@AUTradeIndustry – Ethiopian Business Review

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Ethiopia is actively pursuing fresh budgetary support from the African Development Bank Group (AfDB) as part of its participation in the institution’s high-level Annual Meetings currently underway in Abidjan. The Ethiopian delegation, led by State Minister of Finance Semereta Sewasew, is using the platform to engage key bilateral and multilateral partners in a bid to unlock vital financial resources.

On the sidelines of the meetings, the State Minister held substantive discussions with senior officials from major development partners, including Eric Meyer, Deputy Assistant Secretary for Africa at the U.S. Department of the Treasury, and Steven Collet, Deputy Director-General of International Cooperation at the Netherlands’ Ministry of Foreign Affairs. Talks centered on bolstering economic cooperation and expanding strategic partnerships in sectors critical to Ethiopia’s development agenda.

The delegation’s primary mission, however, includes presenting Ethiopia’s request for a new budget support project—a move that underscores the country’s need for external financing to maintain macroeconomic stability and continue development programs amid global shocks and regional fiscal constraints.

The request comes at a time when many African economies, including Ethiopia, are grappling with high debt stress, reduced access to concessional financing, and mounting climate-related vulnerabilities. Ethiopia’s approach reflects a broader trend among African nations seeking adaptive, long-term financial partnerships with institutions like the AfDB to weather ongoing challenges.

As part of the high-stakes gathering, State Minister Semereta is also scheduled to participate in the election of the next AfDB President, set for 29 May 2025. The incoming leader will take charge of the continent’s premier development bank at a time of declining development assistance and heightened global volatility.

Beyond the election, the Ethiopian delegation is expected to join thematic sessions on climate finance, debt sustainability, and resource mobilization, while continuing bilateral consultations with international partners.

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Ethiopia and Hungary have resumed negotiations to finalize an agreement on the avoidance of double taxation—an important fiscal policy tool that could unlock new opportunities for cross-border investment and trade.

Held in Addis Ababa, the second round of talks builds on earlier discussions that took place in Budapest, Hungary, where both sides reached preliminary understandings on most of the core issues.

Representing Ethiopia, Tewedaj Mehammed, Head of the Legal Affairs Department at the Ministry of Finance, emphasized that the agreement would not only eliminate the burden of double taxation but also foster a more predictable and investor-friendly environment. “This agreement will pave the way for enhanced business development and deepen economic cooperation between our two nations,” he noted during the opening session.

From the Hungarian side, Ms. Gyongyi Antal, Head of the Division of International Taxation at Hungary’s Ministry for National Economy, expressed optimism about the ongoing dialogue. “The removal of double taxation barriers creates a conducive environment for companies to thrive and connect. Most technical issues were addressed in the first round, and we are hopeful this session will bring consensus on the remaining points,” she said.

The Ministry of Transport and Logistics, in partnership with Ethio telecom, has officially launched three national digital systems: the Cross-Country Public Transport Service System, the Integrated Fuel Supply System Solution, and the National Traffic Point-Based Penalty Management System.

These comprehensive platforms are designed to significantly enhance Ethiopia’s transport infrastructure, modernise public service delivery, and foster transparency across the fuel and traffic management chains.

The Cross-Country Public Transport Service System introduces a unified digital framework for managing bus ticketing, licensing, compliance, and payments. Travellers can now book and pay for tickets using their mobile phones, in multiple local languages including English, via platforms such as telebirr and other financial institutions. This solution is set to reduce delays, prevent fraud, improve data transparency, and enhance the overall efficiency of public transport nationwide.

The Integrated Fuel Supply System Solution enables fuel stations across the country to accept payments from all banks and wallets, offering real-time data integration for government oversight. By connecting all financial institutions with a central fuel management system, it improves market control, curbs illicit fuel trade, and ensures accountability from distribution to retail. Drivers can now refuel anywhere in Ethiopia using their preferred digital payment method.

The National Traffic Point-Based Penalty Management System digitises the enforcement of traffic laws, replacing outdated manual systems. It facilitates centralised recording of driver data, tracks infractions through a point-based mechanism, and streamlines penalty payments. This modern system is expected to promote safer roads, improve legal compliance, and support policymaking with reliable data. It also reduces the administrative burden on regional transport offices and supports integration via Ethio telecom’s TeleCloud without additional infrastructure investment.

Ethio telecom emphasised that the systems were developed by local private software developers and feature full API integration for interoperability with financial institutions.

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Ethiopia has recorded its highest-ever coffee export revenue, with the sector generating USD 1.868 billion over the past ten months of the current fiscal year — a historic milestone for the nation’s most iconic export.

The Ethiopian Coffee and Tea Authority announced today that 354,302 tonnes of coffee were exported during the period, exceeding the national target by 147% in volume and 142% in revenue. This performance surpasses all previous annual records in the country’s export history.

According to Dr Adugna Debela, Director General of the Authority, the figures represent an increase of 70% in volume and 87% in revenue compared to the same period last fiscal year. The sector exported 145,316.3 more tonnes, generating an additional USD 869.13 million, reflecting both growing global demand and Ethiopia’s enhanced export capacity.

Dr Adugna highlighted that Germany, Saudi Arabia, and the United States ranked as the top three destinations for Ethiopian coffee exports during the reporting period. Germany imported 61,239 tonnes, contributing USD 295 million (17% of total revenue), followed closely by Saudi Arabia with 60,182 tonnes valued at USD 290.7 million (20%), and the United States with 28,299 tonnes accounting for USD 192 million (10%).

“This outstanding achievement is the result of a well-coordinated national effort,” said Dr Adugna. “From farmers and cooperatives to exporters, regional authorities, and federal institutions — all stakeholders played a vital role. We are deeply grateful for their commitment and determination.”

He further expressed optimism that the final two months of the fiscal year will build upon this momentum, reinforcing Ethiopia’s status as a world leader in premium coffee production.

Ethiopia Seeks New Budget Support at AfDB Annual Meetings

Ethiopia, Hungary Move Closer to Double Taxation Accord

Ethiopia Unveils Nationwide Digital Systems to Transform Transport, Fuel and Traffic Management

Ethiopia Breaks Coffee Export Record, Earning USD 1.87 Billion