Blog – Page 32 – Ethiopian Business Review

The Ethiopian Coffee and Tea Authority, in collaboration with the Italian government and the Commercial Bank of Ethiopia, has announced a loan aimed at supporting Ethiopian coffee producers, suppliers, and stakeholders across the sector’s value chain, according to the Ministry of Agriculture.

The Italian government has approved a loan of 10 million euros (approximately 10.9 million USD) for the sector, with the Commercial Bank of Ethiopia responsible for administering the funds.

Minister of Agriculture Dr. Girma Amente stated that more than 5 million farmers and traders are involved in Ethiopia’s coffee production value chain. He highlighted that financial constraints remain a major challenge within the coffee sector, and the extended credit service from the Italian government is expected to significantly boost productivity.

He also pointed to the tangible improvements made over the past five years in increasing both coffee production and productivity, underlined by the Green Legacy Program, which has contributed to a rise in the country’s forest cover and the planting of billions of coffee seedlings.

Michael Mora, Director of the Italian Development Cooperation Agency, emphasized that the Italian government’s support reflects a commitment to the joint development efforts between the two nations. He noted that coffee is not only an economic asset for Ethiopia but also a key part of the nation’s identity.

Commercial Bank of Ethiopia President Abe Sano acknowledged the obstacles affecting the coffee sector, including market fluctuations and production challenges. He reaffirmed that Ethiopia has the potential to produce world-class coffee, and cooperation is key to strengthening the sector’s value chain.

Ethiopian Airlines has introduced a Boeing 737-800 Business Jet to its fleet, dedicated exclusively to VIP and small-group charter flights. The move signals the airline’s growing focus on premium travel, catering to Africa’s investors, business leaders, diplomats, and high-profile travelers seeking world-class service with greater flexibility and privacy.

According to Ethiopian Airlines, the newly acquired aircraft is tailored for a superior in-flight experience, featuring a spacious and elegantly designed cabin with premium seating. Configured to accommodate 19 passengers for commercial operations and 32 for private use, the jet provides an exclusive, intimate atmosphere. Passengers can enjoy state-of-the-art entertainment on up to 42-inch monitors, high-speed Wi-Fi, and personalized onboard dining.

“With the addition of this Boeing 737-800 Business Jet, we are elevating our charter service to new heights,” said Ethiopian Airlines Group CEO, Mr. Mesfin Tasew. “This is yet another step in our commitment to fostering business and investment opportunities across Africa and beyond.”

Beyond luxury, the new Business Jet enhances convenience and efficiency, offering flexible flight schedules, access to private terminals, and extended range capabilities for seamless short- and medium-haul charter operations. Ethiopian Airlines’ latest offering strengthens its position as Africa’s premier aviation group, reinforcing its commitment to meeting the evolving needs of business and elite travelers.

Belgium and Rwanda have expelled each other’s diplomats, marking a sharp deterioration in relations between the two countries. According to the Reuters, the expulsion comes amid escalating tensions over the conflict in the eastern Democratic Republic of Congo, where Rwanda is accused of backing M23 rebels. Kigali has given Belgian diplomats 48 hours to leave, accusing Brussels of “manipulating lies” to create a hostile narrative against Rwanda.

Belgium swiftly retaliated, with Foreign Affairs Minister Maxime Prevot condemning the move as “disproportionate” and accusing Rwanda of refusing to engage in dialogue over their differences. Brussels announced it would declare Rwandan diplomats persona non grata in response.

The dispute comes at a time when African leaders are pushing for a lasting ceasefire in Congo, where violence continues to disrupt the region. Rwanda’s involvement in the conflict has raised concerns internationally, and the expulsion of diplomats is a further blow to diplomatic relations between these two nations.

Ethiopia has officially signed a contract with Shanghai Engineering Centre of Microsatellite for the procurement of its third Earth observation satellite, Ethiopian Remote Sensing Satellite-2 (ETRSS-2). The agreement, finalized through an international open tender, underscores the country’s expanding space ambitions and its commitment to leveraging technology for economic and environmental development.

The contract was signed by Abdisa Yilma, Director General of the Ethiopian Space Science and Geospatial Institute (ESSGI), and Xiaocheng Zhu, Deputy Director General of the Shanghai Engineering Centre of Microsatellite, with Dr. Fozia Amin, State Minister for Innovation and Technology, reaffirming the government’s commitment to the project.

According to the Institute, ETRSS-2 is slated for completion in 18 months and will have a five-year operational lifespan. The satellite is expected to provide crucial data for agriculture, forestry, water resource management, and disaster risk reduction, enhancing Ethiopia’s ability to respond to environmental challenges. With two satellites already in orbit, Ethiopia continues to expand its space capabilities, reinforcing technology as a pillar of sustainable development.

Ethiopia has signed a significant cooperation agreement with Russia to support the modernization of its naval forces. On Friday, a Russian Navy delegation, led by Deputy Commander-in-Chief Admiral Vladimir Vorobyev, visited Ethiopia’s naval facilities and training center in Bishoftu, 30 miles south of Addis Ababa. The agreement focuses on naval training and capacity building, marking a major milestone in Ethiopia’s effort to rebuild its naval forces.

