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 The 35th regular session of the House of People’s Representatives began deliberations on Ethiopia’s draft budget for the upcoming 2025/2026 Ethiopian fiscal year.

Finance Minister Ahmed Shide presented the government’s proposal, outlining a record ETB 1.93 trillion budget. This represents a significant 34% increase compared to the previous year’s allocation. The minister justified the ambitious figure by citing substantial economic progress achieved during the current FY. 

In the budget speech, the Minister announced that ongoing macroeconomic reforms had successfully stabilized the economy, citing key achievements: an 8.5% economic growth rate, a sharp decline in inflation from 34.5% to 13%, and a record-high export revenue of $7.2 billion hailed as an unprecedented national milestone.

The finance minister detailed the government’s funding strategy for the proposed 2 trillion ETB budget. He projected that 1.5 trillion ETB (approximately 75%) would be sourced from domestic revenue streams combined with foreign aid and grants. The remaining balance, roughly 500 billion ETB, is expected to be covered through proceeds from government bond sales and securing foreign loans or credits.

 


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Jaquar Group, an international manufacturer of bathroom and lighting solutions, has officially inaugurated its flagship showroom in Addis Ababa, reinforcing its long-term commitment to Ethiopia through both business investment and community development.

Located on the first floor of the Joburg Building near Kazanchis Total, the new showroom is designed as a one-stop destination for Jaquar’s premium range of bath and lighting products, tailored to the needs of the Ethiopian market.

The launch event drew key industry figures, media, and stakeholders, offering guests an immersive introduction to Jaquar’s latest innovations and global design standards.

“This isn’t just about bringing our products to Ethiopia,” said Mr. Ricardo Lage, Business Head for Africa and Francophone countries at Jaquar. “Our aim is to be a partner in Ethiopia’s growth by helping build a skilled workforce, raising industry standards, and creating sustainable employment.”

Beyond commercial operations, Jaquar is investing in professional training and certification programs—particularly in plumbing to empower local technicians with in-demand skills. The initiative reflects the company’s focus on community upliftment through education and job creation.


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The Ministry of Innovation and Technology has announced the official launch of the Ethiopian Technology Agency, now operational within the newly established Quality Village. The launch was marked by a high-profile ceremony attended by key government figures, including Dr. Belete Molla, Minister of Innovation and Technology, and Dr. Kassahun Gofe, Minister of Trade and Regional Integration. The event underscored the government’s commitment to institutionalizing quality and innovation as central pillars of economic competitiveness.

In his opening remark, Dr. Belete highlighted that creating a friendly and conducive environment is crucial to guaranteeing the effectiveness of technology regulation efforts in the country. He further emphasized that the agency has done several major initiatives, including the construction of laboratories, and upgrading a radioactive waste storage center. The minister described the “Quality Village” as a powerful symbol of Ethiopia’s technological advancement, underscoring its critical role in accelerating the nation’s progress in innovation and technology.  

During the inauguration, Dr. Kassahun Gofe received formal recognition from authorities for his exemplary leadership in delivering the Quality Village project on schedule. Expressing his gratitude for the acknowledgment, Dr. Kassahun called for continued collaboration among stakeholders to enhance Ethiopia’s quality competitiveness on the global stage.

The Minister in his remark stated that building such an advanced village is a strategic move to foster a prosperous economy and has a sustainable benefit for the coming generation.

Operating under the jurisdiction of the Ministry of Trade and Regional Integration (MoTRI), the Quality Village brings together key national institutions, including the Ethiopian Standards Institute (ESI), Ethiopian Conformity Assessment Enterprise (ECAE), Ethiopian Metrology Institute (EMI), Ethiopian Accreditation Service (EAS), and the Ethiopian Technology Authority (ETA).

Spanning 7.2 hectares, the facility comprises 20 uniquely designed mega-buildings, four main gates, and over 150 state-of-the-art laboratories. Fully integrated with advanced technological systems, the Quality Village stands as a bold testament to Ethiopia’s ambition to lead in innovation, quality assurance, and global competitiveness.

 


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The Oromia Investment and Industry Bureau has announced that more than 1,000 high-net-worth individuals have collectively committed over ETB 28 billion in capital to coffee development projects across the Oromia Regional State.

According to the bureau, a total of 1,468 investors are currently engaged in the sector. These investments have led to the creation of over 16,000 permanent jobs and more than 69,000 temporary employment opportunities.

