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#EBR_News Oct 6, 2026

Zemen Bank reported gross profit before tax, depreciation and amortization of about 10 billion birr for the 2025/26 fiscal year, up 9.7 percent from the previous year, as total assets climbed 31.9 percent to 116.5 billion birr. The results were presented at the bank’s 18th Ordinary and 13th Extraordinary General Meeting of Shareholders held at the International Convention Center in Addis Ababa on October 6, 2026.

The bank’s net profit reached a record 6.75 billion birr, increasing 15 percent year-on-year and achieving 107 percent of its annual target. Total revenue rose 24 percent to 17.9 billion birr, equivalent to 113 percent of the bank’s target, while total operating income stood at 14.25 billion birr. Profit before tax reached 9.3 billion birr, with an income tax expense of 2.55 billion birr leaving the bank with its highest-ever net profit. Earnings per share stood at 53.9 percent, down from 68.3 percent in 2024/25, reflecting the expansion of the bank’s capital base.

The balance sheet expanded significantly during the year. Total assets increased from 88.4 billion birr to 116.5 billion birr, while deposits grew 32 percent to 85 billion birr, an increase of 20.6 billion birr that exceeded the bank’s target by 4.3 percent. Zemen Bank opened 103,013 new accounts during the year, bringing its total customer base to 394,955 account holders across 142 branches.

The bank’s outstanding loan portfolio reached 52.6 billion birr, rising by 10.3 billion birr, or about 24 percent, from the previous year. The growth came despite the National Bank of Ethiopia’s credit growth ceiling. The bank said the expansion was broadly aligned with the 24 percent regulatory limit. At the same time, its non-performing loan ratio declined to 2.48 percent, remaining below both the bank’s internal threshold of 4 percent and the regulatory limit of 5 percent.

Zemen Bank also strengthened its capital position during the year. Total capital increased 40.8 percent to 25.9 billion birr, while paid-up capital rose 52.2 percent to 14.29 billion birr. Its Capital Adequacy Ratio reached 40 percent, five times the regulatory minimum of 8 percent, providing a substantial capital buffer as the bank expands its balance sheet and lending operations.

Foreign exchange earnings reached $698 million, exceeding the bank’s annual target by 2.5 percent and increasing 19 percent from the previous year. Foreign trade accounted for 51.5 percent of the total, followed by inbound remittances at 33.9 percent, foreign exchange purchases and auctions at 10.61 percent, and international card transactions at 3.15 percent. Zemen Bank said the result placed it fourth among Ethiopia’s private banks in foreign exchange earnings.

Revenue growth was supported primarily by interest income, which generated 10.15 billion birr, or 57 percent of total revenue. Service fees and commissions contributed 5.1 billion birr, representing 28.5 percent, while foreign exchange sales generated 2.4 billion birr, or 14 percent. Other income contributed 273.1 million birr.

Total expenses, meanwhile, increased 38.4 percent to 8.58 billion birr. Interest paid on deposits accounted for 3.57 billion birr, followed by salaries and employee benefits at 2.7 billion birr, administrative expenses at 1.8 billion birr, and depreciation at 505.5 million birr.

Board Chairperson Enyie Bemir said the bank generated gross profit before tax, depreciation and amortization of 9.79 billion birr during the fiscal year, describing the result as evidence of continued growth despite a challenging operating environment. She said the global economy remained affected by geopolitical tensions, trade disruptions and persistent inflationary pressures, creating risks for financial institutions and businesses.

Enyie said Zemen Bank’s performance was achieved while maintaining asset quality and strengthening its financial position. The bank recorded a Return on Average Assets of 6.6 percent and a Return on Average Equity of 37.8 percent during the year. She said the combination of balance-sheet growth, improved profitability and controlled credit risk demonstrated the bank’s ability to expand without compromising the quality of its assets.

The Board of Directors proposed a dividend of 2.07 billion birr for distribution to shareholders. The proposed payout comes as the bank continues to expand its capital base, with paid-up capital increasing by more than half during the year.

Chief Executive Officer Dereje Zebene said the results represented one of the strongest performances in Zemen Bank’s 18-year history. He noted that the wider economy recorded $10.7 billion in export earnings and $4.32 billion in foreign direct investment during the year, while inflation stood at 13.9 percent.

