Daily News – Page 24 – Ethiopian Business Review

Harar, one of Ethiopia’s most iconic and culturally rich cities, has officially joined the World Tourism Cities Federation (WTCF), a milestone that signals a promising future for its tourism sector. The announcement was made by the city’s president following the Federation’s annual congress held in Hong Kong.

Becoming a member of the WTCF positions Harar alongside global tourism hubs, opening doors to international collaboration, knowledge sharing, and sustainable tourism development. For a city already celebrated for its centuries-old heritage, vibrant culture, and status as a UNESCO World Heritage Site, this recognition reaffirms its place on the world map.

The timing is symbolic. In 2023 (European calendar), Harar was also recognized as a member of the Organization of World Heritage Cities, cementing its global standing. The city’s entry into such networks not only boosts visibility but could revitalize local economies, attract investment, and inspire a new chapter in Harar’s journey—one where history meets global opportunity.

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In a significant move for the region’s financial markets, the East African Securities Exchanges Association (EASEA) has unveiled the East Africa Exchanges (EAE) 20 Share Index. This new index is designed to track the performance of top companies listed on stock exchanges across East Africa, including key players from Kenya, Tanzania, Uganda, and Rwanda. The initiative aims to provide a unified benchmark, fostering greater cross-border investment and improving market transparency.

The EAE 20 Share Index includes leading firms from a range of sectors, such as telecommunications, banking, and manufacturing, offering investors a more streamlined and comprehensive view of the region’s corporate landscape. According to Business Today Kenya, the companies featured in the index represent a cross-section of East Africa’s diverse economies, from mobile service providers and financial institutions to breweries and cement manufacturers.

Frank Mwiti, CEO of the Nairobi Securities Exchange, called the launch of the EAE 20 Share Index “a significant milestone in the integration of East African capital markets.” The initiative is expected to attract regional and international investors, encouraging portfolio diversification and promoting the development of exchange-traded funds and other financial products tied to the index.

This step is also part of a larger strategy to make East Africa’s stock exchanges more competitive on the global stage. By harmonizing market operations and promoting deeper integration, the EAE 20 Share Index will play a critical role in the region’s efforts to enhance economic cooperation under the East African Community (EAC).

Source: Business Today Africa

Ethiopian Airlines has secured two prestigious awards at global aviation events in Hamburg, Germany, including the ‘Outstanding Food Service by a Carrier – Africa’ award at the 2025 PAX Readership Awards and the ‘Cabin Concept of the Year 2025’ award at the Onboard Hospitality Awards.

This marks the third time Ethiopian Airlines has won the ‘Outstanding Food Service by a Carrier – Africa’ award, recognizing its exceptional onboard catering services. Additionally, the airline earned the Bronze Award for the ‘Cabin Concept of the Year 2025’ for its innovative Airbus A350-1000 cabin, which combines elegant design, enhanced passenger comfort, advanced technology, and top-tier service delivery.

Ethiopian Airlines’ CEO, Mr. Mesfin Tasew, shared his appreciation, stating, “We are honored to be recognized by our industry peers and passengers for the quality of our inflight meal services, and the innovative approach to our new cabin design. These awards are a testament to our commitment to deliver a world-class travel experience inspired by the hospitality culture of Ethiopia and the innovative technologies of the future.”

These accolades add to Ethiopian Airlines’ growing list of achievements, solidifying its reputation as a global leader in aviation service excellence.

The airline’s state-of-the-art catering facility in Addis Ababa, capable of producing up to 100,000 meals daily, serves both Ethiopian Airlines and other international carriers, as well as VVIP and charter flights. The facility includes international kitchens staffed by chefs from around the world, along with a Halal Kitchen certified for Halal meal production.

The innovative Airbus A350-1000 cabin concept boasts a spacious layout, larger windows, mood lighting, and quiet cabins for enhanced comfort across all classes. The aircraft is also equipped with the AVANT Up IFE system, offering 4K displays, Bluetooth connectivity, real-time landscape camera views, and 70W fast-charging ports. Passengers enjoy eco-conscious amenity kits featuring sustainable bamboo brushes, eye masks, nourishing lip balm, and sleep aids.

Safaricom Ethiopia has emerged as a standout player within the Vodacom Group, securing two prestigious awards at the Vodacom Group External Relations 2025 Conference, held from April 7-10 in Fancourt, George, South Africa. The company was recognized for Best Stakeholder Engagement Leadership and Best Youth Empowerment Partner, affirming its growing influence across the continent.

