@AfricanUnion – Ethiopian Business Review

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In a development that signals a major realignment in Africa’s coffee trade, Uganda has officially surpassed Ethiopia to become the continent’s leading coffee exporter, marking a watershed moment in a market long dominated by Ethiopia’s legacy.

According to the latest figures released at the World of Coffee Geneva 2025 event, Uganda exported a record 47,606.7 tonnes of coffee in May 2025, significantly outpacing Ethiopia’s 43,481 tonnes for the same month. This marks the first time in recent memory that Ethiopia has been outpaced on export volume by a regional competitor.

The data also revealed that Uganda exported 793,445 60kg bags in May alone, a staggering 43.59% increase from the 552,569 bags shipped in May 2024. This performance earned the country USD 243.9 million in a single month, pushing Uganda’s cumulative annual earnings to USD 2.09 billion between June 2024 and May 2025. Over that period, Uganda exported 7.43 million bags, compared to 6.08 million the previous year.

Ethiopia, long celebrated as the birthplace of coffee and Africa’s traditional leader in export volume and quality, finds itself in a more competitive environment than ever before.

Officials from Uganda’s Ministry of Agriculture, Animal Industry and Fisheries credited the achievement to sustained efforts in boosting coffee quality, expanding production, and enhancing value chain coordination.

Back home, Ethiopian industry leaders have responded with calm optimism. Gizaw Worku, General Manager of the Ethiopian Coffee Association, downplayed the significance of the monthly figures in an interview with Sheger FM.

“Uganda becoming Africa’s top coffee exporter for one month does not surprise us,” Gizaw said. “Monthly export volumes can fluctuate for various reasons—including shipment schedules, international demand cycles, and port logistics. Even Brazil, the world’s largest coffee exporter, faces such monthly variations.”

He emphasized that Ethiopia still leads the continent in total annual exports and added: “As of now, Ethiopia remains Africa’s top coffee exporter when looking at the year as a whole. A temporary spike from another country should not be misinterpreted as a long-term shift.”

However, Gizaw acknowledged Uganda’s recent progress: “Uganda is clearly making strides. They’re investing in coffee sector reforms and expanding their reach in global markets. But for Ethiopia, our strength lies in the premium quality and heritage of our Arabica coffee. What matters is how we maintain consistency, build traceability, and adapt to the global market.”

He also cautioned, “If we see a consistent decline in our monthly exports over several consecutive periods, then that’s when we should raise questions. But for now, this is just a market fluctuation.”

Ethiopia remains Africa’s largest coffee producer, responsible for roughly 559,400 tonnes annually, and accounts for about 17% of the global coffee market. Ethiopia ranks fifth globally in coffee production and holds the eighth position worldwide in coffee exports, shipping approximately 3.76 million 60kg bags per year.

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Unilever has become the first foreign company licensed to directly import finished goods into the country. The landmark development was marked by the official launch of Vaseline, Unilever’s world-renowned skincare brand, making high-quality skin health products more accessible than ever to Ethiopian consumers. This follows the Ethiopian Investment Commission’s amendment of Directive No. 1001/2024, which formally opens Ethiopia’s wholesale, retail, import, and export sectors to foreign investors.

This moment reflects the broader impact of Ethiopia’s recent economic reforms, which have begun to reshape trade dynamics and attract global investment by easing import restrictions on finished goods. For the first time, multinational companies like Unilever can bypass traditional import bottlenecks and bring globally trusted brands directly to Ethiopian shelves.

Held in Addis Ababa, the event was more than a typical product launch. It served as a platform to build trust and deepen brand engagement with Ethiopian consumers. Through interactive displays and insightful discussions, attendees were introduced to the full Vaseline product range, with particular emphasis on formulations suited to Ethiopia’s dry air, high altitudes, and varying climates. The experience was thoughtfully designed to establish a strong and enduring connection between the brand and its new market.

