@ECA_OFFICIAL – Page 2 – Ethiopian Business Review

White-Minimalist-Economics-Headline-News-Instagram-Post-2025-05-06T092042.748.png

The Trump administration is proposing to eliminate its USD 555 million commitment to the African Development Bank’s (AfDB) primary development fund, a move that could significantly disrupt development financing for Africa’s low-income countries. According to Black Star News, the proposal—submitted to the U.S. Congress—suggests that Washington will halt all contributions to the fund starting next year, arguing that the fund is “not currently aligned” with the administration’s priorities.

This sudden shift not only threatens the AfDB’s resource planning but may also trigger a fundamental recalibration of the bank’s development strategies. The AfDB is nearing the end of its current USD 8.9 billion funding cycle and was aiming for a major USD 25 billion replenishment. The U.S., a key player since 1976 and the bank’s second-largest shareholder, has been instrumental in sustaining the fund. While other donor countries have also reduced contributions, the scale of the proposed U.S. cut is unprecedented.

The decision comes at a pivotal time for the bank, with leadership elections scheduled for later this month. The incoming president will now face the daunting task of navigating a funding shortfall and rebuilding donor confidence amid growing development demands across the continent.

White-Minimalist-Economics-Headline-News-Instagram-Post-2025-05-05T192134.763.png

The International Finance Corporation (IFC), a member of the World Bank Group and the largest global development institution focused on the private sector in emerging markets, has appointed Ethiopis Tafara as its Vice President for Africa.

In this leadership role, Ethiopis will oversee IFC’s strategic investment and advisory operations across Africa. He will lead a team of nearly 800 staff members and manage a growing portfolio currently valued at USD17 billion, aimed at boosting job creation and accelerating private sector development in key sectors including infrastructure, agriculture, manufacturing, finance, and telecommunications.

A U.S. national of Ethiopian origin, Ethiopis brings extensive experience from previous senior roles within the World Bank Group. Most recently, he served as Vice President, Chief Risk, Legal & Sustainability Officer for the Multilateral Investment Guarantee Agency (MIGA). He also previously held the position of Vice President and General Counsel at IFC.

“Africa is an increasingly important voice on the global stage,” said Ethiopis. “Though challenges persist, the opportunities are even greater. The continent’s private sector and entrepreneurs are more dynamic than ever before.”

Born in Ethiopia and raised between Ethiopia and Italy, Ethiopis is fluent in Amharic, French, Italian, Spanish, and English. He holds a Juris Doctor (JD) from Georgetown University Law Center and an AB degree from Princeton University. His expertise spans capital markets, corporate law, governance, compliance, and risk management.

Welcoming the appointment, Makhtar Diop, Managing Director of IFC, stated:

“I am thrilled to welcome Ethiopis to this role. His deep and long-standing commitment to Africa’s development and his unique skillset are well-suited to support the continent’s development pathways.”

Ethiopis will be based in Nairobi, Kenya, and succeeds Sérgio Pimenta, who recently retired after nearly three decades of service at IFC.

In the 2024 fiscal year alone, IFC delivered record investment levels across 45 countries in Africa, including 30 classified as low-income or fragile and conflict-affected situations (FCS).

White-Minimalist-Economics-Headline-News-Instagram-Post-2025-04-29T125248.305.png

The European Investment Bank (EIB) is considering financing Ethiopia’s planned new international airport, a move that signals deepening engagement in the country’s infrastructure ambitions. The announcement followed a high-level meeting between Ethiopia’s Finance Minister Ahmed Shide and EIB Vice President Ambroise Fayolle, where both sides reaffirmed their commitment to intensify development and investment cooperation.

During the discussion, Minister Ahmed Shide expressed appreciation for the EIB’s sustained backing of Ethiopia’s priority areas, particularly SME financing, water and sanitation, and women’s entrepreneurship development. These sectors are widely seen as pivotal to the country’s economic and social transformation.

Fayolle reaffirmed the Bank’s commitment to supporting Ethiopia’s long-term development goals, noting that EIB is now exploring options to contribute to the financing of the planned international airport, which is expected to serve as a major logistics and investment hub for the Horn of Africa.

Both parties agreed to deepen their collaboration, with additional sectoral discussions expected during the upcoming visit of senior EIB officials to Ethiopia.

White-Minimalist-Economics-Headline-News-Instagram-Post-2025-04-29T105628.147-1.png

The International Monetary Fund has lowered sub-Saharan Africa’s economic growth projection for 2026 to 4.2%, down from its October forecast, citing mounting global policy uncertainty and tightening external conditions. Abebe Aemro Selassie, Director of the IMF’s African Department announced following the release of the IMF’s Regional Economic Outlook for Sub-Saharan Africa, April 2025.

“This fragile recovery now faces a new test,” said Abebe. “Just when policy efforts began to bear fruit, the region’s growth trajectory was overtaken by a sudden realignment of global priorities.”

According to him, growth is expected to ease to 3.8% in 2025 before edging up to 4.2% in 2026—both figures revised downward due to external shocks including weakening demand from advanced economies, softer commodity prices, and tighter international financial markets.

Abebe warned that if global financial conditions tighten further or trade tensions worsen, sub-Saharan African economies could see reduced investment, higher borrowing costs, and deeper fiscal strain.

He also flags a likely decline in Official Development Assistance to the region, further straining vulnerable populations already facing elevated inflation and limited fiscal buffers. “High debt levels continue to constrain many countries’ ability to fund essential services and development priorities,” Abebe added.

To navigate these headwinds, he said that the IMF is urging countries to focus on resilience-building policies—strengthening domestic revenue mobilization, improving public spending efficiency, and reinforcing fiscal frameworks to manage debt sustainably. The Fund also recommends governance reforms, regional trade integration, and private sector development as central to creating jobs and sustaining long-term growth.

