Why Ethiopia is relaxing forex rules after 18 months of tight regulation

A man counts Ethiopia's birr notes at Merkato, one of Africa's biggest open-air markets, in Addis Ababa, Ethiopia on April 25, 2024.

Photo credit: Reuters

Prime Minister Abiy Ahmed’s government has unveiled sweeping changes to Ethiopia’s foreign currency rules, aiming to attract investment after nearly 18 months of strict controls.

The move comes as Western powers, including the US, show renewed interest in flagship infrastructure projects such as Bishoftu International Airport, billed as Africa’s largest when complete.