable vis-à-vis the Saudi Riyal and UAE Dirhams (Table 5.11).

74 | 2023/24 A n n u a l R e p o r t Table 5.12: End Period Mid-Market Rates (Birr per Unit of Foreign Currency) Currency 2021/22 2022/23 2023/24 Percentage Change A B C B/A C/B USD 52.2538 54.8673 57.6132 5.0 5.0 Pound 63.5459 69.4565 72.8288 9.3 4.9 Swedish Kroner 5.1426 5.0805 5.4349 (1.2) 7.0 Djibouti Franc 0.2932 0.3104 0.3259 5.8 5.0 Swiss Franc 54.9809 61.3180 64.1643 11.5 4.6 Saudi Riyal 13.9258 14.6290 15.3570 5.0 5.0 UAE Dirhams 14.2245 14.9364 15.6848 5.0 5.0 Canadian Dollar 40.6265 41.3812 42.0596 1.9 1.6 Japanese Yen 0.3829 0.3804 0.3589 (0.7) (5.7) Euro 55.0076 60.0029 61.6173 9.1 2.7 SDR 69.8267 73.3192 75.3292 5.0 2.7 Source: Staff Compilation Likewise, the Birr depreciated against almost all major international currencies, such as the Swedish Kroner (7.0 percent), Djibouti Franc (5.0 percent), Saudi Riyal (5.0 percent), USD (5.0 percent), UAE Dirhams (5.0 percent), Pound Sterling (4.9 percent), Swiss Franc (4.6 percent), SDR (2.7 percent), Euro (2.7 percent) and Canadian Dollar (1.6 percent), while it appreciated against Japanese Yen by 5.7 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 as result of higher domestic inflation and strengthening of US dollar relative to that of its major trading partners. However, the Birr exchange rate tended to depreciate in real terms during 2017/18, 2019/20 and 2021/22. Notably, during the FY2023/24, the Birr appreciated by 23.1 percent in real terms due to elevated domestic inflation and the appreciation of the Birr against its trading partners currencies. Likewise, the nominal effective exchange rate (NEER) of the Birr appreciated by 23.4 percent compared to 11.4 percent appreciation a year earlier (Table 5.13).

75 | 2023/24 A n n u a l R e p o r t Table 5.13: Trends in Real and Nominal Effective Exchange Rates Fiscal Year REERI NEERI Percentage Change REERI NEERI 2012/13 141.8 41.4 -0.3 -3.9 2013/14 143.8 39.8 1.4 -3.8 2014/15 162.4 41.5 12.9 4.2 2015/16 165.1 40.4 1.7 -2.8 2016/17 178.5 41.0 8.2 1.6 2017/18 169.2 34.7 -5.3 -15.4 2018/19 192.8 35.5 14.0 2.4 2019/20 202.4 31.5 5.0 -11.3 2020/21 192.6 25.4 -4.8 -19.2 2021/22 235.4 27.1 22.2 6.7 2022/23 305.5 30.2 29.7 11.4 2023/24 376.1 37.3 23.1 23.4 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 5.8.3. Foreign Exchange Transactions In 2023/24, USD 12.7 million was traded in the inter-bank foreign exchange market which was the same amount as 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 226.4 million from customers which was 23.1 percent higher than last year. Similarly, their foreign exchange sales increased by 13.6 percent to USD 252.7 million (Table 5.14).

76 | 2023/24 Annual Report Table 5.14: Foreign Exchange Transactions by Forex Bureaus of Commercial Banks (In millions USD) Name of Forex Bureau 2021/22 2022/23 2023/24 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 136.3 39.0 142.7 127.3 192.3 169.4 34.8 33.1 Bank of Abyssinia 4.1 17.1 1.1 17.8 0.5 17.3 -58.4 -2.9 Dashen Bank 14.2 14.8 13.9 17.3 19.4 15.6 39.9 -9.7 Awash International Bank 2.6 15.9 2.2 25.3 0.8 21.9 -62.5 -13.3 Wegagen Bank 6.7 4.0 1.3 4.9 0.4 2.9 -70.7 -41.6 United Bank 4.6 8.0 1.8 3.3 1.4 3.3 -19.4 -1.6 Development Bank 0.0 0.1 0.0 0.1 0.0 0.1 -88.3 103.9 Nib International Bank 11.4 3.1 2.2 3.7 0.2 1.5 -90.3 -61.1 Lion International Bank 0.4 0.3 0.7 0.4 0.8 0.6 20.8 69.7 Oromia International Bank 9.9 3.8 11.0 5.4 5.9 4.7 -46.3 -13.3 Zemen Bank 0.4 4.5 0.3 3.8 0.2 2.2 -35.5 -42.5 Cooperative Bank of Oromia 0.8 5.7 0.5 4.0 0.3 1.6 -29.8 -58.8 Buna International Bank 1.5 1.6 0.4 1.1 0.5 3.7 53.8 234.3 Birhan International Bank 2.7 3.1 0.5 3.2 0.1 1.9 -70.2 -41.8 Abay Bank 2.1 1.0 0.8 0.9 0.1 1.2 -85.5 29.6 Addis International Bank 3.6 1.3 2.1 1.2 0.4 1.1 -81.7 -7.1 Debub Global Bank 0.8 0.7 1.1 0.8 0.4 0.3 -65.3 -56.1 Enat Bank 1.7 1.1 1.0 0.9 0.7 0.6 -34.8 -39.0 Zamzam Bank 0.0 0.3 0.0 0.5 0.0 0.7 -63.5 37.0 Gohe Betoch Bank 0.0 - 0.0 0.1 0.0 0.1 109.7 -38.4 Hijra Bank 0.0 - 0.2 0.1 1.0 0.1 327.5 4.4 Amhara Bank - - 0.0 0.4 0.0 1.0 -65.6 158.2 Tsehay Bank - - 0.0 0.1 0.3 0.1 717.1 64.7 Siinqee Bank - - 0.0 0.0 0.4 0.6 893.3 Geda Bank - - 0.0 0.0 0.1 0.1 380.7 422.8 Ahadu Bank - - 0.0 0.2 46.4 1662.6 Sidama Bank - - 0.0 0.0 Tseday Bank - - 0.0 - 0.0 0.1 6387.9 Total 203.8 125.5 184.0 222.5 226.4 252.7 23.1 13.6 Average Exchange Rate 39.0406 39.8005 53.5595 54.6562 56.0276 57.1230 4.6 4.5 Source: Staff Compilation

77 | 2023/24 Annual Report VI. GENERAL GOVERNMENT FINANCE 7.1. General Overall fiscal operations of the general government resulted Birr 246.9 billion deficit which was higher than Birr 221.1 billion deficit a year ago. Its ratio to GDP was 2.1 percent compared to (2.5 percent) a year earlier. General government revenue (excluding grants) increased by 22.6 percent (Table 6.2) and its ratio to GDP stood at 7.1 percent (Table 6.1). Similarly general government expenditure rose by 19.3 percent (Table 6.3) and its ratio to GDP was 9.5 percent (Table 6.1). During the review period public debt-to￾GDP ratio was 32.9 percent (Table 6.1). Table 6.1: Measuring Fiscal Sustainability (In Percent) Fiscal Year PD/GDP IP/RR DDebt/GDP PDebt/GDP R(Debt) R(GDP) Exp/GDP Rev/GDP R(OR) 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 54.1 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 28.6 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 28.0 39.6 26.6 41.7 10.8 7.9 26.9 2023/24 -2.1 8.2 23.8 32.9 14.5 34.7 9.5 7.1 22.6 Source: NBE Staff Computation Footnotes: PD = Primary Deficit IP/RR = Share of interest payments in Recurrent revenue D 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

78 | 2023/24 Annual Report 7.2. Revenue and Grants General government revenue (including grants) was Birr 873.1 billion and depicting a 21.7 percent annual growth. Total domestic revenue reached Birr 840.0 billion of which 85.2 percent was derived from taxes, and the remaining Birr 123.9 billion (14.8%) from non￾taxes. Tax revenue rose by 20.7 percent due to a 29.0 percent increase in direct tax revenue which constituted income tax, profit tax and urban & rural land use fees. Income tax and profit tax accounted for 97.0 percent of the direct taxes while the remaining 3 percent was from urban & rural land use fees. Revenue from indirect tax stood at Birr 375.5 billion during the review period. The share of indirect tax in total tax revenue reached 52.4 percent of which about 47.5 percent was collected from import duties. Revenue from indirect taxes grew 5.9 percent on annual terms. Meanwhile, non-tax revenue was Birr 123.9 billion about 34.4 percent higher than a year ago mainly due to improvement in reimbursement and property sales. External grants stood at Birr 33.0 billion showing a 2.8 percent annual growth. The share of total revenue in GDP was 22.6 percent (Table 6.1). All in all, the performance of total revenue, including grants, was 89.7 percent of the annual budget (Table 6.2).

