The Ethiopian Electric Service (EES) has reported losses exceeding ETB 50 million over the past seven months due to widespread crimes targeting its infrastructure. Incidents such as power theft, transformer and cable theft, meter tampering, and damage to power lines have severely disrupted services and strained the institution’s resources. These acts of vandalism and theft have not only caused financial losses but also highlighted the vulnerability of the country’s electrical grid.

In response to these challenges, EES is actively monitoring 163 criminal cases related to these offenses. So far, 11 cases have been resolved, resulting in 13 defendants receiving prison sentences ranging from two months to 10 years, alongside fines of up to ETB 50,000. The institution emphasized that these legal actions are part of a broader effort to deter future crimes and protect critical infrastructure.

At the same time, EES is addressing internal issues, having taken administrative action against 22 executives and employees following allegations of malpractice and corruption. The measures, which included written warnings for three individuals and fines for 19 others, were prompted by customer complaints and an internal review. This dual focus on external crime and internal accountability underscores the institution’s commitment to improving service delivery and restoring public trust.

In addition to tackling theft and misconduct, EES has intensified efforts to recover unpaid utility bills. The institution issued warnings to 368 customers who had defaulted on payments, successfully collecting approximately ETB 127.8 million in outstanding fees.

Missed This Week’s Business & Economic News? We’ve Got You Covered!

Been busy this week and couldn’t keep up with the latest business and economic developments? No worries—we’ve rounded up the biggest headlines for you. From Ethiopia’s push for port access to a record-breaking export surge, here are the key updates shaping the economy.

Ethiopia Eyes Indian Ocean Access as Somalia Opens Talks

In a move that could ease recent tensions, Somalia is considering granting Ethiopia access to a port on the Indian Ocean. Talks between the two nations aim to finalize a framework by June, determining the type of port, location, and costs. The development follows a diplomatic strain earlier this year when Ethiopia struck a deal with Somaliland, prompting opposition from Mogadishu. If successful, the new agreement could offer Ethiopia a critical lifeline for maritime trade.

Ethiopia’s Exports Surge, Crossing $3.84 Billion in Seven Months

Ethiopia’s export earnings have soared past expectations, reaching $3.84 billion in just seven months—an impressive 101% increase compared to last year. Gold, coffee, oilseeds, and livestock have led the charge, fueling optimism for a record-breaking year. Officials now anticipate full-year earnings to exceed $6 billion, nearly doubling the previous total.

Kenya’s Lamu Port Secures Ethiopian Trade, Strengthening Regional Ties

Ethiopia has committed to using Kenya’s Lamu Port for imports, a move expected to boost regional trade and logistics. Kenyan President William Ruto announced plans to position Lamu as a key transshipment hub, further integrating Ethiopia into East Africa’s economic corridors.

Powering Progress: Ethiopia Expands Electricity Access Nationwide

The Ethiopian Electric Utility (EEU) has connected nearly 250,000 new customers to the grid, expanding access to rural and urban areas alike. Key upgrades, including the installation of 2,000 new transformers and repairs across 38,855 km of distribution lines, are set to improve reliability and coverage.

World Bank Grants Ethiopia $60M to Strengthen Climate-Resilient Healthcare

A major funding boost is on the way as Ethiopia secures a $60 million grant from the World Bank to improve healthcare for women and girls in climate-stressed regions. The initiative will focus on digital solutions and resilience-building efforts in drought-prone areas such as Afar, Somali, and Gambella.

Andersen Global Expands into Ethiopia Through ADS Valuation Services

International advisory firm Andersen Global has partnered with ADS Valuation Services in Addis Ababa, strengthening its foothold in Ethiopia’s evolving business environment. The collaboration comes as Ethiopia’s first securities exchange takes shape, driving demand for valuation services.

In a push toward digital transformation, Ethio Telecom has launched seven cloud-based services, including AI-driven enterprise tools, digital livestock tracking, and ERP solutions. These innovations aim to modernize business operations while reducing the need for costly infrastructure investments.

Ethiopia and Russia have taken a significant step in strengthening their economic, scientific, and technical cooperation, with top officials convening in Addis Ababa for the inaugural meeting of the Russia-Ethiopia Intergovernmental Commission. The discussions, led by Russian Minister of Economic Development Maksim Reshetnikov and Ethiopian Minister of Innovation and Technology Belete Molla, focused on expanding bilateral trade and exploring new avenues for collaboration.

Highlighting Ethiopia’s strategic importance as a key African partner, Reshetnikov revealed that trade between the two nations surged by nearly 40% in the first ten months of 2024 compared to the same period the previous year. He underscored the need to identify new market opportunities to sustain this momentum.

Agriculture remains the dominant sector in bilateral trade, accounting for 89% of total exchanges. Russia sees potential in supporting Ethiopia’s agricultural development through expertise in drought mitigation, land reclamation, and the introduction of drought-resistant wheat varieties. Additionally, increasing exports of Russian agricultural machinery, food products, and liquid fertilizers is expected to bolster Ethiopia’s resilience against climate-related challenges.

