Ethiopia – Ethiopian Business Review

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In a strategic partnership aimed at enhancing Ethiopia’s international voice infrastructure, Ethio telecom has selected Bankai Group, a renowned international telecom solutions provider, as its preferred international voice termination partner. The partnership becomes effective on June 1, 2025.

According to The Fast Mode, the agreement is designed to improve voice quality, ensure regulatory compliance, and protect the integrity of international voice traffic. Ethio telecom and Bankai Group plan to collaborate in delivering high-performance and fraud-resistant voice services across major global corridors.

This marks a significant step in Ethio telecom’s efforts to strengthen Ethiopia’s role in the international telecom ecosystem, with a focus on supporting the country’s broader digital transformation agenda.

The agreement, however, excludes international voice traffic originating from Saudi Arabia, the UAE, Sudan, Jordan, Somalia, and Djibouti, which remain outside the scope of this partnership.

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The House of People’s Representatives has reviewed two landmark draft proclamations—one proposing payments for ecosystem services and the other reforming agricultural extension systems. These initiatives could reshape how natural resources and farming support systems function in Ethiopia.

During its 32nd regular session, the House referred both draft proclamations to their respective standing committees for in-depth review and stakeholder consultation, following their unanimous endorsement by the Council of Ministers in its 45th regular meeting earlier this week.

The draft proclamation on ecosystem services fees, presented by Chief Government Whip, Tesfaye Beljige (PhD), highlights Ethiopia’s untapped ecological capital and the urgent need to protect it. Stressing that Ethiopia’s diverse ecosystems are under mounting pressure due to unsustainable practices, he noted the proposal aims to create a legal structure that allows federal and regional governments, NGOs, and the private sector to contribute to and benefit from ecosystem service payments.

The draft law on multi-stakeholder agricultural extension services, also presented by Tesfaye, seeks to overhaul Ethiopia’s decades-old, government-only approach. The reform would open the door for private actors, NGOs, cooperatives, and professional associations to deliver agricultural support services. The goal is to improve quality, accessibility, and efficiency—backed by digital tools and accountability mechanisms.

These legislative proposals follow the Council of Ministers’ 45th regular session, held earlier this week, which approved both drafts and forwarded them to the House. The Council emphasized the growing demand for resilient agricultural systems and sustainable resource management, endorsing the proposed frameworks as essential for long-term development.

The ecosystem services proclamation (No. 18/2017) has been assigned to the Standing Committee on Water, Irrigation, Lowland Areas, and Environmental Development—working in collaboration with the Standing Committee on Planning, Budget, and Finance. The agricultural extension proclamation (No. 19/2017) has been forwarded to the Standing Committee on Agricultural Affairs.

If passed into law, the bills could introduce new financing models for conservation, boost farmer productivity, and diversify participation in key sectors of the economy.

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Ethiopia has officially launched a new vehicle license plate system, introducing a uniform design for all vehicles registered within the country. The reform, outlined in the Types of Vehicles Identification Number Plate and Symbols Determination and Service Delivery Directive No. 1050/2025, has been implemented by the Ministry of Transport and Logistics. It mandates that all vehicle plates will now feature the national identifier “ETH”, alongside the map of Ethiopia, inscriptions in both Ge’ez and Latin scripts, and advanced technological features.

The key aim of the reform is to standardise vehicle registration plates across the country, replacing the region-specific number plates previously used. This change comes in response to the operational inefficiencies, resource wastage, and fraud associated with the old system. According to the directive, the new plates will bring Ethiopia into line with international agreements and help curb forgery and corruption linked to vehicle registrations.

The directive further mandates that all newly registered vehicles and those already on the road must return their old plates and obtain the new ones. The ministry has outlined a scheduled timeline for this transition.

In line with the global trend for standardisation, all vehicle plates in Ethiopia will now include a map of the country, the national symbol “ETH” in Latin, and the corresponding Ge’ez characters “ኢት” — marking a significant step in aligning with international conventions. The plates will also feature a consecutive number format with three Latin letters and four digits, although under exceptional circumstances, motorcycles may use three digits.

Additionally, vehicles powered by electric or renewable energy will be distinctly marked with the phrase “Green Transport” to highlight their environmentally friendly credentials. Each plate will also contain specific markings to indicate the type of fuel used and the service provided by the vehicle, ensuring a more transparent system for tracking and regulation.

The directive introduces a system that includes coding features for better control, registration, and monitoring. This coding system aims to modernise the manufacturing, distribution, and disposal of vehicle plates, with a strong emphasis on using high-quality materials to avoid waste and misuse of public funds.

Importantly, the reform not only applies to future registrations but also to previously registered vehicles. These vehicles will be required to return their old number plates and replace them with the new design as part of the nationwide rollout of the directive.

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Members of the Standing Committee on Agricultural Affairs of Ethiopia’s House of People’s Representatives have praised Daye Bensa Coffee and Tasty Specialty Coffee PLC for their innovative approach to modernising coffee production during a recent tour of their operations in Addis Ababa.

