The Ethiopia Securities Exchange (ESX) has announced that Ethiopia’s interbank money market (IMM) has surpassed ETB 500 billion in total transaction volume within just six months of operation, marking a significant milestone in the country’s financial sector.

Launched in October 2024 by the National Bank of Ethiopia (NBE), the IMM was established to facilitate short-term borrowing and lending among banks, enhancing liquidity management and improving financial market efficiency. Governed by the Interbank Money Market Rules, the platform has rapidly gained traction, reflecting growing investor confidence and increasing market activity.

The milestone underscores the evolving landscape of Ethiopia’s banking sector, where structured platforms like the IMM are strengthening market transparency and fostering economic stability. As momentum builds, this achievement highlights the potential for further financial sector reforms, deeper investor participation, and a more resilient financial ecosystem in Ethiopia.



 

The Addis Ababa Transport Bureau has confirmed that construction of the city’s long-awaited Bus Rapid Transit (BRT) system will commence sooner this fiscal year, marking a major step forward in modernizing the capital’s public transportation network. Speaking to Ahadu Radio, Dagnachew Shiferaw, the bureau’s deputy head, revealed that 15 BRT corridors are planned for development in the coming years, with the first phase—a 19-kilometer route stretching from Jemo 3 to Piyasa Adwa—slated to begin construction this year. Funded with support from the French government, the project has already secured a contractor, ensuring that work will proceed as scheduled.  

Unlike conventional bus services, the BRT system will operate on dedicated lanes, significantly reducing delays caused by traffic congestion. Dagnachew emphasized that the current practice of buses waiting to fill up before departing—a fuel-saving measure that inconveniences passengers—will be eliminated once the express service is operational. Commuters will benefit from reliable, on-demand transportation without unnecessary waiting times. The BRT model, successfully implemented in cities worldwide, is expected to bring similar efficiency gains to Addis Ababa.  

Looking ahead, the city’s transport infrastructure will feature a dual-system approach: a mass transit train network alongside the BRT for high-capacity movement, while taxi services will cater to middle-income residents. As construction progresses on the initial line, additional BRT routes will be developed in parallel, signaling a broader shift toward a faster, more organized urban transit system. This initiative represents a critical milestone in addressing Addis Ababa’s growing mobility challenges and improving the daily commute for millions of residents.

 



 

Yodahe Arayasalassi, Director of the Ethiopian National ID Program, has been recognized by San Francisco-based Okta as one of 25 global leaders in digital identity. The recognition highlights his pivotal role in shaping Ethiopia’s national identification system, which has already registered over 13 million citizens.

Under Arayasalassi’s leadership, the Ethiopian National ID Program is set to reach 70 million citizens by 2025, providing Ethiopians with secure, accessible, and reliable digital identity solutions. This initiative is a crucial part of the country’s efforts to enhance governance, improve service delivery, and promote financial inclusion.

In a statement shared by Okta, the company emphasized how digital identity has become a cornerstone of global security, particularly in the wake of the pandemic. With the rapid digital expansion, the need for secure digital identities has never been more critical. Okta’s recognition of Arayasalassi underscores the transformative role Ethiopia is playing in the global digital identity landscape.

Okta’s annual Identity 25 honors individuals who have made significant contributions to securing and evolving digital identity systems. The initiative aims to highlight the leaders who are shaping the future of identity, protecting personal data, and ensuring digital inclusivity for all.



 

The Ethiopian Customs Commission has announced sweeping changes to the regulation of goods imported without foreign currency payments (Franco-Valuta), as part of a broader financial sector overhaul.  

The National Bank of Ethiopia (NBE) confirmed the repeal of the decades-old Establishment Proclamation No. 691/2000, replacing it with the more robust NBE Proclamation No. 1359/2017. The move grants the central bank stronger oversight powers while scrapping the previous Council of Ministers Regulation No. 88/1995, which governed Franco-Valuta imports.  

