Mintesinot Nigussie – Page 5 – Ethiopian Business Review

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The Ministry of Agriculture (MoA) of Ethiopia has signed a Memorandum of Understanding (MoU) with Precision Development (PxD), a global non-profit organization specializing in digital agricultural advisory services. The agreement is backed by a USD 3 million grant from the Bill & Melinda Gates Foundation, aimed at accelerating the implementation of Ethiopia’s Digital Agriculture Roadmap (DAR).

The MoU was signed by Dr. Girma Amente, Minister of Agriculture, and Niriksha Shetty, CEO of PxD, in a move that marks a significant milestone in the country’s transition toward tech-enabled agricultural transformation.

Under the agreement, PxD will lead the establishment and operation of a Project Management Unit (PMU) responsible for the coordinated delivery and oversight of the Digital Agriculture Roadmap. The initiative will be implemented over a two-year period, from December 2025 to February 2027, with PxD serving as the executing agency for the project.

The grant from the Gates Foundation will be channeled directly to PxD, enabling the deployment of targeted digital solutions to support smallholder farmers, enhance data-driven policymaking, and improve agricultural productivity across Ethiopia.

Ethiopia, in partnership with the African Union, is set to host the Second Africa Climate Summit (ACS2) from September 8–10, 2025, reaffirming its role in advancing continental climate leadership. Held under the theme “Green Talks and Green Actions,” the summit will spotlight Nature-Based Solutions as central to Africa’s climate adaptation and mitigation strategy, with a focus on re-greening the continent and reinforcing African solidarity.

The summit comes at a time when Ethiopia is accelerating its shift toward sustainable development. In a landmark policy shift, the government has enacted a full ban on single-use plastics—modernizing environmental regulations that had remained largely unchanged for nearly two decades. The administration has also introduced a draft proclamation on ecosystem services, proposing the introduction of a fee framework to support conservation and equitable resource management.

Ethiopia’s climate efforts are further anchored by its Green Legacy Initiative, which has seen the planting of more than 32 billion seedlings over the past five years, with an estimated 90% survival rate. The campaign, launched by Prime Minister Abiy Ahmed, has gained international recognition for its scale and emphasis on ecological restoration.

“As Ethiopia launches its Green Legacy season, its preparations reflect a deep commitment to practical climate solutions,” Prime Minister Abiy stated on social media. “The call is clear: invest in nature, scale proven solutions, and embrace a model where ecology drives the economy.”

Preparatory consultations for ACS2 are already underway. In April, Ethiopia’s Minister of Foreign Affairs, Gedion Timothewos, and Minister of Planning and Development, Fitsum Assefa, held discussions with Moses Vilakati, African Union Commissioner for Agriculture, Rural Development, Blue Economy and Sustainable Environment. Commissioner Vilakati commended Ethiopia’s proactive stance and its readiness to lead the upcoming continental gathering.

The Africa Climate Summit, first launched in Nairobi in 2023, is becoming a key platform for African nations to articulate homegrown climate solutions, financing models, and regional cooperation frameworks. The first edition culminated in the adoption of the Nairobi Declaration, which called for reforming global climate finance, establishing a carbon tax, and unlocking green investments. Ethiopia’s hosting of the second edition is expected to build momentum around the continent’s climate diplomacy and green transformation agenda.

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Djibouti has officially turned down Ethiopia’s request to secure special access to the Port of Tadjourah, reaffirming its sovereign control over key strategic infrastructure in the Horn of Africa, as reported by The Eastleigh Voice.

Djibouti’s President Ismaïl Omar Guelleh stated that although Djibouti remains open to economic cooperation and port access discussions, Ethiopia’s latest proposal exceeded all previously considered agreements. According to President Guelleh, Ethiopia requested the establishment of a corridor with extraterritorial rights stretching from the Ethiopian border to Tadjourah, along with a naval base for the Ethiopian navy — a demand Djibouti categorically rejected.

President Guelleh emphasized that Ethiopia already has access to multiple ports in the region without requiring control, naming Djibouti, Berbera (Somaliland), Assab (Eritrea), and Mogadishu (Somalia) as examples. He also acknowledged Turkey’s mediation efforts as having had a positive influence on regional relations.

