@EICethiopia – Ethiopian Business Review

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The world’s third-largest automaker, China’s Guangzhou Automobile Group (GAC Group), has entered talks with Ethiopian authorities about the feasibility of producing EVs in the country.

During a high-level meeting held in Addis Ababa, GAC Group Chairman Feng Xingya and his delegation held discussions with Ethiopia’s Minister of Transport and Logistics, Alemu Sime (PhD). The two parties explored potential collaboration areas in green automotive manufacturing and technological investment, signaling the beginning of what could be a game-changing industrial partnership.

The discussion aligns with Ethiopia’s growing ambition to position itself as a hub for electric mobility in Africa. The government has already banned the import of fossil-fueled vehicles, allowing only electric cars into the country—a bold policy shift that opens doors for large-scale manufacturing and assembly.

The government’s commitment goes beyond regulation. Speaking at a recent launch event, the State Minister of Transport and Logistics, Bareo Hassen, announced that Ethiopia will offer comprehensive support to EV suppliers and investors. This includes facilitating land access, customs clearance, and building nationwide EV charging infrastructure.

Huajian Industry, which has previously invested in Ethiopia’s manufacturing sector, has launched a program to introduce a new EV model. The program is expected to enable the company to supply products to GAC Group, further signaling potential collaboration within the sector.

Speaking at the event, Bareo noted that the arrival of such companies enhances trade relations between Ethiopia and China. He emphasized that the government would continue supporting the growth of the electric vehicle sector, including expanding the construction of EV charging stations across the country.

“Products introduced to the market are suitable for our climate,” said the Minister, underlining the importance of aligning innovation with local needs.

Ethiopia is also rolling out large-scale infrastructure to support the growing EV population. Charging stations are under construction across major highways and cities, laying the groundwork for a modern, sustainable transport system.

Addis Ababa has launched 100 electric buses, marking a major milestone in the city’s push for sustainable urban mobility. This initiative is part of Ethiopia’s broader efforts to modernize public transport, reduce carbon emissions, and decrease reliance on fossil fuels.

Unveiled by the Addis Ababa City Administration, the electric buses are designed to provide a more efficient, comfortable, and environmentally friendly alternative to traditional transport. Equipped with cutting-edge service features—including a prepaid card system for seamless payments—the buses are set to redefine urban commuting in Ethiopia’s capital.

The fleet will be deployed across various routes, enhancing accessibility and reducing reliance on fossil fuels. The initiative aligns with Ethiopia’s broader efforts to promote green energy solutions and ease the city’s notorious congestion.

The launch ceremony was attended by key government figures, including Addis Ababa City Mayor Adanech Abebe and Minister of Transport and Logistics Alemu Sime (PhD), along with other senior federal and city officials.

The Ethiopian government has implemented various measures to support the transition to electric mobility. In April 2024, the Transport and Logistics Ministry introduced over 30 electric buses in Addis Ababa, emphasizing passenger comfort and environmental responsibility. Additionally, plans were announced to procure 100 electric city buses, further underscoring the commitment to building a green economy.

The government has also initiated the construction of public charging stations and is exploring local manufacturing of EV batteries to reduce import reliance. However, challenges remain, including limited charging infrastructure and the need for skilled mechanics to service electric vehicles.

Ethiopia’s livestock and fisheries sector has made remarkable strides in recent years, with the National Livestock Development Program driving significant improvements. Among the most notable achievements, the country’s egg production has surged from 3.2 billion to 9.1 billion in just four years, demonstrating the effectiveness of targeted agricultural policies, as reported by Ministry of Agriculture.

The program, officially launched on November 03, 2022, by Prime Minister Abiy Ahmed (PhD) in Arba Minch, aims to ensure food security, enhance domestic livestock production, reduce imports, and boost foreign exchange earnings. Minister of Agriculture Girma Amente (PhD) highlighted these achievements during the inauguration of the National Multi-Purpose Dairy Development Training Center in Holeta, a facility backed by the World Bank to train 20,000 dairy technicians and expand farmer support services.