79 | 2023/24 Annual Report Table 6.2: Summary of General Government Revenue by Component (In Millionsof Birr) Particulars 2022/23 2023/24 Percentage Change Performance [A] [B] [C] Rate Pre. Act Budget Pre. Act [C/A] [C/B] Total Revenue and Grants 717,586.7 973,158.2 873,126.5 21.7 89.7 Total Domestic Revenue 1/ 685,459.1 932,038.5 840,094.8 22.6 90.1 Tax Revenue 593,232.1 774,416.4 716,172.2 20.7 92.5

1. Direct Tax Revenue 263,958.6 353,003.3 340,600.2 29.0 96.5 1.1 Income and Profit Taxes 254,984.3 337,876.4 330,391.6 29.6 97.8 Personal 108,234.1 130,979.5 142,491.9 31.7 108.8 Business 123,422.3 157,691.6 156,510.5 26.8 99.3 Others 2/ 23,327.9 49,205.3 31,389.3 34.6 63.8 1.2 Rural Land Use Fee 511.6 516.5 1,026.5 100.6 198.7 1.3 Urban Land Use Fee 8,462.7 14,610.3 9,182.0 8.5 62.8
2. Indirect Taxes 329,273.4 421,413.2 375,572.0 14.1 89.1 2.1 Domestic Taxes 160,720.8 233,824.4 197,033.0 22.6 84.3 2.2 Foreign Trade Taxes 168,552.6 187,576.4 178,503.6 5.9 95.2 Import 168,552.6 187,576.4 178,503.6 5.9 95.2 Export 12.4 35.5 286.6
3. Non-Tax Revenue 92,227.1 157,622.1 123,922.7 34.4 78.6 3.1 Charges and Fees 7,148.0 6,945.1 13,744.3 92.3 197.9 3.2 Govt. Invt. Income 3/ 16,679.0 23,474.4 16,465.7 (1.3) 70.1 3.3 Reimb. And Property Sales 1,477.5 2,059.1 4,805.0 225.2 233.4 3.4 Sales of Goods & Services 12,844.5 12,951.1 21,355.8 66.3 164.9 3.5 Others 4/ 54,078.1 112,192.3 67,551.9 24.9 60.2
4. Grants 32,127.6 41,119.6 33,031.7 2.8 80.3 Source: Ministry of Finance 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

80 | 2023/24 Annual Report 7.3. Expenditure Total general government expenditure was Birr 1,120.0 billion showing a 19.3% annual growth, due to increase in both current and capital expenditures. Current expenditure at Birr 652.6 billion was 12 percent higher than a year ago and its share in total expenditure reached 58.2 percent. Meanwhile, capital expenditure stood at Birr 467.4 billion which was 31.3 percent higher than last year same period (Table 6.3). The share of total expenditure in GDP was 9.5 (Table 6.1). In summary, total general government expenditure performance was 93.3 percent of the annual budget (Table 6.3). 0 100000 200000 300000 400000 500000 600000 700000 800000 900000 1000000 In million Birr Fiscal Year Fig.VI.1: Trend of General Government Revenue by Component ( In Million Birr) Total Revenue and Grants Tax Revenue Direct tax revenue Indirect tax revenue Non-tax revenue Grants

81 | 2023/24 Annual Report Table 6.3: Summary of General Government Expenditure (In Millions of Birr) Particulars 2022/23 2023/24 Percentage Change Performance [A] [B] [C] Rate Pre. Act Budget Pre. Act [C/A] [C/B] Total Expenditure

938,771.6

1,200,475.3 1,120,077.3 19.3 93.3

1. Current Expenditure

582,854.6

706,927.8

652,619.7 12.0 92.3 General Services

215,850.3

179,175.4

230,741.7 6.9 128.8 Economic Services

55,863.0

81,574.3

63,103.7 13.0 77.4 Social Services

217,279.4

244,902.3

247,932.4 14.1 101.2 Interest and Charges

54,544.0

105,470.0

68,888.3 26.3 65.3 External Assistance1/ Social Safety Net - - Others (miscellaneous)

39,317.9

95,805.8

41,953.6 6.7 43.8 2. Capital Expenditure

355,917.0

493,547.5

467,457.6 31.3 94.7 Economic Development

216,131.9

278,620.0

275,982.7 27.7 99.1 Social Development

74,773.2

83,897.2

92,963.5 24.3 110.8 General Development

65,011.8

131,030.3

98,511.4 51.5 75.2 3. Special programs - - - Source: Ministry of Finance Note: 1/ Includes mapping, science and technology, public buildings, etc.

82 | 2023/24 Annual Report 0.0 200000.0 400000.0 600000.0 800000.0 1000000.0 1200000.0 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 In Million Birr Fig.VI.2: Trends in General Government Expenditure by Component Total Expenditure Current Expenditure Capital Expenditure

83 | 2023/24 Annual Report 7.4. Deficit Financing The general government fiscal operations resulted in a deficit of Birr 246.9 billion which was 11.6 percent higher than that of a year earlier. The primary balance defict to GDP ratio was 2.1 percent compared to 2.5 deficit of a year ago. The deficit was financed by net domestic and external borrowings (Table 6.4).

5.0 10.0 15.0 20.0 25.0 30.0 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 2023/24 In Percent of GDP Fiscal Year Fig.VI.3: Trends in General Government Expenditure and Revenue (% of GDP) Expenditure/GDP Revenue/GDP

84 | 2023/24 Annual Report Table 6.4: Summary of General Government Finance (In Millions of Birr) Particulars 2022/23 2023/24 Percentage Change performance rate [A] [B] [C] Pre. Act Budget Pre. Act [C/A] [C/B] Total Revenue and Grants 717,586.7 973,158.2 873,126.5 21.7 89.7 Revenue 685,459.1 932,038.5 840,094.8 22.6 90.1 Grants 32,127.6 41,119.6 33,031.7 2.8 80.3 Total Expenditure 938,771.6 1,200,475.3 1,120,077.3 19.3 93.3 Current Expenditure 582,854.6 706,927.8 652,619.7 12.0 92.3 Capital Expenditure 355,917.0 493,547.5 467,457.6 31.3 94.7 Special Programs Overall Surplus/ Deficit (Including Grants) (221,184.9) (227,317.1) (246,950.7) 11.6 108.6 (Excluding Grants) (253,312.4) (268,436.8) (279,982.5) 10.5 104.3 Total Financing 221,184.9 227,317.1 246,950.7 11.6 108.6 Net External Borrowings 28,641.6 (11, 376.3) 29,289.1 2.3 (257.5) Gross Borrowing 51,842.7 39,007.7 52,615.4 1.5 134.9 o/w Special Programs Amortization Paid 23,201.1 50,384.0 23,326.3 0.5 46.3 HIPC relief & MDRI Net Domestic Borrowings 214,243.1 238,693.4 228,045.2 6.4 95.5 Banking System 141,728.9 139,753.1 (1.4) Non-Banking Systems 72,514.2 88,292.1 21.8 Privatization Receipts - - - Others and Residuals (21,699.9) (10,383.6) (52.1) Source: Ministry of Finance

85 | 2023/24 Annual Report Fig.VI.4: General Government Deficit Finance of F.Y 2023/24 7.5. General Government Public Debts Overall public sector debt reached Birr 3,863.9 billion and was 13.7 percent greater than a year earlier due to an increase in both domestic and external debt (Table 6.5). External debt was Birr 1,611.4 billion showing a 8.6 annual growth. Likewise, domestic debt stood at Birr 2,252.5 billion depicting a 17.6 percent year-on-year increase. Public debt as percentage of GDP was 32.9 percent (Table 6.1). Table 6.5: Summary of Total Public Debt by Components (In millions of Birr) Particulars 2022/23 2023/24 %age Change [A] [C] Actual Actual [C/A] Total Public Debt

3,399,275.4

3,863,984.2

13.7 External Debt 1,484,097.4 1,611,436.2

8.6 Domestic Debt 1,915,178.0 2,252,548.0

17.6 Source: NBE Staff Computation

500,000.0 1,000,000.0 1,500,000.0 2,000,000.0 2,500,000.0 (In Millions of Birr) Years Expenditure Deficit Revenue Including Grants

86 | 2023/24 Annual Report 0 500000 1000000 1500000 2000000 2500000 3000000 3500000 4000000 4500000 In million Birr Fiscal Year Fig.VI.5: General Government Public Debt by Componnents (In Million Birr) Total Public Debt External Debt Domestic Debt

87 | 2023/24 Annual Report VII. INVESTMENT In 2023/24, 101 projects registered by the Ethiopian Investment Commission and regional investment offices have become operational. All the investment projects were private. These projects had Birr 76 billion in investment capital showing 21.6 percent annual growth. Of the total investment projects, 49 projects were domestic (48.5 percent) with a capital of Birr 62.4 billion (82.1 percent); and 52 projects (51.5 percent) were foreign with a capital of Birr 13.6 billion. The average capital per project for domestic investors was Birr 1.3 billion and Birr 260.9 million for foreign investors, signifying that domestic investment projects were more capital intensive than the foreign ones. These investment projects have created new job opportunities for about 5,706 permanent and 2,169 casual workers (Table 7.1).

88 | 2023/24 Annual Report Table 7.1: Number of Projects, Capital and Jobs Created by Operational Investment (Capital in millions of Birr) 2021/22 2022/23 2023/24 Percentage change A B C Share C/A C/B

1. Total Investment Number 112 104 101 100 -9.8 -2.9 Capital 2,183.8 62,490.0 75,991.7 100 3,379.7 21.6 Permanent Workers 12,914 6,849 5,706 100 -55.8 -16.7 Temporary Workers 3,452 9,431 2,169 100 -37.2 -77.0 1.1. Total Private Number 112 104 101 100 -9.8 -2.9 Capital 2,183.8 62,490.0 75,991.7 100 3,379.7 21.6 Permanent Workers 12,914 6,849 5,706 100 -55.8 -16.7 Temporary Workers 3,452 9,431 2,169 100 -37.2 -77.0 1.1.1. Domestic Number 67 37 49 48.5 -26.9 32.4 Capital 862.1 5,026.2 62,422.4 82.1 7,141.1 1,141.9 Permanent Workers 1,973 915 316 5.5 -84.0 -65.5 Temporary Workers 228 6,619 339 15.6 48.7 -94.9 1.1.2. Foreign Number 45 67 52 51.5 15.6 -22.4 Capital 1,321.8 57,463.7 13,569.3 17.9 926.6 -76.4 Permanent Workers 10,941 5,934 5,390 94.5 -50.7 -9.2 Temporary Workers 3,224 2,812 1,830 84.4 -43.2 -34.9 1.2.Public Number - - - - - - Capital - - - - - - Permanent Workers - - - - - - Temporary Workers - - - - - - Source: Ethiopian Investment Commission

