Daily News – Page 23 – Ethiopian Business Review

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The European Investment Bank (EIB) is considering financing Ethiopia’s planned new international airport, a move that signals deepening engagement in the country’s infrastructure ambitions. The announcement followed a high-level meeting between Ethiopia’s Finance Minister Ahmed Shide and EIB Vice President Ambroise Fayolle, where both sides reaffirmed their commitment to intensify development and investment cooperation.

During the discussion, Minister Ahmed Shide expressed appreciation for the EIB’s sustained backing of Ethiopia’s priority areas, particularly SME financing, water and sanitation, and women’s entrepreneurship development. These sectors are widely seen as pivotal to the country’s economic and social transformation.

Fayolle reaffirmed the Bank’s commitment to supporting Ethiopia’s long-term development goals, noting that EIB is now exploring options to contribute to the financing of the planned international airport, which is expected to serve as a major logistics and investment hub for the Horn of Africa.

Both parties agreed to deepen their collaboration, with additional sectoral discussions expected during the upcoming visit of senior EIB officials to Ethiopia.

The Ethiopian Enterprise Development (EED) has announced that it successfully disbursed over ETB 6 billion in operational loans to 1,209 small and medium-sized manufacturing enterprises (SMEs) during the first nine months of the 2024/25 fiscal year. The funds are part of the government’s ongoing efforts to strengthen and expand the country’s industrial base.

Abdulfatah Yusuf, Deputy Director General of EED, shared these figures at a press briefing, highlighting the positive impact these loans have had in enabling local enterprises to scale operations, improve efficiency, and create jobs. The loans are aimed at helping SMEs overcome financial barriers, particularly for those that are working to expand their production capacity or upgrade their technology.

Additionally, EED facilitated the distribution of machinery worth over ETB 4.3 billion to 889 enterprises through its lease financing services, further enabling the growth of manufacturing capabilities across Ethiopia.

This support comes at a time when the country’s manufacturing sector is experiencing a resurgence, with the creation of 151,726 new jobs and the establishment of 2,752 new enterprises in the first nine months of the fiscal year. The government’s industrial development agenda also emphasizes import substitution, with 1,451 enterprises producing 902,191 tons of proxy products, saving the country an estimated $1.6 billion in foreign exchange.

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The International Monetary Fund has lowered sub-Saharan Africa’s economic growth projection for 2026 to 4.2%, down from its October forecast, citing mounting global policy uncertainty and tightening external conditions. Abebe Aemro Selassie, Director of the IMF’s African Department announced following the release of the IMF’s Regional Economic Outlook for Sub-Saharan Africa, April 2025.

“This fragile recovery now faces a new test,” said Abebe. “Just when policy efforts began to bear fruit, the region’s growth trajectory was overtaken by a sudden realignment of global priorities.”

According to him, growth is expected to ease to 3.8% in 2025 before edging up to 4.2% in 2026—both figures revised downward due to external shocks including weakening demand from advanced economies, softer commodity prices, and tighter international financial markets.

Abebe warned that if global financial conditions tighten further or trade tensions worsen, sub-Saharan African economies could see reduced investment, higher borrowing costs, and deeper fiscal strain.

He also flags a likely decline in Official Development Assistance to the region, further straining vulnerable populations already facing elevated inflation and limited fiscal buffers. “High debt levels continue to constrain many countries’ ability to fund essential services and development priorities,” Abebe added.

To navigate these headwinds, he said that the IMF is urging countries to focus on resilience-building policies—strengthening domestic revenue mobilization, improving public spending efficiency, and reinforcing fiscal frameworks to manage debt sustainably. The Fund also recommends governance reforms, regional trade integration, and private sector development as central to creating jobs and sustaining long-term growth.

“A prosperous and stable sub-Saharan Africa is not only critical for the continent—it is a strategic pillar for global prosperity in the decades ahead,” Abebe said, highlighting Africa’s demographic advantage as a future driver of global labor supply and consumption demand.

Since 2020, the IMF has disbursed more than USD65 billion to countries in the region, including over USD8 billion in 2024. Alongside financial support, the Fund continues to provide technical assistance and policy guidance as countries grapple with internal vulnerabilities and global disruptions.

In a move that underscores Ethiopia’s growing prominence in global aviation, Boeing has officially inaugurated its Africa office in Addis Ababa. The opening ceremony, held on April 14, 2017, was attended by key figures including His Excellency Alemu Sime (PhD), Minister of Transport and Logistics, Boeing’s President of the Middle East, Turkey, Africa, and Central Asia, Kuljit Ghata, and other aviation leaders.

Dr. Alemu emphasized the significance of Boeing’s new office in Addis Ababa as a pivotal milestone in Ethiopia’s journey towards becoming a global leader in transport and logistics. “This is not only a testament to Ethiopia’s advancement in the aviation sector but also a crucial step toward realizing our vision of a connected and prosperous Africa,” he remarked at the opening.

