ENA

Addis Ababa, March 28, 2026 (ENA) — Ethiopia, driven by its economic reforms and renewable energy resources as well as its green initiatives, is on a forward trajectory, according to UNDP-Ethiopia Economic Advisor Ali Zafar.

With over 90 percent of its electricity generated from renewable sources—primarily hydropower, the country is expanding its energy capacity through major infrastructure projects to power industrialization, increase regional electricity exports, and achieve national development goals.

In an exclusive interview with ENA, the prominent Economic Advisor and Head of Development Policy Research Hub at UNDP Ethiopia stated that Ethiopia has come a long way with the new government.

Noting that there have been a lot of macroeconomic reforms undertaken by the government, Zafar added that there have been a lot of developments, inflation has come down, and reserves are doing quite well.

The performance of gold and coffee have been playing a significant role for the increase in foreign reserves, he elaborated.

For the economic advisor, the country is on a forward trajectory. “Ethiopia is a country with plenty of assets. It is large. It is located in a strategic corridor.”

It has the combination of low energy costs and a relatively good investment climate with a government very pro-investment.

Zafar in particular commended the leadership of the Ministry of Planning and Ethiopia Investment Commission for their continued efforts in promoting the investment opportunities in the country.

Moreover, he also praised the Ethiopian government for its unwavering commitment in its endeavors to realize green growth driven by renewable energy.

According to him, Ethiopia is one of the countries in the world that is green. Some “90 percent of the energy comes from hydro; then you have wind and geothermal and solar. It does not use coal. It has Electric vehicles and others.”

He noted that the government has done the right approach amid the recurrent global crisis, which is to conserve energy, and protect the communities by keeping the fuel subsidy, among others.

Other countries should learn from Ethiopia to be green as depending on hydro, solar and wind is better than depending on coal for the environment, Zafar emphasized.

For him, the banning of fossil fuel oils is a very good move because EVs are the future and not passing on all the price increase to the consumers as Ethiopia can also learn from other countries as well.

The economic advisor finally affirmed that UNDP is a trusted partner of the government, working with them on green finance and on macroeconomic policy.

“We are a development partner who helps to give key policy advice. Work very closely with the government on policy and program, and we have a close relationship.”