Welcome to Foreign Policy’s Africa Brief.

The highlights this week: Ethiopia relaxes foreign exchange controls as it is projected to experience significant growth, U.S. troops arrive in Nigeria to support counterterrorism efforts, and China announces a zero-tariff policy for imports from 53 African countries.

Welcome to Foreign Policy’s Africa Brief.

The highlights this week: Ethiopia relaxes foreign exchange controls as it is projected to experience significant growth, U.S. troops arrive in Nigeria to support counterterrorism efforts, and China announces a zero-tariff policy for imports from 53 African countries.

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Economic Success Story?

Last week, the Ethiopian Central Bank announced a major relaxation of foreign exchange controls in a bid to further liberalize the economy, attract foreign direct investment, and make it easier to do business in Ethiopia. The move comes shortly after Prime Minister Abiy Ahmed said that the country is projected to grow 10.2 percent this fiscal year.

Ethiopia was one of Africa’s fastest-growing economies, with average annual growth of around 11 percent, until 2020, when a two-year civil war broke out in its northern Tigray region. The war cost more than $28 billion in damages and economic losses, and more than 1 million people in northern Ethiopia still rely on humanitarian aid.

The country’s current economic rebound has been driven by reforms demanded by the International Monetary Fund, leading to stronger performances in agriculture, mining, and exports. An extensive reform program, which launched in July 2024, floated the birr, Ethiopia’s currency, and opened up key industries such as banking, telecommunications, and real estate to foreign competition.

The decision to let the market—rather than the state—determine the birr’s exchange rate severely devalued Ethiopia’s currency, leading to higher inflation rates and cost of living. Yet these reforms, as expected, boosted Ethiopian exports.

For instance, in its 2024-2025 fiscal year, Addis Ababa reported........

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