The accolades highlight Safaricom Ethiopia’s strategic leadership and social impact, particularly in its efforts to build trust with key stakeholders and advance youth-focused initiatives. The recognition comes as the company continues to cement its role in Ethiopia’s digital and economic transformation, just over two years since launching operations.

The annual conference brought together Vodacom’s external relations teams from eight markets—Ethiopia, South Africa, Kenya, Mozambique, Tanzania, Egypt, the DRC, and Lesotho—alongside delegates from Vodafone UK, Safaricom Kenya, GSMA, consultants, and leading industry experts. The forum provided an opportunity to share innovative practices, deepen cross-border collaboration, and celebrate exceptional performance.

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The Ethiopian Ministry of Agriculture has announced sweeping progress in its nationwide soil and water conservation efforts, with more than 21,000 streams rehabilitated and over 3.7 million hectares of land physically developed as part of a broader strategy to combat climate change and bolster agricultural productivity.

The initiative, which has been underway since the start of the fiscal year, is part of a larger plan to develop 4.6 million hectares through integrated watershed management and sustainable land use practices. The campaign, spearheaded under the slogan “Our Soil Resources for Our Prosperity,” has mobilized millions of Ethiopians in a coordinated push toward environmental resilience and food security.

Speaking at a high-level seminar evaluating this year’s progress, Professor Eyasu Elias, State Minister of Natural Resources Development, emphasized that the program is critical in mitigating the effects of climate change while laying the foundation for a production-led green economy.

“Our integrated watershed development works are being carried out across all regions, engaging communities to protect and restore land while enhancing agricultural productivity,” he stated. “This is not just about conservation—it’s about transforming livelihoods and ensuring sustainable growth.”

The campaign has seen unprecedented public participation, with over 19.9 million citizens contributing 30 to 60 days of labor per year in soil terracing, afforestation, and gully rehabilitation. According to Chief Executive of the Natural Resources at the Ministry of Agriculture, Fanose Mekonnen, the collective effort represents an estimated ETB 16 billion in mobilized manpower, showcasing the scale of Ethiopia’s community-driven development model.

In addition to new developments, the ministry has prioritized renovating and upgrading past conservation projects, rehabilitating an additional 589,000 hectares of previously degraded land. Efforts also include monitoring tree nurseries, identifying new afforestation sites, and preparing millions of planting pits to ensure long-term ecological benefits.

The Ethiopian Investment Commission (EIC), in collaboration with the Ministry of Finance (MoF) and the Development Partners Group, is gearing up to host the 3rd edition of the Invest Ethiopia 2025: High-Level Business Forum, slated for May 12-13, 2025, at the Skylight Hotel in Addis Ababa. This prestigious event will bring together an impressive mix of 700 global investors, business leaders, policymakers, and entrepreneurs, offering a dynamic platform to explore Ethiopia’s untapped investment opportunities.

During a press conference unveiling the event, Dr. Zeleke Temesgen Boru, Commissioner of the EIC, alongside Semereta Sewasew, State Minister of Finance, Dr. Léandre Bassolé, Deputy Director General for the East African Region at AfDB, and Ashley Mulroney, the Canadian Embassy’s Representative, reinforced the forum’s significance in setting the stage for future investment flows into Ethiopia. Aimed at catalyzing the country’s economic growth, the forum is expected to attract USD 3 billion in investment over the next few years.

The forum is not just a platform for dialogue but a robust opportunity for business leaders to dive deep into Ethiopia’s evolving investment climate. As Dr. Zeleke emphasized, Ethiopia’s strategic geographic location, coupled with its affordable and reliable electricity, positions the country as an attractive destination for foreign direct investment (FDI). “Ethiopia offers investors unparalleled access to regional and global markets, with proximity to the Middle East and other key trade hubs,” he remarked. “Furthermore, the government’s commitment to providing tax incentives and fostering a business-friendly environment makes it an ideal location for long-term investments.”

The forum also seeks to showcase the government’s commitment to fostering a private-sector-driven economy. Over the past few years, Ethiopia has actively worked to create an environment that is both conducive to investment and supportive of entrepreneurship. The strategic reforms implemented to date are now set to serve as the backbone for attracting further capital.

The previous Invest in Ethiopia Forum in April 2023 saw an impressive turnout of 750 foreign investors, with an estimated USD 1.6 billion in investment commitments. These engagements helped Ethiopia secure a USD 3.9 billion FDI influx in the 2023-2024 fiscal year.