89 | 2023/24 Annual Report Fig.VII.1: Number of Operational Investment Projects by Type Source: Ethiopian Investment Commission Fig.VII.2: Capital of Operational Investment Projects by Type Source: Ethiopian Investment Commission 913 47 752 67 37 49 63 37 33 45 67 52 0 100 200 300 400 500 600 700 800 900 1000 2018/19 2019/20 2020/21 2020/22 2022/23 2023/24 Number of projects Domestic Foreign Public 7,839 675 31,106 862 5,026 62,422 1,115 645 2,968 1,322 57,464 13,569 0 10000 20000 30000 40000 50000 60000 70000 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 Millions of Birr Domestic Foreign Public

90 | 2023/24 Annual Report 7.1. Investment by Sector Of the total investment projects about 63.4 percent were in manufacturing, 19.8 percent in real estate, renting & business activities, 6.9 percent in construction, 5.9 percent in health and social work, 2 percent in hotels and restaurants; 1 percent each in education and other community, social & personal service activities. Specifically, of the total capital investment of the projects, construction sector alone constituted 79 percent whereas manufacturing accounted for 19.4 percent and real estate, renting & business activities 1.1 percent (Table 7.2). Fig.VII.3: Distribution of Operational Investment Capital by Sector in 2023/24 Source: Ethiopian Investment Commission Others*: Hotel & restaurants, Education and Health & social work and others Manufacturing 19% Real estate, renting and business activities 1% Construction 79% Others* 1%

91 | 2023/24 Annual Report Table: 7.2: Numbers and Capital of Operational Investment Projects by Sector (Capital in millions of Birr) Sectors 2021/22 2022/23 2023/24 Percentage share No. of Projects Investment Capital No. of Projects Investment Capital No. of Projects Investment Capital No. of Projects Investment Capital Manufacturing 26 1,308.2 59 2,765.5 64 14,770.7 63.4 19.4 Agriculture, hunting and forestry 1 20.0 - - Real estate, renting and Business activities 23 130.7 14 56,150.9 20 810.9 19.8 1.1 Hotel and restaurants 1 105.4 2 30.4 2 157.3 2.0 0.2 Education 1 20.6 1 1,500.0 1 70.0 1.0 0.1 Health and social work 1 7.0 3 48.7 6 152.3 5.9 0.2 Construction 47 482.1 14 118.2 7 60,025.0 6.9 79.0 Tour operation, transport and communication 8 62.5 6 1,139.5 - - Whole sale, retail trade and repair service 1 1.7 - - Mining and quarrying - - Electricity, gas, steam and water supply - - Other community, social and personal service activities 1 5.5 1.0 0.0 Others 4 65.7 4 716.7 - - Grand Total 112 2,183.9 104 62,490.0 101 75,991.7 100.0 100.0 Source: Ethiopian Investment Commission

92 | 2023/24 Annual Report 7.2. Distribution by Region Out of the total projects that commenced operation in 2023/24, 49 projects (48.5 percent) with Birr 62.4 billion capital were established in Addis Ababa. The remaining 52 projects (51.5 percent) having Birr 13.6 billion capital went operational in multiregional projects (Table 7.4). Table 7.3: Number and Capital of Operational Projects by Region (Capital in millions of Birr) Regions

2021/22 2022/23 2023/24 Percentage share No. of projects Investment Capital No. of projects Investment Capital No. of projects Investment Capital No. of projects Investment Capital Tigray - - - - - - - - Afar - - - - - - - - Amhara 1 1.7 - - - - - - Oromia - - - - - - - - Somali - - - - - - - - Benishangu l-Gumuz - - - - - - - - SNNPR 1

105.4 - - - - - - Gambella - - - - - - - - Harari - - - - - - - - Addis Ababa 64

750.0 35 5,010.3 49

62,422.4 48.5 82.1 Dire Dawa - - - - - - - - Multiregion al Projects 46

1,326.8 69 57,479.7 52

13,569.3 51.5 17.9 Grand Total 112

2,183.8 104 62,490.0 101

75,991.7 100 100 Source: Ethiopian Investment Commission

93 | 2023/24 A n n u a l R e p o r t VIII. INTERNATIONAL DEVELOPMENTS 8.1. International Economic Developments 8.1.1. Overview of the World Economy Global growth is projected to marginally fall from 3.3 percent in 2023 to 3.2 percent in 2024 on annual average basis. While for advanced economies, the growth projection will improve from 1.7 percent in 2023 to 1.8 percent in 2024. On the other hand, for emerging market and developing economies, the growth outlook is projected to slow from 4.4 percent in 2023 to 4.2 percent in 2024. In the United States, projected growth for 2024 has been revised upward to 2.8 percent but lower by 0.1 percentage point in 2023, on account of stronger outturns in consumption and nonresidential investment. The resilience of consumption is largely the result of robust increases in real wages and wealth effects. In the Euro area, growth seems to have reached its lowest point in 2023. A touch weaker than projected in April and July 2024, GDP growth is expected to pick up to a modest 0.8 percent in 2024 as a result of better export performance, in particular of goods. Growth is expected to decelerate in Japan in 2024, with the slowdown reflecting temporary supply disruptions and fading of one-off factors that boosted activity in 2023, such as the surge in tourism. Growth in the Middle East and Central Asia is projected to pick up from an estimated 2.1 percent in 2023 to 2.4 percent in 2024, as the effect on the region of temporary disruptions to oil production and shipping are assumed to fade away. In Sub-Saharan Africa, GDP growth is similarly projected to increase, from an estimated 3.6 percent in 2023 to 4.2 percent in 2025, as the adverse impacts of prior weather shocks abate and supply constraints gradually ease. Besides, the ongoing conflict that has led to 26 percent contraction of the South Sudanese economy, the revision reflects slower growth in Nigeria, amid weaker than expected activity in the second half of the FY 2023/24.

94 | 2023/24 A n n u a l R e p o r t Table 8.1: Overview of World Economic Outlook and Projection (Annual Percentage Change) Particulars 2022 2023 Projection 2024 2025 World Output 3.6 3.3 3.2 3.2 Advanced Economies 2.9 1.7 1.8 1.8 United States 2.5 2.9 2.8 2.2 Euro Area 3.3 0.4 0.8 1.2 Japan 1.2 1.7 0.3 1.1 United Kingdom 4.8 0.3 1.1 1.5 Emerging Market & Developing Economies 3.2 4.4 4.2 4.2 Middle East and Central Asia 4.2 2.1 2.4 3.9 Sub-Saharan Africa 4.1 3.6 3.6 4.2 Nigeria 3.2 2.9 2.9 3.2 South Africa 1.3 0.7 1.1 1.5 World Trade Volume (goods & services) 5.7 0.8 3.1 3.4 Import Advanced Economies 7.2 -0.7 2.1 2.4 Emerging Market and Developing Economies 4.2 3.0 4.6 4.9 Export Advanced Economies 5.7 1.0 2.5 2.7 Emerging Market and Developing Economies 4.6 0.6 4.6 4.6 Commodity Prices (US dollars) Oil 8.8 -16.4 0.9 -10.4 Non- fuel (average based on world commodity import weights) -0.4 -5.7 2.9 -0.2 World Consumer Price 9.2 6.7 5.8 4.3 Advanced Economies 7.7 4.6 2.6 2.0 United States 8.0 4.1 3.0 1.9 Euro Area 8.4 5.4 2.4 2.0 Japan 2.5 3.3 2.2 2.0 Emerging Market & Developing Economies 10.5 8.1 7.9 5.9 China 1.9 0.2 0.4 1.7 Mexico 7.9 5.5 4.7 3.8 Turkey 72.3 53.9 60.9 33.0 Brazil 9.3 4.6 4.3 3.6 Russia 13.8 5.9 7.9 5.9 Sub-Sahara Africa 15.2 17.6 18.1 12.3 Angola 21.4 13.6 28.4 21.3 Nigeria 18.8 24.7 32.5 25.0 Ghana 31.9 39.2 19.5 11.5 Source: IMF, World Economic Outlook, October 2023 and October, 2024

95 | 2023/24 A n n u a l R e p o r t 8.1.2. World Trade Global trade is expected to continue to grow in line with GDP, reaching an average of 3.1 percent growth annually in 2024, following a period of near stagnation in 2023. Despite an increase in cross-border restrictions affecting trade between geopolitically distant blocs, the global trade-to-GDP ratio is expected to remain stable. 8.1.3. Inflation and Commodity Prices Global headline inflation is projected to decrease further, from an average of 6.7 percent in 2023 to 5.8 percent in 2024 in the baseline. Disinflation is expected to be faster in advanced economies with a decline of 2 percentage points from 2023 to 2024 than in emerging market and developing economies, in which inflation is projected to decline from 8.1 percent in 2023 to 7.9 percent in 2024. Inflation in emerging Asia is projected to be on par with that in advanced economies, at 2.1 percent in 2024 and 2.7 percent in 2025, due to monetary tightening and price controls in many countries in the region. In contrast, inflation forecasts for emerging and developing Europe, the Middle East and North Africa, and sub-Saharan Africa remain in double digit territory on account of large outliers amid pass-through of past currency depreciation and administrative price adjustment (Egypt). In the United States, headline consumer price inflation is expected to decrease from 4.1 percent in 2023 to 3.0 percent in 2024. Likewise, in Euro area headline inflation is expected to decline to 2.4 percent in 2024 from 5.4 percent in 2023. Headline inflation in Japan forecasted to decline by 2.2 percent in 2024 from 3.3 percent in 2023. In China inflation is expected to rise by 0.4 in 2024 and increase by 0.2 percent in 2023. Inflation is expected to rise in 2023 and 2024 in Sub-Saharan Africa, 17.6 percent and 18.1 percent, respectively. Oil prices are projected to rise by about 0.9 percent in 2024 from fall in 2023 by 16.4 percent. Likewise, nonfuel commodity prices are expected to rise in 2024 by 2.9 percent and decline by 5.7 in 2023.

