Daily News – Page 19 – Ethiopian Business Review

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The National Bank of Ethiopia (NBE) has introduced a new round of regulatory reforms aimed at easing access to hard currency and aligning market practices with international standards.

The central bank has capped all bank-related foreign currency transaction fees at 4%, effective May 26, 2025, and will require banks to publicly disclose FX-related charges starting next month. This measure is designed to promote transparency, rein in non-standard pricing practices, and protect businesses and individuals navigating the increasingly active FX market.

At the same time, NBE has lifted the long-standing import advance payment ceiling from USD 5,000 to USD 50,000 per transaction—a step aimed at relieving one of the most persistent bottlenecks faced by importers. The updated threshold reflects what the NBE describes as a necessary adjustment, considering how long the previous limit had been in place and the evolving nature of global trade norms.

The foreign exchange regulator has also revised the rules governing how much travelers can take abroad. Under the new guidelines, personal travelers will be permitted to purchase up to USD 10,000, while business travelers may access up to USD 15,000. Additionally, individuals holding foreign exchange accounts will now be allowed to spend up to 20% of their balance via debit card—doubling the previous 10% ceiling.

These changes follow nearly a year of progressive liberalization, launched in July 2024 when the NBE unveiled a more market-based exchange rate regime. Since then, the central bank reports that goods exports have more than doubled, while service exports, remittances, and both official and private capital inflows have shown marked improvement.

As a result, the country’s foreign currency reserves have reached record highs, with increased FX availability enabling firms to secure vital inputs and expand operations. Bi-weekly FX auctions, another cornerstone of the reform effort, have added liquidity to the banking system and contributed to narrowing the gap between official and parallel market rates.

The latest measures, according to NBE, are a direct response to the positive feedback loop generated by these reforms and are intended to further normalize the foreign exchange environment. By enforcing fairer pricing, relaxing outdated limitations, and encouraging transparent financial intermediation, the central bank aims to strengthen trust in Ethiopia’s FX system—one that remains critical to sustaining business confidence, investor participation, and broader macroeconomic recovery.

While challenges remain, NBE’s phased approach suggests a careful calibration between regulatory oversight and market flexibility, with a clear shift away from rigid controls that have long characterized the foreign currency regime.

Huawei officially opened its participation in ETEX2025 today at the Addis International Convention Center (AICC), under the compelling theme: “Amplify Intelligence for New Africa.” As a leading global provider of ICT infrastructure and smart devices, Huawei’s showcase highlights its continued commitment to driving Africa’s digital transformation through cutting-edge cloud and energy solutions.

The event commenced with a series of high-level sessions, including a VIP keynote address titled “Amplify Intelligence for New Africa” delivered by Chenxin (Ethan Jiang), Chief AI Specialist at Huawei Cloud. The keynote emphasized the strategic importance of AI and cloud technologies in accelerating Africa’s development, fostering inclusive innovation, and exploring how AI can foster inclusive, sustainable development and help shape the continent’s future.

CEO of Huawei Ethiopia Office, Michael Liu also emphasized “the importance of tailoring digital transformation to the continent’s unique context, deepen the roots —in policy, in people, in partnerships— so Africa may rise strong in the AI winds of change”. He also detailed “Huawei’s Value Proposal to amplify Intelligence for New Africa in three main areas: New Infrastructure, New Ecosystem and New Value, all powered by AI.”

Huawei and industry chain partners have jointly innovated to bring new inclusive connection solutions to people in these regions. Together with our Eco-Partners, we are bringing new inclusive education solution to children in these regions:

The solution can support teachers to create courses online, carry out teaching activities, and provide students with self-learning and online exams functions;
The solution provides a healthy online learning environment for students through Cloud Pad + Cloud OS + remote control.
In addition, we integrate AI-assisted teaching and learning functions to further improve teaching quality and learning experience.

Throughout the three-day expo, Huawei is presenting three major thematic exhibition zones:

Industry Digital Exhibition: Showcasing solutions for Smart City, Smart Classroom, Smart Finance, Smart Airport, etc.
Cloud Exhibition: A fully immersive AI DeepSeek Interactive Experience invites participants to explore the power of cloud computing and artificial intelligence through real-time, hands-on demonstrations. This experience embodies Huawei’s vision of making AI more accessible and impactful for African enterprises, governments, and innovators.
Digital Energy Exhibition: Demonstrating the future of sustainable infrastructure, this zone features Huawei’s advanced Digital Charging Facilities (DCF), next-generation Superchargers, and Battery Backup Solutions, all designed to support a low-carbon, intelligent energy ecosystem for Africa’s growing digital economy.

