Daily News – Page 15 – Ethiopian Business Review

Copy-of-White-Minimalist-Economics-Headline-News-Instagram-Post-45.png

Ethiopia is set to receive USD 260 million in fresh funding from the International Monetary Fund (IMF), as part of a broader USD 3.4 billion loan program aimed at supporting economic recovery and ongoing reforms.

This latest installment brings the total IMF support disbursed under the Extended Credit Facility (ECF) to nearly USD 1.85 billion. The fund’s staff and Ethiopian authorities have now reached a staff-level agreement to complete the third review of the program.

The news comes as Ethiopia shows strong signs of macroeconomic improvement. According to the IMF, inflation is cooling down, exports are rising, and international reserves are growing faster than expected.

“Ethiopia’s economic performance has gone beyond expectations,” said Alvaro Piris, head of the IMF team that visited Addis Ababa in April. “The shift to a more flexible exchange rate has gone smoothly, and government efforts to modernize monetary policy, improve tax collection, and reform state-owned enterprises are starting to bear fruit.”

Despite the progress, challenges remain. The gap between official and black market exchange rates has widened again in early 2025. The IMF notes that fees and commissions in the foreign exchange market are still high, making currency access difficult for many businesses.

To fix this, new measures are being rolled out to make the FX market more transparent and efficient. These include easing restrictions, reducing costs, and improving regulation.

The IMF also emphasized the importance of keeping up the reform momentum. Continued discipline in monetary policy, better tax systems, and a stronger private sector are all seen as key to building long-term growth.

The ECF program, approved in July 2024, is designed to help Ethiopia stabilize its economy, support vulnerable communities, and unlock growth by encouraging private investment and reforming outdated financial systems.

Copy-of-White-Minimalist-Economics-Headline-News-Instagram-Post-44.png

Ethiopia has officially launched the Ethiopian Insurance Women Association (EthIWA), a national milestone set to foster professional advancement, ethical leadership, and continental collaboration among women in insurance.

The launch took place during the 51st Conference and Annual General Assembly of the African Insurance Organization (AIO), held this week in Addis Ababa. After nearly two decades of absence from the African Insurance Women Association (AIWA) due to the lack of a national women’s platform, Ethiopia now joins the continental network through the formation of EthIWA.

At the helm of this groundbreaking association is none other than Meseret Bezabih, CEO of Hibret Insurance S.C. and one of the most respected figures in Ethiopia’s insurance landscape. Elected as the first president of EthIWA, Meseret brings decades of experience, a record of corporate leadership, and a passion for women’s advancement to the role.

“Today, I am here to herald good news about the establishment of Ethiopian Insurance Women Association (EthIWA) at the 20th birthday of the African Insurance Women Association (AIWA) established in 2005,” she announced in her keynote speech at the launch event.

She highlighted AIWA’s core principles as a non-religious, non-political, and non-ethnic professional association, dedicated to the growth of women in the African insurance industry.

“The success of any goal is unattainable without the active participation of women,” she emphasized, adding, “Africa and Ethiopia are home to numerous thriving institutions led by women, a testament to the value of empowering female professionals.”

Meseret also reflected on the deeper qualities women bring to leadership: care, resilience, and commitment, traits often nurtured through personal roles such as motherhood and caregiving, yet deeply impactful in corporate governance and sectoral growth.

EthIWA’s establishment is expected to catalyze mentorship, leadership development, and cross-border collaboration. As a member of AIWA, the association will give Ethiopian insurance professionals a long-overdue voice on continental platforms and help elevate local standards to global levels.

In closing, Meseret reaffirmed EthIWA’s dedication: “We are determined and ready to work in full solidarity with AIWA to promote the advancement of women in Africa’s insurance industry.”

Dodai Manufacturing PLC has officially secured approval from the Addis Ababa Transport Bureau to operate its electric motorbike venture. The agreement marks a turning point for the startup, which began operations in 2023 and has since emerged as a pioneering force in Ethiopia’s nascent e-mobility sector.

The partnership, announced yesterday, is the result of extensive engagement between Dodai and city authorities. It allows the company to begin wide-scale deployment of its electric motorbikes, alongside the expansion of its innovative battery swapping network across the capital.

Yabibal Addis, Head of the Addis Ababa Transport Bureau, confirmed the agreement and praised the company’s alignment with city standards. “Today, we validated that Dodai’s motorbikes meet our reliability and quality requirements,” he said. “Motor bikes are not open to general use due to policy constraints, but with this partnership, Dodai will be able to operate under structured parameters, supporting both the company’s growth and the country’s green transport goals.”

