Since the launch of Ethiopia’s foreign exchange bureaus in October 2024, the country has seen a transformative shift in its currency exchange landscape. The shift to a market-based foreign exchange system, coupled with opening of new forex bureaus, is significantly improving access to foreign currency. This transition is helping streamline transactions, reduce reliance on the black market, and foster a more transparent financial environment. As competition among bureaus increases, customers benefit from better rates and more options. Ultimately, this shift is positioning Ethiopia’s financial sector for greater stability and growth. “Forex bureaus play a vital role as intermediaries in Ethiopia’s floating exchange rate system, offering accessible currency exchange points and formalizing previously informal transactions,” said Mustofa Abdella, Business Consultant. He added that these institutions enhance market efficiency by providing competitive rates and convenient services for both individuals and small businesses. With their presence in urban centers, they contribute to building a more robust and transparent forex market infrastructure, which is crucial for the smooth operation of a floating rate system. Furthermore, forex bureaus help direct foreign currency through official channels, potentially reducing reliance on the informal market.

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As interest mounts in leveraging Ethiopia’s increasing hydroelectric power output, regulatory shifts are underway to accommodate prospective entrants in emerging industries. Balcha Reba (Eng), Director General of Ethiopia’s Communication Authority (ECA), said 11 data centers focused on crypto-mining services have either begun establishing operations or are in the process of doing so in Ethiopia’s ICT park. Speaking to Shega at the sidelines of the Internet Development Conference last week, he revealed that licensing and oversight for data center businesses has shifted from the Ministry of Innovation and Technology to the Authority. “Ethiopia’s weather and access to hydroelectric power make it ideal for data centers,” Balcha told Shega. Ethiopia currently generates around 5,200 MW of power, with the pending completion of the Grand Ethiopian Renaissance Dam possibly doubling the supply at one of the cheapest rates in the world. Last week, Phoenix Group, a cryptocurrency firm listed on the Abu Dhabi Stock Exchange (ADX), signed an 80-mega-watt power purchase agreement with Ethiopia as part of its global strategy to diversify operations. The Director also noted that three organizations, Wingu Africa, Redfox, and Raxio, that provide Data Center as a Service (DCaaS), have begun operations after investing tens of millions of dollars. ECA is increasingly playing a prominent role in Ethiopia’s information, technology, and telecommunications landscape. The Authority was established as an independent agency five years ago through Proclamation 1148/2019. In its short stint, ECA’s powers have expanded to include oversight over Personal Data Protection following the ratification of the landmark bill in April 2024.

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The Ethiopian government will reportedly be demanding that King Charles return "immoral" artifacts that have been kept in Britain since the 1868 Battle of Magdala.

Per a report published by The Telegraph on Friday, Jan. 24, officials in Ethiopia's capital of Addis Ababa will be pushing for the return of items from the Royal Collection as well as treasures kept elsewhere in the United Kingdom, such as the British Museum. The items kept by the King are sacred to the Ethiopian Orthodox Tewahedo Church, per the outlet, which also notes that the government in the United Kingdom will be asked to support Ethiopia's push for the items' return next year.

The Ethiopian Heritage Authority will lead the move for the return of the items alongside the Ethiopian Orthodox Church, according to The Telegraph.

"It is immoral," said the heritage authority's director general Abebaw Ayalew Gella. "You don’t just put them somewhere. They are sacred.”

“A manuscript with illumination is always considered sacred," Gella added, referring to the "illuminated" works. "You don’t even touch them.”

The Ethiopian Commodity Exchange (ECX) has launched a new online trading system, marking a significant step in the modernization of Ethiopia’s trading sector. The system was officially introduced by the Minister of Trade and Regional Integration, Kassahun Gofe (PhD), who described it as a transformative initiative designed to enhance efficiency and fairness in the trade system. In a statement, the Minister said: “We announced key trade reforms that will lay the foundation for a modern trading system. We have launched an online trading system developed by the Ethiopian Commodity Exchange today that will fundamentally change the trading system of our country. The new trading system will make the business sector take its due share in our country’s economy. This online trading system ensures fairness and is a great resource for diversifying our export trade. It connects producers and traders directly from anywhere. Modernizing our marketing system will help farmers benefit from an inclusive financial system. It will also help achieve a fast and inclusive economy.

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Addis Ababa, Ethiopia — On January 18, 2025, TEBITA Paramedic College held a memorable graduation ceremony at Nexus Hotel to honor its latest cohort of emergency medical professionals—a momentous occasion marking the third batch of graduates from Ethiopia’s first paramedic college. Established in 2018 through a partnership between TEBITA Ambulance, East Africa Emergency Medical Service Foundation (EAEMSF)—the non-profit wing of TEBITA Ambulance—along with various international collaborators, TEBITA Paramedic College continues to transform the landscape of emergency healthcare training in the country. Since opening its doors in January 2018, TEBITA Paramedic College has equipped over 160 Emergency Medical Technicians (EMTs) with the critical skills needed to provide lifesaving support throughout Ethiopia. Many of these trainees come from underprivileged backgrounds, reflecting TEBITA’s commitment to making healthcare education accessible to all. In this third batch, the college admitted 60 candidates on a full scholarship—all of whom could not afford private college tuition. After 20 months of rigorous study and hands-on training, 50 students successfully completed the program, comprising 36 women and 14 men.

Honoring Lifelong Contributions to Anesthesia

Speakers and Distinguished Guests

• Mr. Seleshi Mola – Dean, TEBITA Paramedic College
• Mr. Kibret Abebe – CEO, TEBITA Ambulance and Founder of TEBITA Paramedic College
• Dr. Hassen Hussin – Director, Entrepreneurship Development Institute (EDI)
• Dr. Mulugeta Endale – Deputy Head, Addis Ababa Health Bureau
• Mr. Sirak Gugssa – Deputy Director, Medical Service Directorate, Federal Ministry of Health

“We remain dedicated to strengthening Ethiopia’s emergency healthcare system by providing our paramedics with the knowledge and skills to save lives. Our continued partnerships with local and international institutions ensure that we can train even more life-saving professionals, many of whom could not otherwise afford such an education.”

Looking to the Future

• To cultivate a robust emergency medical response system, and
• To empower the next generation of healthcare professionals, positioning Ethiopia at the forefront of life-saving medical innovation.

Ethiopia celebrates Epiphany as is the case with other countries with orthodox Christian religious traditions. The celebration is a three days open air event besides liturgical practices. It is being celebrated across the country. So far no security incident is reported despite there being a concern after the government announced that it might use drones for security operations during the celebration. In the capital Addis Ababa, it was celebrated in Janmeda in the presence of His Holiness Abune Mathias, Patriarch of the Ethiopian Orthodox Tewahedo Church. The celebration in Gondar usually attracts millions of people from across Ethiopia as well as tourists from abroad. Despite the ongoing war in the region, the celebration in Gondar was still colorful. Normally, Timkat attracts hundreds of thousands of tourists from outside of Ethiopia but that is not happening – apparently due to the security situation in the country. His Holiness Abune Mathias called for peace and unity in the country. He sees that everyone has a role to play towards achieving those goals. The Catholic Church in Ethiopia has also celebrated the holiday.

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Ethiopia’s nominal GDP, measured in US dollars, fell drastically from $207 billion in June 2016 E.C. (2024 G.C.) to $100 billion by September 2017 E.C. (2024 G.C.), according to the Ministry of Finance’s quarterly government debt report. This significant decline is attributed to the introduction of a market-based foreign exchange trading system in Hamle 2016 E.C. (July 2024 G.C.). The revaluation of the Ethiopian birr led to a sharp reduction in the country’s GDP when converted to dollars. The GDP figure, which stood at $207 billion a month before the currency adjustment in Sene 2016 E.C. (June 2024 G.C.), dropped to $100 billion within three months. As a result of these changes, Ethiopia’s total public debt-to-GDP ratio rose from 32.9% in June 2016 E.C. (2024 G.C.) to 50.3% by September 2017 E.C. (2024 G.C.). The government’s external debt grew from $28.8 billion to $31 billion during this period, fueled by the exchange rate adjustment and new loans totalling $1.6 billion from the International Monetary Fund (IMF) and the World Bank. The report highlights that the external debt stock increased by 7.5%, and the external debt-to-GDP ratio more than doubled, rising from 13.9% in June 2016 E.C. (2024 G.C.) to 30.9% by September 2017 E.C. (2025 G.C.). This exceeded the 30% ceiling recommended by the IMF and the World Bank for low-income countries.

WASHINGTON (Reuters) - The executive board of the International Monetary Fund on Friday approved the second review of Ethiopia's current financing program, the fund said, paving the way for a disbursement of about $250 million. The East African nation struck the four-year, $3.4 billion program deal last July, after it undertook far-reaching reforms including the floatation of its birr currency, to enable it to try to put its debt restructuring back on track. "The authorities continue their efforts to restore debt sustainability and are taking steps to secure a debt treatment. The progress made on debt restructuring negotiations under the Common Framework is welcome," the IMF said in a statement. "The financing assurances received, and adjustment efforts made are consistent with IMF policy requirements and program parameters." The Fund's staff and the government reached agreement on the second review in late November. The IMF has assessed that Ethiopia's economy has fared better than expected under the reform program, with projected surge in inflationary pressure failing to materialise and hard currency reserves rising faster than the envisaged rate. After unusually fast reviews of Ethiopia's programme that were aimed at closely monitoring the impact of the reforms, the IMF said in November it would switch to the conventional six-month review schedule.

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Awash Insurance has entered a strategic partnership with Safaricom that enables the integration of its services on the MPESA payment platform. Customers will now be able to make premium payments, and other insurance-related transactions directly via M-PESA. The latest partnership is a significant milestone for the payment operator’s services in Ethiopia which entered into a similar agreement with Nyala Insurance a few weeks back. While the M-PESA service is integrated into several Ethiopian banks, it recently began to establish partnership with insurers. “We are confident this partnership will enable Awash Insurance to offer its customers a seamless experience for making insurance payments and streamline its operations by leveraging M-PESA’s mobile payment solutions,” said Elsa Muzollini, CEO of Safaricom M-PESA. Awash recently celebrated three decades of operations in Ethiopia’s insurance industry as it capped off a year marked by nearly 902-million-birr profits. The insurer has also managed to raise its paid-up capital to 2.5 billion birr which rivals some of the country’s smaller banks. Ethiopia has one of the smallest insurance penetration rates in the world, with less than 1% of the over 120 million citizens being insured. While 18 insurance companies operate in the country with assets close to 40 billion birr last year, over half of the coverage is either for motor or maritime insurance. “By integrating M-PESA's trusted mobile payment platform, we are making insurance services more accessible, efficient, and convenient for everyone, as the digital era demands tailored services without complications,”said Jibat A. Faji, CEO of Awash Insurance.

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The International Monetary Fund’s executive board of directors is scheduled to meet this week to discuss Ethiopia’s latest review under a $3.4 billion loan.

The formal meeting for the extended credit facility is set for Jan. 17, and will pave the way for the completion of the second review of the program, after the Washington-based lender announced a staff level agreement last year. A spokesperson for the IMF confirmed that the board is set to meet on Friday.

If approved by the board, the review would allow the disbursement of more than $250 million.

The latest review doesn’t mention an agreement in principle between the government and its official creditors on a debt rework, according to people familiar with the matter, who asked not to be named because the details aren’t public.

“Key milestones have been reached under the Common Framework process, and IMF staff assess that sufficient progress has been made to recommend approval of the review to the Board,” the IMF said in response to Bloomberg questions, without providing further details.

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An iconic figure in African history, Haile Selassie is remembered as a powerful and progressive politician who modernized Ethiopia. His policies earned him much reverence and the attention of Black leadership outside the country. Not only was he an emperor, but for some, he is considered a god.

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Wegagen Bank has partnered with E-Birr to launch a new mobile money service, replacing its previous collaboration with BelCash. The service, unveiled on Tuesday, allows users to open wallet accounts, transfer funds, and make payments via a mobile app or by dialing the USSD code *602#. Yehwalashet Zewdu, Deputy CEO of Enterprise Services at Wegagen Bank, highlighted the potential of this service during the official launch event held in Shire, Tigray Regional State. E-Birr Mobile Financial Services is a telecom value-added and mobile financial services provider established in 2016. The firm partners with financial institutions to offer its mobile money platform, E-birr. Collaborators include the Cooperative Bank of Oromia and Kaffi Microfinance Institution. E-Birr has facilitated transactions exceeding 2 trillion birr and had 18.2 million users as of June 2024. ​Belcash Technology Solutions, a tech company in the same field, had been the technology partner of Wegagen's mobile money platform since 2018. Under the HelloCash brand, the two provided the platform, similar to Belcah's collaborations with other institutions like Lion Bank. However, according to Fisseha Wube, Senior Marketing & Communications Officer at Wegagen Bank, the partnership with E-Birr replaces the HelloCash platform. “Wegagen HelloCash has ceased operations as of November 4, 2024,” Fisseha stated, adding that the decision to dissolve the partnership stemmed from a lack of financial viability.

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Ethiopia’s forex parallel market continues to experience significant volatility, with the rate soaring to 150 ETB per USD, a sharp increase from the 130 ETB per USD recorded just two weeks ago. This fluctuation underscores the challenges of aligning the official and parallel exchange rates, despite ongoing efforts by the government and commercial banks to stabilize the market. As part of a broader economic policy reform agreed with the International Monetary Fund (IMF), the liberalization of the forex market was intended to close the gap between the official and parallel markets. The shift to a floating exchange rate was also intended to enhance market transparency, increase liquidity, and reduce reliance on informal trading. However, although the forex reserve has improved, the rise in parallel market prices underscores the ongoing challenge of balancing the supply and demand for foreign exchange. Commercial banks have intensified efforts to attract remittances, a crucial source of foreign exchange for the country. One prominent initiative is the “CashGo” mobile application, developed by EagleLion, which allows Ethiopians living abroad to send money back home quickly and securely. The app is supported by major Ethiopian banks, including the Bank of Abyssinia, Commercial Bank of Ethiopia (CBE), and Dashen Bank. While CashGo is a key part of the push to channel remittances through formal banking channels, the growth in remittance inflows, rising by 24 percent over the past three months, can be attributed to a broader set of efforts by both the government and commercial banks to promote formal remittance systems.

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Dashen Bank has launched a banking super app, providing an all-in-one banking solution that is a first for Ethiopia’s banking sector. Developed in partnership with EagleLion System Technology, the bank celebrated the app's launch during a high-profile event on Tuesday night at the Sheraton Addis Hotel. According to the bank, the supper app is designed for "speed, reliability, and customer satisfaction." The app integrates personal and business banking into a single intuitive platform, offering features such as access to multiple accounts and a range of Sharia-compliant, interest-free banking options. Additional functionalities include a budget management tool, chat features, and third-party merchant integrations branded as "Three Click Shopping," enabling customers to purchase products and services with just three clicks. The super app is being rolled out in phases. The second phase will introduce microloans based on transaction history. An AI-powered self-onboarding process that verifies customer identity is also in the pipeline. Currently, users must visit branch offices to activate their accounts. "With the Dashen Bank Super App, we are enhancing our digital banking services. We remain committed to delivering innovative, up-to-date, and reliable digital banking solutions in collaboration with strategic partners,” said Asfaw Alemu, CEO of Dashen Bank. In November 2024, the National Bank of Ethiopia approved digital (remote) customer onboarding for opening bank accounts, provided all required information is collected.

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A new Science, Technology, and Innovation Policy aims to boost the country’s innovation rankings and drive sustainable growth. It’s an ambitious strategy focusing on top national priorities such as human capital, research, local innovation, and more. Ethiopia has finalized its Science, Technology, and Innovation (STI) Policy Implementation Strategy, marking a critical step in empowering the country’s home-grown economy and innovation efforts. Approved in 2022 by the Council of Ministers, the strategy aligns with national priorities, including Digital Ethiopia 2025. It was developed through a collaborative process, with support from the International Trade Centre’s Netherlands Trust Fund V (NTF V), which looks at driving systemic change in the country’s innovation ecosystem. Ethiopia’s position in the 2024 Global Innovation Index dropped by five places to 130th, with room for improvement in human capital, research, and market sophistication. The rankings highlight the need for stronger innovation infrastructure, better research funding, and improved private sector engagement. The NTF V project played a pivotal role in developing the STI Implementation Strategy. Over the course of a year, the project leads engaged more than 100 stakeholders, conducted workshops, and incorporated inputs from government, academia, and private sector representatives. The process also produced three sector-specific case studies and outlined mechanisms for measuring policy impact.

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A civil engineer has debuted his second online platform, AddisCAD, which targets bottlenecks in the construction industry, this time tackling design hassles. The platform began offering its services two months back, featuring complete designs and customizable templates for prospective builders. Founder Mecha Teshome hopes to see the platform grow into a reliable portal where professional engineers and designers can sell their creations. “Ideas and insights can be generated by interacting with the platform,” Mecha told Shega. The Bahir Dar University alumnus predicts future evolutions in Ethiopia’s construction industry based on the successful adoption of technology. He expects the availability of design options to relieve prospective builders from the pressure of rushing into a project without having a design that fully meets their goal. The platform features comprehensive building models and interior design options for completed projects. Mecha is also the one behind the Addis Cost Estimator platform, which provides detailed cost breakdowns for people undertaking a construction project. Despite being trained as an engineer, the ambitious founder began developing platforms after attending courses from ALX Africa. Research shows that the Ethiopian construction industry is plagued by project delays partly stemming from incomplete planning, lack of capacity, and cost fluctuations. Recent efforts by the Construction Management Institute have included introducing tools like Building Information Modelling (BIM), software that integrates design, construction, budgets, and schedules into one central platform.

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A new insight report on Ethiopia’s startup landscape reveals the concentration of funding in a few standout firms while the ecosystem combined has a total enterprise valuation of $302 million. The Report prepared by GrowthAfrica and Systemic Innovation under an FCDO-supported Research and Innovation Systems for Africa (RISA) Fund project relays interesting figures into Ethiopia’s entrepreneurial ecosystem. After assessing data compiled from 562 companies, of which 489 are startups, through Dealroom, the Report indicates that no firms crossed the $200 million valuation until 2024. Companies founded between 2015 and 2020 are key drivers of value, starting with a modest $6 million value in 2016, growing to $157 million by 2019, and peaking at $182 million in 2022. The report, dubbed The State of Startup Innovation in Ethiopia, also explores investment trends, employment contributions, enterprise valuations, and sector-specific activity. However, it includes businesses that may not fully meet the definition of a startup. Scott Walker, CEO of Systemic Innovation, explained in an email to Shega that the report aims to present a holistic view of the entrepreneurial ecosystem. According to Walker, startups defined as firms less than 10 years old were the primary focus, as requested by the government. “Our approach also considers the broader ecosystem by utilizing Total Enterprise Value (TEV), a globally recognized standard, to ensure consistency across businesses of varying sizes and stages,” he stated.

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January 10, 2025 – Wegagen Bank has officially become the first company to list on the Ethiopian Stock Exchange (ESX), marking a historic milestone in Ethiopia’s financial sector. The announcement was made during the ESX launch ceremony at the Science Museum in Addis Ababa, attended by Prime Minister Abiy Ahmed (PhD) and other senior government officials. By meeting the necessary listing requirements, Wegagen Bank has taken a major step toward modernizing its operations and leveraging the opportunities of Ethiopia’s emerging capital market. The listing provides the bank with a structured, technology-driven platform to raise additional capital, offering shareholders real-time market pricing, access to crucial financial information, and secure share trading options. This achievement follows the bank’s strategic efforts to align with recent financial sector reforms. Wegagen Bank collaborated with international consultants to explore its capital market opportunities and invested in capacity-building programs, including training and experience-sharing initiatives for its board, management, and employees. In a statement, the bank reaffirmed its commitment to fulfilling market obligations and contributing to the growth of Ethiopia’s capital market. It also expressed pride in being a pioneer in this new financial landscape, pledging to create further investment opportunities as the country’s financial sector evolves.

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The UNC Eshelman School of Pharmacy, in partnership with Addis Ababa University and the co-director of the UNC-Ethiopia Alliance, Benyam Muluneh, recently launched a leadership program for pharmacy administrators in Ethiopia. Led by pharmacy faculty members Michael Stepanovic, Kathryn Morbitzer and Stephen F. Eckel, the pharmacy administration and leadership short course training program is designed to enhance pharmacy administration and leadership skills within Ethiopia’s dynamic health care sector. “After a recent visit from pharmacy students, and a discussion with Dr. Muluneh, we realized hospitals are underutilizing trained clinical pharmacists,” said Eckel. “In an effort to counter that, this leadership training program is focused on growing the abilities of pharmacy administrators, with the long-term hope that these skills will assist in the growth of clinical pharmacy.” The program commenced with an in-person kickoff in September in Addis Ababa, where Stepanovic and Eckel conducted workshops and lectures focusing on pharmacy administration and leadership. The training aims to empower participants with the ability to navigate and drive change effectively, articulate the importance of mission statements and strategic planning, and build proficient teams to achieve collective goals. Participants will also learn techniques for engaging and empowering colleagues, exhibit effective communication skills, adapt leadership approaches based on personal values and strengths, design comprehensive business plans and manage the entire employee lifecycle from recruitment to coaching.

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ETHIOPIAN Railways Corporation (ERC) is seeking to resume construction on the abandoned project to build a 392km standard-gauge line from Awash to Kombolcha and Hara Gebeya in the north of the country. ERC has launched a tender inviting international bidders to submit expressions of interest for a consultancy contract to conduct a loss assessment and to support the resumption of construction of the railway, which was abandoned in 2020. The deadline for submissions is January 14. The project was previously led by Turkish contractor Yapi Merkezi under an EPC turnkey contract starting in 2015 after a financing package for the $US 1.7bn project was agreed with Turkish Exim Bank, Credit Suisse and European export credit agencies. Systra acted as a consultant on the scheme and there was significant progress, with most of the infrastructure completed, including tracklaying on some sections. However, work came to a sudden halt after war broke out in northern Ethiopia in November 2020, leading Yapi Merkezi to abandon the project due to safety concerns. Fighting took place near the construction sites and Yapi Merkzi has claimed that equipment was stolen and infrastructure was damaged. The war officially ended in November 2022, although the region is continuing to suffer the consequences of the conflict, which is estimated to have caused $US 22bn of direct damage and $US 6bn of economic losses, accounting for 20.4% and 5.5% of the country’s GDP respectively.

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CoinDesk reported on the 7th (local time) that the cryptocurrency mining company Bit Mining recently acquired a 51MW (megawatt) Bitcoin mining facility located in Ethiopia for $14 million (approximately 20 billion KRW). The facility acquired by Bit Mining includes about 18,000 Bitcoin mining devices. This is the first time Bit Mining has secured a mining facility outside of Ohio. Yuwei Yang, the chief economist of the cryptocurrency mining company Bit Mining, explained, "The electricity cost in Ohio is at least 70% to nearly twice as expensive as in Ethiopia," adding, "With Ethiopia's cheap electricity, we can extend the lifespan of Bitcoin mining equipment that could have been used for 2-3 years in the US." Bit Mining plans to maximize profitability by installing the latest mining equipment in the US and older equipment in Ethiopia. Economist Yang stated, "This strategy can extend the lifespan of mining equipment by more than two years," and "it will provide higher returns to investors, enabling more capital inflow."

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A volcanic eruption has struck Ethiopia's central Mount Dofan, a region that has recently experienced frequent minor tremors, according to local media reports on Friday.

The tremors in the Awash Fentale region, which is approximately 142 miles (230 kilometers) from Addis Ababa, have been felt as far as the capital city, raising concerns about a potential major disaster.

In recent weeks, more than a dozen minor earthquakes have been recorded in the Awash Fentale area and surrounding regions, adding to residents' concerns about the seismic activity's impact.

Efforts are underway to prevent casualties by relocating at-risk residents to safer areas, the state-owned Fana Broadcasting Corporation reported, citing Regional Administrator Abdu Ali.

The tremors are continuing and becoming more powerful, with the most recent being felt in Addis Ababa overnight, Ali noted.

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Nyala Insurance has become the first Ethiopian insurance company to integrate M-Pesa, Safaricom's mobile money service. Under the agreement, Nyala Insurance customers can make premium payments, renew policies, and conduct other insurance-related transactions through M-PESA. Safaricom M-PESA will also provide Nyala Insurance with access to the M-PESA platform enabling the Insurer to accept mobile payments in real time. This will allow Nyala Insurance to reach a wider customer base, streamline their payment processes, and offer greater flexibility to their clients. M-Pesa, officially Launched in Ethiopia on August 2023, has been integrated into the mobile banking service of several banks while just foraying into the insurance sector. Ethiopia has one of the smallest insurance penetration rates in the world, with less than 1% of the over 120 million citizens being insured. While 18 insurance companies operate in the country with assets close to 40 billion birr last year, over half of the coverage is either for motor or maritime insurance. By embracing M-Pesa, Nyala hopes to overcome some of the barriers to insurance adoption, particularly in rural and underserved areas where traditional banking services remain limited. During the Insurer’s 30^th general assembly meeting in November, Nyala reported gross profits of 634 million birr while settling nearly 350-million-birr claims in the 2023/24 financial year. For Nyala Insurance, the integration with M PESA represents a step toward improving accessibility and efficiency in a country where mobile money services are rapidly gaining traction, according to Tegegn Masresha, Chief Customer Officer of Nyala Insurance.

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Allegations of rural inaccessibility, internet shutdowns, hefty tariffs, and service unreliability were forwarded against Ethiopia’s state-owned telecom operator at Parliament. Management from Ethio telecom, which recently issued Ethiopia’s first Initial Public Offering (IPO), were busy Wednesday morning responding to over 236 questions issued by the public and MPs. As the 130-year-old state-owned operator embarks on the final stage of its three-year growth strategy, it has amassed a formidable 80 million-strong customer base. However, an underdeveloped road infrastructure, limited reach of national electric grid, and financial constraints continue to undermine ethio tel’s service accessibility across rural Ethiopia. Desalegn Chane (PhD), an opposition MP, demanded explanations regarding internet blackouts in areas experiencing political instability. “Internet is just about as important as water and electricity,” Desalegn stated. He pointed out how internet coverage becomes even more essential in conflict areas as it enables mobile payment and minimizes exposure of citizens to violence. Desalegn also expressed frustration over the mobile data prices of ethio tel which he felt were far too hefty.

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On the newly minted trading floor of a high-rise building in Addis Ababa’s financial district, a bell stands ready for the launch this month of the first securities market in Ethiopia since the last days of emperor Haile Selassie. “This isn’t just a milestone, it marks a new Ethiopia,” said Tilahun Kassahun, chief executive of the new Ethiopian Securities Exchange. Outside is a 50-metre tall pillar with a red star on top, built during the Marxist Derg regime that toppled the emperor and ushered in decades of state-led economic policies that are only now being dismantled. The new stock market is part of Prime Minister Abiy Ahmed’s efforts — interrupted by a ghastly two-year civil war that killed at least 600,000 people before ending in late 2022 — to open up the economy of Africa’s second-most populous nation. The most important reform, investors and lenders say, has been the liberalisation of the foreign exchange regime, a precondition of a $3.4bn IMF bailout — the Washington-based lender’s largest ever concessional programme — which was approved by its board in July. “Despite the noise, we persisted in implementing reforms,” said Eyob Tolina, the state minister for finance, adding that the government had achieved most of what it had set out to do. “It might just be easier to tell you what has not changed.”

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2024 was a pivotal year for Ethiopia as it generated around $1 billion in BTC mining profits due to its access to cheap, reliable, and renewable energy sources. Africa is a region producing fintech unicorns that provide the highly unbanked (and equally highly “smartphonized”) population and merchants with payment solutions. Companies like TymeBank, Moniepoint, and Opay have made hundreds of millions of dollars by creating and maintaining payment mobile apps and ground touchpoints. In conditions where banks are absent—80% of Africans don’t have bank cards—digital money solutions are filling the void, and cryptocurrency is one of the factors shaping the modern-day financial reality of the continent.

Ethiopia entered the global BTC mining top

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December 23, 2017 – In a landmark move to streamline banking services and promote financial inclusion, the National Bank of Ethiopia (NBE) announced that all banks in Addis Ababa must now require customers to present a Faida digital ID—commonly referred to as the “Faida number”—when opening a new account. This directive officially took effect today, December 23, 2017. This change is part of a broader strategy for Ethiopia’s national digital ID, Fayda, to soon become mandatory for all transactions with financial institutions. According to a recent joint announcement by the NBE and the National ID Program, the plan is to enroll all bank customers for the digital ID during the 2023/2024 financial year. Once fully implemented, Fayda will serve as the primary ID for Know Your Customer (KYC) checks and remote onboarding, guaranteeing data privacy and security. By using Fayda, banks expect to simplify identity verification, expedite account-opening procedures, and reduce paperwork—leading to faster, more reliable services for customers. The NBE emphasizes that the initiative also aims to significantly enhance transparency, stability, and security in Ethiopia’s financial sector. This approach differs somewhat from Nigeria’s, where banks can issue cards that serve both as national IDs and for financial transactions. Meanwhile, Ethiopia—supported by the World Bank—is working on a MOSIP-based digital ID project to enroll all eligible citizens by 2025. In addition, the government recently partnered with IrisGuard to implement iris-based biometrics for benefits payments, signaling a broader commitment to technological innovation in public services.

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Ethiopia is poised to revolutionize its financial landscape with the enactment of the Banking Business Proclamation No. 1360/2024, signaling a historic shift from its traditionally closed banking sector. For decades, Ethiopia’s banking system was exclusively reserved for domestic investors, limiting opportunities for growth and modernization. This cautious approach aimed to shield domestic banks from external competition, allowing them to develop in a protected environment. However, the limited exposure to international banking standards also slowed the adoption of global best practices and restricted access to foreign capital. With this new legislation, Ethiopia is now welcoming foreign banks into its financial ecosystem, laying the groundwork for broader economic reforms and global integration. The Proclamation enables reputable foreign banks that are well-established, financially sound, and regulated by their home countries’ authorities to invest and operate in Ethiopia. It provides three primary avenues for foreign banks to enter the market,

1. Establishing wholly or partially owned subsidiaries,
2. Setting up branches, and
3. Acquiring shares in existing or new domestic banks.

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A series of shallow earthquakes were recorded in recent days near the Fentale volcano in Ethiopia’s Main Ethiopian Rift region, raising concerns about a potential volcanic eruption. The last eruption at this volcano took place in 1820. Seismic activity around the Fentale volcano in Ethiopia has increased over the past 2 days with multiple earthquakes of magnitudes ranging from 4.3 to 5.1. The largest earthquake occurred at 22:20 UTC on December 29 measuring M5.1 with an epicenter located approximately 46 km (28 miles) north of Metahara and 119 km (74 miles) northeast of Nazret. “Over the past few days, seismic activity in the Awash area has picked up significantly. The real number of quakes is unknown as there is no seismic network (or at least no publicly available) covering the area and only the largest events can be identified on global networks,” volcanologist Tom Pfeiffer of VolcanoDiscovery noted. The shallow earthquake occurred at a depth of 10 km (6.2 miles) and was widely felt in the region including the capital, Addis Ababa. The latest earthquake of M4.7 struck at 07:42 UTC on December 30 approximately 23 km (14 miles) southeast of Metahara. It originated at a depth of 10 km (6.2 miles) like previous tremors.

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This year, Ethiopia’s economy will invite optimistic phenomena as the nation takes bold steps to reshape its financial landscape. The shift to a floating exchange rate marks a pivotal moment, fostering transparency and encouraging investor confidence. Alongside this, the establishment of the Ethiopian Securities Exchange is set to open new doors for businesses and investors, providing a platform for capital growth and economic dynamism. Adding to this momentum, the entry of foreign banks promises to bring global expertise, increased competition, and a fresh influx of capital, positioning Ethiopia’s economy for a transformative leap forward. However, while the capital market presents immense opportunities, experts warn that the entry of foreign banks could pose significant challenges to young and emerging banks. ZamZam Bank, one of Ethiopia’s pioneering interest-free banks, was officially established in 2020, making history as the country’s first full-fledged Islamic bank. As Ethiopia opens its doors to foreign banks, ZamZam is among the emerging banks likely to feel the impact of increased competition, facing pressure to innovate and solidify its market share amidst a rapidly evolving financial landscape. “When we talk about foreign banks entering the Ethiopian market, they will primarily come from neighboring Central Eastern countries,” said Melika Bedri, CEO of ZamZam Bank. “We are currently investigating which banks will enter, with the intention of forming partnerships and working together.” In its first year, ZamZam Bank faced a loss of 145.42 million Birr due to economic adversities. However, the bank’s strategy of boosting income through financing and investment activities ultimately turned its fortunes around.

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Ethiopia’s leather industry gets a solid foot into international markets as three tanneries received certifications from the UK-based global industry association—Leather Working Group (LWG). Members of the Group include famous brands like Adidas, Giorgio Armani, and H&M, among hundreds of other buyers who rely on the certification to identify sustainably sourced leather for their supply chain. Vetted for 17 criteria, which include pollution, water and energy usage, and information management, the certification grants the tanneries accessibility to international markets. Elico, Awash, and Batu Tannery underwent a rigorous capacity-building program for four months before meeting the minimum criteria for the international audit. They also self-financed the necessary upgrades to qualify for the certification. Wendu Legese, National Coordinator at UNIDO, indicates that the three companies mark the first Ethiopian-owned establishments to get LWG’s nod. UNIDO provided technical and training assistance to the three tanneries in helping them qualify for the international audit. “The biggest buyers in the world are part of the group (LWG),” Wendu told Shega. The former head of Ethiopia’s Leather Industry Development Institute (LIDI) foresees significant benefits to the export competitiveness of products coming out of the tanneries. He also pointed out that the experiences of the tanneries would be replicated nationally in collaboration with LIDI. “International markets demand traceability from their products,” Wendu says. Ethiopia’s leather industry has faced significant challenges over the past few years stemming from poor hide collection, inadequate foreign currency to buy chemicals, and dwindling production. Despite having the largest livestock population in Africa, exports have continued to plummet, falling by nearly 30% just in the third quarter of 2023/24.

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An eight-month-old company has debuted a digital booking platform developed for the Document Authentication & Registration Service (DARS) as its first product. Dubbed Qetero, eponymously named after the Company, the Platform resolves long queues and delayed service stereotypically associated with DARS. All services can now solely be accessed from DARS federal offices through Qetero. Customers can find the nearest branch office, available set of services and get the exact time when a service will be available to them after registration. A set of services that align with the Platform’s name which translates to “an appointment” in Amharic. “There is no need to wait around for hours,” Hamid Kinniso , Director of DARS told Shega. He recalled how the Company itself approached DARS offering the digital solution for free. A seven-month development process ensued after they agreed on the type of service, according to the Director. Hamid expects the practice of selling positions at queues and close the window for corruption in the services of DARS. DARS was established under Proclamation 334/2003 to provide authentication and notary services as part of an effort to organize the services distributed among courts and public offices. The new platform gives access to DARS Federal offices located in Addis Ababa and Dire Dawa. An eight-month-old company has debuted a digital booking platform developed for the Document Authentication & Registration Service (DARS) as its first product. Dubbed Qetero, eponymously named after the Company, the Platform resolves long queues and delayed service stereotypically associated with DARS. All services can now solely be accessed from DARS federal offices through Qetero. Customers can find the nearest branch office, available set of services and get the exact time when a service will be available to them after registration. A set of services that align with the Platform’s name which translates to “an appointment” in Amharic. “There is no need to wait around for hours,” Hamid Kinniso , Director of DARS told Shega. He recalled how the Company itself approached DARS offering the digital solution for free. A seven-month development process ensued after they agreed on the type of service, according to the Director. Hamid expects the practice of selling positions at queues and close the window for corruption in the services of DARS.

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The U.S. Embassy Ethiopia/ Bureau of Africa of the U.S. Department of State announces an open competition for organizations or individuals to submit a statement of interest (SOI) to carry out public engagement programs.

PD Ethiopia invites SOIs for programs that strengthen cultural ties between the United States and Ethiopia through cultural, media, and exchange and programs that highlight shared values and promote bilateral cooperation. All programs must include an American cultural element or connection with U.S. experts, organizations, or institutions that will promote increased understanding of U.S. policies, values, and perspectives. PD grant programs include, but are not limited to:

• Academic and professional lectures, seminars, and speaker programs
• Artistic and cultural workshops, performances, and exhibitions
• Programs developed by alumni of U.S.- sponsored exchange and programs
• Programs that strengthen relationships between Ethiopian and U.S. universities, businesses, and/or organizations
• Media training

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Ethiopia has launched an electronic Public-Private Dialogue (E-PPD) platform aimed at improving communication and collaboration between the government and the private sector. Funded by the European Union and implemented by GIZ, the Business and Investment Climate (BEIC) project developed this platform with an estimated investment of 3 million birr. “The platform aims to address critical policy and business challenges through structured dialogues that utilize data and align with internationally recognized best practices.” Says Serkalem Tafesse, Communications at EuroChamber. The PPD Platform operates through a dynamic ecosystem that includes dialogue forums, digital tools, and administrative structures. It begins with issue identification, where Government agencies, businesses, and civil society organizations can submit policy proposals through the online portal. The Ethiopian Chamber of Commerce and Sectoral Associations (ECCSA) reviews these proposals, and expert working groups analyze the issues raised. Part of the data-driven policy cycle, which comprises, E-consultation, E-legislation, and E-PDD, the platform is co-chaired by the Ministry of Trade and Regional Integration (MoTRI) and ECCSA. It includes online forums, tools for document sharing, and features to track progress on policy initiatives. The Ministry of Innovation and Technology hosts the platform, while ECCSA manages its day-to-day operations. By facilitating communication and data-sharing, the E-PPD platform aims to enhance policymaking and improve the business environment in Ethiopia.

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Amhara Bank is taking a bold step forward by venturing into investment banking services, signaling its ambition to play a pivotal role in Ethiopia’s emerging capital markets. This strategic move positions the bank as a key player in the nation’s financial evolution, aiming to provide tailored solutions for both businesses and individual investors. The announcement comes as the bank continues to report robust growth, with a 146% surge in revenue and a profit per share increase to 8.3% this fiscal year. With total assets reaching 35.2 billion birr, Amhara Bank is well-equipped to diversify its offerings and meet the growing demand for sophisticated financial services in Ethiopia. Investment banking services are expected to enable the bank to assist businesses in raising capital, facilitate mergers and acquisitions, and provide financial advisory services. These offerings align with Ethiopia’s ongoing economic reforms, including the introduction of capital markets, which are set to open new avenues for growth and investment. “We see immense potential in Ethiopia’s financial sector, and investment banking is a natural next step in our journey,” said Yohannes Ayalew, speaking in the bank’s annual report. “Our goal is to provide comprehensive financial solutions that empower businesses and contribute to the nation’s economic development.”

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Local tech firm Vulcan ICT has entered into a partnership with the Ethiopian Coffee & Tea Authority (ECTA) to develop a coffee traceability platform as the compliance deadline with the European Union’s Deforestation Regulation (EUDR) gets closer. Adugna Debela (PhD), ECTA’s Director General, and Vulcan’s CEO Henok Alemayehu signed the contract that targets key strategic goals. Central to the agreement is enabling compliance with EUDR, which demands due diligence on all coffee sold in the European market by December 2025. The EU accounts for more than a third of all merchandise exports from Ethiopia, with coffee remaining consistently in the top two commodity types. Coffee is among the seven commodities (cattle, cocoa, coffee, palm oil, rubber, soy, and wood) that fall within EUDR’s purview. EUDR introduces stringent due diligence requirements to ensure that these agricultural commodities imported into the EU are free of deforestation, forest degradation, human rights violations, and even indigenous community rights. Failure to comply with the due diligence requirements could seriously disrupt local supply chains. In the most extreme scenario, where exports to the EU cease completely, Ethiopia could face an 18.4% drop in overall exports, a 5.8% fall in imports, a 0.6% decrease in GDP, and a 3.3% reduction in public revenue. Signed on December 9, 2024, the contract between ECTA and Vulcan focuses on the collection of Geolocation data, essential for maintaining quality control and ensuring compliance with EUDR.

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BYD, the leading Chinese Electric Vehicle Maker, announced Thursday that it has entered the Ethiopian Market. According to a FBC, state owned media outlet, a brand launch event was organized in Addis Ababa in partnership with  Moenco subsidiary to Inchcape PLC , a London-based company specializing in global distribution & retail services for premium and luxury automotive sectors. “BYD has officially entered the Ethiopian market in partnership with Moenco, an Inchcape company, to provide a comprehensive sales network and extensive after sales service for consumers,” the company said in a social media update shared Tuesday. It is introducing five electric car models to the market in the Horn of African country.  It is offering vehicles  “ranging from the compact BYD SEAGUALL to the spacious performance SUV, the BYD TANG,” as disclosed on the social media page of the company. It has  launched a showroom in the capital Addis Ababa in Bole Sub City. FBC  quoted Yao Shu, BYD’s Sales Director for Africa and the Middle East, as saying  “Our entry into the Ethiopian market signifies a pivotal step in BYD’s expansion in East Africa. Ethiopia’s vision for electrification resonates with BYD’s objectives. We are confident in propelling electric mobility forward in Ethiopia.” Early this year, Ethiopia announced legislation banning the importation of vehicles except for electric cars – which was introduced as part of “Ethiopia’s Logistics Master Plan” when the Minister for Transport, Alemu Sime, presented a report to the Ethiopian parliament.

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Land title and real estate transfers have been suspended for five months across six districts in Addis Ababa. The Land Holding Registration & Information Agency informed state media outlets that the ban was put in place to enable validation of deeds and onboarding onto the digital cadaster system. Aqaqi Qaliti, Nifas Silk Laphto, Kolfe Qeranyo, Bole, Yeka, and Lemi Kura districts have been selected for the cadaster registration that is set to last until April. Around 54% of land titles in Ethiopia’s capital have been verified and onboarded into the cadaster system. The Agency has called for titleholders in the six districts to begin the process of registration and verification at their respective Woredas. Cadasters enable detailed representation of land parcels while providing comprehensive information on ownership, land size, and boundaries utilizing multiple tools. Property and deed transfers have been subject to prolonged suspensions on multiple occasions over the past three years. Prior suspensions were attributed to the proliferation of illicit activities and the City administration’s attempt to rein in control.