Key highlights from the opening agenda also include:

A panel on “Securing the Future – AI, Blockchain & Cybersecurity Convergence” led by Eddie Wang, Director of the Cloud Business Department, Huawei East Africa.
A workshop on accelerating low-carbon transition through digital power by Leo Wu, Senior Solution Manager, Huawei Digital Power Business

Tech for All in Ethiopia, for example,

Tech for Youth, we have the ICT Talent Development;
Tech for Education, we can make education anywhere;
Tech for Women Empower Women, we can empowers the country.

Together, For A Fully Digitalized Ethiopia: New Ecosystem and build AI Seeds in Ethiopia.

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The ID4Africa 2025 Annual Conference opened today in Addis Ababa, bringing together over 2,000 delegates from 100 countries to discuss the future of digital identity systems across the continent. At the opening session, Yodahe Zemikael, Director General of Ethiopia’s National ID Program, announced that 15 million Ethiopians have already benefitted from the country’s Fayida digital ID system, marking a significant milestone in the nation’s digital transformation journey.

Speaking at the high-level forum, Yodahe stressed that the programme’s success is not just measured by numbers but by the real-life improvements in service delivery, noting that Fayida has reduced processing times by up to 60% in institutions where it is active. He credited the achievement to political will, homegrown digital infrastructure, skilled professionals, and strong institutional partnerships.

Prime Minister Dr Abiy Ahmed, delivering a keynote address, described digital ID as an essential enabler of inclusive governance and economic development:

“Digital ID has evolved from a promising innovation into a foundational pillar of digital transformation… It is no longer optional but essential infrastructure connecting people to services, communities to institutions, and governments to the aspirations of their citizens.”

He acknowledged past fragmentation in Ethiopia’s ID system, which excluded millions, and said the new unified approach aims to bridge that gap and foster inclusive access to essential services.

Running over three days, the conference features expert workshops and symposia focused on digital identity innovations from 35 African countries, placing Ethiopia at the forefront of the continent’s tech-driven transformation.

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Ethiopian Engineering Corporation (EEC) reported a 60% year-over-year revenue growth, reaching 5.5 billion ETB in the first nine months of the 2024/25 fiscal year. The state-owned enterprise delivered 96 design projects, 251 contract supervision assignments, and 36 construction projects—achieving 88% physical and 101% financial performance.

The figures were presented during a high-level performance dialogue and site visit led by Ethiopian Investment Holdings (EIH) at EEC headquarters. The review focused on operational performance, strategic investment planning, and market diversification.

Among the 54 completed design and supervision projects and 22 completed construction projects are critical national developments, including the Sendafa Forensic DNA Laboratory, Bole Arabsa Wastewater Treatment Plant, National Bank Cash Center, Phase I Corridor Development, and initiatives under the “Dine for Generation” program.

EEC’s international expansion into Tanzania and Nigeria with road and water engineering consultancy services signals growing regional ambition. The company’s performance reflects its operating ethos—“Collaboration, Innovation & Deliver”—and underscores its role in Ethiopia’s infrastructure modernization.

EIH commended the results while urging EEC to deepen its focus on long-term investments, diversify its financing sources, and strengthen its foothold in foreign markets to broaden its client base and reduce overreliance on public contracts.

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Ethiopia recently hosted the Finance Forum 2025, a two-day event organized by the National Bank of Ethiopia from May 15 to 16 in Addis Ababa. The forum brought together a diverse group of participants, including policymakers, financial institutions, private sector leaders, development partners, academics, civil society representatives, and members of the Ethiopian diaspora, to discuss the future of the country’s financial sector.

The Forum provided an important platform for aligning on the future of Ethiopia’s financial system, promoting collaboration, and exploring investment opportunities. Discussions focused on how Ethiopia can further strengthen its financial infrastructure to foster inclusive growth and expand access to finance.

Among the participating organizations was the Mastercard Foundation, which shared insights from its ongoing efforts to support youth- and women-led micro, small, and medium enterprises (MSMEs) across Ethiopia. Through partnerships with financial institutions and fintech companies, the Foundation works to increase access to finance through the development of digital lending models and tailored financial products.

Representatives from programs supported by the Foundation took part in the Forum to share their experiences. These programs aim to reach underserved groups—particularly women, youth, people with disabilities, and rural populations—with financial tools and business development services.

One such initiative is SAFEE (Sustainable Access to Finance to Enable Entrepreneurship), a partnership between Mastercard Foundation and Kifiya Financial Technologies. SAFEE is designed to reach 2.18 million young people with digital financial services, complemented by financial literacy training and credit access mechanisms.

Woyneshet Niguse Mekonen, a 33-year-old entrepreneur from Majete, was among the beneficiaries who shared their story. Supported by SAFEE and a Michu loan, she established Nitsuh Pyjama and Comfort, transitioning from informal food sales to a formal sleepwear business. She now operates a small boutique sourcing materials from Merkato and earning a stable income.