“Today is not just a product launch; it’s a celebration of partnership, progress, and our unwavering commitment to the well-being of the Ethiopian people,” stated Nesibu Temesgen, General Manager of Unilever Ethiopia. “The opportunity to directly import Vaseline is a game-changer for us and, more importantly, for Ethiopian consumers. It underscores our dedication to this dynamic market and our promise to provide products that truly make a difference in people’s lives.”

For over a century, Vaseline has stood as a beacon of skin health, from its iconic Vaseline Petroleum Jelly to its comprehensive Intensive Care lotions. These products, known globally for their ability to heal, restore, and protect, will now be readily available across Ethiopia’s diverse communities.

The launch introduces Vaseline’s advanced lotion formulations directly to consumers. Vaseline lotions eliminate the need for extra oils, simplifying and improving skincare routines. They save time and reduce costs, offering a premium solution widely available across Ethiopia starting at ETB 80 for Petroleum Jelly and ETB 300 for Lotions.

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The Addis Ababa City Administration Cabinet has proposed a substantial budget increase for the 2025/2026 fiscal year, submitting a draft budget of ETB 350 billion to the city council, as reported by Fana Media Corporation (FMC). This represents a major expansion compared to the approved ETB 230.39 billion budget for the current 2024/2025 fiscal year.

The current fiscal year’s budget already marked a significant 64% rise from the previous year, with capital expenditures accounting for nearly two-thirds of the total allocation. Priorities included infrastructure development, job creation, housing projects, and poverty alleviation initiatives designed to support the city’s rapidly growing population.

Building on this foundation, the newly proposed budget allocates approximately 249.9 percent of its resources to critical sectors such as sustainable development, infrastructure expansion, poverty reduction, job creation, and subsidies for essential public services. The remaining ETB 100.1 billion is reserved for the city’s regular operational costs, managed with a strong emphasis on fiscal discipline and savings.

In parallel, the cabinet approved revisions to land lease bid prices following recommendations from the Land Development and Administration Bureau. The city’s Communication Bureau explained to the FMC that this adjustment is in response to improved infrastructure within corridor development zones, stable land prices, and future urban expansion requirements.

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Ethiopian Airlines, Africa’s largest and most profitable carrier, has officially commenced passenger flights to Hyderabad, India, marking its fifth destination in the country.

The inaugural flight ceremony, was attended by Ethiopian Airlines Group CEO Mesfin Tasew, Indian Ambassador to Ethiopia Shri Anil Kumar Rai, and other high-ranking officials from both nations.

Speaking at the event, the group CEO emphasized that the new route enhances connectivity not only between Ethiopia and India but also provides broader access to the African continent through Ethiopian’s extensive network of over 140 international destinations.

Ambassador Rai underscored the strategic importance of Hyderabad, calling it a “key commercial and innovation hub in India,” and welcomed the direct air link as a catalyst for deeper bilateral engagement across sectors.

The new route strengthens Ethiopian Airlines’ presence in the Indian subcontinent, joining its existing services to New Delhi, Mumbai, Bengaluru, and Chennai.

Hyderabad, the capital of India’s Telangana state, is a major economic and cultural hub known for its thriving information technology, biotechnology, and pharmaceutical industries. Often called “Cyberabad,” the city hosts global tech giants like Microsoft, Google, and Amazon, and is home to Genome Valley, a leading biotech cluster. Its Rajiv Gandhi International Airport is among the top-ranked in Asia, serving as a strategic gateway to southern India. With a rich historical legacy and a growing reputation in medical tourism and education, Hyderabad plays a pivotal role in connecting India to global markets—making it a valuable addition to Ethiopian Airlines’ expanding network.

This development comes just two weeks after the airline launched its new route to Sharjah in the United Arab Emirates, now its second destination in the UAE after Dubai. The move underscores Ethiopian’s strategic commitment to route diversification and global network growth, aligned with its Vision 2035 strategy.

Ethiopia, in partnership with the African Union, is set to host the Second Africa Climate Summit (ACS2) from September 8–10, 2025, reaffirming its role in advancing continental climate leadership. Held under the theme “Green Talks and Green Actions,” the summit will spotlight Nature-Based Solutions as central to Africa’s climate adaptation and mitigation strategy, with a focus on re-greening the continent and reinforcing African solidarity.

