Ethiopia – Ethiopian Business Review

Ethiopia has officially launched the €6 million ECOTRADE Project, a four-year initiative funded by the European Union (EU) to support the country’s implementation of the African Continental Free Trade Area (AfCFTA).

The high-level launch ceremony took place today in Addis Ababa, with the presence of Ethiopia’s Minister of Trade and Regional Integration, Dr. Kassahun Gofe; EU Ambassador to Ethiopia, Sofie From-Emmesberger; Julien Voituriez, First Advisor at the Embassy of France to Ethiopia; and other senior officials, development partners, and private sector representatives.

ECOTRADE, designed and managed by Expertise France, a subsidiary of Agence Française de Développement and France’s public agency, aims to enhance Ethiopia’s trade policy framework by aligning it with AfCFTA protocols, while also building the capacity of public institutions and empowering the private sector—particularly small and medium-sized enterprises (SMEs) and women-led businesses—to effectively participate in regional markets.

“This initiative speaks directly to our national development aspirations,” said Dr. Kassahun. “It supports Ethiopia’s Homegrown Economic Reform Agenda, complements our national trade policy direction, and is anchored in our broader integration goals under the African Union’s Agenda 2063.”

The project will operate in close coordination with the Ministry of Trade and Regional Integration (MoTRI), the Ethiopian Customs Commission, chambers of commerce, exporters’ associations, and other key public-private actors. Through targeted interventions in policy alignment, trade facilitation, and value chain development, ECOTRADE is expected to improve regional connectivity and foster inclusive economic growth.

Ambassador From-Emmesberger reaffirmed the EU’s commitment to Ethiopia’s development through collaborative and people-centered initiatives.

“At the heart of ECOTRADE lies a bold ambition—to enable Ethiopia to reap the full benefits of AfCFTA,” she said. “This means investing in people: entrepreneurs, women traders, customs officials, and students, all of whom are drivers of transformation.”

The ECOTRADE Project also aligns with broader continental and global development goals, including the EU’s Global Gateway strategy and the UN Sustainable Development Goals. It underscores the growing emphasis on trade-led development as a means to boost competitiveness, reduce poverty, and position Ethiopia as a key player in the emerging single African market.

Ethiopia ratified the AfCFTA agreement in 2019 but has yet to fully liberalize its tariffs or engage in the AfCFTA’s Guided Trade Initiative. The ECOTRADE launch comes at a pivotal moment, as Ethiopia is preparing to validate its comprehensive national AfCFTA implementation strategy later today.

To ensure effective execution, MoTRI has established a dedicated coordination office for trade integration and facilitation. This office will work alongside a national implementation committee and three technical working groups tasked with guiding, overseeing, and ensuring accountability across institutions.

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Ethiopia ranked fifth among African nations importing U.S. goods in 2024, with an import worth of USD 1.016 billion, according to the latest data from the United States Census Bureau.

Ethiopia followed Egypt (USD6.89 billion), South Africa (USD5.8 billion), Morocco (USD5.2 billion), and Nigeria (USD4.1 billion) in total value of imports. It remained one of only six African countries to exceed the USD1 billion mark, ahead of nations such as Algeria and Ghana.

Despite a year-over-year decrease of about USD202.7 million from 2023’s total of USD1.218 billion, Ethiopia’s strong position in the rankings highlights the depth of its commercial ties with the U.S.

While the Census Bureau’s figures do not break down imports by sector, previous trends suggest that Ethiopia’s purchases often include aircraft components, machinery, medical technology, and agricultural equipment goods linked to infrastructure, healthcare, and economic modernization.

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Djibouti has officially turned down Ethiopia’s request to secure special access to the Port of Tadjourah, reaffirming its sovereign control over key strategic infrastructure in the Horn of Africa, as reported by The Eastleigh Voice.

Djibouti’s President Ismaïl Omar Guelleh stated that although Djibouti remains open to economic cooperation and port access discussions, Ethiopia’s latest proposal exceeded all previously considered agreements. According to President Guelleh, Ethiopia requested the establishment of a corridor with extraterritorial rights stretching from the Ethiopian border to Tadjourah, along with a naval base for the Ethiopian navy — a demand Djibouti categorically rejected.

President Guelleh emphasized that Ethiopia already has access to multiple ports in the region without requiring control, naming Djibouti, Berbera (Somaliland), Assab (Eritrea), and Mogadishu (Somalia) as examples. He also acknowledged Turkey’s mediation efforts as having had a positive influence on regional relations.

“We have made it clear to Addis Ababa that Djibouti is not Crimea,” he said, underlining the importance of respecting Djibouti’s sovereignty.

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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.

Older Posts

Ethiopia, EU Launch €6 Million ECOTRADE Project to Accelerate AfCFTA Implementation

Ethiopia Among Top Five African Countries Importing U.S. Goods in 2024

Djibouti Confirms Ethiopia’s Tadjourah Port Request Is Off the Table

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