Currently, motorcycle access in Addis Ababa remains limited to specific users, including delivery companies, government offices, and registered private firms. However, Dodai’s commitment to safety, environmental responsibility, and technological reliability helped the company meet the city’s strict regulatory framework.

Dodai CEO Yuma Sasaki emphasized the startup’s mission to build trust through performance. “Our bikes are equipped with GPS tracking, environmentally friendly, and designed to meet urban needs,” he told Ethiopian Business Review. “Earning trust from regulators is our top priority, once achieved, we expect to obtain full authorization for number plates and full-scale rollout.”

As part of the agreement, Dodai will begin official operations in Addis Ababa within the next six months. The company also plans to expand its battery swapping stations from the current count to 30–50 locations across the city, creating a seamless and convenient charging experience for riders.

In a gesture of support for public institutions and to reinforce its commitment to Addis Ababa’s green transition, Dodai is donating 40 electric motorbikes—without batteries—for pilot use. The donation aligns with the company’s broader effort to integrate its technology into public systems through an exclusive pilot program for its smart battery swapping service.

Dodai’s battery swap model allows riders to replace depleted batteries in seconds by visiting a swap station, paying a small fee via mobile, and receiving a fully charged unit—eliminating the delays and challenges associated with traditional charging infrastructure.

Copy-of-White-Minimalist-Economics-Headline-News-Instagram-Post-43.png

Ethiopia’s Council of Ministers, in its 46th regular meeting, approved the Medium-Term Macroeconomic and Fiscal Framework for 2026–2030, a key instrument to guide budget planning and policy direction for the coming fiscal years. The framework aims to expand the government’s revenue base, ensure sustainable public expenditure, and support a stable macroeconomic environment.

The approved framework is expected to serve as a foundation for next year’s federal budget, aligning fiscal strategy with broader economic reforms currently underway in the country.

In the same meeting, the Council endorsed two financial agreements signed with international development partners. A $49.55 million loan from the Arab Bank for Economic Development in Africa will support youth employment projects in coordination with agro-industrial parks. A second loan of SDR 45.1 million from the International Development Association (IDA) will be directed toward improving health service delivery for women and girls. Both loans carry favorable conditions, including long grace periods and minimal service fees.

The Council also approved a regulation prepared by the Ministry of Labor and Skills, which sets service fees for foreign employment agencies. The regulation is intended to help the ministry recover operational costs while considering the financial capacity of users. It will take effect upon publication in the Federal Gazette.

Further, the Council discussed and passed a draft proclamation on employment abroad, aimed at ensuring the safety, rights, and dignity of Ethiopian citizens working overseas. It also intends to improve the country’s ability to benefit from foreign employment opportunities. The draft was referred to the House of People’s Representatives for further legislative process.

Lastly, a draft proclamation on plant protection and quarantine was approved and forwarded to the House. The measure aims to strengthen pest control systems, facilitate safe trade in agricultural goods, and ensure compliance with the International Plant Protection Convention.

Copy-of-White-Minimalist-Economics-Headline-News-Instagram-Post-42.png

Ethiopia has recorded a significant drop in inflation—from 30% to 13%, since adopting a market-based foreign exchange regime for the first time in five decades. The milestone was revealed during the 2025 IMF–World Bank Spring Meetings, where National Bank of Ethiopia (NBE) Governor Mamo Mihretu discussed the government’s sweeping macroeconomic reforms with IMF African Department Director Abebe Aemro Selassie.

The reform package, part of Ethiopia’s Homegrown Economic Reform Program—includes a transition to interest rate-based monetary policy, the cessation of central bank financing of the government, and the introduction of open market operations. According to Mamo, these changes are already bearing fruit.

“We’ve prioritized price stability, strengthened policy transparency, and tripled our foreign currency reserves,” he noted. “For the first time in 50 years, Ethiopia is operating under a market-based forex system.”

The shift comes amid broader efforts to unlock private sector growth, expand access to credit, and enhance the competitiveness of Ethiopian exports. Backed by a $3.4 billion IMF credit facility, the government is also tackling debt vulnerabilities and reforming state-owned enterprises to create a more sustainable and investment-friendly economy.

Analysts suggest the reforms could mark a turning point for Ethiopia’s economic trajectory—positioning it as a more attractive destination for both local and foreign investors.

“Our goal is a stable, job-creating economy anchored in market discipline and inclusive growth,” Mamo emphasized.