Ashley Mulroney, representing the Development Partners Group, highlighted the importance of collaboration between the government, private sector, and development partners in Ethiopia’s investment ecosystem. She noted that while global economic challenges like inflation and trade disruptions continue to affect emerging markets, Ethiopia’s macroeconomic stabilization efforts and structural reforms are proving resilient.

She emphasized the need for investment to focus on inclusive growth, with particular attention to youth, women, and underserved communities. This commitment to fostering inclusive development is crucial as Ethiopia looks to tap into its demographic dividend and address the needs of its rapidly growing population.

The expansion into sectors like telecom, banking, and logistics is another critical focus of the forum. Ethiopia’s recent shift to a market-based exchange rate system has been instrumental in creating a more competitive environment for international investors. Dr. Léandre Bassolé, Deputy Director General for the East African Region at AfDB, stressed that Ethiopia’s opening up of key sectors signals a serious commitment to market liberalization and private-sector involvement. “The government’s macroeconomic reforms and efforts to liberalize essential sectors such as telecom and banking show Ethiopia’s dedication to building a modern, open economy,” Dr. Bassolé remarked.

Ethiopia’s investment journey has been significantly shaped by China’s increasing role in its development, with over 4,500 Chinese-led projects currently operating in the country. However, despite the significant strides made in promoting investment, security challenges continue to pose risks to Ethiopia’s business environment. The ongoing instability in certain regions, coupled with disruptions in supply chains, is affecting investor confidence and escalating operational costs. Dr. Zeleke acknowledged these challenges, urging a balanced perspective on the situation. “While peace is crucial for investment, the perception of instability often outweighs the reality. We must work together to ensure stability, both on the ground and in the global perception,” he said.

Siket Bank is positioning itself as a central player in Ethiopia’s industrial renaissance, claiming a significant role in transforming the country’s manufacturing landscape through financial innovation. At a high-level panel discussion themed “Financial Provision for Industrial Productivity”, the bank showcased its evolving strategy to empower local manufacturers and accelerate industrial productivity.

Held alongside the 2025 Manufacturing Industries Exhibition and Fair at the Addis International Convention Center, the panel attracted key figures from federal and city administrations, private sector leaders, development partners, and industry experts. The discussion aligned with the national “Ethiopia Tamirt” (Ethiopia Manufactures) movement, which champions a shift from import dependency to homegrown production and self-reliance.

Panelists discussed the broader role of finance in Ethiopia’s industrial development while spotlighting Siket Bank’s own transformation—from a microfinance institution into a commercial bank. The transition, they noted, has allowed the bank to expand its reach and offer more sophisticated services tailored to the needs of various businesses.

Testimonials from long-standing clients painted a vivid picture of transformation, micro-enterprises nurtured into competitive manufacturing firms. One such testimony came from Abemelek Degu, a plastic manufacturer, who described finance as “essential—as essential as vision itself.” He credited the bank for turning his small-scale operation into a scalable enterprise, saying Siket “transitioned me from zero to hero.”

Another compelling story came from two returnees who, after abandoning overseas migration, launched a local business with just ETB 5,000 in microfinance support from Siket. Today, they run a firm with a capital base exceeding ETB 10 million—a testament to the bank’s role in unlocking entrepreneurial potential for underserved groups.

Siket Bank also unveiled an innovative lending product developed in partnership with the World Bank, employing psychometric testing to assess loan applicants based on personality traits, behavioral consistency, and social indicators rather than physical collateral.

“We have now started piloting this model with select customers,” said Damte Alemayehu, CEO of Siket Bank. “It evaluates long-term relationships, work ethic, family context, and broader social behaviors to determine creditworthiness. This opens new doors for entrepreneurs who are typically locked out of formal finance.”

The psychometric approach is particularly significant for Ethiopia’s large informal sector, where credit exclusion is a persistent challenge. By gauging trustworthiness beyond traditional balance sheets, the bank hopes to expand access to capital for promising small business owners.

Beyond lending innovation, Siket Bank announced key digital milestones: the launch of mobile banking services and the establishment of a modern data center. These developments are part of the bank’s broader push to modernize its operations and serve an expanding customer base that now exceeds 600,000 clients.

“These may seem like simple steps for legacy banks, but for a newly transitioned institution like ours, they represent bold progress,” said Damte. He emphasized the bank’s vision to be a catalyst for inclusive growth in Ethiopia’s shifting financial landscape.

