Daily News – Page 27 – Ethiopian Business Review

Ethiopia’s horticulture sector has delivered a robust USD366 million in revenue over the past eight months, reinforcing its position as one of the nation’s top three foreign exchange generators, the Ministry of Agriculture announced.

Speaking at the opening of the 9th Hortiflora Expo at Millennium Hall, Agriculture Minister Girma Amente (PhD) highlighted the sector’s growing economic impact, emphasizing its role in job creation—particularly for women, who make up over 80% of the workforce.

The horticulture industry—spanning flowers, fruits, vegetables, and herbs—has not only boosted exports but also spurred the growth of small, medium, and large enterprises across Ethiopia. However, Minister Girma noted that fruits, vegetables, and herbs remain underutilized in terms of export potential.

With global consumer trends shifting toward healthier diets, the government is implementing policy and sector reforms to attract more private investment and maximize opportunities in high-demand markets.

Organized by the Ethiopian Horticultural Producers and Exporters Association (EHPEA), this year’s expo—under the theme “Horticulture for Sustainable Ethiopia”—brings together ministers, producers, diplomats, and industry stakeholders to explore key challenges and innovations.

✔ USD366M earnings in 8 months – Floriculture leads, but fruits/vegetables untapped.
✔ Women dominate workforce – Over 80% of jobs held by female workers.
✔ Policy reforms underway – Govt. aims to boost private sector participation.
✔ Expo highlights sustainability – Focus on agro-logistics, EU compliance, and green growth.

Last night, the Sheraton Addis’ Lalibela Hall buzzed with energy as high-ranking government officials, banking and fintech CEOs, prominent business leaders, shareholders, and distinguished guests gathered to celebrate the Cooperative Bank of Oromia’s 20th anniversary. The event was a testament to the bank’s remarkable journey, blending lively celebration with reflections on its transformative impact on Ethiopia’s financial sector.

The bank’s remarkable journey traces back to visionary Haile Gebre Lube, widely regarded as the father of Ethiopia’s cooperative movement. Two decades ago, he championed a revolutionary idea: that cooperation represented the most powerful weapon against poverty. His grassroots mobilization effort saw community members contribute up to 100 ETB each, collectively amassing an impressive ETB 750,000 in seed capital.

This people-powered movement formally established a project office in 2002, with cooperative societies forming the majority of initial shareholders. After securing its commercial license in October 2004, the bank commenced operations in March 2005. Today, maintaining its cooperative roots, over 55% of the bank’s ownership remains in the hands of cooperative societies.

Mamo Mihretu praised the institution as one of the nation’s fastest-growing and most innovative financial institutions. “The Cooperative Bank of Oromia exemplifies modern banking through strong leadership, driving financial inclusion while maintaining its cooperative principles,” he stated.

The governor particularly commended the bank’s responsiveness to regulatory guidance and its alignment with national development goals. “The bank’s leadership has demonstrated exceptional commitment to implementing government directives and supporting economic progress,” Mamo noted. “During our transition to a market-based foreign exchange system, which introduced new market dynamics, Cooperative Bank stood out in its swift and effective adoption of these changes.”

With a customer base of 17 million, the bank’s mobile wallet, Coopay e-Birr, has become one of Ethiopia’s top platforms, processing mobile transactions totaling 3 trillion Birr. The bank has empowered over 1.2 million micro, small, and medium enterprises (MSMEs) with its digital, collateral-free loan offerings called Michu, significantly enhancing financial access for entrepreneurs and small businesses. Michu is Ethiopia’s first uncollateralized digital lending product, powered by Kifiya’s Qena, AI-driven digital lending platform developed in partnership with Mastercard Foundation.

“This platform strengthens collaboration between fintechs and traditional banks, representing a breakthrough in unconventional banking solutions for Ethiopia,” said the governor.

CEO Derbe Asfaw highlighted the bank’s role in transforming living standards by integrating advanced technology and digital solutions. Under its leadership, the bank has launched several innovations, including the SACCO-Link application, which enables cooperatives and unions to engage in digital banking, and the first Coop Remit, a blockchain-based money transfer service in Ethiopia.

Financially, the Cooperative Bank of Oromia has seen substantial growth, with total assets now standing at ETB 189.4 billion and deposits reaching ETB 169.45 billion, reflecting a strong ETB 52.3 billion increase in the last nine months. The bank operates 745 branches and employs 15,000 individuals, positioning itself as a key player in Ethiopia’s banking sector.