The rapid increase in egg production is part of broader sectoral growth. Cow milk production has risen from 5.8 billion to 10.3 billion liters, chicken meat production has expanded from 90,000 to 240,000 tons, and honey output has nearly doubled to 296,000 tons. The success of these initiatives has prompted a reassessment of future targets to sustain momentum.

A major driver behind this growth is Ethiopia’s expanding artificial insemination capacity, which has jumped from 500,000 to 3 million procedures in just two years, resulting in 1.7 million improved calves born in the last eight months alone. Additionally, eight new Liquid Nitrogen Centers are being established to ensure a stable supply for breeding programs.

The poultry sector has also seen significant advancements. Initially, Ethiopia distributed only 26 million one-day-old chicks annually. Following government intervention, this figure rose to 41 million, and with the establishment of the Grand Parent Stock Center by MIDROC Investment Group and the Ministry of Agriculture, the country now has the capacity to produce 100 million chicks per year. So far, 85 million chicks have been distributed in the past eight months, with plans to reach 150 million by year-end.

Other key developments include the introduction of 1,994 modern beehives and a shift toward fish farming in artificial ponds. Previously reliant on lakes and rivers, farmers now raise fish in controlled environments, with 7.6 million fish fingerlings distributed in just eight months.

The Ministry of Agriculture is prioritizing knowledge-driven development to sustain these gains. The Holeta-based training center will not only equip technicians but also empower model farmers and pastoralists, ensuring long-term growth in the sector. Research institutions and animal development centers are also being urged to collaborate with local communities to maximize impact.

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.

Ethiopia’s Ministry of Innovation and Technology is under intense scrutiny after a parliamentary committee uncovered a budget deficit exceeding half a billion birr (USD 9 million), alongside allegations of financial mismanagement and procedural violations.

The House of People’s Representatives’ Standing Committee on Public Expenditure Management and Control Affairs flagged multiple irregularities, including the misuse of public funds, failure to conduct pre-feasibility studies for key projects, and unauthorized budget reallocations. According to Chairperson Yeshimebet Demise (PhD), several government-funded and donor-financed initiatives were launched without proper consultation, leading to significant inefficiencies and unclear project statuses.

The audit findings revealed that multiple projects suffered from delayed execution and financial mismanagement, with some being terminated prematurely and their budgets reassigned without legal oversight. The committee has instructed the ministry to provide a detailed report on unauthorized expenditures—including transportation rentals, data center construction, and inflated employee salaries—within 15 days.

Concerns were also raised over the ministry’s human resource management, with recruitment processes failing to align with legal frameworks. Officials stressed the urgent need for systematic hiring reforms and the recovery of high-value government assets still unreturned by former employees.

Federal Auditor General Meseret Damte criticized the ministry for its failure to take corrective measures, stating that funds were allocated to projects that remain incomplete. The audit further exposed weaknesses in human resource and asset management, along with payments made outside legal provisions. The Federal Anti-Corruption Commission has been called upon to enforce accountability measures and oversee financial discipline within the institution.

Responding to the scrutiny, Minister of Innovation and Technology Belete Molla (PhD) admitted that audit deficiencies had occurred due to the complex nature of the ministry’s operations. He pledged to implement an action plan to address the financial and operational gaps, with updates to be presented to the standing committee.

He also highlighted that the ministry is engaged in numerous projects under the Digital Ethiopia 2025 initiative, in collaboration with the World Bank and other international partners. The minister assured that steps would be taken to rectify the shortcomings and enhance transparency in project execution.

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.

Global Auto Giant GAC Eyes Ethiopia for EV Manufacturing as Government Boosts Sector Support

Addis Ababa Rolls Out 100 Electric Buses

National Livestock Program Boosts Egg Production from 3.2 Billion to 9.1 Billion

CBE and MasterCard Launch International Prepaid Cards

Ethiopian Innovation Ministry Under Fire for USD9 Million Budget Deficit and Unauthorized Spending

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