96 | 2023/24 A n n u a l R e p o r t 8.1.4. Exchange Rate In foreign exchange markets, the euro appreciated slightly in trade-weighted terms but was broadly stable against the US dollar. 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 0.5 percent. The slight appreciation of the euro was mostly driven by gains against the currencies of several advanced economies. It appreciated by 5.2 percent against the Japanese yen, 1.3 percent against the Swiss franc, 1.2 percent against the Swedish krona and 1.1 percent against the Canadian dollar. These developments mainly reflected heterogeneous monetary policy developments. For example, the Swiss National Bank cut interest rates by 25 basis points to 1.5 percent in March, the Sweden Central Bank cut its key interest rate from 4.00 percent to 3.75 percent at its May meeting, and the Bank of Canada cut its interest rate by 25 basis points to 4.75 percent on 5 June. The euro depreciated by 0.4 percent against the pound sterling as market participants pushed back their expectations regarding the timing of potential policy rate cuts by the Bank of England. The euro remained relatively stable against the US dollar (-0.2 percent), despite some intra-period fluctuations. 8.2. Implications of International Economic Developments on the Ethiopia Economy During the FY 2023/24, despite slowdown, the global economy is estimated to grow while commodity prices, both oil and non￾oil commodities are expected to increase in 2024. Improvement in the global economy creates demand for our export commodities. This together with improvement in other economic activities helps Ethiopia to register robust economic growth. Meanwhile, higher price of non-oil commodities enforce the country to pay more for its capital goods import which in turn results in higher pressure in the country’s trade balance.

Table 1: GDP By Economic Activity at Constant Prices (In million Birr) 2010 2011 2012 2013 2014 2015 2016 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 Agriculture, Hunting and Forestry 599,331.4 622,220.3 648,711.8 684,775.8 726,412.8 771,163.0 824,259.4 Crop 392,291.8 404,049.6 422,966.5 446,919.4 477,801.1 511,777.5 551,862.1 Animal Farming and Hunting 154,038.0 163,279.5 168,722.4 178,571.3 186,759.1 195,057.3 205,367.7 Forestry 53,001.7 54,891.1 57,022.9 59,285.2 61,852.6 64,328.3 67,029.7 Fishing 1,546.7 1,581.8 1,625.9 1,653.4 2,015.5 2,794.3 3,621.0 Mining and Quarrying 3,402.8 2,658.9 5,089.3 10,960.7 11,624.5 10,796.1 12,779.1 Manufacturing 117,410.7 127,986.7 137,601.5 144,618.9 151,583.9 162,125.7 175,745.9 Large and Medium Scale Manufacturing 77,966.5 87,691.9 96,268.6 102,266.2 108,223.9 117,266.1 129,228.4 Small Scale and Cottage Industries 39,444.2 40,294.7 41,332.9 42,352.7 43,360.1 44,859.6 46,517.6 Electricity and Water 11,929.0 14,115.4 15,136.4 16,522.3 17,593.6 19,826.3 23,400.1 Construction 331,691.4 381,443.8 419,078.0 446,721.7 468,435.8 501,490.4 546,459.8 Whole Sale and Retail Trade 241,936.3 268,037.0 285,293.1 303,204.7 327,260.0 352,241.8 379,833.4 Hotels and Restaurants 44,335.3 48,143.8 49,220.4 50,484.9 54,536.5 60,146.9 65,644.1 Transport and Communications 241,936.3 104,436.2 105,646.1 113,090.7 124,120.5 139,047.5 154,861.1 Financial Intermediation 44,335.3 57,368.6 65,274.3 71,158.1 78,636.2 86,092.9 91,275.5 Real Estate, Renting and Business Activities 74,364.3 79,942.0 87,510.2 95,299.7 103,829.9 113,274.2 123,259.3 Public Administration and Defense 76,754.1 83,662.0 85,612.2 89,770.1 93,768.3 97,515.9 102,314.6 Education 42,520.8 44,221.6 44,784.1 45,694.9 46,432.3 47,583.1 48,786.2 Health and Social Work 18,153.4 20,747.2 23,414.2 26,554.3 29,413.0 32,650.5 36,311.2 Other Community , Social & Personal Services 20,178.0 21,454.2 21,995.5 22,426.8 22,890.2 23,400.6 24,072.7 Private Households with Employed Persons 17,276.0 17,707.4 18,115.5 18,515.9 18,939.5 19,329.1 19,726.7 Total 1,739,254.9 1,895,726.7 2,014,108.6 2,141,452.8 2,277,492.4 2,439,478.1 2,632,350.2 Less : FISIM 19,763.6 21,037.4 24,520.9 27,214.5 28,829.5 29,556.7 28,397.3 Gross Value Added at Constant Basic Prices 1,719,491.3 1,874,689.3 1,989,587.7 2,114,238.3 2,248,662.8 2,409,921.4 2,603,952.9 Taxes on Products 114,575.2 112,468.2 119,592.3 113,931.8 98,085.2 91,585.7 80,572.4 GDP at Constant Market Prices 1,834,066.5 1,987,157.5 2,109,180.1 2,228,170.1 2,346,748.0 2,501,507.2 2,684,525.2 Source: MoPD Sectors/Year

Table 2: Growth Rate of GDP By Economic Activity at Constant Prices (In Percent) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 Agriculture, Hunting and Forestry 2.3 6.7 3.5 3.8 4.3 5.6 6.1 6.2 6.9 Crop 3.4 8.2 4.7 3 4.7 5.7 6.9 7.1 7.8 Animal Farming and Hunting -1.5 4.2 0.6 6 3.3 5.8 4.6 4.4 5.3 Forestry 2.2 3.6 3.5 3.8 3.9 4.0 4.3 4.0 4.2 Fishing 0.1 0.5 11.3 2.3 2.8 1.7 21.9 38.6 29.6 Mining and Quarrying -3.3 -29.8 -20.8 -21.9 91.4 115.4 6.1 -7.1 18.4 Manufacturing 18.4 24.7 5.5 7.7 7.5 5.1 4.8 7.0 8.4 Large and Medium Scale Manufacturing 22.9 19.2 6.0 10 9.8 6.2 5.8 8.4 10.2 Small Scale and Cottage Industries 2.5 36.9 4.6 3 2.6 2.5 2.4 3.5 3.7 Electricity and Water 15.0 4.9 3.3 4 7.2 9.2 6.5 12.7 18.0 Construction 25.0 20.7 15.7 15 9.9 6.6 4.9 7.1 9.0 Whole Sale and Retail Trade 8.2 6.5 12.3 11.7 6.4 6.3 7.9 7.6 7.8 Hotels and Restaurants 15.6 0.1 6.5 9 2.2 2.6 8.0 10.3 9.1 Transport and Communications 13.7 15.1 6.4 21 1.2 7.0 9.8 12.0 11.4 Financial Intermediation 9.6 18.3 10.7 10.1 10.2 9.0 10.5 9.5 6.0 Real Estate, Renting and Business Activities 3.7 4.4 6.2 7.5 9.5 8.9 9.0 9.1 8.8 Public Administration and Defense 7.4 13.2 8.9 9 2.3 4.9 4.5 4.0 4.9 Education 8.8 -3.2 3.6 4 1.8 2.0 1.6 2.5 2.5 Health and Social Work 10.8 7.0 8.3 14.3 12.9 13.4 10.8 11.0 11.2 Other Community , Social & Personal Services 3.0 4.5 5.1 6.3 2.5 2.0 2.1 2.2 2.9 Private Households with Employed Persons 4.3 3.5 3.9 2.5 2.3 2.2 2.3 2.1 2.1 Total 8.0 10.2 7.8 8.9 6.2 6.3 6.4 7.1 7.9 Less : FISIM 16.9 17.6 16.0 7 14.2 11.0 5.9 2.5 -3.9 Gross Value Added at Constant Basic Prices 8.0 10.1 7.7 9.0 6.1 6.3 6.4 7.2 8.1 Taxes on Products 3.1 1.6 -5.0 -1.8 6.3 -4.7 -13.9 -6.6 -12.0 GDP at Constant Market Prices 7.6 9.5 6.8 8.3 6.1 5.6 5.3 6.6 7.3 Source: MoPD Industry/Year

Table 3: GDP by Economic Activity at Current Prices (In million Birr) 2010 2011 2012 2013 2014 2015 2016 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 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 4,087,852.8 Crop 427,193 587,216.0 797,015.6 1,122,637.7 1,639,822.3 2,189,185.1 2,880,082.2 Animal Farming and Hunting 191,867 247,337.3 303,074.1 385,788.3 523,066.6 731,290.9 949,484.2 Forestry 65,584 76,035.8 96,164.4 117,858.2 149,397.2 193,738.9 258,286.3 Fishing 2,351 3,020.6 3,747.5 5,034.3 5,351.5 7,481.6 10,084.5 Mining and Quarrying 4,053 3,368.1 9,643.4 30,909.1 34,587.9 29,329.9 50,066.7 Manufacturing 128,200 150,530.5 178,972.3 199,934.1 261,122.9 390,709.0 517,803.5 Large and Medium Scale Manufacturing 84,791 104,723.1 125,757.6 141,915.1 185,656.5 285,203.1 381,197.6 Small Scale and Cottage Industries 43,410 45,807.5 53,214.7 58,019.0 75,466.4 105,505.9 136,605.9 Electricity and Water 15,026 18,726.4 23,826.9 30,434.9 34,860.6 53,134.9 64,312.8 Construction 452,978 495,283.1 567,201.4 687,236.9 1,068,150.2 1,662,566.4 2,355,789.2 Whole Sale and Retail Trade 275,513 360,656.3 444,506.1 554,457.8 801,596.4 1,129,865.3 1,604,889.0 Hotels and Restaurants 53,441 66,596.7 79,304.1 95,766.7 129,976.7 195,338.3 271,055.2 Transport and Communications 82,947 99,884.4 140,312.7 183,481.3 251,762.7 314,877.2 381,487.4 Financial Intermediation 69,359 85,044.1 102,994.4 122,893.7 180,666.7 238,373.1 331,181.7 Real Estate, Renting and Business Activities 79,553 106,157.2 154,804.2 228,594.8 404,030.6 715,651.7 1,032,988.6 Public Administration and Defense 94,614 103,262.3 120,235.7 159,154.9 188,988.2 260,507.3 307,964.0 Education 75,776 85,738.9 94,199.3 116,406.3 127,857.9 164,357.3 214,067.8 Health and Social Work 24,100 27,328.0 34,927.8 40,104.3 47,995.9 60,118.6 72,311.6 Other Community , Social & Personal Services 23,634 28,140.8 33,305.6 39,400.7 49,977.4 66,077.1 87,645.1 Private Households with Employed Persons 25,428 31,181.0 38,264.3 45,764.8 67,753.0 80,607.1 112,313.4 Total 2,091,618 2,575,507.5 3,222,499.9 4,165,858.8 5,966,964.9 8,483,209.8 11,501,813.4 Less : FISIM 26,829 31,884.3 39,104.0 46,801.9 67,289.5 79,436.0 102,399.8 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 11,399,413.6 Taxes on Products 137,583 152,599.6 191,351.1 221,967.3 257,339.9 319,343.1 352,724.5 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 11,752,138.1 Source: MoPD Industry/Year 3