The bank’s commitment to sustainability is also evident in its expansion of eco-friendly branches, which operate on renewable energy. Throughout its 20th-anniversary celebrations, the bank has focused on social responsibility and community-driven projects under the initiative “Project 20 for 20th Anniversary.”

As it looks to the future, the Cooperative Bank of Oromia remains committed to driving economic development and financial inclusion across Ethiopia, making it a vital institution in the country’s evolving banking landscape.

The Ethiopian Birr has shown signs of strengthening against the US Dollar as the National Bank of Ethiopia (NBE) continues its scheduled foreign exchange auctions. The latest auction, held on April 1, 2025, saw the weighted average exchange rate settle at Birr 131.71 per USD, reflecting a 2.88% appreciation from the Birr 135.62 per USD recorded in the previous auction in February 2025.

The strengthening of the Birr reflects Ethiopia’s improving foreign exchange position, supported by a series of macroeconomic reforms introduced in July 2024. The country has experienced increased foreign currency inflows from exports, remittances, and capital investments. “NBE’s foreign exchange reserves have surged by more than 200% following the transition to a market-driven forex system,” said Governor Mamo Mihretu in his recent statement.

Further supporting the country’s financial outlook, Ethiopia has reached an agreement in principle with its official creditors to restructure USD 8.4 billion in external debt. This restructuring move is expected to ease financial pressures and strengthen Ethiopia’s position in ongoing negotiations with private creditors, including bondholders. The anticipated reduction in debt servicing obligations could create additional fiscal space, further stabilizing the country’s economic environment.

NBE’s shift to bi-weekly foreign exchange auctions is playing a crucial role in stabilizing the market by ensuring a steady supply of forex to the private sector. The reduction in the exchange rate indicates a potential easing of forex pressures, a positive sign for businesses reliant on imports and foreign transactions.

The next auction is scheduled to take place in two weeks, with details to be announced one day prior.

The National Bank of Ethiopia (NBE) successfully conducted its first bi-weekly foreign exchange auction today, marking a key milestone in its ongoing efforts to stabilize the forex market.

According to NBE’s official announcement, the weighted average exchange rate for successful bids settled at Birr 131.7095 per US Dollar, with 12 banks securing foreign exchange allocations.

This auction is part of the central bank’s broader strategy to enhance forex liquidity for the private sector following Ethiopia’s recent macroeconomic reforms. It follows NBE’s decision to launch regular bi-weekly auctions, a move driven by improved forex reserves and increased capital inflows.

The next auction is scheduled to take place in two weeks, with details on the exact date and time to be disclosed one day prior.

By maintaining a structured approach to foreign exchange distribution, the NBE aims to reinforce market confidence while supporting broader economic stability. Market participants will closely monitor upcoming auctions to assess trends in forex availability and pricing.

Ethiopia has secured significant interest from Indian investors to expand its pharmaceutical sector, aiming to transition from import reliance to a key continental producer. This outcome was achieved at the Ethio-India Trade and Business Forum, held at the Skylight Hotel, where Zeleke Temesgen Boru (Ph.D.), Commissioner of the Ethiopian Investment Commission (EIC), outlined the country’s commitment to fostering self-sufficiency and boosting exports as part of its 10-year national development strategy.

The Kilinto Special Economic Zone has played a pivotal role in this transformation, offering tax incentives and exemptions to attract investment in local pharmaceutical production. Dr. Zeleke has invited Indian investors to explore opportunities in pharmaceutical manufacturing, medical equipment production, health infrastructure, and digital health—sectors identified as having substantial growth potential.

India’s Ambassador to Ethiopia, Anil Khmer Rai, has commended Ethiopia’s recent business-friendly policy reforms and urged Indian companies to leverage the favorable investment environment.

The forum has attracted over 80 Indian companies in the pharmaceuticals and medical materials manufacturing sectors, offering a platform for deeper collaboration and investment in Ethiopia’s pharmaceutical market.

The Koka Hydropower Dam is poised to meet its power generation targets for the 2024/2025 fiscal year, according to station manager Morka Haile. The plant is on track to produce 134.9 gigawatt hours (GWh) of electricity, with 119 GWh generated over the first nine months of the year.

Morka highlighted that the current water level in the dam stands at 1586.68 meters above sea level, slightly below the 1587.01 meters recorded during the same period last fiscal year. Despite this minor difference, the water level is sufficient to ensure uninterrupted power generation for the remainder of the year, allowing the station to meet its annual output target.

With 65 years of operation, the Koka Hydropower Station continues to produce an average of 110 GWh annually, consistent with its original design output. Morka credited the station’s operational efficiency to the dedicated efforts of the operation and maintenance department, emphasizing their critical role in sustaining reliable power generation.