In a transitional measure, the Customs Commission will continue processing foreign exchange license requests under existing procedures—but with stricter scrutiny. Non-commercial Franco-Valuta requests from government agencies, NGOs, and international organizations must now be vetted by Customs Operations Managers and approved only by senior Customs Office Managers.  

The NBE has ordered meticulous record-keeping, requiring monthly reports on Franco-Valuta transactions to prevent misuse. The changes signal Ethiopia’s push to modernize trade finance controls while managing forex shortages—a critical issue for import-dependent industries.  

Businesses and institutions must adapt quickly, as further directives are expected. The reforms aim to curb abuse of forex exemptions, ensuring hard currency is prioritized for essential imports.  

 



 

Ethiopia is set to host the fourth edition of the Africa Startup Ecosystem Builders Summit & Awards (ASEB 2025). The event, organized by the Africa Startup Ecosystem Builders Society, will bring together entrepreneurs, investors and policymakers from across the continent to Addis Ababa from October 1-3.

Originally planned for Cote d’Ivoire, the summit was relocated due to scheduling conflicts with that country’s national elections. The theme for this year’s gathering is “Empowering Africa’s Startup Ecosystem Builders: Tools, Funding, and Global Visibility for Sustainable Growth,” focusing on strengthening support systems for emerging businesses.

McKevin Ayaba, founder of the ASEB Society, explained that the change in venue presents an exciting chance to highlight Ethiopia’s entrepreneurial potential. “Every good story has moments where the unexpected creates new opportunities,” Ayaba said. “Ethiopia represents an exciting frontier with tremendous entrepreneurial potential.”

Local firm Sahan Advisory Services will serve as the host partner for the event. The company’s co-founder Dr. Jibril Mohamed Ahmed was previously honored as ASEB’s Startup Mentor of the Year in 2022. Sahan CEO Dr. Kassahun Delene Deyassa emphasized the summit’s importance for Ethiopia’s innovation landscape, noting it will help amplify the voices of those building the country’s entrepreneurial ecosystem.

The three-day program will include an awards ceremony recognizing Africa’s top startup supporters, practical workshops on business development topics, and tours of Ethiopia’s innovation hubs. These activities aim to connect Ethiopian entrepreneurs with continental networks and potential investors.

This event comes at a pivotal time for Ethiopia’s technology and startup sectors, which have seen rapid growth in recent years. The summit provides a platform to attract international attention and investment to local innovation efforts while strengthening Ethiopia’s connections to pan-African business networks.

Organizers expect the gathering to highlight Ethiopia’s emerging role as a hub for entrepreneurship in Africa. As Ayaba noted, the event will contribute to “the broader narrative of an Africa whose economic future is shaped by those who enable entrepreneurship.” The selection of Addis Ababa as host city reflects growing recognition of Ethiopia’s potential in the continental startup landscape.

 



 

Ethiopia and the European Union (EU) today signed a major  €240 Million (USD266.7 million) grant agreement under the 2024 Annual Action Programme (AAP-2024), reinforcing their five-decade-long strategic partnership. The agreement, inked at the Ministry of Finance, targets critical development areas, including agribusiness expansion, digital skills training, post-conflict recovery, and governance reforms.  

The funding will support agribusiness initiatives to enhance productivity and create jobs for smallholder farmers, while also strengthening digital skills within Technical and Vocational Education and Training (TVET) institutions to drive economic growth. Additionally, the program will bolster democratic institutions, restore basic health services in conflict-affected regions, and provide psychosocial support for survivors of gender-based violence. Another key focus is improving economic opportunities for displaced populations through integrated solutions and boosting private sector engagement in vital value chains.  

Finance Minister Ahmed Shide hailed the EU’s support as pivotal in addressing Ethiopia’s pressing challenges. “This financing package is crucial for stimulating private sector investment, modernizing our tax and customs systems, and enhancing services in agribusiness, health, and education,” he said. “It reinforces our longstanding partnership and contributes significantly to our ongoing reforms.”  