“We have made it clear to Addis Ababa that Djibouti is not Crimea,” he said, underlining the importance of respecting Djibouti’s sovereignty.

Heineken Ethiopia, in partnership with Addis Meter Taxi, the Addis Ababa Traffic Management Agency, and the Addis Ababa Traffic Police, has deployed 50 taxis across the city tagged with a powerful public safety message: “When You Drink, You Don’t Drive.”

The initiative, which spans six months, is expected to reach over two million residents daily, targeting behavioral change at scale. The campaign comes at a time when traffic-related fatalities and alcohol-induced accidents remain a pressing public concern in Ethiopia’s rapidly growing urban centers.

“As a company, we take our responsibility seriously to ensure this message is not only heard but remembered,” said Bart De Keninck, Managing Director of Heineken Ethiopia. “Driving under the influence isn’t just dangerous, it’s deadly. When someone is drunk, they can’t think clearly, and the consequences can be irreversible.”

The initiative extends beyond the city’s streets. In a parallel campaign targeting youth, Heineken has launched an awareness program across 11 Ethiopian universities, educating students under the theme “No for Drinking.” The program emphasizes that alcohol consumption is not appropriate for those under 21, aiming to foster early awareness and responsible behavior.

“This isn’t about promoting our brand, our name isn’t even visible on the taxis,” explained Fekadu Beshah, External Relations and Sustainability Manager at Heineken. “It’s about standing up and taking responsibility as a corporate citizen.”

Pula Advisors, an international insurtech company, in partnership with Oromia Insurance S.C. and other local partners, has provided agricultural insurance coverage to 700,000 smallholder farmers as of December 2024. Building on this success, the company aims to reach an additional 3 million farmers by the end of the current fiscal year. This scale-up effort brings together a consortium of local insurers, including Abay Insurance S.C., Africa Insurance S.C., Ethiopian Insurance Company (EIC), Nyala Insurance S.C., and Oromia Insurance S.C.

The announcement was made on Wednesday by Pula’s Ethiopia Country Director, Dagmawi Haileyesus, during the UNDP’s Financial Resilience in Agriculture (FRA) Community of Practice (CoP) 2025 high-level international forum, held at the United Nations Economic Commission for Africa (ECA) headquarters in Addis Ababa. The event brought together over 100 participants from 24 countries.

Held under the theme “Ethiopia’s Two-Decade Pilot Journey: Voices from Partners Implementing Agriculture Insurance”, the forum spotlighted Ethiopia’s evolving landscape in agricultural insurance, highlighting policy gaps, challenges, and future directions.

Solomon Zegeye, Director at Nyala Insurance, pointed out that premium affordability remains a major barrier, particularly for smallholder farmers. “Only large-scale producers can afford current rates,” he noted, adding that without strong policy intervention to enable premium financing, the scale-up of agricultural insurance will remain limited.

Other pressing issues include low awareness among smallholder farmers about the value of insurance, limited distribution channels in rural and remote areas, and the absence of robust policy frameworks to support the sector’s growth.

Also speaking at the forum, Belay Tulu, Director of the Insurance Supervision Directorate at the National Bank of Ethiopia (NBE), shared updates on regulatory reforms under way to address structural bottlenecks.

“We’re working on a new insurance proclamation that expands our mandate beyond supervision to include market development,” said Belay. “Inclusive insurance is broader than microinsurance. It targets unserved populations beyond just the poor.”

Belay added that a Microinsurance Directive is being also drafted to allow member-based institutions, such as cooperatives and community-based groups, to facilitate insurance delivery.

A key highlight of the event was the official launch of the Ethiopia Rural Finance Service Unit (RFSU) under the Ministry of Agriculture. The RFSU announced in the presence of Girma Amente (PhD), Minister of Agriculture and the State Minister of Agriculture, Sofia Kassa is set to play a central role in coordinating and scaling agricultural insurance efforts nationwide, with support from UNDP, JICA, and other development partners, through funding from the Bill & Melinda Gates Foundation.