The station has also undergone significant improvements over the years, including a major reconstruction of the electromechanical department 25 years ago. Ongoing projects are carefully planned, involving key stakeholders to ensure the safety of the dam and address environmental concerns such as weed control.

Currently, the Koka Hydropower Station operates with three turbines and has a capacity of 43.2 megawatts, contributing significantly to Ethiopia’s energy supply and supporting the country’s development goals.

Ethiopia has signed a landmark agreement with the World Bank, securing a combined USD96.367 million (ETB12.5 billion) in grant and loan funding to advance the country’s education sector. The agreement, aimed at enhancing access to education and improving the quality of learning, was formalized by Finance Minister Ahmed Shide and Mariam Salim, the World Bank’s Director for East Africa.

Under the terms of the deal, USD50 million will be provided as a loan by the International Development Association (IDA), while USD46.367 million will come from the Global Education Partnership Fund. These funds are set to strengthen Ethiopia’s educational framework, particularly in pre-primary and primary education.

Key areas of focus include the capacity building of teachers for grades 1 through 6, the provision of pre-service teacher training aligned with the new curriculum, and support for school leaders, especially female leaders. Additionally, the project aims to create a digitally enabled education system, enhancing learning opportunities across the country.

Addis Ababa has launched 100 electric buses, marking a major milestone in the city’s push for sustainable urban mobility. This initiative is part of Ethiopia’s broader efforts to modernize public transport, reduce carbon emissions, and decrease reliance on fossil fuels.

Unveiled by the Addis Ababa City Administration, the electric buses are designed to provide a more efficient, comfortable, and environmentally friendly alternative to traditional transport. Equipped with cutting-edge service features—including a prepaid card system for seamless payments—the buses are set to redefine urban commuting in Ethiopia’s capital.

The fleet will be deployed across various routes, enhancing accessibility and reducing reliance on fossil fuels. The initiative aligns with Ethiopia’s broader efforts to promote green energy solutions and ease the city’s notorious congestion.

The launch ceremony was attended by key government figures, including Addis Ababa City Mayor Adanech Abebe and Minister of Transport and Logistics Alemu Sime (PhD), along with other senior federal and city officials.

The Ethiopian government has implemented various measures to support the transition to electric mobility. In April 2024, the Transport and Logistics Ministry introduced over 30 electric buses in Addis Ababa, emphasizing passenger comfort and environmental responsibility. Additionally, plans were announced to procure 100 electric city buses, further underscoring the commitment to building a green economy.

The government has also initiated the construction of public charging stations and is exploring local manufacturing of EV batteries to reduce import reliance. However, challenges remain, including limited charging infrastructure and the need for skilled mechanics to service electric vehicles.

Ethiopia’s livestock and fisheries sector has made remarkable strides in recent years, with the National Livestock Development Program driving significant improvements. Among the most notable achievements, the country’s egg production has surged from 3.2 billion to 9.1 billion in just four years, demonstrating the effectiveness of targeted agricultural policies, as reported by Ministry of Agriculture.

The program, officially launched on November 03, 2022, by Prime Minister Abiy Ahmed (PhD) in Arba Minch, aims to ensure food security, enhance domestic livestock production, reduce imports, and boost foreign exchange earnings. Minister of Agriculture Girma Amente (PhD) highlighted these achievements during the inauguration of the National Multi-Purpose Dairy Development Training Center in Holeta, a facility backed by the World Bank to train 20,000 dairy technicians and expand farmer support services.

The rapid increase in egg production is part of broader sectoral growth. Cow milk production has risen from 5.8 billion to 10.3 billion liters, chicken meat production has expanded from 90,000 to 240,000 tons, and honey output has nearly doubled to 296,000 tons. The success of these initiatives has prompted a reassessment of future targets to sustain momentum.

A major driver behind this growth is Ethiopia’s expanding artificial insemination capacity, which has jumped from 500,000 to 3 million procedures in just two years, resulting in 1.7 million improved calves born in the last eight months alone. Additionally, eight new Liquid Nitrogen Centers are being established to ensure a stable supply for breeding programs.

The poultry sector has also seen significant advancements. Initially, Ethiopia distributed only 26 million one-day-old chicks annually. Following government intervention, this figure rose to 41 million, and with the establishment of the Grand Parent Stock Center by MIDROC Investment Group and the Ministry of Agriculture, the country now has the capacity to produce 100 million chicks per year. So far, 85 million chicks have been distributed in the past eight months, with plans to reach 150 million by year-end.

