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Tesfa Tadesse

Managing Partner at TAY Authorized Accountants & Auditors

Tesfa Tadesse is the Managing Partner of TAY Certified Audit Firm, where he leads audit, advisory, and strategic planning services. With over 25 years’ experience across financial services, manufacturing, and development sectors, he specialises in financial management, internal controls, compliance, and corporate governance. Tesfa sits on several boards and advisory committees, contributing expertise in finance, risk management, and process improvement. A Fellow of the ACCA and a University of London MSc graduate, he has worked in Ethiopia, Djibouti, and Somaliland. Tesfa brings strong analytical skills and practical insight to clients navigating complex regulatory and financial landscapes in East Africa.

Ethiopia: Reform, resources and green-growth opportunity

July 14, 2026

Macroeconomic reforms strengthen growth outlook

Tesfa Tadesse, Managing Partner at TAY Audit Service LLP, explores how Ethiopia is entering 2026 with growing economic momentum, driven not only by macroeconomic reform but also by the emergence of new engines of growth. Recent IMF reporting points to stronger exports, improved foreign exchange reserves, stronger revenue mobilisation and moderating inflation, while real GDP growth for 2026 is projected at 7.1%.

Mining emerges as a key growth driver

One of the most notable shifts in the Ethiopian economy is the rising contribution of mining, particularly gold, to export earnings. Mining is increasingly becoming a strategic source of foreign exchange and reflects the country’s efforts to broaden its export base beyond traditional sectors. This is creating new opportunities for investors, service providers and institutions supporting governance, compliance and reporting across the extractives sector.

Green growth remains a national priority

Alongside economic reform, Ethiopia continues to position itself as a green-growth economy. The country’s development strategy combines environmental ambition with long-term investment priorities. The Green Legacy Initiative remains a flagship national programme, with a 2025 target of planting 7.5 billion seedlings, reflecting Ethiopia’s continued focus on reforestation, climate resilience and landscape restoration.

This commitment is also evident in the energy sector. Ethiopia’s installed electricity capacity is already overwhelmingly renewable, and current policy aims to expand generation while increasing the share of non-hydro renewable sources, including solar, wind and geothermal. The government’s recent Energy Compact targets an increase in installed capacity from 9,761 MW to 14,000 MW, with non-hydro renewables accounting for at least 15% of total capacity.

From our perspective at TAY, these developments reinforce Ethiopia’s position as one of Africa’s most compelling long-term markets. As economic reform continues alongside investment in natural resources and sustainable development, the country offers growing opportunities for businesses, investors and professional advisers.