Budget context
Ethiopia's official defence allocation for FY2024/25 is approximately 24 billion birr (~$600 million at current exchange rates), around 0.5% of GDP. This figure is widely understood to undercount real expenditure: the Tigray War (November 2020 to November 2022) required emergency supplementary budgets, militia financing routed through regional governments, and opaque weapons procurement — including Iranian Mohajer-6 and Turkish Bayraktar TB2 drones purchased through UAE intermediaries. IMF Article IV consultations for 2023 noted defence as a major driver of Ethiopia's fiscal stress. The 2023-24 Amhara regional conflict added further unbudgeted outlays.
Force structure
The ENDF was approximately 140,000 strong before the November 2020 Tigray offensive and expanded to over 500,000 through wartime recruitment, integration of Amhara and Afar regional special forces, and reactivation of reserves — the largest rapid mobilisation in Africa since the 1980s. Post-ceasefire demobilisation has been slow and incomplete. The force operates T-55/72 tanks, BMP IFVs, artillery, and Soviet-legacy fighter aircraft (Su-27, MiG-23). The Tigray conflict devastated the officer corps: senior Tigrayan officers who composed much of the pre-war ENDF leadership defected or were purged, creating acute leadership gaps that persist.
Industrial posture
Ethiopia has minimal domestic defence manufacturing capacity. Dejen Aviation Industries performs aircraft maintenance and has aspirations for UAV production, but remains far from fielding a meaningful domestic weapons capability. All major platforms are imported: Russia supplies tanks and aircraft; Ukraine historically supplied weapons before 2022; Turkey and the UAE brokered drone deliveries; Iran supplied Mohajer-6 UAVs used in the Tigray conflict. China supplies small arms and ammunition. Ethiopia's poverty and debt constraints limit procurement ambitions. The Horn of Africa arms embargo concerns expressed by the UN did not prevent substantial weapons flows during the Tigray War.
Conflict exposure
Ethiopia's conflict exposure is extraordinary for a country of its income level. The Tigray War (2020-22) caused an estimated 300,000-500,000 deaths — among the deadliest conflicts of the 21st century — before a November 2022 AU-brokered peace agreement. The 2023-24 Amhara regional conflict between federal forces and the Fano militia caused further mass displacement. ENDF forces are simultaneously managing Oromo Liberation Army (OLA) insurgency in the west, Somali regional tensions, and a potential flashpoint with Eritrea along the 2002 boundary. Ethiopia's unilateral 2023 declaration of intent to access the Red Sea through Somaliland created diplomatic tensions with Somalia.
Recent developments
The November 2022 Tigray peace agreement held through 2024-2025 with fragile implementation. The Amhara conflict saw the federal government deploy drone strikes against Fano militia positions in 2023-2024 — including in populated areas — drawing international criticism. Ethiopia acquired additional Iranian Shahed-series drones in 2024 per IISS reports. A framework peace agreement was signed with the OLA in February 2025 after years of negotiation. The ENDF began a demobilisation programme in 2024 targeting the wartime expansion forces, though progress has been slow. US security assistance remained suspended due to human-rights concerns linked to the Tigray War through 2025.