Addis Ababa Goes It Alone with Record Budget

Addis Ababa has approved a 350 billion Birr budget for fiscal year 2025/26, the first entirely without federal government transfers, marking a 45.1 percent increase and a shift toward municipal self-reliance. The budget projects a 117 percent revenue increase and allocates over 70 percent of funds toward capital projects. Critics raise concerns about the feasibility of aggressive revenue targets and potential debt risks from unchecked municipal borrowing.