Another program participant, Yordanos Hailmaryam, who has run a poultry business since 2017, spoke about her involvement in the MESMER program—a result of the partnership between the Mastercard Foundation and First Consult. MESMER supports MSMEs through access to finance, business development services, and psychosocial support, with a focus on youth employment and inclusive growth.
After completing digital business development training, Yordanos secured a loan that enabled her to expand her operations, hire additional staff, and enhance her service delivery. Her team grew from 11 to 14 employees, her monthly revenue increased from ETB 70,000 to ETB 100,000, and her personal savings through Equb rose from ETB 5,000 to ETB 8,000.

These examples were part of broader discussions at the Forum, which emphasized the importance of inclusive financial systems in supporting small businesses and entrepreneurship. Many speakers noted that tailored financial services—especially those that incorporate digital tools—can play a role in improving economic participation and resilience.

As Finance Forum 2025 concluded, it reaffirmed the importance of building an inclusive financial system that supports the aspirations of young people, women, and people with disabilities. The Mastercard Foundation remains committed to working with a range of stakeholders to create an enabling environment for meaningful, sustained change in Ethiopia’s financial sector.

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YouCan, a digital waste management platform, has gained momentum across African communities by supporting more efficient waste segregation and recycling practices. The platform is helping to address critical challenges facing countries like Ethiopia, where infrastructure gaps, inconsistent waste sorting, and limited public engagement have long hindered effective waste management.

Waste management remains a significant environmental challenge in Africa, where rapid urbanization and population growth have strained existing systems. Many cities struggle with poor collection services, illegal dumping, and contamination of recyclable materials, which undermines recycling efforts and increases environmental and public health risks.

Effective segregation of waste at the source is vital for improving recycling outcomes, yet it remains inconsistent or absent in many regions. Contaminated waste hampers recycling plants’ ability to recover valuable materials, leading to increased costs and reduced effectiveness.

YouCan aims to tackle these problems by offering a simple, user-friendly mobile platform that guides households, businesses, and communities on proper waste segregation. The app provides real-time advice and instructions, making it easier for users to separate recyclable materials correctly.

By digitizing the segregation process, YouCan helps reduce contamination rates and supports recycling facilities in receiving cleaner, more valuable materials. This efficiency improvement is crucial as many recycling plants in African cities face challenges due to mixed and improperly sorted waste streams.

The platform also integrates data analytics, allowing governments and waste management companies to monitor recycling rates, community participation, and waste patterns. This information helps local authorities optimize resource allocation and improve service delivery, which can strengthen waste management systems over time.

In many African countries, poor waste management contributes to growing environmental problems such as landfill overflow, illegal dumping, and pollution. YouCan’s approach promotes a circular economy mindset, encouraging communities to view waste as a resource rather than a burden.

The environmental benefits of improved recycling include reduced pollution, conservation of natural resources, and lower greenhouse gas emissions. Economically, effective recycling creates jobs in collection, sorting, and processing, while supporting local businesses seeking sustainable waste solutions.

YouCan’s digital platform is scalable and adaptable, enabling it to be introduced in various communities and cities with different levels of infrastructure. Its ability to connect waste producers with collectors through technology improves transparency and operational efficiency within the waste management sector.

As urban populations continue to grow across Africa, the demand for modern, data-driven solutions to waste management is becoming more urgent. Platforms like YouCan offer practical tools for transforming the sector and promoting long-term sustainability.

While the challenges of waste management in Africa are complex, initiatives like YouCan demonstrate the potential of technology to improve practices and foster environmental stewardship at the community level. As more communities adopt digital solutions, they contribute to broader efforts to reduce waste, conserve resources, and promote sustainable urban development.

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Ethiopian Investment Holdings (EIH) has appointed three distinguished leaders to its Board of Directors: Dr. Fitsum Assefa, Minister of Planning and Development; Hanna Arayaselassie, Minister of Justice; and Dr. Zeleke Temesgen, Commissioner of the Ethiopian Investment Commission (EIC).

Their collective experience is poised to drive forward Ethiopia’s ambitious agenda of strategic investments and dynamic portfolio management—key pillars for sustainable economic growth.

As EIH continues to play a pivotal role in shaping the country’s investment landscape, the inclusion of these influential figures will enhance its capacity to mobilize resources, foster innovation, and unlock new opportunities that align with Ethiopia’s long-term development goals.

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The world’s third-largest automaker, China’s Guangzhou Automobile Group (GAC Group), has entered talks with Ethiopian authorities about the feasibility of producing EVs in the country.