Mohammedsani Amin, Deputy Head of the Oromia Agriculture Bureau, stated that the projects are already generating positive outcomes in terms of productivity and operational efficiency. He noted that investors are employing improved coffee varieties and modern processing technologies—such as coffee harvesters and combines—to enhance both yield and quality.

A significant portion of the coffee produced under these initiatives is destined for the export market, contributing to the country’s much-needed foreign currency earnings. Meanwhile, the regional government is working to facilitate collaboration between investors and local communities through regulatory support and oversight mechanisms.


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Ethiopia has secured over 5.1 billion USD in remittances within the first nine months of the 2024/2025 fiscal year, surpassing the total 4.4 billion USD received in the entire previous fiscal year, according to Ambassador Fetsum Arega, Director General of the Ethiopian Diaspora Service.

This remarkable inflow underscores growing trust and engagement from the global Ethiopian diaspora, not only in supporting families but also in exploring emerging investment avenues.

Ambassador Fetsum noted that diaspora interest is expanding beyond traditional remittance channels. Many are now leveraging liberalized investment policies and previously restricted sectors, entering joint ventures with foreign investors and injecting capital directly into the Ethiopian market.

Two major companies have already been established through this model—one facilitated by the UK-based diaspora and another by diaspora members in France. These developments reflect a broader trend of diaspora-fueled partnerships that blend emotional connection with economic ambition.

Source: Ethiopia News Agency


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Ethiopia has recorded a significant drop in inflation—from 30% to 13%, since adopting a market-based foreign exchange regime for the first time in five decades. The milestone was revealed during the 2025 IMF–World Bank Spring Meetings, where National Bank of Ethiopia (NBE) Governor Mamo Mihretu discussed the government’s sweeping macroeconomic reforms with IMF African Department Director Abebe Aemro Selassie.

The reform package, part of Ethiopia’s Homegrown Economic Reform Program—includes a transition to interest rate-based monetary policy, the cessation of central bank financing of the government, and the introduction of open market operations. According to Mamo, these changes are already bearing fruit.

“We’ve prioritized price stability, strengthened policy transparency, and tripled our foreign currency reserves,” he noted. “For the first time in 50 years, Ethiopia is operating under a market-based forex system.”

The shift comes amid broader efforts to unlock private sector growth, expand access to credit, and enhance the competitiveness of Ethiopian exports. Backed by a $3.4 billion IMF credit facility, the government is also tackling debt vulnerabilities and reforming state-owned enterprises to create a more sustainable and investment-friendly economy.

Analysts suggest the reforms could mark a turning point for Ethiopia’s economic trajectory—positioning it as a more attractive destination for both local and foreign investors.

“Our goal is a stable, job-creating economy anchored in market discipline and inclusive growth,” Mamo emphasized.

 


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A newly released 22-year economic assessment by the Ethiopian Economics Association (EEA) has revealed that Ethiopia’s total public debt has surged to USD 62.5 billion, triggering renewed concerns over fiscal sustainability and the country’s broader economic trajectory. The report, which comprehensively reviews the nation’s economic performance and governance from 2001 to 2023, delivers a stark warning about the consequences of weak macroeconomic management, civil conflict, and slowing growth.

The 2025 edition of the assessment marks a turning point in methodology and depth, employing standardized and rigorous analytical tools to examine sectoral performance with greater consistency than previous editions. According to the findings, Ethiopia’s economic expansion has slowed considerably since 2016. Both gross domestic product (GDP) and GDP per capita have declined, signaling a reversal from the high-growth period of the 2000s and early 2010s. Inflation has accelerated during the same period, eroding purchasing power and weakening macroeconomic stability. Investment activity has also contracted, while the country’s productive capacity, which expanded until 2019, has since plateaued—limiting opportunities to enhance output and improve livelihoods.

The agricultural sector, historically the backbone of Ethiopia’s economy, has seen a steady decline in its share of GDP, particularly after 2004/05, as the service sector gained prominence. Despite its critical importance, fertilizer usage in the country remains far below international standards, and only 7.8 percent of total loans issued over the past two decades have supported agriculture. The consequences of this underinvestment have become evident in the nation’s food security. From 2020 to 2022, more than 21 percent of Ethiopians experienced food insecurity, with rural communities bearing the greatest burden.

