Blog – Page 25 – Ethiopian Business Review

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The Ethiopian Deposit Insurance Fund has amassed a total ETB of 5.89 billion in the past nine months, signaling growing momentum in the country’s efforts to build a stable and trustworthy financial system. Of this amount, 88.29% (ETB 5.2 billion) came from insurance premiums collected from financial institutions, while the remaining 11.71% (689.45 million birr) was generated through investment returns.

Established under Council of Ministers Regulation No. 482/2013 and operational for just two years, the Fund is under the supervision of the National Bank of Ethiopia and serves as a critical mechanism to protect depositors in the event of bank failures. Premium contributions were primarily sourced from private banks (ETB 2.67 billion or 51.3%), the Commercial Bank of Ethiopia (2.47 billion birr or 47.5%), and microfinance institutions (ETB 59.49 million or 1.2%).

In terms of investment, the fund has built a portfolio worth ETB 12.11 billion, with 92.24% placed in government treasury bills and the remainder in Mudarabah term accounts, reinforcing its commitment to low-risk, Sharia-compliant financial strategies.

In addition to its financial performance, the Fund is investing in internal capacity—modernizing its information management systems and workforce. As Ethiopia navigates economic reforms, the steady rise of the fund presents a quiet but vital assurance to depositors across the country: their savings are being safeguarded with increasing efficiency and transparency.

The Trade Development Authority of Pakistan (TDAP) and the Pakistani Ministry of Commerce, in collaboration with the Pakistani Embassy in Ethiopia commercial wing, have announced the 5th Pakistan-Africa Trade Development Conference (PATDC) and an exhibition of Pakistani products will be held in Addis Ababa at the Millennium Hall from May 15th – 17th, 2025.

This three-day event is designed to create trade and investment opportunities between Pakistan and Africa. The conference will be attended by high-level government delegations, business leaders, investors, and experts from Africa and Pakistan.

At the exhibition, Pakistani companies will showcase their diverse products and services, including pharmaceuticals, medical equipment, textiles, food products, beauty supplies, and more.

The event will feature various activities focused on trade development, including a business conference, bilateral business-to-business (B2B) meetings, government-to-government (G2G) discussions, and dinner programs.

According to the Pakistani Ministry of Commerce, this conference will play a significant role in strengthening trade relations between Pakistan and Africa.

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Ethiopia has established 374 additional weekend markets over the past nine months, bringing the total number of operational Saturday and Sunday markets across the country to 1,434. The expansion aims to improve access to goods, stabilize consumer prices, and stimulate local economies through more inclusive trade platforms.

The milestone was revealed during a high-level national macroeconomic and sectoral performance review convened this morning by the Ministry of Trade and Regional Integration. Minister Kassahun Gofe led the session alongside Dr. Belete Molla, Minister of Innovation and Technology. The forum engaged ministry staff and stakeholders in a joint assessment of progress made in the 2017 Ethiopian fiscal year.

The review highlighted major achievements beyond market expansions. Over 2.6 million online business registrations and licenses were processed—marking a 102% achievement against the ministry’s plan. This surge in digital registration reflects the government’s commitment to simplifying and modernizing business procedures.

In a historic first, Ethiopia’s export revenues have surpassed USD 5.3 billion within the same nine-month period—making it the highest figure recorded in the country’s export trade history. The Ministry has set an ambitious target to reach USD 7 billion by the end of the fiscal year.

Efforts in regulating the petroleum sector were also cited as a key success. The ministry noted improved oversight in oil marketing and pricing mechanisms, contributing to better supply stability.

“These achievements are a reflection of the enabling environment created by ongoing macroeconomic reforms,” Minister Kassahun said, crediting institutional collaboration and reform-driven momentum for the performance surge.

The report paints a picture of a country intensifying its trade efforts through local innovation, regulatory improvement, and global engagement—laying the groundwork for more integrated and competitive economic growth.

Harar, one of Ethiopia’s most iconic and culturally rich cities, has officially joined the World Tourism Cities Federation (WTCF), a milestone that signals a promising future for its tourism sector. The announcement was made by the city’s president following the Federation’s annual congress held in Hong Kong.

Becoming a member of the WTCF positions Harar alongside global tourism hubs, opening doors to international collaboration, knowledge sharing, and sustainable tourism development. For a city already celebrated for its centuries-old heritage, vibrant culture, and status as a UNESCO World Heritage Site, this recognition reaffirms its place on the world map.