The summit comes at a time when Ethiopia is accelerating its shift toward sustainable development. In a landmark policy shift, the government has enacted a full ban on single-use plastics—modernizing environmental regulations that had remained largely unchanged for nearly two decades. The administration has also introduced a draft proclamation on ecosystem services, proposing the introduction of a fee framework to support conservation and equitable resource management.

Ethiopia’s climate efforts are further anchored by its Green Legacy Initiative, which has seen the planting of more than 32 billion seedlings over the past five years, with an estimated 90% survival rate. The campaign, launched by Prime Minister Abiy Ahmed, has gained international recognition for its scale and emphasis on ecological restoration.

“As Ethiopia launches its Green Legacy season, its preparations reflect a deep commitment to practical climate solutions,” Prime Minister Abiy stated on social media. “The call is clear: invest in nature, scale proven solutions, and embrace a model where ecology drives the economy.”

Preparatory consultations for ACS2 are already underway. In April, Ethiopia’s Minister of Foreign Affairs, Gedion Timothewos, and Minister of Planning and Development, Fitsum Assefa, held discussions with Moses Vilakati, African Union Commissioner for Agriculture, Rural Development, Blue Economy and Sustainable Environment. Commissioner Vilakati commended Ethiopia’s proactive stance and its readiness to lead the upcoming continental gathering.

The Africa Climate Summit, first launched in Nairobi in 2023, is becoming a key platform for African nations to articulate homegrown climate solutions, financing models, and regional cooperation frameworks. The first edition culminated in the adoption of the Nairobi Declaration, which called for reforming global climate finance, establishing a carbon tax, and unlocking green investments. Ethiopia’s hosting of the second edition is expected to build momentum around the continent’s climate diplomacy and green transformation agenda.

Pula Advisors, an international insurtech company, in partnership with Oromia Insurance S.C. and other local partners, has provided agricultural insurance coverage to 700,000 smallholder farmers as of December 2024. Building on this success, the company aims to reach an additional 3 million farmers by the end of the current fiscal year. This scale-up effort brings together a consortium of local insurers, including Abay Insurance S.C., Africa Insurance S.C., Ethiopian Insurance Company (EIC), Nyala Insurance S.C., and Oromia Insurance S.C.

The announcement was made on Wednesday by Pula’s Ethiopia Country Director, Dagmawi Haileyesus, during the UNDP’s Financial Resilience in Agriculture (FRA) Community of Practice (CoP) 2025 high-level international forum, held at the United Nations Economic Commission for Africa (ECA) headquarters in Addis Ababa. The event brought together over 100 participants from 24 countries.

Held under the theme “Ethiopia’s Two-Decade Pilot Journey: Voices from Partners Implementing Agriculture Insurance”, the forum spotlighted Ethiopia’s evolving landscape in agricultural insurance, highlighting policy gaps, challenges, and future directions.

Solomon Zegeye, Director at Nyala Insurance, pointed out that premium affordability remains a major barrier, particularly for smallholder farmers. “Only large-scale producers can afford current rates,” he noted, adding that without strong policy intervention to enable premium financing, the scale-up of agricultural insurance will remain limited.

Other pressing issues include low awareness among smallholder farmers about the value of insurance, limited distribution channels in rural and remote areas, and the absence of robust policy frameworks to support the sector’s growth.

Also speaking at the forum, Belay Tulu, Director of the Insurance Supervision Directorate at the National Bank of Ethiopia (NBE), shared updates on regulatory reforms under way to address structural bottlenecks.

“We’re working on a new insurance proclamation that expands our mandate beyond supervision to include market development,” said Belay. “Inclusive insurance is broader than microinsurance. It targets unserved populations beyond just the poor.”

Belay added that a Microinsurance Directive is being also drafted to allow member-based institutions, such as cooperatives and community-based groups, to facilitate insurance delivery.

