Ethiopia – Page 2 – Ethiopian Business Review

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.

Ethiopia and France have solidified their ongoing economic partnership with the signing of a significant financial agreement aimed at advancing Ethiopia’s reform agenda. The agreement, concluded between Ethiopia’s Ministry of Finance and Agence Française de Développement (AFD), signals a critical step in supporting Ethiopia’s economic transformation through both budgetary and technical assistance.

The deal includes a USD27 million budget support package, with USD11.34 million already disbursed in December 2024, alongside a USD4.07 million grant for technical assistance. On December 21, 2024, Ethiopian Finance Minister H.E. Ahmed Shide and AFD CEO Rémy Rioux finalized the budget support agreement, while today’s technical assistance agreement was signed by State Minister of Finance H.E. Dr. Eyob Tekalign and AFD Country Director Mr. Louis-Antoine Souchet.

This agreement focuses on strengthening Ethiopia’s Homegrown Economic Reform (HGER) 2.0 through strategic reforms in key sectors. The technical assistance will be managed by the Ministry of Finance and the National Bank of Ethiopia, with a strong emphasis on financial sector reforms, restructuring State-Owned Enterprises (SOEs), refining Public-Private Partnership (PPP) regulatory frameworks, and implementing sectoral reforms across multiple agencies.

State Minister of Finance Dr. Eyob Tekalign expressed that this partnership represents a significant milestone in Ethiopia’s reform journey. He explained that while the budgetary support will provide vital fiscal space, the technical assistance would play a pivotal role in enhancing the country’s Public-Private Partnerships, improving governance within SOEs, increasing financial sector competitiveness, and strengthening institutional capacity for effective policy execution.

Dr. Eyob further acknowledged AFD’s ongoing support, highlighting the flexibility of the technical assistance program, which accommodates multiple partners and ensures value for money.

In a similar vein, Mr. Louis-Antoine Souchet, AFD’s Country Director, reaffirmed his institution’s commitment to Ethiopia’s reform agenda. He emphasized that this collaboration was a reflection of France’s sustained investment in Ethiopia’s economic sustainability and public sector efficiency. AFD, he added, would continue to foster peer-to-peer exchanges and knowledge-sharing between French and Ethiopian institutions, ensuring successful reform implementation and long-term economic resilience.

Addis Ababa faces significant food waste challenges as its food supply heavily relies on produce from rural Ethiopia and imported industrial foods. A substantial portion of food is lost or spoiled during transportation, exacerbating food insecurity in the capital.

“We can imagine how many people we could feed if we prevented this level of food loss,” said Dr. Endale Amare, Senior Researcher and Head of Food and Nutrition Sciences at the Ethiopian Public Health Institute (EPHI). “Addressing this issue requires efficient technology and innovative solutions, which we will explore in this high-level discussion.”

Beyond supply chain inefficiencies, household food waste is also a growing concern due to limited awareness. Additionally, concerns over agricultural productivity and the health risks associated with industrial foods remain key issues.

These challenges were highlighted at the launch of the EcoFoodSystems Workshops, a collaborative initiative aimed at tackling malnutrition in Addis Ababa’s food system. Led by Galway University in partnership with EPHI, the project is funded by the European Union (EU) and the International Fund for Agricultural Development (IFAD). The workshops will focus on overlooked consumer groups and identify priority areas for action.

The EcoFoodSystems project seeks to generate evidence on urban malnutrition and unsustainable food systems. It is part of the broader Ethiopian Food System Transformation Pathway, spearheaded by the Ministry of Agriculture and the Ethiopian Agriculture Institute, with a focus on policy reforms and capacity-building for researchers.

According to projections, by 2050, 70% of cities worldwide are expected to face food insecurity. In Addis Ababa, malnutrition stunts children’s growth and cognitive development, while excessive consumption of unhealthy diets contributes to chronic illnesses such as diabetes and heart disease. These health crises not only affect individuals but also pose long-term economic challenges for the country.

Dr. Endale announced that Ethiopia is set to introduce a proclamation aimed at combating unhealthy diets. Highlighting the impact of inflation on food security, he stated, “At EPHI, we estimate the cost of a healthy diet based on current market prices. Like in other countries, inflation could present challenges. Currently, global reports show that only one-third of the world’s population can afford a nutritious diet.”