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Ethiopia’s financial system is set to receive a transformative boost following the World Bank’s approval of a $700 million credit for the Financial Sector Strengthening Project (FSSP). This ambitious initiative, funded through the International Development Association (IDA), aims to fortify the stability and resilience of Ethiopia’s financial sector, laying the groundwork for sustainable economic growth. Ethiopia’s financial system currently faces significant hurdles, including outdated regulatory frameworks and struggling public financial institutions. The FSSP is designed to address these challenges by modernizing the regulatory and supervisory framework of the National Bank of Ethiopia (NBE), overhauling governance structures, and restructuring the balance sheets of key institutions like the Commercial Bank of Ethiopia (CBE) and the Development Bank of Ethiopia (DBE). The project will also support the transformation of the DBE into a sustainable development finance institution, ensuring its long-term viability in driving Ethiopia’s economic development. A critical component of the initiative is the capacity-building and implementation support for the NBE, CBE, and DBE, aimed at fostering resilience and improving financial accessibility for Ethiopians across the board.

A Pathway to Stability and Growth

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Ethio Diaspora Hub and Ashewa Technology Forge Strategic Partnership Addis Ababa, Ethiopia – December 20, 2024 Ethio Diaspora Hub is delighted to announce the signing of a Memorandum of Understanding (MoU) with Ashewa Technology, a prominent technology solutions provider based in Ethiopia. This landmark agreement, signed on Friday, December 20, 2024, lays the groundwork for collaborative initiatives aimed at empowering the global Ethiopian diaspora through innovative tech-driven services.

Shared Vision and Objectives

• Enhanced Online Platforms: Streamlined digital environments where diaspora members can access resources, connect with peers, and support economic development back home.
• Knowledge Transfer and Skill Development: Collaborative projects, webinars, and learning modules designed to foster continuous learning and professional advancement.
• Business and Investment Opportunities: Tailored tech solutions and informative sessions that open pathways for diaspora entrepreneurs and investors to engage more actively with Ethiopia’s rapidly growing markets.

About Ashewa Technology

About Ethio Diaspora Hub

Looking Ahead

• Developing user-focused applications that simplify diaspora engagement with Ethiopian businesses.
• Hosting skill-building workshops covering topics like digital entrepreneurship, financial literacy, and professional growth.
• Launching integrated online systems that streamline communication, enhance knowledge exchange, and boost economic participation.

The National Bank of Ethiopia (NBE) has launched an online platform and a dedicated hotline (7230) to help customers file complaints against financial institutions. The initiative is part of NBE's broader efforts to address prevalent issues within the financial sector, such as aggressive sales tactics, misleading advertising, and lack of transparency, according to a statement posted on NBE’s website. The online platform allows consumers to file complaints against financial institutions if they are unable to resolve issues internally. If a complaint remains unresolved for ten business days, consumers can “escalate” the matter to NBE. NBE established the Financial Consumer Protection and Education Directorate (FCPED) after the Financial Consumer Protection Directive was passed into law in 2020. The FCPED's role is to promote financial inclusion, trust, and stability in the financial system. The directive mandates all financial institutions to set up internal complaint-handling units. These units must receive and address complaints in multiple languages, provide unique tracking numbers, and conclude investigations within ten working days. Consumers who are dissatisfied with the resolution provided by the financial institution or who have not received a response can appeal to the NBE.

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High-ranking executives from Starbucks, the world’s largest coffee chain, have made a discreet visit to Ethiopia, the continent’s leading coffee producer. While Starbucks representatives have described this visit as a "low-profile business trip," it seems anything but low-key to industry insiders, as it ushered in high-level global executives. The high-profile delegation included executives from Starbucks’ trading division, Starbucks Coffee Trading Company, including Andres Berron, Managing Director and Vice President, Elliot Bentzen, Director of Trading & Traffic, Michelle Burns, Executive Vice President of Global Coffee & Sustainability, as well as other senior personnel from Starbucks’ roasting division. Starbucks Coffee Trading Company oversees the coffee chain’s extensive green coffee supply chain globally, including transportation and quality. Behailu Woldesenbet, the country manager for Starbucks' Farmer Support Center in Ethiopia, described the trip as very low profile and refrained from commenting on its business objectives. Starbucks typically conducts annual visits to its suppliers in Ethiopia; however, this marks the first instance in an extended period that a high-ranking executive has arrived and engaged in such understated trips. Even the Ethiopian Coffee and Tea Authority was not aware of the visit. Adugna Debele (PhD), Director General of the Ethiopian Coffee and Tea Authority, told Shega that the Authority had not been officially informed of their trip or its purpose.

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TECNO, a multinational innovative technology company, launched its revolutionary line of Al-Powered cellphones into the Ethiopian market during the event, which was held at the Skylight Hotel in the evening. It was a glamorous night. The event featured displays of TECNO’s latest mobile devices, including the Phantom V Fold2 5G and Phantom V Filp2 5G. Tecno Ethiopia’s brand manager, Mr. Alick, emphasised the company’s commitment to innovation and client satisfaction. He claimed that the AI-integrated smartphone line was developed to boost productivity for business and creative professionals and that Tecno Ethiopia is a key player in the country’s digital transformation process. He emphasised that Tecno is committed to advancing accessibility and ensuring that the community gains from modern technology, demonstrating the business’s continuous dedication to innovation and inclusivity. As the event went on, renowned tech expert Mr. Solomon Kassa gave a comprehensive presentation on the new Phantom V2 Flip smartphones and how they work with Tecno Al. The audience gained a comprehensive understanding of Tecno’s advancements and how they enhance the growing capabilities of Al technology thanks to his visual presentation. The new Tecno Al Assistant app is designed to greatly enhance daily life with features like voice-to-text conversion, automated photo editing, advanced language translation, and other capabilities that simplify and expedite user interactions.

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The National Bank of Ethiopia (NBE) is poised to introduce regulations concerning cryptocurrencies and digital assets following today’s approval of the National Bank of Ethiopia Amendment Proclamation. This significant step reflects Ethiopia’s response to the rapid global developments in central banking and digital finance. The amended proclamation includes a provision that allows the NBE to regulate the use of crypto assets and digital money. While the use of cryptocurrencies for payments is prohibited under the new regulations, the NBE is authorized to issue future guidelines on digital assets in line with global trends. Mamo Mihretu, Governor of the National Bank of Ethiopia, underscored the importance of observing changes in global monetary policy and digital currency development. However, the draft bill has faced scrutiny. During the parliamentary session, members raised concerns over the vague provisions regarding cryptocurrency regulation, particularly around safeguarding digital transactions. One parliament member pointed out the ambiguity surrounding transaction protections, especially given the anonymous nature of cryptocurrency exchanges. In response, Governor Mamo assured lawmakers that the NBE would not immediately authorize the use of cryptocurrencies as legal tender. Instead, the central bank would continue monitoring global trends and may issue specific guidelines in the future to regulate crypto assets more effectively.

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Tapu Foods, a popular brand in the capital that specializes in preparing and packaging local cuisine, has onboarded itself on the online food delivery platform beU Delivery. Customers looking to save a few bucks can now have the affordably priced meals delivered straight to their doors. Tapu’s budget-friendly lunch boxes have gained popularity in recent years, especially as urban residents face rising living costs. With many meal options starting at just 105 birr, the brand frequently draws long queues at its 11 outlet stores across Addis Ababa. Yemisrach Abera founded Tapu Foods seventeen years ago under an eponymous holding business that looked to bring traditional homemade recipes to a wider audience. What started off with a few select local holiday meals has now expanded to around 55 product lines, 44 cooks, and 11 outlet stores. Beamlak Ashenafi, Marketing Director at Tapu Foods, notes that while the lunch boxes have been available for nearly three years, their popularity has surged only recently. Urbanites dealing with double-digit inflation rates for nearly five years have taken a liking to the high-quality meals available at a fraction of restaurant prices. “We had barely done any marketing,” Beamlak told Shega. She adds that increased customer demand and growing delivery requests need a partner like beU.

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Nearly fifty years after the last batch of foreign banks in Ethiopia terminated operations after the rise of the Socialist regime, Parliament has ratified a bill opening the sector back to foreign investors. The House of People’s Representatives ratified a pair of consequential bills Tuesday morning aimed at evolving the financial sector into a state at par with international best practices. The opening up of the banking sector has been marked by significant anticipation. Prime Minister Abiy Ahmed (PhD) has noted the pending entry of foreign banks since the first iteration of the Home-Grown Economic Agenda was unveiled nearly four years ago. Parliament’s Standing Committee for Planning, Budget & Finance received the draft bill at the end of the last fiscal year and has conducted a series of stakeholder sessions to sift through contentious. Ethiopia’s banking sector which manages assets of nearly 3.3 trillion birr has been largely limited in expanding financial inclusivity reaching just around 50%, according to an index by the World Bank. Banks have also lagged in expanding credit access compared to sub-Saharan countries with foreign participants, with around half a million Ethiopians having access to bank loans. Aiming to correct these and the other handicaps hindering financial sector growth and deepening, the banking law amendment was voted into law with three objections.

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Nearly a week after Ethiopia’s property valuation bill was ratified, parliamentarians spent Wednesday afternoon discussing the country’s first property tax proclamation, which is currently in the draft stage. The bill sets foundational provisions for the levying of property taxes in urban areas with details left to be ironed out by regional states and city administrations based on their economic context. Wasihun Abate, Senior Tax Policy Advisor at the Finance Ministry, explained that the tax would be calculated based on the market value added to a property as a result of the government-led urban area development. While previous iterations of the bill suggested that the amount of taxable value would not exceed a quarter of a property’s value, the Advisor indicated that it would be adjustable according to deliberations between the ministries of finance and urban & infrastructure. “It may vary according to economic circumstances,” Wasihun told the House. Under the draft bill, buildings, homes, leased land, and property improvements would face a levy of 0.1% to 1%, calculated on 25% of the property's valuation. The highest rates will be placed on property owners who have failed to develop their land despite an extended period with rights to it. Low-income households as defined by respective regional states, properties of international organizations, land rights by religious institutions, and retired citizens who are cash-poor are exempted from the tax. However, retirees will be obliged to pay half a decade of retrogressive taxes if they sell or bequeath the property.

Promising early- and growth-stage startups in the agriculture, healthcare, and education sectors are set to receive $750,000 in equity-free grants from the Ethiopian Diaspora Trust Fund (EDTF) at an upcoming summit. The Great Rift Valley Innovation Summit (GRV), scheduled for late January, will mark one of the largest fundraising and pitch competition events in the history of Ethiopia’s nascent startup ecosystem. According to Afomia Hailemeskel, co-executive producer of GRV Summit, the initiative looks to respond to the pressing need for innovative solutions that can address the challenges faced by Ethiopia’s youth. “The decision to organize this specific startup funding event stems from the growing need to empower Ethiopia’s youth to become innovative leaders in sectors that are pillars of the nation: agriculture, education, and healthcare,” Afomia told Shega. The fund, raised through contributions from Ethiopian diaspora communities worldwide, totals nearly $1 million and will be awarded in two categories. Currently accepting applications, EDTF plans to support over a dozen startups. In the first category, which is dubbed the Legacy Builder Award, a total of $650,000 will be awarded to support four entrepreneurs with strong, scalable business models that align with EDTF's impact areas. The grand prize for this category is $150,000, with an additional $50,000 People's Choice Award.

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A local enterprise spearheads solutions to industrial hurdles by assembling Computer Numerical Control (CNC) machines, —computer-controlled devices that automate the production of parts and products. Primetech Engineering is carving out a lucrative niche, helping industries save significant foreign currency while reducing waste and power consumption. CNC machines are versatile tools used across various industries to cut materials such as metal, wood, plastic, and foam. Eba Hunde, Primetech’s founding CEO, got insights into the difficulties of the industrial sector in Ethiopia while studying at Addis Ababa Science & Technology University. Upon watching several online videos of CNC machines, he recognized the potential benefits of customizing them to the local context. “Local assembly cuts costs by as much as half,” Eba told Shega. The prospective engineer managed to win financial awards from the university on two occasions for his explorations into CNC machines. Primetech currently operates out of a 1000-square-meter workshop around the Ethiopian Broadcasting Corporation building in the Shegole area. The company imports computer processors and flamethrower nozzles from China and Europe, while most other parts are locally produced. Due to their customizable nature, the company’s products have quickly found a market in construction, furniture, and metalworking workshops.

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The five-star hotel boasts thousands of guest suites, 17 food and beverage outlets, and the largest ballroom in the capital.

Dining experiences range from Ethiopian, Italian, Arabian and Asian cuisines to be enjoyed in luxurious restaurants, laid-back all-day eateries, and tea rooms.

Guests can enjoy a panoramic view of the city while sipping on hand-crafted cocktails and dancing the night away in one of the music bars.

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Safaricom Telecommunications Ethiopia PLC, along with its partners Vodafone Foundation, USAID, Amref Health Africa in Ethiopia, and other governmental and non-governmental stakeholders, met in Bishoftu to deliberate on the Integrated Digital Youth Activity under the Kefeta project. They announced that they have played a key role in digitizing the Kefeta project, which empowers over 2 million young Ethiopians aged between 15 and 29 in health, education, and digital finance. Sisay Zerihun, the Managing Executive for Regional External Affairs, delivered a key note speech in which he highlighted the power of the fast 4G network in advancing the digitization process and their role as a source of international funds through our consortium members; in this case, Vodafone. State Minister of Women and Social Affairs, H.E Muna Ahmed, expressed her gratitude to the partners for their commitment to youth.

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Elite Fintech Solution, a local startup, has found a home in neighboring African countries after facing regulatory roadblocks in its base of operations. The three-year-old firm, founded by Alazar Solomon, is now bidding to transform SME credit facilitation in Kenyan, Mauritian, and Ugandan markets through the combination of AI tools and data analytics. The startup’s flagship product, E-bidir, a centralized platform that provides automated digital credit, presented a novel service outside the regulatory scope of the National Bank of Ethiopia. “The current credit reference directive does not allow for a company like ours to operate,” Alazar told Shega. While the central bank appreciated their innovative service, it could not give them the final green light. The emerging digital credit scene does not have a regulation governing the landscape, and current fintech players like Kifiya and even the likes of telebirr have to partner with banks to provide the service. Alazar recalls having almost no intention of creating just another micro-lending service and ignoring the central platform that makes E-bidir different. Nonetheless, the platform would find suitors elsewhere. The startup had an easy time establishing a subsidiary in Mauritius while the Kenyan market exhibited significant demand for its product offerings. Access to finance remains a challenge for most Sub-Saharan SMEs, with just half managing to access some form of credit.

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Ethiopia is preparing to open its banking sector to foreign competition for the first time in its history, marking a significant shift in the country’s economic landscape. A new law, currently under review by the Ethiopian Parliament, is expected to be approved next month, ushering in this landmark change. This decision is part of the Ethiopian government’s broader macroeconomic reforms aimed at modernizing the financial sector, boosting competition, and attracting much-needed foreign investment. The introduction of foreign banks into Ethiopia’s financial environment is seen as a key driver for improving services and products for consumers while spurring innovation within the sector. The upcoming law is set to dismantle long-standing barriers that have traditionally kept foreign financial institutions out of the Ethiopian market. By enabling foreign banks to collaborate with local institutions, the government intends to tap into international expertise and capital, enhancing financial inclusion and providing access to more diverse financial products for both businesses and individuals.

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Ethiopia's sovereign wealth fund has added eight state-owned enterprises (SOEs) to its portfolio of companies. Under the stewardship of recently appointed CEO, Brook Taye (PhD), Ethiopian Investment Holdings (EIH) has incorporated the eight SOEs formerly managed by the Public Enterprise Holdings & Administration(PEHA) into its portfolio estimated to be worth billions of dollars. The newly added SOEs include Ethio Post, Ethio Engineering Group, Ethiopian Industrial Inputs Development Enterprise, Ethiopian Railway Corporation, Industrial Parks Development Corporation, Development Bank of Ethiopia, and Ethiopian Electric Power Corporation, as well as Ethio Pharma Group's subsidiaries, the National Veterinary Institute and ShieldVax. EIH was established nearly four years ago with 28 SOEs under its portfolio and 100 billion birr capital. Its founding CEO was the current governor of the National Bank of Ethiopia, Mamo Mihretu. Some enterprises were left under PEHA as their accrued debts were poised for absorption by the Liability & Asset Management Corporation (LAMC). The Corporation failed to mobilize adequate resources to settle the debts despite kicking off with nearly 850 million dollars in proceeds from the sale of a telecom permit to the Safaricom consortium of investors. EIH is currently leading extensive reforms in the management of state-owned enterprises (SOEs), including restructuring the board of Ethiopia's largest bank, the Commercial Bank of Ethiopia (CBE), which has historically been heavily influenced by public officials.

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Affordability and lack of awareness drive low consumption of animal products in Ethiopian children, prompting experts to plan interventions. Malnutrition and poor dietary diversity remain significant challenges for children in Ethiopia, despite the country's large livestock population, a study highlights. The study, led by a team of researchers from the Global Academy of Agriculture and Food Systems at the University of Edinburgh, reveals that only a small percentage of children under five regularly consume animal-sourced foods such as milk, eggs, or meat. The study found that dairy products and eggs were the most consumed animal-based foods, but meat and seafood were rarely eaten. This limits the variety and quality of children's diets, increasing the risks of malnutrition and stunted growth. Findings also suggest that affordability and a lack of awareness among caregivers are the main barriers to including meat in young children's diets.

Key barriers

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The recent shift to a market-driven foreign exchange (FX) system in Ethiopia has sparked both opportunities and risks for the banking sector, according to industry experts. While the flow of forex from outside increased following macroeconomic reforms, the anticipated growth in foreign exchange transactions has not materialized as expected. Since July 29, 2024, commodities such as gold and coffee, which were previously traded on the black market, have begun to be processed through banks. However, experts indicate that the development in this area over the past three months has fallen short of expectations. Tewodros Hailu, Director of Awash Bank’s Banking Transformation Directorate, commented on the implications of the government’s reforms on the financial sector. “Foreign exchange has brought risk to banks,” he stated. “We were previously focused on local currency, but now FX exchange has become critically risky.” Tewodros also noted that the introduction of new foreign banks into the Ethiopian market could intensify competition for local banks, particularly given their relatively low capital and assets in dollar terms. He highlighted a significant challenge facing the sector: a lack of trained personnel. “We are working to address this issue,” he added. Despite these challenges, Habtamu Workineh, Director of External Economic Analysis and International Relations at the National Bank of Ethiopia (NBE), reported that banks’ foreign exchange reserves have reached $600 million within just four months. He noted that the NBE has licensed 12 non-bank foreign exchange offices, which have conducted transactions totaling $774,000 as of November 27, 2024. Of this amount, $540,000 was sold through these offices.

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It has been reported that 28 Ethiopian banks lost a total of 1.3 billion birr to fraudsters in the past year. This figure represents an increase of 300 million birr compared to the previous year. Only three banks are said to have been unaffected by the fraud. The National Bank of Ethiopia released its annual financial security report, which highlights the impact of monetary fraud up to June 2024. According to the report, 28 out of 31 banks in the country were defrauded, with fraudulent activities including the use of counterfeit currency, stolen ATM machines, fake checks, fraudulent phone messages, and other related methods. The report also indicates that the amount of money lost this year has risen by 300 million birr compared to the same period last year. However, the identities of the three banks that were not defrauded were not disclosed. The National Bank of Ethiopia noted that banks are increasingly collaborating with small credit and savings institutions to provide loans. The rise in these services, along with a surge in internet fraud, is believed to contribute to the growing financial losses.

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Members of the European business lobby representing nearly 185 investors in Ethiopia said a crunch for local currency has transpired following Ethiopia’s transition into a market-based exchange regime. The investors voiced their concerns directly to central bank governor Mamo Mihertu, during the EuroCham Monthly CEO Networking event last week. While the investors, who are members of the European Chamber in Ethiopia, acknowledged improved foreign currency liquidity following the reforms, they reported a new handicap with Birr shortages. Difficulties sourcing the Birr counterpart needed to open new Letters of Credit was attributed to the tightened monetary policy conditions in the latest review of Ethiopia’s economic reform program by the IMF. The European investors also inquired about the continuation of Franco Valuta imports, businesses impacted by the reforms, and tight monetary conditions following the Governor’s address. Mamo responded by noting that the central bank sequenced the monetary policy reform to protect low-income households, learning from other countries’ experiences. Acknowledging that the reform impacted the central bank’s balance sheet and government debt, the Governor said it was necessary to replace an unsustainable system that constrained development. He mentioned that support is being provided to affected businesses, including the provision of working capital loans. The Governor stated that Franco Valuta is restricted to merchandise traders and wholesalers but allowed—as before—to manufacturing investors.

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French Foreign Minister Jean-Noël Barrot handed over two prehistoric stone axes, called bifaces, and a stone cutter to Ethiopia's Tourism Minister Selamawit Kassa, during a visit to the national museum in Addis Ababa. The tools are "samples of nearly 3,500 artifacts from the excavations that were carried out on the Melka Kunture site", a cluster of prehistoric sites south of the capital that were excavated under the direction of a late French researcher, Barrot said. France and Ethiopia hold a longstanding bilateral agreement on cooperating in the fields of archaeology and paleontology.

A handover, not a restitution

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Beginning January 1, Ethiopians must present a Fayda national digital ID to open a bank account at branches in the capital. A letter signed by Solomon Desta, Vice Governor of the National Bank of Ethiopia, dated November 26, instructs banks to enforce the use of digital IDs as a prerequisite for account opening, with a series of phased deadlines. “The National Bank of Ethiopia has mandated all banks to require a National ID (Fayda) as a mandatory requirement for opening bank accounts, as per [the stated] scheduled,” the letter states. Banks nationwide must comply with Fayda standards by January 2026, while those in major cities face an earlier deadline of July 1, 2025. Existing bank account holders are also impacted, as they will be required to obtain a digital ID by December 2026 to keep their access to the accounts. The letter also permits digital (remote) customer onboarding for opening bank accounts, provided all necessary information required for account creation is collected. The initiative, which aims to establish Digital IDs as the primary form of identification in banks and grant them legal acceptance across all financial institutions, was first announced in July of last year.

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The Council of Ministers has approved a draft law to ban the import and production of single-use plastic materials. The bill, now heading to Parliament for final approval, targets the replacement of plastic bags with a thickness of less than 0.03 mm. Single-use plastics refer to items designed to be used once before disposal. This includes commonly used items like bags, bottles, wrappers, and straws, predominantly used in packaging and service ware. According to Ethiopia’s National Plastic Waste Management Strategy and Roadmap (2024-2034), single-use plastics constituted just 3% of total solid waste in urban areas a decade ago. However, recent data indicates this figure has doubled to 6%. Additionally, Euro-map 2022 data shows Ethiopia's per capita plastic consumption rose from 0.6 kg in 2007 to 2.6 kg in 2021. This increase has made Ethiopia the second-largest importer of plastics in East and Central Africa, spending €17 million annually on plastic packaging imports, with 51% used in packaging and the rest in construction, electronics, and other sectors. Ethiopia’s efforts to regulate single-use plastics date back to the Solid Waste Management Proclamation No. 513/2007, which prohibited the production, import, and use of plastic bags thinner than 0.03 mm unless they met biodegradable standards. However, enforcement has been weak. A compliance study found that 14 of 21 inspected manufacturers were producing substandard plastic bags, and most bags lacked proper labeling.

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In the sega bet—traditional Ethiopian steakhouses where alcohol flows freely—waitresses were sometimes required to wear miniskirts to attract customers. However, the practice is now illegal. On November 11, the Bureau of Culture, Arts, and Tourism of Addis Ababa adopted a decree prohibiting employees of hotels, restaurants, and nightclubs from wearing clothing above their knees. “It has become necessary to adopt and implement international hospitality standards,” stated Haftay Gebre-Egziabher, deputy head of the bureau.

The text also highlighted goals to preserve “Ethiopian culture and values” and to “prevent physical and psychological pressures” on waitresses. Establishments that fail to comply will face fines of 50,000 birr (approximately $410) in the coming weeks. Women’s rights associations that supported the legislation expressed mixed feelings about its content.

Practices bordering on sexual exploitation

“Waitresses are often forced to wear inappropriate clothing that disregards their comfort and safety,” explained Selamawit Kassaye, legal aid coordinator at the Ethiopian Women Lawyers Association. Over the past three years, Betelehem Akalework, co-founder of the feminist platform Setaset Power, received numerous reports of harassment from waitresses compelled to dress provocatively.

“These practices verge on sexual exploitation, as employers use women’s bodies to promote their businesses,” the activist stated, noting she has conducted online campaigns against this issue. Yet, banning such outfits is insufficient if harassment and sexual violence continue to be normalized in Ethiopia’s deeply patriarchal society.

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The National Bank of Ethiopia (NBE), the regulatory authority for the financial industry, has issued a warning to financial institutions and businesses involved in illicit activities related to the foreign exchange market. NBE supervisors have conducted on-site investigations into the foreign currency operations and management of every bank. Recent macroeconomic reforms have enabled the country to increase its foreign exchange reserves over the last quarter of the year, facilitating the repatriation of profits by international corporations and airlines. Significant changes were implemented as part of the macroeconomic reform initiated on July 29. These changes included the establishment of a free foreign exchange market and modifications to how the banking sector manages foreign exchange. Notably, citizens are now allowed to open foreign exchange accounts, and new forex bureaus have been established. NBE Governor Mamo Esmelealem Mihretu reported that the reform has yielded positive and encouraging outcomes in its initial quarter. In an interview with Fana TV, he highlighted several new statistics and developments since the reform’s inception. For the first time in the nation’s history, the balance of payments recorded a surplus. “The balance of payments showed a USD 573 million surplus, compared to a USD 1.2 billion deficit the previous year,” he stated. Mamo noted that the government has launched various initiatives aimed at achieving significant results from the new macroeconomic reform. He pointed out that prior to the reform, the gap between the official exchange rate and the parallel market was nearly double. Currently, since the reform began, the difference between the official and black market rates has been between three and five percent, with the overall exchange rate difference now being less than ten percent. “Since the start of the reform, the exchange rate has fluctuated, but we understand the reasons behind these changes,” the governor explained. He expressed optimism that the gap between the official and parallel markets will narrow and eventually converge.

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An Ethiopian engineer has launched a platform that looks to bring some order into the chaotic cost assessment that precedes most construction projects. Meacha Teshome, debuted addiscostestimator   earlier in the month, which aggregates prices for essential construction inputs to calculate overall costs of projects. The Bahir Dar University alumnus expects the Platform to decrease the hassle of price discovery in developing a Bill of Quantities (BoQ) list for construction projects. BoQs enable a detailed construction budget forecast through a comprehensive listing of inputs and costs before building commences. “Everything up to finishing materials like ceramic and windows is calculated,” Meacha told Shega. The Platform relies on information about the size, location and utility of a project to calculate price references on all the relevant inputs by scraping data from e-commerce sites and daily interviews with suppliers. Users can register through email for access to the Platform which churns out detailed Excel sheets of construction data. Contractors and clients often enter into protracted disputes over project budgets due to a rapid surge in prices for most construction inputs in Ethiopia. Platforms like Mismar have launched their services over the past year looking to connect suppliers and buyers through a straightforward interface.

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Excitement rippled through Ethiopia’s tech community two weeks ago as social media buzzed with news that Google Play Console had opened its doors to local developers, enabling them to publish their apps and games. Before the October update, Ethiopia was not a supported location for creating a Google Play Console account—a platform necessary for managing, publishing, and distributing apps on Google Play. The Minister of Innovation & Technology Belete Molla (Phd) expressed his hopes that the new access will create potential for the nation’s digital economy while he urged local developers to reap the benefits. He also highlighted that this achievement was the result of ongoing efforts to integrate Ethiopia into the global tech ecosystem. “This positive milestone was achieved following discussions I had on behalf Ethiopian Ministry of Innovation and Technology with the Google team in late October, where we formally requested support for Ethiopia during their visit to Addis Ababa,” wrote prominent tech figure Solomon Kassa on his LinkedIn page. Solomon also celebrated the milestone on social media, heralding it as a turning point for Ethiopian developers. Take Endod, for instance—a platform connecting clients in Addis Ababa with laundry services. Despite the growing demand for its services, the Company has struggled to publish its app on Google Play. Endod's co-founder and CEO, Falma Garedow, sought help from friends and family abroad to register the platform using a foreign address.

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Twenty local companies are set to split a grant of $100,000 from GIZ after being selected by Innovative Finance Lab (IFL) following a three-month technical assistance training program. The grant was awarded following a pitch competition for 31 small and medium-sized enterprises (SMEs) and startups who were part of the second cohort of the Technical Assistance Facility (TAF) program run by IFL. Kamrach, a B2B e-commerce marketplace that connects retailers, manufacturers, SMEs, and farmers across Ethiopia, is among the 20- businesses selected through the program. Its founder, Meron Ephrem, says she was equipped with tools and skills that will help her and the business enhance their receptivity to investments. The training entailed pitch deck creation, business development, and actual pitching to investors, which was capped by a $5,000 grant. “We will use the grant to expand operations and strengthen our team,” Meron told Shega. Karmach currently hosts around 2,500 registered users and 17 active vendors, as it looks to grow its user base to the tens of thousands. A host of other businesses ranging from publishing like Ankobot Books & Publishing to gemstone and jewelry businesses like Lolite, organic fertilizer enterprises like Lemlem, and children's fashion brand Wolfaby were part of the 20 enterprises selected for the grant.

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Addis Ababa, 23 November 2024 – The United Nations Development Programme (UNDP) and the Ministry of Industry, in collaboration with the inter-ministerial startup committee, have launched a hub to catalyze innovation and collaboration around manufacturing technology in Africa.

The pan-African timbuktoo ManuTech Hub will be hosted by the Government of Ethiopia in Addis Ababa, commonly referred to as the political capital of Africa.

ManuTech resonates with Ethiopia’s ambition to become a light manufacturing hub in Africa which has been demonstrated through investments made to establish several industrial parks.

The Ministry of Industry has committed to providing space for constructing a timbuktoo hub, which is expected to be finalised by early 2025 to welcome the first cohort selected from across Africa.

The ManuTech Hub call for applications was announced during a public consultation on Ethiopia’s startup proclamation.

The hub will provide an enabling environment for innovation and strengthen the business case for African startups that are using technology to source solutions for the continent's manufacturing sector.

Hub participants are selected bi-annually from across Africa through an open and competitive process.

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The Commercial Bank of Ethiopia (CBE) is in the process of establishing an investment bank, a move aligned with recent regulatory changes aimed at fostering growth in Ethiopia’s financial sector. This initiative is being coordinated with the involvement of Mr. Zemedeneh Ngatu, an experienced investment consultant and managing director of Fairfax Africa Fund.

Regulatory Changes Enable New Opportunities

Investment Banks and Their Role in the Economy

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A new mega-airport is being built in Africa - and it's set to cost at least £5billion and become the continent's biggest travel hub.

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As the Ethiopian Capital Markets Authority (ECMA) polishes the regulatory landscape in anticipation of the country’s maiden stock exchange, it has tapped support from regulators overseeing the biggest financial market in the world. Financial authorities from the United States Securities and Exchange Commission (SEC) were hosted by their local counterparts and the United States Agency for International Development (USAID) at the Skylight Hotel for a training program on Monday morning. Glen Gordon, associate director at the SEC, provided insightful reflections on the balance between regulation and market development from a nearly three-decade career at the Commission. He highlighted the alignment of goals between the private sector and regulators in nurturing a market free of fraud and deceit. “A basic set of good rules,” Glen noted as foundational to the development of functional markets. He illustrated the potential for capital markets to outgrow the traditional banking system in providing access to capital, investment options, and economic prosperity. There were 653 unicorn startups with a combined value of 630 billion dollars that participated in the US capital markets in 2023. This figure starkly contrasts Ethiopia’s funding to startups, which was around 3 million dollars in the same year.

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Ethiopian Airlines' CEO believes the carrier's long-term growth ambitions will take a hit because of the recent seven-week Boeing machinist strike. Production of the 737 MAX and 777 was abruptly stopped during the strike, two aircraft types the African carrier has on order with Boeing. Ethiopian's CEO Mesfin Tasew told AFP that Boeing's latest woes will impact the carrier's long-term growth objectives. Expected deliveries of 737 MAX and 777F aircraft earlier this year have been set back, and Tasew believes the strike will exacerbate delays, saying, While Boeing managed to end the costly seven-week strike, it won't be that easy to simply restart plane production in just a few days. The manufacturer has stated that it would take several weeks before it can fully restore production capacity, leaving Ethiopian facing further delays to deliveries. The airline is also a customer for the Boeing 787 Dreamliner and the upcoming Boeing 777X, placing an order for eight airframes plus twelve options in March, and had hoped to expand its freight capacity with the addition of more 777Fs. Due to the delays, Ethiopian Airlines has been forced to lease MAX aircraft to ensure enough capacity for its near-term schedule, including four airframes due to start arriving this month.

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Companies currently issuing shares to the public have one year to comply with the public offering directive introduced by the Ethiopian Capital Market Authority (ECMA). The announcement came as part of the Authority’s unveiling of new regulatory frameworks during the Capital Market Summit at Skylight Hotel. The ECMA disclosed the Justice Ministry's approval of two directives: one governing initial public offerings (IPOs) and trading of securities, and another addressing the regulation of self-regulatory organizations (SROs). Hana Tehelku, Director General of ECMA, highlighted that any future public share issuances must be registered and approved by the Authority following the directives’ publication on ECMA’s website. The Directive on Public Offer and Trading of Securities outlines comprehensive rules for public securities offerings in Ethiopia, whether they will be traded on an exchange or over-the-counter (OTC). Concurrently, the Directive for Recognition of Self-Regulatory Organizations (SROs) sets forth procedures for establishing, licensing, and supervising SROs in the capital market.

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When Nafkot Gebeyehu and Zion Yaynu first met, neither imagined they’d one day establish an art gallery that would redefine Addis Ababa’s creative scene. But today, Studio 11 has evolved into much more than just a gallery; it’s a vital space for young and emerging artists, a thriving community hub, and a unique experiment in navigating the business of art in Ethiopia. Yaynu, a painter who moved to Addis from Australia five years ago, originally came with the intent to reconnect with her roots and explore beyond the city. “I actually planned to stay only a year,” she explains, “but COVID happened right after I arrived, so those plans shifted.” With her savings dwindling, Yaynu decided to get a job and spend her free time painting while waiting for the world to reopen. Gebeyehu, a photographer who is also part of the OkayAfrica social team, grew up in a creative household with a writer and theater director father, but she didn’t immediately turn to art. “I knew creative stuff could be a career, but I didn't know how feasible it was in our country,” she says. Initially studying engineering, Gebeyehu later switched to journalism and photography. During the pandemic, she took a job, where she met Yaynu. “It was one of those moments of destiny — we clicked instantly,” she recalls. Since opening Studio 11, Gebeyehu and Yaynu have hosted six exhibitions featuring Ethiopian female artists, including By A Thread, a solo exhibition by 24-year-old Tsion Mehari that is currently on display. Mehari’s portraits, painted on wallpaper — a medium she discovered during her family’s home renovation — are a unique highlight of the exhibit. In parts edited for length and clarity, Gebeyehu and Yaynu reflect on their journey with Studio 11 — how they have built it into a welcoming space that is reshaping the artistic scene in Addis Ababa and offering both inspiration and opportunity to a new generation of Ethiopian artists.

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EthSwitch, the national switch operator responsible for financial interoperability, has reported that interoperable peer-to-peer (P2P) transactions have surpassed those of ATMs in value. During its general assembly meeting held at Hilton Addis Hotel on Tuesday, the operator disclosed that interoperable P2P transfers in the 2023/24 fiscal year reached 49.69 million transactions, totaling 270.7 billion birr—a substantial 251% increase from the prior year. These P2P services include account-to-account, account-to-wallet, wallet-to-wallet, and wallet-to-account transfers. Although ATM transactions maintained a higher volume at 94.5 million, their total value reached 123.2 billion birr, trailing behind P2P transfers. Meanwhile, point-of-sale (POS) transactions recorded by EthSwitch stood at 2.1 million, worth 5.7 billion birr, marking a 125% year-over-year increase. Board Chairman Solomon Desta described the year as successful despite economic and legal challenges. The Vice Governor of the National Bank of Ethiopia also highlighted ongoing disputes with tax authorities that have resulted in court proceedings as a notable hurdle.

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For the first time in its history, Ethiopia has introduced vegetable products to the European market, marking a significant milestone in the country’s agricultural export sector. The Ministry of Agriculture announced that a shipment of vegetable products has been successfully exported to Europe, a development that could open new opportunities for Ethiopia in the global agricultural trade. The shipment, carried out by Ethio Veg Fru, a private limited liability company, consisted of sugar snap peas and mangetout peas, two popular vegetable varieties. The vegetables were exported to the Netherlands, a key European hub for agricultural imports. The Ministry further stated that 12 tons of these vegetable products were transported in a container equipped with modern refrigeration technology, ensuring the produce’s freshness during its journey. The shipment first traveled to the Port of Djibouti, before being shipped to the Netherlands, with the entire process taking 23 days. This historic event highlights Ethiopia’s growing efforts to diversify its agricultural exports. Traditionally, coffee, flowers, and other agricultural products have dominated the country’s exports to Europe. European countries currently account for 30 percent of Ethiopia’s total foreign trade, making the continent a critical market for Ethiopian products. Currently, Ethiopia is exporting its vegetables to neighbouring and Middle East countries. In addition to the vegetable export, the Ministry of Trade and Regional Relations reported that Ethiopia generated over $1.5 billion in export revenue in the past three months.

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Ethiopia’s state-controlled power regulation agency, Ethiopia Electric Power (EEP), has recently signed agreements to sell electricity to 25 bitcoin mining companies. These agreements have generated over 55 million United States dollars (USD) in revenue for Ethiopia the past 10 months.

The details

• According to Luxor data, Ethiopia contributes 2.25% of the global Bitcoin hash rate, ranking fourth in mining capacity worldwide, after the United States, Hong Kong, and Asia.
• Ethan Vera, Co-Founder and Chief Operating Officer of Luxor Mining, stated that over 600 megawatts (MW) have been dedicated to bitcoin mining operations in the country by the Ethiopian Electric Power.
• Per reports, several hundred more megawatts are also expected to become available for mining later in 2024.

Dive deeper

• Ethiopia has a power generation capacity of 5,250 MW, with 90% of its electricity sourced from hydropower.
• Despite this, only half of the population has access to electricity, resulting in a surplus.
• The EEP has capitalized on this by selling excess energy to neighboring countries, earning $10.38 million from 169,710 MWh sold to Djibouti and $20.47 million from 314,931 MWh sold to Kenya, per reports.
• It also sells excess energy to bitcoin mining companies who have found a haven in the country for its cheap energy rates.
• These companies benefit from low-cost power sourced from the Grand Ethiopian Renaissance Dam (GERD), where rates are estimated to be 0.03 USD per kilowatt-hour.

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In an exclusive interview, we sit down with the legendary Haile Gebrselassie, the founder of the Great Ethiopian Run and Dagmawit Amare, General Manager of the Great Ethiopian Run to discuss their journey and the profound impact of this iconic event on Ethiopia’s running culture and community. Since its inception in 2001, the Great Ethiopian Run has not only become a celebration of athleticism but also a platform for social change, charity, and national pride. Haile shares the inspiration behind establishing this prestigious race following his Olympic success and reflects on how his vision has evolved over the years. He emphasizes the importance of running as a cultural cornerstone in Ethiopia, highlighting its role in uniting people and fostering future generations of athletes. As we explore the race’s contributions to local communities, Haile discusses the significant funds raised for charitable causes and the challenges faced in organizing such a large-scale event over the past two decades. Furthermore, he touches on initiatives aimed at environmental conservation integrated into the run, underlining the event’s commitment to sustainability. Dagmawit also provides insights into the operational growth of the event and its economic contributions to the country. Together, they paint a picture of how this annual race has transformed not just into a competition but into a vital part of Ethiopia’s identity and a beacon of hope for many. Excerpts; Capital: What inspired you to establish the Great Ethiopian Run, and how has your vision evolved over the years? Haile Gebrselassie: The reason we started the race came after I won the 10,000m race at the 2000 Sydney Olympics. After the Olympics, the organizers of the world’s largest half-marathon called Great North Run asked me to participate in their half-marathon race. I announced that I would participate in the race, but I also said that I wanted to organize this race in Ethiopia. They accepted my request and in 2001 the first Great Ethiopian Run was held in Addis Ababa.

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Landlocked in the Horn of Africa and combining breathtaking natural beauty with jaw-dropping historical sights, Ethiopia is the complete wanderlust package.

1. Lalibela

2. Harar

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The National Bank of Ethiopia (NBE) has mandated that all payment service providers adopt the Standard for Interoperable QR Code Payments, effective December 1, 2024. The requirement seeks to standardize the currently varied payment QR codes, ensuring that all providers issue codes in compliance with the National Bank’s guidelines. Ethiopia officially launched its interoperable QR payment standard in April of this year at the first Ethiopian Digital Payments Conference. Developed by the national switch operator EthSwitch and owned by the NBE, the national QR standard leverages a standardized format, enabling QR codes to function seamlessly with any participating payment app. Within the mobile payment landscape, interoperable QR codes represent a significant advancement. Unlike traditional QR codes, which are often restricted to a single payment application or financial institution, interoperable codes offer a more versatile solution. Merchants will only need to display one QR code to accept payments from any participating bank or financial provider. The push for standardized QR codes comes as part of a broader e ffort to enhance the country’s digital payment ecosystem, which has seen substantial growth, especially after the adoption of the National Digital Payment Strategy (2021-2024).

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Dubai-based digital assets infrastructure company Hodler Investments and Chinese clean energy company GCL Group (Golden Concord Group) have agreed to jointly invest in an off-grid energy infrastructure project in Ethiopia to power data centres that support high-demand applications, including Artificial Intelligence (AI) and blockchain. The project will leverage GCL's natural gas concessions in Ethiopia, allowing the energy group to monetise gas currently stranded due to a lack of export infrastructure, according to Hodler Investments' Managing Director Mohamed El Masri. "We will be formalising the co-investment structure not later than the end of the year," El Masri told Zawya Projects on the sidelines of ADIPEC 2024 event in Abu Dhabi on Wednesday. Ethiopia's affordable renewable energy and supportive regulations have made it a hub for data-intensive technologies such as Bitcoin mining, data mining, and data centres, according to the U.S. International Trade Administration (ITA). An industry source told Zawya Projects that the country is currently home to around 500 megawatts (MW) of active Bitcoin mining operations. In April 2024, GCL signed two Petroleum Production Sharing Agreements (PPSA) with the Ethiopian government to develop gas resources in the Ogaden Basin. GCL's blocks are estimated to hold 2P reserves of nearly 200 billion cubic metres (BCM) of natural gas and 46 million tonnes of oil. The distributed energy infrastructure project will utilise Hodler's digital energy platform, PermianChain, which seeks to optimise wasted energy resources by connecting computing end users, data centre operators, energy suppliers (like GCL) and investors.