Committee Chairman, Solomon Lale, commended the two companies for their use of advanced technologies in processing, highlighting the high standards of quality and efficiency they have set. “Daye Bensa and Test Specialty Coffee are leading by example in Ethiopia’s coffee export industry. Their technological advancements and commitment to quality are crucial in elevating the sector,” he remarked.

The MPs noted the positive impact of the Ethiopian Coffee and Tea Authority’s reforms over the past four years, which have helped address long-standing challenges in the coffee sector, especially in quality assurance and stakeholder collaboration. As a result, Ethiopia has seen a noticeable increase in revenue from coffee exports.

During the visit, both companies acknowledged the support provided by the Ethiopian Coffee and Tea Authority but also raised concerns about operational challenges, including power shortages, limited space, and transport access. The MPs assured the companies that these issues would be raised with relevant government bodies for resolution.

Dr Adugna Debela, Director General of the Ethiopian Coffee and Tea Authority, reaffirmed that the Authority’s reform efforts will continue to be consolidated. As part of this, the Authority’s office is undergoing a complete renovation to create a more modern working environment. Additionally, a new helpline will be launched next week to provide vital information to actors throughout the coffee value chain.

Chief Advisor Dr Shafi Umer also presented the Authority’s nine-month performance report, revealing that Ethiopia has earned an unprecedented USD1.5 billion in coffee export revenue this year, further underlining the success of the ongoing reforms.

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A tripartite Memorandum of Understanding (MoU) has been signed between the Ministry of Transport and Logistics, EthioTelecom, and regional and city administrations to establish a unified, nationwide traffic fine system.

According to the Ministry of Transport, the initiative seeks to create a consistent and transparent framework for managing traffic violations across the country. The new system is expected to significantly bolster law enforcement capabilities and enhance regulatory efficiency by streamlining interactions between authorities and motorists.

The agreement also marks a pivotal step towards digitising the traffic fine process—transitioning from a fragmented, manual approach to a centralised digital platform. This transformation is anticipated to improve operational accuracy, ensure greater transparency, and accelerate the enforcement process.

Cooperative Bank of Oromia took center stage at this week’s United Nations Global Compact conference in Kampala, representing the country at the 11th Africa Regional Forum on Sustainable Development. The bank participated in high-level discussions on accelerating progress toward the Sustainable Development Goals (SDGs) across the continent.

During the SDG Activation Day sessions, Coopbank executives detailed the institution’s pioneering work in sustainable finance before an audience of policymakers, development experts and business leaders from across Africa. The bank highlighted its innovative approaches to financial inclusion, digital transformation and climate-smart banking that are delivering measurable impacts in Ethiopian communities.

The forum provided a platform for Coopbank to demonstrate how commercial banks can drive progress on critical development priorities while maintaining financial viability. The bank shared case studies of its gender-focused lending programs, digital financial services expansion into rural areas, and green financing initiatives supporting climate adaptation.

The bank’s ability to align its core operations with SDG targets has emerged as a potential model for other African financial institutions seeking to balance profit and purpose.

The strong reception to Coopbank’s participation signals growing recognition of Ethiopia’s leadership in developing homegrown solutions to Africa’s sustainable development challenges. The bank’s presentation particularly resonated with delegates from countries facing similar financial inclusion and climate resilience hurdles. The bank’s appearance at this high-profile continental event marks an important milestone in Ethiopia’s financial sector gaining influence in pan-African policy discussions.

The forum outcomes are expected to shape regional cooperation on sustainable finance initiatives in the coming year, with Ethiopian institutions like Coopbank positioned to play an increasingly prominent role.

A high-level Ethiopian delegation is participating in the 150th Inter-Parliamentary Union (IPU) Assembly in Tashkent, Uzbekistan, this week. The group, led by House of Federation Speaker Agegnehu Teshager, represents Ethiopia at one of the world’s largest gatherings of parliamentarians.

Addressing the international forum, Speaker Agegnehu delivered Ethiopia’s national statement, reiterating the country’s commitment to multilateral cooperation through the IPU framework. He emphasized Ethiopia’s support for international efforts to achieve the United Nations Sustainable Development Goals (SDGs) by 2030.

The speaker outlined Ethiopia’s domestic development priorities, noting their alignment with both the UN’s SDGs and the African Union’s Agenda 2063. He referenced Ethiopia’s ongoing national development plan as evidence of this coordinated approach.

In his remarks, Agegnehu highlighted Ethiopia’s environmental initiatives, specifically mentioning the country’s large-scale tree planting program. He presented this as part of Ethiopia’s contribution to global climate change mitigation efforts.

The IPU assembly, which brings together legislators from 178 member states, serves as a platform for parliamentary diplomacy and international cooperation. Ethiopia’s participation underscores its continued engagement with global governance institutions.

The Ethiopian delegation is expected to hold bilateral meetings with other national delegations during the week-long conference. These discussions will focus on strengthening inter-parliamentary relations and sharing legislative best practices.

