By Colleen Goko
July 15, 2025
JOHANNESBURG, July 15 (Reuters) - The International Monetary Fund (IMF) cautioned Ethiopia on Tuesday that its reform agenda under a $3.4 billion loan deal is facing challenges from declining donor support, despite the country's meeting key program targets.
Ethiopia remains in default and is seeking comparable debt relief from bondholders after agreeing terms in principle with official creditors earlier this year. "The outlook remains subject to downside risks given security challenges and declining donor support," said IMF Deputy Managing Director Nigel Clarke.
Foreign aid to Ethiopia has fallen from 12% of gross domestic product a decade ago to under 4%, with further cuts anticipated as agencies like USAID scale back. The IMF noted that one in five Ethiopians required food or humanitarian assistance this year, with the United Nations response plan underfunded and many programs relying on temporary waivers.
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https://www.reuters.com/world/africa/im ... 025-07-15/
