Ethiopia has reported a significant surge in export earnings during the first half of its fiscal year, exceeding government targets by a substantial margin. This impressive performance comes amidst a period of significant currency depreciation, highlighting the country's resilience in the face of economic challenges.
In the first six months of the fiscal year (July-December 2024), export earnings reached a remarkable $3.2 billion USD, surpassing government projections by 45%. This strong showing has fueled optimism for the full year, with officials predicting exports to exceed $6 billion USD – a substantial increase from the $3.2 billion USD achieved in the previous fiscal year.
This positive export trend is particularly noteworthy given the recent decision to float the Ethiopian Birr, which has resulted in a significant devaluation against major currencies. While this has increased the cost of imports, it appears to be boosting the competitiveness of Ethiopian exports in international markets.
Coffee, the country's primary foreign exchange earner, continues to be a major driver of export growth. During the reporting period, coffee exports generated $908 million USD from 204,000 tons of shipments. The Ethiopian Coffee and Tea Authority has set an ambitious target of 400,000 tons of coffee exports annually, with projected revenue of $2 billion USD.
Shafi Umer, Deputy Director-General of the Ethiopian Coffee and Tea Authority, attributed this strong export performance to "enhanced operational efficiency across our agricultural export sector."