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Addis Ababa, Ethiopia — Dereja, in partnership with the Ministry of Labor and Skills (MOLS) and the Mastercard Foundation, will host the 5th National Career Expo on November 6 - 7, 2024, at Millennium Hall, Addis Ababa. The event will connect over 30,000 skilled professionals to the job market.

Since 2019, Dereja, a social enterprise unit of the leading online recruitment platform of the Africa Jobs Network, has been working with the Ministry of Education, Ministry of Labor and Skills, higher education institutions, the Mastercard Foundation, and relevant non-government organizations with over 600 university instructors, has trained more than 100,000 graduates in employability skills, and helped more than 90,000 graduates access employment opportunities.

Over the past few months, Dereja has conducted several job fairs in various regions across Ethiopia. This series will conclude with the 5th National Career Expo. The Expo will draw over 300 companies and offer over 30,000 job openings across various sectors, including 20,000 jobs in construction and engineering, 5,000 in healthcare, and additional roles in other fields. The event serves as a centralized hub for young job seekers and employers, streamlining the job search process and reducing costs for candidates. Employers will also benefit from access to a diverse pool of skilled young individuals in one location, significantly shortening the time required to find the right candidate and lowering recruitment expenses.

"What makes this year's job fair different from the ones we have held before is not only that it brings a greater number of job opportunities, but also makes it a part of the solution to the unemployment problem in our country by fostering relationships between employers and job seekers," said Mr. Yusuf Reja, Founder and CEO, Infomind Solutions.

More than 300 hiring companies will participate in the expo, including Ovid Construction, Hybrid Designs Plc, East African Pharmaceuticals Plc, Rohobot Home-Based Health Care Service Plc, and Ethio Post.

"We believe that investing in young talent is essential for the growth and success of our company. The National Career Expo provides us an excellent opportunity to connect with talented individuals and offer them exciting career opportunities. We are committed to providing our employees with comprehensive training and development programs to help them reach their full potential," stated Mr. Abdulrahman Anaam, General Manager for East African Pharmaceuticals PLC.

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A partnership that looks to accelerate the development of digital education in Ethiopia was signed last week between a local edtech company Learning Loop and the Ministry of Innovation & Technology (MInT). After over a year of creating educational content on YouTube and gaining over 160K subscribers, Learning Loop has recently expanded with a new, adaptable platform. Their app, GlobeDock Academy, offers an interactive space where teachers, parents, and students collaborate, attracting 50,000 users since August. The platform supports students with lecture videos, notes, ongoing quizzes, and a performance-tracking dashboard. Blen Binyam, Commercial Manager at Loop Learning, hopes to see the company contribute to improving education standards across the country. She recalled how the YouTube videos gained quick traction despite being limited to tools on the video-sharing platform. “Education has been neglected in technological growth,” Blen told Shega. The manager points to the importance of having an intuitive interface that allows seamless tracking of a student’s strengths and weaknesses to help provide constructive feedback. Users can access the platform by downloading it from the Google Play Store or the App Store. While it provides free tutorials, the complete packet of services becomes available through monthly subscriptions priced at 200 birr.

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A comprehensive Science, Innovation & Technology (STI) policy document spanning 13 years of implementation throughout Ethiopia has reached its final rounds of consultation. The draft document containing sixteen chapters was presented for feedback from industry stakeholders over the past week at the Hilton Addis Hotel. Backed by support from the International Trade Center’s Netherlands Trust Fund V (NTF V), the policy document looks to accelerate the realization of Sustainable Development Goals by leveraging STI. Following a year of rigorous development under the guidance of international and local experts, it outlines eight strategic directions that include human resource development, building a research infrastructure, establishing standards for quality, and strong intellectual property frameworks. Despite state-led progress in digitization of several government services, Ethiopia’s aggregate rank has fallen by five positions to 130th in the 2024 Global Innovation Index. The low-income country is also ranked last among 133 countries in terms of human capital and research, as well as market sophistication. Understandably, human resource development is the first goal of the draft policy document. Belete Mola (PhD), Minister of Innovation & Technology (MiNT), stressed the importance of leveraging STI to bring about thorough improvement in the livelihood of Ethiopians during the validation workshop. He pinned the success of the country’s economic plans on close alignment between the government’s economic agenda and the accelerated expansion of STI.

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As fuel price rose in Ethiopia, Awgachew Seleshi decided to buy an electric car. That aligned with the government’s new efforts to phase out petrol-powered vehicles. But months later, he’s questioning whether it was the right decision. He faces a range of issues, from the erratic supply of electricity in Addis Ababa, the capital, to the scarcity of spare parts. “Charging my car has been a challenge," the civil servant said. “Spare parts that are imported from China are expensive, few mechanics are able to fix such cars and the resale value of such cars is poor.” Seleshi's troubles point to wider challenges for Ethiopia. In January, the East African country became the first in the world to ban the importation of non-electric private vehicles. The decision eased pressure on authorities who spend scarce foreign currency to subsidize the cost of fuel, but it also reflected growing enthusiasm for electric vehicles as the world demands more green technologies to reduce climate-changing emissions.

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Directors from several African statistical agencies have called for targeted funding in data and statistics to fuel innovation and economic growth on the continent. As the 11^th Forum on African Statistical Development (FASdev) kicked off at the United Nations’s Economic Commission for Africa (UNECA) last week, financing remained atop several directors’ concerns. With limited fiscal space and just 0.22% of all Official Development Assistance (ODA) in 2022 flowing towards data and statistics, lack of technical and financial resources have remained hindrances for evidence-based policymaking in the continent. Oliver Chinagaya, Director of the African Center for Statistics (ACS) at UNECA, underscored the need to expedite the provision of robust data and statistics to help governments accelerate sustainable development goals and Agenda 2063. He called for strengthening the mobilization of technical and financial resources to support innovation in statistical development—the theme of this year’s forum. “Governments should be moving towards fully digitizing their statistical systems," Oliver noted. The director indicated the availability of the integrated strategic toolkit as an instrument that can help spur innovation in statistical offices for further development. The use of big data, new data analytics tools, synergy between countries, and innovations were cited as pivotal in growing Africa’s statistical capacities.

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The National Bank of Ethiopia (NBE) has launched an electronic money market trading platform to allow for interbank lending, the apex bank said on Thursday.

• The system will be administered by the Ethiopian Securities Exchange (ESX).
• It will facilitate short term lending and borrowing among banks to improve liquidity.
• Rates will be limited to the NBE’s +/-3% corridor of the National Bank Rate (NBR).

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Ethiopia’s national digital identity could soon be used as the travel document by people boarding domestic flights, following a Memorandum of Understanding signed by Ethiopian Airlines and the NIDP and reported by the ENA. The MoU commits the partners to working collaboratively on integrating the Fayda digital ID with airport systems. Ethiopian Airlines is also working towards the introduction of biometric passenger processing for various steps along the travel journey, from booking to boarding. The move is intended to improve passenger experiences while increasing operational efficiency. The government has been rapidly implementing Fayda across various sectors for similar reasons as part of a broader digital government strategy. Recent examples include an integration agreement with the country’s procurement authority. Abiyot Bayou senior advisor to Ethiopia’s Minister of Innovation and Technology, explained the current digital government strategy as the third step in its transformation. The earlier stages involved applications developed independently by different institutions. Bayou refers to the newer, integrated system as “GO.” “When the GO stake is in place, we will have the integration of payment system, ID card, the registration and other data exchange systems at the center,” he said.

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In a momentous cultural victory, Ethiopia has successfully repatriated the Shield of Magdala, an artifact of deep historical significance looted by British forces during the 1868 Expedition to Abyssinia. Taken after the Battle of Magdala, which saw the capture of Emperor Tewodros II’s mountain fortress and the plundering of countless treasures, the shield will soon return to its rightful home. Originally scheduled for auction this past February by UK auction house Anderson and Garland, the shield’s return comes after concerted efforts by the Ethiopian government and the Royal Ethiopian Trust (RET). RET, a nonprofit established by Prince Ermias Sahle-Selassie Haile-Selassie, grandson of Emperor Haile Selassie I, negotiated with the auction house to cancel the sale and arrange the shield’s repatriation. Prince Ermias emphasized the shield’s importance, stating, “This shield is not just a historical artifact; it is a symbol of Ethiopia’s history and resilience. Our success in regaining this treasure reflects our dedication to preserving our heritage and honoring our ancestors who fought for our nation’s sovereignty.” The Royal Ethiopian Trust collaborated with British scholar Alula Pankhurst, an expert in Ethiopian history and grandson of the renowned English activist Sylvia Pankhurst, who notably supported Ethiopia following Italy’s 1936 invasion. Alula Pankhurst commented on his involvement, saying, “It has been an honor to work with Prince Ermias and the Royal Ethiopian Trust to return this significant piece of history to its people. Our families have long been dedicated to safeguarding Ethiopia’s heritage, and ensuring that this shield returns to the Ethiopian people is a proud continuation of that legacy.”

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A new platform looks to put a fresh spin on the local e-commerce landscape with a customer-centric hub tailored to meet niche buyer demands. Yoseph Tenaw, a software engineer and an Addis Ababa Science and Technolgy University alumnus, launched Buyer First to address longstanding challenges seen in the market. Frustrated by the difficulty of finding unique or specialized products online, Yoseph set out to build a solution that empowers both buyers and sellers. Inspired by the format of Stack Overflow, a popular question-answer site for programming-related topics, Buyer First flips the traditional e-commerce model on its head. Instead of sellers listing products, buyers post their specific needs or desires. Sellers who can fulfill these requests then compete to offer the best solutions. “This approach not only saves buyers time and energy but also ensures they receive competitive prices,” Yoseph told Shega. To use the platform, users must create an account. Once registered, buyers can post what they’re looking for, while sellers receive SMS alerts for matching requests. Sellers then bid to fulfill these requests, and upon acceptance of an offer, contact information is exchanged to finalize the transaction. This reverse marketplace model enhances buyer control and provides sellers with better sales opportunities, according to Yoseph. “This demand-driven approach and alert system makes Buyer First stand out,” he stressed.

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AI-powered digital avatars are to be trialled for people in India and Ethiopia who hear voices in their heads, as researchers try to adapt mental health treatment so they can be used effectively in low-resource settings. Mental health disorders affect almost a billion people worldwide, with the vast majority of them living in poor countries, according to the Global Alliance for Chronic Diseases, a funding organisation. Yet most of them have little or no access to mental health facilities — the average number of mental health workers is 40 times higher in the European region than in the African region, according to the 2020 World Health Organization Mental Health Atlas. The results of a clinical trial announced today (Monday) called Avatar 2 showed that talking avatars with the help of a therapist in a controlled setting can reduce distress for patients who hear voices in their heads — known as auditory hallucinations — according to the healthcare research foundation Wellcome, which funded the trial. Yet avatar therapy requires a therapist to use voice changing software — posing a barrier to its use in countries with few therapists. “This intervention has been developed in the United Kingdom,” Tom Ward, from King’s College London, who led the trial, told SciDev.Net during a call with reporters. “It’s not a case that we could just go and transplant it to another culture and expect it to work the same — we need to do a very rigorous process of adaptation.”

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Alibaba’s Global Initiatives project has partnered with Ethiopian startup incubator weVenture, and the Digital Transformation Ethiopia Association (DTEA) for the local launch of the Global Digital Talent (GDT) program. The partnership aims looks to train at least 1,000 entrepreneurs in its first round. GDT, one of the capacity buildings initiated by Alibaba Group in 2016, looks to expand “Ease in Doing Business” worldwide. The program taps into the company’s multinational resources to introduce a digital paradigm for entrepreneurs worldwide. GDT has been collaborating with universities and training institutions worldwide to promote digital transformation. The platform enables universities, training institutions, and students around the world to access insights, skills, and opportunities within the current and future digital era such as e-commerce. The Chinese e-commerce giant has been increasingly making its presence felt in Ethiopia’s economy following the commercial launch of its AliExpress service two months ago. Chandee Zhuang, senior advisor at eWTP, expressed excitement over the unfolding digital economy in Ethiopia, with the training program serving as a foundation for further projects. He recalled that 4,000 trainees have been a part of the program worldwide, with trainers getting a chance to visit Alibaba’s operations in China.

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Executives at Ethiopia’s state-owned Ethiopian  Shipping and Logistics Services Enterprise (ESLSE) are advancing plans to add six bulk cargo ships to their fleet as the enterprise aims to bolster its capacity and support the nation’s growing import-export needs. According to The Reporter Wondimu Daba, ESLSE’s Deputy CEO for Corporate Services, confirmed that the ESLSE board is evaluating multiple acquisition options, including time charters, voyage charters, or outright purchases of the vessels. “We are fully prepared to bring in these six ships. The board is now assessing whether a time charter, a voyage charter, or a direct purchase would be most strategic,” Wondimu said, adding that the acquisition will proceed through a standard bidding process in line with government procurement protocols. As Ethiopia’s sole multimodal logistics operator, ESLSE manages a considerable share of the country’s trade logistics. According to its 2023/24 performance report, ESLSE handled approximately 45 percent of Ethiopia’s 8.25 million tons of dry cargo imported through Djibouti’s ports, the primary maritime gateway for Ethiopian goods. The report also highlights ESLSE’s role in supporting Ethiopia’s export market, overseeing the  shipment of over 13 million tons of goods by sea last year.

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A multilateral memorandum of understanding (MOU) was signed among three Ethiopian ministries, Vecna Technologies, and Orbit Health, envisioning a project with an initial estimated investment of $2.5 million. This partnership aims to produce 10,000 digital medical devices called BrightBox for local and export markets, potentially contributing $7 to $8 million to the economy, according to projections obtained from Orbit Health. The initial investment includes a direct labor cost of $500,000. Bright Box represents the latest evolution of Vecna Cares' CliniPAK—a streamlined electronic medical record, data capture, and reporting system. It enables users to register patients, capture key clinical and demographic data at the point of care, and manage patient flow. The mHealth reporting system encompasses both hardware and software components, facilitating centralized offline data collection. Officially sealed on Monday, October 14, 2024, the signatory ministries include the Ministry of Labor & Skills, Ministry of Health, and Ministry of Innovation & Technology. The MOU outlines a collaborative framework for developing and deploying the hardware specifically designed for a market like Ethiopia, with a focus on digitizing rural healthcare services. “The partnership reflects our dedication to advancing health innovation and improving access and affordability in digital healthcare,” said Mekdes Daba (MD), Minister of Health, at the signing event.

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Ethiopia’s green mobility aspirations were boosted by a landmark partnership between Addis Ababa-based electric vehicle (EV) startup Dodai and the Ethiopian Investment Holdings (EIH) over the past week. The agreement will see Dodai receive support from the government's investment arm to deploy 100 battery swap stations in the capital over the next year, with plans to expand to 300 stations over three years. “Battery swapping is specifically designed for urban environments, making it an ideal solution for e-mobility in Ethiopia’s major cities,” says Yuma Sasaki, Dodai CEO & founder. While no exact figures have been disclosed, investments between 30 and 40 million dollars are estimated over three years. “The total cost of building the network will depend on the scale and quality of the battery swap network and operations,” Yuma told Shega. “And Dodai will make a significant investment to establish the infrastructure.” According to the agreement, EIH will facilitate access to infrastructure and help navigate the regulatory framework. The sovereign wealth fund will also play a major role in securing access to land for the battery swap stations. Through one of EIH’s portfolio of enterprises, the Ethiopian Electric Utility (EEU), a reliable and continuous supply of electricity is also ensured across the stations.  

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Ethiopia’s digital economy could add over ETB 1.3 trillion to GDP by 2028, according to the GSMA’s new report, Driving Digital Transformation of the Economy in Ethiopia. The report highlights how telecom reforms and investments in mobile technology are catalyzing growth in key sectors such as agriculture, manufacturing, and public services. These advancements are expected to create over 1 million new jobs and generate an additional ETB 57 billion in tax revenues by 2028. Pioneering Ethiopia’s Path to Digital Growth "Ethiopia is well- positioned to be a digital leader in East Africa. By implementing strategic reforms and improving access to digital tools and services, Ethiopia can unlock unprecedented opportunities for economic and social development. This will benefit not only the economy but also the millions of Ethiopians who stand to gain from greater digital inclusion,” Angela Wamola, Head of Sub-Saharan Africa at GSMA. Ethiopia’s telecom reforms under the Home-Grown Economic Reform (HGER) program have driven major progress. By 2023, the sector contributed ETB 700 billion to GDP and generated 57 billion Birr in tax revenues. Mobile internet connections grew by 65%, with 4G coverage expanding eightfold. Key players, Ethio Telecom and Safaricom Ethiopia, have been instrumental in driving this growth through expanded mobile internet access and increased competition in the telecom market.

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BRICS+ controls 42% of global central bank FX reserves, likely contributing to the global de-dollarisation process. Gold is the biggest potential alternative to the US dollar for the bloc. Despite active buying by BRICS+, gold is still only 10% of their central bank reserves, half of the global average. Prospects for global diversification towards BRICS+ currencies, even a synthetic one, are limited by the very modest external liabilities of the member countries. Therefore, the de-dollarisation of global FX reserves will largely stand to benefit the developed market rather than the emerging market FX sphere.

In other areas, BRICS+ is increasing its foothold in regional trade, becoming increasingly focused on the trade between member countries, and gaining importance as a trade partner for other emerging markets, especially in the fuel trade. BRICS+ accounts for 37% of the EM fuel trade, a key area of interest for de-dollarisation.

Meanwhile, the power of the bloc is limited by its only 30% share of global oil production, (matching the combined share of USA, Canada, and Mexico, and the trade in the Americas is highly dollarised), and a more modest and stable 20% share of BRICS+ in the overall global trade vs. the DM’s much bigger 60% share.

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The Grand Ethiopian Renaissance Dam (GERD), positioned on the Blue Nile, is set to become the largest hydroelectric plant in Africa and one of the top ten worldwide. GERD could make Ethiopia a major energy exporter in the region with an expected output of 6,450 megawatts, or three times the capacity of the Hoover Dam (2,080 megawatts). This monumental project, costing approximately $5 billion, will not only boost Ethiopia’s economic growth through energy exports but also help meet local energy demands and give the country a political advantage over downstream countries. However, the project has been a source of significant regional tension due to concerns about water security and economic impacts on Egypt and Sudan. From its exceptional technical design to the geopolitical tensions around the project, here is everything you need to know about the Grand Ethiopian Renaissance Dam.

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An uncanny marketing scheme for smartphones has been buzzing through Addis Ababa over the past few weeks, offering devices on a credit basis. Phone vendors across the capital have plastered their shops and online profiles with advertisements of the scheme, which facilitates the purchase of iPhones, Infinix, and Tecno mobiles with a 40% downpayment. Backed up by a foreign business group, the credit scheme offers prospective customers loans worth up to 60% of the phone's value, repayable over three months at a 35% interest rate with weekly installments. One of the 15 local agents working with the group, says no additional collateral besides the phone will be required to access the credit facility. He indicates that the phones can be blocked remotely if the debtor fails to make payments on time. “You can purchase the phone you want from the shops we work with," he told Shega. The Agent points out that buyers can access a phone as soon as they fill out a form, pay the down payment, and provide a copy of their identification card. "You can pay as little as 40,000 birr for a 100,000 birr phone, and we can cover the rest. He stresses, “You can pay us back later." According to the loan agreement obtained by Shega, the group refers to this contract as a 'User Lease & Service Agreement.' Under its terms, buyers enter into a lease arrangement with the company for the phone, with weekly payments labeled as 'rent expenses.' The agreement states, “Party A [the company] retains ownership of the leased equipment during the lease term. If Party B [the buyer] fails to meet their obligations, does not pay the rent on time, or cannot be reached, Party A reserves the right to lock the mobile phone (with the unlocking fee to be borne by Party B).”

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Hijra Bank, one of four fully Sharia-compliant banks in Ethiopia, launched an interest-free digital lending platform over the weekend. While the mobile money service, branded as HalalPay, was officially unveiled at a ceremony held at the Hyatt Regency Hotel last Saturday, it has already onboarded 120,000 users and over 700 agents. Developed by Tech Horizons over three months, the app currently offers loans of up to 150,000 birr with future limits set to be modified according to users' credit scores. Hassan Mohammed, vice president at Hijra Bank, states that users must first submit the necessary documents before pairing up with an account holder that serves as collateral to access the credit service. “Instant transfers are immediately made after the account holder confirms,” he told Shega. Besides Islamic financing options, HalalPay also includes cash in-cash out, money transfers, airtime purchases, as well as payments for goods and services. The platform is also integrated with Hijra’s core banking services like Murabha. Dawit Keno, President of the two-year-old bank, highlighted the comprehensive set of tools available in the app offer financing options to a traditionally excluded population segment. He recalled experiencing constant demand from local communities for an interest-free alternative in the digital lending space.

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In recent years, China has worked hard to position itself as a leader for developing nations, particularly through organisations such as the UN and Brics. But now a dam in Ethiopia is threatening to rock the boat, destabilising Beijing’s delicate geopolitical balancing act.

Hotto Restaurant has officially announced a partnership with the British Butler Institute, a renowned leader in Butler and hospitality training, aimed at enhancing the skills and professionalism within Ethiopia’s hospitality industry. This collaboration seeks to address the shortage of skilled manpower in the sector, which has been a significant barrier to growth. During the announcement, Daniel Birhanu, Executive Chef and Partner at Hotto Restaurant, expressed enthusiasm for the partnership, stating, “Today we are here to launch an exciting collaboration with one of the best institutes in the UK.” He emphasized that after 26 years in the industry, he recognized a gap in skills upon returning to Ethiopia to establish a high-standard restaurant. Since opening 18 months ago, Hotto Restaurant has served over 60,000 guests and created employment for 94 individuals. The restaurant is committed to working with both local and international institutions to tackle challenges faced by the hospitality sector through comprehensive human resource training. Sean Williams, lead trainer at the British Butler Institute, highlighted the significance of this collaboration, noting that it marks a pioneering effort in Africa. “We are privileged to partner with Hotto Restaurant as our first enterprise in the continent,” he said. Williams believes that this partnership will benefit not only Ethiopia but also neighboring countries like Kenya and Rwanda. Chef Daniel urged other hotels and restaurants in Addis Ababa to invest in their staff, particularly with many new hotels under construction. “Opening a hotel is good, but providing an exceptional experience is essential,” he stressed.

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Ethiopia’s maiden securities exchange has signed a Memorandum of Understanding (MoU) with its Kenyan counterpart and the i-Capital Africa Institute that will potentially allow cross-listing of companies on both exchanges. The partnership places special focus on promoting cross-border investments, knowledge exchange, and capacity building as part of enhancing financial markets across the broader East African region. By leveraging the experiences of the Nairobi Securities Exchange (NSE), the third oldest in Africa, the management of Ethiopia’s Securities Exchange (ESX) looks to accelerate the growth of the pre-nascent exchange poised to launch soon. Wongel Tamene, Senior Manager of Communications and Partnerships at ESX, expects the collaboration to provide key insights towards the creation of an inclusive and vibrant financial market capable of addressing investors’ needs. She pointed out the benefits of peering into methods employed by the NSE to create awareness of financial markets and inspire engagement from potential stakeholders. “It is a crucial partnership,” Wengel told Shega. She also highlighted the importance of understanding NSE’s experience over the past seven decades as an informative reference and a fundamental pillar to forming a strong regulatory foundation for potential cross-listings. In line with these aspirations, the agreement outlines several initiatives, like joint training programs for market participants, a strong regulatory framework, and explorations into innovative financial products.

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SantimPay, a financial solutions provider, launched a fundraising platform, SantimFundMe, at the Hilton Addis Hotel on Thursday. Designed as a local alternative in the community-based finance mobilization space, the platform aims to compete with international players. SantimFundMe enables individuals, organizations, and causes to raise funds for a range of needs, including personal, educational, and medical expenses. Several stakeholders from local charities attended the launch, expressing interest in utilizing the platform. Integrated with telebirr, M-Pesa, and nearly 10 banks, as well as supporting Mastercard and Visa, the platform charges a 1% service fee. According to Tensaye Desalegn, CEO & Co-founder of SantimPay, donations from abroad will be paid out based on the daily foreign exchange rate. The fundraising platform also offers real-time tracking of campaign progress and supports anonymous donations. Built in-house, each charity host receives a personal dashboard, and the platform currently operates in three languages. During the event, Board Chairman Daniel Kitaw (Prof.) emphasized the collaborative efforts of both the younger and older generations in driving SantimPay’s operations forward.

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British International Investment (BII), the UK government’s development finance institution, has flagged that its investment in Safaricom Telecommunications Ethiopia (STE) is already having an impact in the newly liberalised market, as economic headwinds continue to challenge the operator. A new report, written by Analysys Mason on behalf of BII, finds that mobile services are less expensive and available to more people since STE launched its network in October 2022, after winning a mobile licence in May 2021 that sparked telecoms competition in the country for the first time (Vodafonewatch, #193, #200, and passim). State-owned incumbent Ethio Telecom has reduced the price of mobile data packages by approximately 70% since 2017, while STE dropped prices by between 50% and 70% across its offerings in its first year of service, according to the report. Before the Ethiopian government opened the market to competition, the country had the highest mobile data prices compared to the report’s six “benchmark” nations: Egypt, Kenya, Nigeria, Sudan, Tanzania, and Uganda. Today, data pricing is “in line” with these markets. As for network availability, the report finds that 4G coverage has doubled in Ethiopia since STE entered the market, but it remains the lowest of the benchmarked countries. As of the end of March, STE’s network had 2,806 sites covering 38% of the population, of which 1,466 sites were built by the operator and 1,340 are collocated through network sharing arrangements and leased from Ethio Telecom. The operator has said it is on track to meet its licence obligation of 55% population coverage by June 2024, but has not updated since that deadline passed.

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Ethiopia is seeking to raise 30 billion birr ($255 million) selling shares in a state-run wireless company, making it the nation’s first initial public offering, and paving the way to start a stock exchange.

Ethiopia Investment Holdings, which controls 27 state-run companies, will sell 100 million shares in Ethio Telecom, Brook Taye, chief executive officer of the company, said at a briefing in Addis Ababa on Wednesday. The nation’s biggest mobile-phone service provider has 78.3 million customers, according to its website.

Prime Minister Abiy Ahmed’s administration earlier this year ended half a century of control of its currency and is easing rules of doing business to lure investment into East Africa’s biggest economy and help rebuild the war-ravaged country. The debut IPO will help start the nation’s stock exchange, with the government pledging to sell shares in six companies in the next five years.

The government and dissident Tigrayan fighters signed a pact in 2022 to end a two-year conflict that had dissuaded investors.

Ethiopia in December became Africa’s latest sovereign defaulter, joining Zambia and Ghana. All three have been trying to restructure billions of dollars in external debt using the Group of 20’s Common Framework mechanism.

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Earlier in the year and more specifically on July 28^th July 2024, Ethiopia made a historic move. It introduced a new macroeconomic reform process, moving away from a crawling peg exchange rate regime for the Ethiopian Birr against the US Dollar to a market-based foreign currency system. Since then, the Ethiopian Birr has taken on a downward spiralling fall to register most recently 140 Birr to the US Dollar in the illegal market compared to the official 116.7 Birr as of October 12, 2024, in comparison to 57 Birr on the date the new system was introduced. This widening gap is not comfortable for the economy and presents a serious challenge to both the business community of the country and the consumers. Obviously, the formal financial system has been or is unable to meet the demands of the market and more especially for foreign currency, where now most businesses and people rely on the black market as a source of hard currencies, for their needs, mostly the US Dollar. (Read Addis Insight – Ethiopia’s Black-Market Hits 140 Birr to the Dollar: A Growing Crisis in Foreign Exchange on October 12^th, 2024). This has impacted the economy in more ways than one. The inflation in the economy has risen and is reported to be above 30% resulting, in the main, from increasing costs of goods and services. Importing businesses pass on the cost to consumers, which cause prices to consumers and hence inflation to rise. This has also caused businesses dependent on imported goods to scale back and reduce their imports for lack of availability of hard currency or pass on the increased costs to the consumers as noted earlier. This has led to a distrust in the formal banking system which is unable to cater for the needs of both the business community and ordinary people. Most seek to meet their needs from the informal and illegal market, which only further undermines the effectiveness of the formal and official exchange rate. Another side effect of the issue is the growing inequality between those who are able to access foreign currencies and those who have no access, whereas the former take advantage of the opportunities that have presented themselves and the others suffer from the increased costs and hence higher prices of goods and services.

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Every once in a great while paleontological fieldwork turns up a fossil so extraordinary that it revolutionizes our understanding of the origin and evolution of an entire branch of the tree of life. Fifty years ago one of us (Johanson) made just such a discovery on an expedition to the Afar region of Ethiopia. On November 24, 1974, Johanson was out prospecting for fossils of human ancestors with his graduate student Tom Gray, eyes trained on the ground, when he spotted a piece of elbow with humanlike anatomy. Glancing upslope, he saw additional fragments of bone glinting in the noonday sun. In the weeks, months and years that followed, as the expedition team worked to recover and analyze all the ancient bones eroding out of that hillside, it became clear that Johanson had found a remarkable partial skeleton of a human ancestor who had lived some 3.2 million years ago. She was assigned to a new species, Australopithecus afarensis, and given the reference number A.L.288-1, which stands for “Afar locality 288,” the spot where she, the first hominin fossil, was found. But to most people, she is known simply by her nickname, Lucy. With the discovery of Lucy, scientists were forced to reconsider key details of the human story, from when and where humanity got its start to how the various extinct members of the human family were related to one another—and to us. Her combination of apelike and humanlike traits suggested her species occupied a key place in the family tree: ancestral to all later human species, including members of our genus, Homo.

It can be precarious to hang such a pivotal argument on a single fossil individual. But in the half a century since Lucy’s unveiling, many more specimens of Au. afarensis have been found. Together they provide an exceptionally detailed record of this ancient species, revealing where it roamed, how it lived, how its members differed from one another and how long it endured before going extinct.

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Commercial banks are narrowing their posted FX trading spread by nearly a fifth in tandem with new guidelines by the central bank. The state-owned Commercial Bank of Ethiopia (CBE) began the trend as its posted selling rate for the US Dollar dropped from 123.653 Birr on Monday to 115.394 the following morning. Several other banks followed during the day, with Awash Bank bringing down its posted selling rate from 125 to 115 birr, the Cooperative Bank of Oromia (COOP) from 126.5 to 115, and the Bank of Abyssinia by a roughly similar amount. Most of the bank’s posted buying rate has averaged at a little over 113 birr. The development aligns with the National Bank of Ethiopia’s (NBE) statement on Tuesday morning, which requires a separate treatment for FX-related service fees and commissions. The bank’s latest move looks to extricate fees and commissions charged on FX transactions from the trading spread, thereby reducing them on posted rates. NBE is expecting a competitive setting of charges on FX transactions while refraining from outright dictation of the amount in its statement. A decision by the central bank in August that required the inclusion of fees and commissions into the spread of the banks appears to have contributed to the bloated posted rate margins. Following the transition towards a market-based foreign exchange regime in the final days of July, the ballooning spread at most banks, had become a source of concern for many industry onlookers. Senior bankers like Worku Lemma fear that the banking industry’s profit motivation could thwart efficient allocation of the country’s precious FX reserves. He would much rather have some form of limit on service fees and commissions rather than a mere recommendation.

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Ethiopia’s coffee exporters heave a sigh of relief as the pending implementation of the European Union’s Deforestation Regulation (EUDR) gets tabled for a year-long extension. The EU Commission proposed the extension last week after considerable pressure from international trading partners, lawmakers, and business groups. If the proposal gets approval from the EU parliament next month, it would see the December 30 deadline get pushed by a year. While seven commodities (cattle, cocoa, coffee, palm oil, rubber, soy, and wood) fall under the EUDR’s purview, coffee represents a uniquely valuable economic bridge between Ethiopia and the EU. The 27-member strong union accounted for 34.5% of all merchandise exports from Ethiopia in the second quarter of 2023/204, with coffee contributing nearly a third of the total outflow. UK-based think tank ODI recently modeled the potential fallout from EUDR on Ethiopia. In the most extreme scenario, where exports to the EU cease completely, Ethiopia could face an 18.4% drop in overall exports, a 5.8% fall in imports, a 0.6% decrease in GDP, and a 3.3% reduction in public revenue. The EUDR introduces stringent due diligence requirements to ensure that the agricultural commodities imported into the Union are free of links from deforestation, forest degradation, human rights violations, and even indigenous community rights post-December 2024. Compliance with these standards entails investments in geo-referenced production, which gets tricky for countries like Ethiopia that aggregate coffee produced from around 5 million smallholder farmers. Nearly 85% of Ethiopia’s coffee is planted on less than half a hectare.

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Ethiopia is set to introduce a mandatory licensing system for real estate valuers as part of its new Real Estate Development and Immovable Property Transaction and Valuation Bill. The primary goal of this new regulation is to establish a more transparent, reliable, and professional property valuation process in the country. By ensuring that only certified professionals can conduct property valuations, the government aims to improve trust in real estate transactions and safeguard the interests of buyers, sellers, and investors.

Mandatory Licensing for Real Estate Valuers

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Ethio Telecom will be the first company to list on the Ethiopian Securities Exchange (ESX), the country’s new bourse kicks off next week.

• The government will sell a 10% stake in the state-owned telecoms company to the public, further diluting its stake.
• The revelation was made by Brook Taye, CEO of the state investment arm Ethiopia Investment Holdings, to Reuters.
• According to Taye, the listing will also be an experiment to determine the company’s valuation.

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Ethiopia has rapidly expanded its electricity allocation to Bitcoin mining, making it one of the world’s fastest-growing markets for this activity. The country plans to further increase its capacity this year. Many of the miners are using mid-generation machines due to their low power consumption.

Ethiopia to Expand Bitcoin Mining Power Allocation

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A training, mentorship and networking program for female startup founders capped off by financial assistance was started two days ago at the ICT park. Spearheaded by the Entrepreneurship Development Institute (EDI), the Bruh Women Startup Founders Program attracted 157 applicants in three weeks with 74 women qualifying for the 10-day boot camp. Ten women founders who successfully complete the program get a share of the 1 million birr financial prize to springboard their businesses. Powered by support from the Ministry of Labor and Skills, UNDP, Korea International Cooperation Agency (KOIKA), and the Next Ethiopia Startup Initiative (NEST), the program looks to bridge the gender divide in the technology entrepreneurial ecosystem. Elham Mohammed, Program Specialist at EDI, expects the program’s design to help foster growth and innovation while contributing to the alleviation of gender disparity plaguing the sector. The immersive boot camp looks to equip female founders with skills for successful venture launches by providing a curriculum that includes field visits, mentorship, and experience-sharing events. “The support extends beyond a one-time financial reward,” Elham told Shega. Opportunities to participate in pitch competitions, exhibitions, and additional financial support are also part of the program according to the program specialist.

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• New report highlights positive impact of liberalisation of mobile market in Africa’s second largest country

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International Federation of Freight Forwarders Associations (FIATA), the world’s largest logistics organization, has chosen Ethiopia to host the FIATA World Congress in the new century, the largest event in the industry, after many unsuccessful attempts. Addis Ababa has been chosen to host the 64th FIATA World Congress for 2027 by the congress that convened in Panama City last week for the 61st FIATA World Congress. According to FIATA’s official release on the city’s selection, “the FIATA World Congress will take place in the vibrant Ethiopian capital of Addis Ababa, marking the turn of a new century in FIATA’s history.” The president of the Ethiopian Freight Forwarders and Shipping Agents Association (EFFSAA), which is a part of FIATA and in charge of organizing the congress, Dawit Woubishet, remembered that his organization had made attempts in the previous several years to secure the right to hold the major international logistics event. Attending the convention in Panama City, Panama, Dawit stated that, “at the end of the day we have got to host the next century event in Addis Ababa,” despite the Ethiopian association’s repeated efforts over the previous four years to organize the event. “African logisticians will use the opportunity to show their case, not just for Ethiopia,” he declared. While returning to Ethiopia following his attendance in Panama, he told Capital from Washington, DC, “I have met African representatives at the congress who expressed their desire to amplify African presence at the congress.”

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After the announcement of a new directive allowing foreign investors to engage in wholesale and retail business in Ethiopia, 71 international companies have expressed interest, and 20 licenses have been issued since July. It is worth recalling that two months ago, the Ethiopian Investment Board, chaired by the Prime Minister, decided to open up sectors previously reserved for Ethiopians to foreign businesses. Since the Ethiopian Investment Commission began issuing licenses under this new law, 21 organizations have been licensed: 13 to engage in retail business and eight for export activities. On September 23, 2017, a discussion was held at Mesfen Tafesena and Associates Law Office regarding Ethiopia’s investment landscape. The meeting was attended by key stakeholders, including the Minister of Finance, Dr. Eyob Tekalign, and Dr. Brook Taye, CEO of the Ethiopian Investment Holding Group. The senior policy and legal advisor from the Investment Commission stated that many companies granted licenses are from emerging markets. While the advisor did not disclose company names, it was noted that most businesses registered for export are focused on coffee and sesame. Additionally, companies planning to import into Ethiopia have shown interest in sectors like electric vehicles and construction materials.

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A 70-million-dollar World Bank project targets a shift towards a competence-based civil service by leveraging technology and modern human resource management systems. The four-part governance modernization initiative is slated for full funding by 2029, bringing comprehensive upgrades to the country's public service. Signed by Finance Minister Ahmed Shide and newly appointed WB regional director Mariyam Salim, a steering committee will be formed within two months to oversee the project, under the guidance of the Council of Good Governance in the Prime Minister’s Office. Although the Council is part of the government’s broader reform program, it will not be directly involved in the implementation structure. Ethiopia’s civil service has ballooned from around 190,000 in 1991 to nearly 2.5 million individuals today, with teachers and medical workers accounting for nearly half of the workforce. Prime Minister Abiy Ahmed’s (PhD) administration has presaged a thorough civil service reform over the past few years as it grappled with a public sector wage bill that swallowed nearly half of public expenditures. Around 25 million dollars will be allocated towards upgrading public administration capabilities, which includes an integrated Human Resource Payroll System (IHRPS) with online transaction and analytical processing functionalities. Specialized training of HR units within selected government bodies in addition to systems for performance evaluation, career development criteria, and regulations for outsourcing are envisaged by the project. An HR analytics unit within the Civil Service Commission that focuses on assessing gender-disaggregated data collection is also planned as part of reducing gender disparities. Low salary satisfaction, inadequate resources, lack of professional development opportunities, and low prestige for civil servants are cited as being drivers for low levels of motivation.

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The National Bank of Ethiopia has announced a special foreign-exchange allocation of $175 million to a state-owned primary importer of fuel and related products.

The allocation aims to address upcoming fuel-related import payments by the Ethiopian Petroleum Supply Enterprise, according to a central bank statement. The Horn of Africa nation spends about $4 billion annually on such imports, Prime Minister Abiy Ahmed said in June.

Ethiopia, which has struggled with dollar shortages, is due to receive an International Monetary Fund program payout of about $345 million in addition to a $1 billion disbursement announced in July.

The nation liberalized its foreign-exchange regime in July, a step which depreciated its currency by about 50% to a level similar to the street value. That depreciation has helped to draw more foreign exchange to official channels. In August, the central bank conducted its first-ever special auction to boost banks’ dollar holdings.

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Ethiopia’s central bank has licensed five non-bank foreign exchange bureaus, marking a significant milestone in the country’s recent macroeconomic reform. Dugda Fidelity Investment Plc, with renowned business tycoon Getu Gelete as a significant shareholder, Ethio Independent, Global Independent, Robust Independent, and Yoga Forex Bureau received the regulatory green light. While these independent Bureau’s are limited to conducting spot transactions (immediate), they can buy currency notes of up to 10,000 dollars without a Customs Commission declaration. The forex bureaus are also allowed to sell foreign currency of up to 5,000 dollars for individual travelers with the necessary documents and up to 10,000 dollars for business ones. The FX bureaus are required to prominently display their buying and selling rates to customers as a means of ensuring transparency. Customers have the right to request receipts for their transactions.

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Selam Ethiopia will launch the first workshop of its Strengthening Intellectual Property Rights in Ethiopia (SIPRE) project on 3 October.

SIPRE is an 18-month national initiative funded by the United Nations Educational, Scientific and Cultural Organisation (UNESCO)’s International Fund for Cultural Diversity (IFCD).

This project, carried out in collaboration with the Ministry of Culture and Sport, the Ethiopian Intellectual Property Authority, and the Ethiopian Music Sectoral Associations Union, addresses the critical need for better protection and enforcement of intellectual property (IP) rights in Ethiopia’s visual and performing arts sectors.

SIPRE is supported under UNESCO’s 2005 Convention on the Protection and Promotion of the Diversity of Cultural Expressions, a global framework ratified by 146 parties, including Ethiopia. This Convention guides UNESCO’s efforts to empower countries to create, produce, and distribute cultural goods and services, ensuring that their cultural and creative industries thrive. The Convention also underpins the IFCD, which grants funds to nations like Ethiopia that are committed to implementing public policies that strengthen these sectors.

Through national campaigns, workshops, and educational resources, SIPRE will enhance understanding of IP rights among artists and key stakeholders. The project includes training programs on IP laws, copyright registration, and enforcement mechanisms. An online platform will also be launched to streamline copyright processes and provide vital information to Ethiopian artists.

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Dutch-rooted global development organization SNV is collaborating with KMD London, a consultancy firm, to launch a mobile app-based comprehensive financial solution for medium, small, and micro enterprises (MSME) through three Ethiopian banks. The platform provides non-collateral cash flow-based loans and inventory management tools to alleviate financial service hurdles faced by local MSMEs while minimizing risks through an insurance facility. It is part of the Livelihoods Improvement for Women and Youth (LIWAY) program, which looks to improve the lives of over a quarter million Ethiopians until 2026. Tatek Tesfaye, market system development adviser at SNV, says a two-year planning period preceded the development of the platform that relies on cash flow for its services. He expects the project, one of 21 others undertaken by the NGO, to address financial management and access hurdles faced by MSMEs. “It will empower them (MSMEs) significantly,” Tatek told Shega. Prospective users can register at the nearest branches of the state-owned Commercial Bank of Ethiopia (CBE), Awash Bank, and Ahadu when the platform launches, while more banks might join in the future. After relevant documentation is provided, the system already integrated into the banks’ core banking system can analyze risk to determine the size of loans. Bank agents equipped with a different app will conduct sight visits to the MSME’s to authenticate details and evaluate their status.

