Daily News – Page 16 – Ethiopian Business Review

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Ethiopia has secured over 5.1 billion USD in remittances within the first nine months of the 2024/2025 fiscal year, surpassing the total 4.4 billion USD received in the entire previous fiscal year, according to Ambassador Fetsum Arega, Director General of the Ethiopian Diaspora Service.

This remarkable inflow underscores growing trust and engagement from the global Ethiopian diaspora, not only in supporting families but also in exploring emerging investment avenues.

Ambassador Fetsum noted that diaspora interest is expanding beyond traditional remittance channels. Many are now leveraging liberalized investment policies and previously restricted sectors, entering joint ventures with foreign investors and injecting capital directly into the Ethiopian market.

Two major companies have already been established through this model—one facilitated by the UK-based diaspora and another by diaspora members in France. These developments reflect a broader trend of diaspora-fueled partnerships that blend emotional connection with economic ambition.

Source: Ethiopia News Agency

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President Donald Trump has openly dismissed the idea of reviving America’s textile industry, despite the recent tariff policies that shook global trade.

“I’m not looking to make T-shirts, to be honest. I’m not looking to make socks… We are looking to do chips and computers and lots of other things, and tanks and ships,” Trump told reporters on May 25 before boarding Air Force One, as quoted by USA Today.

The remarks, paired with his agreement that the U.S. doesn’t need a “booming textile industry,” were met with sharp criticism from domestic producers. But they have also caught the attention of international observers who see a strategic opening for emerging manufacturing hubs.

Ethiopian-American economist Zemedeneh Nigatu framed Trump’s comments as a potential advantage for Ethiopia, where textile and apparel manufacturing remains a core part of the country’s industrial growth strategy.

“Emerging economies like Ethiopia, which have competitive and comparative advantages, can produce labor-intensive products like clothing at very competitive prices and still deliver high quality to American consumers,” he shared on social media.

With Ethiopia’s industrial growth accelerating from 4.8% in 2022 to 8.4% in 2024, and projections pointing to 12% by the end of the fiscal year, the country is positioning itself as a low-cost, high-capacity producer. Programs like Made in Ethiopia are aligning policy and investment to replace imports and boost exports.

Zemedeneh also called on U.S. entities—including private equity firms and development institutions like USDFC—to co-invest in African manufacturing, a move that could build resilient supply chains and offer American consumers alternatives to Asian production.

Local economists are also calling for structural reforms in Ethiopia’s textile value chain, especially in the use of abundant domestic raw materials like cotton. However, they stress that peace and political stability remain non-negotiable, forming the heartbeat of investment, industrial productivity, and uninterrupted supply chains.

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In a strategic partnership aimed at enhancing Ethiopia’s international voice infrastructure, Ethio telecom has selected Bankai Group, a renowned international telecom solutions provider, as its preferred international voice termination partner. The partnership becomes effective on June 1, 2025.

According to The Fast Mode, the agreement is designed to improve voice quality, ensure regulatory compliance, and protect the integrity of international voice traffic. Ethio telecom and Bankai Group plan to collaborate in delivering high-performance and fraud-resistant voice services across major global corridors.

This marks a significant step in Ethio telecom’s efforts to strengthen Ethiopia’s role in the international telecom ecosystem, with a focus on supporting the country’s broader digital transformation agenda.

The agreement, however, excludes international voice traffic originating from Saudi Arabia, the UAE, Sudan, Jordan, Somalia, and Djibouti, which remain outside the scope of this partnership.

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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.

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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.

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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.

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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.

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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.

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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.

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Ethiopia Attracts Over USD5 Billion in Remittances in First Nine Months of Fiscal Year

Trump Shrugs Off U.S.Textile Industry: Opening a Lane for Ethiopia?

Ethio Telecom Partners with Bankai Group to Boost Voice Quality

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