A key highlight of the event was the official launch of the Ethiopia Rural Finance Service Unit (RFSU) under the Ministry of Agriculture. The RFSU announced in the presence of Girma Amente (PhD), Minister of Agriculture and the State Minister of Agriculture, Sofia Kassa is set to play a central role in coordinating and scaling agricultural insurance efforts nationwide, with support from UNDP, JICA, and other development partners, through funding from the Bill & Melinda Gates Foundation.

“The revised Agricultural and Rural Development Policy places strong emphasis on improving access to financial credit for smallholder farmers,” said Dr. Girma. “The government’s focus on the sector has driven inclusive and climate-resilient economic reforms, boosting both production and productivity.”

Pula and its partner insurers are delivering Area Yield Index Insurance (AYII), a comprehensive coverage solution—through the Input Voucher System (IVS). This model links insurance directly to agricultural input purchases, leveraging the existing IVS infrastructure that reaches up to 7 million farmers, in collaboration with the Agricultural Transformation Institute (ATI).

“Pula has long anticipated the establishment of a platform like the RFSU, recognizing the sector’s need for greater coordination. With the RFSU now in place, we are well-positioned to scale our work nationally—with the potential to serve over 7 million farmers across Ethiopia.” said Dagmawi. He also added “We are confident that the RFSU will leverage key learnings from our program and help create an enabling environment that fosters better outcomes for smallholder farmers through expanded, well-coordinated agricultural insurance efforts.”

Pula operates in 20 countries globally, reaching a total of 20+ million farmers. The company entered Ethiopia in November 2022, following the Ministry of Agriculture’s pledge to work with stakeholders to deliver climate risk solutions for Ethiopian farmers and its delegation of responsibility to the Agricultural Transformation Institute (ATI), efforts began to design and pilot a scalable agricultural insurance model.

Ethiopian Airlines has emerged as the leading player in Africa’s cargo aviation sector, now holding 35 percent of the continent’s market share, according to a new report by the African Finance Corporation (AFC). The airline has significantly expanded its annual cargo capacity, growing from 266,000 tons in 2016 to 715,000 tons by 2023.

The AFC report also highlights persistent gaps in intra-African air transport. In regions such as West Africa, European carriers continue to dominate cargo and passenger traffic. Kenyan Airways and Royal Air Maroc, the next closest competitors, together account for only 25 percent of the cargo market, signaling a sharp contrast in competitiveness.

The report commends Ethiopia and Kenya for using their national airlines to strengthen export trade and urges other African countries to adopt similar strategies. Ethiopian Airlines currently operates 16 dedicated cargo aircraft and serves 60 international destinations, with half located within Africa. The airline plans to expand its cargo fleet to 37 aircraft by the year 2035, reinforcing its long-term commitment to the sector.

In addition, the report praises Ethiopia’s advances in digital infrastructure, particularly in the rapid growth of telecom service users and the increasing adoption of digital technologies. These developments are positioning the country as a leader in Africa’s digital transformation.

Despite such progress, the AFC identifies weak infrastructure as a major constraint to the growth and competitiveness of Africa’s aviation sector. Addressing these limitations is seen as critical to unlocking further potential.

The report also identifies other high-potential sectors across the continent. These include mining, agriculture, logistics, and digital infrastructure. Ethiopia is highlighted as the top wheat producer in sub-Saharan Africa, with wheat cultivation rising from 5,000 hectares in 2018 to 650,000 hectares in 2023.

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The African Development Bank Group and the Federal Government of Nigeria have signed a protocol agreement committing USD500 million over 15 years to extend the Nigeria Trust Fund (NTF), providing long-term business continuity and planning certainty through 2040.

This extension comes after multiple previous renewals, reflecting the enduring value and relevance of Nigeria’s partnership with the African Development Bank.

Dr Akinwunmi Adesina, President of the African Development Bank Group said that the commitment will allow the Bank’s ability to expand hybrid capital instruments, increase securitization, and scale up private sector operations. This move is expected to mobilize more private capital for low-income countries. “Nigeria’s decision today proves that Nigeria is always on the right side. The NTF is the largest we have at the African Development Bank, which is part of the Bank. It helps to co-finance operations in many countries, as well as feasibility studies for some other countries.” he added

The agreement also enables deployment of resources from the fund in innovative treasury, structuring, and other transactions, including balance sheet optimization, structured finance, and catalytic risk-sharing solutions.