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Safaricom Ethiopia has appointed Andualem Admassie (PhD), former CEO of Ethio Telecom, as its new Chief External Affairs Officer. This marks the second high-level appointment to this position following the resignation of Henok Teferra, who later joined Boeing. Andualem, who earned his PhD in Business Administration from Bulacan State University, was succeeded by Frehiwot Tamiru as CEO of Ethio Telecom in 2018. He later served as Director of the Higher Education Relevance and Quality Agency (HERQA). More recently, he co-founded and led a telecom company in South Sudan as CEO. “This is a significant step for Safaricom Ethiopia as we focus on enhancing our local leadership. We are confident that Dr. Andualem will be instrumental in advancing our business operations and providing valuable local insights to support our growth,” said Wim Vanhelleputte, CEO of Safaricom Ethiopia. Andualem’s other roles during his time at the state-owned Ethio Telecom include Chief Human Resources Officer and Chief Internal Audit Officer.

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The Commercial Bank of Ethiopia (CBE) has introduced value-added tax (VAT) on various financial services as part of its efforts to comply with the government’s new tax laws and raise revenue. The VAT increase, effective from October 1, 2024, is linked to broader economic reforms impacting Ethiopia’s financial sector. This move comes at a critical time for CBE, which is facing growing financial challenges due to the recent floating of the Ethiopian birr and its exposure to non-performing loans from state-owned enterprises (SOEs). The introduction of VAT on banking services is one of several measures the bank is adopting to strengthen its financial position and absorb the impact of currency fluctuations.

World Bank’s USD 700 Million Bailout

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Ethiopia is set to make a significant milestone in its education sector by officially recognizing educational programs for the first time. This development comes after two years of efforts by the Education Training Authority to establish procedures and guidelines aimed at helping educational institutions re-register and operate effectively. In the past, the authority had indicated that quality audits and accreditation would be conducted to ensure that institutions provide quality education at the program level. This recognition signifies a formal work permit for educational institutions to operate within the framework of quality assurance. As part of this initiative, various universities across the country are currently applying for accreditation of their programs. This year marks the first time Ethiopia will officially recognize these educational programs, reflecting a commitment to improving the quality of education in the country. The necessary preparations for this recognition have been made, and the implementation process is underway. The Education Training Authority has announced that re-registration of institutions under the new system will take place in the first six months of the 2024/25 fiscal year. This announcement was made during the 16th International Conference held at Admas University. Molla Tsegaye (PhD), President of Admas University, emphasized the institution’s commitment to conducting research and creating platforms for development. He noted that the university has hosted at least 18 conferences annually over the past 15 years, focusing on various aspects of higher education, including quality research and community service.

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The Ministry of Mines of Ethiopia said the country’s gold production will soon increase by 10 tons when there gold mining companies go operational. This is indicated by the state minister of the Ministry, Million Mathewos, who spoke to the state-owned Ethiopian News Agency. The new goldmining are located in Benishangul, Gambela, and Tigray states, with the largest facility in KurmukDistrcit, Benishangul-Gumuz State, projected to produce about nine tons of gold per year. The Minister stated that once completed, these projects will boost the country’s gold production by an additional 10 tons annually, significantly contributing to mineral exports and increasing foreign currency earnings. In addition to these developments, the Gugi Gold Mining Company is undergoing major project expansion, and plans are in place to launch potash mining projects in Afar State, Million revealed. Reports show that last year Ethiopia secured $420 million from mineral exports with the majority of earning coming from gold. When all the new gold mining projects go operational, Ethiopia expects to earn some $800 million from the sector this fiscal year. Over the past few years the mining sector in Ethiopia has been negatively affected by the insecurities and instability leading to the decline of foreign currency earning.

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Thousands in Ethiopia's capital city defied a downpour to celebrate Meskel, the first big festival of the religious year.

It marks the discovery of the cross Jesus was crucified on, according to Ethiopian Orthodox Christian tradition.

On Thursday, believers gathered in a large public plaza in Addis Ababa for rituals, speeches and even a spot of theatre.

But the highlight was the lighting of a bonfire in the centre of the square.

There was heavy security presence at this year's celebration - personnel numbers have been beefed up at many major events in Ethiopia amid sporadic fighting in regions such as Amhara and Oromia.

Traditional instruments play a significant role in Meskel proceedings.

Heavy rain fell at one point during the evening, prompting musicians playing the 10-stringed begena to cover their instruments.

Vocalists also put on a show.

This all-female choir adorned themselves with mock versions of adey abeba, an indigenous flower that symbolises the Ethiopian New Year, which was marked earlier this month.

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Ethiopia was ranked 24th from the bottom out of 193 countries by a United Nations E-government development report released last week. While the country climbed 10 positions from its previous rank of 179 in the 13th edition of the report, it remains categorized in the lower-middle tier with a minimum first-level rating. The E-government survey report also highlights interesting differences between different regions, with most European countries grouped very high in the E-Government Development Index. In contrast, African countries remain around the bottom. With most low-income countries having underdeveloped metrics to evaluate the success of their digital government efforts, impact assessment remains limited.

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Ethiopia has made a bold and unprecedented move by becoming the first country to ban the import of gasoline and diesel vehicles. The country is pushing for a rapid transition to electric vehicles (EVs), signaling a profound shift in its environmental and energy policies.

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Mered Bisrat, founder and CEO of Pragma Investment Advisory, stands as a key figure in Ethiopia’s upcoming capital market. At just 31, he skillfully uses his personal and company’s social media presence to share insights and provide updates on the sector’s latest developments. His expertise is regularly sought out by media outlets, where he offers informed commentary on broader economic issues. Behind the scenes, Mered is working on launching an investment bank, with aspirations of establishing it as Ethiopia’s premier institution in the field. Yet, Mered’s involvement with the capital market dates back long before Ethiopia officially announced its establishment in late 2018. His passion for the field runs deep—his close friends even called him a “capital market nerd” well before his path as an investment banker was cemented. On a Thursday afternoon, Mered Bisrat Fikreyohannes was quickly wrapping up a one-on-one meeting in his cozy advisory office at Meskel Flower. Surrounded by walls plastered with sticky notes a flickering screen broadcasting Bloomberg Business News intermittently catches his gaze. The CEO of Pragma Investment Advisory has always had the capital market-focused TV channel as his go-to source of information— nearly 15 years before he was poised to participate in it. Mered is the firstborn of three brothers raised in Addis Ababa by civil servant parents. He completed his formative education at St.Joseph’s School and embarked on his collegiate odyssey at Addis Abeba University (AAU).

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The Ethiopian government is awaiting a decision regarding the importation of fuel through Berbera Port in Somaliland, a move prompted by ongoing issues with fuel distribution and service capacity at the Horizon Oil Storage Depot in Djibouti. The Horizon depot has seen a reduction in service capacity, leading to disruptions in the fuel supply chain within Ethiopia. Ato Lemesa Tulu, director of oil products marketing research at the Oil and Energy Authority, highlighted that the diminished capacity of the Horizon depot has resulted in a shortfall in fuel availability. “The government doesn’t have a problem buying fuel,” Mr. Lemesa stated, adding that the Horizon depot has not undergone repairs since its establishment 18 years ago, contributing to its current limitations. Ethiopia requires approximately ten million liters of diesel daily; however, shipments from Djibouti have decreased, with only eight million liters being released per day. Mr. Lemesa emphasized the necessity of exploring alternative ports to address this supply issue. He mentioned that research has been conducted to determine how much fuel can be imported through Djibouti, with recommendations to use Berbera Port for the remainder. “Berbera Port has been identified as having adequate service facilities, and a recommendation to utilize this port has been submitted to the government for consideration,” he noted. Without a resolution to the challenges at Djibouti’s port, Mr. Lemesa warned that disruptions in fuel supply could persist into the next year.

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For the first time, Ethiopia has started transporting livestock by train to Djibouti. Chief Executive Officer of the Ethio-Djibouti Railway Joint Stock Company, Engineer Takele Uma, announced the launch of the railway transport service for livestock from Adama to Djibouti. Engineer Takele Uma recalled that previously, railway transport was only used for importing goods into the country. He stated that this new service will enhance Ethiopia’s export capacity. He added that the Ethio-Djibouti railway through Adama will boost the export of quality meat products to international markets and help reduce traffic congestion. In a post on his social media page, Engineer Takele Uma emphasized that the introduction of this service demonstrates Ethiopia’s commitment to conducting efficient and sustainable business in the sector.

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Ethiopia’s four-year economic reform program, supported by a 3.4 billion dollar Extended Credit Facility (ECF), entails thorough digitization across multiple public sectors. The International Monetary Fund (IMF)-backed program includes expansion of e-payments in the rural safety net program, installment of digital supervision of state-owned enterprises, and electronic tariff valuation. Several details laid out in the 144-page document, which includes staff appraisals and current reforms, highlight the introduction of key digital reforms across multiple public services to improve efficiency. Aiming to improve financial management the Ministry of Finance, is developing a digital reporting system that monitors State Owned Enterprise (SOE) sector financial flows, quasi-fiscal operations, contingent liabilities, and fiscal risk management. Despite non-concessional external borrowing being reduced to zero in recent years, an accrued debt stock of above 8 billion dollars by SOE, or 28% of Ethiopia’s external debt stock, still resides in the Enterprises. SOEs’ key performance indicators and monitoring of financial relations between SOEs and the state, including financial flows (subsidies, lending, and tax obligations), implicit transfers (public service obligations—PSO, preferential tax regimes), and loan guarantees and contingent liabilities will be facilitated through the system. A budget for the IT project has already been approved, while it is expected to be operational by June 2025.

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Kifiya, a leading AI-powered, alternative data-driven scoring, embedded finance, and AgTech company, has been awarded the prestigious Silver Award in the Product Innovation of the Year category in Africa at the Global SME Finance Awards 2024, held as part of the Global SME Finance Forum in São Paulo, Brazil on September 17, 2024. The Global SME Finance Awards, organized by the International Finance Corporation (IFC) and the SME Finance Forum, recognizes and celebrates institutions that have delivered innovative products and services and achieved impressive results in expanding finance and services to SMEs. Kifiya is the first Ethiopian company to win this award. This recognition highlights the company’s commitment to building a digitally and financially inclusive future by leveraging AI and cutting-edge technology to bridge the credit and market access gap in Sub-Saharan Africa.

Receiving this award reflects our ongoing dedication to empowering African MSMEs, SHFs and low-middle-income individuals through AI-powered and data-driven solutions. This also demonstrates Ethiopia’s new-found drive for innovation led by the reforms instituted by our Prime Minister, Dr. Abiy Ahmed, which have created an enabling environment and policies that foster and encourage innovation, allowing companies like ours to thrive.

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Ethio Telecom, the state-owned telecom provider with 130 years of service, has unveiled a formidable budget of around $1 billion as it gears up to launch 260 new products and services in the coming year. CEO Firehiwot Tamiru presented the annual plan for the fiscal year at Skylight Hotel on Thursday, outlining ambitious growth driven by an expected five million new mobile subscribers and eight million additional users of its mobile money platform, Telebirr. The expansion plan includes significant infrastructure development, with 1,298 new mobile sites and 920 kilometers of new fiber networks, extending 4G coverage to 500 more cities and bringing 5G services to 15 additional cities. Firehiwot also revealed an ambitious revenue target, aiming for a 75% increase to reach 163.7 billion birr ($1.1 billion) by 2024/25. Last year the state-owned operator garnered 93 billion birr. The company plans to boost foreign currency earnings by 42%, targeting an additional $84.8 million on top of this year’s $198 million.

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A dream has come true for Loza Abera, who this month became the first Ethiopian woman to sign a contract to play professional women’s football in the United States. "I am thrilled," she said during a TV interview with VOA’s Horn of Africa Service. "I used to say to my friends, ‘I will be the first woman professional international player.’ No one believed me during that time … this was my dream," Loza said of her journey from playing street football outside her home in a small town in southern Ethiopia to a professional league in America. Earlier this month, Washington’s entry in a newly formed Division 1 women’s football league announced the signing of Loza, the captain of Ethiopia’s Women’s National Team. The club, DC Power, said it was the first-ever contract for an Ethiopian-born woman’s football player in a first-division U.S. professional league. Loza, 26, says she understands she has a responsibility to not just achieve her own dream, but also to inspire other Ethiopians. "I thank God for helping me reach here. I was happy."

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Ethiopian Airlines is poised to make history with the delivery of the Airbus A350-1000, scheduled for October. This landmark event will see Ethiopian Airlines become the first African carrier to operate this state-of-the-art aircraft, underscoring its leadership role in the continent’s aviation sector. The Airbus A350-1000 is a cutting-edge addition to the A350 family, designed to offer superior performance and efficiency. With a passenger capacity ranging from 350 to 410, depending on the configuration, the A350-1000 is ideal for accommodating both economy and premium passengers on long-haul routes. This increased capacity allows Ethiopian Airlines to better serve its expanding network of international destinations and respond to growing passenger demand. One of the standout features of the A350-1000 is its impressive range of approximately 8,000 nautical miles (15,000 kilometers). This extended range allows for non-stop flights between major global hubs, reducing the need for intermediate stops and offering a more streamlined travel experience. The aircraft’s advanced aerodynamics, including a larger wingspan and new wing designs, enhance fuel efficiency and contribute to a lower environmental footprint compared to older aircraft models. The A350-1000 is powered by the Rolls-Royce Trent XWB engines, which are known for their quiet operation and fuel efficiency. These engines represent a significant advancement in aviation technology, providing not only improved performance but also a reduction in noise pollution—a crucial factor for airports and surrounding communities. Passenger comfort is a key focus of the A350-1000’s design. The aircraft features a spacious cabin with larger windows, which allow more natural light and offer panoramic views. The seating arrangements are designed to provide more space and comfort, while the improved air quality and advanced lighting systems contribute to a more pleasant flying experience. These features are especially beneficial for long-haul flights, where passenger comfort is paramount.

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n Tseykeme, a village of stone farmsteads in northern Ethiopia 3,400 miles from the expensive shops of Covent Garden, a small copse of frankincense trees clings to a rocky hillside. Their twisting branches are gnarled, and the flaky, paper-like bark resembles that of a birch. The trees’ trunks bear scars: raw red patches where the bark has been crudely hacked away.

Frankincense thieves come here almost every night, says Demstu Gebremichael, a local farmer. Usually, they work by moonlight, but Demstu can sometimes see the flash of torches as they scrape away the valuable white sap oozing from cuts in his trees.

For decades, 78-year-old Demstu harvested the frankincense himself, loaded it on to camels, and sold it in the nearest town, Abi Adi. The small sums of money it generated supplemented his income as a subsistence farmer. “This is how we bought things like clothes and school materials for the children,” says Demstu.

These days, however, he harvests “almost nothing”. The resin is stolen before he can collect it. Standing beneath one of his 36 frankincense trees, Demstu tells of beatings meted out to neighbours who confronted the thieves, mostly local young men who have lost their livelihoods to war and drought.

“People need to survive somehow,” says Demstu, “so they turn to this.”

As more people extract the resin from a shrinking number of trees, the future of the species – and of local farmers – is under threat. One of the first warnings that frankincense was teetering towards extinction came in 2011: a study of Boswellia papyrifera in northern Ethiopia predicted that 90% of the trees could disappear by 2060.

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SunPay Solutions, a fintech startup with close ties to the Sunshine Investment Group, one of Ethiopia’s biggest conglomerates, had its license revoked by the National Bank of Ethiopia (NBE) for a long list of violations. The company received a two-month pilot permit for payment system operator and POS operator businesses two years ago and has failed to report its progress ever since. A letter written by Solomon Damtew, Director of the payment & settlement systems directorate at NBE, and copied to all banks in the country three weeks ago cites six violations that led to the revocation of the license. Failure to appoint a CEO, inability to renew a license, incapability to maintain a physical presence and inability to conduct a shareholders meeting are some of the transgressions to NBE directives, the Commercial Code, and the National Payment System Proclamation which led to actions against Sunpay. “Your payment system operator license for POS & payment gateway business has been revoked, effective August 27, 2024” reads the letter. Yonas Samuel, the youngest child of business mogul Samuel Tafesse, was a key figure and significant shareholder in the establishment of the fintech company. Yonas was leading Sunshine Investment Group’s foray into the technology sector with ambitions to also enter the ride-hailing and e-commerce scene.

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A centuries-old Ethiopian holiday tradition of tossing lemons (Lomii in Amharic), onto romantic prospects is getting a 21st-century reboot with the ‘Lomii’ dating app. Two tech developers who found themselves closed off from the dating scene during COVID-19-induced lockdowns found a way to fuse their cultural roots, tech skills, and entrepreneurial aspirations. Users express interest in each other by throwing lemons (Lomii) to each other very much like the age-old tradition during Timket holidays with a basket of offerings availed each day. The dating app, which was officially launched in January, has racked up 21,000 users who prefer its easy-to-use green interface in their romantic pursuits. Bereket Lakew, cofounder of Lomii, had an ‘Aha’ moment amid the throes of the global pandemic as he found most offerings in the market ill-suited to his social battery. He and cofounder Ismael Kedir went about creating a beta version over the coming months that can best cater to a uniquely Ethiopian flavor. “We were surprised by the immediate wave of downloads,” Berket told Shega. Within three days of the beta launch, over 3,000 people downloaded the app, with the traffic overload crashing the service. The founders recognized a pent-up demand for their product and went on a lengthy optimization campaign to equip Lomii with expanded functionality.

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It has been 50 years since an emperor, described by many as the "Father of Africa", was overthrown by security forces known as the Derg in a “creeping coup”.

His Imperial Majesty Emperor Haile Selassie I was hailed around the world as a hero against fascist forces. But unbeknown to many is that the popular sovereign spent many years campaigning against Italian dictator Benito Mussolini from his West Country home in Bath, between 1936 to 1940.

University of the West of England professor Shawn Naphtali Sobers has been sharing the story of the emperor's exile in England in a new programme for the BBC World Service.

The Ethiopian leader arrived in London's Paddington Station to huge crowds. However, his passionate speeches against Mussolini, who had invaded Emperor Selassie's home country, was an "embarrassment" to the UK government, which were seen as "keeping Mussolini cosy".

Emperor Selassie was ordered to "go out to the provinces", so he soon settled in Bath.

All of his family and staff moved to Fairfield House and quickly became the talk of the city.

Despite how "noticeable" they were, the emperor became "engrained" in the community, said prof Sobers.

"He was really a people person," he said, explaining Emperor Selassie once refused to skip the queue for Weston-super-Mare's Tropicana resort.

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Addis Ababa’s Traffic Management Authority (TMA) is stepping up its city-wide automation efforts with the introduction of digital parking tickets in the Ethiopian New Year. The Authority aims to streamline the capital’s fragmented parking procedures, currently managed by 350 youth unions, through enhanced digital oversight. Biniyam Getachew, Director of Parking Research & Management at the Authority, anticipates increased revenue generation and a reduction in parking ticket-related hassles. The Authority has partnered with local technology company Infratech to develop the software. Parking officers in each neighborhood will use this app to register the time of parking, length of stay, and moment of departure for each vehicle, with payments facilitated through all digital banking services. “The days of arguing with parking officers are over,” Binyam asserted. “Ticket prices are automatically calculated.” TMA is also importing 1,500 tablets for distribution to traffic police. These devices are intended to assist officers in operations such as issuing fines, verifying the legality of driving licenses, and tracking drivers who evade parking tickets. The Authority collects a fifth of the earnings from parking officers, who are often criticized for inconsistent ticketing practices.

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China’s economic influence in Africa has been growing and Ethiopia has been one of the countries that benefited from the former’s economic presence. Now Ethiopia and China are poised to take their economic relation to the next level as agreement has been reached between the two countries for currency swap. Ahmed Shide, Ethiopia’s Minister for Finance, revealed this in an interview with the state media. However, details of the amount of currency swap is undisclosed at this time. What is indicated is that the National Banks of China and Ethiopia are instructed to work on it. Timeline for finalization is unspecified too. Chinese financial service providers will be operating in Ethiopia as part of the arrangement for the currency swap, according to Ahmed Shide. Ethiopia has been struggling with hard currency shortages in recent years. In July this year, Ethiopia signed a currency swap agreement with the United Arab Emirates amounting to U.S. $817 million which is believed to ease the reserve shortage for U.S. dollars. There is speculation that the currency swap arrangement with China could be much higher.  Currently,  China is the largest source of Foreign Direct Investment to Ethiopia and the largest trading partner.

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The United States Government through its Agency for International Development (USAID) launched the Kefeta National Youth Saving and Credit Cooperatives (SACCO) on September 5, a youth-led, youth-managed and youth-owned financial institution that will provide financial solutions friendly to young people and will support young entrepreneurs. The launch took place during the two-day Youth Development Learning Forum held September 5 and 6 at the Skylight Hotel. Kefeta’s SACCO mobilizes savings and provides access to affordable credit to assist the economic well-being of young people with a creative mix of youth-tailored financial products. The National SACCO puts their member’s interest first and provides a level of service generally unavailable to young people at other financial institutions. Knowledge of financial concepts like saving, investing, spending and borrowing is the foundation of financial literacy and contributes to a sense of financial security for all people, but most needed by young people as they seek careers and independence. The National Youth SACCO, with branches in 18 Ethiopian cities, has over 7,800 youth members who own more than 38,900 shares and 59,007,640 Birr (USD 531,800) in savings. The Youth Development Learning Forum brought together key stakeholders, including government officials, youth representatives, and development experts to discuss challenges, opportunities, and best practices around youth access to finance in Ethiopia. The Forum featured panel discussions with successful young entrepreneurs and digital literacy influencers, sharing their experiences and insights.

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Ethiopia’s biggest financial institution, the state-owned Commercial Bank of Ethiopia (CBE) has crossed a formidable financial threshold as its deposits reached 1.17 trillion birr in the calendar year. CBE’s 11% rise in deposits aligned with significant strides in its loan disbursements with 218 billion birr given out during the year. With less than 10% of the loans going to the public sector, it marked a significant turnaround for an institution historically criticized for leaving out the private sector. The Bank’s figures were revealed during its performance dialogue session with the management of Ethiopian Investment Holding (EIH), the country’s sovereign wealth fund, mid-week. Attendees included freshly crowned CEO of the Fund Brook Taye (PhD) who has been conducting evaluations over the past two weeks, and CBE president Abie Sano. CBE, which holds 58% of banking assets in Ethiopia, is one of the top earners among the 26 state-owned enterprises within EIH’s portfolio.  A month before Ethiopia adopted the four-year economic reform program prescribed by the International Monetary Fund (IMF), the Council of Ministers approved a capital raise for the Bank bolstered by 870 million billion birr(government securities). The reform program includes tight limits on SOE borrowing including CBE governance reform backed by the World Bank to enhance financial discipline. WB’s Financial Sector Strengthening Project (FSSP) of US$700 million will be used for recapitalization and continued support of the reform and restructuring of the bank. This will include a focus on governance and risk management, including CBE’s ownership policy, mandate, and business plan to ensure CBE can compete as a sound, viable, and commercially oriented bank at arms-length from the government as the financial sector is opened.

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The Ethiopian Electric Utility has announced a rolling increase in power tariffs over the next four years as part of a comprehensive power sector reform. Quarterly increments averaging 10% will be progressively applied, with the first round slated for next month. This will result in EEU customers facing an average power utility cost increase of 400% by 2028. Shiferaw Teilia (Eng), CEO of EEU, unveiled the new tariffs, which will be applied discriminately based on daily consumption rates, at Nib Bank’s headquarters on Wednesday morning. “We have to recover our costs,” he noted. “Our infrastructure is sourced from the global market.” The CEO indicated the need to maintain competitive prices for financial health, emphasizing how the adjusted rates still remain significantly less than neighboring Kenya. He expects the new strategy to boost EEU’s financial stability. “Our goal is to stimulate investment and foster competition,” Shiferaw noted. Households that use less than 50 kilowatt hours (kWH) at 0.27 birr will see their tariffs climb to 1.56 birr as the four-year program is completed by 2027/28. Per capita electricity consumption is 140 kWh per year in Ethiopia, which is only 5 percent of the global average of 33,131 kWh.

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Private equity firm 8 Miles, associated with Irish rockstar and philanthropist Bob Geldof, has exited majority of its stake in Awash Wines, a leading wine producer in Ethiopia, for an undisclosed sum.

• The PE firm led a consortium to acquire 100% of Awash Wines in July 2013 and exited this September to a “strategic investor consortium.”
• Founded in 1936, Awash runs two wineries in Addis Ababa and makes many popular brands, including Axumit, Kemila, and Gouder.
• By 2020, 8 Miles had raised $150mn from several institutions including the African Development Bank, World Bank, and the British investment firm CDC.

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Mahlet Afework has spent more than the last decade building one of Ethiopia’s most sustainable fashion labels: Mafi Mafi. The award-winning brand has been celebrated for its striking designs, seamlessly blending Ethiopian heritage with ready-to-wear fashion that has been showcased on catwalks from Lagos to London. Now, the visionary behind the label is channeling her experience into establishing one of the country's leading fashion schools. Driven by the challenges she encountered while building her label and the difficulty of finding skilled local talent, Afework is launching the Mafi Fashion Academy and Lab (MFAL) — a groundbreaking institution designed to bridge the gap in quality fashion education in Ethiopia and Africa. “I always wanted to open a fashion academy focused on quality education, but it was originally a dream for the distant future,” she tells OkayAfrica. “However, as Mafi Mafi began to grow, both locally and internationally, the demand for skilled talent surged. It became very difficult to find the right talent in the market, which made it clear that the time to act was now.” Fashion is actually Afework’s second career, having found fame as a rapper at the age of 16. But even then, fashion was at the forefront as she had to make her own clothes to create the aesthetic for her photoshoots and videos. “While doing that, I also designed and made fashion pieces at home. It didn’t take long for me to realize I wanted to focus on fashion,” she says. She explains that she taught herself to sew by using Google. When she could, she also tried to take technical classes locally, while also searching for scholarships to attend fashion schools in Europe and North America.

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Ruth Girmay from Ethiopia has been awarded the prestigious Most Commendable Award at the Africa Talent Leather Design Showcase 2024 for the second consecutive year. Ruth’s innovative and environmentally conscious design, the “Overfishing Bag,” captivated the judges, marking her as a standout talent in Africa’s fashion industry. The announcement, typically reserved for the final event, was made early to ensure Ruth’s participation in the accelerated UK showcase. Ruth’s “Overfishing Bag,” inspired by the Nile Perch, is a creative response to the critical issue of overfishing. The bag’s design features elements like the caudal fin and spiny dorsal fin of the Nile Perch, serving as powerful symbols of marine conservation. This project not only exemplifies aesthetic excellence but also aligns perfectly with the competition’s theme of innovation, sustainability, design prowess, and commercial viability, making Ruth’s work a compelling blend of artistry and advocacy. Ruth Girmay’s repeat victory underscores her deep understanding of the thematic question posed by the Real Leather. Stay Different. Africa Design Showcase 2024: How can fashion drive environmental sustainability while preserving design prowess? Her “Overfishing Bag” is a profound response, highlighting the urgent need for environmental conservation through the lens of fashion. The judges were particularly impressed by Ruth’s ability to create a design that is both visually striking and deeply meaningful. Her use of materials and intricate patterns not only reflects her commitment to sustainability but also communicates a strong message about the impact of overfishing on marine ecosystems. Ruth’s design serves as a powerful reminder that fashion can be a force for positive change, addressing global challenges while celebrating design prowess.  

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Less than a year since its launch, Yango, an international ride-hailing service by Russian tech giant Yandex, has quickly made its mark on Ethiopia’s transport ecosystem. With competitive pricing that sets it apart from other operators, Yango’s marketing has proven irresistible for many passengers. In a sector where new platforms often struggle to survive, Yango’s rapid growth in user numbers mirrors the early success of Feres. Yango has achieved 1 million downloads within just ten months.

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The Ethiopian Capital Market Authority (ECMA) has launched the country’s first regulatory sandbox, providing startups and established companies a flexible legal framework to test innovative capital market products and services with real customers. During the session held at the Sheraton Addis Hotel, ECMA’s freshly crowned director, Hanna Tehklu, highlighted the need for a dynamic regulatory landscape capable of adopting innovative products for accelerating economic growth. She pointed to potentials inherent in the Sandbox that can help refine products through collaborations between regulators and participants. “It can also serve as an incubator for ideas,” the DG noted. Originating in the United Kingdom eight years ago, regulatory sandboxes have since propelled numerous products into global markets, including in India and Australia. These sandboxes also provide authorities with valuable insights for developing regulations that keep pace with emerging technologies. The ECMA’s sandbox is open to both licensed firms, unlicensed firms involved in licensable activities, technology providers, and startups with market-ready products. Eligibility criteria include innovation, user benefits, the need for a sandbox, and a product ready for testing. Although the sandbox offers regulatory relief, participants must still adhere to overarching legal and regulatory standards that are not waived for testing. Developed in collaboration with the UNDP, UK firm MPENSA, and the ECMA, the Ethiopian sandbox aims to facilitate the transition of firms into the broader market after successful testing. ECMA will continue to support participants, offering regulatory tools such as Testing Approval Letters (TALs), modified licensing requirements, and, when necessary, waivers.

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Teff, a tiny grass seed native to Ethiopia, ranks among the world’s most ancient cultivated crops, having been domesticated between 6,000 and 4,000 BC. For thousands of years, Ethiopians have used teff flour to make ‘injera’, a flat, spongy sourdough bread that is a staple in their diets. Celebrated as a superfood, teff is gluten-free and rich in nutrients such as iron, magnesium, manganese, calcium, zinc, and vitamins B and C. Ethiopian elite runner Haile Gebrselassie has even credited teff as a factor in his athletic success. Investment-banker-turned-entrepreneur Yonas Alemu is the founder and managing director of Lovegrass Ethiopia, a health food company making a variety of items from teff and other Ethiopian grains. Its products include pasta, breakfast cereal, pancake mixes, powdered beverages and snacks. Lovegrass has a factory on the outskirts of Addis Ababa and sells both internationally and within Ethiopia.

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East African Trading House (EATH), a major player in Ethiopia’s fast-moving consumer goods (FMCG) sector, is entering the ecommerce space with its new platform, Besh Gebeya. EATH has also partnered with Chapa Financial Technologies to streamline its payment processes. The strategic partnership was announced early Tuesday morning at EATH’s headquarters. Through this collaboration, EATH’s extensive network of suppliers, customers, and partners will gain access to the Besh Gebeya ecommerce platform, which is equipped with a digital payment infrastructure supporting mobile money, bank transfers, and credit and debit card transactions. Yonan Getachew, a Technology Developer at EATH, revealed that a year of collaboration preceded the development of the platform. He also mentioned that the delivery services will be outsourced to a third-party company. “Some integration procedures are still underway,” Yonan told Shega. East African Trading House (EATH), a major player in Ethiopia’s fast-moving consumer goods (FMCG) sector, is entering the ecommerce space with its new platform, Besh Gebeya. EATH has also partnered with Chapa Financial Technologies to streamline its payment processes. The strategic partnership was announced early Tuesday morning at EATH’s headquarters. Through this collaboration, EATH’s extensive network of suppliers, customers, and partners will gain access to the Besh Gebeya ecommerce platform, which is equipped with a digital payment infrastructure supporting mobile money, bank transfers, and credit and debit card transactions. Yonan Getachew, a Technology Developer at EATH, revealed that a year of collaboration preceded the development of the platform. He also mentioned that the delivery services will be outsourced to a third-party company. “Some integration procedures are still underway,” Yonan told Shega.

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August 21, 2016 – The National Bank of Ethiopia (NBE) has introduced an amended directive, effective today, aimed at revising the pricing mechanism for gold purchased through its central and regional procurement branches. The new guidelines, detailed in Guideline No. Mada 2/2016, are designed to enhance the sustainability of gold supplies and maximize the country’s foreign currency earnings from the traditional gold production sector.

Key Changes in the Gold Pricing System

Under the revised directive, the purchase price of gold will now be directly linked to the daily selling rate of foreign currency, as published on the NBE’s official website. This move is expected to align gold transactions more closely with real-time market conditions, offering a more transparent and competitive environment for gold suppliers.

In a bid to incentivize gold supplier associations and individual merchants, the NBE has introduced a new payment structure. The key provisions of the directive are as follows:

a) The gold purchase price will be determined based on the daily foreign currency selling rate stated on the NBE’s website. This ensures that the prices reflect current market conditions and provide suppliers with fair compensation.

b) Suppliers will receive 95% of the value of their gold upfront, with the remaining 5% reserved. If the 30th day falls on a holiday or weekend, the supplier may select the price on the next working day. However, if the supplier does not return within 30 days, the bank will purchase the gold at the price set on the 31st day. This provision offers a level of flexibility while ensuring suppliers are compensated promptly.

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Ethiopia said it has more than doubled electricity production from its controversial mega-dam on the Blue Nile after two more turbines started operations. The multi-billion-dollar Grand Ethiopian Renaissance Dam (GERD), long a source of tensions with downstream nations Egypt and Sudan, is now generating 1,550 megawatts of electricity, GERD said in a post on X late Tuesday. "The overall progress of the GERD has now transitioned from construction phase to operation phase," it said, adding that construction of the concrete dam was now complete. "The two turbines generating 400MW each have now started operations, adding to the already functional two turbines generating 375MW each, totalling an output of 1,550MW." Ethiopia first began generating electricity at the dam in February 2022. It is ultimately expected to produce more than 5,000 megawatts, more than doubling Ethiopia's current output. Egypt and Sudan have voiced concerns about the operation of the dam without a three-way agreement, fearing it could threaten their access to vital Nile waters.

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The CEO of EEP, Engineer Ashebir Balcha, said at th weekend that the move was part of Ethiopia’s broader strategy to increase its revenue from the export of power to neighboring countries and beyond. “The power transmission to Tanzania is expected to begin by mid-September, following the completion of necessary preparations,” he said Balcha said that Ethiopia had earned over $140  million from power exports to neighboring nations in the past, which was a 6 per cent increase compared to the previous year. Ethiopia currently supplies power to neighboring Djibouti, Sudan and Kenya, with Tanzania to join this network soon. The planned power export to Tanzania is aligned with Ethiopia’s ongoing efforts to expand its regional energy connections. The country plans to extend its power grid to other neighboring countries, including South Sudan and Somaliland. The existing power line between Ethiopia and Kenya is expected to facilitate the new power export drive.

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AliExpress has officially entered Ethiopia, marking a significant milestone in the country’s evolving e-commerce landscape. Two weeks after Shega broke the story of the imminent entrance of the Chinese e-commerce giant, an official commercial launch ceremony was held at the Ethiopian Airlines-owned Skylight Hotel on Thursday. In an atmosphere pulsating with palpable excitement, various stakeholders from Ethiopia’s public and private sectors gathered for a day of presentations, panel discussions, and case studies. “This is not just a new chapter for Alibaba but also a new beginning for the Ethiopian e-commerce sector,” heralded Yeshurun Alemayehu (PhD), State Minister, Ministry of Innovation and Technology, during his opening remarks. He highlighted how the entrance of AliExpress presents significant opportunities for local businesses to participate in global commerce and scale up their operations. However, lingering legislative bottlenecks like the National E-Commerce Strategy, which is awaiting approval from the Council of Ministers, could present indications of an underdeveloped enabling environment. Inadequate digital infrastructure, logistics challenges, and limited access to digital payment systems remain critical challenges in the e-commerce landscape. Unresolved, these obstacles hinder consumer trust and adoption, which are vital for e-commerce growth. With around 45 e-commerce licenses registered by the Ministry of Trade & Regional Integration as of December 2023, the sector is filled with small, mostly ephemeral startups that pop out of business in a few years.

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Since it was launched, the Addis Ababa-Djibouti Railway, coordinated by China, Ethiopia and Djibouti, has improved transportation and boosted the local economy under the Belt and Road Initiative. Our reporter Zheng Songwu visits Ethiopia's Addis Ababa to learn more about the changes on the ground.

Dejen Gezu from Ethiopia was one of the earliest train engineers working on the Addis Ababa-Djibouti Railway. It spans more than 750 kilometers, starting in Addis Ababa and ending in Djibouti City.

ZHENG SONGWU Addis Ababa, Ethiopia "Hi, how is everything? When is the departure time? Would you like to share us how you operate a train?"

DEJEN GEZU Train Engineer, Addis Ababa-Djibouti Railway "Good, around 11 o'clock, yes."

In 2018, Dejen joined the China Civil Engineering Construction Corporation, or CCECC, one of the Chinese companies that helped to build and run the railway. He had the opportunity to visit the Zhengzhou Railway Vocational and Technical College in Central China's Henan Province.

ZHENG SONGWU Addis Ababa, Ethiopia "You were sent to Zhengzhou to be trained in how to operate a train, how was the experience?"

DEJEN GEZU Train Engineer, Addis Ababa-Djibouti Railway "And all the training was so important as was so crucial. We gained a handover experience. The training has around eight phases, such as classroom instruction, theoretical training, practical training, the route training or route operation. There also was an internship on the actual route to practice how to operate the train. These were all very very important training courses in China."

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The 5th International Interest-Free Banking & Takaful Forum, organized by AlHuda Centre of Islamic Banking and Economics (CIBE), successfully took place from August 20th to 21st, 2024, in Addis Ababa, Ethiopia. The event brought together an array of industry leaders, scholars, and practitioners from across Africa and beyond to discuss and explore the burgeoning potential of Islamic finance in the African continent. This monumental occasion was made possible through the collaborative efforts of esteemed sponsors Ethiopian Insurance Corporation, Dahabshil Bank International, Shabelle Bank, MYTM, ZamZam Bank and Global Insurance Co. S.C. The event was supported by numerous partners, including the Somaliland Banker’s Association, Islamic Finance Research Institute-Ghana, AL BARAKAH Multi-Purpose Cooperative Society Limited, Azerbaijan Fintech Association, and Africa Fintech Network. Media partners included Adsolute Communications Plc, IFING-MEDIA, Mesofinance Monthly, and Financial IT. Ethiopian Airlines served as the event’s official partner airline. The Forum aimed to facilitate a dynamic exchange of ideas and promote the growth of Interest-Free finance in Africa, a region poised to become a new frontier for Islamic banking and Takaful. The event featured in-depth discussions on critical topics such as the regulatory landscape of Islamic finance in Africa, investment opportunities in Interest-Free banking, the role of Takaful in financial inclusion, and the impact of Islamic fintech innovations on the African market.

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Wegagen Bank has officially launched its international pre-paid Visa card service today, August 21, during an event in Mekelle, Tigray Regional State. The card allows customers to make international cashless payments. “The new pre-paid Visa card allows customers to transfer funds and make payments at ATMs and Point-of-Sale (POS) machines worldwide,” said Solomon Tesfaye, Deputy Chief Executive Officer of Technology at Wegagen Bank, in a statement sent to Shega. The service also facilitates online e-commerce transactions and provides a digital alternative for sending money from abroad to family and friends in Ethiopia. Yared Endale, Country Manager of Visa Inc., pointed out that the Visa card plays a crucial role in expanding access to international financial services, allowing individuals to engage in the mainstream economy fully. On Monday, August 19, Visa also announced a “strategic partnership” with Ethio Telecom to launch Ethiopia’s first wallet-based Virtual Visa Card. The agreement seeks to enhance the current international money transfer remittance services through the introduction of the telebirr Remit App and Visa Direct. Visa Direct service enables Visa cardholders around the globe to transfer money to our country using a telebirr virtual card number.

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A three-year startup enhancement project by the Ministry of Innovation Technology (MinT) and the Japan International Cooperation Agency Ethiopia (JICA) is set for a January greenlight. Following preliminary agreements between the two parties last week, a final proposal currently being reviewed will seal the deal. Tadesse Anbesse, Head of the Startup Desk at Mint, explained that the project would entail an acceleration, incubation, and capacity-building program focused on tech-based Ethiopian companies. He says the primary goal of the project would be focused on more technical rather than financial support. “Enhancement of the ecosystem is the main goal,” Tadesse told Shega. The first phase of the project entailed a comprehensive study of the startup ecosystem in Ethiopia and profiled nearly 300 companies and 80 stakeholders. Under the second phase, there are plans to thoroughly review policies and legislation drafted for the whole startup ecosystem. “Intensive evaluation of the startup act is also part of the plan,” the official says.

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Ethio Telecom, working together with Visa Inc., has launched Ethiopia's first wallet-based virtual Visa Card, as well as services to improve remittances via Visa Direct and the Telebirr Remit App. The agreement, inked by Ethio Telecom and Visa Inc., is an essential move toward expanding Ethiopia's digital banking service, according to the telco. It said the new services include the virtual Visa Card, which can be accessed through Telebirr, and Visa Direct, which enables Visa cardholders globally to send funds to Ethiopia using their Telebirr virtual card number. This service allows people and institutions to send money from over 190 countries, said Ethio Telecom. To receive funds using Visa Direct, customers must first register for the Virtual Visa service in the Telebirr SuperApp and share their 16-digit card information with the sender. The company said this development is expected to broaden Ethiopia's digital financial ecosystem by enabling online cross-border payments, including for e-commerce, and to contribute to the country's transition to a cashless societ

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UAE-based renewable energy company AMEA Power announced on Monday the signing of a Power Purchase Agreement (PPA) and Implementation Agreement (IA) with Ethiopian Electric Power for the development and operation of a 300-megawatt (MW) wind energy project in Aysha in Ethiopia's Somali Region State. The duration of the PPA, financial close and construction timelines weren't disclosed but an AMEA Power press statement said the $620 million Aysha-1 Wind Project will be the largest wind farm in the Horn of Africa when commissioned. The IA was signed with the Ministry of Finance and the Land Lease Agreement was signed with the Somali Region State Government, the statement added. This project was officially launched during COP28 in Dubai in December 2023, where a Letter of Award (LOA) was signed between the Ministry of Finance,  Ethiopian Electric Power and AMEA Power. The statement said the project is expected to generate 1,400 GWh of clean energy annually, powering more than four million households and reducing carbon emissions by more than 690,000 tonnes per year. Furthermore, during the construction and operation phases, the project is expected to create more than 1,500 direct jobs.