Ethiopia has long been investing heavily in the modernization of its transport and logistics infrastructure. With a decades-long roadmap driven by the National Transport Council, the government is focusing on creating a robust transport network across the continent. This vision includes a USD 74 billion investment in areas such as aviation, rail, port development, and smart logistics, all set to align with Ethiopia’s broader growth trajectory.

In addition to expanding its footprint in Ethiopia, Boeing has also committed to advancing the country’s capabilities in aircraft manufacturing, training, and the development of sustainable aviation fuel. The partnership reflects Boeing’s long-term trust in Ethiopia’s growing aviation and aerospace sectors.

U.S. Ambassador to Ethiopia, Ervin Massinga, and Ethiopian Airlines CEO Mesfin Tassew were also present at the event, reinforcing the significance of this partnership between Ethiopia and Boeing in shaping the future of aviation in Africa.

Ethiopia has harvested 1.6 million hectares of wheat from its summer irrigated farming program, with 98 million quintals expected to be produced in the ongoing fall season. The Ministry of Agriculture has already sown 3.5 million hectares of land this year, as part of its efforts to boost national wheat production.

Speaking to ENA, Isayas Lemma, the CEO of Crop Development at the Ministry, highlighted that the country is working to increase both production and productivity by enabling farmers to grow crops throughout the year in the summer, spring, and fall irrigated areas. This strategy is designed to ensure food security and reduce dependence on wheat imports.

The increase in production is attributed to expanding the area covered by seeds, utilizing previously uncultivated land, and applying modern agricultural technology and high-quality seeds. These factors have contributed to higher yields and improved productivity.

This year, Ethiopia plans to produce 172 million quintals of wheat from the summer irrigated cultivation alone, with harvesting already underway for the early-sown crops.

For the fall season, 2 million hectares have been sown out of the 3.7 million hectares planned. The target for fall production is 98 million quintals, in line with Ethiopia’s push for year-round food production and greater agricultural self-sufficiency.

Ethiopian Reinsurance S.C. (EthioRe) officially welcomed its new Chief Executive Officer, Netsanet Lemesa, signaling the beginning of a new chapter for the nation’s flagship reinsurance company.

In his remarks, Lemesa extended heartfelt appreciation to outgoing Acting CEO Fikru Tsegaye, recognizing his exemplary leadership during the transition period. Lemesa noted the stability and continuity Fikru maintained in a time of change, further strengthening the organization’s foundation.

Reflecting on his return to the EthioRe family, Lemesa acknowledged his longstanding ties to the sector, particularly his experience as former CEO of the Ethiopian Insurance Corporation, a founding and major shareholder of Ethiopian Reinsurance. His return is widely seen as a strategic fit for the company’s next phase of growth.

“I am honored to rejoin the EthioRe community at this pivotal moment,” Lemesa said. “Together, we will drive innovation, strengthen strategic partnerships, and cultivate a culture of shared success. EthioRe is well-positioned to become a dominant player in the regional reinsurance market, and I am committed to leading us there with purpose and unity.”

Acting CEO Fikru Tsegaye expressed his full confidence in the new leadership, stating: “We are delighted to welcome Netsanet Lemesa as our new CEO. His experience and strategic vision make him the ideal leader to guide EthioRe into its next growth phase.”

Ethiopian Airlines anticipates achieving one trillion ETB ($8 billion) in annual revenue by June 2025, marking a significant milestone in its growth. Group CEO Mesfin Tasew shared this ambitious projection during an interview with BBC News. The airline planned a revenue of $10 billion in 2025, when it crafted its strategic 15-year plan. However, the outbreak of COVID affected the airlines’ revenue as global restrictions on travel affected airlines tremendously.

As part of its expansion, Ethiopian Airlines is making significant strides in the global aviation industry with its plans for a new mega airport in Bishouftu, 43km southeast of Addis Ababa. This airport, to be developed in two phases, will have a transformative impact. Phase One, with a capacity to handle 60 million passengers per year, is set to commence in November this year and be completed by 2029. The second phase, adding another 50 million passenger capacity, will follow shortly thereafter. The new airport, built on 3,500 hectares of land, will make the biggest airport in Afric, symbolising Ethiopia’s leading position in aviation. To ensure the well-being of those affected by the relocation, the airline is constructing residential homes, agro-processing hubs, and trade facilities, ready for the families by November 2025. This new facility will address the growing demand, as Addis Ababa Bole International Airport, despite continuous expansions, has reached its limit of 25 million passengers per year.

This massive infrastructure project directly responds to the increasing number of passengers Ethiopian Airlines serves, both within Africa and globally. In 2024, a report by the African Airlines Association ranked Addis Ababa Bole Airport as the third-busiest airport in Africa, trailing only Cairo and Johannesburg.

