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Abiy Re-elected: Ethiopia Faces Growth and Security Risks
Seetao 2026-10-12 11:41
  • The new term in Ethiopia is about to test the steady layout of Chinese enterprises
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On the day Abi was sworn in, he took over two urgent accounts, one to accelerate economic reform and benefit the people, and the other to restart peace negotiations to suppress the war. As a result, orders and production lines for Chinese companies in Egypt were also suspended.

The IMF report shows that Ethiopia's actual growth rate for the 2024/25 fiscal year is 9.2%, while the forecasts for the 2025/26 and 2026/27 fiscal years are 9.2% and 7.8%, respectively; But in August 2026, CPI increased by 15.1% year-on-year, and household expenses are still rising. Agriculture absorbs 69.4% of employment, with an unemployment rate of 9.6%, indicating significant structural employment pressure. The northern conflict has escalated into a diplomatic dispute between Ethiopia and Eritrea, putting pressure on the Pretoria Agreement. Peaceful progress is related to roads, flights, and compliance. The IMF has approved approximately $464 million in funds, and the exchange rate has shifted towards marketization. The effectiveness of the new policy will be reflected in the collection and delivery of funds. Price income, on-the-job training, and traffic safety are interrelated. For Chinese enterprises in Egypt, matching the pace of expansion with actual payment collection, stable employment, and executable delivery is necessary to turn market space into sustainable business.Editor/Min Jing


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