Ethiopia’s Post-2018 Economic Reforms: Implications for Ethiopia’s Foreign Policy Orientation and Practice

This study investigates the effects of Ethiopia's post-2018 economic reforms on its foreign policy. Using thematic analysis of qualitative data, the study found a substantial relationship between the reforms and shifts in foreign policy. The 2019 economic reform marked a notable shift from a security-dominated to an economic diplomacy focus, particularly evident in Ethiopia's commitment to fostering economic integration with neighbors. These shifts have prompted a re-evaluation of Ethiopia's international engagements for economic improvement and enhanced diplomatic relations. However, challenges remain. Ethiopia needs to establish broader foreign relations to navigate partnerships and manage diverse connections and interests, requiring robust economic diplomacy, especially given ongoing reforms impacting several States. Adjustments in the exchange rate regime, from fixed to floating, are central to the macroeconomic reform. While these adjustments are expected to increase international interest, they necessitate a strategic approach to foreign relations to maximize potential benefits.