The minister also stressed the importance of regional integration under the EU’s Global Gateway Initiative, highlighting the Horn of Africa’s untapped potential for economic cooperation. “As we navigate evolving economic landscapes, our focus on regional cooperation is more critical than ever,” he noted, referencing collaborative frameworks like the Horn of Africa Initiative (HOAI).  

EU Ambassador to Ethiopia,  Sofie From-Emmesberger, underscored the agreement’s broader significance, stating, “The AAP 2024 reflects our collective commitment to advancing sustainable development in Ethiopia. This is not just a financial agreement; it is a manifestation of our shared values and goals for a prosperous future.”  



 

Ethiopian Airlines has officially launched a new cargo charter route connecting Macao and Madrid, further cementing its position as Africa’s leading freight carrier. The inaugural flight, operated by a Boeing 777 freighter (ET3483), took off from Macao International Airport on Thursday morning, marking a strategic expansion into East Asia-Europe trade lanes.

The new route, initially operating twice weekly, is expected to handle over 20,000 tons of cross-border cargo annually, significantly enhancing trade flows between China’s Greater Bay Area, Europe, and South America. Key exports include high-demand e-commerce goods such as electronics, auto parts, apparel, cosmetics, toys, and small appliances.

This launch follows Ethiopian Airlines’ successful cargo operations in Shenzhen, Guangzhou, and Hong Kong, reinforcing its role as a critical logistics bridge between Asia, Africa, and beyond. Aman Wole Gurmu, Ethiopian Airlines’ Country Director for China, emphasized the route’s potential to deepen collaboration with e-commerce supply chains in the Greater Bay Area, a major manufacturing and trade hub.

A representative from Macao International Airport welcomed the partnership, stating that the new route will “unlock greater trade and economic opportunities” between Macao, Europe, and emerging markets. The move aligns with Ethiopian Airlines’ broader strategy to capitalize on booming global e-commerce demand while enhancing Africa’s connectivity to key global markets.

 



 

Ethiopia’s trade sector has shown remarkable growth, with foreign trade volumes reaching USD 4.5 billion in just the first eight months of the current fiscal year. This represents a significant leap from the USD 2.6 billion recorded for the entire year in 2010, highlighting the country’s expanding economic footprint.  

Trade and Regional Integration Minister Kassahun Gofe (PhD) shared these figures during a stakeholder forum discussing Ethiopia’s draft trade policy. The government has set an ambitious target to surpass USD 6 billion in total trade by the end of the fiscal year, building on current momentum.  

A key development in Ethiopia’s trade landscape is the creation of its first comprehensive trade policy framework. For years, the country operated without a formal trade policy, but after extensive efforts, officials have now prepared a draft document to guide future commerce.  

The ministry has also been busy implementing structural reforms, including issuing 2.5 million new business licenses to stimulate entrepreneurship. To boost consumer access and commercial activity, authorities have established over 1,300 weekend shopping malls across the country.  

In a major push for quality control, Ethiopia has invested ETB 8.2 billion to build a state-of-the-art Quality Assurance Center. This facility will monitor more than 4.5 million tons of imported and exported goods annually, ensuring standards compliance.  

Minister Kassahun connected these developments to Ethiopia’s broader macroeconomic reforms and its bid to join the World Trade Organization. He expressed confidence that the new trade policy demonstrates the country’s readiness for WTO membership while aiming to create a more competitive and sustainable trade environment.  

The draft trade policy specifically focuses on facilitating regional economic integration, reflecting Ethiopia’s growing role as a commercial hub in East Africa. These collective efforts represent a comprehensive approach to modernizing Ethiopia’s trade ecosystem and positioning the country for greater global economic engagement.

 



Ethiopia’s mining sector has shattered expectations with a gold export boom in the 2024/2025 fiscal year. Official reports reveal Ethiopia exported 22.5 tons of gold in just eight months – nearly four times its 6-ton target.  

This stellar performance positions Ethiopia to potentially join Africa’s top gold exporters. At the current pace, year-end exports could reach 33 tons, significantly boosting foreign currency reserves.  