Dereje also highlighted the bank’s expansion into interest-free banking under the Z-Qamar brand following the National Bank of Ethiopia’s approval, effective January 13, 2026. The bank said the operation now offers more than 11 Sharia-compliant products across its branch network and is overseen by an independent Sharia Advisory Board. The expansion allows Zemen Bank to serve customers seeking banking and financing services structured in accordance with Islamic finance principles.

Digital banking continued to expand during the year. Zemen Bank increased its network to 385 ATMs and 1,500 point-of-sale terminals, while internet and mobile banking subscribers reached 256,249. Digital transactions accounted for 69.7 percent of all core banking transactions, highlighting the growing role of electronic channels in the bank’s operations.

The bank also strengthened its information security and cyber-defence systems, obtaining ISO/IEC 27001:2022 certification for its Information Security Management System. It said the system is designed to protect information assets, digital services and customer data against growing cyber threats. The bank has also implemented Data Loss Prevention, Web Application and API Protection, and Security Information and Event Management systems.

Several digital platforms, including a Super App, Equb Collection App and Zemen Remittance App, have been developed and are ready for testing. The bank plans to move its Super App from the pilot stage to full production as part of its priorities for the coming financial year.

On its workforce, Zemen Bank said it maintained what it described as the highest workforce productivity in the Ethiopian banking industry, at more than twice the level of its nearest competitor. The bank hired 140 new employees during the year, including 29 fresh graduates, bringing its permanent workforce to 1,893. Staff retention stood at 97.43 percent, while employee turnover was 3.53 percent.

The bank contributed 33.8 million birr to corporate social responsibility initiatives during the year. These included a blood donation programme and the planting of 6,000 seedlings, among other activities.

Looking ahead, Zemen Bank has begun preparing its next five-year strategic plan covering 2027/28 to 2031/32. Priorities for the coming year include expanding digital infrastructure, moving the Super App into full production, improving cost efficiency, investing in employee development and expanding the range of Sharia-compliant products offered through Z-Qamar.

The bank’s 2025/26 results come as Ethiopia’s banking industry continues to expand in deposits, lending, capital and digital financial services, while banks face tighter regulatory requirements, rising competition and the need to strengthen foreign exchange generation and digital capabilities.

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#EBR_News Oct 5, 2026

Most Ethiopian economists believe the tax and revenue measures introduced under the International Monetary Fund (IMF)-supported reform programme are pushing up prices, yet very few want the reforms slowed. 

According to a research report by the Ethiopian Economics Association (EEA), 65.8% of the 266 experts surveyed said these measures have a significant cost-push effect and are adding noticeably to current inflation. A further 16.9% acknowledged some upward pressure but considered it manageable and temporary.

The report, authored by Naser Yenus Nuru (PhD), Senior Researcher and Team Leader for Macroeconomy at the EEA, draws on a survey of EEA members conducted in June 2026. Cost-push inflation refers to price increases driven by higher costs of production and distribution, rather than by excess demand. 

Taken together, the report indicates, 82.7% of respondents expect the measures to have either a significant or a manageable inflationary effect. Only 3.8% said the measures are not materially inflationary, and 8.6% believed any effect is minor and outweighed by the credibility gained from reduced deficit financing.

Despite that, the appetite for changing course is small. According to the report, only 3.4% argued that the short-term costs are too high and that the pace or sequencing of the reforms should be reconsidered. 

Naser interprets this as evidence that most experts accept the costs as part of the fiscal adjustment needed to strengthen macroeconomic stability. The report does not specify which tax measures respondents had in mind, and it presents the findings as expert perceptions rather than a measured estimate of their price impact.

The finding sits alongside official figures that show inflation easing, from a peak of 34.04% in 2022 to 13.21% in 2025, according to the report. But the same experts are cautious about what comes next. The report shows that 55.6% expect inflation to rise further over the next 12 months, including 36.1% who anticipate an increase of more than 10 percentage points. Only 18.8% expect a decline.

Doubts about the government’s fiscal discipline may help explain why. According to the report, 47.3% of respondents rate the government’s commitment to limiting central bank financing over the next two to three years as having low or no credibility, while only 7.9% consider it highly credible. 

Nearly three-quarters (73.6%) see political economic pressures, such as electoral cycles, regional fiscal demands and political transitions, as either a significant risk or the single greatest threat to macroeconomic discipline. Naser notes that credible fiscal consolidation is essential for anchoring expectations and reducing price pressures.

