The House of Peoples’ Representatives has unanimously voted to repeal the outdated Foreign Employment Affairs Proclamation No. 923/2024 and replace it with Proclamation No. 1389/2025 during its 41st regular session held yesterday.

Presenting the resolution to parliament, Dr. Negeri Lencho, Chair of the Standing Committee on Human Resource Development, Employment, and Technology Affairs highlighted that the previous law contained segmented clauses restricting categories of overseas work, including domestic service, unskilled labor, and partially foreign-educated roles, which hindered citizens’ ability to access timely and efficient overseas employment. 

The revised law clarifies that it will prevent illegal foreign work permits, enable a modern centralized work permit agency, protect the rights and security of citizens working abroad, and require sending agencies to deposit standby funds, all to safeguard citizens. 

This will provide a streamlined pathway for overseas work, emphasizing professional and technical skills, and supporting individuals with varied vocational backgrounds, including those lacking formal credentials or having non-traditional experience. 

Minister Muferihat Kamil of Labor and Skills contrasted the changes, noting the repeal will eliminate previous restrictions and promote technology-backed professional development aligned with national competitiveness objectives. “Previously marginalized professions and semi-skilled workers faced legal barriers,” noted the Minister, praising the repeal as a victory for legal clarity and equal opportunity. 

Lawmakers noted that the draft proclamation will save citizens from illegal brokers and prevent illegal trafficking. 

The African Development Bank has granted 400,000 dollars to help the country’s two key capital market institutions: the Ethiopian Capital Market Authority (ECMA) and the Ethiopian Securities Exchange (ESX). This support is aimed at giving Ethiopia’s young capital market the tools it needs to grow, attract investment, and ultimately become a meaningful player in the regional financial landscape.

The grant will support ECMA in launching a modern public disclosure platform designed to enhance transparency and ensure that investors, issuers, and stakeholders have timely access to market-relevant information. This system is expected to promote informed decision-making, enable fair price discovery, and foster investor confidence. For the ESX, the grant will enable the introduction of innovative financial instruments, including exchange-traded funds (ETFs), sukuks, and green bonds.

Speaking on the development, Hana Tehelku, Director General of ECMA, called the partnership “a critical step in building a vibrant and resilient Ethiopian capital market.” ESX CEO Tilahun Kassahun noted the importance of transitioning from foundational setup to real market impact, while AfDB’s Financial Sector Development Director Ahmed Attout highlighted Ethiopia’s potential to become a regional financial hub. 

At a recent session in the House of Peoples’ Representatives, Finance Minister Ahmed Shide reaffirmed the government’s firm position that spending must be contained within the country’s revenue capacity. Addressing questions from parliamentarians on the draft federal budget for the 2025/2026 Ethiopian fiscal year, the minister emphasized the need to balance ambitious expenditure plans with realistic revenue projections.

The proposed budget, totaling ETB 1.93 trillion, reflects a significant allocation toward recurrent spending, which accounts for the largest portion of expenditures. Minister Shide explained that while recurrent costs have risen, particularly due to debt servicing and social service obligations such as salaries and essential programs, the government remains committed to maintaining fiscal discipline and gradually improving capital investments.

Lawmakers expressed concern over the growing share of recurrent expenditures relative to capital spending, questioning how this shift might affect Ethiopia’s long-term economic growth and development goals. In response, the minister acknowledged these challenges but stressed that meeting recurrent obligations remains necessary to sustain the government’s functions and social commitments.

During the discussion, the minister also addressed ongoing tax reforms. He highlighted that the government is actively revising tax laws to enhance collection and ensure fairness, but he acknowledged that previous adjustments have already impacted households and businesses, raising legitimate concerns among the public.

Questions about the value-added tax on fuel also surfaced, with some parliamentarians asking whether the VAT diminishes the effect of fuel subsidies intended to ease consumer costs. Ahmed responded that subsidies need to be implemented in a targeted and fiscally sustainable manner, hinting at potential future reviews of subsidy and tax policies.

The National Bank of Ethiopia (NBE) has announced a full transition to electronic government and NBE securities with the issuance of Directive No. MFAD/001/2025, marking a major step in modernizing the country’s financial markets.