Other key developments include the introduction of 1,994 modern beehives and a shift toward fish farming in artificial ponds. Previously reliant on lakes and rivers, farmers now raise fish in controlled environments, with 7.6 million fish fingerlings distributed in just eight months.

The Ministry of Agriculture is prioritizing knowledge-driven development to sustain these gains. The Holeta-based training center will not only equip technicians but also empower model farmers and pastoralists, ensuring long-term growth in the sector. Research institutions and animal development centers are also being urged to collaborate with local communities to maximize impact.

The National Bank of Ethiopia (NBE) has drafted a new directive that emphasizes stricter data security, storage, and management for all banks in the country.The Requirements for Licensing and Renewal of Banking Business and Representative Office Directive No. SBB/Xx/2025 opens the door for foreign banks to establish subsidiaries or branches for the first time. However, foreign banks must meet stringent requirements, including a minimum capital of ETB 5 billion (approximately USD87 million) for subsidiaries, possess investment-grade credit ratings, and secure approval from their home-country regulators. This regulatory shift is a part of Ethiopia’s broader effort to modernize its financial sector, attract foreign investment, and align with global banking practices while safeguarding local stability.

Under the new directive, foreign banks must undergo thorough fit-and-proper checks, which include criminal and tax clearance, and submit detailed business plans demonstrating long-term viability. Non-lending representative offices are also allowed to facilitate market research and business liaisons, but they are prohibited from conducting banking activities. The directive further mandates that all foreign banks and their subsidiaries comply with strict data security requirements, ensuring that customer data is stored and processed within Ethiopia’s borders. This aligns with the Banking Business Proclamation No. 1360/2025 and the Personal Data Protection Proclamation No. 1321/2024, providing a legal framework for safeguarding banking and personal data.

Additionally, the directive imposes higher standards on domestic banks, including increased capital requirements, new data localization rules, and mandates for gender diversity on boards. Domestic banks applying for a new business license will be required to pay an investigation fee of ETB 100,000 and a licensing fee of ETB 300,000, with a renewal fee of ETB 200,000. Foreign banks face higher fees, including an investigation fee of ETB 200,000, a licensing fee of ETB 600,000, and a renewal fee of ETB 400,000. Representative offices of foreign banks will have to pay an investigation fee of ETB 50,000, a licensing fee of ETB 150,000, and a renewal fee of ETB 100,000.

The directive also provides clear rules for the licensing process, including annual renewals for all banks between July 1 and September 30. Banks must submit updated financial statements, capital information, and confirmation of legal reserves, while representative offices must demonstrate proof of a USD 100,000 cash deposit to cover their expenses. The NBE retains the authority to approve or reject applications based on an institution’s ability to operate according to Ethiopian banking laws and regulations.

One of the most significant aspects of the directive is the stringent data security provisions. All banks are now required to store and process customer data within Ethiopia, with foreign bank branches needing to store both primary and backup data locally. Banks transferring data abroad must notify the NBE, ensure robust encryption, access controls, and demonstrate that the jurisdiction receiving the data offers comparable protection.

Analysts view these reforms as a critical step in Ethiopia’s economic transition, following the partial privatization of the telecom sector. While the reforms aim to attract foreign investment and modernize the financial system, they also maintain cautious capital controls and impose limits on foreign ownership, capping foreign stakes in Ethiopian banks at 49%. The NBE is expected to process license applications within 90 days, with the first foreign banks anticipated to begin operations in the country in the coming year.

The directive replaces the previous Requirements for Licensing and Renewal of Banking Business Directive No. SBB/56/2013, marking a step forward in Ethiopia’s efforts to integrate more fully into the global financial system while safeguarding its national interests.

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Ethiopia’s Horticulture Sector Generates USD366 Million in Eight Months

From Grassroots to ETB 189B: The Cooperative Bank of Oromia’s 20-Year Journey in Redefining Inclusive Finance

Ethiopian Birr Strengthens Against USD as NBE’s Forex Auctions Stabilize Market

Ethiopia’s Central Bank Concludes First Bi-Weekly FX Auction at ETB 131.71

Indian Investors Eye Ethiopia’s Booming Pharmaceutical Sector

Koka Hydropower Dam Continues to Generate 110 GWh Annually

Ethiopia Secures USD96.3 Million Grant and Loan from the World Bank to Boost Education

Addis Ababa Rolls Out 100 Electric Buses

National Livestock Program Boosts Egg Production from 3.2 Billion to 9.1 Billion

Banks to Face Higher Licensing Fees and Stricter Data Security Requirements Under New NBE Directive