Daily News – Page 19 – Ethiopian Business Review

Wegagen Capital Investment Bank S.C., a subsidiary of Wegagen Bank, officially launched operations, becoming the country’s first private investment bank under the newly established capital market framework.

The inaugural ceremony, held at Hilton Addis Ababa, drew a distinguished audience, including Dr. Tilahun Ismael, CEO of the Ethiopian Securities Exchange (ESX), as well as executives from financial institutions, regulators, and invited guests.

Speaking at the event, Dr. Aklilu Wubet, Chairperson of the Board of Wegagen Capital, emphasized that the bank was formed with a paid-up capital of ETB 385 million, contributed by visionary institutions and individuals who recognize the strategic importance of investment banking in driving national economic growth.

Dr. Aklilu noted that Wegagen Capital is the first private investment bank to be granted an operational license by the Ethiopian Capital Market Authority (ECMA), issued on March 21, 2025. The bank was also the first trading member registered with the Ethiopian Securities Exchange (ESX) on May 14, 2025.

“One of the biggest challenges during formation,” Dr. Aklilu added, “was the scarcity of trained professionals in investment banking. To address this, we invested in capacity building, brought in international expertise, and conducted rigorous profitability analysis—all made possible with strong backing from NBE, ECMA, and ESX.”

Brutawit Dawit Abdi, CEO of Wegagen Capital, highlighted the bank’s mission to set a new benchmark in the financial industry. “As Ethiopia’s pioneering private investment bank, Wegagen Capital carries the responsibility to lead with integrity, innovation, and impact,” she said. “Our formation stems from the pressing need to support capital market growth and fuel national development.”

She outlined the bank’s offerings, which include a full suite of investment banking services tailored to government institutions, public enterprises, corporations, and high-net-worth individuals. Services range from strategic advisory on mergers and acquisitions to capital raising through securities, IPO underwriting, trading and brokerage services, and intermediation between issuers and investors.

Dr. Tilahun Ismael reaffirmed the importance of institutions like Wegagen Capital in building Ethiopia’s capital market ecosystem. “Capital formation is everyone’s responsibility,” he stressed. “We must demystify the concept of capital markets for ordinary Ethiopians, foster a culture of saving, and build the trust necessary to attract foreign investment.”

Wegagen Capital operates independently from Wegagen Bank with its own corporate governance, management, and operational structure. This separation allows the firm to serve as a neutral investment partner for banks and institutions seeking capital market solutions.

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The African Development Bank Group and the Federal Government of Nigeria have signed a protocol agreement committing USD500 million over 15 years to extend the Nigeria Trust Fund (NTF), providing long-term business continuity and planning certainty through 2040.

This extension comes after multiple previous renewals, reflecting the enduring value and relevance of Nigeria’s partnership with the African Development Bank.

Dr Akinwunmi Adesina, President of the African Development Bank Group said that the commitment will allow the Bank’s ability to expand hybrid capital instruments, increase securitization, and scale up private sector operations. This move is expected to mobilize more private capital for low-income countries. “Nigeria’s decision today proves that Nigeria is always on the right side. The NTF is the largest we have at the African Development Bank, which is part of the Bank. It helps to co-finance operations in many countries, as well as feasibility studies for some other countries.” he added

The agreement also enables deployment of resources from the fund in innovative treasury, structuring, and other transactions, including balance sheet optimization, structured finance, and catalytic risk-sharing solutions.

The Bank and Nigerian authorities are working on new financial products, updating approval processes, and developing a communications strategy to raise visibility for Nigeria’s contributions.

The Nigeria Trust Fund serves as a fully-fledged financial window of the AfDB. Since its creation, the NTF has financed 92 projects in 33 countries. The Fund has played a crucial role in filling financing gaps in high-impact sectors, particularly in the continent’s least developed countries.

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The Trade and Development Bank Group (TDB Group) has been named Africa’s Bank of the Year at the 2025 African Banker Awards, held during the Annual Meetings of the African Development Bank. The honor recognizes TDB’s continued commitment to inclusive finance, service innovation, and its contribution to Africa’s sustainable economic growth.

TDB’s strength lies in its ability to adapt and lead through reform. Despite a rapidly changing financial landscape, the Bank has maintained its development impact by innovating its capital structure—most notably with the introduction of hybrid capital in 2024—and attracting institutional investors aligned with long-term development goals.

The Bank continues to deliver impactful project and trade financing, while also addressing upstream challenges through concessional finance, technical assistance, and development programs. Its work supports critical priorities such as women’s empowerment, youth employment, and responsible investment across African economies.

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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 Welcomes Its First Private Investment Bank as Wegagen Capital Launches

AfDB Secures USD500 Million from Nigeria to Expand Development Fund Until 2040

TDB Group Named Africa’s Bank of the Year

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