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Long lines have been forming at gas stations in Ethiopia’s capital, Addis Ababa, amid fuel shortages and a price spike in recent months.

But electric vehicle driver Mikial Belayneh avoids them completely.

“I no longer line up for petrol on the road,” Belayneh, an Addis resident, told CNN. A full charge of his imported Toyota bZ4X – a popular EV in the country – “is more than enough for two days.”

Belayneh, who charges his car at home, is part of rapid transition to EVs in Addis Ababa, a fast-growing city in the horn of Africa at the center of Ethiopia’s goal to hoist millions of people out of poverty.

In addition to the polluting cars and trucks rumbling along the roads, cleaner — and quieter — vehicles are joining the traffic. Electric buses, smaller 15-seat minibuses, cars and motorbikes are popping up on the streets of the capital.

There are around 100,000 EVs in Ethiopia so far.

The Ethiopian government estimates that number will more than quadruple by 2032. That’s largely because the national government took the extraordinary step earlier this year of banning the import of all gas-powered passenger vehicles — becoming the first nation in the world to do so.

It also effectively slashed the customs tax on imported cars: The tax on gas vehicles was up to 200% before they were banned, while the import tax for fully assembled EVs is just 15%, according to the country’s finance ministry.

It’s part of a government-led effort to get more EVs on the streets.

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Ethiopia’s second-biggest private commercial bank has launched a Sharia-compliant digital financial service through a modified version of Dube Ale, a buy now, pay later scheme kicked off last year. Dashen’s acting president, Tibebu Solomon, announced the new products developed in cooperation with Eaglelion System Technology at its headquarters in Addis Ababa’s financial district late Friday afternoon. While full-fledged interest-free banking got the regulatory green light in late 2019 after being limited to a window service for seven years by the central bank, its digital financial innovation has been quite limited. Dashen’s new product, dubbed Dube Ale-IFB, allows for several interest-free services and short-term financing in collaboration with merchants and traders, enabling customers to make purchases and pay later over a period of three, six, or twelve months without interest and profit markup as applicable. The maximum spending limit for DubeAle-IFB is set at birr 700,000, with payments made exclusively through the application. Bersufikad Getache, CEO of Eaglelion, revealed that the Dube Ale conventional service has reached above 430K users, while the interest-free service has already gained over 44K registrations and signed up 17,000 merchants. “Only sharia-compliant products are allowed in the new service,” he noted.

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Over the last six months, both airlines and individual countries themselves have been responding to an increased traveler interest in Africa. United Airlines (UAL) and Delta (DAL) recently launched a spate of new flights to countries such as Ghana, South Africa and Nigeria from U.S. East Coast cities, while Kenya took the unusual step of formally getting rid of tourist visas to make it easier for visitors with any passport to come to the country for a short stay. In April, Norse Atlantic Airways (NRSAF) also announced the world's first low-cost flight to Africa from another continent — a 5,188-mile route between London and Cape Town for a starting price of $620 in each direction instead of the upwards of $1,000 charged by British Airways and South African Airways. "One of the biggest markets in Africa with the biggest untapped potential is Nigeria," Airbus (EADSF) Airline Marketing Director Joep Ellers said earlier this year at the IATA Wings of Change Focus Africa conference in Johannesburg. "It is the most populous country and has one of the highest GDP, depending on who you talk to, so there is definitely a huge demand in Nigeria."

Ethiopia, other African countries change visa rules for short-term visitors

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The state-owned Commercial Bank of Ethiopia (CBE) has announced a pending service charge adjustment for its international business banking services two weeks after the country shifted to a floating exchange regime. CBE released a statement on its Facebook page last night indicating an imminent price shift on its service charges. The Bank whose assets constituted almost half (49.5 percent and 48.7 percent, respectively) of the whole banking sector at the end of June 2023, according to the National Bank of Ethiopia, offers an array of international trade services. Alsen Assefa, communication director at Ethiopia’s largest bank, refrained from stating when the exact date of the changes would be and referred Shega to the public statement. “We will announce the details with all media in attendance,” he told Shega. Nonetheless, CBE currently offers a wide range of international trade services, including documentary credit, or L/C, which is utilized by most importers. The bank provides a written guarantee to a seller, at the request or instruction of the buyer, to pay or accept and pay a bill of exchange (draft) drawn by the seller. This is for a specified amount within a set time limit and against the required documents. The Bank also offers documentary collection services, where it handles the seller’s commercial documents, with or without financial documents, based on the seller’s instructions.

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Addis Ababa, August 12/2024 (ENA) Iran's ambassador to Ethiopia, Ali Akbar, said that efforts will be made for Iranian investors to invest in industrial parks in the fields of agro processing and vehicle manufacturing and assembly. Industrial Parks Development Corporation (IPDC) CEO, Fisseha Yitagesu received the ambassador at his office and had a discussion. During the discussion, the two officials exchanged ideas on ways to strengthen their long-term relationship through investment. Fisseha emphasized that the BRICS membership of both countries will serve as the foundation for their investment relationship. He confirmed Iran's interest in joining IPDC's efforts to attract global investment and diversify investors in its investment centers. The CEO additionally mentioned that other initial tasks should be done together, including the preparation of the Ethio-Iran Investment Forum.

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Ethiopia’s securities exchange is set to receive a major technological upgrade, having signed two landmark agreements for an Electronic Trading Platform (ETP) and a Broker Back Office and Order Management System (BBOMS). These agreements with Infotech Private Limited, announced today, August 13, 2024, represent a pivotal step in establishing Ethiopia’s inaugural exchange, which is expected to launch in the coming months. Hassan Javid, General Manager of Marketing at Infotech, expressed his confidence that the platform will be ready for the upcoming exchange. “We have a proven track record of delivering the platform on time, as evidenced by our successful launches in over 18 markets across the region,” he told Shega via email. Infotech Private Limited boasts extensive global experience, having digitized stock exchanges in Rwanda, Malawi, and Ghana, as well as the Capital Markets Authority of Kenya, among others. The company has also played a crucial role in providing post-trade infrastructure in various markets. “We have a solid African footprint,” Javid emphasized. The Electronic Trading Platform will provide a trading environment that supports real-time transactions. This platform aims to ensure market transparency, improve liquidity, and offer investors, both local and international, a seamless and secure trading experience.

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A local startup, born out of the frustrations of legal professionals, is aiming to change a largely paper-based industry with an integrated digital solution. Nearly a year old, Five Square Software has launched a digital legal library and case management system designed to streamline access to legal documents and tools scattered across a bloated service sector. Yeshiwas Eyasu, founder and CEO of the company behind Ethiopian Legal Insight, anticipates that the country’s more than 5,000 attorneys will soon be registered on the platform. Over the past three decades, the House of People’s Representatives has ratified over 1,340 proclamations, the Council of Ministers has approved around 1,000 regulations, and individual authorities across each Regional State have implemented tens of thousands of directives. A lawyer himself, with a legal career that includes a tenure as a judge, Yeshiwas has firsthand experience with the challenges of obtaining legal documents and managing court proceedings. “Tens of thousands of documents stretching back decades are randomly distributed across the country,” Yeshiwas told Shega.

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The Netherlands’ Sifan Hassan claimed her third medal of the Paris Olympics by winning gold in the women’s marathon with an Olympic record time of 2:22:55. Ethiopia’s Tigist Assefa took silver, finishing three seconds behind, while Kenya’s Hellen Obiri secured bronze. After grueling 13% climbs and muscle-pounding descents in the summer heat, Tigist and Sifan were side by side. Tigist, the 27-year-old marathon star who set a world record in Berlin last year, had been training 160 to 200 km per week for this Olympic title. With just 300 meters remaining, the race was still undecided. The Ethiopian-born runner who competes for the Netherlands, true to her signature tactic, lingered behind the leaders for most of the race before unleashing a powerful late-race kick that will be remembered as one of the sport’s finest. Ethiopia’s Amane Beriso Shankule, who won the World Championships marathon in Budapest in August 2023, finished fifth. Another of her teammates, Alemu Megertu, who finished fourth at the London Marathon, abandoned the race after 25 kilometers. Tigist Assefa began her athletic career as a middle-distance runner, earning bronze in the 800 meters and silver in the 4×400-meter relay at the 2013 African Junior Championships in Mauritius. She represented Ethiopia at the 2016 Rio Olympics but did not advance past the first round. After 2016, Tigist Assefa never raced on the track again. An ongoing Achilles tendon injury, which made training in spike shoes unbearable, led Tigist Assefa to switch to road racing. Despite medical experts advising her that she might never run again, her support team encouraged her to focus on road racing.

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Ethiopia has signed an agreement for the design of a new four-runway airport that will be Africa's biggest when construction is completed in 2029, the head of state-owned Ethiopian Airlines said on Friday. Located near the town of Bishoftu, around 45km from the capital Addis Ababa, the airport will have capacity to handle 100-million passengers a year and provide parking for 270 aircraft, Ethiopian Airlines' CEO Mesfin Tasew told a news conference. Dubai-based engineering and consulting firm Sidara will design the airport, the company's director of operations Tariq Al Qanni said. Plans to build the airport were first announced in 2018. Mesfin said Bole Addis Ababa International Airport, the current main hub for Africa's biggest airline, will soon reach its capacity of serving 25-million passengers per year. "It is a five-year project [that] will be finalised in 2029. It will be the biggest in Africa," Mesfin said. "Phase 1 alone will cost at least $6bn [R109.81bn] ... The money will come through loans and there are already companies that already showed interest." Ethiopian Airlines carried 17-million passengers in the 2023/2024 financial year, and expects to carry 20-million passengers in the financial year that started in July.

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Ethiopian runner Tamirat Tola won the men’s marathon at the Paris Olympics on Saturday to end Kenya’s dominance of the race. Tola finished in an Olympic record time of 2 hours, 6 minutes and 26 seconds, with Belgium’s Bashir Abdi finishing 21 seconds behind and Benson Kipruto taking bronze for Kenya, 34 seconds back. The 32-year-old Tola looked back as he neared the line, but he was well clear and had time to soak up the applause. Two weeks ago, he entered the Olympic marathon as a substitute for injured teammate Sisay Lemma. “I was the reserve in the Ethiopian team, but when Sisay had injuries then I had a chance,” Tola said. “I was fully prepared and knew I could fulfil my dream. I am very proud, very happy.” It was Tola’s second Olympic medal, with the other coming in the 10,000 meters at the 2016 Rio Games. “After I came from track I achieved a lot in marathon,” said Tola, who broke a 12-year course record when he won last year’s New York marathon.

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Brook Taye (PhD), who has served as the Director General of the Ethiopian Capital Market Authority for the past two years, is departing to assume the role of CEO at Ethiopian Investment Holdings (EIH), the country’s sovereign wealth fund. Brook has become the public face of the pre-nascent capital market as he leaves following an exemplary two-year stay. Brook’s tenure entailed spearheading the critical legal groundwork through a series of directives that paved the way for the establishment of a securities exchange, a strong supervisory framework for market participants, intensive public engagement to introduce the idea of financial markets to Ethiopia and much more. He informed Shega about the transition as he aims to steer the EIH, which holds around 30 of the country’s largest state-owned enterprises. He will steer the Fund, which is estimated to have over 150 billion dollars under management. The former senior advisor at the Finance Ministry, investment manager at A&A Capital, and regulatory analyst & economist at Windel’s Market Lane Mittendorf LLP. Brook leaves a legacy of integrity, hard work, and penetrating acumen at the Authority. He has an extensive educational background, which includes a host of degrees in law and economics, culminating in a doctorate from the Ecole Polytechnic in France.

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Dashen Bank has launched a traveler’s club card, which allows for credit purchases of plane tickets and up to a 5pc discount on services for hotels, resorts, and affiliated market centers. The Bank made the announcement today at its headquarters in Addis Ababa’s financial district. As long as customers open a traveler’s club account that ranges from 500,000 birr to 2.5 million, they can access the preferential flight services in memberships ranging from regular to Platinum. The Bank also availed another card dubbed ‘shoppers club’ which allows repeat customers to access discounts on their purchases with accounts opened for as little as 50,000 Br. A 10 percent interest rate is paid on the first deposits placed in a blocked account to warrant membership status, according to the statement by the Bank. Dashen Bank and the Ethiopian Airlines Group had jointly announced the innovative service package dubbed ‘Fly Now Pay Later’ back in December. Discounts are expected to garner interest from frequent flyers following the recent hike in international plane tickets after Ethiopia floated its currency last week.

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The inaugural special foreign currency auction by the National Bank of Ethiopia (NBE) attracted 27 of the 31 commercial banks in the country with successful bids of 107.9 birr (weighted average) against the dollar. Tomorrow’s indicative exchange rate, a non-mandatory figure placed on the central website will be the reflective amount according to NBE’s statement. Central bank governor Mamo Mihretu relayed his sense of joy in the early success in narrowing the gaps between the official and parallel exchange rates which are around 116 birr against the dollar. “This is precisely what our macroeconomic reforms aimed to achieve,” the governor said. He referred to how a significant portion of the foreign currency transaction could move to the banking system helping both exporters with their earnings and businesses with access. Mamo also suggested that a growing number of banks have been making an increasing level of foreign currency available for their customers by approving past requests and accepting new ones. The Birr has slid against the dollar by nearly 90pc in the week and a half since the seismic transformation that overhauled the country’s currency regime towards market-determined rates.

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In a major economic move, the National Bank of Ethiopia has shifted from a decades-long, fixed exchange rate to a market-based foreign exchange rate. This reform aims to restore market balance and stability, ushering in a new era for Ethiopia’s financial environment. While the change has sparked debate among economists and business leaders, with public discussions on social media, the real estate sector has not received much attention. The sector may face higher costs due to currency volatility, increasing construction material prices and development costs.This article will explore these impacts and the broad implications for Ethiopia’s real estate market.

Real estate in Ethiopia is increasingly attractive for investors seeking to shield their assets from inflation. Recent years have seen significant changes due to economic reforms, a rising middle class, and urbanization. The government has introduced various policies to boost foreign investment, streamline property transactions, and simplify registration, aiming to enhance investor confidence and reduce bureaucratic obstacles. Despite these efforts, challenges remain, such as the 10% investment for banks in real estate and the 14% credit cap imposed by the NBE last year, which has unintendedly impacted bank lending. Additionally, the recent shift to a market-based foreign exchange rate and the near 100% devaluation of the birr present both new challenges and opportunities for the sector.

“The shift to a market-based forex rate presents both pros and cons,” said an anonymous real estate developer. “On the positive side, we can now issue our own Letters of Credit (LC) and purchase foreign currency at the official rate and retain, compared to the previous reliance on exporters’ LCs. However, a significant downside is the rapid increase in local market prices; for instance, steel prices have surged from 130 ETB to 180 ETB in just a week.” He added that this new foex policy exacerbates the impact of the existing 14% credit cap, potentially affecting demand in the real estate sector.

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Ethiopia’s Immigration and Citizenship Service (ICS) has updated its passport issuance fees. The cost for a new passport has risen to 5,000 birr, with an expedited service available for 25,000 birr, which ensures delivery within two days. ICS announced that these revised fees will take effect starting tomorrow, August 7, 2024. This fee adjustment follows the Council of Ministers’ approval of the service fee amendment. Under the new structure, the fees are set as follows: 5,000 birr for a new passport or renewal, 25,000 birr for urgent delivery within two days, and 20,000 birr for delivery within five days. Other services may cost up to 40,000 birr, while replacing a lost passport will cost 13,000 birr. The Immigration and Citizenship Service has often been a source of frustration for both locals and foreigners, with many Ethiopians having to postpone or cancel travel plans due to delays in passport issuance.  

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Ethiopian athlete Tsige Duguma has made history by winning a bronze medal in the women’s 800 meters at the Paris 2024 Olympics. This achievement marks Ethiopia’s first-ever Olympic medal in this distance, a notable addition to the nation’s storied history in middle and long-distance running events.

Duguma, born in 2001, demonstrated her exceptional talent and determination by clocking a personal best time in the finals. Her performance not only earned her a spot on the podium but also highlighted Ethiopia’s growing presence in the 800 meters, a distance typically dominated by athletes from other countries.

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A year-old startup is entering the bustling construction sector with an e-commerce platform that aims to resolve systemic problems in the procurement and sale of construction materials and inputs. Founded by Kidist Nigiru, an engineer, “Mismar” (which roughly translates to “nails” in the Amharic language) sells everything from nails to ceramics. The platform, which was launched just three months ago, offers a simple visual interface that allows prospective buyers to connect with registered vendors. It also provides a comprehensive data set on the costs of construction materials. “We already have around 390 products available from around 40 registered suppliers,” said Kidist. The CEO hopes to relieve the unnecessary hassles faced by participants in the construction industry through a straightforward transaction tool. “What used to take weeks can be completed instantly,” she added. A graduate of Behiang University, one of the top public universities in Beijing, China, Kidist targets mass adoption of the service by procurement personnel in both the private and public sectors in the long run. She referred to the secure access to information for prospective buyers as an instrumental element in establishing Mismar as a key industry player.

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Ethiopia underwent a seismic financial transformation over the past week, floating the Birr after nearly five decades of captivity. The monetary upheaval cosigned by multinational financiers like the International Monetary Fund (IMF) and the World Bank resulted in a week of panic as the Birr plunged by nearly 80pc from around 57 birr against the dollar to above 100 in some commercial banks. Every player across the economic ladder, from the street vendor retailing paltry pieces of imported commodities to the stewards of the banking industry located in the capital’s financial district, is adjusting to the new norm. Finance Minister Ahmed Shide assured parliamentarians gathered for an urgent meeting to approve a 500-million-dollar credit line late Wednesday that the short-term spike in prices would mean little compared to the benefits of macroeconomic stability in the long run. “A chaotic response early on is expected,” he said. A formidable financial buffer buttressed by what is reportedly around 20 billion dollars over four years from a mix of credit line grants extended by the IMF, World Bank, and International Finance Corporation, among others, looks to safeguard Ethiopians from the harshest of blows arising from the fallout. Prime Minister Abiy Ahmed (PhD) pointed out that Ethiopia’s imports have primarily relied on parallel foreign currency markets, characterizing the floating of the Birr as a unification of markets more than anything else.

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A landmark production technique developed by the Bio and Emerging Institute looks to cut tire manufacturing costs by half through replacing essential imported inputs with local alternatives. The state-owned enterprise has developed a method to replace nanosilica, an inorganic compound with wide-scope applications in industrial production, with derivatives from local acid manufacturers. While the compound is commonly applied in the medical industry as a drug carrier and as a source of bioavailable silicon in agriculture, its use as a polymer filler has made it a critical input in the tire production industry. Wondimagegn Mamo (PhD), Head of the Nanotechnology Directorate at the Institute, expects intense utilization of Ethiopia’s silica sand deposits to accelerate the growth of the tire manufacturing industry. He also noted the potential source from the outputs of local sulfate factories as an undervalued source of nanosilica deposits. “We are at an ideal point to begin mass production of the material,” he told Shega. The director pointed out the competitive advantages of locally producing nanosilca through its significant cost-cutting benefits. It is used in concentrations ranging from 5pc to 20 of the total weight of the rubber compound with source materials like silica and silicon tetrachloride.

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Ethiopia has removed import bans on more than 35 items but maintained its ban on imported fuel-powered cars, its Ministry of Finance said on Tuesday.

• In a letter signed by the Finance Minister, Ahmed Shide, the Ethiopian government has determined that 37 items that were on the list of banned imports would be traded freely, but imports of fuel-powered cars remained banned.
• Although no explicit reason was given, the decision is probably in line with the country’s determination to transition to electric or hybrid vehicles – a goal that the government thinks it can achieve by cutting off the supply of fuel-powered cars.
• Ethiopia became the first country in the world to ban fuel-powered cars, as one of its strategies to reduce reliance on fuel imports by 50%.

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The National Bank of Ethiopia on Wednesday announced that it will be buying gold from suppliers and producers at a rate of the International Market Pricing as of July 29, 2024. The Bank stated that the change is related to the recent policy change to make Ethiopian currency exchange rate based on the “market rate.” From what the bank said, it appears that payment for it will be in  Ethiopian currency. Suppliers and gold producers will have to get the daily market exchange rate provided by the bank and be paid for it based on that, the bank added. Suppliers will be getting an equivalent of the Gold Price in the International Market converted to Ethiopian Birr. Within three days of announcing the devaluation of the Ethiopian birr, the exchange rate in state-owned banks has changed three times. The first day it started to buy $US 1 for 75 Ethiopian birr. The next day it started to increase to 77 Ethiopian birr and on Wednesday the Commercial Bank of Ethiopia bought one U.S. dollar for over 81 Ethiopian Birr. It was this week that the Ethiopian government announced an unprecedented devaluation of the Ethiopian currency after nearly a year-long back-and-forth conversation with the International Monetary Fund and the World Bank officials.

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We+, a new ride-hailing platform, has entered the Addis Ababa market, offering its drivers a retirement fund. The platform aims to help 25,000 drivers save up by allocating a percentage of its commission for their retirement and other needs, such as medical expenses. “Our payment system deducts 10% from each trip, with 4% of that amount saved for our drivers,” says Kirubel Tarekegn, founder and CEO of We+. “Our goal is to create a better tomorrow by saving together.” The platform’s 10% total commission is on par with the industry standard. In addition, it has a flag-down fee of 105 birr and a per-kilometer fee of 18 birr. The deducted 4% is divided into two parts: half goes to investment, and the other half is saved for drivers to withdraw whenever needed. “Drivers can save up to 20,000 birr per year with this method,” says Kirubel. “We advise our drivers not to withdraw the money immediately. When the investment fund reaches a certain amount, we will establish an investment firm where our drivers will be shareholders. However, as per our agreement, they are welcome to withdraw anytime they want.”

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Washington, July 30, 2024 — The World Bank’s Board of Executive Directors has approved the Ethiopia First Sustainable and Inclusive Growth Development Policy Operation, a substantial financial initiative aimed at bolstering Ethiopia’s economic reform agenda. This operation, consisting of $1 billion in grants and $500 million in concessional credit from the International Development Association (IDA), is poised to support home-grown reforms that encourage a more inclusive and resilient economy. The operation is designed to enhance the private sector’s role in the economy, address macroeconomic imbalances, and expand trade opportunities. It also aims to improve fiscal transparency and public spending efficiency, ensuring a more robust and transparent economic framework. Notably, the operation will also focus on protecting poor and vulnerable households from the adverse effects of economic adjustments, providing a critical safety net during periods of transition. Maryam Salim, World Bank Country Director for Eritrea, Ethiopia, South Sudan, and Sudan, emphasized the significance of the reforms supported by this initiative: “Successful implementation of these reforms can help the country reach its full potential so more Ethiopians can thrive. Importantly, there is a strong emphasis on protecting poor and vulnerable people from the costs of economic adjustment and expanding opportunities for them to participate in the economy.” The policy operation is part of a broader engagement by the World Bank in Ethiopia, which includes investments in various sectors such as health, education, social protection, and infrastructure development. This includes support for sustainable land and forest management, renewable energy expansion, and resilience building against climate risks. The initiative is complemented by other World Bank engagements, including the International Finance Corporation’s $320 million investment portfolio and the Multilateral Investment Guarantee Agency’s $1.15 billion in guarantees.

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Ethiopia has secured a $3.4 billion loan from the IMF after floating its currency as part of the reforms to ease the country’s foreign currency shortages and attract foreign investments. “The four-year financing package will support the authorities’ Homegrown Economic Reform (HGER) Agenda to address macroeconomic imbalances, restore external debt sustainability, and lay the foundations for higher, inclusive, and private sector-led growth,” IMF said in a statement. The National Bank of Ethiopia has maintained a managed FX rate system, causing chronic dollar shortages that have affected importers and foreign investors repatriating profits. On Monday, the birr slumped 30% to 74.73 per dollar after the central bank removed restrictions on the FX market and committed that the regulator would only make “limited interventions.” Conditions attached to the IMF financing include adopting an interest-based monetary policy to maintain low inflation and fiscal reforms in government to boost revenue collections. IMF’s approval follows months of negotiations with Prime Minister Abiy Ahmed’s administration which wants to borrow more than $10 billion from the IMF and World Bank to help the country manage its growing debt. The East African nation defaulted on a $33 million international bond payment in December 2023.

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In a momentous departure from its erstwhile tightly controlled policies, the National Bank of Ethiopia (NBE) has granted permission to commercial banks to freely negotiate foreign currency exchange rates with clients and amongst themselves.

They are granted, effective today and alongside exporters the liberty to hold onto their foreign exchange earnings, which is a departure from the prior obligation to surrender forex to the central bank. Non-bank foreign exchange bureaus have been given the nod to conduct business, armed with the capability to trade foreign currency cash notes at market rates.

A part of an extensive overhaul of the country's foreign exchange regime by the Central bank Governor Mamo Mehiretu, the NBE has committed to limiting its interventions in the forex market, primarily to maintain order. A shift to a market-based determination of exchange rates was announced by Governor Mamo, marking an epoch-making crucial from the historical inflexible policies. Yet, capital account outflows will continue to be under control.

Exporters have now been permitted to hold onto 50pc of their foreign exchange proceeds, a noticeable increase from the earlier 40pc. The waiting list system for banks' allocation of forex has been done away with, making it easier for importers to gain access. Ethiopian residents can now revel in the simplified rules on foreign currency accounts, which permit them to open accounts based on incomes in forex, inclusive of remittances and salaries. They can open these accounts for disbursements related to foreign transactions. The ceiling on interest rates for foreign loans to private entities has also been removed, a step in the direction of attracting more investment, according to the Governor.

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Right in front of the fuel depot at Addis Ababa Bole International Airport lies a hub crowded with electric vehicles (EVs). The area resembles a showcase for the Volkswagen series, not to mention the Mercedes EQ, BYD Seagull, and Toyota bz4x parked in the premise. On a foggy day two weeks ago, Birhanu brought his gray Volkswagen Intelligent Design (ID) 6 to this place. He is hoping to find a solution to the problem he is facing with his car. “It keeps giving me alerts with red lights,” he says. Birhanu bought his ID6 for 4.2 million birr, expecting to cut fuel costs. “It helped me save a fortune,” says Birhanu. According to Birhanu, who is a contractor, servicing an EV is a little expensive, but considering the savings, he believes it’s a fair deal. “I am not spending money on oil changes or fuel, so it’s not that bad to pay a little extra compared to fuel cars,” he smiles. The place he went was Gerar EV Garage, one of the few emerging exclusive EV garages in the capital. Despite the garage catching up with the times, Gerar has been in business since 1979. “It used to be our family’s business. Currently, my brother and I run it,” Zelalem Bayu, CEO of Girar EV Garage, told Shega.

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Wegagen Bank, in partnership with Kifiya Financial Technology, has launched a new digital loan service, ‘Efoyta.’ Powered by Kifiya’s Qena, an intelligent financial services platform, ‘Efoyta’ aims to address the working capital needs of MSMEs. The announcement was made on July 22, 2024, during a formal launch event held at the Planet Hotel in Mekelle, Tigray region, where Wegagen has a strong presence and plans to deploy the majority of its allocated digital lending capital. The Efoyta digital loan service will offer loans ranging from 5,000 to 50,000 birr. Currently, two types of loans are active on the app. Efoyta Wase offers loan amounts from 500 to 15,000 birr, with a repayment period of up to one month. A 2% access fee and a daily interest fee of 0.95% are attached to the terms. These loans are open to every Wegagen customer. Meanwhile, Efoyta Melegna targets women informal sector workers and offers amounts up to 5,000 birr. It has a duration of one month with no access fee. This loan type has an interest rate of 3.75%. While Shega was unable to receive a formal response, it has learned that the high interest rates for Efoyta Wase, which could reach up to 28% per month are due to the bank just entering the digital lending scene and that these rates could change over time.

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Safaricom shareholders have approved a final dividend of KSh0.65 per share, amounting to KSh26.04 billion for the financial year ended 31st March 2024.

• This follows an interim dividend of KSh0.55 per share, totaling KSh22.04 billion, that was paid in March 2024 bringing the total dividend payout for the year to KSh1.20 per share, representing a total of KSh48.08 billion.
• The telco maintained a KSh1.20 per share dividend in net profit for the full fiscal year 2024, having recorded a mild 1.2% jump in profit after tax to shareholders in the period.
• The strong performance was buoyed by a surge in service revenue in the Kenyan unit, particularly MPESA. However, the Ethiopian subsidiary dragged the overall performance with the board maintaining optimism of a break even scenario.

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Ethiopian Airlines has officially taken over the management of Gorgora Resort, which will now operate under the Ethiopian Skylight Hotel brand. This significant development was announced during a formal agreement ceremony held at the Ethiopian Skylight Hotel today.

Ceremony Highlights and Attendees

The event saw the presence of key dignitaries, including Arega Kebede, the President of the Amhara Region, along with other senior officials from the region. Ethiopian Airlines was represented by its Chief Business Officer, Ato Lema Yadecha, alongside other company executives.

Strategic Vision for Hospitality and Tourism

The decision to entrust the management of Gorgora Resort to Ethiopian Airlines is part of a broader strategy to enhance the hospitality and tourism sectors within the region. By leveraging the expertise and resources of Ethiopian Airlines, the resort is expected to see improvements in service quality, operational efficiency, and overall guest experience. This move aligns with Ethiopian Airlines’ vision to diversify its portfolio and strengthen its presence in the hospitality industry.

Expansion of Resort Management Portfolio

In addition to Gorgora Resort, Ethiopian Airlines has recently taken on the management of several other prestigious properties. These include the Halala Kela Resort, Wonchi Eco Lodge, and Chobera Churcura Elephant Dana Lodge, all of which were developed under the Gebeta Le Hager Project. This project aims to promote tourism and conservation efforts in Ethiopia by creating high-standard, eco-friendly resorts that showcase the country’s natural beauty and cultural heritage.

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Ethiopia has launched today a National Circular Economy Roadmap to unleash the country’s full potential of the circular economy through creating an enabling environment. The circular economy is a model of production and consumption, which involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible. Circular Economy Roadmaps are a strategic tool for promoting comprehensive change in developing countries towards a circular economy through concrete and practical solutions tailored to the countries’ unique context that allow them to transition from a linear to a circular economic model. They contain a vision as well as goals and tangible action points that support them in adopting and implementing circular economy solutions. The Environmental Authority of Ethiopia has today launched Ethiopia's Circular Economy Roadmap in collaboration with African Development Bank, Embassy of Finland, Africa Circular Economy Facility and African Circular Economy Alliance in Addis Ababa. The kickoff of the project in Ethiopia aligns the country with Benin, Cameroon, Chad, and Uganda in adopting Circular Economy principles to address developmental challenges. National Circular Economy Roadmap (NCER) project will be financed by the African Development Bank and Embassy of Finland in Ethiopia with technical support by African Circular Economy Alliance (ACEA).

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Cloud 251, a rising Ethiopian cloud powerhouse, has soared into the market perfectly timed with the implementation of Ethiopia's new Personal Data Protection Law. This launch breaks new ground by offering secure, Amazon Web Services (AWS)-caliber cloud infrastructure located entirely within Ethiopia's borders. Gone are the complexities of international transactions. Through their user-friendly website, Cloud251.com, businesses can now browse, pay securely in Ethiopian Birr using the EthSwitch gateway, and access their virtual machine – all in one place. This one-stop shop is a game-changer, particularly for organizations like banks that traditionally face high costs for data center upkeep. Cloud 251 offers a secure and cost-effective alternative. But Cloud 251 isn’t flying solo. They’ve partnered with Raxio Group, Africa’s leading data center operator, to accelerate digital transformation across the continent. This strategic alliance has a particular focus on expanding cloud solutions for the Ethiopian and regional markets. Raxio’s strong presence in Ethiopia, coupled with their renowned world-class facilities and commitment to sustainability, makes them the perfect partner. This collaboration forms a powerful ecosystem that fosters digital change in Africa. The alliance combines Raxio’s reliable carrier-neutral data centers with Cloud 251’s cutting-edge cloud services, translating to stable infrastructure and scalable computing resources for organizations. “Cloud 251 leverages Raxio’s top-tier data centers to deliver a comprehensive range of cloud products,” says Tigest Damtie, CEO of Cloud 251. “We also provide expert cybersecurity consultations, empowering businesses to build strong security plans and outsource management.”

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eQub, a fintech startup aiming to digitize equb (peer-to-peer saving groups), and HuluCares, a startup focused on providing community-based Idir insurance, have been selected for the inaugural Timbuktoo Fintech Startup Accelerator Program. These two startups were chosen from among 817 applicants across Africa. A total of 42 startups from 31 countries were selected to participate in the program in Lagos, Nigeria. “We plan on leveraging this opportunity by engaging with African stakeholders, investors, fellow startups, and partners to scale our company to the next level,” Alexander Hizkias, co-founder and CEO of eQub, told Shega. Inspired by the city of Timbuktu in Mali, the Timbuktoo Initiative was launched in January 2024 as an ambitious plan to mobilize and invest one billion dollars to nurture entrepreneurial ventures across Africa. The Timbuktoo Fintech Hub in Lagos, Nigeria, serves as the first of 10 planned technology centers across the continent, with future hubs slated for Kigali, Cairo, Cape Town, Accra, Casablanca, Dakar, and Nairobi. In April, it was announced that Addis Ababa is inching closer to becoming the ninth hub of this ambitious pan-African initiative. The selected startups will participate in a four-week immersive bootcamp, receiving product refinement and scaling support. This intensive program includes pitching sessions with Africa’s leading investors, masterclasses with fintech experts, and fireside chats with industry executives. The bootcamp will be conducted in a hybrid format, offering continuous virtual support alongside a two-week physical residency in Lagos, Nigeria.

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Ethiopia has signed a Host Country Agreement with the UN to host the first preparatory session for the fourth International Conference on Financing for Development which will be held in Addis Ababa from July 22-26, 2024. According to Foreign Affairs Ministry, the agreement was signed in New York. Ambassador Tesfaye Yilma, Permanent Representative of Ethiopia to the United Nations while Li Junhua, Under-Secretary-General for Economic and Social Affairs inked the agreement representing the UN. During the signing ceremony, Ambassador Tesfaye underlined that hosting the conference is an expression of Ethiopia's firm commitment to a more effective UN development system and a reinvigorated multilateralism. The Under-Secretary-General on his part appreciated Ethiopia's commitment and role in hosting the UN preparatory Conference on Financing for Development. Both underscored the importance of the conference in setting the right tone to galvanize the international community to mobilize finance for the implementation of the 2030 Agenda and for Sustainable Development.

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In a bustling coffee processing plant filled with the aroma of top-notch Arabica coffee in Addis Ababa, the Ethiopian capital, a group of women were busy sorting out defective green coffee beans to ensure that only the finest-quality beans move on to the roasting and packaging stages. One of these dedicated women can sort defects from up to 150 kg of raw coffee beans each day at the Hadero coffee processing plant. The sorted green coffee beans would then pass through the inspections, roasting, grinding, and packaging stages before they are ready for buyers on the shelves of supermarkets and coffee shops in Ethiopia and around the world. Named after a small coffee-producing town in southern Ethiopia, Hadero is among the rapidly growing list of coffee processing businesses in Ethiopia that are specialized in coffee sector value addition, as part of a broader push to transform the country's coffee industry. "We are a homegrown company, and we aspire to increase Ethiopia's earnings from the export of coffee through value addition and proper marketing," said Mubarek Ahmed, the company's director of business development. Ethiopia stands as Africa's largest producer of Arabica coffee, with coffee production serving as a linchpin of the country's agriculture-led economy. There are about 5 million smallholder coffee growers in Ethiopia, and more than 25 million people in the country are involved in coffee production, processing, and sales for their livelihoods, according to official figures.

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Khaled Mohamed Balama, Governor of the Central Bank of the UAE (CBUAE), and Mamo E. Mihretu, Governor of the National Bank of Ethiopia (NBE), have signed a bilateral currency swap agreement for the UAE Dirham and Ethiopian Birr. The two parties also entered into two Memoranda of Understanding (MoU) to establish a framework for the use of local currencies in settling cross-border transactions and for linking their payment and messaging systems. The agreement allows the CBUAE and the NBE to swap local currencies with a nominal value of up to AED 3 billion and ETB 46 billion. This supports the financial and commercial cooperation between the UAE and Ethiopia through the provision of liquidity in local currencies to financial markets, enabling more effective and efficient settlement of cross-border transactions. Under the first MoU, the CBUAE and the NBE will consolidate efforts to promote the use of their respective currencies in settling transactions between the UAE and Ethiopia. The MoU covers several measures that will facilitate the use of the two countries’ local currencies in the settlement of commercial transactions. It also encourages financial and banking cooperation through knowledge-sharing, ultimately supporting the development of their respective financial markets whilst facilitating bilateral trade and bolstering direct investment.

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Ethiopia has made significant strides in space exploration, with over 300 students enrolling in the Path to Space program, designed to propel the nation towards success in this frontier. Over the past five months, the inaugural Pathways to Space initiative has trained 312 students in processes ranging from assembling small satellites to launching them in the future. The program, a collaborative effort involving Ethiopia, Nigeria, and Tanzania, is spearheaded by the Space Science and Geospatial Institute of Ethiopia (SSGI), the Boeing Company, and the Future African Space Explorers STEM Academy (FASESA). This initiative not only provided students with hands-on experience in testing their designs in real-world scenarios but also sparked their interest in space exploration, laying a foundation for their future education and careers in this exciting field.

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Tourism development projects being implemented across Ethiopia spearheaded by Prime Minister Abiy Ahmed’s initiatives have been able to showcase the country’s hidden attractions, Tourism Minister Ambassador Nasise Chali remarked. Prime Minister Abiy Ahmed has inaugurated the Gorgora Eco Resort, developed under the “Dine for Nation” initiative in Amhara region of Ethiopia, on Saturday. Tourism Minister Ambassador Nasise Chali said the ongoing tourism development initiatives including the Gorgora Eco Resort are key to enhance the tourism sector in Ethiopia and elevate the country’s competitiveness in the industry. Citing the commendable accomplishments recorded in the Gorgora eco resort, she underlined that the projects' highest quality infrastructures demonstrate the ability of progressing in development. Gorgora eco resort project has become a state of the art tourism destination by imparting wisdom in the existing beautiful nature, the minister indicated. Ambassador Nasise invited tourists both from abroad and within Ethiopia to visit this mesmerizing natural beauty.

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Seqela, a digital peer-to-peer saving platform, has launched its service in Tigray. Founded by Samrawit Gebre-Egziabher, Seqela’s equb platform introduces a new feature to the consumer fintech sector, allowing equb payouts to be converted into in-kind purchases. The in-kind equb groups offer awards like furniture, TV, fridge, and laptop household items. Merchants act as the admin equbs who collect the payments. There is a down payment requirement of 20 percent to join these groups. While monthly payments are in place, winners must pay an additional 30 percent when they take the item. Designed by Seqela Technologies, formerly HK Automation, the platform offers both public and private equbs. “Seqela launched its service in Tigray due to the longstanding reliance on equbs for savings,” said Samrawit. She added that the service aims to empower the war-damaged economy, restore stability, and integrate the population into the technology ecosystem. She explained that it took over six months to develop the platform. Seqela currently has over 100 private equbs and more than ten public equbs ready for users.

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Coffee exports brought Ethiopia $1.43 billion in revenue during the just-concluded Ethiopian fiscal year, the government has said. The country exported 298,500 tonnes of coffee during the 2023/24 fiscal year that ended on July 7, the Ethiopian Coffee and Tea Authority (ECTA) said in a statement on Tuesday. In June, the country exported 46,000 tonnes of coffee, generating a record $218 million in revenue, the ECTA said. In the previous fiscal year, Ethiopia earned $1.3 billion in revenue from the export of about 240,000 tonnes of coffee. ECTA data show that the volume of coffee exported in the 2023/24 fiscal year rose about 20 percent compared to the previous fiscal year. Ethiopia, regarded as the origin of Arabica coffee, is one of Africa's largest producers and exporters of the commodity. Coffee production is seen as the backbone of the country's agriculture-led economy.

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The Cooperative Bank of Oromia (Coopbank) has secured a 570 million-birr ($10 million) loan portfolio guarantee from FMO, the Dutch Entrepreneurial Development Bank, to expand its collateral-free loans to MSMEs. This initiative, targeting underserved groups such as agricultural, youth, and women-owned small entrepreneurs, was announced on July 8, 2024, and is part of the NASIRA program. Through a risk-sharing arrangement, the NASIRA guarantee covers potential credit losses resulting from MSMEs not repaying their loans. NASIRA, marking its first engagement in Ethiopia, has provided $371 million in guarantees so far. Coopbank, in partnership with Kifiya Financial Technology, launched the nation’s first uncollateralized digital lending app, Michu, in 2022. As of June 2024, Michu has disbursed 5 billion birr to over 230,000 MSMEs. Although efforts to reach officials at Coopbank and FMO before this article’s publication were unsuccessful, Shega has learned that the guarantee might be linked with Coop’s new Revenue-Based Financing (RBF) model. Coopbank, supported by the World Bank Gender Innovation Lab, Renew Capital, and Rise Addis Advisory, has been piloting this RBF model, another novel financial product in Ethiopia.  Revenue-based financing allows loan approval based on evidence of income rather than collateral. In addition, unlike conventional loans with rigid repayment structures, this new lending product offers flexibility as repayment is tied to revenue.

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Small and medium-sized enterprises (SMEs) play a major role in emerging economies, contributing significantly to national GDP and job creation.  SME development has therefore become a priority for many nations, including Ethiopia.  Unfortunately, however, access to finance has become a significant hurdle for SMEs and start-ups, particularly for those in Ethiopia where the national financial sector’s mandate and ability to support and fund innovative projects and enterprises is severely limited.

The funding gap for SMEs in Ethiopia was estimated at $6.1 Billion in 2021.  The root causes of this financing gap in Ethiopia are multifaceted, with high collateral requirements imposed by financial institutions and steep borrowing costs being among the primary challenges. These financial hurdles leave many innovative and promising small businesses struggling to secure the funds they need to sustain and grow their ventures.

The National Bank of Ethiopia's 2023 report on financial stability revealed that commercial banks held a total of Birr 1.9 trillion in loans and bonds as of June 2023. Surprisingly, 73% of these loans were concentrated among only 0.05% of borrowers, each of whom received loans exceeding 10 million Birr. As a result, a few large borrowers dominate the financial sector's lending, making it difficult for SMEs and startups to obtain loans from commercial banks.

