Ethiopia Omitted from World Bank’s 2025–2026 Income Classification
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Ethiopia has been omitted from the World Bank’s 2025–2026 income classification list, with no formal explanation provided.
The country now appears under the “unclassified” category, raising questions among investors, analysts, and international donors who rely on these classifications to assess economic performance, lending eligibility, and investment potential.
The World Bank income classification is updated annually and groups countries into four tiers, low, lower-middle, upper-middle, and high income, based on gross national income (GNI) per capita, calculated using the Bank’s Atlas method.
For the fiscal year running from July 2025 to June 2026, only two countries, Ethiopia and Venezuela, have been designated as “unclassified.”
According to the World Bank, countries may be temporarily omitted from classification if their recent GNI data is unavailable or does not meet methodological standards. While this explanation is provided in general terms, no country-specific reason has been published for Ethiopia’s omission.
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In previous years, disruptions like the COVID-19 pandemic or adjustments to national income accounting have contributed to temporary omissions for other countries.
Does the Omission Affect Ethiopia’s Access to World Bank Funding?
The income classification does not directly determine lending eligibility from the World Bank’s operational arms such as the International Development Association (IDA) or the International Bank for Reconstruction and Development (IBRD).
However, the classification is widely used by bilateral donors, development finance institutions, and private investors when making funding, policy, or risk decisions.
Despite being left out of the FY26 income list, Ethiopia recently secured a $5 billion commitment from the World Bank to support economic reforms over the next three years. The funding complements an existing $15.5 billion portfolio focused on infrastructure, education, health, and macroeconomic policy.
Neighbouring Kenya and Tanzania retained their lower-middle-income status, with GNI per capita between $1,136 and $4,465. Countries in the Horn of Africa such as Sudan, Somalia, Djibouti, and Eritrea are classified as low-income economies with GNI per capita below $1,135.
The World Bank states that unclassified designations are usually temporary and resolved once updated and reliable national income data becomes available. However, until Ethiopia submits revised data that meets the Bank’s methodology, its income group will remain unlisted.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.
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