The timing is symbolic. In 2023 (European calendar), Harar was also recognized as a member of the Organization of World Heritage Cities, cementing its global standing. The city’s entry into such networks not only boosts visibility but could revitalize local economies, attract investment, and inspire a new chapter in Harar’s journey—one where history meets global opportunity.

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In a significant move for the region’s financial markets, the East African Securities Exchanges Association (EASEA) has unveiled the East Africa Exchanges (EAE) 20 Share Index. This new index is designed to track the performance of top companies listed on stock exchanges across East Africa, including key players from Kenya, Tanzania, Uganda, and Rwanda. The initiative aims to provide a unified benchmark, fostering greater cross-border investment and improving market transparency.

The EAE 20 Share Index includes leading firms from a range of sectors, such as telecommunications, banking, and manufacturing, offering investors a more streamlined and comprehensive view of the region’s corporate landscape. According to Business Today Kenya, the companies featured in the index represent a cross-section of East Africa’s diverse economies, from mobile service providers and financial institutions to breweries and cement manufacturers.

Frank Mwiti, CEO of the Nairobi Securities Exchange, called the launch of the EAE 20 Share Index “a significant milestone in the integration of East African capital markets.” The initiative is expected to attract regional and international investors, encouraging portfolio diversification and promoting the development of exchange-traded funds and other financial products tied to the index.

This step is also part of a larger strategy to make East Africa’s stock exchanges more competitive on the global stage. By harmonizing market operations and promoting deeper integration, the EAE 20 Share Index will play a critical role in the region’s efforts to enhance economic cooperation under the East African Community (EAC).

Source: Business Today Africa

Ethiopian Airlines has secured two prestigious awards at global aviation events in Hamburg, Germany, including the ‘Outstanding Food Service by a Carrier – Africa’ award at the 2025 PAX Readership Awards and the ‘Cabin Concept of the Year 2025’ award at the Onboard Hospitality Awards.

This marks the third time Ethiopian Airlines has won the ‘Outstanding Food Service by a Carrier – Africa’ award, recognizing its exceptional onboard catering services. Additionally, the airline earned the Bronze Award for the ‘Cabin Concept of the Year 2025’ for its innovative Airbus A350-1000 cabin, which combines elegant design, enhanced passenger comfort, advanced technology, and top-tier service delivery.

Ethiopian Airlines’ CEO, Mr. Mesfin Tasew, shared his appreciation, stating, “We are honored to be recognized by our industry peers and passengers for the quality of our inflight meal services, and the innovative approach to our new cabin design. These awards are a testament to our commitment to deliver a world-class travel experience inspired by the hospitality culture of Ethiopia and the innovative technologies of the future.”

These accolades add to Ethiopian Airlines’ growing list of achievements, solidifying its reputation as a global leader in aviation service excellence.

The airline’s state-of-the-art catering facility in Addis Ababa, capable of producing up to 100,000 meals daily, serves both Ethiopian Airlines and other international carriers, as well as VVIP and charter flights. The facility includes international kitchens staffed by chefs from around the world, along with a Halal Kitchen certified for Halal meal production.

The innovative Airbus A350-1000 cabin concept boasts a spacious layout, larger windows, mood lighting, and quiet cabins for enhanced comfort across all classes. The aircraft is also equipped with the AVANT Up IFE system, offering 4K displays, Bluetooth connectivity, real-time landscape camera views, and 70W fast-charging ports. Passengers enjoy eco-conscious amenity kits featuring sustainable bamboo brushes, eye masks, nourishing lip balm, and sleep aids.

Safaricom Ethiopia has emerged as a standout player within the Vodacom Group, securing two prestigious awards at the Vodacom Group External Relations 2025 Conference, held from April 7-10 in Fancourt, George, South Africa. The company was recognized for Best Stakeholder Engagement Leadership and Best Youth Empowerment Partner, affirming its growing influence across the continent.

The accolades highlight Safaricom Ethiopia’s strategic leadership and social impact, particularly in its efforts to build trust with key stakeholders and advance youth-focused initiatives. The recognition comes as the company continues to cement its role in Ethiopia’s digital and economic transformation, just over two years since launching operations.

The annual conference brought together Vodacom’s external relations teams from eight markets—Ethiopia, South Africa, Kenya, Mozambique, Tanzania, Egypt, the DRC, and Lesotho—alongside delegates from Vodafone UK, Safaricom Kenya, GSMA, consultants, and leading industry experts. The forum provided an opportunity to share innovative practices, deepen cross-border collaboration, and celebrate exceptional performance.

