17 October 2026
The Monetary Policy Committee of the National Bank of Ethiopia announced the decisions of its seventh meeting on 13 July 2026.
The policy rate was raised by 1.0 percentage point, taking it to 16 per cent, and the plus or minus 3 percentage point band around the policy rate was left unchanged.
The cap on the annual credit growth of commercial banks was removed in full. The National Bank said this reflects the move to an interest based framework and is not a change in its monetary policy stance.
Targeted additional reserve requirements based on an individual bank's loan to deposit ratio may be applied if credit expansion pressures inflation.
The foreign exchange surrender requirement on goods exports was cut from 50 per cent to 30 per cent, and the foreign exchange commission from 2.5 per cent to 1.5 per cent.
Headline inflation stood at 13.4 per cent in May 2026, against 11.7 per cent in April 2026 and 9.7 per cent in December 2025, with food inflation at 15.0 per cent and non food inflation at 11.1 per cent.
The Governor of the National Bank of Ethiopia is Eyob Tekalign Tolina.
Policy rate:
16 per cent
Band around policy rate:
plus or minus 3 percentage points
Forex surrender on goods exports:
30 per cent
Headline inflation, May 2026:
13.4 per cent
Why it matters for exams: Ethiopia's shift to an interest rate based monetary framework is a standard comparison with the Reserve Bank of India's repo rate system in economy questions.
Kerala PSCUPSC
In plain words
NBE National Bank of Ethiopia — Ethiopia's central bank, which issues the birr and sets the policy rate.
MPC Monetary Policy Committee — The committee inside a central bank that decides the policy interest rate.
17 October 2026
The World Bank announced from Washington on 3 March 2026 an International Development Association credit of 200 million dollars for Ethiopia.
The money goes to Productive Safety Net Project 6, the sixth phase of the country's main social protection programme.
Under the new phase, 700,000 people are to start or grow small businesses.
Six million people are to get short term employment through climate smart public works.
Maryam Salim, the World Bank Division Director for Ethiopia, Eritrea, South Sudan and Sudan, and Sintayehu Demissie, Head of Ethiopia's Food Security Coordination Office at the Ministry of Agriculture, spoke for the two sides.
Ethiopia's Council of Ministers had separately cleared a credit of 146.1 million Special Drawing Rights from the International Development Association for the sixth phase of the Productive Safety Net Program, at its 55th regular session on Tuesday, 26 May 2026, along with 46.3 million United States dollars from the African Development Bank for a pastoralist food security and livelihood project.
IDA credit:
$200 million
People to start or grow small businesses:
700,000
People to get short term employment:
six million
Why it matters for exams: The Productive Safety Net Programme is the standard African comparison for India's MGNREGS in questions on public works based social protection.
Kerala PSCUPSC
In plain words
IDA International Development Association — The arm of the World Bank Group that lends to the poorest countries on concessional terms.
SDR Special Drawing Rights — The unit of account of the International Monetary Fund, used to denominate some multilateral loans.
17 October 2026
World Athletics announced the nominees for World Athlete of the Year 2026 on 6 October 2026, and the Ethiopian marathon runner Tigst Assefa is on the list for the women's award.
Her season included victory at the Berlin Marathon in 2:11:04, the third fastest time in history, and victory at the London Marathon in a women only world record of 2:15:41.
The 20 nominees, 10 women and 10 men, were chosen by an eight member panel of statisticians that includes two members from World Athletics and one from each of the six area associations.
A four way vote ranks the nominees from first to tenth and closes at midnight Central European Summer Time on Saturday 17 October. Each group contributes 25 per cent of the result: World Athletics fans voting by survey, athletes who competed at World Athletics Series events in 2026, accredited media, and the World Athletics Family.
Three women and three men will be named as finalists on 10 and 11 November.
The winners will be revealed at the World Athletics Awards in Monaco on 29 November.