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The Ethiopian Deposit Insurance Fund has amassed a total ETB of 5.89 billion in the past nine months, signaling growing momentum in the country’s efforts to build a stable and trustworthy financial system. Of this amount, 88.29% (ETB 5.2 billion) came from insurance premiums collected from financial institutions, while the remaining 11.71% (689.45 million birr) was generated through investment returns.

Established under Council of Ministers Regulation No. 482/2013 and operational for just two years, the Fund is under the supervision of the National Bank of Ethiopia and serves as a critical mechanism to protect depositors in the event of bank failures. Premium contributions were primarily sourced from private banks (ETB 2.67 billion or 51.3%), the Commercial Bank of Ethiopia (2.47 billion birr or 47.5%), and microfinance institutions (ETB 59.49 million or 1.2%).

In terms of investment, the fund has built a portfolio worth ETB 12.11 billion, with 92.24% placed in government treasury bills and the remainder in Mudarabah term accounts, reinforcing its commitment to low-risk, Sharia-compliant financial strategies.

In addition to its financial performance, the Fund is investing in internal capacity—modernizing its information management systems and workforce. As Ethiopia navigates economic reforms, the steady rise of the fund presents a quiet but vital assurance to depositors across the country: their savings are being safeguarded with increasing efficiency and transparency.

The Trade Development Authority of Pakistan (TDAP) and the Pakistani Ministry of Commerce, in collaboration with the Pakistani Embassy in Ethiopia commercial wing, have announced the 5th Pakistan-Africa Trade Development Conference (PATDC) and an exhibition of Pakistani products will be held in Addis Ababa at the Millennium Hall from May 15th – 17th, 2025.

This three-day event is designed to create trade and investment opportunities between Pakistan and Africa. The conference will be attended by high-level government delegations, business leaders, investors, and experts from Africa and Pakistan.

At the exhibition, Pakistani companies will showcase their diverse products and services, including pharmaceuticals, medical equipment, textiles, food products, beauty supplies, and more.

The event will feature various activities focused on trade development, including a business conference, bilateral business-to-business (B2B) meetings, government-to-government (G2G) discussions, and dinner programs.

According to the Pakistani Ministry of Commerce, this conference will play a significant role in strengthening trade relations between Pakistan and Africa.

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Ethiopia has established 374 additional weekend markets over the past nine months, bringing the total number of operational Saturday and Sunday markets across the country to 1,434. The expansion aims to improve access to goods, stabilize consumer prices, and stimulate local economies through more inclusive trade platforms.

The milestone was revealed during a high-level national macroeconomic and sectoral performance review convened this morning by the Ministry of Trade and Regional Integration. Minister Kassahun Gofe led the session alongside Dr. Belete Molla, Minister of Innovation and Technology. The forum engaged ministry staff and stakeholders in a joint assessment of progress made in the 2017 Ethiopian fiscal year.

The review highlighted major achievements beyond market expansions. Over 2.6 million online business registrations and licenses were processed—marking a 102% achievement against the ministry’s plan. This surge in digital registration reflects the government’s commitment to simplifying and modernizing business procedures.

In a historic first, Ethiopia’s export revenues have surpassed USD 5.3 billion within the same nine-month period—making it the highest figure recorded in the country’s export trade history. The Ministry has set an ambitious target to reach USD 7 billion by the end of the fiscal year.

Efforts in regulating the petroleum sector were also cited as a key success. The ministry noted improved oversight in oil marketing and pricing mechanisms, contributing to better supply stability.

“These achievements are a reflection of the enabling environment created by ongoing macroeconomic reforms,” Minister Kassahun said, crediting institutional collaboration and reform-driven momentum for the performance surge.

The report paints a picture of a country intensifying its trade efforts through local innovation, regulatory improvement, and global engagement—laying the groundwork for more integrated and competitive economic growth.

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European Investment Bank Eyes Support for Ethiopia’s New International Airport

Ethiopia Disburses Over ETB 6 Billion in Loans to Manufacturing SMEs

IMF Cuts 2026 Growth Forecast for Sub-Saharan Africa to 4.2%

Boeing Opens Africa Office in Addis Ababa

Ethiopia Boosts Wheat Production with 1.6 Million Hectares Harvested and 3.5 Million Hectares Sown

Ethiopian Reinsurance Welcomes New CEO to Lead Next Phase of Growth

Ethiopian Airlines Eyes Over Trillion ETB in Revenue by June 2025

Ethiopia’s Deposit Insurance Fund Mobilizes ETB 5.89 Billion Birr in Nine Months

Pakistan-Africa Trade Development Conference and Exhibition to be Held in Addis Ababa

374 New Weekend Markets Launched, Total Reaches 1,434 Nationwide