This partnership follows an initial 2022 visit and underscores Ethiopia’s commitment to enhancing its maritime capabilities. Ethiopia’s navy, which was disbanded in 1993 after the country became landlocked, has been in the process of reconstruction since 2018 under Prime Minister Abiy Ahmed. The recent agreement with Russia expands Ethiopia’s foreign partnerships as it works to modernize its navy and improve its readiness to protect its interests in international waters.

Commodore Jamal Tufisa, Deputy Commander of Operations for the Ethiopian Navy, stressed that the cooperation will strengthen Ethiopia’s naval rebuilding efforts, ensuring the country’s naval forces are better equipped to secure its maritime interests.

The agreement comes as Ethiopia continues to push for seaport access and a stronger naval presence, which is crucial for enhancing both trade and defense capabilities. This collaboration with Russia also aligns with Moscow’s growing interest in the Indian Ocean, as it seeks to establish a permanent naval base in Port Sudan, according to The Marine Times. However, the ongoing conflict in Sudan may delay such developments.

Africa’s reliance on foreign currencies such as the U.S. dollar, and euro is draining its economies, exacerbating financial instability, and stunting growth. With essential imports—from fuel to machinery—priced in these currencies, fluctuations in their value directly drive up costs, fueling inflation and widening trade deficits. When African nations sell goods internationally, they are forced to reconvert foreign earnings into local currency, incurring additional costs in exchange rate spreads and banking fees.

A 2024 report by the United Nations Conference on Trade and Development (UNCTAD) highlighted that currency volatility further strains small businesses reliant on foreign currency transactions. The report noted that energy dependency poses another major challenge for African economies.

In an interview with Sputnik Africa on the sidelines of the 57th session of the ECA Conference of African Ministers of Finance, Planning, and Economic Development in Addis Ababa, Dr. Melaku Geboye Desta, Coordinator of the African Trade Policy Centre (ATPC), explained, “By removing non-African currencies as intermediaries and eliminating the costs associated with currency conversion and reconversion, we can significantly reduce transaction costs. This will make trade cheaper, more efficient, and highly competitive.”

Dr. Melaku further highlighted that Africa’s dependence on currencies like the U.S. dollar costs the continent approximately USD5 billion annually, according to data from Afreximbank.

He also pointed to the Pan-African Payment and Settlement System (PAPSS), an innovative solution developed by the continent to address this challenge. PAPSS allows for the direct clearing of transactions between African countries, bypassing the need for an intermediary currency.

“With PAPSS, there are vast opportunities to cut transaction costs, speed up trade, and make intra-African trade more competitive,” Dr. Melaku added.

PAPSS, supported by 15 central banks, is set to launch an African currency market platform later this year. This initiative aims to facilitate direct exchanges between local currencies, bypassing the need for intermediate currencies like the U.S. dollar.

Ethiopia’s economic reforms have driven USD3.8 billion in foreign exchange earnings over the past seven months, according to Minister of Trade and Regional Integration Kassahun Gofe (PhD). As the country strengthens its trade and investment environment, over 200 local and international companies are participating in the 14th Ethio-Chamber International Trade Fair, which opened today in Addis Ababa.

Running from March 13 to 17, 2025, the trade fair is organized by the Ethiopian Chamber of Commerce and Sectoral Associations in collaboration with the Ministry of Trade and Regional Integration. The event, themed “Buy Ethiopian,” aims to enhance business partnerships, expand market opportunities, and stabilize product prices.

Minister Kassahun emphasized that Ethiopia’s policy reforms are boosting trade competitiveness and increasing export revenues, contributing to the foreign exchange growth.

Chamber of Commerce President Sebseb Abafira highlighted the fair’s role in fostering business connections, investment opportunities, and international trade linkages. Held at the Addis Ababa Exhibition Center, the event showcases local enterprises and global trade institutions working to expand Ethiopia’s market presence.

Ethiopia’s claims of wheat self-sufficiency are facing growing scrutiny as new data raises doubts about the government’s figures. Prime Minister Abiy Ahmed has hailed the country’s agricultural reforms, claiming Ethiopia has gone from importing wheat to becoming a major exporter, with production supposedly reaching 23 million tonnes in 2023-24, up from 15.1 million tonnes in 2022-23.

However, The Economist analysis reveals significant discrepancies in the government’s reported figures. Independent estimates from the African Development Bank (AfDB) and the U.S. Department of Agriculture (USDA) suggest Ethiopia’s actual wheat production is far lower—7.5 million tonnes in 2023-24, and 5.8 million tonnes in 2022-23, respectively.

These conflicting numbers raise questions about the accuracy of Ethiopia’s self-sufficiency claims. Despite assertions that the country no longer imports wheat, USDA data shows private traders brought in 1.4 million tonnes in 2023, with a 57% increase in imports during the first five months of 2024.