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East Africa is one of the most vulnerable regions to climate change and food insecurity. The projected increase to the world population places increased pressure and demand for food, and land for cultivation. Sustainable and scientifically based agroforestry practices can provide a wide range of economic, sociocultural, and environmental benefits and services for future generations. Fruits that are not native to specific regions, such as the avocado, are being introduced across the globe and Africa is no exception. Six avocado cultivars were introduced in Ethiopia and their productivity is being tested. Aster Gebrekirstos et al. assessed the adaptation, survival rate, growth performances, fruit yield, and household contributions of five avocado cultivars: Ettinger, Fuerte, Hass, Nabal, and Reed in Lemo district Ethiopia. The authors took it a step further and assessed the gender differences in management practices applied by male and female farmers. The study discerned that overall, the five avocado cultivars are highly adaptable, very productive and beneficial for both local food consumption and the income generation option. Specifically, it showed that:

• Nabal, Fuerte, Ettinger, and Hass performed the best in terms of vegetative growth.
• Nabal had the highest fruit yield, fruit weight, and width, followed by Hass. Ettinger and Reed had the longest and shortest fruit length, respectively.
• Nabal was the best-selling cultivar, while Hass was mainly used for domestic consumption.
• More management practices were applied to female farmers than to male farmers.

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Ethiopia is making significant strides in boosting its tourism industry with a Visa Free for Kenya and Djibouti and Visa on Arrival Entry Policy For 120 Countries Including USA, Australia, UK and Schengen Nations.This initiative aims to position Ethiopia as a premier tourist destination in Africa, leveraging its rich cultural heritage, diverse landscapes, and historical landmarks. The visa-free policy is expected to attract a surge of international visitors, stimulating economic growth and enhancing the country’s global tourism footprint. TTW Editor in Chief Mr. Anup Kumar Keshan said: I must say that Ethiopia’s decision to allow visa-free entry for citizens of 120 countries is a game-changer for its tourism industry. This isn’t just about more people coming to see the sights; it’s also driving business travel and making Ethiopia a top spot for international meetings and events. Luxury travel is also on the rise, with more visitors seeking high-end experiences in Ethiopia’s top-tier hotels and resorts. Corporate travel is being significantly bolstered as companies find Ethiopia an attractive destination for conferences and business gatherings. What I love most is Ethiopia’s commitment to sustainable tourism. They’re not just focusing on the popular spots but also promoting lesser-known destinations, ensuring a richer and more responsible travel experience. This strategy is not only elevating Ethiopia’s global profile but also significantly contributing to its economy. It’s a win-win for everyone involved

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For several years now, promoting your brand or products on Telegram channels has been a common practice in the country. Telegram is Ethiopia’s most used messaging platform, and businesses of all sizes, from MSMEs to large corporations, leverage Telegram channels to reach their audience. Channel owners set prices (often per post) based on their channels’ average estimated viewership or subscriber count. In my experience working in digital marketing for the past four years, I’ve negotiated with numerous channel owners based on their estimated average views to run campaigns of varying success. Most channel owners base their prices on subscriber count instead of average views, which is one of the biggest problems during the negotiation stage. Yet even then, there’s no guarantee they’ll promote your content on the agreed-upon terms, and it often relies solely on their reputation, as it’s not commonplace to have a signed agreement just to promote posts on Telegram. Broadcast channels on Telegram generate one trillion views every month. Telegram, leveraging this, lets channel owners with more than 1,000 subscribers send sponsored messages right to their audience. With this tool, digital marketers and businesses can manage their ads and budgets, choose where their ads will be displayed, and monitor their performance.

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YeneHealth, a local startup focused on women’s health, has partnered with VisionFund Microfinance to integrate digital lending products into its platform. By integrating health and financial services, the digital lending product aims to increase access and affordability of essential women’s healthcare products and services Through this initiative, registered users of YeneHealth can apply for microloans. The application process includes a quick vetting procedure, followed by the presentation of loan terms and conditions for review. Kidist Tesfaye, Founder and CEO of YeneHealth, stated that the initiative specifically addresses unmet needs for essential healthcare products, particularly in the areas of water, sanitation, menstrual hygiene, and maternal health. The initiative also promotes saving for healthcare and offers non-collateralized credit options to eliminate barriers to necessary care. YeneHealth provides a range of services, including menstrual, pregnancy, and medicine tracking, a women-centered e-pharmacy, telemedicine, and culturally responsive resources and educational content. “We understand that healthcare needs can be urgent. This initiative provides microloans so women can access essential healthcare products immediately with flexible payment options. Their health is our priority, and the loans are designated solely for healthcare purchases,” Kidist emphasized.

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Culminating a three-year development effort, the Ethiopian Bio and Emerging Technology Institute in collaboration with the Ministry of Innovation and Technology and the Oromia Agricultural Research Institute, launches the nation’s first microalgae (spirulina) research and production center. Built at the Adami Tulu Agriculture Center with an investment of 8.2 million birr, Ethiopia’s new spirulina research and production facility spans 1,200 square meters and has already produced its first batch of spirulina exceeding 30 kg per month. This initial success lays the groundwork for future scaling of production, according to Firew Tafesse (PhD), senior researcher at the institute. The center, inaugurated on June 20, 2024, enables Ethiopia to produce the algae on a large scale. Spirulina sells for a high price, fetching 20,000 birr per kilogram and up to 2 million birr per quintal. “We’ve successfully produced the first pilot batch of spirulina,” he told Shega. “This will help reduce reliance on imported spirulina, a nutrient-rich product with significant market value.”

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Africa 118, a digital marketing and information service provider headquartered in Ethiopia, has secured funding from the GSMA Innovation Fund for the third time. This latest grant will be used to expand Africa 118’s gig work marketplace, Taskmoby, from the capital Addis Ababa to three additional cities: Adama, Hawassa, and Dire Dawa, according to Ezana Raswork, Founding CEO of Africa 118. These cities have a collective population of over 1.5 million people. The 2024 GSMA Innovation Fund for Accelerated Growth was launched to provide grants and technical assistance to GSMA Innovation Fund alumni. Its purpose is to help innovative organizations scale, reach a wider user base, and enhance the sustainability of their solutions. “The current funding serves as a follow-on, accelerating our expansion into new markets,” Ezana told Shega. The expansion aims to create 1,000 jobs in these three cities by the end of 2024 and an additional 10,000 jobs over the next three years. Africa 118 will also introduce two new product features: “Taskcenter,” which will enable service providers to access working tools and supplies, and “Taskcredit,” which will offer access to credit based on the service provider’s credit history. These features will provide more value to workers and increase service adoption. According to Ezana, since its establishment, Taskmoby has served over 40,000 users and created 4,000 jobs.

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The Commercial Bank of Ethiopia on Thursday introduced an adjustment to service charges. This will be effective as of Ethiopia’s new fiscal year in late July this year. The information released in connection with the changes indicates some services that used to be free will remain free while others are subject to service charges. The changes are mostly reflected in mobile banking. Withdrawals of any authorized amount will remain free. On the other hand, mobile money transfers that used to be free, will now be subject to service charges. Digital Banking account-to-account transfers between 1 birr and 10,000 birr used to be free. As of next week, the bank will start charging 3 birr. The highest fee in this category is 20 Ethiopian birr and is applicable for transfers of more than 300,000 Ethiopian birr. Mobile transfers from the account to Tele Birr and other wallets will be charging fees too. The maximum is 15 birr for a transfer of 10,000 birr and above. Transfer through “Internet Baking,” as the bank calls it, to accounts with other Banks does not seem to see major changes.

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In an attempt to capitalize on the enormous potential benefits of trade on the continent, Ethiopia is now creating its National African Continental Free Trade Area (AfCFTA) Implementation Strategy. The AfCFTA, adopted in 2018, represents a historic effort to unite 55 African Union member states with a combined GDP of nearly 3 trillion USD. This Agreement establishes a legal framework for comprehensive economic integration, aimed at creating a unified African market that fosters the free movement of goods and services, and investment facilitation ultimately strengthening Africa's trading capacity on a global scale at the time of digital age. In 2019, Ethiopia ratified the AfCFTA, demonstrating its commitment to this transformative initiative. As part of its effort in domesticating the Agreement, the country is in the process of developing its national AfCFTA implementation strategy. This strategy will identify key sectors where Ethiopia can gain a competitive advantage under the AfCFTA and integrate its economy into regional and global value chains. The strategy prioritizes inclusivity, gender sensitivity, and environmental sustainability, and is essential for enhancing Ethiopia's readiness to fully harness the benefits of the AfCFTA. The Ethiopian Ministry of Trade and Regional Integration in collaboration with the Policy Studies Institute organized national consultation forum on the Development of Ethiopia's AfCFTA implementation strategy, according to Economic Commission for Africa (ECA). A high-profile forum is set to take place in Addis Ababa on Saturday focusing on raising awareness about the AfCFTA and its implications, engaging in discussions about the roles of various stakeholders in Ethiopia's AfCFTA journey, and seeking feedback for the National AfCFTA Implementation Strategy.

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Livestock Development Institute of Ethiopia saved Birr 1.5 billion in import costs over the past 11 months by producing artificial insemination (AI) locally. This year, the Institute achieved its target of producing 2.2 million doses of AI product. The Institute's focus extends beyond AI. It identifies and registers high-yield dairy cows to enhance milk production. Livestock product exports have also generated USD 86 million in the past 11 months, achieving 70% of the targeted goal. In addition, the Institute is committed to heifer reproduction, distributing over 220 heifers to local farmers. Combining traditional and modern techniques, it is working on developing new breeds of sheep and goats. Established to improve productivity, quality, and competitiveness within the livestock sector, the Institute plays a critical role in livestock development. Its branches in Holeta and Bishoftu provide various services, including breeding services via AI, livestock feed processing, investor consultancy, and technical support in insemination, fodder production, and livestock product development.

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Cities of Hawassa and Jimma in Ethiopia are finalizing preparations to host a national Coffee Exhibitions with the goal of fostering relationships between coffee exporters and suppliers. The Ethiopian Coffee and Tea Authority is organizing the exhibitions, which will take place in Hawassa on June 28 and 29 and in Jimma on July 3 and 4. Panel discussions aimed at exchanging views on the production and quality of Ethiopia’s coffee will also be held as a part of the exhibitions. Director General of the Authority, Adugna Debela said in a press conference today that the exhibitions target at further enhancing Ethiopia’s economic benefits obtained from coffee by boosting productivity and ensure product quality. The exhibitions are expected to attract more than 300 coffee suppliers and over 100 coffee exporters, Adugna pointed out. He stated that such exhibitions are instrumental to ensuring the sustainability of revenues secured from coffee besides their contribution to promote the varieties and qualities of Ethiopia’s coffee products.

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Ethiopia’s Ambassador to Kuwait Sied Muhumed Jibril Confers with Vice President for planning of Kuwait University Professor Asad al-Rashed. The two sides held a wide-ranging discussion on the ways to strengthen the relationship between the higher educational institutions of both countries’ On the occasion, Ambassador Sied expressed gratitude for the scholarship opportunities given by the government of Kuwait to Ethiopians every year. He also explained about the presence of internationally competitive government and private higher education institutions in Ethiopia, that have been contributing many problem-solving research results in the past years and will continue to contribute in the future as centers of excellence in research. In addition, the ambassador discussed the ways to conduct joint education and training experience exchanges with Kuwait University, and conduct joint research that is critical to the development of a country and addresses problems. Finally, Ambassador Sied requested for additional scholarship programs due to the presence of a large number of Ethiopians in Kuwait. Professor Asad al-Rashed, on his part, mentioned that the Kuwait university will look forward working with universities in Ethiopia in the fields of science, engineering, medicine, energy and agriculture and also exchanging education and training experience.

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The Ministry of Foreign Affairs has pledged to explore international market opportunities for domestic medical manufacturers with a view to encourage the nation's industrial competitiveness. Representatives and leaders from the ministry and various institutions visit local medical products manufacturing and innovation exhibition that was officially opened by Prime Minister Abiy Ahmed on Saturday at the Millennium Hall. The exhibition aims to boost the local medical manufacturing sector and highlight Ethiopia's healthcare investment opportunities, showcasing domestically produced medical products and services. Following the visit to the exhibition, spokesperson of the Ministry of Foreign Affairs, Ambassador Nebiyou Tedla emphasized the importance of expanding market access for medical products, especially to neighboring countries. He added that locally manufactured medical products can play a pivotal role in enhancing the health sector and in bolstering efforts to enhance medical tourism. The ambassador also underscored the need for meeting stringent quality standards to expand local production and supply for the international market. The spokesperson noted that the Ministry of Foreign Affairs has given top priority to economic diplomacy as the kernel of the entire diplomacy including the promotion of domestically manufactured products. Accordingly, Nebiyou said the ministry will contribute its fair share in the endeavors to explore international market opportunities for local medical manufacturers. He added the promotion activities for those local medical manufacturers will be conducted by Ethiopia’s foreign missions, consulates and diplomats.

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WeVenture, a newly established local venture capital-backed incubator, has partnered with Dashen Bank for the third edition of the Dashen Kefita Entrepreneurship Contest. The initiative aims to empower aspiring Ethiopian entrepreneurs by providing them with training, mentorship, and a platform to showcase their business ideas.

With over 2 million birr in prizes, first place receives 500,000 birr, second place receives 400,000 birr, and third place receives 300,000 birr.

“WeVenture will assess the investment proposals to identify the 50 most promising ventures from all participants,” said Noel Daniel, Managing Partner of WeVenture.

The competition will take place in Mekelle, Adama, Bahir Dar, Dessie, Dire Dawa, Wolayta, Hawassa, Jimma, and Addis Ababa. Entrepreneurs can register until June 29, 2024 at their nearest Dashen Bank branch. Following the training, applicants will submit their proposals to Dashen Bank, where a shortlisting process will be conducted.

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The Mastercard Foundation, in partnership with Kifiya Financial Technology PLC (Kifiya), announces a scale-up program designed to unlock resources from banks, innovate new financial models and products, and transition the financial sector to enable access to uncollateralized financial credit products to a greater number of MSMEs. A budget of US $100 million is committed to the program.

The Sustainable Access to Finance to Enable Entrepreneurship (SAFEE) program incorporated learnings from Michu, a successful large-scale pilot by the Cooperative Bank of Oromia, Kifiya, and the Mastercard Foundation. This collaboration enabled more than 148,000 MSMEs to access uncollateralized working capital credit in just 14 months.

SAFEE will unlock US$300 million from six banks and enable more than 477,800 micro, small, and medium enterprises (MSMEs) to access relevant and appropriate uncollateralized digital credit products and will enable 425,000 young women to access mobile device financing.

The program will serve program participants of current and future Foundation programs by unlocking access to uncollateralized working and productive digital credit. The credit is in the form of nano, micro, and small working capital, inventory credit, invoice financing, equipment financing, and buy-now-pay-later products for MSMEs in urban, peri-urban, and rural areas of Ethiopia.

Over a period of five years, the program will directly drive the creation of job opportunities for 2.18 million young people (80 percent women) and support other programs to enable 3.65 million young people to access credit. The program will focus on supporting vulnerable young people who are traditionally excluded from accessing financial products, including women, persons with disabilities, refugees, and Internally Displaced People (IDPs).

The program is designed to propel supply-side system-level change while addressing demand-side challenges that have traditionally constrained MSMEs' access to uncollateralized financial services. It does this by addressing the lack of credit history and records, availability of appropriate products and services, low use of financial technology and the cost of managing low-value credit. It also provides the technical assistance required for financial institutions to transition from conventional collateral-based lending to uncollateralized, digitally enabled, credit-score-based lending, and embracing new modality of delivery of financial services.

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The government of Ethiopia has been exerting efforts to realizing its aspire of boosting the market share of local pharmaceutical industry to 47 percent during its middle term development and investment plan for the health sector, Health Minister Mekdes Daba revealed. Prime Minister Abiy Ahmed inaugurated the Domestic Medical Supplies Production and Innovation Exhibition at the Millennium Hall in Addis Ababa today. On the occasion, Minister of Health, Mekdes Daba highlighted government’s manifold initiatives being carried out to strengthen the health sector focusing on enhancing access to healthcare services. She mentioned the concrete achievements registered in the areas of mothers’ and children health, prevention of transmittable and non-transmittable diseases. However, the minister underscored the need to intensify efforts in advancing the pharmaceutical sector. In this regard, the government has established mechanisms in its stride to make the country self-sufficient in medical and medicine supplies by creating health and drug policy and regulation, Mekdes noted. She further mentioned about the encouraging achievement attained this year as the country was able to manufacture medical products valued at 75 million USD as part of its efforts to encourage local manufacturers, enhance import substitution and help the overall economy of the country. This consecutively has helped the country save 53.1 million USD.

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Ethiopian Airlines has collaborated with multiple service providers to cater to the diverse demographics and passenger tastes. Ethiopian introduced onboard Wi-Fi connectivity using the latest state-of-the-art broadband satellite technology (Ka-band), allowing passengers to enjoy reliable connectivity for sending emails, shopping online, or even chatting on social media while flying over the clouds. Mesfin Tasew, Group chief executive officer, said: “Elevating passenger experience is a top priority at Ethiopian Airlines. Offering a range of entertainment options, Ethiopian has always strived to create a more enjoyable and immersive inflight experience enabling passengers to relax during long flights. As we will continue to enhance the passenger experience and set new standards in the industry, I express my gratitude to our dedicated team for making this achievement possible.”

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Witnessing the growing number of electric vehicles (EVs), TotalEnergies Ethiopia is integrating electric charging points at its gas stations. The oil company inaugurated its first EV charging station today, located on Bole Airport Road, Bole Matemiya. The fast-charging station, which can serve three cars at a time, is suitable for all types of EVs. “We are developing the right kinds of EV charging solutions while the legal and market platforms are being crafted. Depending on the development of the market, we have various options to deploy,” reads TotalEnergies marketing material prepared for the launch. Currently, there are over 100,000 EVs in Ethiopia, while the number of charging stations remains considerably low. To accelerate the development of EV charging networks, the Petroleum & Energy Authority is drafting a new directive. This initiative aims to leverage existing gas station infrastructure. The draft policy outlines specifications, permitting processes, and pricing models for establishing EV charging stations at these locations. The Addis Ababa Transport Bureau is also encouraging private investors to join the effort in building charging stations.

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The National Bank of Ethiopia is revamping its gold buying scheme to combat a decline in official gold supplies. The bank announced significant price hikes for suppliers, hoping to stem the flow of gold into the black market. Under the new plan, effective June 17^th, 2024, suppliers will receive a 72% premium above the global market price for deliveries exceeding 30 kilograms. Those bringing in 3.01 to 30 kilograms will get a 67% premium, while smaller quantities between 50 grams and 3 kilograms will receive a 60% markup. These changes address longstanding issues in Ethiopia's gold sector. The National Bank acknowledged that previous incentives were insufficient, leading to gold being smuggled out instead of entering official channels. Governor of the National Bank, Mamo Mehretu, specifically noted a recent drop in submissions despite ongoing gold production. This decline in official gold has significantly impacted the country's foreign exchange earnings, falling short of projections set by the Ministry of Mines. Ethiopia previously earned over USD 600 million annually from gold, but those figures have dwindled in recent years. The hope is that the new, more attractive incentives will entice suppliers back into the official market, boosting foreign currency earnings for the country.

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The National Bank of Ethiopia (NBE) has prepared two proclamations as part of an economic reform plan. One of them includes the establishment of a legal framework for introducing a central bank digital currency (CBDC). The policy changes foreseen by the NBE Proclamation include creating a legal framework for a CBDC “as necessary,” as well as increasing the NBE’s capital and creating a legal basis for consumer protection. The accompanying Banking Business Proclamation addresses liberalization of foreign investment in banking, corrective measures regarding “problem” banks and the creation of a regulatory sandbox for innovative financial solutions. The Council of Ministers has approved the proclamations and will soon be introduced into the House of Representatives.

The central bank has broad reforms in mind

The proclamations are part of the government’s Homegrown Economic Reform Agenda. The privately owned Ethiopian newspaper The Reporter mentioned the government’s interest in a CBDC in April. It said a study would be launched in June. It added that the NBE also aims to join “the Cross Border Payment System” by December. It did not provide any specifics about that system.

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The recent “China – Ethiopia Agriculture and Mining Industry Cooperation Fair” held in Addis Ababa on May 16th marked a significant milestone in fostering collaboration between Ethiopian and Chinese businesses. This article will delve into the key points of the event, highlighting the participation of officials, the focus on industry cooperation, and the potential impact on bilateral economic ties.

Strengthening Economic Cooperation

Business Opportunities and Collaboration

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This week, Ethiopia claims to have discovered 21.3 billion cubic meters of natural gas reserves in the Ogaden region in the south eastern part of the country. The Ethiopian Herald, a state-owned media outlet, on Saturday cited Milion Matheos, State Minister in the Ministry of Mines, as saying that “a survey supported with the drilling of 19 wells in the Ogaden region has confirmed the presence of 21 billion, 336 million cubic meters of natural gas.” From the government media report, there seems to be a plan for extraction by next year.  “We are working to bring the newly discovered natural gas into production as early as next year,” the state minister is cited as saying. “While some resource exploration projects can take years, we are confident of achieving success in a shorter timeframe here,” he added as quoted by the Ethiopian Herald. The ministry of mining has embedded a narrative that Ethiopia  “is home to oil and natural gas deposits in six different locations, including Ogaden, Mekele, Metema, South Omo, and Gambella.” There had been extensive media coverage soon after Abiy Ahmed became Prime Minister in 2018 about the start of “crude oil production” in Ethiopia. tt became like a mirage not before long. In 2016, there was a report about a $4billion natural gas production deal between Ethiopia, Djibouti and China. And in 2019, there was news that Ethiopia would start exporting natural gas via Djibouti in three years. Now in 2024, the Prosperity Party led government is making the story a headline again.

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As reported recently, Ethiopia’s Council of Minister has been busy for the past few weeks legislating laws intended to consolidate power including by using economic repression tactic as a tool. Last week, it legislated a law that enables  the Minister for Justice to freeze without a court order. More detail is emerging this week. The Draft of “Asset Recovery Bill” is circulating on social media. Framed as a sort of “legal tool” to combat “economic crime” which the government claims has affected Ethiopia’s economy, the legislation, if approved in the parliament, will enable it to confiscate property/wealth linked with illegal remittance. Another striking element from the new bill is that the law will be applied retroactively for up to ten years. Property owners will have to produce receipts of transactions for money received from abroad.  Receipt of transaction from the bank is possible only if the remittance was made via “legal means” as opposed to remittance via black market. “Since economic crime has been causing a serious damage to the country’s economy, it has become necessary to prevent and control this crime so that any person will not get any economic benefit from illegal activity,” reads part of the introduction of the draft bill – a bill that is prepared in eight parts and is thirty-six pages long. It made claims that “unverified wealth,” is directly impacting the tax system, foreign currency, circulation of money and foreign direct investment.

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Gorebet, an app that leverages the traditional Ethiopian concept of “Gurbitina,” enabling users to connect and share important local information, has been launched by Opian Technologies. The platform, designed to enhance neighborhood safety and encourage proactive resident engagement, lets users report public, infrastructure, and environmental incidents impacting their lives. “Such information is crucial for creating an informed and connected community,” said Brook Getachew, co-founder of this community-driven platform. “By sharing real-time data on local issues, Gorebet helps residents stay aware of their surroundings, enhances neighborhood safety, and fosters a culture of mutual aid and collaboration,” he added. The platform’s public category covers theft, traffic accidents, fire, gender-based violence, lost and found items, and other incidents. The infrastructure category includes electric power problems, water supply issues, potholes/road problems, and public transportation issues. The Environmental category allows users to report environmental incidents. Users can download the app, register with their address, and report incidents with their location. Additionally, they can post anonymously to a feed visible to everyone. Gorebet supports text, image, and video reporting for incident details.

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KEFI Gold and Copper, which has been operating in Ethiopia and Saudi Arabia, issued its annual report for the year ended 2023. The highlight of the KEFI annual report was that we had commenced Early Works at the Tulu Kapi Gold Project in West Welega. “Early Works comprise a number of activities with the community and other stakeholders to ensure that everyone is fully informed and consulted and the site is prepared for the Major Works to commence. Major Works would lead to production starting in 2026,” the company said in a statement released today. “This is the first gold mine in Ethiopia that complies with World Bank IFC Performance Standards. We apply the same rules that are applied in advanced mining jurisdictions like Scandinavia, Australia and North America,” it said. The major highlights of the annual report include: – In Ethiopia, with our partners and banks: – The company’s focus is now on successfully completing the Early Works at Tulu Kapi so that we can close the US$320 million project finance package and launch Major Works in October 2024. Gold production would then commence in mid-2026; – Tulu Kapi’s projected net cash flow to KEFI’s planned 80% beneficial interest is estimated at approximately £80 million per annum. At current spot of $2,346/ounce, KEFI’s planned beneficial interest in the cash flow is estimated to be approximately £100 million; – The end result will be the launch of Ethiopia’s first industrial-scale mining project and its largest single export generator and, in so far as environmental, social and governance aspects are concerned, the project is designed to be in compliance with World Bank IFC Performance Standards, creating direct and indirect employment for 5,000 to 10,000 people.

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A collaborative roundtable discussion was organized this week in Dubai highlighting Tourism opportunities in Ethiopia. The Ethiopian Consulate in Dubai and Ethiopian Airlines collaborated to organize the  event, according to information from the Ministry of Foreign Affairs of Ethiopia (MFAE). “The discussion sought to establish a platform for well-known tour operators in the United Arab Emirates to integrate Ethiopia into their tour packages,” the Ministry said. Over 15 businesses in the tourism industry – apparently operating from Dubai,  have attended the event. Aklilu Kebede is Ethiopia’s Consul General in Dubai. He invited tour operators to seize tourism opportunities in Ethiopia, and interested them in natural, historical and cultural destinations in the country. Head of the Economic Diplomacy Department of the consulate, Asmelash Bekele, talked about “newly developed tourist destinations and supportive government policies.” The Ethiopian Airlines, represented  by  Solomon Begashaw, Area Manager of Ethiopian Airlines Dubai office, seized the opportunity to highlight flight packages available to  clients from Dubai. The update from the MFAE also indicated that “plans for a Familiarization Trip aimed at showcasing Ethiopia’s tourism attractions and fostering investment,” but no further detail was given about it.

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Ethiopia’s council of ministers on Friday approved a law that allows foreign banks to operate in the east African country.

The decision comes nearly two years after Prime Minister Abiy Ahmed’s cabinet adopted a policy to open the banking sector to foreign investors.

The law was approved together with a revised draft proclamation allowing the amendment of the National Bank of Ethiopia (NBE) and other resolutions.

Ethiopia’s banking industry is dominated by state-owned Commercial Bank of Ethiopia, and the sector has 32 players in total, all of them locally owned.

The National Bank of Ethiopia recently announced that it has finalized preparations to issue up to five banking licenses to foreign investors in the next five years.

In a statement on Friday, the PM’s office said the draft law was prepared in response to the recent economic and technological development of the global financial industry, in addition to the policy change.

“The draft law allows establishing legal framework and control mechanisms to issue banking licenses to foreign investors and administer its process,” the PM Office added.

The council eventually voted unanimously to endorse the draft law and referred it to the parliament for ratification.

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Ethiopia’s federal agency responsible for supplying pharmaceuticals and medical equipment to health institutions has deployed an Enterprise Resource Planning (ERP) system to streamline its operations. The Ethiopian Pharmaceuticals Supply Service (EPSS), began implementing the ERP software last week and aims to make the drug supply chain data-driven and align supply with demand. With a revolving fund of one billion dollars, EPSS supplies 1,200 medicines and medical devices to 5,000 public health institutions on both credit and cash bases. Its previous operations have faced challenges, with health institutions failing to repay hundreds of millions of birr for supplies taken on credit. “ERP technology is critical for making the drug supply chain transparent and accessible, as well as for standardizing the previously fragmented system,” says Awol Hassen, Communication Director of EPSS. “The plan has been in place for over ten years and has finally been implemented due to the management’s dedication to digitization,” he adds.

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Minister of Industry Ato Melaku Alebel reported a 10.1% growth in the sector over the past ten months. In a performance review presented to Prime Minister Abiy Ahmed this growth surge is attributed in large part to the Ethiopia Tamrit Movement, a program focused on promoting domestic production and reducing reliance on imports. The Minister specifically highlighted the movement's role in propelling the sector's resurgence. In this regard, 129 major industries have commenced operations in the past ten months, fueled by new investments attracted by the movement. Additionally, previously dormant industries have been revitalized, resuming operations and increasing production capacity. Furthermore, the country replaced USD 2.2 billion worth of imports with domestically produced goods over the past ten months. Looking towards the future, the Ministry of Industry outlined ambitious plans to build upon this year’s achievement. The target for the 2024/25 fiscal year is to achieve an even higher growth rate of 12.8% within the industrial sector.

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The Ministry of Finance has signed a grant agreement with the African Development Bank to support the agricultural sector and bolster job creation. The USD 43 million grant will be allocated to the Agri-MSMEs Development for Jobs project in Ethiopia. This project aims to improve the competitiveness, employment opportunities, and overall development of Micro, Small, and Medium Enterprises. It is expected to play a pivotal role in boosting productivity and promoting inclusive growth, thereby contributing to Ethiopia’s efforts to build a resilient and diversified economy. The agreement was signed by Ahmed Shide, Minister of Finance representing the Government of Ethiopia, and Dr. Abdul Kamara, Deputy Director General of the East Africa Regional Development and Business Delivery Office and Country Manager of the Bank.

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The National Bank of Ethiopia on Wednesday announced five revised regulatory directives to “strengthen the framework of the financial sector oversight.” The bank claims that the revisions were made in alignment with international best practices “for Banking Supervision and to accommodate new developments in the sector, thereby building the foundation for strong and inclusive growth.” The disclosure from the bank said the changes were made to the regulatory system in the sector.  And they are made in  “response to the development of the domestic banking industry,” it was said. It is also noted that the changes were in the Bank’s three years strategic plan. There has been an ongoing conversion with international monetary institutions : IMF and the World Bank. Reports from different sources were indicating the financial institutions have been pressuring the government to further devalue Ethiopian birr. As it turns out, the Ethiopian government seems to have quietly devalued the exchange rate of Ethiopian Birr for money transfers from overseas. For example,  a Canadian dollar used to fetch about 23 to 25 Ethiopian Birr a year after Abiy took power. Last week, it was exchanged for 89 Ethiopian birr if the money transfer is directly deposited to an account in Ethiopia. If it is for cash pickup, it is about 42 Ethiopian Birr.

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Ethiopia has generated more than $209.5 million from coffee export in the month of May, putting the sector on track for record high annual revenue. In a statement issued on Tuesday, the Ethiopian Coffee and Tea Authority (ECTA) said the east African country exported a little over 43,481 tons of coffee to earn the $209.54 million from the export of the commodity. “This is significantly higher as compared to similar months of the previous two years,” ECTA said in a statement. ECTA said the export trade surpassed the targets the authority had set for the month of May both in terms of the volume and value by 105 percent and 107 percent respectively. The growing performance of the sector has been attributed to a new market option that has eliminated unnecessary steps in the supply chain. Over the past eleven months, the coffee industry shipped over 252,466 tons of beans to the global market, generating $1.208 billion after.

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The Africa Cloud & Security Roadshow concluded in Addis Ababa, Ethiopia, last month as dozens of local and regional industry leaders, policymakers, and cloud computing and cybersecurity professionals gathered to explore current and emerging technology trends. Powered by BUI East Africa, an award-winning global IT consultancy specialising in cloud, security and networking solutions, and organized by dx5, Africa’s technology driver, the Addis Ababa conference was the third and final leg of the roadshow after similar events in Tanzania and Uganda in May. Designed to encourage meaningful discussions about cloud computing and cybersecurity and geared towards advancing the technological landscape in East Africa, the roadshow gave attendees a chance to engage with keynote speakers, presenters, and panel guests on a wide variety of topics, from cloud infrastructure to artificial intelligence and advanced security. While Ethiopia is committed to digital transformation, the country faces many hurdles on its path to change, including digital skills gaps and shortages of cloud and cybersecurity specialists. Roadshow delegates were eager to hear about the technologies and tools available to help small and medium-sized businesses, enterprises and non-profit organizations drive cloud adoption and improve security.

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Addis Ababa, the capital of Ethiopia, hosted the CAF Governance workshop for CAF Member Associations aimed at championing governance and financial global best practice.

This aligns with CAF President Dr. Patrice Motsepe's drive to prioritise governance and uphold the highest ethical standards within Africa’s Member Associations.

The workshop, which was held between 07 – 09 June was spearheaded by CAF’s Member Associations and Legal Affairs Departments, and saw General Secretaries and Finance Directors, who all play a vital role in advancing CAF’s vision of making African football globally competitive and self-sustaining being capacitated with the required knowledge and measures to assist in stabilising and improving governance and financial strength in their respective Associations.

The three-day workshop marks the second edition of the gathering of General Secretaries and Finance Directors, following the first edition of the workshop held in Johannesburg, South Africa in November 2023.

Amongst other key topics that headlined the workshop, CAF delved deep into the subjects of Good Governance Principles, Recommended Statutes updates, Tools to implement Governance best practices as well as a presentation of the Zonal Union reforms which are key in having efficient Member Associations.

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 Ethiopia's financial landscape is currently on the cusp of a historic transformation as it gears up for the grand unveiling of its very first stock market, the culmination of over three years of strategic groundwork.

This journey began in 2021 with the appointment of Meles Minale, a macroeconomic advisor at the National Bank of Ethiopia, to spearhead a team of 14 experts in laying the foundation for Ethiopia's first full-fledged capital market.

The efforts of this team resulted in the establishment of the Ethiopian Capital Market Authority (ECMA), under the astute leadership of Brook Taye (PhD), a young economist with extensive experience from the Ministry of Finance and the private sector.

The Authority is entrusted with critical responsibilities, including the development of a regulatory framework, the creation of a long-term capital market development roadmap, and the review of institutional investor regulations, macro-financial policies, and tax policies. These preparations are essential for the establishment of the Ethiopian Securities Exchange (ESX).

With most of the preparatory work now completed, the inauguration of the ESX is scheduled for November 2024, marking a significant milestone in Ethiopia's economic evolution.

Officials emphasize that the ESX is already attracting significant investor attention and pulling in funds.

The Ethiopian Investment Holdings (EIH) is set to be one of the largest investors on the ESX.

In October 2023, EIH and four of the largest state-owned enterprises (SOEs) under its purview--namely, the Ethiopian Shipping and Logistics Services Enterprise (ESLSE), Berhanena Selam Printing Enterprise, Ethiopian Insurance Corporation (EIC), and Ethio Telecom--announced a combined 25% stake acquisition in the ESX.

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The Space Science and Geospatial Institute has partnered with National Airways, a private airline based in Addis Ababa, to capture aerial images using local planes, saving millions of birr annually. The agreement, signed last week by Abdisa Yilma, Director General of the Space Science and Geospatial Institute, and Captain Abera Lemi, CEO of National Airways, will replace the previous reliance on rented planes from abroad. Aerial photography, one of the earliest and most cost-effective forms of remote sensing, remains widely used. Abdisa noted that the cameras installed on the planes produce high-quality images for various purposes. He added that the previous method required foreign currency, creating challenges for the office. The new agreement is a significant step toward resolving this issue. Kemahu Abraham, Lead Executive of Aerial Surveying at the Institute, stated that Ethiopia’s aerial surveying operations cost between 100 and 150 million birr annually. Previously, the Institute rented planes from abroad, costing $2200 to $2500 per hour, depending on resolution, accuracy level, and area requirements. The new agreement is expected to save $250,000 to $350,000 per year. “We can collect two types of data using two planes rented from National Airways,” said Kemahu.

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Grand Ethiopian Renaissance Dam (Gerd) has generated more than 2,700 gigawatt hours (GWh) of electricity during the past 10 months. The Ethiopian Electric Power (EEP) said the mega hydroelectric power plant has surpassed its initial planned power generation targets in the past 10 months of the current 2023/2024 Ethiopian fiscal year that started on July 8, 2023, state-affiliated Fana Broadcasting Corporate reported late Wednesday. The dam registered around a 26 percent increase from the initial plan of 2,152.8 GWh, according to data from EEP. The EEP attributed Gerd's increased power generation to the dam's ability to store more water, enabling its two operational turbines to function at full capacity. With the new milestone, Gerd contributed about 16 percent of the East African country's total 16,900 GWh of electricity generated during the reported period from various power generating plants across the country.

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ZalaTech, a leading software company headquartered in Addis Ababa, Ethiopia, successfully participated as an exhibitor at GITEX Africa 2024 (https://GITEXAfrica.com), held in Marrakesh, Morocco. This premier technology event, known for bringing together industry giants and innovators from across the continent, provided the perfect platform for ZalaTech to showcase its cutting-edge software solutions to a global audience. Empowering Businesses through Technology From its inception in Addis Ababa, ZalaTech has focused on developing innovative software tools designed to empower businesses of all sizes to thrive in today's dynamic market. The company's commitment to understanding the unique needs of African businesses was evident throughout GITEX Africa.

Ethiopia inaugurated its biggest electric vehicle factory in Debre Berhan in the Amhara region on Tuesday, as part of an ambitious strategy to turn the country into a leading player in green mobility on the continent. But this latest development comes as the Ethiopian government faces economic challenges and limited financial capacity that has delayed the completion of government priority projects scattered around the country. This includes the $5 billion Grand Renaissance Dam, which would help upgrade the electricity network needed to power a rising influx of EVs. With the Horn of Africa nation facing a large economic deficit, skeptics are questioning if Ethiopia has the capability or the resources to execute such an ambitious project. Addis Ababa is displacing citizens and gutting neighborhoods to pave the way for skyscrapers and EV charging stations, part of an effort to make the capital “The East African Dubai.” Ethiopia’s 10-year Perspective Development Plan calls on the government to import 4,800 electric buses and 148,000 electric cars. Last year, Ethiopia banned the import of non-electric cars and offered a new tax exemption for the import of electric cars as part of a green legacy project initiated by Prime Minister Abiy Ahmed. The local automobile market is currently saturated with Chinese imported electric vehicles, with Chinese brands such as BYD and Jetour gaining popularity. The Ethiopian Ministry of Transport announced last month that it had managed to bring in more than 100,000 electric cars and built 60 charging stations across the capital.

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The Addis Ababa Civil Registration & Residency Service Agency (CRRSA) is transitioning to a cashless system accepting payments only through telebirr starting next year. The Agency, responsible for registering vital events like births, marriages, divorces, and deaths in Addis Ababa, has already integrated Ethio Telecom’s mobile money platform. “Just one month after integrating telebirr, the Agency has already collected 13 million birr from its head office and district branches in the capital,” said Yonas Alemayehu, General Director of the Agency. Yonas shared with Shega the plans for the institution to become completely cashless within the next year. “We’ve made significant progress in digitizing payments,” he said. “Similar to the initial resistance towards telebirr acceptance at fuel stations, there might be an adjustment period. However, we believe everyone will ultimately appreciate the convenience of digital services.” Since the nation made fuel transactions cashless, several government agencies, such as the Federal Document Authentication & Registration Service, have transitioned to digital payments. Most of the Agencies are also accepting only telebirr. However, three weeks ago, it was reported that the Petroleum and Energy Authority is preparing to launch a platform that enables drivers to pay at gas stations using Safaricom’s M-PESA and other digital payment solutions by banks.

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DT Global Europe has successfully completed a transport and logistics support project in Ethiopia funded by the European Union and widely recognised by both the EU Delegation in Ethiopia and the main local beneficiary institutions. This project has been a major milestone in the country's logistics reform through its contribution to improving the service of regional transport corridors, increasing the efficiency and effectiveness of the logistics sector, as well as improving environmental/climate and social performance. The implementation of the project, entitled ‘Technical Assistance to the Ethiopian Transport and Logistics Sectors’ and funded by the European Union, will enable the Government of Ethiopia to improve the regional integration and competitiveness of the country in a sustainable manner and to meet the performance indicators of the performance contract on Ethiopia's regional connectivity and competitiveness sector reform.

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Deputy Prime Minister Temeshgen Tiruneh has announced that Ethiopia's construction industry has reached a significant milestone and now contributes 21 per cent to the country's Gross Domestic Product (GDP). The announcement was made during the opening of the much-anticipated Big 5 Construct Ethiopia 2024 Expo in Addis Ababa, as reported ENA. The event, with the theme “Construct Ethiopia”, was attended by prominent figures such as Speaker of the House of People's Representatives Tagesse Chaffo, Addis Ababa Mayor Adanech Abiebi, Minister of Urban Affairs and Infrastructure Chaltu Sani and other industry stakeholders. The event highlighted the significant growth of Ethiopia's construction sector. Deputy Prime Minister Temeshgen emphasised that the industry is projected to grow at an annual rate of over 8 per cent, which will contribute significantly to the overall prosperity of the country. He emphasised the vital role of the sector in infrastructure development and job creation, noting that Ethiopia is capable of supplying 80 per cent of construction materials to the domestic market. Minister of Urban Affairs and Infrastructure Chaltu Sani emphasised the importance of coordination among various stakeholders to ensure the continued development of the construction industry, which is a key driver of Ethiopia's economic transformation.

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The men’s 5,000m at the Oslo Diamond League on Thursday had the firepower to be something special with the likes of world record holder Joshua Cheptegei of Uganda and his compatriot, Jacob Kiplimo. However, it wasn’t the likely candidates who stole the show. Instead, 30-year-old Ethiopian Hagos Gebrhiwet clocked the second-fastest 5K time in history–12:36.73 to break the Ethiopian national record. Gebrhiwet’s time wasn’t only a national record, but an Oslo Bislett Games meet record, a personal best and the fastest time in the world this year. He took nearly six seconds off his previous best of 12:42.18 and broke Kenenisa Bekele’s Ethiopian record mark of 12:37.35, set on May 31, 2004. Speaking to the media post-race, Gebrhiwet said he hopes this result will help him be selected for the Ethiopian team for the 10,000m event at the 2024 Olympics. The only man who has ever run faster than Gebrhiwet is Cheptegei, who finished ninth in Thursday’s race, with a time of 12:51.94.