Nominee:
Tigst Assefa
London Marathon winning time:
2:15:41 (women only world record)
Berlin Marathon winning time:
2:11:04
Awards ceremony:
Monaco, 29 November
Why it matters for exams: Ethiopian distance running is a standing source of sports general knowledge questions, and women only marathon world records are a frequently confused category.
Kerala PSCUPSC
In plain words
Women only world record Women only world record — A record set in a race in which women run without male pacemakers, counted separately from a mixed race record.
17 October 2026
The World Bank's country overview for Ethiopia records the state of its lending and of the government's reform programme.
As of 23 March 2026, the total World Bank portfolio in Ethiopia had 43 operations and 15.82 billion dollars in commitments, including 12.5 billion dollars from the International Development Association.
Since FY 2015, IDA has committed over 25 billion dollars to Ethiopia.
The government began a comprehensive macroeconomic reform in July 2024. It moved to market set exchange rates, eased some current account restrictions and adopted an interest rate based monetary policy.
The gap between the official and parallel exchange rates narrowed from over 100 per cent to about 15 per cent, though surrender requirements on exporters still encourage parallel market use.
The overview cites a GDP growth rate of 9.2 per cent in FY2024/25, with per capita GDP of 979 dollars.
Poverty fell from 39 per cent to 24 per cent between 2004 and 2016, then rose from 27 per cent to 32 per cent over 2016 to 2021.
World Bank portfolio:
$15.82 billion
Number of operations:
43
GDP growth, FY2024/25:
9.2%
Per capita GDP:
$979
Why it matters for exams: Ethiopia is one of the largest IDA borrowers, and the narrowing of the official to parallel exchange rate gap is a textbook measure of exchange rate reform.
Kerala PSCUPSC
In plain words
Parallel market Parallel foreign exchange market — An unofficial market where a currency trades at a rate different from the bank rate.
17 October 2026
UNICEF's humanitarian appeal for Ethiopia for 2026 asks for 401.5 million United States dollars.
UNICEF says it aims to reach approximately 8.9 million people in Ethiopia with humanitarian assistance in 2026.
Of those targeted, 6.3 million are children.
The Displacement Tracking Matrix counts 1.1 million refugees in Ethiopia, mainly from South Sudan, Somalia, Eritrea and Sudan.
Ethiopia is among the largest of UNICEF's country appeals, and the scale of the figure follows from the country's population, which the World Bank puts at about 135.9 million.
Appeal requirement:
US$401.5 million
People targeted:
about 8.9 million
Children targeted:
6.3 million
Refugees in Ethiopia:
1.1 million
Why it matters for exams: Ethiopia is one of Africa's largest refugee hosting countries, and UNICEF country appeal figures are standard material for reports and indices questions.
Kerala PSCUPSC
In plain words
DTM Displacement Tracking Matrix — The system used to count and track displaced people and refugees in a country.
17 October 2026
The World Health Organization's Regional Office for Africa reported that Ethiopia carried out an oral cholera vaccination campaign using one-third of the global vaccine stockpile.
The campaign reached over 10,196,575 people, with coverage of 98.4 per cent.
It covered 89 woredas, the Ethiopian term for districts.
The regions involved were Afar, Amhara, Oromia, Central Ethiopia, South Ethiopia, Sidma and Somali.
The campaign also covered internally displaced people and refugee camps hosting people from Sudan.
The Ethiopian Public Health Institute led the response. Dr Patrick Abok, WHO Ethiopia Emergency Preparedness and Response Lead, spoke for the agency.
People reached:
over 10,196,575
Coverage:
98.4%
Woredas covered:
89
Share of global stockpile used:
one-third
Why it matters for exams: The global oral cholera vaccine stockpile and the Ethiopian woreda as a unit of local administration are both standard examination points.
Kerala PSCUPSC
In plain words
Woreda Woreda — The third level administrative division in Ethiopia, roughly a district.
EPHI Ethiopian Public Health Institute — The national body that leads outbreak detection and response in Ethiopia.