The Bank and Nigerian authorities are working on new financial products, updating approval processes, and developing a communications strategy to raise visibility for Nigeria’s contributions.

The Nigeria Trust Fund serves as a fully-fledged financial window of the AfDB. Since its creation, the NTF has financed 92 projects in 33 countries. The Fund has played a crucial role in filling financing gaps in high-impact sectors, particularly in the continent’s least developed countries.

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Ethiopia has secured over 5.1 billion USD in remittances within the first nine months of the 2024/2025 fiscal year, surpassing the total 4.4 billion USD received in the entire previous fiscal year, according to Ambassador Fetsum Arega, Director General of the Ethiopian Diaspora Service.

This remarkable inflow underscores growing trust and engagement from the global Ethiopian diaspora, not only in supporting families but also in exploring emerging investment avenues.

Ambassador Fetsum noted that diaspora interest is expanding beyond traditional remittance channels. Many are now leveraging liberalized investment policies and previously restricted sectors, entering joint ventures with foreign investors and injecting capital directly into the Ethiopian market.

Two major companies have already been established through this model—one facilitated by the UK-based diaspora and another by diaspora members in France. These developments reflect a broader trend of diaspora-fueled partnerships that blend emotional connection with economic ambition.

Source: Ethiopia News Agency

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President Donald Trump has openly dismissed the idea of reviving America’s textile industry, despite the recent tariff policies that shook global trade.

“I’m not looking to make T-shirts, to be honest. I’m not looking to make socks… We are looking to do chips and computers and lots of other things, and tanks and ships,” Trump told reporters on May 25 before boarding Air Force One, as quoted by USA Today.

The remarks, paired with his agreement that the U.S. doesn’t need a “booming textile industry,” were met with sharp criticism from domestic producers. But they have also caught the attention of international observers who see a strategic opening for emerging manufacturing hubs.

Ethiopian-American economist Zemedeneh Nigatu framed Trump’s comments as a potential advantage for Ethiopia, where textile and apparel manufacturing remains a core part of the country’s industrial growth strategy.

“Emerging economies like Ethiopia, which have competitive and comparative advantages, can produce labor-intensive products like clothing at very competitive prices and still deliver high quality to American consumers,” he shared on social media.

With Ethiopia’s industrial growth accelerating from 4.8% in 2022 to 8.4% in 2024, and projections pointing to 12% by the end of the fiscal year, the country is positioning itself as a low-cost, high-capacity producer. Programs like Made in Ethiopia are aligning policy and investment to replace imports and boost exports.

Zemedeneh also called on U.S. entities—including private equity firms and development institutions like USDFC—to co-invest in African manufacturing, a move that could build resilient supply chains and offer American consumers alternatives to Asian production.

Local economists are also calling for structural reforms in Ethiopia’s textile value chain, especially in the use of abundant domestic raw materials like cotton. However, they stress that peace and political stability remain non-negotiable, forming the heartbeat of investment, industrial productivity, and uninterrupted supply chains.

Older Posts

Uganda Tops Ethiopia in Monthly Coffee Exports for First Time

Unilever Becomes First Foreign Firm to Directly Import Finished Goods into Ethiopia

Addis Ababa City Plans Major Budget Expansion to Tackle Infrastructure and Poverty

Africa’s Largest Carrier Expands Indian Reach with New Hyderabad Route

Ethiopia to Host Second Africa Climate Summit in 2025, Championing Nature-Based Solutions

Pula Advisors Eyes 3 Million Ethiopian Farmers Through its Local Insurance Partnerships

Ethiopian Airlines Controls Over One-Third of Africa’s Cargo Market

AfDB Secures USD500 Million from Nigeria to Expand Development Fund Until 2040

Ethiopia Attracts Over USD5 Billion in Remittances in First Nine Months of Fiscal Year

Trump Shrugs Off U.S.Textile Industry: Opening a Lane for Ethiopia?