Table 4: Growth Rates of GDP by Economic Activity at Current Prices (%) 2009 2010 2011 2012 2013 2014 2015 2016 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 Agriculture, Hunting and Forestry 13.7 11.0 33.0 32.6 35.9 42.2 34.7 31.3 Crop 13.6 8.6 37.5 35.7 40.9 46.1 33.5 31.6 Animal Farming and Hunting 12.1 16.5 28.9 27.0 27.3 35.6 39.8 29.8 Forestry 18.9 11.6 16.2 26.5 22.6 26.8 29.7 33.3 Fishing 63.5 4.1 28.5 24.1 34.3 6.3 39.8 34.8 Mining and Quarrying -20.9 -16.3 -16.9 186.3 220.5 11.9 (15.2) 70.7 Manufacturing 27.0 13.1 17.4 18.9 11.7 30.6 49.6 32.5 Large and Medium Scale Manufacturing 21.2 13.4 20.2 20.1 12.8 30.8 53.6 33.7 Small Scale and Cottage Industries 40.1 12.4 3.0 16.2 9.0 30.1 39.8 29.5 Electricity and Water 24.5 9.6 20.7 27.2 27.7 14.5 52.4 21.0 Construction 26.4 50.9 9.3 14.5 21.2 55.4 55.6 41.7 Whole Sale and Retail Trade 11.3 22.4 32.4 23.2 24.7 44.6 41.0 42.0 Hotels and Restaurants 8.0 19.0 25.1 19.1 20.8 35.7 50.3 38.8 Transport and Communications 10.2 6.8 20.4 40.5 30.8 37.2 25.1 21.2 Financial Intermediation 30.3 33.9 22.6 12.2 19.3 47.0 31.9 38.9 Real Estate, Renting and Business Activities 5.6 12.4 33.4 45.8 47.7 76.7 77.1 44.3 Public Administration and Defense 29.8 17.1 9.1 16.4 32.4 18.7 37.8 18.2 Education 44.2 24.0 13.1 11.3 23.6 9.8 28.5 30.2 Health and Social Work 19.8 28.4 13.4 27.8 14.8 19.7 25.3 20.3 Other Community , Social & Personal Services 12.0 14.9 19.1 18.4 18.3 26.8 32.2 32.6 Private Households with Employed Persons 23.7 27.9 22.6 22.7 19.6 48.0 19.0 39.3 Total 17.7 21.4 23.3 25.3 29.3 43.2 42.2 35.6 Less : FISIM 30.3 42.2 22.0 13.8 19.7 43.8 18.1 28.9 Gross Value Added at Current Basic Prices 17.6 21.2 23.3 25.4 29.4 43.2 42.4 35.6 Taxes on Products 12.9 6.9 10.9 25.4 16.0 15.9 24.1 10.5 GDP at Current Market Prices 16.9 20.2 22.4 25.2 28.6 41.8 41.7 34.7 Source: MoPD Sectors/Year 4

Table 5: Summary of External Public Debt 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 (2009) (2010) (2011) (2012) (2013) (2014) (2015) (2016) EXTERNAL DEBT Disbursed (gross)* 539,568.8 703,675.6 782,908.8 1,008,444.2 1,287,609.8 1,453,387.7 1,542,242.5 1,648,933.4 Undisbursed n.a DRAWINGS (flow) 66,379.3 92,796.0 79,206.1 106,602.6 56,382.3 68,094.1 86,280.4 77,806.7 REPAYMENTS (1) -19,479.7 -30,619.4 -40,234.6 -44,671.8 -56,162.5 -81,216.9 -73,332.5 -55,332.7 DEBT SERVICING (2) 29,345.3 42,480.4 58,214.7 64,117.0 75,920.0 105,700.3 96,485.1 71,842.9 Principal 19,479.7 30,619.4 40,234.6 44,671.8 56,162.5 81,216.9 73,332.5 55,332.7 Interest (3) 9,865.6 11,861.0 17,980.1 19,445.1 19,757.5 24,483.4 23,152.6 16,510.1 DEBT SERVICE TO EXPORT OF GOODS RATIO 45.0 57.4 77.8 68.5 54.1 53.1 50.0 33.8 EXTERNAL DEBT TO TO GDP (%)** 29.4 32.0 29.1 29.9 29.7 23.6 17.7 14.0 EXPORT OF GOODS 65,167.1 74,044.8 74,807.7 93,641.5 140,326.9 199,197.1 193,112.4 212,581.9 GDP (Current Current Price) 1,832,786.0 2,200,120.6 2,690,751.4 3,374,746.9 4,341,024.2 6,157,015.2 8,723,116.8 11,752,138.1 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. 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 EFY (2009) (2010) (2011) (2012) (2013) (2014) (2015) (2016) TRADE BALANCE -289,030.5 -324,244.9 -349,149.7 -341,436.0 -417,133.0 -681,230.9 -720,612.8 -819,423.1 Export(f.o.b) 65,167.1 74,044.8 74,806.8 93,641.5 140,326.9 199,197.1 193,112.4 212,581.9 Coffee 19,795.6 21,905.1 21,436.5 26,824.8 35,480.3 69,485.1 71,409.4 80,069.0 Other Exports 45,371.5 52,139.7 53,370.3 66,816.7 104,846.6 129,712.0 121,703.0 132,512.9 Imports (c.i.f.) -354,197.6 -398,289.7 -423,956.5 -435,077.5 -557,459.9 -880,428.0 -913,725.2 -1,032,005.0 Fuel -40,876.9 -60,553.0 -72,961.5 -65,445.6 -75,723.5 -168,062.9 -211,347.1 -201,952.8 Other Imports -313,320.8 -337,736.7 -350,995.0 -369,632.0 -481,736.4 -712,365.1 -702,378.1 -830,052.2 Net Services -12,588.8 -5,221.1 -15,833.5 -6,862.8 516.4 31,043.4 50,623.7 71,521.6 Travel -951.7 7,146.7 6,225.9 10,431.2 26,800.9 22,577.5 28,054.5 28,148.9 Other Transportation 8,569.4 13,494.3 18,091.2 27,972.4 28,743.3 53,574.7 72,162.4 90,188.7 Government(n.i.e.) 8,625.2 5,641.9 7,935.0 1,878.4 6,314.9 9,019.8 11,089.2 7,070.4 Investment Income -11,214.0 -11,410.1 -16,925.9 -19,203.0 -22,380.5 -27,861.8 -23,923.3 -18,601.4 Other Services -17,617.7 -20,094.0 -31,159.7 -27,942.0 -38,962.2 -26,266.9 -36,759.2 -35,285.0 Net Goods & Services -301,619.3 -329,466.0 -364,983.2 -348,298.9 -416,616.7 -650,187.5 -669,989.2 -747,901.5 Private Transfers (net) 122,945.6 158,601.1 167,629.9 162,534.4 238,717.8 345,119.4 362,744.8 347,587.2 Current Account Balance -178,673.7 -170,864.9 -197,353.3 -185,764.5 -177,898.8 -305,068.1 -307,244.3 -400,314.3 Public Transfers (net) 32,014.6 32,678.7 58,540.8 47,797.8 53,408.5 55,185.3 58,256.0 69,192.8 Non Monetary Capital (net) 154,325.0 161,503.2 135,289.6 135,603.6 147,709.5 132,280.7 189,008.6 231,030.0 Public long-term (net)* 57,928.2 68,083.1 46,595.6 64,463.4 6,465.0 -22,774.0 13,692.7 27,127.0 Short-term 2,913.8 -3,792.1 4,099.0 -4,682.9 -13,081.3 -5,601.1 -7,339.7 -14,674.2 FDI 93,483.1 97,212.3 84,595.0 75,823.1 154,325.7 160,655.8 182,655.5 218,577.2 Net errors and Omissions 7,096.2 -28,580.3 -22,894.2 -23,758.0 -11,564.6 13,189.8 19,908 24,657 Overall Balance 14,762.1 -5,263.3 -26,417.1 -26,121.1 11,654.6 -104,412.4 -40,071.4 -75,434.2 Financing : -14,762.1 5,263.3 26,417.1 26,121.1 -11,654.6 104,412.4 40,071.4 75,434.2 Monetary Authorities (Reseves), net -14,762.1 5,263.3 26,417.1 26,121.1 -11,654.6 104,412.4 40,071.4 75,434.2 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 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 (2011) (2012) (2013) (2014) (2015) (2016) Coffee 21,490,708.9 27,044,310.5 36,367,828.0 70,175,272.0 71,425,122.0 80,334,996.8 Oilseeds 10,921,323.8 11,012,982.9 13,180,233.0 12,896,678.4 13,781,966.4 18,713,973.4 Leather and Leather products 3,285,473.7 2,208,391.3 1,425,336.1 1,609,850.6 1,315,467.5 1,109,860.8 Pulses 7,659,551.2 7,422,895.7 9,243,279.1 10,711,389.3 17,370,062.4 19,245,078.7 Meat Products 2,484,948.7 2,107,034.0 2,964,430.2 5,329,508.5 4,345,071.3 3,952,463.7 Fruits & Vegetables 1,709,468.5 1,834,795.4 2,730,982.1 4,272,817.6 4,921,869.7 3,634,417.8 Wheat 1,701,716.9 1,931,028.3 Sugar 106,710.5 45,089.5 7,832.9 614.7 15,127.5 - Gold 775,705.7 6,572,639.3 25,378,419.0 26,464,048.5 10,491,436.8 22,939,880.7 Oil Cakes - - - - - - Live Animals 1,287,954.6 1,671,076.6 1,758,839.4 1,437,406.1 931,096.6 2,439,267.3 Chat 8,511,121.5 10,116,170.9 15,808,881.6 18,910,324.2 13,154,557.3 9,186,207.9 Petroleum Products - - - - - - Bee's Wax 67,657.8 65,655.6 69,226.8 58,907.4 58,881.0 78,207.0 Tantalem 274,291.8 155,490.6 179,801.6 464,712.4 902,447.4 400,449.6 Cotton 8,572.2 8,218.7 - - - - Text. & Text. Prdts 4,296,263.5 5,235,336.0 5,725,100.5 8,529,908.7 7,911,617.6 6,718,196.9 Cereals and Flour 81,940.5 117,441.6 758,212.7 1,642,831.6 1,738,883.7 1,170,169.2 Natural Gum 144,922.8 157,838.7 137,246.6 107,704.1 55,155.3 141,890.9 Civet - - - - - - Hop - - - - - - Animal Fodder - - - - - - Natural Honey 13,468.4 16,439.3 3,036.6 10,592.0 11,932.7 11,378.5 Marble - - - - - - Flower 7,228,221.9 13,208,479.3 18,461,631.4 26,445,082.3 30,210,536.2 26,309,918.4 Beverage 114,745.8 111,398.5 191,924.6 223,891.9 270,324.6 207,914.3 Spices 381,907.9 432,708.0 620,629.5 807,366.2 559,747.4 449,071.1 Others 4,087,463.4 4,820,745.8 6,688,537.9 9,896,132.5 11,999,651.7 14,140,831.9 Others 16,631,798.2 24,264,096.5 32,766,121.4 48,128,221.7 53,660,296.8 49,549,820.6 RE-exports - - - - Total 74,932,423.0 94,365,138.3 141,701,409.6 199,995,038.97 193,172,672.28 213,115,202.95 Source: Ethiopian Customs Commission Commodity