17 October 2026
The World Health Organization's Regional Office for Africa reported on Ethiopia's re-ignited Big Catch-Up immunisation initiative.
As of 8 April 2025, the programme had vaccinated 958,725 zero-dose children, which is 24 per cent of the estimated 3.9 million such children nationwide.
Coverage rose from 16 per cent in December 2024, with nearly 100,000 children vaccinated in the previous two months.
The monthly reporting rate rose from 60 per cent in Tir to 95 per cent in Yekatit, the Ethiopian calendar months running from January to March 2025.
The Big Catch-Up campaign officially launched on 24 June 2024 and was re-ignited on 22 February 2025, after an intra-action review in October 2024. Ethiopia's Ministry of Health had introduced a catch-up policy in 2022.
GAVI supported zero-dose projects in 30 woredas in Tigray and Amhara, and integrated measles campaigns ran in 38 drought-affected districts in the Somali, Oromia and South Ethiopia regions, funded through the Central Emergency Response Fund.
Dr Dereje Duguma, State Minister of Health, and Dr Owen L. Kaluwa, WHO Representative in Ethiopia, spoke for the two sides.
Zero-dose children vaccinated:
958,725
Share of the estimated total:
24 per cent of 3.9 million
GAVI supported woredas:
30, in Tigray and Amhara
Districts in measles campaigns:
38 drought-affected districts
Why it matters for exams: Zero-dose children and the Big Catch-Up are the terms used worldwide for post-pandemic immunisation recovery, and GAVI's role is a frequent question.
Kerala PSCUPSC
In plain words
Zero-dose child Zero-dose child — A child who has received no dose of the basic childhood vaccines.
GAVI Gavi, the Vaccine Alliance — A global partnership that funds vaccines for low income countries.
Background
The African Union observer mission to Ethiopia's general elections, reported elsewhere in this section, was run from the Union's own headquarters city, so the standing facts of that relationship are worth setting down.
The African Union lists the country as the Federal Democratic Republic of Ethiopia, places it in Eastern Africa, and gives its joining date as 25 May 1963, the day the Organisation of African Unity was founded in Addis Ababa.
The African Union has its headquarters in Addis Ababa, Ethiopia, at P.O. Box 3243, Roosevelt Street.
Addis Ababa, which means New Flower, lies almost at the centre of the country and is Ethiopia's capital.
Ethiopia is a federal republic in which the President is head of state and the Prime Minister is head of government.
Taye Atskeselassie, who had been Minister of Foreign Affairs, was made head of state during a parliamentary opening session, replacing Sahle-Work Zewde, whose six year term had expired.
Abiy Ahmed is the Prime Minister and chairs the Council of Ministers.
Official name:
Federal Democratic Republic of Ethiopia
Date of joining the Union:
25 May 1963
African Union headquarters:
Addis Ababa, Ethiopia
Head of state:
Taye Atskeselassie
Why it matters for exams: Addis Ababa as the seat of the African Union, and the split between a ceremonial President and an executive Prime Minister, are the two most asked standing facts about Ethiopia.
Kerala PSCUPSC
In plain words
OAU Organisation of African Unity — The body founded at Addis Ababa in 1963 that was replaced by the African Union.
Background
Ethiopia, the country in focus in this section today, carries twelve properties on the UNESCO World Heritage List, ten of them cultural and two natural.
The Rock-Hewn Churches of Lalibela and Simien National Park were the first, inscribed in 1978.
Fasil Ghebbi in the Gondar Region followed in 1979, and Aksum, the Lower Valley of the Awash, the Lower Valley of the Omo and Tiya were all inscribed in 1980.
Harar Jugol, the Fortified Historic Town, was inscribed in 2006, and the Konso Cultural Landscape in 2011.
The Gedeo Cultural Landscape and Bale Mountains National Park were inscribed in 2023, and Melka Kunture and Balchit in 2024.
Simien National Park and Bale Mountains National Park are the two natural properties; the other ten are cultural.
Ethiopia ratified the World Heritage Convention on 6 July 1977.
