The government’s growing reliance on domestic and external loans continues to shape the nation’s fiscal landscape, as authorities grapple with rising debt repayments and the need to finance critical infrastructure and social programs.

According to the latest official reports and financial disclosures, the government’s total outstanding debt has reached new highs, reflecting both increased borrowing from international partners and a greater dependence on domestic sources. Analysts warn that while loans have supported key investments in energy, transport, and health, the mounting debt burden poses risks to long-term economic stability.

The Ministry of Finance’s recent statements show that the government’s external debt stock has grown steadily over the past year, driven by disbursements from multilateral lenders such as the World Bank, African Development Bank, and bilateral partners including China and France. Domestic borrowing has also increased, with the government issuing treasury bills and bonds to cover budget deficits and support public sector spending.

As of June 2025, the total public debt is estimated to exceed $38 billion, with external loans accounting for over 60% of the total. Debt servicing costs—interest and principal repayments—have risen sharply, now consuming a significant share of government revenues.

Officials acknowledge that debt sustainability is a growing concern. The government has faced challenges in generating sufficient export earnings and tax revenues to keep pace with repayment obligations. Recent currency depreciation and global economic volatility have further complicated the outlook, making it more expensive to service foreign-denominated loans.

The International Monetary Fund (IMF) and World Bank have both urged the government to strengthen fiscal discipline, improve revenue collection, and prioritize concessional borrowing to avoid a debt crisis. “Ethiopia’s debt remains at high risk of distress,” the IMF noted in its latest review, calling for “decisive policy actions to restore macroeconomic stability and safeguard debt sustainability.”

Despite these concerns, government officials defend the use of loans as necessary for development. Major infrastructure projects—including new roads, railways, power plants, and industrial parks—have been financed through a mix of concessional and commercial loans. These investments, authorities argue, are essential for job creation, economic diversification, and poverty reduction.

However, critics point out that delays, cost overruns, and inefficiencies in project implementation have sometimes undermined the expected benefits. There are also concerns about the transparency of loan agreements and the terms attached, particularly with non-traditional lenders.

The government has pledged to improve debt management practices, enhance transparency, and seek debt restructuring where possible. Efforts are underway to renegotiate some loan terms, extend maturities, and secure grants or highly concessional financing to ease repayment pressures.

The Ethiopian Freight Forwarders and Shipping Agents Association (EFFSAA) has launched the prestigious FIATA Higher Advanced Diploma in Supply Chain Management for selected logistics experts, marking the first high-level training of its kind in Africa.

This intensive program includes 40 participants from six universities and key stakeholders such as Ethiopian Shipping & Logistics (ESL), Ethio Djibouti Railways (EDR), Ethiopian Airlines, private freight forwarders, and FIATA-certified trainers. Over 15 days, participants will engage in 10-hour daily lectures led by Prof. Thomas Sim, a globally recognized logistics expert and FIATA Senior Vice President.

For the past eight years, EFFSAA has offered the standard FIATA Diploma, certifying only 300 professionals during that time. In the last year alone, however, 350 trainees, including 100 women, have either completed or are currently in training, indicating a significant expansion in capacity-building efforts.

Dawit Woubshet, President of EFFSAA, FIATA Airfreight Institute Chairman, and FIATA Board Member, highlighted that the new advanced training of trainers program aims to integrate FIATA certifications into Ethiopia’s higher education system. Undergraduates will earn the FIATA Diploma, while graduates and PhD candidates will qualify for the Higher Advanced Diploma in Supply Chain Management.

Woubshet noted that the advanced training will primarily target senior leaders in the public and private sectors, ensuring that the logistics industry is led by knowledgeable professionals.

Both certifications are internationally recognized, providing Ethiopian professionals with opportunities to work both domestically and abroad.

This initiative aligns with Ethiopia’s expanding multimodal transport operations, which require highly skilled experts.

EFFSAA also aims to attract participants from other African nations and neighboring countries, further solidifying Ethiopia’s position within FIATA.

This development coincides with Ethiopia’s preparations to host the FIATA World Congress in 2027, highlighting the country’s growing influence in global logistics and supply chain education.

The FIATA Higher Advanced Diploma in Supply Chain Management is a globally recognized qualification designed to equip professionals with the knowledge and skills necessary to excel in the complex world of global supply chains. Issued by FIATA, this diploma is highly valued by employers worldwide.

Urumqi, China

A diverse group of journalists from across Asia, Africa, Latin America, and the Middle East recently concluded an immersive week-long field trip to China’s Xinjiang Uygur Autonomous Region, gaining firsthand insight into the area’s rich cultural heritage, rapid socio-economic development, and efforts to balance tradition with modernization.

