Blog – Page 27 – Ethiopian Business Review

A high-level Ethiopian delegation is participating in the 150th Inter-Parliamentary Union (IPU) Assembly in Tashkent, Uzbekistan, this week. The group, led by House of Federation Speaker Agegnehu Teshager, represents Ethiopia at one of the world’s largest gatherings of parliamentarians.

Addressing the international forum, Speaker Agegnehu delivered Ethiopia’s national statement, reiterating the country’s commitment to multilateral cooperation through the IPU framework. He emphasized Ethiopia’s support for international efforts to achieve the United Nations Sustainable Development Goals (SDGs) by 2030.

The speaker outlined Ethiopia’s domestic development priorities, noting their alignment with both the UN’s SDGs and the African Union’s Agenda 2063. He referenced Ethiopia’s ongoing national development plan as evidence of this coordinated approach.

In his remarks, Agegnehu highlighted Ethiopia’s environmental initiatives, specifically mentioning the country’s large-scale tree planting program. He presented this as part of Ethiopia’s contribution to global climate change mitigation efforts.

The IPU assembly, which brings together legislators from 178 member states, serves as a platform for parliamentary diplomacy and international cooperation. Ethiopia’s participation underscores its continued engagement with global governance institutions.

The Ethiopian delegation is expected to hold bilateral meetings with other national delegations during the week-long conference. These discussions will focus on strengthening inter-parliamentary relations and sharing legislative best practices.

The Oromia Regional Government has taken a significant step toward modernizing agriculture with the official handover of 1,402 tractors to local farmers and agricultural organizations. The distribution ceremony, held today in Shashemene, marks one of the region’s largest single deployments of farming equipment to date.

Regional President Shimelis Abdisa presided over the event alongside other senior government officials. The tractors were allocated to a mix of individual farmers, cooperatives, and unions that had previously gone through a formal application and registration process with regional authorities.

This initiative represents a concrete effort by the Oromia administration to advance its agricultural mechanization program. By providing modern farming equipment directly to beneficiaries, the regional government aims to transform traditional farming practices across Ethiopia’s most populous region.

The Shashemene distribution follows established protocols, with all recipients having met official eligibility requirements. While the ceremony focused on the current handover, observers note this likely signals the beginning of broader mechanization efforts across Oromia’s agricultural zones.

This tractor distribution aligns with Ethiopia’s national priorities for agricultural development and food security. As the country’s primary crop-producing region, Oromia’s farming modernization efforts could have significant implications for both local livelihoods and national agricultural output.

The handover ceremony concluded with demonstrations of the new equipment, though operational challenges and training needs may emerge as farmers begin implementing the machinery in their fields. Government monitoring of the program’s implementation and impact is expected in the coming agricultural seasons.

Ethiopia is set to revamp its outdated tourism policy in a bold move to elevate its standing on the world stage and unlock the sector’s untapped economic potential. The Ministry of Tourism revealed plans for a comprehensive update to the 13-year-old framework, aiming to align it with modern trends, digital innovations, and sustainable practices that define today’s global tourism industry, according to the state-run Ethiopian Press Agency.

At a recent stakeholder meeting, Tourism Minister Selamawit Kassa underscored the urgency of modernization, pointing to Ethiopia’s wealth of historical, cultural, and natural attractions that remain underutilized. “Our current policy no longer reflects the dynamic shifts in global tourism,” she said. “A revised approach will not only enhance our international competitiveness but also drive domestic tourism and amplify economic returns.”

The proposed overhaul seeks to address critical gaps, including low investment, workforce limitations, and weak global market positioning. Yezihalem Sisay, a senior ministry official, acknowledged that despite Ethiopia’s vast potential—from the rock-hewn churches of Lalibela to the Simien Mountains—the sector has struggled to compete with other African destinations. “This new policy will allow us to develop destinations more strategically, diversify attractions, and forge stronger market linkages,” he explained.

Key focuses of the updated policy include integrating digital tools to streamline tourism services, promoting eco-friendly travel practices, and improving governance to attract higher investment. Stakeholders at the consultation echoed the need for robust promotional campaigns and inclusive planning to ensure long-term success.

The Ethiopia Securities Exchange (ESX) has announced that Ethiopia’s interbank money market (IMM) has surpassed ETB 500 billion in total transaction volume within just six months of operation, marking a significant milestone in the country’s financial sector.

Launched in October 2024 by the National Bank of Ethiopia (NBE), the IMM was established to facilitate short-term borrowing and lending among banks, enhancing liquidity management and improving financial market efficiency. Governed by the Interbank Money Market Rules, the platform has rapidly gained traction, reflecting growing investor confidence and increasing market activity.

The milestone underscores the evolving landscape of Ethiopia’s banking sector, where structured platforms like the IMM are strengthening market transparency and fostering economic stability. As momentum builds, this achievement highlights the potential for further financial sector reforms, deeper investor participation, and a more resilient financial ecosystem in Ethiopia.