The report also paints a grim picture of the manufacturing sector. In 2023, industrial output accounted for only 4.48 percent of GDP—well below the global average of 12.33 percent. Its contribution to employment was equally modest, at just 6.47 percent. Although import substitution efforts have yielded limited results, progress remains constrained by persistent shortages of raw materials and unreliable utility services. The report notes that challenges in electricity and water supply continue to limit productivity.

Ethiopia’s financial sector, described as shallow and underdeveloped, is struggling to support structural transformation. Credit allocation remains skewed toward non-productive areas, with key sectors like agriculture and industry often bypassed. While financial inclusion has improved overall, significant disparities remain between urban and rural populations, as well as between men and women.

On the fiscal side, government revenues have grown by over 200 percent in nominal terms between 2002 and 2022. However, these gains have been offset by rising inflation, which has reduced the real value of public spending. The country’s debt burden now equates to USD 575.6 per capita. With high levels of debt stress and an underperforming export sector, the report urges the government to improve revenue mobilization and expand foreign currency earnings.

Poverty trends also reveal troubling setbacks. Although the poverty rate dropped from 30.9 percent in 2018/19 to 26.1 percent in 2021/22, it remains higher than the 24 percent recorded in 2015/16. The poorest households have experienced the sharpest decline in living standards, worsened by inflation and recurring conflict.

Governance issues are another central concern. Since 2020, the report observes a deterioration in public trust and governance, contributing to increased unpredictability, internal conflict, and weak economic oversight. The erosion of investor confidence, rising unemployment, and stagnation in growth are all linked to prolonged instability and institutional weakness.

To address these challenges, the EEA emphasizes the need for consistent, prudent, and well-coordinated development policies. It advocates for stronger governance systems, renewed efforts to restore investor confidence, and the integration of peace-building initiatives into national development planning. In particular, the report recommends reallocating public spending towards long-term capital investment, broadening the tax base in a non-inflationary manner, and designing more inclusive financial policies.


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A new report by ActionAid has revealed the devastating impact of austerity-driven budget cuts on health and education systems across six African countries, including Ethiopia. The study, titled “The Human Cost of Public Sector Cuts in Africa,” highlights a significant decline in public investment and the consequences it brings for both workers and communities.

Surveying more than 600 healthcare workers, teachers, and community members in Ethiopia, Ghana, Kenya, Liberia, Malawi, and Nigeria, the report found stark indicators of crisis. Teachers’ salaries have dropped by up to 50% over the past five years, and 97% of healthcare workers reported that their income no longer covers basic needs such as food and rent.

In Ethiopia, the situation has grown particularly severe. There is a dire shortage of affordable medical supplies, with residents forced to seek care at high-cost private clinics. “Five years ago, we could buy antimalarial drugs for 50 birr. Now it costs over 500 birr in private centers,” said Marym, a resident of Muyakela Kebele.

The education sector is also under immense pressure. Across the surveyed countries, 87% of teachers reported a lack of basic teaching materials, often having to cover these costs out of their own pockets. “With over 200 students and no resources, delivering quality education is nearly impossible,” said Maluwa, a primary school teacher from Malawi.

ActionAid attributes these widespread challenges to austerity policies promoted by the International Monetary Fund (IMF). The organization argues that IMF-driven fiscal frameworks encourage governments to prioritize debt repayments over essential public spending. For instance, in 2024, Nigeria allocated just 4% of national revenue to health, while over 20% was directed to servicing foreign debt.

“The IMF’s push for austerity is forcing countries to sacrifice essential services,” said Andrew Mamedu, ActionAid Nigeria’s Country Director. “Governments must prioritize people, not debt.”

In response, ActionAid is calling for increased investment in public services through fair and progressive taxation, and a shift away from harmful economic policies that deepen inequality and weaken public institutions.

 


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Huawei officially opened its participation in ETEX2025 today at the Addis International Convention Center (AICC), under the compelling theme: “Amplify Intelligence for New Africa.” As a leading global provider of ICT infrastructure and smart devices, Huawei’s showcase highlights its continued commitment to driving Africa’s digital transformation through cutting-edge cloud and energy solutions.

