Ethiopia has remained marked by armed conflict and political repression under Prime Minister Abiy Ahmed. While a peace agreement prevented a return to full-scale war in northern Ethiopia, insurgencies in Amhara and Oromia continued, deepening ethnic tensions and instability. The government has increasingly restricted political participation, targeting opposition figures, media outlets and civil society organizations. Accusations of serious human rights violations against political opponents by security forces are reported.
Economic progress has been constrained by political instability and mounting financial pressure. Ethiopia defaulted on its international bond in 2023 and entered debt restructuring negotiations with multilateral and bilateral creditors. Currency liberalization and debt relief provided limited stabilization. At the same time, the government advanced private sector growth, the opening of the banking sector to foreign banks and expanded energy capacity.
While authorities pursued economic liberalization and international financial cooperation, efforts to resolve internal conflicts and foster inclusive dialogue failed. The National Dialogue process remained contested and ineffective, as was the fragile peace deal regarding the conflict in northern Ethiopia.