The Addis Ababa Transport Bureau has confirmed that construction of the city’s long-awaited Bus Rapid Transit (BRT) system will commence sooner this fiscal year, marking a major step forward in modernizing the capital’s public transportation network. Speaking to Ahadu Radio, Dagnachew Shiferaw, the bureau’s deputy head, revealed that 15 BRT corridors are planned for development in the coming years, with the first phase—a 19-kilometer route stretching from Jemo 3 to Piyasa Adwa—slated to begin construction this year. Funded with support from the French government, the project has already secured a contractor, ensuring that work will proceed as scheduled.

Unlike conventional bus services, the BRT system will operate on dedicated lanes, significantly reducing delays caused by traffic congestion. Dagnachew emphasized that the current practice of buses waiting to fill up before departing—a fuel-saving measure that inconveniences passengers—will be eliminated once the express service is operational. Commuters will benefit from reliable, on-demand transportation without unnecessary waiting times. The BRT model, successfully implemented in cities worldwide, is expected to bring similar efficiency gains to Addis Ababa.

Looking ahead, the city’s transport infrastructure will feature a dual-system approach: a mass transit train network alongside the BRT for high-capacity movement, while taxi services will cater to middle-income residents. As construction progresses on the initial line, additional BRT routes will be developed in parallel, signaling a broader shift toward a faster, more organized urban transit system. This initiative represents a critical milestone in addressing Addis Ababa’s growing mobility challenges and improving the daily commute for millions of residents.

Yodahe Arayasalassi, Director of the Ethiopian National ID Program, has been recognized by San Francisco-based Okta as one of 25 global leaders in digital identity. The recognition highlights his pivotal role in shaping Ethiopia’s national identification system, which has already registered over 13 million citizens.

Under Arayasalassi’s leadership, the Ethiopian National ID Program is set to reach 70 million citizens by 2025, providing Ethiopians with secure, accessible, and reliable digital identity solutions. This initiative is a crucial part of the country’s efforts to enhance governance, improve service delivery, and promote financial inclusion.

In a statement shared by Okta, the company emphasized how digital identity has become a cornerstone of global security, particularly in the wake of the pandemic. With the rapid digital expansion, the need for secure digital identities has never been more critical. Okta’s recognition of Arayasalassi underscores the transformative role Ethiopia is playing in the global digital identity landscape.

Okta’s annual Identity 25 honors individuals who have made significant contributions to securing and evolving digital identity systems. The initiative aims to highlight the leaders who are shaping the future of identity, protecting personal data, and ensuring digital inclusivity for all.

The Ethiopian Customs Commission has announced sweeping changes to the regulation of goods imported without foreign currency payments (Franco-Valuta), as part of a broader financial sector overhaul.

The National Bank of Ethiopia (NBE) confirmed the repeal of the decades-old Establishment Proclamation No. 691/2000, replacing it with the more robust NBE Proclamation No. 1359/2017. The move grants the central bank stronger oversight powers while scrapping the previous Council of Ministers Regulation No. 88/1995, which governed Franco-Valuta imports.

In a transitional measure, the Customs Commission will continue processing foreign exchange license requests under existing procedures—but with stricter scrutiny. Non-commercial Franco-Valuta requests from government agencies, NGOs, and international organizations must now be vetted by Customs Operations Managers and approved only by senior Customs Office Managers.

The NBE has ordered meticulous record-keeping, requiring monthly reports on Franco-Valuta transactions to prevent misuse. The changes signal Ethiopia’s push to modernize trade finance controls while managing forex shortages—a critical issue for import-dependent industries.

Businesses and institutions must adapt quickly, as further directives are expected. The reforms aim to curb abuse of forex exemptions, ensuring hard currency is prioritized for essential imports.

Ethiopia is set to host the fourth edition of the Africa Startup Ecosystem Builders Summit & Awards (ASEB 2025). The event, organized by the Africa Startup Ecosystem Builders Society, will bring together entrepreneurs, investors and policymakers from across the continent to Addis Ababa from October 1-3.

Originally planned for Cote d’Ivoire, the summit was relocated due to scheduling conflicts with that country’s national elections. The theme for this year’s gathering is “Empowering Africa’s Startup Ecosystem Builders: Tools, Funding, and Global Visibility for Sustainable Growth,” focusing on strengthening support systems for emerging businesses.

McKevin Ayaba, founder of the ASEB Society, explained that the change in venue presents an exciting chance to highlight Ethiopia’s entrepreneurial potential. “Every good story has moments where the unexpected creates new opportunities,” Ayaba said. “Ethiopia represents an exciting frontier with tremendous entrepreneurial potential.”

Local firm Sahan Advisory Services will serve as the host partner for the event. The company’s co-founder Dr. Jibril Mohamed Ahmed was previously honored as ASEB’s Startup Mentor of the Year in 2022. Sahan CEO Dr. Kassahun Delene Deyassa emphasized the summit’s importance for Ethiopia’s innovation landscape, noting it will help amplify the voices of those building the country’s entrepreneurial ecosystem.

