The International Monetary Fund said it had approved three-year arrangements for Ethiopia under its extended credit and extended fund facilities at the conclusion of Article IV consultations with the East African country.

In a statement dated Tuesday, the IMF said Ethiopia had sustained high economic growth over the last decade, adding that substantial progress on reducing poverty and improving social indicators had also been noteworthy.

"The authorities have announced a homegrown economic reform plan, consisting of a mix of macroeconomic, structural and sectoral policies, to address vulnerabilities and tackle structural bottlenecks inhibiting private sector activity," it said.

"The macroeconomic policy measures envisaged under the plan to address external imbalances, debt vulnerabilities and inflation are expected to contribute to a slower growth in real GDP of 6.2 percent in 2019/20."

Ethiopia's real gross domestic product is estimated to have grown by nine percent in 2018/19, driven by manufacturing and services, but exports of goods  remained weak and the country faces persistent foreign currency shortages.

The IMF urged Ethiopian authorities to urgently implement fundamental reforms to correct macroeconomic imbalances, ease structural bottlenecks and lay the foundation for sustainable, inclusive growth led by the private sector.

It said Ethiopia's reform plan, which was appropriately built around macroeconomic, structural, and sectoral reforms, deserved IMF support which would help catalyze private investment and donor financing.