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The Ethiopian Ministry of Agriculture has announced sweeping progress in its nationwide soil and water conservation efforts, with more than 21,000 streams rehabilitated and over 3.7 million hectares of land physically developed as part of a broader strategy to combat climate change and bolster agricultural productivity.

The initiative, which has been underway since the start of the fiscal year, is part of a larger plan to develop 4.6 million hectares through integrated watershed management and sustainable land use practices. The campaign, spearheaded under the slogan “Our Soil Resources for Our Prosperity,” has mobilized millions of Ethiopians in a coordinated push toward environmental resilience and food security.

Speaking at a high-level seminar evaluating this year’s progress, Professor Eyasu Elias, State Minister of Natural Resources Development, emphasized that the program is critical in mitigating the effects of climate change while laying the foundation for a production-led green economy.

“Our integrated watershed development works are being carried out across all regions, engaging communities to protect and restore land while enhancing agricultural productivity,” he stated. “This is not just about conservation—it’s about transforming livelihoods and ensuring sustainable growth.”

The campaign has seen unprecedented public participation, with over 19.9 million citizens contributing 30 to 60 days of labor per year in soil terracing, afforestation, and gully rehabilitation. According to Chief Executive of the Natural Resources at the Ministry of Agriculture, Fanose Mekonnen, the collective effort represents an estimated ETB 16 billion in mobilized manpower, showcasing the scale of Ethiopia’s community-driven development model.

In addition to new developments, the ministry has prioritized renovating and upgrading past conservation projects, rehabilitating an additional 589,000 hectares of previously degraded land. Efforts also include monitoring tree nurseries, identifying new afforestation sites, and preparing millions of planting pits to ensure long-term ecological benefits.

The Ethiopian Investment Commission (EIC), in collaboration with the Ministry of Finance (MoF) and the Development Partners Group, is gearing up to host the 3rd edition of the Invest Ethiopia 2025: High-Level Business Forum, slated for May 12-13, 2025, at the Skylight Hotel in Addis Ababa. This prestigious event will bring together an impressive mix of 700 global investors, business leaders, policymakers, and entrepreneurs, offering a dynamic platform to explore Ethiopia’s untapped investment opportunities.

During a press conference unveiling the event, Dr. Zeleke Temesgen Boru, Commissioner of the EIC, alongside Semereta Sewasew, State Minister of Finance, Dr. Léandre Bassolé, Deputy Director General for the East African Region at AfDB, and Ashley Mulroney, the Canadian Embassy’s Representative, reinforced the forum’s significance in setting the stage for future investment flows into Ethiopia. Aimed at catalyzing the country’s economic growth, the forum is expected to attract USD 3 billion in investment over the next few years.

The forum is not just a platform for dialogue but a robust opportunity for business leaders to dive deep into Ethiopia’s evolving investment climate. As Dr. Zeleke emphasized, Ethiopia’s strategic geographic location, coupled with its affordable and reliable electricity, positions the country as an attractive destination for foreign direct investment (FDI). “Ethiopia offers investors unparalleled access to regional and global markets, with proximity to the Middle East and other key trade hubs,” he remarked. “Furthermore, the government’s commitment to providing tax incentives and fostering a business-friendly environment makes it an ideal location for long-term investments.”

The forum also seeks to showcase the government’s commitment to fostering a private-sector-driven economy. Over the past few years, Ethiopia has actively worked to create an environment that is both conducive to investment and supportive of entrepreneurship. The strategic reforms implemented to date are now set to serve as the backbone for attracting further capital.

The previous Invest in Ethiopia Forum in April 2023 saw an impressive turnout of 750 foreign investors, with an estimated USD 1.6 billion in investment commitments. These engagements helped Ethiopia secure a USD 3.9 billion FDI influx in the 2023-2024 fiscal year.

Ashley Mulroney, representing the Development Partners Group, highlighted the importance of collaboration between the government, private sector, and development partners in Ethiopia’s investment ecosystem. She noted that while global economic challenges like inflation and trade disruptions continue to affect emerging markets, Ethiopia’s macroeconomic stabilization efforts and structural reforms are proving resilient.

She emphasized the need for investment to focus on inclusive growth, with particular attention to youth, women, and underserved communities. This commitment to fostering inclusive development is crucial as Ethiopia looks to tap into its demographic dividend and address the needs of its rapidly growing population.

The expansion into sectors like telecom, banking, and logistics is another critical focus of the forum. Ethiopia’s recent shift to a market-based exchange rate system has been instrumental in creating a more competitive environment for international investors. Dr. Léandre Bassolé, Deputy Director General for the East African Region at AfDB, stressed that Ethiopia’s opening up of key sectors signals a serious commitment to market liberalization and private-sector involvement. “The government’s macroeconomic reforms and efforts to liberalize essential sectors such as telecom and banking show Ethiopia’s dedication to building a modern, open economy,” Dr. Bassolé remarked.