Copy-of-White-Minimalist-Economics-Headline-News-Instagram-Post-41.png

AJN Resources Inc. has entered into a conditional Heads of Agreement (HOA) with Ethiopia-based Godu General Trading S.C. to acquire up to a 70% interest in the Okote Gold Project, according to Newsfile. The 42.8 km² exploration site lies within Ethiopia’s prolific gold belt, approximately 100 kilometers south of the 4.5 million-ounce Lega Dembi mine — the country’s largest gold producer.

The deal marks AJN’s strategic expansion into Ethiopia’s emerging gold sector and reflects growing international interest in the Horn of Africa’s mineral potential. The agreement remains subject to formal engagement with Oromia regional authorities, who have reportedly expressed verbal support for the project.

The Okote licence was previously held by MIDROC, which explored the site until 2019. During its tenure, MIDROC completed 88 drill holes — a combination of reverse circulation and diamond drilling — totaling 13,761 meters across a 2.4-kilometer strike length, with the densest activity concentrated in a 1,000m x 400m zone in the northern area of the concession.

“We are extremely excited by the opportunity to participate in a project with such an extensive exploration history,” said Klaus Eckhof, President and CEO of AJN Resources. “Our immediate focus will be on the northern section of Okote, where artisanal miners are believed to have uncovered new zones of mineralisation. This will complement the existing 2 km of known gold-bearing structures.”

Eckhof added that AJN’s technical teams are on standby, ready to begin mapping, sampling, and a fast-tracked due diligence drilling program once the company formally presents its development plan to regional authorities. He also noted that prior third-party assessments suggest the Okote Project may hold multi-million-ounce potential, adding further allure to the site.

Copy-of-White-Minimalist-Economics-Headline-News-Instagram-Post-40.png

Oromia Regional State is gearing up to host a high-profile investment forum on May 31, 2025, in Addis Ababa, according to the Ethiopian Press Agency. Organized by the Oromia Investment and Industry Bureau, the event is expected to draw a diverse array of participants — including senior federal and regional officials, prominent business leaders, and development partners — with the aim of unlocking the region’s vast economic potential.

The forum is part of Oromia’s broader strategy to position itself as a premier investment destination within Ethiopia. The state government is offering an attractive portfolio of incentives, such as multi-year income tax exemptions, duty-free privileges on imported capital goods, and facilitated land access. Coupled with a favorable climate and a growing infrastructure base, Oromia is signaling its readiness for large-scale private sector engagement.

According to the EPA report, key sectors prioritized for investment include agriculture, agro-processing, manufacturing, and services — all areas where Oromia boasts strategic advantages, from fertile land and abundant raw materials to a sizable labor force and strong market linkages.

More than just a promotional event, the forum is envisioned as a critical platform for dialogue and collaboration. Investors, government officials, and industry players will have the opportunity to network, share ideas, and initiate partnerships that align with Ethiopia’s broader economic reform agenda.

Copy-of-White-Minimalist-Economics-Headline-News-Instagram-Post-39.png

Ethiopia is actively pursuing fresh budgetary support from the African Development Bank Group (AfDB) as part of its participation in the institution’s high-level Annual Meetings currently underway in Abidjan. The Ethiopian delegation, led by State Minister of Finance Semereta Sewasew, is using the platform to engage key bilateral and multilateral partners in a bid to unlock vital financial resources.

On the sidelines of the meetings, the State Minister held substantive discussions with senior officials from major development partners, including Eric Meyer, Deputy Assistant Secretary for Africa at the U.S. Department of the Treasury, and Steven Collet, Deputy Director-General of International Cooperation at the Netherlands’ Ministry of Foreign Affairs. Talks centered on bolstering economic cooperation and expanding strategic partnerships in sectors critical to Ethiopia’s development agenda.

The delegation’s primary mission, however, includes presenting Ethiopia’s request for a new budget support project—a move that underscores the country’s need for external financing to maintain macroeconomic stability and continue development programs amid global shocks and regional fiscal constraints.

The request comes at a time when many African economies, including Ethiopia, are grappling with high debt stress, reduced access to concessional financing, and mounting climate-related vulnerabilities. Ethiopia’s approach reflects a broader trend among African nations seeking adaptive, long-term financial partnerships with institutions like the AfDB to weather ongoing challenges.

As part of the high-stakes gathering, State Minister Semereta is also scheduled to participate in the election of the next AfDB President, set for 29 May 2025. The incoming leader will take charge of the continent’s premier development bank at a time of declining development assistance and heightened global volatility.

Beyond the election, the Ethiopian delegation is expected to join thematic sessions on climate finance, debt sustainability, and resource mobilization, while continuing bilateral consultations with international partners.