The Ethiopian government’s agricultural strategy, which includes the promotion of “cluster farms” and increased irrigation, has drawn praise from international bodies. However, critics argue that focusing heavily on wheat monocropping could harm soil quality in the long run.

The controversy over wheat production data also points to potential issues within the country’s statistical agencies. The Ethiopian Statistical Service (ESS) recently removed figures from the central bank’s website that contradicted official estimates, according to The Economist.

While international organizations like the FAO and AfDB have recognized Ethiopia’s agricultural progress, neither has fully endorsed the government’s wheat production numbers. Meanwhile, food aid remains a pressing issue, with 16 million Ethiopians still relying on assistance in 2024, according to the World Food Programme.

In a significant move to deepen bilateral relations, Ethiopia and Cuba have signed two memoranda of understanding (MoUs) focusing on the development of sports and technology. The agreements were formalized by Dr. Belete Mola, Ethiopia’s Minister of Innovation and Technology, and Maylin Suarez Alvarez, Cuba’s Ambassador to Ethiopia, with the participation of His Excellency Shewit Shanka, Ethiopia’s Minister of Culture and Sports, and Bruno Eduardo Rodriguez Parrilla, Cuba’s Minister of Foreign Affairs.

These MoUs are poised to strengthen the long-standing friendship between the two nations, fostering cooperation in areas of mutual interest. Both countries aim to leverage their partnership in the technology sector, with Cuba offering its extensive experience to help Ethiopia accelerate its digital transformation. Cuba’s expertise will serve as a catalyst in Ethiopia’s efforts to enhance its technological capabilities, supporting a broad range of sectors, including innovation, digital infrastructure, and education.

Ambassador Maylin Suarez Alvarez emphasized the historical significance of the relations between Ethiopia and Cuba, underscoring the importance of further collaboration in the technology sector. The MoU is not just a document, but a commitment to ongoing dialogue, aiming to turn these agreements into tangible projects that will benefit both nations.

The European Union has unveiled a €4.7 billion (USD5.1 billion) investment package in South Africa, according to Reuters, marking a strategic push to deepen economic ties with Africa’s most industrialized nation at a time when both Pretoria and Brussels face increasing tensions with Washington. The announcement comes as South Africa holds the G20 presidency, a role that has been largely ignored by U.S. officials.

European Commission President Ursula von der Leyen and European Council President Antonio Costa arrived in South Africa as part of a high-level delegation, using the visit to reaffirm Europe’s commitment to a stronger partnership. Reuters reports that European leaders see the trip as an opportunity to navigate shifting geopolitical currents, particularly as the U.S. redefines its global alliances.

Tensions between the U.S. and its traditional allies have escalated, with European leaders increasingly frustrated by Donald Trump’s pivot toward Russia in the ongoing Ukraine war, a move that has disrupted long-standing Western unity on the conflict. Meanwhile, Pretoria has drawn criticism from Washington over its genocide case against Israel at the World Court, further straining relations.

As Reuters notes, the U.S. administration has also waded into European and South African domestic politics, criticizing the EU’s efforts to isolate far-right movements while simultaneously cutting aid to South Africa over land reform policies aimed at addressing racial inequality. Relations between the EU and South Africa have also been uneasy since Pretoria declined to explicitly condemn Russian President Vladimir Putin for his 2022 invasion of Ukraine.

Speaking in Cape Town, von der Leyen framed the EU’s investment as part of a broader effort to reinforce strategic alliances. “In a moment of increased confrontation and competition, we must strengthen our partnership further,” she said. A key area of focus is clean hydrogen, where South Africa’s abundant raw materials and renewable energy potential position it as a future global leader.

For South African President Cyril Ramaphosa, the investment signals progress, but he emphasized the need for balance. “African relations with the European Union should be built on a mutually beneficial partnership,” he said. He also welcomed European support for multilateralism, particularly at a time when nationalism is on the rise.

The visit, as highlighted by Reuters, is part of Europe’s broader effort to counterbalance shifting U.S. policies and reaffirm its economic and diplomatic influence in Africa. For South Africa, it presents an opportunity to leverage global realignments while securing foreign investment to drive industrial growth.

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Ethiopia Secures USD10.9M Loan from Italy to Boost Coffee Sector’s Growth

Ethiopian Airlines Expands VIP Charter Services with Boeing 737-800 Business Jet

Belgium and Rwanda in High-Stakes Diplomatic Clash Over Eastern Congo Role

Ethiopia Secures Deal for Third Earth Observation Satellite

Ethiopia Signs Naval Cooperation Agreement with Russia

Africa’s Foreign Currency Dependence Costs USD5 Billion Each Year

Ethiopia Earns USD3.8 Billion in Foreign Exchange

Ethiopia’s Wheat Self-Sufficiency Claims Questioned Amid Discrepancies

Ethiopia and Cuba Enhance Diplomatic and Technological Ties with New MoUs

EU Announces USD5.1 Billion Investment in South Africa Amid Strained U.S. Relations