Open Budget Survey 2025: Debt Accountability Module: Findings for Ethiopia

Ethiopia’s public debt management is navigating a critical juncture. Having defaulted on its Eurobond and currently restructuring external debt under the G20 Common Framework, robust debt transparency and oversight are not merely a governance aspiration but an urgent fiscal necessity. The OBS Debt Accountability Module, completed by the Horn Economic and Social Policy Institute (HESPI), assesses whether Ethiopia has the transparency, participation, and oversight conditions needed for public accountability on debt management. The module finds that these conditions are largely absent. The Medium-Term Debt Strategy has not been updated since 2020, no Annual Borrowing Plan is publicly accessible, no information is disclosed on the intended purpose of new loans, and audit findings from the Office of the Federal Auditor General are withheld from the public. Legislative oversight is sporadic and reactive, and no formal mechanisms exist for citizens or civil society to engage on debt decisions at any stage of the budget cycle. The module recommends urgently publishing an updated Medium-Term Debt Strategy and Annual Borrowing Plan, disclosing the full terms and intended purpose of individual loan transactions, establishing mandatory legislative review of debt documents as a core step in the annual budget cycle, requiring the Office of the Federal Auditor General to publish its debt audit findings, and introducing formal public consultation mechanisms and accessible plain-language debt communications to enable meaningful civic engagement.

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Ethiopia OBS Debt Module Report EN

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Towards Closing the Debt Accountability Gap: Findings from the 2025 OBS Debt Module Pilot

Key findings from 11 countries 1 executive government provided information linking debt and borrowing plans to service delivery. Most debt strategies had borrowing targets, but none informed on projects to be financed. 5 executive governments published a debt management strategy that is timely and connected with the annual budget planning process. 5 legislatures reviewed the […]
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