JAMI, in collaboration with Arifpay Financial Technologies, has officially launched Ethiopia’s first multi-currency digital tipping platform, setting a new standard in the country’s fast-evolving digital economy. The launch event, held at Hyatt Regency Addis Ababa, marked the beginning of a platform built to empower content creators with the freedom to monetize their work across borders.

Designed for creators—from streamers and educators to influencers and artists—JAMI allows users to receive instant financial support from fans in both local and international currencies. By doing so, the platform positions itself as a powerful tool for creators within Ethiopia and across the diaspora, helping them convert content into income without friction.

Natan Damtew, CEO and Founder of JAMI, said the platform was developed with a mission to give creators access to modern financial tools that match the scale of their influence. “We believe creators deserve better tools to monetize their influence. JAMI gives fans a meaningful way to show support, while giving creators financial freedom — across borders, without friction,” he explained during the launch.

Accessible through jami.bio, users set up personal microsites to showcase their content and receive tips via QR codes or links. These microsites act as digital business cards where creators can centralize their platforms and interactions. Fans can send tips easily without the need for complex sign-ups or applications, which makes the experience intuitive and inclusive.

Behind the technology stands Arifpay, one of Ethiopia’s leading fintech companies, which powers the financial infrastructure behind JAMI. The collaboration ensures the platform is not only innovative but also secure, scalable, and ready to handle a large volume of transactions with confidence.

Girum Getachew, Partnership and Business Director at Arifpay, emphasized the broader vision: “JAMI is an important addition to Ethiopia’s digital economy, and we’re proud to provide the financial rails that make it possible.”

Copy-of-White-Minimalist-Economics-Headline-News-Instagram-Post-36.png

The House of People’s Representatives has reviewed two landmark draft proclamations—one proposing payments for ecosystem services and the other reforming agricultural extension systems. These initiatives could reshape how natural resources and farming support systems function in Ethiopia.

During its 32nd regular session, the House referred both draft proclamations to their respective standing committees for in-depth review and stakeholder consultation, following their unanimous endorsement by the Council of Ministers in its 45th regular meeting earlier this week.

The draft proclamation on ecosystem services fees, presented by Chief Government Whip, Tesfaye Beljige (PhD), highlights Ethiopia’s untapped ecological capital and the urgent need to protect it. Stressing that Ethiopia’s diverse ecosystems are under mounting pressure due to unsustainable practices, he noted the proposal aims to create a legal structure that allows federal and regional governments, NGOs, and the private sector to contribute to and benefit from ecosystem service payments.

The draft law on multi-stakeholder agricultural extension services, also presented by Tesfaye, seeks to overhaul Ethiopia’s decades-old, government-only approach. The reform would open the door for private actors, NGOs, cooperatives, and professional associations to deliver agricultural support services. The goal is to improve quality, accessibility, and efficiency—backed by digital tools and accountability mechanisms.

These legislative proposals follow the Council of Ministers’ 45th regular session, held earlier this week, which approved both drafts and forwarded them to the House. The Council emphasized the growing demand for resilient agricultural systems and sustainable resource management, endorsing the proposed frameworks as essential for long-term development.

The ecosystem services proclamation (No. 18/2017) has been assigned to the Standing Committee on Water, Irrigation, Lowland Areas, and Environmental Development—working in collaboration with the Standing Committee on Planning, Budget, and Finance. The agricultural extension proclamation (No. 19/2017) has been forwarded to the Standing Committee on Agricultural Affairs.

If passed into law, the bills could introduce new financing models for conservation, boost farmer productivity, and diversify participation in key sectors of the economy.

Newer Posts

Older Posts

IMF Staff Back USD260M Disbursement as ‘Ethiopia Exceeds Reform Targets’

Veteran Insurance Leader Meseret Bezabih to Chair Historic Women’s Association in Ethiopia

Dodai Secures Green Light from Addis Ababa Transport Bureau to Scale Electric Mobility

Council of Ministers Approves Five-Year Fiscal Framework to Guide Budget and Reforms

Ethiopia’s Inflation Falls 17 Points to 13% After Adopting Market-Based Forex System

Canadian Miner Eyes Ethiopia’s Gold Belt with Okote Project Deal

Oromia to Host High-Level Investment Forum to Attract Global Capital

Ethiopia Seeks New Budget Support at AfDB Annual Meetings

Content Creators Get a Global Wallet With Jami, New Digital Monetization Tool

House Reviews Landmark Bills to Monetize Ecosystems and Modernize Agriculture