The mining sector has emerged as Ethiopia’s export champion, contributing the lion’s share of USD1.88 billion in total export earnings. However, the sector faces structural challenges, with artisanal miners producing 95% of output through traditional methods.  

To address these challenges, the government plans to operationalize small gold processing factories. This move aims to increase production efficiency while formalizing the largely informal sector.  

The gold export surge comes at a critical time for Ethiopia’s economy. While the windfall provides immediate relief to forex reserves, long-term success depends on transitioning from artisanal to industrial mining practices.  

Minister Habtamu Tegegne presented these findings during a review of the ministry’s eight-month performance. The report highlights both the sector’s potential and the need for sustainable development strategies to maintain growth.  

 



 

The United States has imposed a 10% tariff on Ethiopian exports as part of President Donald Trump’s latest global trade policies, a move that could have implications for Ethiopia’s export sector.

In a statement from the White House on Wednesday, President Trump justified the sweeping tariff increases—ranging from 10% to 50% on various trading partners—as a strategy to prioritize American economic interests and reduce the country’s trade deficit. Ethiopia was among the nations affected, with exports to the U.S. now facing added costs.

“The United States must protect its economy from unfair trade practices. If other nations impose high tariffs on us, we will respond accordingly,” Trump declared.

He has long advocated for reshaping international trade agreements, claiming that high tariffs imposed by other countries have unfairly subsidised their economies at the expense of the US.

Ethiopia has exported products such as textiles, coffee, and agricultural goods to the U.S. under various trade agreements. The new tariffs could affect the competitiveness of these exports in the American market amid Ethiopia’s suspension from AGOA.

Ethiopia previously benefited from the African Growth and Opportunity Act (AGOA), which provided duty-free access for many products. However, recent policy shifts have changed the trade dynamics between the two nations. With the added tariff, Ethiopian exporters may face increased costs that could impact trade volumes.

The tariff changes come at a time when Ethiopia is seeking to boost exports and attract investment. It remains to be seen how local businesses and policymakers will respond to these trade adjustments.

“Countries such as Kenya, Ghana and Ethiopia with the lowest tariffs of 10% are potential African Winners,” Zemedeneh Negatu, CEO of CBE Capital shared on his social media. “They have a unique opportunity to expand their exports to the U.S. at low tariffs which could make their products more price competitive.”

The new tariffs have prompted reactions from various global stakeholders. The European Union, Japan, and South Korea have raised concerns over the potential impact on global trade and economic stability. Some analysts warn that these measures could lead to inflation in the U.S. and disruptions in supply chains.

“Globalization has entered a new uncharted era and African countries need to prepare,” Zemedeneh Warned

For Ethiopia, the decision adds a new factor to the evolving trade landscape. Businesses may need to evaluate alternative markets or strategies to mitigate potential economic effects.

However, Zemedeneh said that Ethiopia, which has invested hundreds of millions in labor intensive industries for exports such as garments, and competes globally with garment industry heavyweights such as Vietnam and Bangladesh, could price outcompete these two countries which are facing increased U.S. tariffs of 46% and 37% respectively.

The tariff varies across countries. China faces a 34% tariff, while the European Union is subject to 20%. Vietnam is hit with 46%, Taiwan with 32%, and Japan with 24%. India, South Korea, and Thailand face tariffs of 26%, 25%, and 36%, respectively. Switzerland and Indonesia both receive a 32% tariff, while Malaysia is at 24%. Cambodia faces the highest rate at 49%, while the United Kingdom, Brazil, Singapore, Chile, Australia, Turkey, and several other nations, including Ethiopia, are subject to a 10% tariff. Bangladesh is taxed at 37%, while Sri Lanka and Myanmar (Burma) face 44%. Madagascar sees a 47% tariff, Laos 48%, and Lesotho the highest at 50%. Other notable rates include Nigeria at 14%, Côte d’Ivoire at 21%, and Namibia at 21%. Several Middle Eastern and African nations, including Saudi Arabia, Egypt, and Kenya, face a 10% tariff. These tariff adjustments reflect the broader changes in U.S. trade policy under President Trump’s administration.

 




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