The panel closed with a unified message from stakeholders: Ethiopia’s industrial growth will remain stunted without bold financial innovation.

The Ministry of Finance has announced that it disbursed over ETB 300 billion in subsidies for basic inputs over the past eight months, while effectively managing the national budget deficit, mobilizing unprecedented levels of foreign resources, raising domestic revenue, and ensuring sound financial governance. According to Finance Minister Ahmed Shide, these measures are part of the government’s broader macroeconomic reform program, which he says is being implemented successfully through the Ministry’s adherence to fiscal discipline, inflation control, and tax policy enforcement.

The remarks were made during a review meeting with the House of People’s Representatives’ Standing Committee on Planning, Budget, and Finance, which assessed the ministry’s performance over the past eight months. Minister Shide emphasized that prudent financial management has strengthened the macroeconomic reform agenda, enabling the government to support key sectors and maintain fiscal discipline.

State Minister Dr. Eyob Tekalign highlighted additional achievements, including efforts to curb rising living costs, public awareness campaigns on tax policies, and improved cash flow management—particularly in ensuring timely budget disbursements to regional administrations. He also noted corrective actions taken on audit findings and reaffirmed the ministry’s commitment to further reducing inflationary pressures in the coming fiscal year.

Committee Chairman Desalegn Wedaje commended the ministry’s overall performance but called for improvements in public project execution, government asset management, and electronic procurement systems. He also stressed the need for better oversight of regional project financing and audit compliance.

The Ethiopian Securities Exchange (ESX) has joined forces with FSD Africa and FSD Ethiopia in a landmark partnership aimed at strengthening Ethiopia’s capital markets.This partnership, announced following ESX’s successful launch, signals a coordinated commitment to deepen the financial sector by mobilizing technical, financial, and strategic resources across the three organizations.

Under the agreement, ESX aims to list more than 50 companies across its main and growth markets while establishing a dedicated platform for government and corporate bonds, including Sharia-compliant instruments such as Sukuks. The partnership will also focus on issuer support, investor education, product development, and institutional capacity building to ensure ESX operates at international standards.

The collaboration brings together technical expertise, financial resources, and strategic oversight from all three entities. ESX will lead project management and implementation, while FSD Ethiopia and FSD Africa will provide funding and advisory support. A dedicated ESX Market Development Committee will coordinate efforts to drive sustainable market growth.

Tilahun Esmael Kassahun, CEO of ESX, underscored the significance of the partnership, stating, “Developing a strong and transparent securities exchange is a milestone in Ethiopia’s financial history.” He emphasized that the initiative will broaden funding options for businesses while equipping investors with the knowledge to engage confidently in the market.

Hikmet Abdella, CEO of FSD Ethiopia, highlighted the transformative potential of the collaboration, noting that robust capital markets are critical for economic growth. “By working together, we are creating a sustainable financial system that will support businesses and provide investment opportunities for individuals and institutions participating in Ethiopia’s economic expansion,” she said.

Mark Napier, CEO of FSD Africa, reinforced the broader continental vision behind the partnership. “Building robust capital markets is essential to unlocking Africa’s economic potential,” he said. Napier pointed to Africa’s vast pool of domestic institutional capital—valued at over USD2.3 trillion—as a key driver for sustainable growth, adding that the collaboration with ESX aligns with FSD Africa’s mission to make finance a transformative force across the continent.

The Ministry of Water and Energy announced that the Bright Project, covering the Abay, Awash, and Tekeze basins, is nearing full implementation. The announcement came during a stakeholder discussion in Addis Ababa, organized by the Water and Land Resources Center.

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Harar Joins Global Tourism Network, Marking a New Era for the Historic City

East Africa Unveils First Regional Stock Index to Boost Market Integration

Ethiopian Airlines Wins Double Honors at 2025 Global Aviation Awards

Safaricom Ethiopia Wins Double Recognition at Vodacom Group External Relations Conference 2025

Ethiopia Reclaims 3.7 Million Hectares Through Nationwide Soil and Water Campaign

Invest In Ethiopia 2025 Forum to Drive USD 3 Billion in FDI

Siket Bank Claims At the Forefront of Ethiopia’s Manufacturing Transformation

Ethiopian Govt Disburses ETB 300 Billion in Subsidies, Cuts Inflation Amid Economic Reforms

ESX Partners with FSD Africa and FSD Ethiopia to Boost Capital Market Growth

Bright Project to be Fully Implemented Across Three Key Ethiopian Basins with USD 49.45 Million Euros in Support