The report also places administered price changes among the main drivers of inflation. Removal of subsidies and administered price adjustments, including fuel price liberalisation and utility tariffs, ranked fifth of eight drivers, with 60.2% of experts calling it a major or dominant factor. The report notes that phased fuel price reforms began in July 2024 and led to successive fuel price increases through 2024 and 2025. Fiscal expansion and government borrowing ranked seventh, with 47.7% rating them a major or dominant factor.

In its recommendations, the report urges authorities to time major tax and expenditure measures carefully, limit domestic borrowing, and consider an independent fiscal council. It also calls for targeted measures to protect vulnerable households while fuel price reforms continue. 

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#EBR_News Oct 3, 2026

More than half of Ethiopian economists doubt that the country’s market-based exchange rate regime will survive the next two to three years. According to a new report by the Ethiopian Economics Association (EEA), 56.4% of the 266 experts surveyed in June 2026 described the outlook for the birr float as either uncertain, with a meaningful risk of partial reversal (38.7%), or unlikely to hold, with significant controls expected to return (17.7%). The report was authored by EEA senior researcher Naser Yenus Nuru (PhD).

Confidence in the regime is thin even among supporters. Only 15% of respondents consider the float highly likely to be sustained without major reversal, while another 26.3% expect it to survive alongside occasional administrative interventions at the margin. Ethiopia moved to a market-determined exchange rate in July 2024.

 The report warns that businesses and traders who price in the risk of a policy reversal or fresh depreciation can keep inflation elevated, even if the policy itself stays in place.

The birr’s own standing adds to the unease. According to the report, 70.7% of experts believe confidence in the currency as a store of value has worsened since the reforms, and only 3% say it has improved significantly. 

The gap between official and parallel market rates has narrowed, with 44% of respondents saying it has shrunk significantly but still exists. However, 30.1% see it as unchanged or wider, and just 9.4% say the rates have largely converged.

Much of the doubt centres on the institutions expected to protect the reform. The report indicates that 47.3% of respondents rate the government’s commitment to limiting central bank financing as having low or no credibility.

In addition, 52.3% see the National Bank of Ethiopia (NBE) as largely not independent or effectively subordinate to fiscal objectives, compared with 5.6% who believe it exercises meaningful independence. 

Politics is the other worry, with 36.8% naming political economic pressures, such as electoral cycles and regional fiscal demands, as the single greatest threat to macroeconomic discipline, and a further 36.8% calling them a significant risk.

The doubts do not amount to opposition to reform. Only 3.4% of respondents think the pace or sequencing of reforms should be reconsidered, even though 65.8% say tax and revenue measures under the IMF-supported programme are adding noticeably to prices. 

Naser notes that most experts appear to accept these short-term costs as part of the fiscal adjustment needed for stability. The disagreement, in other words, is about whether the reforms will be kept up, not whether they were needed.

To protect the regime, the report recommends sustaining the market-determined system while avoiding abrupt reversals and unnecessary intervention, and continuing to narrow the official-parallel rate gap through transparent foreign exchange allocation.

 It also calls for stronger reserve management to rebuild import cover and, more broadly, a formal coordination mechanism between the government and the NBE and consideration of an independent fiscal council. 

The author stresses that the views are his own and do not necessarily reflect the EEA’s official position. The survey also captures only members who chose to respond, 61.3% of whom are based in Addis Ababa, and the author acknowledges the response rate was modest.

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#EBR_News Sep 30, 2026

Akobo Minerals, the Swedish-registered company operating the Segele gold mine in Ethiopia, expects to make its first direct gold export in October or November as it prepares a refinancing of its debt, its chief executive officer told Ethiopian Business Review. 

Jørgen Evjen said the shipment depends on the final onboarding process with an LBMA-approved refinery. It will likely be a small test consignment of 10 to 20 kg of gold, worth roughly USD 1.5 million to USD 3.0 million at current prices.

Evjen said the value of the first shipment is less important than the route it establishes. “Successfully establishing a direct export route is an important milestone for both Akobo and Ethiopia’s mining sector,” he told EBR. 

According to the company’s presentation published on 30 September, Akobo has already secured export approval from the National Bank of Ethiopia, an operational offshore account with Standard Bank, and permission to retain 70 percent of export proceeds in US dollars.