During a high-level meeting held in Addis Ababa, GAC Group Chairman Feng Xingya and his delegation held discussions with Ethiopia’s Minister of Transport and Logistics, Alemu Sime (PhD). The two parties explored potential collaboration areas in green automotive manufacturing and technological investment, signaling the beginning of what could be a game-changing industrial partnership.

The discussion aligns with Ethiopia’s growing ambition to position itself as a hub for electric mobility in Africa. The government has already banned the import of fossil-fueled vehicles, allowing only electric cars into the country—a bold policy shift that opens doors for large-scale manufacturing and assembly.

The government’s commitment goes beyond regulation. Speaking at a recent launch event, the State Minister of Transport and Logistics, Bareo Hassen, announced that Ethiopia will offer comprehensive support to EV suppliers and investors. This includes facilitating land access, customs clearance, and building nationwide EV charging infrastructure.

Huajian Industry, which has previously invested in Ethiopia’s manufacturing sector, has launched a program to introduce a new EV model. The program is expected to enable the company to supply products to GAC Group, further signaling potential collaboration within the sector.

Speaking at the event, Bareo noted that the arrival of such companies enhances trade relations between Ethiopia and China. He emphasized that the government would continue supporting the growth of the electric vehicle sector, including expanding the construction of EV charging stations across the country.

“Products introduced to the market are suitable for our climate,” said the Minister, underlining the importance of aligning innovation with local needs.

Ethiopia is also rolling out large-scale infrastructure to support the growing EV population. Charging stations are under construction across major highways and cities, laying the groundwork for a modern, sustainable transport system.

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Cooperative Bank of Oromia (Coopbank) has achieved what its CEO described as an “unbelievable” milestone in expanding women’s access to finance, disbursing ETB 24.5 billion to 1.47 million loan accounts, 80% of which are held by women.

The announcement was made by CEO Derbie Asfaw during a panel discussion under the theme “Promoting Women’s Access to Finance” at the Ethiopia Finance Forum 2025, an event that brought together key stakeholders in the financial sector to address gender disparities and promote inclusive growth.

A major contributor to this achievement is Coopbank’s women-focused loan platform, Michu Kiya, which was launched just eight months ago. Since its introduction, the platform has disbursed ETB 7.3 billion to over one million accounts, signaling rapid uptake and a significant demand for targeted financial services among women.

“This is unbelievable for me,” said Derbie. “At Coopbank, we believe innovation isn’t just a tech solution, and financial inclusion isn’t a compliance box—both are part of our purpose to empower communities and transform lives.”

The milestone comes as Coopbank celebrates 20 years of operation, having grown into a ETB 189.4 billion financial institution. Over two decades, the bank has carved out a strong reputation for inclusive banking, now serving 17 million customers across Ethiopia.

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The Ethiopian Agricultural Works Corporation has announced that nearly 12 million quintals of fertilizer have already arrived at the port of Djibouti. Of this, more than 11.2 million quintals have been imported and distributed to farmers and semi-pastoralist communities across the country.

According to the Corporation, the latest shipment—carrying 550,000 quintals of Di-Ammonium Phosphate (DAP) fertilizer—docked at the port of Djibouti on the morning of May 10, 2025. The delivery is part of Ethiopia’s broader fertilizer procurement plan for the upcoming crop season, which targets the import of 24 million quintals of fertilizer sourced through international competitive bidding.

The Corporation reported that, as of May 10, a total of 11,964,181 quintals of fertilizer have arrived at the port, with 11,228,142 quintals already cleared and distributed via agricultural cooperatives. This early delivery underscores the government’s commitment to addressing the timely availability of inputs critical to Ethiopia’s predominantly agrarian economy.

Since its establishment, the Ethiopian Agricultural Works Corporation has overseen fertilizer imports in line with national demand assessments conducted annually by the Ministry of Agriculture. The process involves strategic international procurement to ensure that adequate supplies reach farming communities ahead of peak planting periods.

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NBE Caps Forex Fees at 4%, Raises Import Advance Limit to USD50,000

Huawei Opens ETEX2025 with Visionary Showcase: Amplifying Intelligence for a New Africa

Fayida Adoption Hits 15 Million Amid Ethiopia’s Push for Inclusive Digital Services

Ethiopian Engineering Corporation Posts 60% Revenue Surge, Expands into Regional Markets

Mastercard Foundation Partnered Programs Highlight MSME Growth at Ethiopia Finance Forum 2025

Africa’s Waste Challenge Meets a Digital Solution

Ethiopian Investment Holdings Appoints Three Senior Leaders to Board

Global Auto Giant GAC Eyes Ethiopia for EV Manufacturing as Government Boosts Sector Support

Coopbank CEO Hails ‘Unbelievable’ Milestone in Women’s Financial Inclusion

Ethiopia Imports Over 11 Million Quintals of Fertilizer Ahead of 2024/25 Crop Season