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CCI Ethiopia, a local branch of CCI Global, one of the largest business outsourcing (BPO) companies in Africa, is set to resume operations after a temporary shutdown at the end of last year. CCI Ethiopia previously employed over 100 Ethiopians. CCI Global’s previous operations in Ethiopia focused on providing customer support for “CCI’s major US e-commerce clients.” According to former CCI Ethiopia employees who wished to remain anonymous because they are not allowed to speak to the media, their clients included Shutterfly and Instacart. Shutterfly is an American photography, and image-sharing company while Instacart is a same-day delivery company based in San Francisco with a valuation of $9.3 billion in 2023. Tadiwos Tefera, CEO of MMCY Tech, a local BPO firm and a partner of CCI Ethiopia, confirmed the company’s return and plans to “revamp their operation.” While Tadios declined to disclose the specific reasons for the shutdown, he clarified that it was not a permanent closure but rather a “ramping down,” with the upcoming relaunch signifying a “ramping up.” CCI Ethiopia is planning a comeback with the initial hiring of around 70 employees. The success of this initial phase will determine further expansion plans in late 2024 and early 2025. According to sources close to the case, despite failing to issue an official communiqué regarding the shutdown, the company provided a three-month severance package to employees when they were laid off.

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ddis Ababa May 28/2024 (ENA) Ethiopia received 3 billion USD in Foreign Direct Investment (FDI) in the first 10 months of the current fiscal year., Ethiopian Investment Commission remarked.

Speaking to ENA, Commissioner of the Ethiopian Investment Commission Hanna Arayaselassie said the commission has planned to attract 3.5 USD in foreign direct investment during this Ethiopian fiscal year.

“Over the last 10 months, the total FDI inflow into the country is about 3 billion USD. We are working towards meeting the annual goal. We expect this number to grow in the coming years.”

Noting we are a bit behind our annual target, but it has increased and showed improvement compared to last year, she said, adding “we are working hard to make sure that we meet our goal, but also to increase it for the coming year.”

Although there are sizable contributions from other parts of the world, China is the top source of foreign direct investment into the nation, accounting for almost 50 percent of all projects that come in, she indicated.

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An ambitious project, funded by the World Bank, is developing an e-commerce platform with the goal of reaching 300,000 small and medium-sized enterprises (SMEs) across the country. The project, which brings several organizations into collaboration, has contracted Africom Technologies, an Ethiopian IT solutions provider, to build the new national e-commerce platform. “E-commerce holds immense untapped potential in Ethiopia,” said Baheru Zeynu, CEO of Africom Technologies. “This collaboration between government and private actors creates a unique opportunity to unlock this potential nationwide.” The platform will create a domestic and international digital marketplace specifically for SMEs by providing a robust online platform. Development for the platform officially kicks off tomorrow, May 29, 2024. With a construction timeframe of one year, the platform is expected to be fully operational by the designated launch date, and over 40 developers will contribute to the development process, according to Baheru. The contract was officially signed two weeks prior. The agreement involves Ethiopian Enterprise Development (EED) under the Ministry of Industry, along with a joint venture between Africom Technologies PLC and CSM Technologies. Ethiopost, the national postal service will be the delivery partner.

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One of the privileges that comes from publishing a daily coffee news and culture publication like Sprudge is our ability to provide coverage continuity. A particularly prescient example of this came across our desks last week. For the last three years, we’ve reported on legislation that’s made its way through the European Union focused on limiting deforestation in Africa, with a troubling set of after-effects on the livelihoods of African coffee producers. This is a serious, complex set of issues, and our original reporting (from 2021) wondered if this might not lead to a ban on coffee importation altogether in the EU. In late 2022 a version of the laws was passed, and throughout 2023 major pushbacks occurred from the European Coffee Federation, Lavazza, and other European coffee leaders. Serious negative impacts of the new laws emerged by late 2023, leading to fears that some coffees would have to be destroyed at Europe’s largest green coffee warehouse. But so much of this reporting—ours, and from large mainstream publications like the Financial Times, who have reported extensively on this story—focused on a European perspective. What about the coffee producers? How were they adapting—and was adaptation even possible? In a new feature for Sprudge Special Projects, Nairobi-based journalist Anthony Langat spoke with coffee producers in the Oromia region of Ethiopia. Many of these producers are members of the Limu Inara Multipurpose Cooperative Society and the Oromia Coffee Farmers’ Cooperative Union. Langat’s reporting is revealing, and in its own way, surprisingly optimistic. While it’s true that the EU’s laws represent a threat to coffee producers in Africa, this is a resilient and resourceful group of people. Rather than accepting the existential threat of these new laws, “Ethiopian smallholder coffee farmers are betting on technology including blockchain, geospatial AI, GPS, and satellite imagery to comply in order not to lose out on the European Union market,” reports Langat.

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The Ethiopian seed sector is transforming into a more vibrant, pluralistic, and market-oriented one. Ethiopian seed companies are increasing their seed production and quality, while Dutch breeding companies are entering the market with high-value vegetable seeds. This is part of a transition supported by the Wageningen Centre for Development Innovation (WCDI). WCDI works with public and private partners in Ethiopia to develop a private seed sector. The Ethiopia Netherlands Seed Partnership (ENSP) improves the availability and quality of seed on this emerging market. Tens of thousands of farmers are now receiving training and demonstrations on how to improve their harvests. Resilience, an agribusiness consultancy firm, focuses on supporting ten Ethiopian seed companies in the partnership. These companies have emerged in the past fifteen years, during the liberalization of the agricultural economy. Until then, the Ethiopian government supplied almost all seeds to farmers through public seed enterprises. These parastatals did not properly match their production to the existing demand, which caused shortages of in-demand seeds, carryover of unwanted seeds, and variable quality. As a result, many Ethiopian farmers used part of their harvest to sow a year later and yields were often low. For example, the average potato yield is less than 10 tons per hectare in Ethiopia, compared to 21 tons per hectare worldwide.

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On May 14, 2024, the Ethiopian Civil Aviation Authority (ECAA) granted approval to local private operators, allowing them to provide regular passenger and cargo flight services. According to the ECAA’s press release, this authorization is crucial because it will “enable the air transport sector to contribute to the overall development of the country.” The goal is to “provide safe and guaranteed services” to investors and “encourage many investors to enter the sector.” While existing regular domestic flights primarily connect regions to Addis Ababa, this new permission for private operators aims to enhance connectivity between different regions, fostering economic and social interaction. In addition to this, the tourist destinations that are being built in different parts of the country have been given the attention of the government and will have a significant role in making the environment accessible to visitors. Despite Ethiopian Airlines’ success as the largest airline in Africa, the private sector in the Ethiopian aviation industry has not flourished. General aviation in the country is still in its infancy, with approximately twelve private airlines operating in the sector. Notably, none of these private operators offer scheduled flights; instead, they focus on charter flight services. Currently, Ethiopian Airlines remains the sole provider of scheduled flight services on domestic routes.

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• Safaricom Ethiopia, a telco operator, has announced receiving the first batch of 13 locally manufactured telecom towers from Woda plc., the first local company to manufacture network towers in the country, to improve and expand their network infrastructure.

• Per the telco operator, Woda will supply 68 high-quality towers for 50 million birr (nearly $870,000).

• This development comes a month after Safaricom Ethiopia announced a $1.5 billion plan to build 5,000 new towers over three years to expand network infrastructure and provide high-quality, dependable telecommunications services across the country.

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In a move designed to open up the domestic airline market, the Ethiopian Civil Aviation Authority has authorised private charter carriers to break into Ethiopia's scheduled domestic passenger and cargo market. In a statement released on social media, the authority revealed that it had already granted licences to Ethiopian air transport operators to provide regular passenger and cargo flights in addition to the charter services they currently provide. Ethiopian Airlines (ET, Addis Ababa International) is currently the only scheduled carrier in the East African country, while there are eight active passenger charter operators, according to the ch-aviation PRO airlines module - Abyssinia Flight Services, Aquarius Aviation, East African Aviation, Midroc Aviation, National Airways (Ethiopia), Trans Nation Airways, Walya Airways, and Zemen Flying Service. The Ethiopian regulator underlined that it had been undergoing a transformation over the last two years and has been updating procedures and introducing new ones to encourage the participation of the private sector in operating domestic routes. The move is aimed at boosting the aviation sector's contribution to the economy, providing greater incentives and opportunities for investors to conduct safe services, connecting the country's regions, and providing access and increasing tourism.

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Ethiopia generated more than 15 thousand gigawatt hours of energy in the nine months and exported part of it to its three neighbor countries namely Djibouti, Sudan, and Kenya with which it established power connections over a year ago. The EEP said the revenue has fallen short of the target due to security reasons. “Although the maintenance works were done with the view to making the power transmission and distribution works safe, the plan could not be achieved due to security problems in various areas. EEP said more than 14.8 billion birr ($245.6 million) was also earned from the sale of power supplied to local customers. Djibouti and Sudan have been buying electricity from Ethiopia for more than five years. Kenya started importing electricity from its northern neighbor last year. According to EEP’s statement, Ethiopian Electric Power is now set to start supplying electricity to Tanzania soon. According to EEP, the completion of the Grand Ethiopian Renaissance Dam (GERD) will greatly boost the power source of the east African nation to fulfill the rapidly growing domestic demand and the demand from neighboring countries for electricity supply. 13 turbines of the GERD are expected to produce about 16,000 GWh of electricity by the end of this year.

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Will Europeans have to do without Ethiopian coffee? The Horn of Africa country where, according to legend, coffee cherries were first discovered a thousand years ago and where their cultivation became widespread from the 16th century, could be severely harmed by the new European Union (EU) regulations aimed at combating deforestation worldwide that are due to come into force on January 1st, 2025.

The law, voted in Brussels in 2023, specifically targets soy and palm oil crops, identified as the two biggest threats to tropical forests. In a few months, however, it will also force coffee importers to prove that their supply chains do not contribute to deforestation using satellite data and geographical coordinates.

These regulations are of particular concern in Kaffa, the region of origin of the coffee that gives the drink its name, and throughout southern Ethiopia. Providing accurate geographical surveys is a challenge for these 5 million or so smallholders: Internet coverage is poor in the villages, land registries are non-existent, and land disputes are legion. According to several Ethiopian diplomats and exporters, complying with the new European standards could take up to five years.

Buyers already turning away

According to the United Nations Food and Agriculture Organization (FAO), around 10 million hectares of forest disappeared worldwide every year between 2015 and 2020. As for the European Parliament, it estimates that food consumption in Europe, particularly palm oil and soy, is responsible for 10% of global deforestation.

But coffee-growing's contribution to the destruction of Ethiopia's forests is actually very limited. "The vast majority of it grows in agroforestry systems. A few trees are felled, but it's marginal," assured a connoisseur based in Ethiopia for a decade who wished to remain anonymous. "And 90% of growers respect regulations," he estimated, stressing that few chemical inputs are used in the plantations. Nevertheless, if they can't provide this necessary information to importers, growers risk losing their main customers.

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QesBeQes project, an initiative aimed at modernizing agricultural education, has graduated five startups dedicated to digitizing agricultural training modules. The five new platforms, Enkoy, I Learn Ethiopia, Ebrana, Be’and, and Senq, present existing training modules in engaging ways, utilizing gamified approaches, animated videos, and artistic explanations. Executed by xHub Addis, Qesbeqes is a joint initiative between the Ministry of Agriculture, the Agriculture Transformation Insitute, and GIZ. The project tackles the challenge of digitalizing agriculture by developing engaging learning modules for agricultural development agents. These agents play a crucial role in supporting farmers at the ground level. At a closing ceremony for QesBeQes held today, May 24, 2024, at the Best Western Hotel, Markus Koerner, Project Manager at GIZ, noted that 25 agricultural development agent training modules have been successfully digitized. Markus added that agriculture is still the heart of the Ethiopian economy, and it takes a lot of grit to be an entrepreneur in Ethiopia. He further explained the digitization of the modules has been done in collaboration with the Minister of Agriculture. Rebecca Mulugeta, Project Manager of QesBeQes, stated that the startups received tailored training and participated in field trips to enhance audience awareness and tailor their content accordingly.

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The Ethiopian Museum of Science hosted a panel discussion on the digital economy of Ethiopia. This is reported by ENA. According to Temesgen Tiruneh, Ethiopia has started significant projects that will open the door for equitable growth in the global digital economy since digital Ethiopia is unavoidable. According to the source, Ethiopia is currently putting its digital transformation strategy into practice in order to take advantage of technology-driven economic growth and move the East African nation closer to having a creative and sustainable economy. He mentioned that the nation is dedicated to guaranteeing inclusive growth in Digital Ethiopia 2025. The initiative hopes to spur Ethiopia's socioeconomic change and open the door for equitable and long-term expansion in the world's digital economy. Temesgen emphasised that one of his top goals is to improve the coordination process by getting more private sector involvement. He recalled that the government had formed the Digital Transformation Council to bring this vision to the industry.

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Twenty seconds into “Brana (Intro),” the opening song in Ethiopian singer-songwriter Ebne Hakim’s new EP, natural bliss is the dominant mood. Birds chirp atop the melancholic notes, which move with cinematic slowness. What follows are words in Amharic, one of the oldest recorded languages in the world and a spiritual source for Hakim, whose music draws readily from the deep wells of his indigenous tradition. Released this past Friday, the Brana EP is an impressive achievement of sound. It shows clearly why Sony Music Entertainment would seek the musician on their roster, just a month after the release of “Gela,” his debut single, which came out in March. A musical talent was perceived, showing startling assurance of voice in tone and technique. Its glossy R&B sound was tinged with zesty electronic touches and seamlessly rode by Hakim, whose passionate delivery calls to mind the motions of a troubled relationship. Cohesion is the prime quality of Brana, its six songs packing enough individuality to excite in their own way, but together they’re a fine composition rewarding multiple listens. For the most part, Hakim croons, his svelte tone unpacking themes which center around self-discovery. Utilizing a prosaic style, which works with characterization and worldbuilding, Ethiopia moves into the world of the project. The country not only supplying narrative but also sound, as there are subtle touches of its distinct funk here.

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Fintech startup Chapa has been selected for the second cohort of Visa’s Africa Fintech Accelerator program.

Chapa, which is among the top 2 percent chosen from 800 applicants, will receive 12 weeks of one-on-one mentorship and personalized training. The program also offers exclusive access to funding and other development resources.

Visa reports that Cohort 2 startups operate across 28 African countries. Nigeria leads the pack with six participants, while Kenya is represented by CheckUps Medical Hub, an embedded health startup.

The selected startups provide a diverse range of solutions, including neo-banking, merchant payments, credit scoring, risk and identity management, embedded finance, social commerce, escrow services, and more. These solutions aim to address key challenges and opportunities in the African fintech landscape, such as financial inclusion, access to credit, cross-border payments, and digital transformation.

Aida Diarra, Vice President, and Head of Sub-Saharan Africa at Visa said the Accelerator program, launched in June 2023, is reflective of Visa’s ongoing efforts to help uplift the digital economy in Africa, including a pledge to invest $1 billion in the continent by 2027 to help revolutionize the payments ecosystem.

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Safaricom PLC is planning to raise up to $150 million (Sh19.6 billion) in local currency debt in Ethiopia once the country's securities exchange becomes operational in the third quarter of 2024. This amount translates to approximately 8.6 billion Ethiopian Birr at the current exchange rate, which the company intends to raise through the issuance of local currency-denominated bonds starting from September. Safaricom's CFO Dilip Pal stated that while going public via listing may not be feasible for Safaricom's Ethiopia subsidiary at present, the company is closely monitoring opportunities in the debt market for capital raising. Mr Pal expressed the company's interest in the emerging bond market, indicating that their financing needs could range from $100 to $150 million equivalent, which they may raise over time rather than in a single instance. Recently, Safaricom PLC has intensified efforts to reduce its exposure to foreign currency-denominated debt, due to the significant depreciation of frontier market currencies such as the #Kenyan shilling and the Ethiopian Birr. This depreciation negatively impacts companies' performance by increasing finance costs.

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Gold and copper exploration company KEFI has announced the launch of the Tulu Kapi Gold project in western Ethiopia.

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The Ethiopian TV market has undergone a continuous rapid expansion as the number of TV households has increased by 400% since 2017 to 18.2 million homes now receiving TV content. The penetration of HD homes in the market has also increased from 48% to 62% since 2021, with Ethiosat’s number of HD TV channels growing from 15% to 62%. Direct-to-home satellite remains as the main mode of TV reception in Ethiopia. Ethiosat is Ethiopia’s first-ever dedicated Free-To-Air (FTA) TV platform, hosted on SES’s NSS-12 satellite. Launched in October of 2019, the platform is a result of an agreement between the Ethiopian Media Authority, Ethiopian Space Science, Ethiopian Broadcasting Corporation (EBC), Association of Ethiopian Broadcasters (AEB) and SES to consolidate all Ethiopian TV channels and broadcast them from a single, orbital position. SES as a global operator of more than 70 satellites, and with additional satellites under construction, has excellent flexibility to ensure the long-term service continuity of the Ethiosat platform from its prime orbital position at 57 degrees East.

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Ethiopian Airlines have announced the inauguration of the transformed Addis Ababa Bole International Airport domestic terminal. The renovation amounted to 50 million USD, and has upgraded the terminal by expanding its area twofold to 25,750 m² and doubling capacity.

New upgrades at Addis Ababa Bole International Airport

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Trhas Teklehaimanot Tesfay is no ordinary elite cyclist. The reigning Ethiopian national champion does not live an austere life because she wants to, but because she has to. The 22-year-old currently lives in the UK having claimed asylum last year, and is being supported by charity West London Welcome. Her home country, Ethiopia, has recently endured a brutal conflict in the Tigray region.

Tesfay lives in a hotel in west London, sharing a room with two others, and is given less than £10 a week to live off. She still hopes to be able to ride at the highest level, and could potentially take part in future World Championships as part of the refugee team if her asylum claim is accepted. Her story has been picked up by both the BBC and The Guardian.

This is all happening at the same time as the Government ramping up its anti-refugee rhetoric, which is seen in its plan to send asylum seekers to Rwanda. Tesfay has made her way from Ethiopia to seek safety, yet could find herself returned to east Africa.

[caption id="attachment_16050" align="aligncenter" width="415"] Twickenham CC Dave Peck Memorial British Cup Race
Image Credit: PelotonPix / Dave Dodge Photography[/caption]

The Cooperative Bank of Oromia and Mastercard have announced an innovative collaboration with the introduction of the Coopbank Prepaid Mastercard and the debut of Community Pass technology in Ethiopia. These endeavors are poised to significantly bolster digital and financial inclusion throughout the nation, particularly among Ethiopia’s smallholder farmers. The unveiling of the Coopbank Mastercard and the introduction of Community Pass represent a pivotal advancement in Ethiopia’s financial landscape, underpinned by a mutual dedication to innovation and accessibility. The Coopbank Mastercard presents a sophisticated and secure solution for card management, tailored for international travelers, thereby facilitating ease and security in global financial transactions. This prepaid card empowers users to conduct international online purchases, ensuring accessibility and convenience wherever Mastercard is accepted, including various digital platforms and e-commerce sites. Transactions will be seamlessly managed through a dedicated mobile application, offering efficient card management capabilities. This initiative is part of a broader five-year strategic agreement between Mastercard and the Cooperative Bank of Oromia, aimed at expanding financial services and stimulating economic growth within the region. The implementation of Mastercard’s Community Pass technology signifies a groundbreaking advancement for digital inclusion in rural and underserved areas. Currently operational in five markets globally, Community Pass boasts a user base exceeding five million individuals. One of its digital services, Farm Pass, facilitates the connection of farmers and agricultural cooperatives to the agricultural marketplace and financial services, even in offline settings.

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The Ethiopia-Djibouti railway is the first standard-gauge railway in East Africa and a flagship project between China and the two countries under the Belt and Road Initiative (BRI). Having created more than 55,000 jobs for locals, the railway has greatly strengthened connectivity between Ethiopia and Djibouti and injected strong impetus into their economic and social development, Chinese Foreign Ministry spokesperson Wang Wenbin said on Tuesday. A Chinese saying goes, "It is more important to teach people how to fish than just giving them fish." The Ethiopia-Djibouti railway is a good example, Wang said at a regular press conference. China has not only constructed a modern railway in cooperation with Ethiopia and Djibouti, but also trained more than 2,800 local professionals, helping build an excellent local team, Wang said. The Chinese management consortium of the Ethiopia-Djibouti railway recently transferred management responsibility to Ethiopia and Djibouti after six years of successful operation. Since entering commercial operation on January 1, 2018, the 752-kilometer-long Ethiopia-Djibouti railway has operated over 2,500 passenger trains with a passenger volume of 680,000. It has also operated more than 7,700 freight trains, with a cargo volume of 9.5 million tons in the same period, according to data the Chinese management contractor sent to the Global Times. China will continue to cooperate with Ethiopia and Djibouti to build the railway toward win-win cooperation and prosperity, and will jointly promote the high-quality development of the BRI and contribute to the mutual development of China and Africa, Wang said. After handing over management responsibility, the Chinese side will continue to provide technical support. The two sides also plan to continue cooperation in expanding supporting facilities so as to better unleash the potential of the railway to bring benefits to local people, Dai Hegen, chairman of China Railway Construction Corp, which is a contractor of the railway, was quoted as saying in a press release.

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Like a lot of countries on the African continent, Ethiopia has an exceptionally low motorisation rate. Ethiopia has a population of 126 million people, but the total number of vehicles registered in Ethiopia is around 1.2 million. Most of these vehicles are over 20 years old. According to reports and announcements from the Ethiopian government, Ethiopia had a plan to catalyse adoption of electric vehicles in Ethiopia with a 10 year target to see 148,000 electric cars and close to 50,000 electric buses on Ethiopia’s roads by 2030. However, Ethiopia has made incredible progress on this path to the extent that the Ministry of Transport and Logistics recently said that this target of over 100,000 electric vehicle has already been met in just the first 2 years of this plan! How cool is that? Due to this incredible progress, the target has since been bumped up to close to 500,000 in the 10-year period. Let’s take a moment to take this all in. So, in just 2 years, locally assembled EVs and imported EVs have added almost 10% of Ethiopia’s current total ICE vehicle registrations! Let us say that all the vehicles in the current fleet stay on the road for the next 8 years (highly unlikely) and the total fleet will then be 1.7 million. If the target is met, it would mean the penetration of electric vehicles in Ethiopia’s total fleet will be close to 30% at that time. This will be quite a remarkable feat. Of course, the actual number will be more than 30%, as a lot of the vehicles in the current ICE fleet will be retired by then. Also, given the extremely low motorisation in Ethiopia, vehicle sales should grow at a much faster rate going forward, and probably the penetration of EVs in the country’s total fleet will hit close to 50% by then.

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The Chinese-built Ethiopia-Djibouti Railway on Friday celebrated its achievements in six years of commercial operation, with China officially ending its operational and maintenance services for the line.

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Addis Ababa, May 11/2024(ENA) The MoU Ethiopian Airlines signed with the Prime Minister's Office for the management of the 'Dine for Ethiopia' lodges marks a significant milestone in tourism industry, reinforcing destination for global travelers, according to Ethiopian Airlines Group.

Recall that Ethiopian Airlines had signed a memorandum of understanding (MoU) with the Prime Minister's Office for the management and operation of the 'Dine for Ethiopia' lodges under Ethiopian Skylight Hotel in a warm ceremony held in Addis Ababa.

Under the terms of this strategic partnership, Ethiopian Skylight Hotel will assume responsibility for operating and managing the astonishing Chebera Churchura Elephant Paw Lodge, Halala Kella Lodge, Gorgora Ecolodge and Wonchi EcoLodge.

The partnership aims to elevate the tourism experience in Ethiopia through utilizing Ethiopian Airlines Group’s extensive expertise in the hospitality industry, ensuring the provision of unparalleled services to visitors.

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Ethiopian Airlines Group, a leading airline in Africa, is excited to announce the signing of a memorandum of understanding with the Prime Minister’s Office. This agreement pertains to the management and operation of the ‘Dine for Ethiopia’ lodges located within the Ethiopian Skylight Hotel. The signing ceremony took place in a warm atmosphere in Addis Ababa. In this strategic partnership, Ethiopian Skylight Hotel will take on the responsibility of managing and operating several remarkable lodges, including the Chebera Churchura Elephant Paw Lodge, Halala Kella Lodge, Gorgora Ecolodge, and Wonchi EcoLodge. The primary goal of this collaboration is to enhance the tourism experience in Ethiopia by leveraging Ethiopian Airlines Group’s extensive expertise in the hospitality industry. This partnership is aimed at ensuring that visitors receive unparalleled services during their stay. Commenting on the signing ceremony, Ethiopian Airlines Group CEO Mesfin Tasew said, “Tourism and air transport services are closely related industries. In addition to transporting passengers and cargo, Ethiopian Airlines has been working at a high level to promote tourism in our country. We are delighted to join hands with the Prime Minister’s Office to elevate the hospitality experience in Ethiopia. Ethiopian Airlines Skylight hotel is renowned for its commitment to excellence, and we are excited to extend our expertise to these remarkable lodges.”

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Toppan Gravity Ethiopia (TG), a joint venture formed between the Ethiopian government and Japanese conglomerate Toppan Gravity, has kicked off the construction of a security printing facility in Bole Lemi Industrial Park. The $55 million project, expected to conclude in one year, will create a plant capable of producing 5.6 million biometric passports, 28 million banking cards, and physical prints of digital ID cards annually. According to Kalkidan Arega, CEO of Toppan Gravity Ethiopia, the investment was born as a result of Ethiopian Investment Holdings identifying a gap and an opportunity that existed within the security printing sector. Discussions with Toppan Gravity, a subsidiary of Toppan Holdings, a Japanese multi-billion-dollar global printing conglomerate, began last year. Now establishing their first footprint in Africa, their project with the Ethiopian government also looks at the continental market. Toppan holds a majority stake (51%) in the joint venture, while the remaining shares are owned by Ethiopian partners (Ethiopian Investment Holding, Berhanena Selam Printing Enterprise, and Educational Materials Production and Distribution Enterprise).

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Ethiopia's capital, Addis Ababa, has become the next stop for the ongoing Regional CAF Club Licencing Workshops, which are geared at equipping all of CAF’s 54 Member Associations with the essential tools and knowledge to best implement CAF Club Licencing regulations.

Following a successful kick-off last month in Mauritania followed by Algeria, the East African nation of Ethiopia has become the third stop for the four-nation series of workshops spearheaded by CAF Professional Football Department.

For this edition, a total of 16 African nations have gathered at the nation’s capital for the four-day workshop currently taking place between 09 – 12 May and will see all participating Member Associations delving deep into CAF Club Licensing matters as follows:

• Updates on the usage of the CAF Club Licensing Online Platform (CLOP) for the club licensing procedure.
• Review of the status of the implementation of CAF Club Licensing System in the Member Associations' national competitions.
• Ensuring that the Member Associations are ready to communicate the licensing decisions before the set deadline for clubs' engagement in CAF Inter-club competitions 2024-25 (men's and women's).
• Conducting a refresher session on stadium pre-inspection procedures.
• Train Club Licensing Managers (CLM) in using the CLOP, specifically the stadium module.
• Conduct practical on-site stadium inspection training.

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The Mastercard Foundation, in partnership with Kifiya Financial Technology, launches a $100 million program that aims to make uncollateralized digital lending the new normal for micro, small, and medium enterprises (MSMEs). Dubbed the Sustainable Access to Finance to Enable Entrepreneurship (SAFEE) Program, the initiative is designed to unlock resources from banks, innovate new models/products, and solve challenges that have traditionally constrained MSMEs’ access to financial services. SAFEE, which will run for five years, will see the development and launch of several digital financial products targeting MSMEs. The program also provides technical assistance for financial institutions to transition from conventional collateral-based lending to uncollateralized, digitally enabled, credit-score-based lending and embrace new modes of financial service delivery. “Our partnership with the Mastercard Foundation will enable the unlocking of uncollateralized credit products ranging from digital working capital, invoice financing, inventory credit, buy-now-pay-later, and interest-free banking that address the needs and demands of MSMEs,’ said Munir Duri, founder and CEO of Kifiya Financial Technology “The program is catalytic by design to enable the financial sector transition through system-level change support where uncollateralized digital credit for MSMEs becomes the new normal,” he added.

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Safaricom has expressed openness to listing Safaricom Ethiopia on the Ethiopian Securities Exchange in the future. Peter Ndegwa, CEO of Safaricom, who made the remark today, May 9, 2024, at a media briefing, stated Safaricom Ethiopia’s intention is to set up a business that is Ethiopian. And part of that in the future is to consider further integrating Ethiopian participation into their business model. “We are aware of the Ethiopian government’s efforts to establish frameworks for companies to issue equity and bonds. As these frameworks mature, we will assess when to take advantage of them,” said Peter. Safaricom is the majority shareholder in Safaricom Ethiopia, with 25% of the company listed on the Kenyan Exchange. “All our other partners [in Safaricom Ethiopia] have a lot of experience with listings,” stated Peter. “Currently, we rely primarily on capital from our key shareholder to operate our Ethiopian business. However, as the markets and frameworks mature, we will explore options for local investor participation through corporate bonds or equity offerings,” the CEO added. The state-owned telecom operator, Ethio Telecom, is slated for a 10% listing on the upcoming Ethiopian Securities Exchange (ESX) this year. This initial public offering (IPO) is expected to be a key launchpad for the exchange.

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Ethiopia’s Minister of Water and Energy Habtamu Itefa Geleta will participate at the South Sudan Oil & Power (SSOP) 2024 conference and exhibition. Minister Geleta is expected to share his country’s experience in developing clean energy capacity and call for more power infrastructure investments. Ethiopia is Africa’s largest hydropower market and has embarked on a strategic diversification of its energy mix. As such, the minister’s attendance during this year’s summit is poised to showcase an efficient, secure, affordable and sustainable power sector as vital to Africa’s economic growth and transformation. Organized by Energy Capital & Power, SSOP 2024 positions South Sudan at the center of investments and partnership in the East African energy landscape. Taking place in Juba on June 25-28, the conference and exhibition invites investors to explore and engage with opportunities across the hydrocarbons, renewable energy and power sectors.  In April 2024, the Ethiopian government and the World Bank signed loan agreements worth $1.72 billion to enhance the country’s electricity and water supply. Under the agreement, $523 million will be allocated to expand the country’s electricity network and boost renewable energy generation. $500 million will be directed towards facilitating the movement of food to markets. Meanwhile, the African Development Bank approved a $104 million grant to finance a transmission project to improve Ethiopia’s electricity supply. The project will involve the construction of 157km of transmission lines and will include associated substations near the cities of Harar, Jijiga and Farem.

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• Kenyan unit’s operating profit jumps 20% to $1 billion

Safaricom Group Plc reported lower-than-expected annual profit after the Kenyan telecommunications giant’s unit in neighboring Ethiopia booked losses in its first full year of operations.

Net income rose 1.2% to 62.99 billion shillings ($479.2 million) in the year through March 31, the Nairobi-based company said in a statement Thursday, missing the 67.6 billion-shilling median estimate by analysts in a Bloomberg survey. Its Kenyan unit reported $1.07 billion in operating profit, the first time that the measure exceeded the billion-dollar mark.

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An Ethiopian industry institution has revealed that coffee exports have earned the African country over $835 million in revenue over the past nine months. According to the East African, the country exported 174,596 tons of coffee to the international market during the first nine months of the current Ethiopian 2023/24 fiscal year that started on July 8, 2023, the Ethiopian Coffee and Tea Authority (ECTA) said. Ethiopia in this fiscal year has also managed to create new markets outside of its traditional coffee-importing countries, according to Shafi Oumer, ECTA Deputy Director-General. Data from the ECTA revealed that China, the United Arab Emirates and Sudan are becoming top destinations and massive importers of Ethiopian coffee. Ethiopia’s traditional coffee importers include Saudi Arabia, South Korea, the United States, Germany and Japan. They have been the major destinations of Ethiopia’s coffee exports over the years. Ethiopia is globally recognized as the home of Arabica coffee, a distinct strain of coffee found almost exclusively in the country. The country remains Africa’s largest producer and exporter of coffee. Ethiopia’s economy is led by its agricultural sector, and coffee production is the backbone of the agricultural sector in the country. Ethiopia is globally recognized for its production of rich coffee quality and flavor ranging from winy to fruity and chocolatey. The country’s coffee is in great demand across the globe.

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State Secretary and Special Envoy for International Climate Action at the Federal Foreign Office of Germany Jennifer Morgan issued a statement prior to her visit to Ethiopia, Nigeria and Kenya. In her statement Jennifer Morgan disclosed that she will hold bilateral talks with Ethiopian officials in Addis Ababa, with the focus on the energy transition and climate policy. She added that she will exchange views with the African Union, particularly on climate and security. “At every stage of my trip I will engage in discussion with national and international partners and representatives of civil society and business on the local situation, the extent of climate damage and above all on sustainable and at the same time economically attractive solutions,” she noted. “After all, these countries are important partners for Germany and the EU in the green transition and have considerable scope to benefit from the global energy transition,” the German Special Climate Envoy added. Africa is a continent which has a huge role to play in the energy transition, she affirmed, adding: “The massive potential of renewables opens up opportunities for the people there and for cooperation with us in Europe.”

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Hibret Bank and Mastercard have partnered to introduce Prepaid Hibir Mastercard services in Ethiopia. This collaboration represents a significant milestone in Ethiopia’s journey toward financial digitization. It’s said that the Prepaid Hibir Mastercard offers customers secure and convenient international banking experiences by providing access to foreign currency for overseas travel and international transactions wherever Mastercard is accepted. This card features a dual-interface that supports both contact and contactless transactions, making it a versatile financial tool for ATM withdrawals and point-of-sale purchases. Customers can also reload funds at any Hibret Bank branch, which is aimed to ensure a secure and user-friendly solution for individuals engaged in foreign trade, travel, and cross-border transactions. Hibret Bank’s CEO, Ato Melaku Kebede, emphasized the institution’s commitment to innovation and collaboration. He stated, “Launching the Prepaid Hibir Mastercard is a testament to this, marking a significant step towards our mission of digital financial inclusion.” Melaku highlighted the bank’s investments in technology and partnerships, which have not only fostered local innovation but also improved service security and customer experience. Mastercard’s Senior Vice President and Country Manager for East Africa and Indian Ocean Islands, Shehryar Ali, underscored the importance of the alliance with Hibret Bank, stating, “This service is more than just a payment solution; it is a bridge for Ethiopians to access the global market with ease and security.” The collaboration aims to foster financial inclusion and digitization not only in Ethiopia but across Africa. The launch of the Prepaid Hibir Mastercard is supported by Premier Switch Solutions (PSS), Ethiopia’s trusted third-party processor for electronic transactions between banks.

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Ethiopian sustainable tech startup Kubik has scored a first for the country. According to a press release sent to AFROTECH™, it has raised $5.2 million in a seed round. Investors include East African venture capital firm African Renaissance Partners, Endgame Capital, and King Philanthropies. It will now further its work in using plastic waste to make affordable buildings and removing waste from the environment. “Kubik’s vision to build safe and affordable living for all speaks directly to King Philanthropies’ mission to catalyze solutions at the intersection of climate and livelihoods,” Kartick Kumar, managing director at King Philanthropies, said in a press release. “Kubik is at the forefront of innovation in Ethiopia and across the African market, and we’re proud to support the tremendous impact they’re making combatting plastic waste and providing safe, durable, and affordable housing.”

The funding round makes Kubik the first Ethiopian country to earn a multi-million-dollar investment in the area of climate and sustainability solutions, the press release notes.

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Kenyan companies are buzzing with excitement after Ethiopia announced plans to further open its retail and wholesale trade market to foreign investors.

Kenyan companies are buzzing with excitement after Ethiopia announced plans to further open its retail and wholesale trade market to foreign investors.

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A renowned developer of virtual sports and numbers games, Kiron Interactive strengthens its position in Ethiopia through a deal with Hulu Sport, a leading operator in the market. Deal with Hulu Sport: Thanks to the extended deal with Hulu, Kiron will launch its renowned Mobile Lite Football Leagues product. Before establishing a new deal, Kiron integrated its unique portfolio of products into Hulu through its omnichannel Betman platform, and the products were available in both retail and online channels. Now, the partners went further and decided to publish the new Hulu League. The new product is specifically designed to suit the needs of the players in markets with limited bandwidth. It is actually a customized version of the company’s famous virtual football product, tailored to allow playing on mobile devices where the other ways to play aren’t possible or easily available. Players from Ethiopia will get a chance to enjoy incredible virtual football games, along with unique betting experiences, and Hulu will upgrade their mobile offering with the new product, one of those that made Kiron Entertainment one of the industry leaders. Steven Spartinos, Kiron Co-CEO, said: “We are honored to extend our partnership with Hulu Sport, one of Ethiopia’s leading operators. The launch of the Hulu League demonstrates our commitment to delivering innovative and tailored products that meet the specific needs of our partners and their players. “We look forward to working closely with the Hulu Sport team to ensure the success of this new bespok offering and to exploring further opportunities to enhance their product portfolio with our cutting-edge virtual sports content.”

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The recently designated World Health Organization (WHO) Representative to the Federal Democratic Republic of Ethiopia, Dr. Owen Laws Kaluwa, formally presented his credentials to H.E. Melaku Bedada, Director General of Protocol Affairs at the Ministry of Foreign Affairs, marking the official commencement of his tenure in Ethiopia. Offering a warm reception to Dr. Kaluwa, the Director General, H.E. Melaku Bedada, expressed deep appreciation for WHO's strong commitment in deploying expertise and resources towards attainment of universal health coverage in Ethiopia. The Director General underscored WHO's substantial contributions to Ethiopia's healthcare system, emphasizing the anticipation surrounding Dr. Kaluwa's tenure. He expressed confidence in Dr. Kaluwa's ability to further strengthen the strong partnership between WHO and Ethiopia across various health endeavors, including proactive responses to emergencies and addressing humanitarian crises. The two parties discussed the enduring alliance between Ethiopia and the World Health Organization and their commitment to safeguarding public health and advancing the noble aspiration of 'Health for All.' Similarly, Dr. Kaluwa has paid a courtesy visit to the Ethiopian Minister of Health, H.E. Dr. Mekdes Daba, as a gesture of goodwill, collaboration, and dedication between the Ministry of Health Ethiopia and the UN's Health Agency in advancing public healthcare endeavors in Ethiopia. Dr. Mekdes Daba expressed her ministry's resolute dedication to further strengthening the partnership, collaboration, and cooperation with WHO and serving the community collectively. She also expressed readiness to work closely with the new Representative of the country office. The Minister emphasized the World Health Organization's significant role in capacity building for health workers, outbreak and emergency response, and various other health interventions. She stressed the need for enduring support from WHO in emergency preparedness and response activities across the country, particularly in bolstering the capacity to predict, prepare, and respond to diverse emergencies. Furthermore, she solicited WHO Ethiopia's support and collaboration in local pharmaceutical and vaccine manufacturing and quality assurance, anticipating benefits for other countries in the WHO AFRO region. Both parties also discussed intensifying collaboration on healthcare worker capacity development and post-conflict restoration of health facilities in conflict-affected areas, emphasizing the need to collaborate with other partners and agencies.

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• Kubik, an Ethiopian startup that recycles plastic waste into low-cost, environmentally friendly building materials, has raised $1.9 million in a seed extension round to expand its operations.

• The funding comes from African Renaissance Partners, an East African venture capital firm; Endgame Capital, a climate tech investment syndicate; and King Philanthropies, a climate and extreme poverty investor.

• This development comes as the startup expands its operations in Ethiopia following the opening of its factory in Addis Abeba, which converts plastic waste into interlocking building materials such as bricks, columns, beams and jambs.

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Right in the Horn of Africa, Ethiopia has a history deeply intertwined with Christianity. As one of the oldest Christian nations in the world, Ethiopia claims faith that can be said to predate the arrival of Christianity in Europe – even if just by a few years. This deep-rooted tradition has fostered a unique variety of Christian spirituality that remains vibrant and very much alive today. The story of the Ethiopian eunuch told in the book of Acts (Acts 8, 26-40) offers a glimpse into the early seeds of Ethiopian Christianity. The text claims that “a eunuch, a court official of Candace, queen of the Ethiopians, who was in charge of all her treasure” met the missionary Philip on a pilgrimage to Jerusalem. Philip explained the Gospel message and the eunuch, filled with joy, converted and was baptized. This encounter is believed to have sparked the spread of Christianity in Ethiopia. In hisAdversus Haereses,St. Irenaeus claims the eunuch “was  sent into the regions of Ethiopia, to preach what he had himself believed, that there was one God preached by the prophets, but that the Son of this (God) had already made (His) appearance in human flesh, and had been led as a sheep to the slaughter; and all the other statements which the prophets made regarding Him.”

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Safaricom Telecommunications Ethiopia has ambitious plans to triple its telecom tower network over the coming three years, set to invest more than USD 1.5 billion to extend its coverage across the country despite the obstacles posed by security concerns. The company currently operates a network of 2,500 towers, 1,000 of which it leases from the state-owned Ethio telecom, according to Wim Vanhelleputte, CEO of Safaricom Ethiopia. The private telecom operator has coverage in Addis Ababa and 26 other urban areas as well as on roads. But this is far from the target, according to Vanhelleputte, who was appointed CEO last July. “The country is very big; we aren’t even half way, and we need up to 7000 towers to really cover the entire population” he told The Reporter. Safaricom Ethiopia’s expansion goals, many of which are part of the terms it agreed to when it won the bid for the country’s first private telecom operator’s license in 2021, have been aided by duty exemptions on the import of equipment. But the CEO notes that Ethiopia’s security issues pose a major hurdle. “We would love the whole country to be open, but now there are parts of the country where we cannot provide data services because of unresolved security troubles,” said Vanhelleputte. “I really hope in the next two or three years that the entire country opens up.” The CEO of Safaricom Ethiopia observes the security concerns will make it difficult to achieve the targets set out in the country’s 10-year digitization plan, while limited access to smartphones and limitations in regulation and policymaking also pose challenges. The effectiveness of Safaricom’s network coverage expansion efforts hinges on public access to smartphones, which Vanhelleputte and his team worry is too low. Safaricom Ethiopia estimates 25 million, or one in five Ethiopians owns a smartphone. It is a figure that the CEO wants to see rise by three or four folds. The figure also contrasts with data from Ethio telecom, which estimates there are less than 15 million smartphones active in the country.

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Kenyan Insurtech firm Pula has made its first payout of 39.4 million birr to 51,000 smallholder farmers in Ethiopia.

According to the announcement made at Pula’s Area Yield Index Crop Insurance Payout Event held today, April 25, 2024, the initiative, implemented during the 2023 Meher season, insured over 122,000 farmers against climate risks.