“The revised Agricultural and Rural Development Policy places strong emphasis on improving access to financial credit for smallholder farmers,” said Dr. Girma. “The government’s focus on the sector has driven inclusive and climate-resilient economic reforms, boosting both production and productivity.”

Pula and its partner insurers are delivering Area Yield Index Insurance (AYII), a comprehensive coverage solution—through the Input Voucher System (IVS). This model links insurance directly to agricultural input purchases, leveraging the existing IVS infrastructure that reaches up to 7 million farmers, in collaboration with the Agricultural Transformation Institute (ATI).

“Pula has long anticipated the establishment of a platform like the RFSU, recognizing the sector’s need for greater coordination. With the RFSU now in place, we are well-positioned to scale our work nationally—with the potential to serve over 7 million farmers across Ethiopia.” said Dagmawi. He also added “We are confident that the RFSU will leverage key learnings from our program and help create an enabling environment that fosters better outcomes for smallholder farmers through expanded, well-coordinated agricultural insurance efforts.”

Pula operates in 20 countries globally, reaching a total of 20+ million farmers. The company entered Ethiopia in November 2022, following the Ministry of Agriculture’s pledge to work with stakeholders to deliver climate risk solutions for Ethiopian farmers and its delegation of responsibility to the Agricultural Transformation Institute (ATI), efforts began to design and pilot a scalable agricultural insurance model.

The Institute of Foreign Affairs (IFA), in collaboration with the Ministry of Foreign Affairs, held a high-level conference on Tuesday at the Sheraton Hotel under the theme “Exploring New Avenues: Economic Diplomacy as a Mainstay of Ethiopian Foreign Policy.”

The forum brought together leading government institutions — including the Ministry of Finance, Ethiopian Securities Exchange, Ethiopian Investment Holdings, Ethiopian Investment Commission, and the Ministry of Foreign Affairs — to discuss how to align foreign policy with Ethiopia’s economic ambitions.

Central to the discussions was the Homegrown Economic Reform Agenda, launched in September 2019, which aims to liberalize and modernize Ethiopia’s economy. Panelists explored how the reform program is positioning the country to better integrate with the global economy and attract quality investments.

In his opening remarks, IFA Executive Director Jafar Bedru stressed the need to shift diplomatic efforts beyond traditional political frameworks. “Our diplomatic engagements must transcend conventional paradigms and adopt a proactive, business-oriented approach — one that prioritizes investment and trade facilitation,” he said.

Ambassador Workalemahu Desta, Political and Economic Diplomacy Advisor, MoFA, acknowledged that while Ethiopia’s economic and business diplomacy is making progress, it still falls short of matching the opportunities created by recent reforms. He noted the growing global demand for competitive investment destinations, emphasizing Ethiopia’s strategic potential.

“Globally, production and labor costs are soaring. Multinational companies are actively seeking low-cost, stable, and business-friendly environments — and Ethiopia is emerging as a top destination,” he said.

Ambassador Workalemahu also underscored Africa’s growing strategic importance, pointing to the African Continental Free Trade Area (AfCFTA) as a transformative platform. “AfCFTA is unlocking a vast market for investors across Ethiopia. Additionally, our membership in BRICS and the New Development Bank enhances our positioning within the evolving global economic order,” he added.

Dr. Tilahun Kassahun, CEO of the Ethiopian Securities Exchange (ESX), highlighted the need to diversify Ethiopia’s financial landscape to sustain economic growth. He emphasized that beyond traditional financing mechanisms, both local and foreign private investors require access to alternative financial instruments such as portfolio investments. He mentioned that amid the launch of the capital market in Ethiopia, the Ministry of Foreign Affairs must attract investments from abroad as the old technical way of investment has changed to easy and Central Securities Depository. “Beyond simply counting how many remittance accounts are opened, a new key performance indicator (KPI) should be how many CSD accounts are created,” he added.

He also revealed that the capital market is expected to integrate with the interbank lending system in the first week of July. Just six months after its launch, the interbank market has already facilitated over ETB 800 billion in transactions, with daily volumes reaching several ETB billion, he reported.

