In a move aimed at adapting to the changing economic landscape and maintaining competitiveness, the Commercial Bank of Ethiopia (CBE) has announced revised interest rates across various loan categories, effective March 7, 2025. These adjustments reflect the bank’s ongoing transformation efforts and its commitment to balancing operational sustainability with customer needs.

For agricultural loans, CBE has opted for a moderate increase in interest rates. Short-term agricultural loans, including overdrafts, will remain at 14%, while medium-term loans are set at 14.5%. Long-term agricultural loans, which encompass fertilizer financing, will see an increase to 15.5%. These adjustments are designed to support the sector while managing the bank’s rising operational costs.

In the housing sector, the bank has kept rates unchanged for residential condominium loans. Both the 40/60, 20/80, and 10/90 long-term schemes will continue to carry an interest rate of 12%. This decision aims to ensure that homebuyers continue to have access to affordable financing, particularly in a market where housing costs remain a significant concern for many Ethiopians.

The bank’s commercial loan portfolio also sees considerable changes. For non-export term loans, including short-term overdrafts, the interest rates will range from 14% to 16.5%, with short-term loans set at 15%, medium-term loans at 15.75%, and long-term loans at 16.5%. Commercial condominium loans, both for the 40/60 and 20/80 schemes, will now carry an interest rate of 16.5%, up from the previous 15.5%. This increase reflects the need to address the higher costs associated with commercial lending.

Import-related financing has also been adjusted, with short-term advance loans for import bills rising to 18%, up from 17%. Similarly, merchandise loans will now be set at 16.5% for short-term borrowing, an increase from the previous 15.5%. These increases are a response to the growing costs associated with international trade and the need to ensure financial viability in an evolving market.

Microfinance institutions, which play a key role in supporting small businesses, will experience significant rate hikes. Short-term loans will rise to 14%, up from 11.5%, while medium-term loans will increase to 14.5%. Long-term loans for microfinance institutions will see an increase to 15.5%, up from 12.5%. These changes reflect the bank’s strategy to manage the financial risks of lending to small-scale operations while ensuring continued profitability.

In the personal loan category, the bank has introduced the following updates: mortgage loans will now carry a 14% interest rate for long-term borrowers, vehicle loans will be set at 15%, and personal loans will also see a 15% interest rate for long-term borrowers. These adjustments aim to provide retail customers with access to financing options while aligning with the bank’s broader financial strategy.

By recalibrating its interest rates, CBE aims to continue offering essential financial services to individuals, businesses, and key economic sectors while managing its own operational costs and ensuring long-term sustainability.

The first meeting of the Ethiopia-South Sudan Joint Border Trade Committee is currently underway in Bishoftu town, marking a significant step in strengthening bilateral relations and enhancing cross-border trade between the two nations.

Ethiopia’s State Minister of Trade and Regional Integration, Ms. Yasmin Wahabrebi, highlighted the purpose of the meeting, stating that it aims to review the implementation status of the border trade protocol signed by the two countries. “This meeting is crucial for assessing progress and addressing challenges to ensure the effective implementation of the agreement,” she said.

Ms. Yasmin further emphasized that the discussions will focus on identifying key issues and exploring ways to strengthen bilateral relations through the agreement. “By working together, we can create a more robust trade environment that benefits both nations and fosters peace and stability in our border areas,” she added.

The agreement is seen as a vital tool for promoting peace and stability in the border regions, which have faced challenges such as contraband and illicit trade.

The State Minister noted that the meeting will play a critical role in addressing these issues and ensuring the successful implementation of the Border Trade Protocol Agreement. “This is an opportunity to enhance cooperation, curb illegal activities, and create a more secure and prosperous environment for our people,” she said.

The inaugural meeting of the Joint Border Trade Committee underscores the commitment of Ethiopia and South Sudan to deepening economic ties and fostering regional integration. As the discussions continue, stakeholders are expected to develop actionable strategies to improve cross-border trade, strengthen infrastructure, and promote sustainable development in the border areas.

A new report by global risk advisory firm WTW (Willis Towers Watson) reveals that this dangerous nexus is spreading across the continent, with Ethiopia emerging as a troubling case study. Illegal mining operations, often controlled by armed groups, are fueling instability, undermining economic growth, and threatening the country’s ambitious development plans.

In the war-scarred Tigray region, where a brutal two-year conflict left hundreds of thousands dead and brought mining operations to a standstill, as much as six tons of gold are smuggled out of the country annually by armed factions, according to WTW. This illicit trade not only deprives the Ethiopian government of vital revenue but also perpetuates cycles of violence in regions already struggling to recover. The problem extends beyond Tigray, with areas like Benishangul and Oromia reporting significant discrepancies between official mining outputs and government projections due to rampant illegal extraction.

The challenges are starkly illustrated by the experience of one organization attempting to launch a project. Access to the site was repeatedly blocked by militant violence, interference from regional authorities, and encroachment by illegal miners—a trifecta of obstacles that highlights the complexities of operating in Ethiopia’s contested regions.

Ethiopia’s path to stability and growth is fraught with challenges. The Tigray conflict, which saw rebels march on the capital and brought the region’s economy to a halt, may have officially ended, but the country remains deeply fractured. Today, the most pressing threats to Ethiopia’s long-term stability stem from ongoing clashes between the state and ethnic militias in the Amhara and Oromia regions. These armed groups are not only waging insurgencies but are also driving a surge in kidnap-for-ransom cases, which have repeatedly targeted foreign-owned companies.

Militants are increasingly targeting Ethiopia’s critical infrastructure, including major roadways leading to the port of Djibouti—the country’s primary trade artery. The Oromia region, which encircles the capital, Addis Ababa, has become a particular hotspot for such attacks. For foreign businesses seeking to capitalize on Ethiopia’s push to expand its mining industry, the risks are growing. Companies operating in or near the capital, especially those perceived to have ties to the central government, are increasingly vulnerable to attacks by armed groups, according to WTW.