Ethiopia’s investment journey has been significantly shaped by China’s increasing role in its development, with over 4,500 Chinese-led projects currently operating in the country. However, despite the significant strides made in promoting investment, security challenges continue to pose risks to Ethiopia’s business environment. The ongoing instability in certain regions, coupled with disruptions in supply chains, is affecting investor confidence and escalating operational costs. Dr. Zeleke acknowledged these challenges, urging a balanced perspective on the situation. “While peace is crucial for investment, the perception of instability often outweighs the reality. We must work together to ensure stability, both on the ground and in the global perception,” he said.

Siket Bank is positioning itself as a central player in Ethiopia’s industrial renaissance, claiming a significant role in transforming the country’s manufacturing landscape through financial innovation. At a high-level panel discussion themed “Financial Provision for Industrial Productivity”, the bank showcased its evolving strategy to empower local manufacturers and accelerate industrial productivity.

Held alongside the 2025 Manufacturing Industries Exhibition and Fair at the Addis International Convention Center, the panel attracted key figures from federal and city administrations, private sector leaders, development partners, and industry experts. The discussion aligned with the national “Ethiopia Tamirt” (Ethiopia Manufactures) movement, which champions a shift from import dependency to homegrown production and self-reliance.

Panelists discussed the broader role of finance in Ethiopia’s industrial development while spotlighting Siket Bank’s own transformation—from a microfinance institution into a commercial bank. The transition, they noted, has allowed the bank to expand its reach and offer more sophisticated services tailored to the needs of various businesses.

Testimonials from long-standing clients painted a vivid picture of transformation, micro-enterprises nurtured into competitive manufacturing firms. One such testimony came from Abemelek Degu, a plastic manufacturer, who described finance as “essential—as essential as vision itself.” He credited the bank for turning his small-scale operation into a scalable enterprise, saying Siket “transitioned me from zero to hero.”

Another compelling story came from two returnees who, after abandoning overseas migration, launched a local business with just ETB 5,000 in microfinance support from Siket. Today, they run a firm with a capital base exceeding ETB 10 million—a testament to the bank’s role in unlocking entrepreneurial potential for underserved groups.

Siket Bank also unveiled an innovative lending product developed in partnership with the World Bank, employing psychometric testing to assess loan applicants based on personality traits, behavioral consistency, and social indicators rather than physical collateral.

“We have now started piloting this model with select customers,” said Damte Alemayehu, CEO of Siket Bank. “It evaluates long-term relationships, work ethic, family context, and broader social behaviors to determine creditworthiness. This opens new doors for entrepreneurs who are typically locked out of formal finance.”

The psychometric approach is particularly significant for Ethiopia’s large informal sector, where credit exclusion is a persistent challenge. By gauging trustworthiness beyond traditional balance sheets, the bank hopes to expand access to capital for promising small business owners.

Beyond lending innovation, Siket Bank announced key digital milestones: the launch of mobile banking services and the establishment of a modern data center. These developments are part of the bank’s broader push to modernize its operations and serve an expanding customer base that now exceeds 600,000 clients.

“These may seem like simple steps for legacy banks, but for a newly transitioned institution like ours, they represent bold progress,” said Damte. He emphasized the bank’s vision to be a catalyst for inclusive growth in Ethiopia’s shifting financial landscape.

The panel closed with a unified message from stakeholders: Ethiopia’s industrial growth will remain stunted without bold financial innovation.

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Ethiopia’s Deposit Insurance Fund Mobilizes ETB 5.89 Billion Birr in Nine Months

Pakistan-Africa Trade Development Conference and Exhibition to be Held in Addis Ababa

374 New Weekend Markets Launched, Total Reaches 1,434 Nationwide

Harar Joins Global Tourism Network, Marking a New Era for the Historic City

East Africa Unveils First Regional Stock Index to Boost Market Integration

Ethiopian Airlines Wins Double Honors at 2025 Global Aviation Awards

Safaricom Ethiopia Wins Double Recognition at Vodacom Group External Relations Conference 2025

Ethiopia Reclaims 3.7 Million Hectares Through Nationwide Soil and Water Campaign

Invest In Ethiopia 2025 Forum to Drive USD 3 Billion in FDI

Siket Bank Claims At the Forefront of Ethiopia’s Manufacturing Transformation