A landmark achievement of the meeting was the signing of a roadmap for cooperation on the peaceful use of nuclear technology. The agreement outlines key steps for assessing Ethiopia’s nuclear energy potential, developing infrastructure, and training specialists in the sector.

As part of ongoing engagement, Russia has invited Ethiopian representatives to the next session of the commission in Moscow in June 2025, coinciding with an international tourism forum scheduled for June 10-15.

The Intergovernmental Authority on Development (IGAD) has welcomed the renewed diplomatic engagement between Somalia and Ethiopia, marking a significant step forward in the Horn of Africa’s political landscape.

In a statement released this Friday, IGAD expressed its approval of the ongoing diplomatic efforts between the two nations, underscoring the importance of peaceful resolution and enhanced cooperation. This momentous shift follows a year of strained relations, during which both countries navigated a series of challenges. With tensions now eased, the latest round of discussions between Somali and Ethiopian leaders aims to strengthen regional stability and address shared concerns over security, economic development, and cross-border cooperation.

IGAD, which has long played a pivotal role in fostering regional peace and integration, commended the commitment of both governments to finding common ground. The renewed dialogue is seen as a crucial turning point, not just for Somalia and Ethiopia but for the entire East African region. “This engagement is a testament to the power of diplomacy and the will to overcome historical differences,” said an IGAD spokesperson.

The announcement has been met with optimism, as observers believe this diplomatic breakthrough will not only foster better relations between Somalia and Ethiopia but also contribute to broader regional cooperation. IGAD has called on other member states to support this renewed partnership and build upon it for the prosperity and peace of the Horn of Africa.

Faced with a growing fertilizer shortage that threatens agricultural production, Ethiopia is stepping up efforts to enhance its logistics infrastructure, aiming to ensure the timely delivery of fertilizer to farmers before the critical winter planting season.

In a strategic meeting held in Djibouti, Ethiopia’s Transport and Logistics Minister, Dr. Alemu Sime, convened with leaders of key logistics institutions to discuss the pressing challenges and potential solutions for the efficient transport of fertilizers. The meeting underscored the central role of logistics in mitigating the impact of fertilizer shortages that have hampered agricultural activities in the past year.

The Soil Fertilizer Operations Committee, a collaborative initiative spearheaded by the Ethiopian Embassy in Djibouti, was lauded for its successful coordination of fertilizer imports. In a single day, the committee oversaw the delivery of over 18,000 metric tons of fertilizer, a notable achievement that highlights the effectiveness of inter-agency cooperation in overcoming logistical bottlenecks.

However, the issue of fertilizer scarcity remains a pressing concern. Despite a $1.3 billion budget allocated by the Ministry of Agriculture to procure over 2.4 million tons of fertilizer for the current year, Ethiopia continues to face a significant supply gap. The fertilizer supply has failed to meet the demands of regional states, largely due to global market fluctuations and logistical challenges along the Ethio-Djibouti corridor.

In response, the Ethiopian government has prioritized early procurement for the upcoming Belg (short rainy season) and Meher (main rainy season) harvests, which are pivotal to the country’s agricultural output. The Ethiopian Agricultural Business Corporation (EABC), which holds the monopoly on fertilizer imports, is moving swiftly to secure 25 million quintals of fertilizer to meet immediate demand. This proactive step is intended to avoid the delays that have plagued previous distribution efforts.

“The logistics sector plays a vital role in ensuring that we can get fertilizers into the hands of farmers on time,” Dr. Alemu emphasized. “In this season, more than ever, we must ensure that no logistical hurdles stand in the way of food security. We are committed to strengthening our supply chains and resolving any issues promptly.”

While the Ethiopian government continues to address immediate logistical challenges, the role of the Ethio-Djibouti trade corridor remains crucial. Despite efforts to streamline operations, the corridor has faced frequent disruptions, hindering the smooth flow of goods, including fertilizers. The government is now focusing on addressing these disruptions to ensure that transportation bottlenecks do not impede fertilizer delivery.

The Ethiopian Embassy in Djibouti has also played a significant role in facilitating real-time communication and resolving problems that arise along the route. With the winter planting season fast approaching, the government is keen to ensure that farmers have access to fertilizers without delay, which is crucial for maintaining agricultural productivity and food security.

Somalia is considering offering Ethiopia access to a port on the Indian Ocean, a move that could ease tensions between the two nations over Addis Ababa’s long-standing quest for a direct trade route to the sea, according to Bloomberg.

The two countries are in talks, aiming to finalize a framework agreement by June, Somalia’s state minister for foreign affairs, Ali Mohamed Omar, said in an interview with Universal TV on Thursday.

Omar explained that the framework would determine the type of port to offer, the exact location in the Indian Ocean, and the overall cost. His comments followed a meeting in Mogadishu between Somali President Hassan Sheikh Mohamud and Ethiopian Prime Minister Abiy Ahmed.

On his social media page, Prime Minister Abiy expressed his gratitude, saying, “I appreciate the warm and brotherly welcome by President Hassan Sheikh Mohamud in Mogadishu today. We held extensive discussions on a range of areas including peace and security, economy, diplomacy, and the potential to build joint infrastructure.”