World Heritage properties:
12
Cultural properties:
10
Natural properties:
2
Convention ratified:
6 July 1977
Why it matters for exams: Lalibela and Aksum are the two Ethiopian heritage names that recur in art and culture questions, and the cultural versus natural split is a standard trap.
Kerala PSCUPSC
In plain words
Fasil Ghebbi Fasil Ghebbi, Gondar Region — The fortress city of the Ethiopian emperors at Gondar, inscribed as a cultural property.
Background
Ethiopia, the country in focus in this section, is the setting for the World Bank lending and the humanitarian appeals reported above, and its size explains the scale of both.
The World Bank puts Ethiopia's population at about 135.9 million people in 2025, making it the second most populous country in Africa after Nigeria.
Its per capita GDP is 979 dollars.
Poverty fell from 39 per cent to 24 per cent between 2004 and 2016, then rose from 27 per cent to 32 per cent over the period 2016 to 2021.
Ethiopia is a landlocked country on the Horn of Africa, with neighbouring nations including Eritrea, Djibouti, Somalia, Kenya, South Sudan and Sudan.
Its physical features include Lake Tana, the Blue Nile River with the Blue Nile Falls, the Awash and Omo rivers, and the Simien and Bale Mountains.
Its capital Addis Ababa, meaning New Flower, lies almost at the centre of the country.
Population:
about 135.9 million
Rank in Africa by population:
second, after Nigeria
Per capita GDP:
$979
Capital:
Addis Ababa
Why it matters for exams: That Ethiopia is Africa's second most populous country after Nigeria, and that it is landlocked, are the two facts a geography question on the Horn of Africa most often turns on.
Kerala PSCUPSC
In plain words
Horn of Africa Horn of Africa — The peninsula of northeast Africa that takes in Ethiopia, Eritrea, Djibouti and Somalia.
Landlocked Landlocked country — A country with no coastline, which must use a neighbour's ports for sea trade.
Background
Ethiopia is the country in focus in this section, and its ties with India rest on a record kept by the Indian Embassy in Addis Ababa.
After India's independence a goodwill mission led by Sardar Sant Singh visited Ethiopia, and diplomatic relations at legation level were established in 1948.
Full diplomatic relations followed in 1950, with Sardar Sant Singh as India's first Ambassador to Ethiopia.
Emperor Haile Selassie visited India in 1956, and Indian Presidents S. Radhakrishnan and V. V. Giri visited Ethiopia in 1965 and 1972.
Prime Minister Manmohan Singh inaugurated the second India-Africa Forum Summit in Addis Ababa on 24 and 25 May 2011, and President Ram Nath Kovind made a state visit to Ethiopia from 4 to 6 October 2017.
The agreements between the two countries include an Air Services Agreement of 1967, an Agreement on Technical, Economic and Scientific Cooperation of 1969, a Cultural Agreement of 1983, a Trade Agreement of 1997 and a Double Taxation avoidance treaty of 2011.
A Joint Commission agreement and a Protocol on Foreign Office Consultations were both signed in July 2007, and the second Joint Commission Meeting was held in New Delhi on 9 May 2018.
India-Ethiopia trade stood at US$550.19 million in 2024-25, with India's exports at US$476.81 million and imports at US$73.38 million. The Indian community in Ethiopia is about 2,500 strong, and about 150 Indian faculty members work in Ethiopian universities and higher education institutions.
Legation level relations:
1948
First Indian Ambassador:
Sardar Sant Singh
Bilateral trade, 2024-25:
US$550.19 million
Indian community:
about 2,500
Why it matters for exams: The year diplomatic relations began and the name of India's first Ambassador to Ethiopia are the two facts most often asked from the India-Ethiopia file.
Kerala PSCUPSC
In plain words
Legation Legation — A diplomatic mission of a rank below an embassy, headed by a minister rather than an ambassador.
IAFS India-Africa Forum Summit — The summit level meeting between India and African countries; its second edition was held in Addis Ababa.