Ethiopia has revised its revenue goal to 1.5 trillion birr ($12.5 billion) for the fiscal year ending July 7, surpassing its initial budget of 613 billion birr. This ambitious target is part of the country's agreement with the International Monetary Fund (IMF), which includes specific conditions to reform the region's largest economy.

To reach this goal, the government has introduced several new taxes, including a value-added tax on banking services, property taxes, and an excise tax on telecommunication services. Despite a 65% increase in revenue collection in the first quarter, the amount still falls short of the elevated annual target.

The country's economic reforms come amidst challenges arising from the COVID-19 pandemic and a two-year civil war that ended in November 2022. The IMF bailout and subsequent reforms, including opening up the financial sector to foreign investors and privatizing state-owned enterprises, signal Ethiopia's commitment to economic restructuring.

The government's efforts to increase revenue and reform the economy could have significant implications for startups and businesses operating in Ethiopia, as well as those looking to enter the market. As the country navigates its fiscal challenges, it will be important to monitor the impact of these reforms on the business environment and opportunities for growth.