“A prosperous and stable sub-Saharan Africa is not only critical for the continent—it is a strategic pillar for global prosperity in the decades ahead,” Abebe said, highlighting Africa’s demographic advantage as a future driver of global labor supply and consumption demand.

Since 2020, the IMF has disbursed more than USD65 billion to countries in the region, including over USD8 billion in 2024. Alongside financial support, the Fund continues to provide technical assistance and policy guidance as countries grapple with internal vulnerabilities and global disruptions.

White-Minimalist-Economics-Headline-News-Instagram-Post-2025-04-12T091559.179.png

The Ethiopian Ministry of Agriculture has announced sweeping progress in its nationwide soil and water conservation efforts, with more than 21,000 streams rehabilitated and over 3.7 million hectares of land physically developed as part of a broader strategy to combat climate change and bolster agricultural productivity.

The initiative, which has been underway since the start of the fiscal year, is part of a larger plan to develop 4.6 million hectares through integrated watershed management and sustainable land use practices. The campaign, spearheaded under the slogan “Our Soil Resources for Our Prosperity,” has mobilized millions of Ethiopians in a coordinated push toward environmental resilience and food security.

Speaking at a high-level seminar evaluating this year’s progress, Professor Eyasu Elias, State Minister of Natural Resources Development, emphasized that the program is critical in mitigating the effects of climate change while laying the foundation for a production-led green economy.

“Our integrated watershed development works are being carried out across all regions, engaging communities to protect and restore land while enhancing agricultural productivity,” he stated. “This is not just about conservation—it’s about transforming livelihoods and ensuring sustainable growth.”

The campaign has seen unprecedented public participation, with over 19.9 million citizens contributing 30 to 60 days of labor per year in soil terracing, afforestation, and gully rehabilitation. According to Chief Executive of the Natural Resources at the Ministry of Agriculture, Fanose Mekonnen, the collective effort represents an estimated ETB 16 billion in mobilized manpower, showcasing the scale of Ethiopia’s community-driven development model.

In addition to new developments, the ministry has prioritized renovating and upgrading past conservation projects, rehabilitating an additional 589,000 hectares of previously degraded land. Efforts also include monitoring tree nurseries, identifying new afforestation sites, and preparing millions of planting pits to ensure long-term ecological benefits.

The Ethiopia Securities Exchange (ESX) has announced that Ethiopia’s interbank money market (IMM) has surpassed ETB 500 billion in total transaction volume within just six months of operation, marking a significant milestone in the country’s financial sector.

Launched in October 2024 by the National Bank of Ethiopia (NBE), the IMM was established to facilitate short-term borrowing and lending among banks, enhancing liquidity management and improving financial market efficiency. Governed by the Interbank Money Market Rules, the platform has rapidly gained traction, reflecting growing investor confidence and increasing market activity.

The milestone underscores the evolving landscape of Ethiopia’s banking sector, where structured platforms like the IMM are strengthening market transparency and fostering economic stability. As momentum builds, this achievement highlights the potential for further financial sector reforms, deeper investor participation, and a more resilient financial ecosystem in Ethiopia.

The Commercial Bank of Ethiopia (CBE), in collaboration with global payment leader MasterCard, has introduced both plastic and virtual international prepaid cards, a move set to enhance digital payment accessibility in Ethiopia.

The launch, officiated by CBE President Abe Sano and MasterCard Africa President Mark Elliott, marks a major step toward modernizing Ethiopia’s financial ecosystem. These prepaid cards will enable users to conduct international transactions with greater convenience, supporting online purchases, travel expenses, and cross-border payments.

CBE officials emphasized that the initiative aligns with the bank’s ongoing efforts to expand digital financial services and provide customers with secure, flexible, and globally accepted payment solutions. The virtual card, in particular, is expected to cater to the rising demand for secure online transactions, while the plastic version offers a physical alternative for international spending.

In a groundbreaking move set to transform Ethiopia’s digital financial ecosystem, Ethio Telecom and MasterCard Africa are exploring a strategic collaboration to introduce cutting-edge digital financial services.

A high-level delegation, led by Ethio Telecom CEO Frehiwot Tamiru and MasterCard Africa President Mark Elliott, engaged in discussions to leverage their respective platforms—Telebirr and MasterCard—to expand financial access, accelerate digital payments, and drive sustainable economic growth.

CEO Frehiwot Tamiru emphasized Ethio Telecom’s strong market position, highlighting its vast customer base and robust infrastructure as key enablers in unlocking new digital opportunities. “Our partnership with MasterCard is driven by a shared vision to revolutionize Ethiopia’s financial sector and empower millions through innovative digital solutions,” she stated.

Echoing this sentiment, Mark Elliott, Division President, Mastercard Africa underscored MasterCard’s commitment to the Ethiopian market, citing Ethio Telecom’s rapid growth and infrastructure capabilities as a solid foundation for success. “This collaboration aligns with our mission to drive financial inclusion and create a more connected and competitive digital economy,” he said.

Newer Posts

U.S. Plans to Withdraw USD555 Million From AfDB Fund

IFC Appoints Ethiopis Tafara as Vice President for Africa

European Investment Bank Eyes Support for Ethiopia’s New International Airport

IMF Cuts 2026 Growth Forecast for Sub-Saharan Africa to 4.2%

Ethiopia Reclaims 3.7 Million Hectares Through Nationwide Soil and Water Campaign

Ethiopia’s Interbank Money Market Surpasses ETB 500 Billion in Transactions

CBE and MasterCard Launch International Prepaid Cards

Telebirr and MasterCard Platforms to Power Ethiopia’s Digital Finance Expansion