Table 8: Quantity of Major Exports 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 (2011) (2012) (2013) (2014) (2015) (2016) Coffee 230,931.42 271,111.52 248,653.58 303,235.24 241,700.46 298,973.93 Oilseeds 260,001.58 236,504.53 245,479.33 172,139.72 150,286.63 191,172.23 Leather and Leather products 5,590.40 3,551.27 2,290.59 2,239.29 1,695.73 1,634.15 Pulses 462,821.56 354,010.48 280,603.44 213,873.61 396,224.76 425,986.37 Meat Products 17,719.23 12,819.96 14,631.78 19,012.08 11,527.96 11,064.75 Fruits & Vegetables 175,619.64 191,183.11 221,695.57 222,650.42 177,240.33 184,837.51 Wheat 62,478.90 61,380.00 Sugar 43,706.24 17,515.03 2,511.84 10.00 19.99 - Gold 0.82 3.32 9.56 8.68 3.46 4.22 Oil Cakes - - - - - - Live Animals 24,346.65 29,395.64 26,262.97 17,266.04 7,873.21 51,993.54 Chat 53,565.91 57,136.13 71,209.90 56,331.21 31,310.12 15,842.71 Petroleum Products - - - - - - Bee's Wax 283.18 258.01 229.00 158.02 139.22 182.00 Tantalem 386.20 76.08 66.77 161.47 1,534.87 643.19 Cotton 252.91 80.00 - - - - Text. & Text. Prdts 19,888.80 22,798.39 24,045.62 35,234.52 31,382.08 30,808.02 Cereals and Flour 3,579.95 4,670.14 25,144.37 38,367.58 39,005.50 27,952.16 Natural Gum 1,111.41 1,384.59 769.68 472.71 308.66 741.04 Civet - - - - - - Hop - - - - - - Animal Fodder - - - - - - Natural Honey 134.43 152.14 15.61 53.91 37.78 15.68 Marble - - - - - - Flower 57,849.31 94,389.84 101,578.88 114,253.02 112,989.70 95,422.48 Beverage 4,404.93 4,430.26 5,310.98 5,439.07 4,502.34 3,602.80 Spices 11,589.88 12,499.67 12,823.23 8,667.63 6,429.37 8,841.78 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. 2013/14 23,799,879 650,943 311,530 0 47,621,419 5,444,249 7,645,486 12,765,541 1,240,505 5,413,565 3,432,174 2014/15 30,357,773 741,101 361,694 0 39,838,009 5,978,499 10,163,376 13,831,268 1,491,622 5,027,503 3,272,983 2015/16 46,130,164 931,151 283,716 0 27,005,614 6,942,664 9,178,606 15,632,270 1,840,643 4,995,974 4,090,489 2016/17 36,937,090 1,021,284 335,255 0 39,143,280 7,049,394 8,357,496 16,839,378 1,881,779 5,675,631 4,563,315 2017/18 51,976,047 1,132,806 386,609 0 58,666,275 8,430,429 13,004,532 16,783,904 2,356,939 5,546,483 4,351,026 2018/19 47,707,851 911,322 538,742 0 69,942,603 10,157,084 14,224,840 25,225,831 2,534,964 6,046,906 5,517,578 2019/20 52,460,677 937,131 545,101 0 62,056,891 14,814,422 17,459,167 23,177,786 2,752,421 6,987,059 6,546,569 2020/21 115,413,573 1,025,316 226,742 0 72,597,464 15,834,849 23,105,655 28,787,491 3,547,952 7,116,242 4,414,868 2021/22 224,546,575 1,311,170 307,030 0 165,014,806 21,187,517 56,609,111 53,251,625 5,065,774 9,701,019 7,018,001 2022/23 169,395,504 1,401,202 387,024 0 203,796,295 25,763,430 48,809,161 42,049,276 5,018,930 10,245,933 10,989,265 2023/24 129,034,178 1,087,518 461,446 0 197,454,873 33,413,457 72,990,928 42,446,864 7,068,662 10,039,344 14,403,037 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 2013/14 3,816,304 7,518,452 1,078,169 30,632,913 37,788,049 25,240,309 14,834,215 9,221,445 9,338,872 23,274,978 261,847,552 2014/15 5,281,382 9,232,020 1,294,893 46,295,279 49,814,950 28,117,143 31,139,945 12,922,543 20,942,619 27,756,897 330,938,955 2015/16 4,915,012 11,425,975 1,454,583 47,654,788 61,867,497 30,925,871 23,695,862 22,888,268 21,260,461 32,785,280 353,016,619 2016/17 5,025,821 11,811,265 1,633,228 42,438,362 68,598,137 33,248,531 26,617,503 13,359,345 13,839,893 29,254,491 354,271,135 2017/18 4,868,804 14,346,572 1,811,641 38,679,936 73,281,243 31,088,474 24,436,467 21,755,870 7,109,710 38,909,858 397,167,756 2018/19 5,864,104 10,255,808 2,023,487 41,701,871 84,119,270 22,066,397 24,750,276 18,579,014 6,831,057 43,128,440 423,548,429 2019/20 8,113,212 10,003,402 2,572,077 48,808,346 70,717,290 28,759,387 21,929,987 26,430,475 7,724,018 45,824,410 432,189,352 2020/21 12,306,287 13,663,675 2,130,339 47,843,331 79,822,336 37,111,884 28,337,123 47,304,682 15,471,996 50,584,022 559,341,145 2021/22 16,878,751 12,391,137 3,112,041 53,040,562 72,902,784 54,660,015 34,904,262 88,848,225 17,314,918 74,802,391 884,019,490 2022/23 21,772,351 16,034,678 3,134,407 55,240,875 90,556,225 61,480,687 39,665,731 56,057,124 24,639,008 82,603,708 912,983,688 2023/24 23,033,249 15,486,339 3,511,605 70,188,048 183,946,693 61,037,438 56,970,215 42,567,573 22,745,093 87,437,728 1,032,756,715

• Included in "Food & Live Animals". ** Revisions have been made to the value of major imports for recent years Source: Ethiopian Customs Commission