This comes on the heels of the launch of a Diplomatic Guide for the Homegrown Economic Reform Agenda, unveiled on Monday by the Ministry of Foreign Affairs in collaboration with the Ministry of Finance, the Ethiopian Securities Exchange, and Ethiopian Investment Holdings.

Ethiopian Airlines has emerged as the leading player in Africa’s cargo aviation sector, now holding 35 percent of the continent’s market share, according to a new report by the African Finance Corporation (AFC). The airline has significantly expanded its annual cargo capacity, growing from 266,000 tons in 2016 to 715,000 tons by 2023.

The AFC report also highlights persistent gaps in intra-African air transport. In regions such as West Africa, European carriers continue to dominate cargo and passenger traffic. Kenyan Airways and Royal Air Maroc, the next closest competitors, together account for only 25 percent of the cargo market, signaling a sharp contrast in competitiveness.

The report commends Ethiopia and Kenya for using their national airlines to strengthen export trade and urges other African countries to adopt similar strategies. Ethiopian Airlines currently operates 16 dedicated cargo aircraft and serves 60 international destinations, with half located within Africa. The airline plans to expand its cargo fleet to 37 aircraft by the year 2035, reinforcing its long-term commitment to the sector.

In addition, the report praises Ethiopia’s advances in digital infrastructure, particularly in the rapid growth of telecom service users and the increasing adoption of digital technologies. These developments are positioning the country as a leader in Africa’s digital transformation.

Despite such progress, the AFC identifies weak infrastructure as a major constraint to the growth and competitiveness of Africa’s aviation sector. Addressing these limitations is seen as critical to unlocking further potential.

The report also identifies other high-potential sectors across the continent. These include mining, agriculture, logistics, and digital infrastructure. Ethiopia is highlighted as the top wheat producer in sub-Saharan Africa, with wheat cultivation rising from 5,000 hectares in 2018 to 650,000 hectares in 2023.

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BitX, a global mining company has signed a Memorandum of Understanding (MoU) with Ethiopia Mining Farm, paving the way for cutting-edge AI-powered mining infrastructure in Ethiopia, according to Street Insider.

The agreement marks a significant milestone in BitX’s African expansion, introducing its flagship Bit-X V2 Accelerator into local mining operations. This AI-driven technology is designed to double mining efficiency without the need for hardware upgrades, offering a more sustainable and cost-effective approach to Bitcoin mining. Ethiopia is seen as a high-potential hub, thanks to its largely untapped energy reserves and increasing momentum in digital transformation.

BitX’s CEO highlighted that the partnership goes beyond efficiency—it aims to foster a more inclusive and decentralized Web3.0 mining model, where access and fairness are prioritized. Ethiopia Mining Farm officials echoed this vision, stating that the integration of BitX’s accelerator will significantly enhance their operational performance and global competitiveness.

According to the MoU, BitX plans to roll out its technology across 20,000 mining machines in Ethiopia by the end of 2025, with ambitions to expand across other African markets. A key part of this initiative is BitX’s Shared Accelerator Program, which allows global participants to invest in decentralized mining via AI-powered contracts, starting at just $100—making it accessible to a broad base of investors, including Ethiopians.

Unlike traditional mining models that depend heavily on hardware or low-cost electricity, BitX’s approach focuses on software optimization and energy efficiency, enabling emerging economies like Ethiopia to participate in the global Bitcoin mining economy without massive capital requirements.

With a proven track record in North America and Central Asia, BitX’s move into Ethiopia underscores a growing shift in global mining strategy, one that champions decentralization, smart technology, and environmental consciousness.

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The governments of Saudi Arabia and Egypt have finalized plans for a landmark infrastructure project, a fixed link across the Red Sea that will physically connect Africa and Asia, according to Xtra Africa. Estimated at USD4 billion, the initiative, informally known as the “Moses Bridge,” is poised to become a catalyst for regional economic integration, cross-border mobility, and strategic cooperation.

First introduced in 1988 and revived by Saudi King Salman in 2016, the project will traverse the Strait of Tiran, linking Ras Hamid on the Saudi coast with Sharm el-Sheikh in Egypt’s Sinai Peninsula. After decades of political, environmental, and logistical hurdles, Egyptian Transport Minister Kamel al-Wazir recently confirmed that all planning phases are now complete.