The directive designates the Central Securities Depository (CSD) as the sole official registry for all government securities. Electronic records will now serve as the definitive proof of ownership, replacing paper-based certificates in a shift aimed at improving market efficiency, transparency, and reducing risks.

All existing holders of government securities are required to submit their physical certificates to authorized CSD members — including commercial banks and licensed brokers — for conversion into electronic form. Failure to comply by the specified deadline could result in penalties of up to 5% of the bond’s face value.

Each security will be assigned a unique International Securities Identification Number (ISIN) to streamline clearing processes and facilitate global recognition.

The directive also outlines procedures for handling pledged securities, which will be electronically marked to protect the rights of borrowers and lenders. Securities not tendered within five years will be transferred to a special account administered by the Ministry of Finance.

According to the NBE, this reform is part of Ethiopia’s broader financial sector modernization agenda and is aligned with international standards. It is grounded in the legal framework of the National Bank of Ethiopia Proclamation No. 1359/2025 and the Capital Market Proclamation No. 1248/2021.

CSD member institutions are responsible for facilitating the transition, including document verification, electronic conversion, and record-keeping. The NBE has committed to closely monitoring the rollout and providing regular updates through official channels.

Just four years after entering Ethiopia’s once-closed telecom market, Safaricom Ethiopia says it has reached 10 million active users, measured over the past 90 days. The company announced the milestone at a press briefing held at its headquarters in Addis Ababa this morning, reflecting its fast growth in a sector long dominated by a single state provider.

Wim Vanhelleputte, the company’s CEO, acknowledged the progress but said it is only a stepping stone.

“Ten million active subscribers is not a small achievement,” he said. “But it’s not the final destination either. It’s a benchmark that tells us we’re on the right path, but we still have a long road ahead.”

Safaricom was granted a telecom license in mid-2021, ending Ethiopia’s decades-long monopoly in the sector. Since then, the company has built out a fast-expanding 4G network that it says now covers more than half the population. As of now, over 3,100 network sites have been rolled out across more than 150 towns and cities.

The company reports an average of 31,000 new customers joining daily. Of the 10 million active users, around 7.1 million regularly use mobile data services, an indicator of Ethiopia’s increasing digital appetite. Monthly data consumption per user has grown to 6.5GB, up by more than half compared to last year.

Behind the numbers is a sizable financial outlay. Safaricom Ethiopia says it has invested more than ETB 300 billion (about USD 2.27 billion) in infrastructure and digital financial services over the past four years.

The company directly employs about 900 people, most of whom are Ethiopian nationals. It also estimates that over 20,000 people have found indirect jobs through its operations—selling SIM cards, distributing airtime, or supporting the network build-out.

In addition to its commercial growth, the telecom provider highlighted its community engagements. It has allocated over 100 million birr to schools for laptops, routers, and free internet, and provided assistance to communities affected by natural disasters in regions such as Afar, Gofa, and Ashewa. A 10 million birr donation was also made to the Mekedonia Humanitarian Association.

The company’s next big goal is to reach financial break-even—something the CEO says could happen within the next 6 to 12 months. Doing so would allow shareholder and lender funds to shift toward expansion, rather than operating costs.

Safaricom also has plans to nearly double its network sites to over 6,000 by December 2026, aiming to reach up to 90% of the population. But the company admits the path forward won’t be easy.

Vanhelleputte said the company is currently selling mobile data at prices “three times cheaper” than the continental average below cost. While this has helped attract users, he warned that the model is not sustainable.

“There is an urgent need for price rationalization, not just for Safaricom, but for the telecom sector as a whole,” he said. “If we’re serious about investing further, ETB 500 billion more will be needed across the industry in the coming years—we’ll have to rethink pricing.”

At the Afreximbank annual meeting in Abuja on June 27, Nigerian industrialist Aliko Dangote unveiled a sweeping strategy aiming to eliminate Africa’s reliance on fertilizer imports within 40 months. Central to this vision is a planned expansion of his USD2.5 billion granulated urea facility on the outskirts of Lagos, currently the continent’s largest of its type. The plant now produces 3 million MT annually, with 37% of its output exported primarily to the U.S.

