A high-level delegation from the International Monetary Fund (IMF) is in Ethiopia to discuss financial cooperation with government officials following the technical conclusion of the Fourth Review under the Extended Credit Facility (ECF). This visit builds on a constructive meeting last month between Prime Minister Abiy Ahmed and IMF Managing Director Kristalina Georgieva at the G20 summit in Johannesburg. However, no immediate consensus has been reached, with policy and technical differences persisting.
The high-level IMF delegation includes Deputy Director Nigel Clarke and African Department Director Abebe Aemro Selassie. This visit commenced on Thursday, December 4, with meetings held with Ethiopian officials such as Finance Minister Ahmed Shide, National Bank of Ethiopia Governor Eyob Tekalign, and Minister of Planning and Development Fitsum Adela, as stated in an official Ministry of Finance announcement.
The engagement follows a staff-level mission led by Alvaro Piris that concluded on November 13. Subsequently, the IMF announced that discussions would proceed virtually, noting that certain elements require further alignment before presentation to the IMF Executive Board.
Sources close to the talks indicate substantial differences between Ethiopian authorities and the IMF, though specific technical areas remain undisclosed. Ethiopia has expressed intentions to secure enhanced financial support from the institution.
Economic analysts point to Addis Ababa's interest in modifying the timing or sequence of structural reforms within the ECF program. Key benchmarks include monetary policy adjustments, such as eliminating quantitative credit caps, and ensuring the operational effectiveness of the foreign exchange market.
“The ECF-supported program is inherently complex and multi-faceted, complicating the public identification of specific impediments in any review cycle,” noted an observer close to the process. “The Fund’s explicit reference to ongoing negotiations supports the idea that fulfillment of prior actions remains outstanding.” Observers concur that the persistent virtual discussions underscore the need to resolve technical and policy issues for a successful Board review and subsequent disbursement.