The push follows a record second quarter. According to the presentation, doré production reached about 37 kg and sales hit USD 6.1 million, with the average recovered grade rising to 38.5 grams per tone. EBITDA (earnings before interest, tax, depreciation and amortization) was USD 4.3 million, and the margin climbed to 71 percent from 44 percent in the first quarter.

The company estimates about 35 kg of doré in the third quarter at a grade of around 30 grams per tone. Evjen described the second-quarter grade as exceptional and said grades naturally fluctuate as different parts of the orebody are accessed. He said a range of 20 to 25 grams per tone would offer a good balance between stability, flexibility and processing efficiency over time, and that the company blends material from different areas and stockpiles to reduce volatility.

On debt, the presentation said Akobo has repaid about USD 7.0 million to its gold-loan lender, Monetary Metals, in 2026, and that the outstanding loan stands at 9,444 ounces. Preparations for a restructuring with Verdant Capital are continuing, with an official launch expected in October. 

Evjen said the aim is to simplify the balance sheet, lower financing costs and set a repayment schedule in line with the mine’s cash generation. He declined to disclose terms while talks continue but said the Monetary Metals loan is expected to form part of the refinancing, and that the lender may also take part in the new structure.

Growth depends largely on the vertical shaft. Evjen said the project is nearing the point where the first lateral development can begin, and that once fully operational it should support output of up to 50 kg of gold a month, roughly five times current levels. He put the total investment at about USD 2 million. The main risks, he said, are ground conditions, equipment availability and construction progress, and so far softer ground than expected has required extra support and longer curing times. 

The presentation also noted that visible gold has been seen during shaft development and that mineralization has been observed beyond parts of the current resource model. 

The company cautioned that these observations need further evaluation and are not part of the current estimate of about 40,000 ounces of Indicated Mineral Resource at an average of 40 grams per tone.

Regulatory approvals are the other near-term test. The presentation said the mining license renewal is ongoing and that the Gilo exploration license is awaiting a final environmental and social impact assessment review. Evjen said talks with the authorities have been constructive and that he expects both to be concluded before the end of October, although the final timing depends on the formal approval process.

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#EBR_News Sep 24, 2026

Ethiopian Airlines is expanding its inflight catering production capacity from 60,000 to 150,000 meals per day, with the project set for completion within six months, Mesfin Abate, Director of Inflight Catering at Ethiopian Airlines, told EBR at the official unveiling of the airline’s 2027 inflight menu, held at Ethiopian Skylight Hotel on September 24, 2026.

According to Mesfin, the first phase of the expansion will be completed within a month, with the remainder finished within six months. He said the investment amount involved is significant but declined to disclose the figure publicly. Ethiopian Airlines Group CEO Mesfin Tasew described the project as a massive expansion effort at the event, saying the airline is investing heavily in its catering facility and modernising kitchen equipment to keep pace with its growing passenger numbers.

Mesfin Abate said Ethiopian Airlines’ catering operation extends well beyond serving its own flights. He said the airline prepares meals for all other carriers flying into Ethiopia, including Emirates, Etihad, and Turkish Airlines, and that Chinese airlines are expected to begin operations soon and will also be served by Ethiopian’s catering facility.

On the 2027 menu itself, Mesfin Abate said new additions this year include an ice cream service for business class passengers, a Mediterranean-inspired dish, and additional seafood options, developed based on customer feedback gathered over the year. He said the airline rotates its meal offerings in cycles, changing the business class menu every two months and the economy class menu every three months, with the menu presented today covering a full year of offerings beginning in January.

On quality control, Mesfin Abate said Ethiopian Airlines’ catering operation includes eight independent departments, with a dedicated Quality Control section deploying staff around the clock across every stage of production, from receiving raw goods to loading meals onto aircraft. He said the airline has recorded zero health-related customer complaints over its 80 years of catering operations.

CEO Mesfin Tasew told the gathering that Ethiopian Airlines has been named Best Airline in Africa for nine consecutive years by Skytrax, and that the airline’s catering has separately been recognized as Best Economy Class Onboard Catering in Africa. Mesfin Abate said the airline now intends to enter Skytrax’s dedicated catering category next year, aiming to win international recognition specifically for its inflight food service.