The event commenced with a series of high-level sessions, including a VIP keynote address titled “Amplify Intelligence for New Africa” delivered by Chenxin (Ethan Jiang), Chief AI Specialist at Huawei Cloud. The keynote emphasized the strategic importance of AI and cloud technologies in accelerating Africa’s development, fostering inclusive innovation, and exploring how AI can foster inclusive, sustainable development and help shape the continent’s future.

CEO of Huawei Ethiopia Office, Michael Liu also emphasized “the importance of tailoring digital transformation to the continent’s unique context, deepen the roots —in policy, in people, in partnerships— so Africa may rise strong in the AI winds of change”.  He also detailed “Huawei’s Value Proposal to amplify Intelligence for New Africa in three main areas: New Infrastructure, New Ecosystem and New Value, all powered by AI.”

Huawei and industry chain partners have jointly innovated to bring new inclusive connection solutions to people in these regions. Together with our Eco-Partners, we are bringing new inclusive education solution to children in these regions:

  • The solution can support teachers to create courses online, carry out teaching activities, and provide students with self-learning and online exams functions;
  • The solution provides a healthy online learning environment for students through Cloud Pad + Cloud OS + remote control.
  • In addition, we integrate AI-assisted teaching and learning functions to further improve teaching quality and learning experience.

Throughout the three-day expo, Huawei is presenting three major thematic exhibition zones:

  • Industry Digital Exhibition: Showcasing solutions for Smart City, Smart Classroom, Smart Finance, Smart Airport, etc.
  • Cloud Exhibition: A fully immersive AI DeepSeek Interactive Experience invites participants to explore the power of cloud computing and artificial intelligence through real-time, hands-on demonstrations. This experience embodies Huawei’s vision of making AI more accessible and impactful for African enterprises, governments, and innovators.
  • Digital Energy Exhibition: Demonstrating the future of sustainable infrastructure, this zone features Huawei’s advanced Digital Charging Facilities (DCF), next-generation Superchargers, and Battery Backup Solutions, all designed to support a low-carbon, intelligent energy ecosystem for Africa’s growing digital economy.

Key highlights from the opening agenda also include:

  • A panel on “Securing the Future – AI, Blockchain & Cybersecurity Convergence” led by Eddie Wang, Director of the Cloud Business Department, Huawei East Africa.
  • A workshop on accelerating low-carbon transition through digital power by Leo Wu, Senior Solution Manager, Huawei Digital Power Business

Tech for All in Ethiopia, for example,

  • Tech for Youth, we have the ICT Talent Development;
  • Tech for Education, we can make education anywhere;
  • Tech for Women Empower Women, we can empowers the country.

Together, For A Fully Digitalized Ethiopia: New Ecosystem and build AI Seeds in Ethiopia.


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The Ethiopia Finance Forum 2025 officially kicked off this morning at the Ethiopia Museum of Art and Science, bringing together a diverse array of stakeholders from the financial sector, senior government officials and global industry leaders. The two-day event, hosted by the National Bank of Ethiopia (NBE), is set to feature over 150 financial institutions, policymakers, development partners, and industry leaders.

The opening ceremony was marked by the presence of President Taye Atske Selassie and Mamo Mihretu, Governor of the National Bank of Ethiopia, both of whom underscored the forum’s significance in charting a new course for the country’s financial landscape.

In a historic announcement, Governor Mamo revealed that government borrowing from the National Bank has dropped to zero for the first time in 12 years. He recalled that Ethiopia’s financial sector has faced numerous challenges, including high inflation and severe foreign currency shortages. To address these issues, he said, the country has embarked on a comprehensive macroeconomic reform agenda.

Governor Mamo noted that efforts to realize the macroeconomic reform vision have already yielded results, including easing the foreign currency crunch and laying the groundwork for a stronger private financial sector.

He added that the reform has helped make Ethiopia’s financial system more competitive, market-oriented, and digitized, with improved security and efficiency.

PresidentTaye Atsikaselasi, in his remarks, praised the NBE’s leadership in fostering economic reform and encouraged deeper collaboration between regulators, investors, and citizens to support sustainable financial development. He also recommended three critical need for Ethiopia’s financial sector to broaden its client base and geographic reach, lead the nation’s digital transformation, and promote financial inclusivity to sustain growth.

The Ethiopia Finance Forum 2025 continues tomorrow with breakout sessions, panel discussions, and networking events. Participants are expected to deliberate on fintech innovation, public-private partnerships, ESG finance, and regional financial integration.




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