Once operational, the Red Sea crossing is expected to significantly enhance trade, tourism, and religious travel between the two continents. Analysts forecast that the structure could facilitate the movement of over one million people annually, including thousands of African pilgrims traveling to Mecca. The project aligns with both nations’ broader economic visions, particularly Saudi Arabia’s Vision 2030 and Egypt’s regional development agenda.

Kegna Beverages S.C has officially launched its flagship product, Kegna Beer backed by an impressive ETB 22 billion investment and the support of over 5,000 Ethiopian shareholders.

The grand launch, held at the Addis International Convention Center, was not merely a product unveiling. It was the realization of an eight-year journey marked by perseverance through foreign currency shortages, COVID-19 disruptions, and political turbulence. Yet, the company stood firm, fueled by what it calls a “collective vision” of economic empowerment and national pride.

“We passed through tough challenges, but we had strong backing from the community. From the first public announcement alone, we raised ETB 1.2 billion,” said Neway Megerssa, Chairman of the Board at Kegna Beverages and CEO of Sinqe Bank. With visible excitement, he also recalled the moment they submitted nearly 50 documents to the Development Bank of Ethiopia, secured ETB 7.12 billion in financing, and proceeded to purchase the machinery.

Derived from the Afaan Oromo word “Kegna” — meaning “ours” — the brand is an expression of public ownership and cultural identity. The company was founded under the principles of the “Oromo Economic Revolution”, an economic philosophy aiming to elevate regional prosperity through inclusive entrepreneurship.

During its formation, Kegna conducted extensive taste research across 20 cities, crafting a recipe tailored to Ethiopian preferences. The result: Kegna Beer, a premium lager brewed with local and internationally certified inputs, featuring 5% ABV and available in 33cl and 50cl bottles, as well as 30-liter kegs.

Situated on 110 hectares in Ginchi Town, Oromia Region, the Kegna Brewery is among the most advanced in East Africa, blending state-of-the-art global machinery with local engineering talent.

“From the water to the wheat, every ingredient is tested to international standards. Kegna is built with cost-efficiency in mind — one machine here can replace five traditional ones,” said Afework Legesse, Chief Operations Officer.

With a current production capacity of three million hectoliters, the company plans to double capacity to six million hectoliters within four years.

“This isn’t just made in Ethiopia – it’s made of Ethiopia. It’s a shared legacy,” said Abiyu Abera, Commercial Manager at Kegna Beverages.

Kegna Beverages is uniquely structured as a public share company, now employing over 250 people, with plans to grow its workforce to 1,000 nationwide. Its over 5,000 shareholders include individuals, cooperatives, and institutions from across Ethiopia — ensuring that the profits generated return to the communities that built it.

Kegna’s ambitions go beyond beer. As part of its multi-product roadmap, the company plans to introduce eight additional beverages, including water, juices, and soft drinks, in a bid to expand its footprint in Ethiopia’s fast-growing FMCG sector. Starting mid-June, Kegna Beer will be available at bars, butcheries, groceries, and restaurants nationwide.

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Ethiopia Teams Up with Global NGO to Digitize Farming with USD3M Boost

Ethiopia to Host Second Africa Climate Summit in 2025, Championing Nature-Based Solutions

Djibouti Confirms Ethiopia’s Tadjourah Port Request Is Off the Table

Heineken Rolls Out Awareness Taxis in Addis to Promote Sober Driving

Pula Advisors Eyes 3 Million Ethiopian Farmers Through its Local Insurance Partnerships

Key Government Institutions Convene to Reinforce Economic Diplomacy as Pillar of Ethiopian Foreign Policy

Ethiopian Airlines Controls Over One-Third of Africa’s Cargo Market

BitX Enters Africa via Ethiopia in Major AI-Driven Mining Deal

Saudi Arabia and Egypt Finalize USD4 Billion Red Sea Link Connecting Africa and Asia

Kegna Beverages Unveils Flagship Beer with Over ETB 22 Billion Investment