Period Food & Live Animals Beverages Tobacco Petroleum Crude Petroleum Prod. Chemicals Fertilizers Medical & Pharm. Prod Soap & Polish Rubber Prod. 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 - 1,506,402.8 92,926.1 402,556.6 23,612.5 162,562.4 32,775.3 2013/14 1,882,941.2 17,798.7 2,172.1 - 2,623,450.8 171,106.5 853,656.1 33,495.0 43,254.6 73,698.0 2014/15 2,544,223.7 20,303.3 2,391.3 - 2,822,058.4 160,620.8 959,073.5 19,896.9 53,489.7 57,317.2 2015/16 4,415,089.9 24,227.3 1,769.5 - 3,043,561.0 196,917.3 883,747.8 21,089.8 71,682.4 62,919.2 2016/17 2,893,064.0 37,609.3 2,264.4 - 3,439,289.8 169,680.4 1,046,640.7 28,611.3 69,403.1 71,797.9 2017/18 3,617,742.9 42,302.6 1,536.2 - 3,770,588.9 192,699.7 1,318,169.2 21,339.7 78,927.2 60,383.1 2018/19 3,165,738.5 19,639.6 2,743.0 - 3,889,608.3 211,596.5 1,196,526.0 41,876.7 89,174.3 74,451.0 2019/20 5,273,106.5 17,298.1 2,472.1 - 3,867,196.1 752,107.0 1,534,659.8 34,002.1 87,389.8 90,271.5 2020/21 7,335,018.5 20,078.3 914.9 - 3,719,623.1 198,621.5 1,576,103.8 27,892.2 88,963.6 66,709.2 2021/22 7,264,669.4 9,245.1 566.7 - 3,911,168.8 209,641.1 1,349,231.7 33,901.9 77,009.2 58,016.6 2022/23 4,119,561.8 16,162.1 654.5 - 3,940,881.7 232,089.5 1,104,807.6 33,763.1 70,619.5 71,773.4 2023/24 3,422,125.7 6,821.6 1,186.0 - 3,813,830.9 253,016.3 2,260,862.5 34,188.4 108,874.5 92,279.8 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. 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 2013/14 150,904.4 55,403.9 64,820.9 67,452.6 1,440,073.2 324,447.8 189,586.4 175,816.2 1,077,855.8 16,479.2 2014/15 112,785.3 76,284.1 137,743.0 83,071.2 1,661,613.1 277,489.7 206,335.4 236,986.1 1,564,475.7 33,652.9 2015/16 148,315.8 79,714.5 95,612.7 88,331.3 2,196,125.4 242,898.0 233,784.1 142,044.1 3,076,636.9 29,489.2 2016/17 160,185.9 96,517.5 86,110.2 102,413.4 1,834,801.7 262,051.3 411,234.2 140,016.2 1,662,204.8 19,288.2 2017/18 123,871.3 93,108.0 92,008.5 92,111.8 1,431,550.6 239,803.2 433,689.6 117,945.4 2,235,344.9 18,784.8 2018/19 137,169.8 136,851.2 78,766.1 97,019.8 1,713,951.7 221,542.6 159,677.6 129,826.5 1,778,046.2 18,416.6 2019/20 164,476.5 114,236.8 57,163.9 120,799.1 1,830,641.4 206,076.5 184,945.3 128,567.3 2,594,477.8 18,880.1 2020/21 162,243.1 128,174.6 53,033.7 67,489.0 1,607,506.7 182,434.0 169,163.3 108,962.8 3,635,178.1 45,886.4 2021/22 97,879.0 144,133.4 47,851.6 64,564.7 1,002,703.2 157,202.8 194,261.3 78,849.3 3,621,673.8 13,710.2 2022/23 319,401.6 165,067.7 53,832.4 76,578.4 2,312,006.5 200,008.2 221,320.1 101,039.4 1,826,134.2 17,674.5 2023/24 153,086.5 167,547.0 52,550.6 77,297.1 5,983,138.8 215,630.3 446,368.6 120,504.1 1,569,130.9 19,749.5

• Included in "Food & Live Animals". ** Revisions have been made to the volumes of major imports for recent years. Source: Ethiopian Customs Commission (in Metric Tones) Table 10: Volume of Major Imports**

Table 11: Value of Imports, By End Use (In Millions of Birr) 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 (2010) (2011) (2012) (2013) (2014) (2015) (2016) RAW MATERIALS 3,617.87 4,233.32 5,070.88 5,400.91 5,577.02 5,752.90 6,637.16 SEMI-FINISHED GOODS 65,669.07 78,124.87 97,796.04 105,406.69 184,980.29 173,829.41 212,881.92 Chemicals 8,910.53 10,868.22 16,743.30 18,890.76 24,699.48 27,517.04 34,935.51 Fertilizers 13,001.60 14,219.85 19,517.00 28,031.17 70,195.28 49,289.35 73,629.55 Textile Materials 1,589.57 2,276.95 3,485.51 5,359.73 9,507.58 10,364.29 9,306.84 Others 42,167.37 50,759.84 58,050.24 53,125.03 80,577.94 86,658.73 95,010.02 FUEL 61,066.24 72,941.90 64,685.48 76,625.78 169,859.55 211,126.40 201,790.89 Crude Petroleum 1.80 0.88 1.96 10.32 7.18 7.64 1.43 Petroleum Products 58,666.28 69,942.60 62,056.89 72,597.46 165,014.81 203,796.30 197,454.87 Others 2,398.17 2,998.41 2,626.62 4,017.99 4,837.57 7,322.46 4,334.59 CAPITAL GOODS 136,684.08 140,735.46 128,229.80 151,669.63 148,132.94 202,143.52 316,022.14 Transport 29,339.13 39,925.34 12,249.42 13,690.16 15,688.20 38,728.67 67,904.99 Tyres for Heavy Vehicle 2,628.97 3,172.78 4,191.33 4,299.83 4,394.44 4,354.59 4,863.21 Heavy Road Motor Vehicle 18,666.44 11,547.46 5,652.14 2,954.13 4,175.33 25,107.09 27,390.18 Aircraft 7,529.52 24,230.88 2,033.72 5,328.32 6,624.19 8,685.05 34,843.03 Others 514.20 974.22 372.22 1,107.88 494.24 581.94 808.57 Agricultural 1,343.02 1,639.92 2,745.65 3,422.46 2,678.25 4,987.84 3,610.81 Industrial 106,001.93 99,170.20 113,234.74 134,557.01 129,766.49 158,427.01 244,506.34 CONSUMER GOODS 122,572.11 119,742.43 124,714.69 213,380.89 368,192.64 314,095.72 287,886.18 Consumer Durables 35,022.62 33,680.58 28,525.81 31,313.80 39,701.10 77,073.09 78,256.11 Radio & Television 2,836.57 3,417.15 1,947.48 2,061.47 2,348.43 6,094.82 6,064.65 Tyres, Cars & Other Veh. 1,624.56 1,511.83 1,596.76 1,477.42 2,202.90 2,321.72 2,470.57 Cars & Other Vehicles 12,001.85 10,008.97 3,455.56 812.32 852.77 34,113.23 32,164.87 Others 18,559.64 18,742.63 21,526.01 26,962.59 34,296.99 34,543.31 37,556.02 Consumer Non- Durables 87,549.49 86,061.85 96,188.88 182,067.09 328,491.55 237,022.64 209,630.07 Cereals 20,043.62 16,734.20 26,055.01 53,253.48 105,138.02 55,245.36 38,073.55 Other Food 16,254.14 15,615.52 16,738.49 32,012.30 68,806.45 56,686.47 46,976.84 Medical & Pharmaceutical 14,814.52 21,134.62 21,356.68 26,642.51 38,536.00 36,071.23 35,434.77 Textile Fabrics 14,797.76 11,089.56 12,300.45 18,599.28 16,603.16 22,416.79 26,614.19 Others 21,639.45 21,487.95 19,738.25 51,559.52 99,407.91 66,602.79 62,530.71 MISCELLANEOUS 7,558.39 7,770.44 11,692.47 6,857.24 7,277.05 6,035.74 7,538.43 TOTAL IMPORTS 397,167.76 423,548.43 432,189.35 559,341.15 884,019.49 912,983.69 1,032,756.71 Source: Ethiopian Customs Commission

Table 12: Value of Imports, By Country of Origin (Thousands of Birr) 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2010 2011 2012 2013 2014 2015 2016 Djibouti 7,704.7 269,433.1 1,226,327.9 5,657,336.4 20,613,926.2 24,598,623.6 22,685,971.5 Kenya 897,078.4 1,139,320.9 2,684,219.8 2,237,418.7 5,292,979.2 5,994,083.8 4,751,909.2 Sudan 2,514,988.8 2,303,850.5 2,297,293.8 1,107,245.5 176,219.6 220,345.5 521,997.5 U.A.E 14,836,084.5 15,454,092.5 17,334,298.2 36,910,293.4 60,220,789.4 76,635,417.1 97,053,418.3 France 4,812,648.4 4,356,532.7 8,262,606.0 7,481,685.2 6,609,334.3 8,948,029.7 8,917,660.1 Germany 7,334,813.3 9,022,326.3 9,223,187.9 8,345,258.5 8,779,107.1 8,611,306.9 15,293,673.9 Italy 13,678,281.2 9,589,278.4 8,205,642.8 13,317,722.6 9,137,982.9 10,925,653.4 10,439,604.9 Netherlands 6,219,422.6 5,204,068.3 4,682,694.0 3,780,241.5 7,141,614.2 5,542,764.6 5,909,852.5 U.K. 6,032,331.5 9,120,102.2 9,221,407.7 11,152,568.7 6,097,132.3 10,588,592.9 28,566,079.2 Russia 2,497,473.4 3,423,319.9 2,116,757.8 4,712,302.7 6,054,250.0 1,830,694.9 10,255,569.9 Yugoslavia 0.0 U.S.A. 31,005,628.8 38,173,429.8 33,171,144.1 38,100,962.8 48,138,146.4 56,476,065.0 37,753,489.1 China, P. Rep. 112,732,306.1 109,836,932.6 112,513,560.3 126,418,108.2 162,302,544.7 191,663,400.4 256,580,178.7 Japan 15,686,899.8 10,526,425.8 5,495,524.0 4,139,127.9 3,480,925.1 4,825,674.9 5,742,795.8 Saudi Arabia 10,323,358.3 6,858,830.0 14,260,963.3 19,549,678.9 57,856,736.4 77,470,351.8 66,529,107.6 Rest of the World 168,588,736 198,270,487 201,493,724 276,431,194 482,117,802 428,652,684 461,755,406 Total Import 397,167,755.6 423,548,429.5 432,189,352.0 559,341,145.1 884,019,489.6 912,983,688.2 1,032,756,714.7 Source: Ethiopian Customs Commission Countries