Amid inflation, he also advised consumers to purchase a variety of small food portions rather than buying single products in bulk, promoting a more balanced and sustainable diet.

In a remarkable celebration of its 130th anniversary, Ethio Telecom has been showering its customers with incredible prizes since September 22, 2024, through the Ethio 130 Mega Promo and Ethio 131 Laki Slot Prize Program. As part of the ongoing festivities, today the company awarded two modern BYD electric cars and five 3-wheeled vehicles to lucky winners.

The giveaway includes one BYD electric car for 393,375 special customers selected in a lottery, alongside three 3-wheeled vehicles for 540,566 lucky participants. In addition, as part of the Ethio 131 Laki Slot Prize Program, another BYD electric car was presented to 226,970 winners, with two more 3-wheeled vehicles handed to 407,200 lucky individuals.

This isn’t the first time Ethio Telecom has distributed prizes through its celebrations. Previously, two electric cars were awarded to customers in Addis Ababa and Weliso, while three 3-wheeled vehicles went to winners in Harar, Arsi Negele, and Hosanna.

The prizes don’t stop there—over the past five months, Ethio Telecom has given away 141 modern smartphones, 10.56 million birr in TeleBir electronic money, and 1.18 million mobile packages, totaling an impressive 49.45 million birr in prizes.

The apogee of Ethiopia’s livestock reserve is yet to translate into anything more than a disappointing cliché. The leather industry that feeds on the country’s livestock resources is being tied up with old challenges of poor bureaucracy, lack of finance, and market linkage issues. Adding salt to the wound, the Covid pandemic, instability, and recent removal of Ethiopia from the African Growth Opportunity Act (AGOA) are making the industry’s future look rather bleak. Recognizing the industry’s immense potential and resolving its challenges is an assignment for no tomorrow, write EBR’s Lidya Tesfaye and Bamlak Fekadu.

Gizeshwork Tessema

Born and raised in Addis Ababa, Gizeshwork grew up dealing with her own version of ‘the woman’s challenge’. Yet, she identifies them not as such but rather as experiences that may bring forth opportunities.

Gizeshwork founded Gize PLC—a logistics company, about 25 years ago—and is also a contributor to the World Bank’s Doing Business Index as well as member of the United Nations Global Compact—a community of 8,000 CEOs from all over the world that convenes once a year to chart innovative ways for entrepreneurship for a better world.

She is a familiar face in the business scene as well as spearhead of the fundraising committee for the Grand Ethiopian Renaissance Dam (GERD), for which she has taken a keen interest in as it is a project of pride for her and the nation.

Entrepreneurial and making business from solving problems from her start, she is of the firm belief that one should not stay put with accomplishments but rather always push for more success. From a stationary to a travel company and from construction inputs to freight and logistics services, Gizeshwork has made her living and name in Ethiopia’s business sphere as a strong woman that overcomes her problems by providing solutions to her customers and clients—and gaining financially from it. She gave an audience to EBR’s Addisu Deresse on her experiences as a woman, an entrepreneur, and one that assumes roles in global institutions.

Ethiopians have depended on their religious beliefs and traditional practices to insure themselves against morbidity for long. Even though various life insurance packages have been sold by companies for years now, the idea of insuring health has not been popular among Ethiopians and as a business model for industry actors. The bumby relationship between insurers and hospitals and clinics is another obstacle for the matter. With the introduction of a community-based health insurance scheme a decade ago and a new draft in the making, poor awareness towards being insured seems to be slowly changing, writes EBR’s Bamlak Fekadu.

Ethiopians have always had traditional ways of looking good for both the face and body. Culturally recognized hairstyles, eye coloring sticks, hand softening traditional creams have been around for long. Modern makeup is growing more and more, however. The last few years have seen a change where makeup studios are becoming widespread. So much so that even makeup trainers and schools are popping up in Addis Ababa. Such is the growth as both a business and personal practice, writes EBR’s Trualem Asmare.

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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

Ethiopia and France Sign USD30.8 Million Agreement to Accelerate Economic Reform

Addis Ababa Faces Rising Food Waste and Malnutrition

Ethio Telecom Hands Over Electric Cars and 3-Wheeled Vehicles in New Prize Giveaway

Leather Struggles, but Hopeful

“Womanhood is not a Challenge!”

Health Insurance Crawls As a Practice

Minding Body Flourishing Makeup Business in Addis Ababa