Africa today imports over 6 million MT of fertilizer each year, which exerts considerable pressure on foreign exchange reserves, especially for countries like Ethiopia striving to stabilize external accounts and support agricultural development. Dangote’s ambition is to double current capacity, surpassing Qatar to become the world’s top urea producer. “In the next 40 months, Africa will not import fertilizer from anywhere. We have a very aggressive trajectory at the moment. We want to put Dangote to be the highest producer of urea, bigger and higher than Qatar. Just give me 40 months,” he declared.

Ethiopia’s Minister of Trade and Regional Integration, Kassahun Gofe (PhD), is making a steady recovery following a road accident on the evening of 22 June 2025. The Ministry issued a statement today, 30 June 2025, at approximately 6:00 PM EAT, addressing concerns raised by local and international media reports regarding the incident.

The official announcement clarified that the accident took place near Karl Square in Addis Ababa around 7:00 PM on June 22, as the Minister was returning home from work. Dispelling earlier reports of serious injuries, including fractured ribs, the Ministry confirmed that Dr. Kassahun suffered only a minor injury to his leg.

Sources within the Ministry, speaking to EBR, confirmed this information. Dr. Kassahun is reportedly now able to walk with some assistance, showing positive signs of recovery. He is expected to take a short rest before resuming his official duties soon.

Ethiopia’s foreign exchange reserves have tripled over the past year, marking a remarkable turnaround fueled by aggressive monetary tightening, robust export performance, and a sweeping reform of the foreign exchange regime. The development underscores the growing resilience of the country’s external sector, even as the National Bank of Ethiopia (NBE) maintains its cautious stance on inflation and domestic liquidity.

The update follows the third Monetary Policy Committee (MPC) meeting of 2025, held on June 30. While inflationary pressures appear to be easing—headline inflation remained steady at 14.4 percent in April and May, with food inflation down to 12.1 percent from 25.6 percent a year earlier—the NBE made clear that the disinflation process is far from complete. The Committee reaffirmed its commitment to stability, opting to keep the benchmark interest rate unchanged at 15 percent and to extend the 18 percent credit growth ceiling through September.

A key factor behind the central bank’s cautious tone is the elevated cost of living resulting from years of cumulative inflation. Although monthly inflation rates were subdued at just 0.1 and 0.2 percent in the last two months, the MPC stressed the importance of anchoring expectations until single-digit inflation becomes entrenched.

Beneath the surface, however, Ethiopia’s economic indicators reveal signs of structural improvement. Export earnings have surged—led by coffee and gold—while the services sector has shown renewed vitality in tourism and air transport. At the same time, the reform of the exchange rate system introduced in mid-2024 has contributed to better currency price discovery, a slowdown in import growth, and renewed confidence among remitters and capital account investors.

The resulting improvement in the external balance is striking. Ethiopia’s current account deficit has narrowed significantly, while the balance of payments has shifted into a strong surplus. In parallel, the NBE has accumulated substantial foreign exchange reserves, helped in part by gold-related inflows, which are now nearly three times higher than the level recorded a year ago. This external buffer offers the country much-needed stability as it navigates fiscal and monetary transitions.

Domestically, the credit environment remains tightly controlled. Despite signs of growing demand for credit—reflected in broad money growth of 23.3 percent and commercial bank loan stock growth of 18.1 percent—the NBE continues to restrain lending in an effort to avoid reigniting inflationary pressures. Notably, reserve money has grown even faster, yet the cap on lending growth has helped prevent excessive liquidity expansion.

Short-term interest rates have also remained well-anchored. The inter-bank money market rate stood at 17.5 percent in May, comfortably within the NBE’s 15 percent ±3% corridor. Meanwhile, the 91-day Treasury bill yield rose to 17.7 percent—up from 16.1 percent in December 2024—indicating a positive real interest rate environment, critical for maintaining investor confidence and controlling inflation.

In a significant structural shift, the NBE has repealed a 2022 directive requiring commercial banks to purchase treasury bonds, a policy tool once used to support deficit financing. With improved fiscal performance and growing access to concessional and market-based finance, the government is no longer relying on direct central bank support. The MPC welcomed this development, noting it as a step toward more market-driven monetary management.

Looking ahead, the central bank may revise its credit growth controls in September, provided that disinflation trends continue. However, it has pledged to deploy its full range of policy instruments—including open market operations, forex interventions, and adjustments to reserve requirements—to maintain control over inflation and liquidity conditions.