Table 13: Values of Export by Destination* (In Thousand of Birr) 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 (2010) (2011) (2012) (2013) (2014) (2015) (2016) Djibouti 3,312,767.9 3,572,337.4 3,702,736.4 4,497,508.4 7,134,466.7 8,051,547.1 7,165,380.0 Kenya 1,057,668.8 566,102.0 439,609.0 1,616,543.8 839,355.8 3,292,962.2 5,576,999.6 Sudan 2,690,709.5 1,945,939.4 2,168,104.2 3,168,442.1 3,966,853.4 4,351,639.7 4,216,179.5 U.A.E 2,890,041.4 3,660,308.4 3,936,157.3 7,145,156.7 9,434,519.7 10,633,544.9 12,439,831.2 France 815,455.0 556,438.0 890,052.7 2,181,537.6 1,930,292.0 1,886,179.7 2,238,755.1 Germany 4,729,675.7 3,117,963.9 5,026,821.2 5,745,974.7 13,556,631.8 10,822,944.7 9,294,839.7 Italy 1,485,535.5 1,195,539.3 1,401,024.7 2,839,821.4 3,960,106.1 3,713,587.7 4,287,362.5 Netherlands 5,001,313.7 5,843,402.3 9,670,552.9 10,695,072.7 18,873,683.5 21,196,275.4 18,490,906.6 U.K. 1,158,597.9 1,158,806.1 1,052,198.4 2,357,712.9 2,716,091.8 3,758,197.3 2,903,650.2 Russia 471,864.5 344,778.3 369,994.7 1,891,810.4 727,549.1 890,187.5 1,177,849.7 Yugoslavia 0.0 U.S.A. 6,053,876.5 5,308,192.0 5,031,320.4 8,495,485.6 17,573,400.6 16,892,648.6 14,858,588.2 China, P.Rep. 6,301,806.7 3,985,339.1 2,500,656.6 3,731,565.0 5,219,670.2 5,709,770.7 5,950,206.1 Japan 2,377,676.8 3,335,760.7 3,431,247.0 3,495,238.4 7,439,739.9 5,950,702.9 7,161,994.6 Saudi Arabia 4,971,483.0 5,022,828.1 6,349,911.2 7,463,486.1 13,653,789.9 17,402,426.7 19,943,751.6 Rest of the World 30,893,009.8 35,318,688.1 48,394,751.6 76,376,053.7 92,968,888.5 78,620,057.3 97,408,908.3 Total Export 74,211,482.8 74,932,423.0 94,365,138.3 141,701,409.6 199,995,039.0 193,172,672.3 213,115,203.0

• 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 (Thousands of Birr) 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 (2011) (2012) (2013) (2014) (2015) (2016) Djibouti 3,302,904.28 2,476,408.47 - 1,159,828.00 - 13,479,459.42 - 16,547,076.51 - 15,520,591.50 Kenya - 573,218.90 - 2,244,610.82 - 620,874.88 - 4,453,623.35 - 2,701,121.63 825,090.38 Sudan - 357,911.15 - 129,189.56 2,061,196.66 3,790,633.80 4,131,294.28 3,694,181.99 U.A.E - 11,793,784.02 - 13,398,140.88 - 29,765,136.69 - 50,786,269.76 - 66,001,872.23 - 84,613,587.19 France - 3,800,094.66 - 7,372,553.36 - 5,300,147.55 - 4,679,042.29 - 7,061,850.00 - 6,678,904.95 Germany - 5,904,362.33 - 4,196,366.66 - 2,599,283.75 4,777,524.67 2,211,637.74 - 5,998,834.18 Italy - 8,393,739.12 - 6,804,618.16 - 10,477,901.21 - 5,177,876.85 - 7,212,065.79 - 6,152,242.40 Netherlands 639,333.99 4,987,858.94 6,914,831.20 11,732,069.31 15,653,510.84 12,581,054.06 U.K. - 7,961,296.08 - 8,169,209.23 - 8,794,855.85 - 3,381,040.45 - 6,830,395.63 - 25,662,429.05 Russia - 3,078,541.61 - 1,746,763.03 - 2,820,492.31 - 5,326,700.95 - 940,507.41 - 9,077,720.23 Yugoslavia - - - - - - U.S.A. - 32,865,237.81 - 28,139,823.72 - 29,605,477.20 - 30,564,745.82 - 39,583,416.49 - 22,894,900.92 China, P.Rep. - 105,851,593.49 - 110,012,903.69 - 122,686,543.20 - 157,082,874.48 - 185,953,629.74 - 250,629,972.53 Japan - 7,190,665.14 - 2,064,277.06 - 643,889.53 3,958,814.73 1,125,028.00 1,419,198.86 Saudi Arabia - 1,836,001.89 - 7,911,052.11 - 12,086,192.84 - 44,202,946.47 - 60,067,925.08 - 46,585,356.02 Rest of the World - 162,951,798.52 - 153,098,972.87 - 200,055,140.29 - 389,148,913.26 - 350,032,626.28 - 364,346,498.08 Overall Trade Balance - 348,616,006.45 - 337,824,213.76 - 417,639,735.45 - 684,024,450.60 - 719,811,015.95 - 819,641,511.75 Source: Ethiopian Customs Commission Trading Country

Table 15: Components of Broad Money (In Millions of Birr) 1 2 3=1+2 4 5=3+4 1995/96 5,656.9 4,260.5 9,917.4 5,737.5 15,654.9 1996/97 5,176.3 4,847.7 10,024.0 6,524.8 16,548.8 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 2023/24 205,441.3 617,057.3 822,498.6 1,655,417.6 2,477,916.2 Source: National Bank of Ethiopia Broad Money End of Period Currency outside Banks Net Demand Deposit Narrow Money Quasi￾Money

Table 16: Domestic Credit by Sector (In Millions of Birr) 1=2+5 2=3+4 3 4 5=6to9 6* 7 8 9 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 2023/24 3,134,751.6 745,541.1 632,253.1 113,288.0 2,389,210.5 1,480,244.3 - 867,643.4 41,322.7

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

(In Millions of Birr) 1=2+6 2=3 to 5 3 4 5 6 7=8+9 8 9 10=11+12 11=2-9 12=6-8 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 2023/24 171,669.5 82,159.3 220.1 81,122.4 816.8 89,510.2 416,943.6 45,876.5 371,067.2 -245,274.1 -288,907.9 43,633.8 Source: National Bank of Ethiopia (NBE) Comm. Banks Table 17: Gold & Foreign Exchange Holdings of the National Bank of Ethiopia and Commercial Banks Net Gold & Foreign Exchange Foreign Liabilities End of Fiscal Year Total Liab. Comm. Banks NBE Total NBE Gross Total National Bank of Ethiopia International Reserves NBE Total Gold Foreign Exchange Reserve Tranche Gross Gold and Foreign Exchange Holdings CBs' Foreign Exchange

Table 18: Treasury Bills Auction Results Bank Non-bank Total Bank Non-bank Total Bank Non-bank Total 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 2023/24 1354852.2 270.0 263.0 533.0 333009.3 479882.8 812892.1 318159.3 479637.8 797797.1 9.816 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. Agriculture, hunting and forestry 536 1,862 3 5 27 2 - - - - - - Construction 3,368 1,788 100 168.0 1,837 961 30 24 765 355 11 14 Education 200 154 2 2.0 17 120 40 Electricity, gas, steam and water supply - - Fishing - - Health and social work 43 8 6 6 74 23 20 - 66 127 12 15 Hotels and restaurants 173 75 35 20 391 192 60 80 107 5 57 13 Manufacturing 15,918 5,142 2,858 1,387 6,657 2,116 8,747 1,566 5031 4445 5,045 1,690 Mining and quarrying 35 92 - - Other community, social and personal service activities 19 12 - - 14 5 Real estate, renting and business activities 2,269 1,303 52 41 1868 2362 1,109 426 625 4,375 567 432 Transport, Storage and Communication 44 121 0 807 388 3 2 65 32 Wholesale, retail trade & repair service 23 66 3 30 Others* 26 105 34 5 84 22 2,925 1,324 70 52 Grand Total 22,631 10,541 3,211 1,634 11,768 6,132 12,914 3,452 6,849 9,431 5,706 2,169 Sector 2014 (2021/22) 2015 (2022/23) 2016 (2023/24) 2011 (2018/19) 2012 (2019/20) 2013 (2020/21)

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 Agriculture, hunting and forestry 1.0 10.5 6.0 114.5 - - 1.0 20.0 - - Construction 15.0 135.5 224.0 1,799.1 47.0 482.1 14.0 118.2 7.0 60,025.0 Education 1.0 2.5 2.0 13.0 1.0 20.6 1.0 1,500.0 1.0 70.0 Electricity, gas, steam and water supply - - - - - - - - - - Fishing - - - - - - - - - - Health and social work 3.0 18.0 9.0 864.1 1.0 7.0 3.0 48.7 6.0 152.3 Hotels and restaurants 3.0 307.9 18.0 5,887.4 1.0 105.4 2.0 30.4 2.0 157.3 Manufacturing 42.0 710.1 242.0 12,097.0 26.0 1,308.2 59.0 2,765.5 64.0 14,770.7 Mining and quarrying - - - - - - - - - - Other community, social and personal service activities - - 1.0 5.0 - - - - 1.0 5.5 Real estate, renting and business activities 15.0 98.3 238.0 10,426.5 23.0 130.7 14.0 56,150.9 20.0 810.9 Transport, Storage and Communication 2.0 17.9 34.0 669.2 8.0 62.5 6.0 1,139.5 - - Wholesale, retail trade & repair service - - 3.0 381.5 1.0 1.7 - - - - Others* 2.0 19.6 8.0 1,816.1 4.0 65.7 4.0 716.7 - - Grand Total 84.0 1,320.3 785.0 34,073.4 112.0 2,183.9 104.0 62,490.0 101.0 75,991.7 Sector 2012(20189120) 2013(2020/2021) 2014(2021/2022) 2016(2023/2024) 2015(2022/2023)

Table 21: Number and Capital of 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 Addis Ababa 711 30,820 64 750.0 35 5010.3 49 62,422 Afar - - Amhara 41 285.2 1 1.7 B.Gumze - - Dire Dawa - - Gambella - - Harari - - Multiregional 33 2,967.7 46 1,327 69 57479.7 52 13,569 Oromia - - SNNPR 1 105.4 Somali - - Tigray - - Grand Total 785 34,073 112 2,184 104 62490.0 101 75,992 Sector 2013(2020/21) 2014(2021/22) 2015(2023/24) 2014(2021/22)