The payout is the result of a public-private partnership (PPP) between the Agricultural Transformation Institute (ATI), the World Food Program (WFP), and Pula. Funding is provided by the German Federal Ministry for Economic Cooperation and Development (BMZ) through the KfW Development Bank.

Pula’s insurance product safeguards farmers’ investments, particularly in fertilizers. In the event of a disaster, the payout ensures they have financial resources to purchase essential agricultural supplies for the next planting season.

To obtain insurance coverage, farmers pay a premium of 338 birr per bag of purchased fertilizer. In the event of a disaster, they receive a payout.

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Addis Ababa is inching closer to becoming the ninth hub of UNDP’s Timbuktu Initiative, a pan-African program with a one-billion-dollar innovation fund to empower startups.

The Initiative represents a new model of development. It convenes key stakeholders to tackle multiple challenges simultaneously, from startup-friendly legislation and “world-class” development programs to mitigating investment risks. Initiatives like UniPods—University Innovation Pods—established across Africa are central to this approach.

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The International Center for Strategic Alliances proudly presents the 15th Edition Connected Banking Summit – Innovation and Excellence Awards 2024; Ethiopia in Addis Ababa, scheduled for August 14th, 2024. Under the theme Under the theme “Bolstering the Economy with Digitization and Financial Inclusion”. Esteemed global executives, experts, and leaders will convene to drive the banking industry forward into a new era of innovation and excellence. This summit, in collaboration with the prestigious Connected Banking Innovation & Excellence Awards, will assemble a distinguished cohort of leaders and experts from across the region. From banks to insurance companies, innovative FinTechs and TechFins to digital and neo-banks, non-banking financial organizations, cooperatives, investment funds, and asset management companies, attendees will participate in insightful discussions, deliberations, and knowledge-sharing sessions focusing on the transformative impact of integrated solutions on the future of banking. Accompanied by leading experts from global brands, the summit will explore the profound influence of technologies such as AI, ML, deep learning, cognitive computing, digital assets, and more on the financial services ecosystem, shaping the trajectory of the industry. The Connected Banking Summit Series provides an unparalleled platform for networking and interaction, facilitating engagement with key industry players, C-suite executives, senior managers, decision-makers, and practitioners spearheading the adoption of cutting-edge banking technologies.

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In Ethiopia, an extraordinary case has emerged, with reports of a woman who claims she hasn’t eaten or drunk anything for the past 16 years. This woman, known only by her first name, Alemitu, resides in a remote village situated in the Amhara region. According to local media reports, Alemitu fell ill 16 years ago, and since then, she maintains that she has neither consumed any food nor liquids. Despite this astounding claim, she appears to be in good health and displays normal vital signs. Doctors who have examined her are reportedly perplexed by her assertions. While there have been documented cases of individuals surviving for extended periods without food or water under extreme circumstances, such instances are typically associated with medically induced comas or situations involving exceptional medical intervention. Alemitu’s case, if proven true, would defy established medical science. Given the extraordinary nature of her claim, skepticism naturally surrounds it. Some experts suggest that Alemitu may be inadvertently consuming small amounts of fluids or food, which go undetected. Others posit that psychological factors might be influencing her situation.

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Safaricom -NSE: SCOM has launched the Connect Academy, a program that will offer premier industrial training for fiber optic technicians. Announced on the sidelines of the Connected Africa Summit 2024, the academy aligns with Safaricom’s commitment to investing in robust fiber optic networks in Kenya and Ethiopia and the ICT Authority’s initiative to roll out extensive fiber networks, public Wi-Fi hotspots, and Digital Village Smart Hubs. Public- private partnerships The Connect Academy is part of the Presidential DigiTalent Program, a Public-Private Partnership Program whose key components are skill development, on-the-job coaching, mentorship, training, certification, and ICT innovations. Chief Consumer Business Officer for Safaricom, Fawzia Ali-Kimanthi, said “Our target is to grow a world-class broadband connectivity talent pool for both public & private sectors in partnership with TVETs. This will create employment and a career path for Kenyan youth who lack higher education. We intend to have the first cohort of 200 begin in May. They will go through a full day of training offered by our engineers every Friday for three months. We will also engage with TVETs to have fixed broadband included as part of their curriculum to grow the workforce.” The Connect Academy, to be implemented in partnership with the ICT Authority, will commence as a training program and evolve into a fully-fledged academy. It aims to provide extensive training programs aimed at cultivating highly skilled fiber optic and fixed wireless technicians. Participants will acquire hands-on experience, theoretical knowledge, and practical skills necessary for successful network deployment.

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Drinking coffee takes time in Ethiopia, a nation of caffeine lovers. In her village in Kafa, Ethiopia’s coffee heartland, Hagre Bekele starts by roasting the raw green beans over an open fire. Then she grinds them by hand and brews them in a jebena, a bulbous, long-necked clay pot. The drink is ready when the coffee boils and almost overflows.

Her son, Abraham, serves the drink in small cups, filled to the brim, alongside thick chunks of bread and handfuls of roasted grains, a snack called kolo. When the first cup is drunk, Hagre brews the grounds twice more. Generally, it is considered rude not to offer three cups. She also burns incense: its aroma enhances the coffee’s taste, and some believe it keeps bad spirits away.

The whole process lasts about an hour. To make things more efficient, and to ensure they get a regular caffeine fix throughout the day, Hagre shares brewing duties with her neighbours. Hagre is in charge of the lunchtime coffee, while her neighbour, Woynitu Gebre, takes care of the morning round. In the evening, everyone goes to Hagre’s mother-in-law’s. It is a system they have had in place for decades and one replicated, in various forms, in millions of homes every day across Ethiopia.

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Africa’s biggest coffee producer has revised rules to allow foreign companies to buy the commodity directly from farmers and processors, the latest in reforms to liberalize East Africa’s biggest economy.

Until now Ethiopia — which prides itself as the birthplace of coffee — required buyers such as Starbucks Corp., Volcafe Ltd., Louis Dreyfus Co., Olam International Ltd. and Sucafina SA to purchase shipments from local companies.

Controls have also been lifted off other commodities including oilseeds, pulses, hides and skins, forest products, poultry and livestock, but not on fertilizer, which Ethiopia subsidizes.

“The sectors were reserved for local investors to protect and encourage them,” said Hanna Arayaselassie, head of the Ethiopian Investment Commission. “However, we did not see as many local companies engaging with these businesses as we had hoped, nor did we see many local companies upgrading themselves and getting involved in the manufacturing sector.”

Foreign traders that purchased at least $10 million’s worth of coffee annually for the past three years will qualify for the permits, according to the new directive.

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On the sidelines of the 2024 Spring Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG), an Ethiopia-US Business and Investment Forum was organized by the Ethiopian Embassy in Washington, D.C., in collaboration with Wafa Marketing & Promotion. The forum attracted approximately 150 investors from Ethiopia and the United States, providing a platform to elucidate and deliberate on Ethiopia’s investment prospects and business environment. According to the Embassy, the event also served as a valuable networking opportunity for the investors in attendance. The forum highlighted Ethiopia’s status as a leading trade and investment hub, ranking among the top 5 in Africa for Foreign Direct Investment (FDI). Recent technology collaborations with industry giants such as Google, Meta, Databricks, and Palantir underscore the nation’s favorable business environment. It was indicated during the forum that promising advancements and growth in aviation, IT, AI, as well as workforce development, coupled with abundant opportunities across sectors including textiles, mining, finance, and telecom, position Ethiopia as a key priority for Foreign Direct Investment.

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Wingu Africa, a data center provider in Ethiopia, has achieved Tier III certification for its facility located in the ICT Park. This designation, awarded by Uptime Institute, the global authority on data center standards, makes Wingu Africa the first company in Ethiopia to have its data center infrastructure certified as Tier III. Data center tiers are a standardized ranking system that reflects the reliability of a facility’s infrastructure. This classification ranges from Tier 1 (least reliable) to Tier 4 (most reliable). “This significant investment underscores our commitment to bringing the highest quality digital infrastructure to Ethiopia and East Africa,” said Nicholas Lodge, Chief Strategic Officer at Wingu Africa Group Limited, in a press release. While Uptime Institute has issued Tier Standard certifications in 114 countries, including 2645 awards globally, Wingu Africa is the only data center operator in Ethiopia to hold facility certification (as opposed to design certification held by Raxio Data Center, Zemen Bank, and Commercial Bank of Ethiopia). Uptime Institute has awarded 2,645 certifications across 114 countries for their Tier Standard. In Ethiopia, Raxio Data Center, Zemen Bank, and Commercial Bank of Ethiopia hold Tier III certification for their data center designs. Meanwhile, Wingu Africa is the sole holder of certification for the facility.

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With participation from key Ethiopian coffee institutions, the nonprofit Cup of Excellence (CoE) has announced the 2024 return of the Ethiopia Cup of Excellence green coffee competition and auction program. Following the inaugural Ethiopia CoE in 2020, in which the auction of 28 winning lots generated US$1.34 million, the Ethiopia auction in 2022 saw the highest price ever paid for an Ethiopian coffee, at an astounding $400.50 per pound. The Ethiopia CoE was suspended in 2023 after specific funds from the United States government’s Feed the Future’s Value Chain Activity (FTFVCA) were no longer available. This year’s event is being held through a partnership between CoE sibling nonprofit the Alliance for Coffee Excellence (ACE), the Ethiopian Coffee and Tea Authority and the Ethiopian Coffee Association. According to CoE, which announced the Ethiopia program’s return during the 2024 SCA Expo this past weekend in Chicago, the 2024 event will come to Addis Ababa at some point in mid July.

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Sisay Lemma of Ethiopia set a blistering pace and held on to win the Boston Marathon on Monday, running alone through most of the course to finish in 2 hours, 6 minutes, 17 seconds — the 10th fastest time in the race's 128-year history.

Hellen Obiri defended her title in the women's race, outsprinting fellow Kenyan Sharon Lokedi down Boylston Street to win by eight seconds. Obiri is the first woman to win back-to-back Boston Marathons since 2005.

Lemma arrived in Boston with the fastest time in the field, becoming just the fourth person ever to break 2:02:00 when he won in Valencia last year. And the 2021 London champion showed it on the course, separating himself from the pack in Ashland and opening a lead of more than half of a mile.

Lemma ran the first half in 60:19 — 99 seconds faster than Geoffrey Mutai's course record pace in 2011, when he finished in 2:03:02 — the fastest marathon in history to that point. Fellow Ethiopian Mohamed Esa closed the gap through the last few miles, finishing second by 41 seconds; two-time defending champion Evans Chebet was third.

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Five Ethiopian investment firms have come together to establish the Madeg Partnership, which aims to source investment opportunities on behalf of a Japanese venture capital (VC) firm. The partners—Icon Solutions, Araya Venture Lab, Melela Partners, Pragma Capital, and Neftalem Consulting—are currently scouting for viable local companies and constructing a due diligence process that utilizes their collective expertise to pinpoint scalable local investments. “We believed there was value in pooling our collective experience to assist investors in identifying investment opportunities and viable companies in Ethiopia, with a foundational understanding of the overall risks of the Ethiopian market, which we all comprehend well,” Amity Weiss, Managing Partner at Melela Partners, told Shega. The team made contact with the potential investor, whose identity will be disclosed next week, at last year’s Enkopa Summit. “This investor, interested in Ethiopia, faced challenges in identifying suitable investment opportunities independently. We saw an opportunity to bridge this gap and facilitate a connection,” added Amity.

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The UK's removal of the 8 percent tariff on cut flowers for two years effective today will increase Ethiopia's flower export, Ethiopian Horticulture Producer Exporters Association Executive Director, Tewodros Zewdie told ENA.

The UK's tariff on cut flowers will be suspended for two years from 11 April 2024 to 30 June 2026, allowing the entry of unlimited quantities of flowers at zero percent tariff, even if they transit via a third country.

Tewodros said the move will boost Ethiopia’s flower export.

The decision will increase the competition of flower producers in Ethiopia in delivering their products to their customers in UK, he stated.

For him, the removal of the tariff is a great opportunity and stressed the need to strive for the maximum benefit.

The support to the sector, including land supply and administrative assistance, should be improved to increase investment in the horticulture sector, he urged.

Ethiopia is the second largest cut flower producer in Africa, making up 23 percent of Sub-Saharan African exports.

In 2023, the value of trade in cut flowers between the UK from Ethiopia was valued at 12.6 million Euros.

The removal of 8 percent duty for cut flowers is a big win for major flower growing countries including Ethiopia, Kenya, Rwanda, Tanzania, and Uganda.

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 Ethiopia is setting its sights on becoming a continental leader in startup innovation.

Following the launching of the Startup Ethiopia Forum yesterday in the presence of Prime Minister Abiy Ahmed, a panel discussion was held at the Science Museum today.

Speaking on the occasion, Labor and Skill Minister Muferihat Kamil emphasized the government's proactive approach in supporting startups.

The minister also stressed the crucial role of collaboration between government institutions, the private sector, and international partners in nurturing the young businesses.

Industry Minister Melaku Alebel pointed out on his part the strategic importance of startups, particularly those in the technology sector.

"ICT is among the top priorities of the economic sector, and these startups will catalyze progress in other sectors," he added.

He also underscored the need for an enabling environment, including access to finance and international networks, to empower Ethiopian startups and contribute to the country's economic development.

Innovation and Technology State Minister, Baysa Bedada said "the enabling conditions the government has been creating since the reform implemented has been creating fertile ground for startups in the country to increase into an impressive 900 from 50 before the reform a few years ago."

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According to the finance ministry on Friday, Ethiopia and the World Bank have inked loan agreements worth a combined $1.72 billion to improve the country’s water and energy supplies and to make it easier for food to reach markets. According to a statement from the ministry, the bank would provide $523 million to improve the generation of renewable energy and develop the country’s electrical grid in the Horn of Africa. According to the announcement, an extra $500 million would fund two initiatives that will increase access to food markets by enhancing rural road networks.

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From initially planning to import 148,000 electric cars and 48,555 electric buses by 2030, the new target for 2030 is now 439,000 electric vehicles. What is not entirely clear is whether “electric vehicles” include both buses and cars. Either way, it’s a vast increase, owing to the unexpected demand for electric vehicles in Ethiopia.

The Ministry of Transport has created various tax incentives to accelerate the East African country’s transition to electric mobility with imports. According to the Minister of State for Transport and Logistics, Bareo Hassen, these include allowing electric vehicle parts to be imported into the country duty-free. Partially assembled electric vehicles that are finally assembled in Ethiopia are subject to a five per cent import tax, and fully assembled electric vehicles are subject to 15 per cent.

Although the import duties for combustion engines are not specified, Hassen only states that the new electric car rates are “significantly lower compared to the tax on petrol-powered vehicles”. The low tariffs are not only intended to boost the uptake of electric vehicles in the country, but also to encourage the private sector to invest in the import and final assembly of electric vehicles.

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Ethiopia’s plans to launch a stock market are taking shape, after the Ethiopian Securities Exchange (ESX) announced it had surpassed its capital-raising phase by over 200%.

• ESX was founded in October 2023 and is set to be the country’s first fully fledged securities market.
• Its founding shareholder is an investment arm of the Ethiopian government.
• ESX initially aimed to raise US$11.07 million, but it announced on Thursday that it had obtained US$ 26.6 million.

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The Central Bank of Kenya (CBK) says plans to separate M-Pesa from other Safaricom businesses is still on course, and a meeting with the telecommunication company’s board over the matter will happen in the near future.

• In 2022, CBK held talks with telecommunication companies with a view to separating mobile money activities from other businesses to enhance governance and minimize shocks on bank-related transactions.
• A bill before Parliament – Kenya Information and Communications (Amendment) Bill 2022 – is also seeking to make telcos have separate accounts and produce different reports for all their businesses.
• Safaricom’s M-PESA services continue to be the key cash cow for the business, contributing 42.1 per cent of the telcos revenue in the six months to 30th September 2023, up from 39.3 per cent in the same period in 2022.

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A new World Bank program is set to strengthen and expand the electricity network, improve sector financial viability, and enable renewable energy generation through private sector participation in Ethiopia. Ethiopia has the third largest energy access deficit in Sub-Saharan Africa with about half the population still without access to reliable electricity. Over the past decade, the Government of Ethiopia has made encouraging progress on its electrification program and expanded the grid network coverage to nearly 60% of towns and villages. Yet the electricity deficit in Ethiopia continues to exacerbate the poverty situation, preventing far too many people from fulfilling their basic socio-economic needs and limiting access to opportunity. For Ethiopia to continue to ramp up electricity access through grid connections, it is essential that the electric utilities and backbone infrastructure are fit for purpose. "Transforming the electricity sector in Ethiopia requires a medium-term approach to address interlinked structural and operational challenges and send a strong signal to the private sector. Through this program, the World Bank will partner with Ethiopia over the next 10 years with a financing envelope of up to $1.4 billion, to help the government crowd in other development partners and the private sector," said Wendy Hughes, World Bank Regional Director for Infrastructure for Eastern and Southern Africa.

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Ethiopian Airlines is taking off for a major expansion, adding new routes in Africa and Europe alongside increased flight frequencies. The airline's CEO recently announced plans to boost its domestic and international reach. More planes are on the horizon too, with Ethiopian Airlines acquiring additional Boeing aircraft to complement existing Airbus orders. The focus on expansion is clear, with Freetown, Sierra Leone, Warsaw, Poland, and cities in Botswana being eyed for new routes. The airline is committed to continual growth, and additional destinations will be evaluated for potential inclusion. Ethiopian Airlines has already hit the ground running this year with new flights to London Gatwick, Madrid, and Bangui, demonstrating its commitment to expansion. Looking ahead, the airline has ambitious plans to become a major global player. Its vision by 2035 includes reaching USD 25 billion in annual revenue and serving a staggering 67 million passengers. To achieve this, the airline plans to double both its fleet and destinations by that same year.

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Ethiopian Muslims gathered in large numbers in the country's capital, Addis Ababa, for the annual Grand Street Iftar, the meal that Muslims have when they break their fast in Ramadan. Preparations for the event unfolded throughout Wednesday and members of the community broke bread together later on thursday, celebrating the communal spirit of Ramadan. Muslims around the world are observing the holy month with worship, charity and dawn-to-dusk fasting. Organizers of the mass iftar anticipated a large turnout, mirroring the event's growing popularity over the past four years. Hikma Sani, a 17-year-old participant and volunteer coordinator, emphasized the importance of the spirit of community during Ramadan and the responsibility to support each other during the month of fasting. The exact date of the Grand Street Iftar depends on the sighting of the crescent moon, but it often falls on the 17th day of the holy month. This specific date holds special meaning for Ethiopian Muslims, as it marks the 7th century victory of Prophet Muhammad and his followers in the Battle of Badr, explained Abubeker Ahmed, a respected Islamic scholar and Grand Street Iftar coordinator. The date also coincides with Ethiopia's triumph over the Italian army at Adwa in 1896, when Ethiopian Muslim warriors bravely fought while observing the Ramadan fast, Ahmed said. The mass iftar offers participants a communal experience as they share a meal featuring traditional Ethiopian dishes such as injera bread, stews and vegetables.

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Audit and consultancy firm Deloitte is the first entity to secure a securities investment adviser licence for operation in Ethiopia ahead of the formal launch of the country’s Securities Exchange slated for the third quarter of this year. Deloitte applied for the licence out of its Nairobi office and has registered an office in Ethiopia to start operations in the budding capital markets. “We are thrilled to be the first licensed securities adviser in Ethiopia. This achievement underscores our commitment to the country's capital market growth and demonstrates our dedication to supporting our clients in the region,” said Tewodros Sisay, Deloitte Africa Advisory leader. “We are well-positioned to support businesses in Ethiopia to thrive and succeed in today's fast-paced and ever-changing business environment." According to Ethiopia’s Capital Markets Authority (ECMA), the debut issuance is earmarked to be the listing of 10 percent of the State-owned Ethiotelecom whose latest disclosures reveal that it registered ETB 11.0 billion ($193 million) in net profit for the six months ended December 2023.

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When Melaku Mulualem first arrived in China in 2011 to study at the China Foreign Affairs University, little did he know that this journey would be the beginning of a transformative experience, leading him to become a cultural ambassador between two nations thousands of kilometers apart.

Reflecting on his initial impressions of a "completely different China," Mulualem, now a senior researcher in international relations and diplomacy at the Ethiopian Institute of Foreign Affairs, acknowledged that his time in China not only broadened his academic horizons but also deepened his understanding of Chinese culture and its people.

"Before studying in China, my knowledge of the Chinese people and government was limited. But now, I am proud to be one of the few scholars who have published a book on Ethiopia-China relations," Mulualem said.

The book, "Africa-China Relations - Ethiopia as a Case Study," was published recently with support from the Chinese Embassy in Ethiopia. It highlights the diverse and historic ties between China and Ethiopia, as well as the broader China-Africa relations, exploring various aspects of engagement between the two sides.

Since his initial educational journey to China, Mulualem has returned to the Asian country seven times, participating in international seminars, training programs and other events. Through these experiences and engagements with Chinese counterparts, he has developed a profound understanding of China and its people, fueling his desire to bridge the cultural gap between Ethiopia and China.

Mulualem believes that Ethiopian and Chinese scholars, particularly those familiar with each other's cultures, have a dual responsibility to serve as bridges and shape the narrative of the mutually beneficial relationship between both sides.

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BGI Ethiopia’s legal wrangling pile up as the brewer adds a lawsuit from some of its largest distributors to the property sale saga with Purpose Black. Fourteen leading BGI distributors, accounting for nearly half of its network, accuse the company of a breach of contract by awarding their distribution market segments to new players. The distributors filed a legal suit in December 2023, seeking an injunction order on BGI’s new distribution contracts. The injunction has been granted. “We have a two-year contract with BGI to distribute its products in market segments assigned to us,” said Sintayehu Gebresellassie, president of the distributors’ association. “Legally, we have a year and a half before BGI gets the window to decide whether to onboard new distributors or continue with us. But BGI has overridden the contract and started giving away our market to new distributors.” The Reporter has confirmed BGI and the original distributors entered into a contract in July 2023. Members of the association have presented transaction receipts that indicate the new distributors contracted by BGI have already begun work in market segments assigned to their predecessors. Attorneys representing BGI Ethiopia filed a request for a reversal of the injunction with the Federal First Instance Court last month. Judges have rejected the plea.

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Addis Ababa, March 27/2024 (ENA) Dutch businesses in Ethiopia have invested at least one billion USD, making substantial contributions to Ethiopia's economic growth, Henk Jan Bakker, Ambassador of Netherlands to Ethiopia said. Highlighting the significant Dutch business presence in Ethiopia, the ambassador told ENA that nearly a hundred Dutch companies have invested in various sectors. Notably, the horticulture and floral industries have emerged as a prime destination for Dutch investments, contributing significantly to Ethiopia's foreign exchange earnings. These investments have propelled the Netherlands to become one of the largest destinations for Ethiopian exports, accounting for 10% of the country's total exports, Ambassador Bakker said. Dutch investments in Ethiopia primarily focus on agriculture, particularly horticulture and flowers, he said.

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28 March 2024, Addis Ababa: More than 750 women-led businesses impacted by the conflict in Afar, Amhara, and Tigray will receive support from resources mobilized through a UNDP crowdfunding campaign in partnership with the Ministry of Women and Social Affairs and the Great Ethiopian Run (GER).

UNDP, with fundraising implemented by GER, and with further contributions from the Ethiopia Diaspora Trust Fund (EDTF), the Japanese government, and other individuals secured $388,922.37 to support approximately 775 women out of an initial target of 1000 women-led business in the Rebuild Her Business crowdfunding campaign.

GER raised USD$50,000 (ETB 2,752,409.00) from its annual charity campaign known as “Running For A Cause” as part of its international 10km road race; USD $50,000 came from the Ethiopia Diaspora Trust Fund (EDTF), a non-for-profit organization incorporated in the USA that creates a powerful connection between those in need in Ethiopia with the diaspora; $288,500 from Japan Government and $1,816 (ETB 109,060.86f) from individual contributors.

“Rebuild Her Business generated one of our best ever responses to our annual charity campaign,” commented Dagmawit Amare, Managing Director of GER. “With our races we are always trying to bring communities together and promote development. These funds will help hundreds of women whose work is vital both to their own families and communities. We are delighted with the results of this initiative.”

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Safaricom’s M-Pesa to power Ethiopia-bound remittances

Ten days have passed since a glitch rocked the Commercial Bank of Ethiopia, causing significant disruption in Ethiopia’s financial sector. The system error, which occurred on March 16, 2024, allowed users to transfer funds exceeding their account balances and withdraw money from ATMs despite insufficient funds. The bank’s been tight-lipped about the exact numbers, saying they’re still investigating. But today, President Abe Sano of CBE finally held a press conference to spill the tea. The President revealed that retrieving the cash withdrawn from ATMs proved challenging, especially since some of the money had already been spent. And as initially alleged, nearly half of the stolen funds were traced back to university students, prompting the bank to even contact their parents for assistance. The minimum amount stolen was less than 5 birr, while the maximum amount stolen reached 304,000 birr. The glitch lasted from 9:38 p.m. to 2:45 a.m., totaling 5 hours. In total, the amount stolen amounted to 800 million birr. The scale of the illicit transactions was large, with 25,761 accounts involved and a total of 238,000 transactions recorded. Despite these challenges, efforts to recover the stolen funds have seen some success. As of the latest update, 623 million birr, representing 78% of the lost funds, have been recovered.

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Standing in front of a canvas in an art gallery in the heart of Addis Ababa, Ethiopia's capital, 50-year-old artist Dawit Muluneh is fully absorbed in the painting of ancient Chinese characters.

ADDIS ABABA, March 26 (Xinhua) -- Standing in front of a canvas in an art gallery in the heart of Addis Ababa, Ethiopia's capital, 50-year-old artist Dawit Muluneh is fully absorbed in the painting of ancient Chinese characters.

Surrounding him are collections of his artwork based on the Chinese classic "I Ching," or the "Book of Changes." The book has existed for more than 2,000 years and remains a source of Chinese culture.

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KEFI Gold and Copper is preparing for a robust launch in the Tulu Kapi Gold Project in Ethiopia, with key financing milestones and regulatory changes enhancing funding structures. The development budget of $320 million, excluding a $100 million historical equity investment, has been secured at the subsidiary level. Following final approvals from the lead bank, all parties have initiated formal approval processes, including progress with the co-lending bank and local equity-capital investors. Recent regulatory changes have improved the equity funding structure, lowering overall finance costs. These include foreign exchange exemptions, an increase in the debt-to-equity ratio from 70:30 to 80:20, and the re-investment of local currency retained earnings into new business sectors as foreign direct investment. Within the development capital budget of US$320 million, US$100 million will be provided through the issuance of two types of Equity Risk Notes (“ERN”), one type for MNC’s with no operations in Ethiopia and another lower-cost ERN for those with accumulated retained earnings in Ethiopian operations.

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Ethiopia’s Information Network Security administration (INSA) – it is like the cyberwing of Ethiopia’s intelligence system – on Friday remarked about the Commercial Bank of Ethiopia “system glitch.” Tigist Hamid, Director,  said  INSA has been responding to the “system glitch” to the digital banking system of the commercial bank of Ethiopia since it was reported on March 16. She added  “We have been doing a cyber security check and we were able to confirm that the glitch has nothing to do with a cyber attack.” However, said INSA, we have done a detailed analysis of the issue that caused the problem. “The bank has made changes to its mobile banking to improve the system…but the logical flow of the source code was disordered.”  Earlier this week, Commercial Bank of Ethiopia President , Abe Sano, said there was “a missing code.” It added that the system was releasing money without checking account balances of clients. Why the system was changed without a test of the new system or why the “logical flow” of the source code of the new mobile system was not tested before it was implemented is not addressed. Commercial Bank of Ethiopia has disclosed that over 490,000 transactions were completed in a few hours during the systemic glitch but it has not disclosed the total amount of money it lost. Sources indicate that somewhere between 5 and 10 billion birr was lost. The bank has started a campaign to recover it.

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A senior Ethiopian government official has called for further augmenting Ethiopia-China cooperation through common platforms and initiatives.

Ethiopia and China have enjoyed a longstanding relationship that spans over five decades, and there is a need "to enhance cooperation and foster enduring friendship between our two nations," Gebeyehu Ganga, director-general of the Middle East, Asia and Pacific Affairs at the Ethiopian Ministry of Foreign Affairs, told a symposium on the Belt and Road Initiative (BRI) held Wednesday in Addis Ababa, the Ethiopian capital.

He said Ethiopia is committed to further strengthening cooperation with China by harnessing the opportunities presented through the BRI and other China-proposed initiatives.

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The Ethiopian government has generated about 20 million U.S. dollars in export revenue in six months from commodities produced at the country's flagship Chinese-built Hawassa Industrial Park, local media reported Tuesday.

ADDIS ABABA, March 20 (Xinhua) -- The Ethiopian government has generated about 20 million U.S. dollars in export revenue in six months from commodities produced at the country's flagship Chinese-built Hawassa Industrial Park, local media reported Tuesday.

The Hawassa Industrial Park is expected to generate about 44 million U.S. dollars from the export of commodities produced by manufacturers within its premises during the current Ethiopian 2023/2024 fiscal year, which started on July 8, the state-run Ethiopian News Agency (ENA) quoted Mathiwos Ashenafi, the park's general manager, as saying.

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The news:

• Onafriq, a digital payments service, and M-PESA, the Vodacom and Safaricom-owned mobile phone-based banking services, have signed an International Money Transfer Agreement.
• The partnership will see both fintechs collaborate to streamline remittance flows into Ethiopia.
• According to the agreement, Safaricom, which obtained the Payment Instrument Issuer Licence from the National Bank of Ethiopia in 2023, can now assist Ethiopians in receiving remittances via M-PESA, a mobile money transfer service.

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Over the weekend, Ethiopia’s biggest commercial bank witnessed a “systems glitch” which allowed customers to withdraw millions. The bank has since released a statement saying that there was no cyber attack and its security has not been compromised as it scrambles to recoup the large sums of money withdrawn.

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Addis Ababa, March 15/2024 (ENA) Ethiopia has earned more than 1 billion USD from electric power export to neighboring countries in 18 months, Water and Energy Minister Habtamu Itefa told the Ethiopian News Agency. In an exclusive interview with the agency, the minister stated that the revenue was generated during the months up until the end of 2015 Ethiopian fiscal year. According to him, the performance underscores the nation's burgeoning role as a regional energy powerhouse, catalyzing regional integration. While acknowledging fluctuations, Habtamu highlighted the growing demand for Ethiopian electricity, with recipient countries witnessing a 15 percent annual surge. We are successfully supplying energy to Sudan, Djibouti, and Kenya, the minister noted, lauding the pivotal interconnection between Ethiopia and Kenya's power grids that extend the possibility of exports as far as South Africa via the East African Power Pool. He further pointed out that "Ethiopia is blessed and conveniently positioned to provide clean, inexpensive electricity without harming the environment, fueling escalating demand."

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A day after the reported compromise of Ethiopia’s state-owned bank – Commercial Bank of Ethiopia – which reportedly led to a loss of over six billion birr within hours due to fraudulence, the bank has reportedly formed a task force to go after those who took advantage of the digital banking “system failure” to withdraw or transfer huge amounts of money. Wazema radio reported on Sunday that it had heard about it from close sources – apparently from within the bank. Members of the task force are drawn from security forces and experts from the National Bank of Ethiopia, and it aims to recover the money that was illegally transferred or withdrawn within six hours starting last Saturday midnight (local time). The source indicated that the Commercial Bank of Ethiopia does not yet know the amount of money it lost, but it indicated that over six billion birr worth of transactions were conducted in a matter of six hours, and over 25,000 money transfers were made. Also, Wazema cited Fortune, a local newspaper, as saying that 66,000 Commercial Bank of Ethiopia clients were affected by the situation. From the report, the bank does not seem to be interested in confirming the amount of money that it said to have lost during the six hours of unexplained failure to the bank’s digital banking system.

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Addis Ababa, March 18/2024 (ENA) Ethiopian Ambassador to India, Demeke Atnafu called on Indian companies to further invest in Ethiopia and seize the untapped business opportunities in the east African nation. Ambassador Demeke addressed the CII Gujarat State Annual Session on Opportunities in Africa, by presenting business and investment opportunities in Ethiopia, according to the Ethiopian Embassy in New Delhi. The ambassador underscored that Ethiopia is a preferred destination for investment. Demeke further elaborated the positive factors such as conducive economic climate, favorable market, abundant young and educated labor force, rich and diverse natural resources, cheapest electricity and water rate as well as sheds at nominal rate at industrial parks. Moreover, he elucidated in detail ample opportunities existing in agriculture and agro-processing, manufacturing, mining, ICT and tourism sectors and invited companies to invest in these and other emerging sectors such as telecom, finance, transport and logistics, health and housing development.

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Ethiopian Airlines is building housing for 5000 employees in the capital Addis Ababa. Mesfin Tasew,  CEO, and Adanech Abiebie, Addis Ababa city mayor have have laid  cornerstone for the construction at the construction in the outskirts of the city. The airline is spending over $460 million in the construction of 16 building blocks. The housing units range from a three bedroom apartment to a Bachelor unit. Ethiopian Airlines has more than 17,000 employees in the country and abroad – in the countries where it is operating. Currently, it flies to more than 131 international destinations and is working on a plan to expand its international destinations to well over 200 by 2035.

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Dodai, an Addis Ababa-based electric vehicle (EV) startup, has secured $4 million in its Series A round, marking one of the largest amounts raised by startups in Ethiopia in a single round. This latest equity funding brings Dodai’s total raised capital to $6.2 million since its inception, with the startup aiming to secure an additional $2 million in its Series A round. The investors in this round include Nissay Capital, the corporate venture capital arm of Nissay, a $500 billion asset insurance and asset management company, making its first investment in Africa, and Musashi Seimitsu, a $3 billion revenue automotive parts supplier.

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In a move to revolutionize and strengthen Ethiopia’s health system and secure universal health care coverage for its citizens, the Ministry of Health is prioritizing the digital age. Leading the charge is the USAID-funded Digital Health Activity (DHA), led by JSI, who have welcomed a new digital leader chosen by USAID, Naod Wendrad, and whose impressive 15-year tenure in Ethiopia’s national health sector is set to bring a wealth of innovation and expertise. Noad, a visionary in health information systems, has been at the forefront of Ethiopia’s digital health transformation. While with the Ministry of Health, his collaboration with DHA has seen him drive major advancements in health policy, digital infrastructure, and data management, making health care more accessible and efficient across Ethiopia. “I am honored to take on this role and excited to work with all DHA teams, whose hard work is a direct reflection of how much this project has already accomplished,” says Naod. From electronic medical records that streamline patient care to advanced logistics systems that optimize the health supply chain, these innovations are not just about technology – they are about making health care more accessible to clients and reducing the time and cost barriers for every Ethiopian.

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The trade delegation, which is being organised by TradeMalta in collaboration with the Ethiopian Investment Commission, is made up of sixteen enterprises coming from different sectors – education and training, construction and building maintenance services, medical equipment, business consultancy, manufacturing, energy and sustainable solutions, ICT, financial services, and architectural and design professional services.  Malta Enterprise, MCAST and the Institute of Tourism Studies are also part of the delegation. Being the seat of the African Union, Ethiopia presents attractive opportunities for Malta-based businesses exploring new avenues for export and international expansion. Moreover, Ethiopia serves as a hub in Eastern Africa, acting as a vital gateway to tap into the broader East African market. This provides huge potential for fostering mutually beneficial economic growth and collaboration between the two nations. The multi-sector business mission currently in Addis Ababa aims to assist Malta-based businesses to extend their reach into this untapped market, whilst capitalising on the significant benefits brought about by the setting up of Malta’s embassy in Addis Ababa two years ago. Through leveraging this diplomatic milestone, delegates can unlock new growth opportunities in the vibrant economic landscape of Addis Ababa and beyond.

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Chinese enterprises and startups are currently making great steps in delivering clean energy technologies to the world, such as new energy vehicles and affordable solar panels. ADDIS ABABA, March 12 (Xinhua) -- China's keen commitment to and successes in green development serve as an instructive model in promoting global green transition, said an Ethiopian expert. China's green energy targets are driving the global energy transition momentum, eventually mitigating the adverse effects of climate change, Costantinos Bt. Costantinos, a professor of public policy at Addis Ababa University in Ethiopia, told Xinhua in a recent interview. Noting the urgent need to exert concerted efforts toward the development of clean energy alternatives on a global scale, the expert commended China's leading role and its extensive efforts to fast-track its transition to clean energy. "Definitely, there is going to be a transition, and the one country that is ready to push this development and retiring fossil fuels and coming into alternative green forms of energy is China. I see the blueprint in the Chinese economic development and the efforts that are being undertaken," said Costantinos.

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A half-year cabinet performance review meeting revealed that Ethiopia’s long-lived protectionism over the wholesale and retail market is coming to an end, pending the approval of a roadmap under preparation by the Ethiopian Investment Commission (EIC) and Ethiopian Investment Board. Liberalization of the retail market is a core macroeconomic objective in the second Homegrown Economic Reform Agenda (HGER 2.0), which looks to alter the existing retail market structure through private sector involvement. The government is working towards “opening up the wholesale and retail sector as outlined in HGER 2.0,” said Fistum Assefa (PhD), minister for Planning and Development, during an overview of macroeconomic trends before the Council of Ministers earlier this week. “We are working to gradually open these businesses to competition,” Fitsum said. Six months into the implementation of HGER 2.0, which is slated to last for the coming two and a half years, the preparation of the roadmap is the most pronounced step on the path to retail and wholesale market liberalization thus far.

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For decades, Ethiopia has been the only major economy in Africa without a securities exchange, but this is set to change as the $156 billion economy gears up to launch securities exchange in the third quarter of 2024. Ethiopia Capital Markets Authority Director-General Dr Brook Taye spoke with Julians Amboko about opportunities in the budding capital markets. If you look at many jurisdictions, the way capital markets develop is that we have the market growing first and then the regulator develops next to address the emerging legal and regulatory issues. In Ethiopia’s case, the regulator has had a significant head start. Sceptics argue that this creates room for potential regulatory overreach. Our unique advantage is that we are a latecomer, and we can take advantage of understanding what has worked in different jurisdictions. Ultimately, it boils down to one thing — an issuer will come to market if it makes sense, if the pricing is right. So, how do we make that work for Ethiopia? Whenever we design a directive or a regulation, we seek to understand what it will take for an issuer to come to the capital market and raise funding both on the debt and equity side versus them going to the private market.

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As Ethiopian Airlines commemorates the fifth anniversary of the 2019 Boeing 737 Max 8 crash, the carrier showcases renewed confidence in Boeing, evident through additional orders, despite recent challenges faced by aircraft within the same family.

Despite the tragic accident involving Flight ET 302 that claimed 157 lives in Addis Ababa, Ethiopian Airlines has emerged as a significant client for Boeing, affirming the carrier's confidence in the manufacturer's offerings.

Just last week, the Bole-based carrier announced the plans to acquire eight Boeing 777X, the latest fuel-efficient variant, with an option for an additional 12 aircraft.

During the Dubai Airshow last year, Ethiopian Airlines committed to acquiring 11 787 Dreamliners and 20 737 MAX jets.

The Ethiopian crash occurred five months after Indonesia's Lion Air Flight 610, which crashed shortly after takeoff, resulting in the loss of all 189 passengers and crew onboard.

On March 10, 2019, at 08:38 local time, Ethiopian Airlines Flight 302 departed from Addis Ababa Bole International Airport en route to Jomo Kenyatta International Airport in Nairobi, Kenya.

However, just a minute after takeoff, the first officer communicated a flight control issue to the control tower in Bole.

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Rungo Liquors, one of the largest liquor distributors in Ethiopia, has strategically entered the e-commerce sector with Rungooo Delivery. The platform, launched three months ago aims to address the myriad challenges faced by traditional beverage purchasing methods and enables consumers to buy products at distribution prices with free delivery. “We observed a growing trend of online shopping and a desire for more convenient ways to purchase beverages,” Olivier Poujade, Partner at Rungooo Delivery told Shega in a written statement. Rungooo’s platform introduces a host of features, including personalized recommendations, real-time pricing updates, and a mobile-optimized interface. “Our aim is to emulate the modern liquor shop experience online, fostering a community where consumers can interact with their favorite brands in a meaningful way,” Olivier noted. Rungooo aims to address a market that is proliferated with parallel and counterfeit products. Through its direct integration with the official distributors of these products in Ethiopia, Rungooo guarantees original items. Moreover, as beverages are directly delivered from the distributors, customers are offered distribution store prices.

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Dominance of cash, especially for small value transaction, continues to stand in the way of Safaricom Ethiopia’s payments business using its M-Pesa platform, says the telco. “Banking penetration in urban areas is relatively high but 99 percent of small value transactions are in cash,” Safaricom Plc, which is the majority owner of the Ethiopian business, told investors of the subsidiary’s performance last month. Safaricom Ethiopia launched the mobile money service on August 15, 2023 and had acquired 1.1 million customers at the end of September. In that period, the value of transactions reached Ksh43.7 billion ($29.13 million) while active merchants stood at 12,400. The telco earned Ksh7.2 million ($48,000) from the mobile money platform. According to a 2021 report by the World Bank on financial inclusion and digital payments, cash in Ethiopia is a dominant payment method, a sharp contrast to other markets in the region, including Kenya, where non-cash payments have gotten a foothold.

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Lia Tadesse Gebremedhin, who led Ethiopia through the COVID-19 pandemic and other significant public health challenges, looks forward to supporting leaders working to “make the world a better place for everyone, everywhere.” March 6, 2024—Lia Tadesse Gebremedhin was sworn in as Ethiopia’s Minister of Health on March 12, 2020—the day after the World Health Organization (WHO) declared COVID-19 a pandemic. That night, Ethiopia detected its first case of the virus. “It was a very difficult time,” Gebremedhin said. Ethiopia, like many countries in Africa, was both well-positioned and unprepared to respond to COVID-19. In the years prior, the country had invested heavily in its primary health care system and, because of the Ebola epidemic in West Africa, its public health emergency response structures. But intensive care units across Ethiopia—and across the continent—were short on essential resources such as oxygen, personal protective equipment, and staff trained in critical care. Gebremedhin is quick to add that COVID wasn’t the only difficulty she and her country faced during her four-year tenure as Minister. Civil conflicts and the ongoing impacts of climate change, including droughts, were displacing people, damaging health facilities, and causing additional infectious outbreaks across Ethiopia.

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