Bloomberg reported that spokespeople for Ethiopia’s Office of the Prime Minister and Ministry of Foreign Affairs did not respond to requests for comment.

Diplomatic relations between Ethiopia and Somalia soured in January after Ethiopia announced a deal with Somaliland, a self-governing region that Somalia claims as its own. The agreement included port access and a military base on the Gulf of Aden, alongside an agreement to provide Somaliland with an unspecified stake in Ethiopian Airlines, Africa’s largest carrier. Mogadishu strongly opposed the deal, considering Somaliland part of Somalia.

Abiy (PhD) and Mohamud (PhD) agreed to resolve their dispute by the end of February, under the mediation of Turkish President Recep Tayyip Erdoğan. In the meantime, Somalia has partnered with Turkish construction firm Metag Holding to develop a port in the coastal town of Hobyo, with construction set to begin later this year.

Lamu Port is set for increased activity following a significant agreement between Kenya and Ethiopia, positioning it as a key regional transshipment hub. President William Ruto announced on today that Ethiopia has committed to using Lamu Port for its imports, a move expected to boost trade, create jobs, and strengthen the region’s economy. He emphasized that this agreement aligns with Kenya’s broader strategy to enhance the port’s role in regional logistics and commerce.

As Kenya’s second-largest port after Mombasa, Lamu is a central component of the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) corridor, which has been under development since 2012. To further solidify its regional importance, President Ruto revealed plans to host regional leaders at the port in the near future. The first three modern berths at Lamu Port are now complete and ready for use, marking a critical step in its operational readiness.

To address the impact of port expansion on local communities, the government has allocated Ksh.1.7 billion to compensate fisherfolk displaced by construction. In addition to port development, President Ruto launched the 468-unit Mokowe Affordable Housing Project in Lamu West Constituency, which is expected to generate employment opportunities for young people while improving housing infrastructure in the area.

Further investments in infrastructure are also underway, with the government committing Ksh.600 million to connect 7,000 households in Lamu County to electricity this financial year. Meanwhile, in Tana River County, President Ruto commissioned the Bura Gravity Canal, which will expand irrigation from 6,000 to 25,000 acres. He highlighted that 70% of the funding for the project came from the government, underscoring agriculture’s critical role in securing food supply, creating wealth for farmers, and reducing dependency on costly imports.

Reaffirming his administration’s commitment to equitable development, President Ruto declared that past discriminatory resource allocation practices are over. He urged Kenyans to reject divisive politics, warning against leaders who exploit ethnic divisions for personal gain. Stressing the importance of national unity, he called on citizens to remain focused on collective progress, reinforcing his vision of Kenya as one united nation working toward shared prosperity.

Ethiopian Electric Utility (EEU) has made significant strides in expanding electricity access across the country, achieving a major milestone in the first seven months of the fiscal year. A total of 249,658 new customers have been successfully connected to meters through the EEU’s operation/service centers and the National Electricity Supply Program. This expansion demonstrates the EEU’s ongoing commitment to providing electricity to more citizens and enhancing the national power infrastructure.

In addition to this achievement, the EEU has made remarkable progress under the National Electricity Supply Program, connecting 72 rural kebeles and villages that previously lacked electricity. These communities, spread across various regions of Ethiopia, have now been integrated into the national grid and provided with off-grid solar mini-grid technology. This move significantly reduces the gap between rural and urban access to electricity and brings substantial benefits to these previously underserved areas.

The EEU is also preparing to handle even more energy requests, ensuring that it has the necessary capacity to meet the growing demand for electricity. This is a key part of the ongoing effort to enhance service delivery while ensuring a reliable supply for both new and existing customers.

In terms of infrastructure improvement, the EEU has made substantial progress in repairing, reconstructing, and expanding Ethiopia’s electricity network. A total of 38,855 kilometers of the distribution network were repaired, 3,801 kilometers were reconstructed, and 706 kilometers of new infrastructure were added. Additionally, 941 distribution transformers were upgraded, and 2,000 new transformers with various ratings were installed. These upgrades are crucial in enhancing the country’s power supply and supporting the increased number of connections.

Despite these advancements, power outages remain a challenge. According to Engineer Getu Geremew, Executive Director of the Electricity Service, 47 percent of power interruptions are caused by trees and branches falling on power lines. To address this issue, the EEU launched a nationwide initiative two months ago to clear and trim trees along the power lines, aiming to reduce disruptions caused by environmental factors.

Dr. Brook Taye, CEO of Ethiopian Investment Holding, stated that the organization is committed to eliminating unreasonable power outages. Ethiopian Investment Holding, which oversees more than 20 state-owned enterprises, including the Ethiopian Electric Power Service, identified various reasons for power disruptions, including insufficient infrastructure, technical difficulties, and other operational challenges.

In response, a thorough study was conducted over the past six months to better understand the root causes of the outages. Based on the findings, a medium-term plan has been developed and is already being implemented. This plan focuses on improving the operational efficiency of the electricity network and aims to significantly reduce power outages, ensuring more consistent and reliable electricity delivery to Ethiopians.