Organized as part of the “China Up Close” media initiative, the visit brought together 51 delegates from 49 media outlets representing 41 countries. The itinerary spanned key sites in the Turpan-Hami cities, with stops in Urumqi, Turpan, Shanshan, Hami City, and Yiwu County. Journalists explored ancient cities, religious and medical institutions, traditional villages, and modern industrial hubs, experiencing both Xinjiang’s historic legacy and its contemporary dynamism.

Delegates visited the Xinjiang International Grand Bazaar in Urumqi, a vibrant marketplace renowned for its ethnic crafts, local cuisine, and cultural performances. In Turpan, the group toured the Jiaohe Ruined City—one of the world’s largest and best-preserved ancient earthen cities and a UNESCO World Heritage site—as well as the Thousand Buddha Caves and the historic Karez irrigation system, an ancient engineering marvel still vital to the region’s agriculture.

The itinerary also highlighted Xinjiang’s economic transformation. Journalists observed cutting-edge projects such as the Hami Molten Salt Tower-type Solar Power Plant, a pioneering renewable energy facility, and the Urumqi Bonded Exhibition and Trading Center, which anchors Xinjiang’s growing role in cross-border e-commerce and global trade. Visits to local enterprises showcased advances in high-tech agriculture, traditional Chinese medicine, and the burgeoning wine industry, all contributing to rural income growth and sustainable development.

Organizers emphasized that the field trip aimed to provide a nuanced, authentic perspective on Xinjiang’s multifaceted identity, countering prevailing narratives by highlighting economic progress, cultural preservation, and social stability. The journey included high-speed train travel, allowing delegates to experience the region’s modern transportation infrastructure alongside its ancient landmarks.

Xinjiang’s government, marking the region’s 70th anniversary, has set ambitious goals for 2025, targeting robust GDP growth and prioritizing ten key industries, including tourism, advanced manufacturing, and high-quality agriculture. The region expects to welcome over 320 million tourists this year, underscoring its emergence as a major destination for both domestic and international visitors.

The media field trip follows recent international forums, such as the 2025 Media Cooperation Forum of Shanghai Cooperation Organization (SCO) Countries, which underscored the importance of media in fostering mutual understanding and connectivity across Eurasia. Organizers hope that firsthand reporting by participating journalists will enrich global coverage of Xinjiang and promote balanced dialogue about the region’s ongoing transformation.

As Xinjiang continues to position itself as a strategic link between Central Asia, Eurasia, South Asia, and the Middle East, initiatives like this field trip highlight the region’s commitment to openness, cultural exchange, and shared prosperity.

The Ethiopian Commodity Exchange (ECX) has experienced a significant decline in both the volume of export-standard products and overall trading activities, according to the latest audit report released by the Office of the Federal Auditor General (AG). The findings were presented to the House of Representatives as part of the 2023/24 fiscal year audit.

The report highlights critical deficiencies in ECX’s product intake, inventory management, and trading systems. Data shows that the volume of export-standard products traded on the ECX platform dropped by 19% to 29% between the 2014 and 2016 Ethiopian fiscal years, ranging from 47,529 to 59,813 metric tons.

The audit revealed major problems with ECX’s storage infrastructure. Many warehouses are vulnerable to flooding and have leaking roofs, while lacking essential facilities such as parking and sample pick-up areas for vehicles transporting products. These shortcomings undermine the ability to maintain product quality and provide timely services.

Although ECX has identified 25 agricultural products for trading and contracted warehouses across several branches—including Saris, Adama, Hawassa, Dilla, Jimma, and Bonga—these facilities only accept a limited range of produce, restricting market participation.

Between 2014 and 2016, the volume of agricultural yields received by ECX dropped sharply, with decreases ranging from 13% to 49%, falling from 40,049 to 294,805 metric tons. Correspondingly, the volume of production traded through ECX declined by 14% to 51%, from 42,874 to 314,446 metric tons. This downturn led to a reduction in transaction liquidity, which fell between 13% and 30%, decreasing from 3.7 million to 11.9 million birr.

The report attributes these declines partly to ECX’s struggle to expand its membership base, both formal and informal. Many traders have shifted to alternative trading systems, further reducing volumes traded on the ECX platform.

The ECX plays a vital role in Ethiopia’s agricultural exports, particularly in coffee and sesame, which together account for a large share of the country’s export revenue. However, recent years have seen fluctuating export volumes and declining international commodity prices, affecting overall export earnings.

Experts and stakeholders have pointed to systemic issues such as product grading inconsistencies, delivery delays, and pricing mechanisms within the ECX as factors contributing to export underperformance. While the ECX maintains it provides transparent market data and facilitates trading, some exporters argue that quality control and operational inefficiencies hinder competitiveness.