The three-day program will include an awards ceremony recognizing Africa’s top startup supporters, practical workshops on business development topics, and tours of Ethiopia’s innovation hubs. These activities aim to connect Ethiopian entrepreneurs with continental networks and potential investors.

This event comes at a pivotal time for Ethiopia’s technology and startup sectors, which have seen rapid growth in recent years. The summit provides a platform to attract international attention and investment to local innovation efforts while strengthening Ethiopia’s connections to pan-African business networks.

Organizers expect the gathering to highlight Ethiopia’s emerging role as a hub for entrepreneurship in Africa. As Ayaba noted, the event will contribute to “the broader narrative of an Africa whose economic future is shaped by those who enable entrepreneurship.” The selection of Addis Ababa as host city reflects growing recognition of Ethiopia’s potential in the continental startup landscape.

Ethiopia and the European Union (EU) today signed a major €240 Million (USD266.7 million) grant agreement under the 2024 Annual Action Programme (AAP-2024), reinforcing their five-decade-long strategic partnership. The agreement, inked at the Ministry of Finance, targets critical development areas, including agribusiness expansion, digital skills training, post-conflict recovery, and governance reforms.

The funding will support agribusiness initiatives to enhance productivity and create jobs for smallholder farmers, while also strengthening digital skills within Technical and Vocational Education and Training (TVET) institutions to drive economic growth. Additionally, the program will bolster democratic institutions, restore basic health services in conflict-affected regions, and provide psychosocial support for survivors of gender-based violence. Another key focus is improving economic opportunities for displaced populations through integrated solutions and boosting private sector engagement in vital value chains.

Finance Minister Ahmed Shide hailed the EU’s support as pivotal in addressing Ethiopia’s pressing challenges. “This financing package is crucial for stimulating private sector investment, modernizing our tax and customs systems, and enhancing services in agribusiness, health, and education,” he said. “It reinforces our longstanding partnership and contributes significantly to our ongoing reforms.”

The minister also stressed the importance of regional integration under the EU’s Global Gateway Initiative, highlighting the Horn of Africa’s untapped potential for economic cooperation. “As we navigate evolving economic landscapes, our focus on regional cooperation is more critical than ever,” he noted, referencing collaborative frameworks like the Horn of Africa Initiative (HOAI).

EU Ambassador to Ethiopia, Sofie From-Emmesberger, underscored the agreement’s broader significance, stating, “The AAP 2024 reflects our collective commitment to advancing sustainable development in Ethiopia. This is not just a financial agreement; it is a manifestation of our shared values and goals for a prosperous future.”

Ethiopian Airlines has officially launched a new cargo charter route connecting Macao and Madrid, further cementing its position as Africa’s leading freight carrier. The inaugural flight, operated by a Boeing 777 freighter (ET3483), took off from Macao International Airport on Thursday morning, marking a strategic expansion into East Asia-Europe trade lanes.

The new route, initially operating twice weekly, is expected to handle over 20,000 tons of cross-border cargo annually, significantly enhancing trade flows between China’s Greater Bay Area, Europe, and South America. Key exports include high-demand e-commerce goods such as electronics, auto parts, apparel, cosmetics, toys, and small appliances.

This launch follows Ethiopian Airlines’ successful cargo operations in Shenzhen, Guangzhou, and Hong Kong, reinforcing its role as a critical logistics bridge between Asia, Africa, and beyond. Aman Wole Gurmu, Ethiopian Airlines’ Country Director for China, emphasized the route’s potential to deepen collaboration with e-commerce supply chains in the Greater Bay Area, a major manufacturing and trade hub.

A representative from Macao International Airport welcomed the partnership, stating that the new route will “unlock greater trade and economic opportunities” between Macao, Europe, and emerging markets. The move aligns with Ethiopian Airlines’ broader strategy to capitalize on booming global e-commerce demand while enhancing Africa’s connectivity to key global markets.

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Ethiopian Delegation Advocates Multilateral Cooperation at 150th IPU Conference

Oromia Region Distributes Over 1,400 Tractors to Boost Farm Mechanization

Ethiopia Overhauls Tourism Policy to Boost Global Appeal and Economic Growth

Ethiopia’s Interbank Money Market Surpasses ETB 500 Billion in Transactions

Addis Ababa’s Traffic Woes to Ease as BRT Construction Begins

Ethiopia’s Digital ID Chief Named Among World’s Top 25 Identity Leaders by Okta

Ethiopia Scraps Old Forex Rules for Imports, Tightens Franco-Valuta Controls

Ethiopia Set to Lead Africa’s Startup Dialogue as Host of ASEB 2025

Ethiopia Secures USD266.7M EU Funding for Agribusiness & Digital Skills

Ethiopian Airlines Expands Global Cargo Network with New Macao-Madrid Route