The Ethiopian Council of Ministers plays a central role in shaping the nation’s policies and guiding its economic development. As the executive arm of the federal government, the Council is responsible for coordinating the functions of ministries, implementing laws, and managing national priorities. Chaired by the Prime Minister, the Council includes deputy prime ministers and ministers who lead various sectors such as finance, education, foreign affairs, and infrastructure.
In recent years, the Ethiopian Council of Ministers has become increasingly active in passing new laws and agreements aimed at improving economic growth and social welfare. Its regular meetings often lead to the approval of major national and international policies. These include loan agreements, regulatory changes, trade reforms, and foreign investment laws. During its 44th regular meeting in May 2025, the Council approved several important agreements, showing how it functions as a key decision-making body in Ethiopia’s governance.
One of the Council’s main responsibilities is drafting and submitting proclamations and legal frameworks to the House of People’s Representatives. These legal drafts are discussed thoroughly during Council meetings and then passed on to the legislative body for final approval. This process ensures that all proposed laws are reviewed at the executive level before being enacted.
The Ethiopian Council of Ministers also has the authority to enter into international agreements. For example, it recently approved financial deals with the Government of Italy and the International Development Association. These agreements will support Ethiopia’s green economy and education sector, respectively. The Council also approved a new air transport agreement with Austria, aimed at boosting tourism, trade, and aviation connectivity.
Another major area where the Council has shown leadership is in regional economic cooperation. The Council approved a draft law to join the Africa Finance Corporation, an institution that funds large-scale infrastructure, mining, and industrial projects across the continent. By becoming a member, Ethiopia aims to attract more funding and technical support for its development projects. This reflects the country’s strategic shift towards stronger regional integration and economic partnerships with other African nations.
Trade policy is another focus for the Ethiopian Council of Ministers. It recently reviewed new tariff regulations related to the African Continental Free Trade Area Agreement (AfCFTA). These regulations are designed to reduce trade barriers, make goods cheaper across African borders, and create new opportunities for businesses. The Council agreed to implement the new tariffs within one month of their publication in the Federal Negarit Gazette. This step shows Ethiopia’s commitment to building a more connected and competitive economy within Africa.
The Council is also working on reforms to improve public service efficiency. Draft regulations were introduced to update service fees for the Ministry of Transport and Logistics and the Civil Society Organizations Authority. These changes aim to improve the quality and speed of services offered by government institutions.
In addition, the Ethiopian Council of Ministers is actively working to make the country more attractive to international investors. One of the latest draft proclamations discussed by the Council addresses property ownership for foreign nationals. The proposed law aims to encourage investment in the housing market, generate employment, and ensure a balanced supply of housing. Clear legal guidelines for foreign property ownership are expected to protect the rights of Ethiopian citizens while promoting economic growth.
Through these various actions, the Ethiopian Council of Ministers has positioned itself as a driving force behind Ethiopia’s development agenda. By combining local policy-making with global cooperation, the Council is guiding the country toward a more stable and prosperous future.
