Daily News – Page 24 – Ethiopian Business Review

Dashen Bank has made history by becoming the first private bank in Ethiopia to secure a Trade Finance Guarantee Facility Agreement worth USD 40 million from the African Development Bank (AfDB). The agreement was officially signed this morning at Dashen Bank’s headquarters, marking a major milestone for both the bank and Ethiopia’s financial sector.

The signing ceremony was attended by key representatives from Dashen Bank and AfDB. Asfaw Alemu, CEO of Dashen Bank, expressed pride in securing this facility, noting that it is the first of its kind to be extended to a private bank in Ethiopia. He emphasized that Dashen Bank is honored to serve as a bridge to bring this significant opportunity to life. Asfaw further highlighted that the agreement symbolizes strategic alignment that helps unlock Africa’s full potential. He attributed the successful securing of this facility to Dashen Bank’s rigorous due diligence, operational soundness, and progress in governance, underscoring the bank’s strong strategic direction.

Dr. Leandre Bassole, Deputy Director General of East Africa at the AfDB, expressed the agreement’s importance, calling it a pivotal milestone in strengthening the partnership between the AfDB and Ethiopia’s financial industry. Bassole noted that the agreement will play a significant role in advancing inclusive, private sector-led growth in Ethiopia, emphasizing that it marks the first direct trade finance guarantee facility the AfDB has provided in the country.

This facility will enable Dashen Bank to facilitate import and export trade finance requirements, thereby enhancing the bank’s capacity to support critical sectors of the Ethiopian economy. It is expected to significantly bolster trade finance by providing guarantees to confirming banks for non-payment risks arising from trade finance instruments such as letters of credit issued by Dashen Bank. This initiative responds to the challenges faced by Ethiopian banks, which have been constrained by inadequate credit lines from international confirming banks, limiting their ability to support clients effectively.

The facility is also expected to promote intra-Africa trade, aligning with the African Continental Free Trade Area (AfCFTA) agenda. It will help address the financing gaps in critical sectors and support the import of essential goods such as fertilizers, pharmaceuticals, solar energy panels, and agricultural machinery, all crucial for Ethiopia’s development.

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Ethiopia has been selected by the International Atomic Energy Agency (IAEA) to host a bachelor’s degree program in nuclear science and technology for African member states.

The announcement was made by Ethiopia’s Ministry of Innovation and Technology, which revealed that a strategic agreement has been signed between the IAEA, the Government of China, Tsinghua University, and Addis Ababa Science and Technology University (AASTU) to establish the continent’s first IAEA-backed undergraduate program in nuclear engineering based in Ethiopia.

The initiative is designed to build long-term capacity in nuclear science across the African continent—particularly in sectors such as health, agriculture, mining, environmental management, manufacturing, and energy. The program will also serve Ethiopia’s domestic needs by nurturing a new generation of nuclear engineers and technical experts.

Minister of Innovation and Technology, Dr. Belete Molla, described the agreement as a turning point in Ethiopia’s scientific advancement. “Ethiopia is emerging as a gateway to science and technology in Africa,” he said. “By hosting this program, we are not only accelerating our own development but offering access to a critical knowledge frontier for our African partners.”

He noted that Ethiopia’s selection followed an extensive negotiation process, during which its institutional readiness and regional relevance were emphasized. The program will support the country’s broader economic goals by integrating peaceful nuclear technology applications into national development strategies.

As part of the agreement, up to ten Ethiopian professionals will undergo a six-month specialized training at Tsinghua University in China—one of the world’s leading institutions in nuclear science. Upon their return, they will support the delivery of the degree program in collaboration with experts from China and the IAEA.

IAEA Deputy Director General for Technical Cooperation, Hua Liu, expressed confidence in Ethiopia’s capacity to lead the initiative. He emphasized the program’s broader economic implications, noting that the IAEA and the Chinese government will provide laboratory infrastructure and other essential resources to support implementation.

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In a significant step toward alleviating urban transport challenges, Ethiopia’s Transport and Logistics Service Improvement Council has reported the deployment of 100 electric buses in Addis Ababa and the ongoing procurement of an additional 100 buses. The update came during the Council’s nine-month performance review meeting, attended by its Chairman, Engineer Tsedeke Yehune, Minister of Transport and Logistics Dr. Alemu Sime, and key sector leaders.

The report highlights that the 100 electric buses currently in operation are collectively transporting over 96,000 passengers per day, providing a much-needed boost to the city’s congested public transport system. The initiative not only addresses chronic service shortages but also aligns with national ambitions to promote clean and efficient mobility.

To further respond to public demand and persistent service gaps, the Ministry has initiated the procurement of another 100 buses, targeting the most underserved areas of the capital. This dual action—deployment and procurement—marks a coordinated effort to expand capacity and restore public confidence in mass transport.

In addition to expanding fleet capacity, the Council revealed ongoing efforts to modernize the logistics ecosystem through the development of an integrated digital transport management system. This system aims to streamline freight transport services, enhance efficiency, and combat corruption through digital tracking and service automation.

A sector-wide service delivery survey presented during the session also pointed to improvements in urban transport operations, particularly in reducing complaints related to bus accessibility, skipped stops, and inconsistent service. While progress has been noted, the Council acknowledged that gaps remain and called for sustained attention to service quality.

Key institutions—including the Ethiopian Civil Aviation Authority, Ethio-Djibouti Transport Authority, and the Ministry of Transport and Logistics—were credited for making gradual improvements in service delivery. However, Council members stressed the need for continued modernization and institutional accountability.

Minister Dr. Alemu Sime emphasized that the sector is entering a critical phase of transformation. “The progress recorded over the past nine months is encouraging. These improvements must not be reversed, and all stakeholders should remain committed to further advancing the sector,” he said.

Council Chairman Engineer Tsedeke Yehune echoed the importance of stakeholder engagement, urging members to continue supporting reform efforts and to serve as vigilant observers in the journey toward a more responsive and competitive transport system.

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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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Dashen Bank Becomes First Private Bank in Ethiopia to Secure Trade Finance Guarantee from AfDB

Ethiopia to Launch Africa-Focused Nuclear Engineering Degree Program with IAEA Backing

Ethiopia Deploys and Procures 200 Buses to Ease Urban Transport Pressure

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