The Oromia Regional Government has taken a significant step toward modernizing agriculture with the official handover of 1,402 tractors to local farmers and agricultural organizations. The distribution ceremony, held today in Shashemene, marks one of the region’s largest single deployments of farming equipment to date.

Regional President Shimelis Abdisa presided over the event alongside other senior government officials. The tractors were allocated to a mix of individual farmers, cooperatives, and unions that had previously gone through a formal application and registration process with regional authorities.

This initiative represents a concrete effort by the Oromia administration to advance its agricultural mechanization program. By providing modern farming equipment directly to beneficiaries, the regional government aims to transform traditional farming practices across Ethiopia’s most populous region.

The Shashemene distribution follows established protocols, with all recipients having met official eligibility requirements. While the ceremony focused on the current handover, observers note this likely signals the beginning of broader mechanization efforts across Oromia’s agricultural zones.

This tractor distribution aligns with Ethiopia’s national priorities for agricultural development and food security. As the country’s primary crop-producing region, Oromia’s farming modernization efforts could have significant implications for both local livelihoods and national agricultural output.

The handover ceremony concluded with demonstrations of the new equipment, though operational challenges and training needs may emerge as farmers begin implementing the machinery in their fields. Government monitoring of the program’s implementation and impact is expected in the coming agricultural seasons.

Ethiopia and the European Union (EU) today signed a major €240 Million (USD266.7 million) grant agreement under the 2024 Annual Action Programme (AAP-2024), reinforcing their five-decade-long strategic partnership. The agreement, inked at the Ministry of Finance, targets critical development areas, including agribusiness expansion, digital skills training, post-conflict recovery, and governance reforms.

The funding will support agribusiness initiatives to enhance productivity and create jobs for smallholder farmers, while also strengthening digital skills within Technical and Vocational Education and Training (TVET) institutions to drive economic growth. Additionally, the program will bolster democratic institutions, restore basic health services in conflict-affected regions, and provide psychosocial support for survivors of gender-based violence. Another key focus is improving economic opportunities for displaced populations through integrated solutions and boosting private sector engagement in vital value chains.

Finance Minister Ahmed Shide hailed the EU’s support as pivotal in addressing Ethiopia’s pressing challenges. “This financing package is crucial for stimulating private sector investment, modernizing our tax and customs systems, and enhancing services in agribusiness, health, and education,” he said. “It reinforces our longstanding partnership and contributes significantly to our ongoing reforms.”

The minister also stressed the importance of regional integration under the EU’s Global Gateway Initiative, highlighting the Horn of Africa’s untapped potential for economic cooperation. “As we navigate evolving economic landscapes, our focus on regional cooperation is more critical than ever,” he noted, referencing collaborative frameworks like the Horn of Africa Initiative (HOAI).

EU Ambassador to Ethiopia, Sofie From-Emmesberger, underscored the agreement’s broader significance, stating, “The AAP 2024 reflects our collective commitment to advancing sustainable development in Ethiopia. This is not just a financial agreement; it is a manifestation of our shared values and goals for a prosperous future.”

Ethiopia has reached a major milestone in its import substitution strategy, producing goods worth USD2.7 billion in the first eight months of the current fiscal year, according to the Ministry of Industry.

State Industry Minister Tarekgne Bululta, speaking to the state-run Ethiopian News Agency, highlighted the remarkable growth in domestic production. Just four years ago, the value of import-substituted goods stood at USD 345 million. This figure surged to USD2.9 billion three years ago and reached USD2.8 billion in the last fiscal year, reflecting a sustained upward trend.

In the first eight months of 2024/2025 alone, Ethiopia has already recorded USD2.7 billion in import substitution, underscoring the momentum of this economic policy. The government is now working closely with stakeholders to push this figure to USD3.9 billion by the end of the fiscal year.

The market share of locally produced substitute goods has also expanded significantly, now surpassing 43%. This indicates growing consumer confidence in Ethiopian-made products and increasing competitiveness in the national market.

Tarekgne attributed this success to the government’s strategic focus on reducing reliance on foreign imports and strengthening domestic production. The initiative not only aims to alleviate foreign currency shortages but also seeks to create substantial job opportunities and improve access to affordable goods.

As part of this strategy, the Ministry of Industry has identified 96 key products for domestic substitution, ensuring a structured and targeted approach to import reduction.

Older Posts

Ethio Telecom Partners with Bankai Group to Boost Voice Quality

House Reviews Landmark Bills to Monetize Ecosystems and Modernize Agriculture

Ethiopia Unveils New Vehicle Plates Featuring Ge’ez and “ETH” Symbol

MPs Laud Daye Bensa and Tasty Specialty Coffee for Modernising Coffee Production

Government Moves to Standardise Traffic Fines with Nationwide Digital System

Coop Bank Champions Sustainable Finance at UN Africa Forum

Ethiopian Delegation Advocates Multilateral Cooperation at 150th IPU Conference

Oromia Region Distributes Over 1,400 Tractors to Boost Farm Mechanization

Ethiopia Secures USD266.7M EU Funding for Agribusiness & Digital Skills

Ethiopia Nears USD3 Billion in Import Substitution