@EthiopiaEconomy – Ethiopian Business Review

NIB Bank and Arifpay Financial Technologies have launched a strategic partnership aimed at expanding access to digital payment systems across Ethiopia. The collaboration brings together NIB Bank’s extensive financial infrastructure and Arifpay’s growing fintech capabilities to deliver a range of integrated solutions that cater to the evolving needs of businesses and merchants.

Central to the partnership is a commitment to improving how transactions are made and managed, particularly for small and medium-sized enterprises (SMEs), retail merchants, and service providers seeking greater efficiency and flexibility in their day-to-day operations.

One of the key offerings is the deployment of mobile and smart point-of-sale (POS) devices, allowing merchants to accept card payments, including Visa, Mastercard, and UnionPay. This capability is expected to improve transaction security and boost foreign currency inflows by attracting more international customers and formalizing previously cash-based businesses.

The agreement also includes the rollout of a secure digital Payment Gateway to support Ethiopia’s growing e-commerce sector. The gateway is designed to facilitate online payments for businesses operating in the digital space, offering a locally managed, real-time transaction platform that enhances reliability and customer trust. As part of the rollout, merchants will also have access to a free e-commerce platform, integrated directly through Arifpay’s gateway.

“With this partnership, NIB Bank’s customers can access these all-inclusive payment solutions,” said Rediet Tsigeberhan, CEO of Arifpay. “Moreover, a free e-commerce platform for merchants through our payment gateway will further empower businesses. Teaming up with NIB Bank allows us to scale our fintech innovations nationwide and work with a larger, more inclusive, and digitally empowered economy.”

Complementing these tools is a merchant-focused mobile application that allows vendors to accept payments, manage transactions, and access real-time analytics from their smartphones. The app supports businesses in better monitoring cash flow, understanding customer behavior, and making data-driven decisions.

Additionally, the “Super Merchant” model introduced through this partnership will allow NIB Bank to integrate Arifpay’s interoperable technologies into its existing digital services. The model is intended to simplify onboarding processes for new merchants, expand access to digital financial tools, and further modernize the bank’s retail offerings.

Henok Kebede, CEO of NIB Bank, said the partnership reflects the bank’s strategic direction toward becoming a leader in digital financial services. “By combining our infrastructure with Arifpay’s technology, we are positioned to deliver practical, customer-focused solutions that support business growth and financial inclusion,” he said.

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The Ethiopian Agricultural Works Corporation has announced that nearly 12 million quintals of fertilizer have already arrived at the port of Djibouti. Of this, more than 11.2 million quintals have been imported and distributed to farmers and semi-pastoralist communities across the country.

According to the Corporation, the latest shipment—carrying 550,000 quintals of Di-Ammonium Phosphate (DAP) fertilizer—docked at the port of Djibouti on the morning of May 10, 2025. The delivery is part of Ethiopia’s broader fertilizer procurement plan for the upcoming crop season, which targets the import of 24 million quintals of fertilizer sourced through international competitive bidding.

The Corporation reported that, as of May 10, a total of 11,964,181 quintals of fertilizer have arrived at the port, with 11,228,142 quintals already cleared and distributed via agricultural cooperatives. This early delivery underscores the government’s commitment to addressing the timely availability of inputs critical to Ethiopia’s predominantly agrarian economy.

Since its establishment, the Ethiopian Agricultural Works Corporation has overseen fertilizer imports in line with national demand assessments conducted annually by the Ministry of Agriculture. The process involves strategic international procurement to ensure that adequate supplies reach farming communities ahead of peak planting periods.

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The Invest in Ethiopia 2025 High-Level Business Forum, which concluded today in Addis Ababa, has secured USD 1.6 billion in foreign investment, marking a significant milestone in the country’s efforts to foster private sector growth and attract international capital. The two-day event gathered global investors, policymakers, and key stakeholders, highlighting Ethiopia’s ongoing economic reforms and its growing appeal as an investment destination.

A key moment of the forum was the signing of five major investment agreements, which span diverse sectors with high growth potential. These deals are set to play a pivotal role in driving Ethiopia’s economic transformation and contribute to the creation of jobs and sustainable development.

The forum also hosted a series of productive panel discussions, addressing key issues impacting Ethiopia’s investment landscape. Among the featured discussions were: “A Conducive Environment for Investment in Ethiopia’s Service Sector,” which explored opportunities and challenges in service industries; “Public-Private Partnerships and Joint Investments with Governments,” emphasizing collaboration between the public and private sectors for sustainable development; and “ICT and Other Emerging Sectors – Powering the Digital Frontier,” which delved into Ethiopia’s digital transformation and the growing potential of technology-driven industries.

Ahmed Shide, Minister of Finance of the Federal Democratic Republic of Ethiopia, reaffirmed the government’s commitment to maintaining a stable, investor-friendly environment. He emphasized the critical role of private sector growth in achieving macroeconomic stability and advancing Ethiopia’s ambitious reform agenda, including the newly launched Macro Reform Program.

“There has never been a more opportune moment to invest in our nation,” Minister Shide stated, extending an open invitation to global investors to join Ethiopia on its transformative journey. He stressed that investment is key to advancing shared goals of resilience, inclusive prosperity, and sustainable growth, and encouraged investors to explore the high-potential sectors outlined in the country’s investment “deal book.”

Dashen Bank has made history by becoming the first private bank in Ethiopia to secure a Trade Finance Guarantee Facility Agreement worth USD 40 million from the African Development Bank (AfDB). The agreement was officially signed this morning at Dashen Bank’s headquarters, marking a major milestone for both the bank and Ethiopia’s financial sector.

The signing ceremony was attended by key representatives from Dashen Bank and AfDB. Asfaw Alemu, CEO of Dashen Bank, expressed pride in securing this facility, noting that it is the first of its kind to be extended to a private bank in Ethiopia. He emphasized that Dashen Bank is honored to serve as a bridge to bring this significant opportunity to life. Asfaw further highlighted that the agreement symbolizes strategic alignment that helps unlock Africa’s full potential. He attributed the successful securing of this facility to Dashen Bank’s rigorous due diligence, operational soundness, and progress in governance, underscoring the bank’s strong strategic direction.

Dr. Leandre Bassole, Deputy Director General of East Africa at the AfDB, expressed the agreement’s importance, calling it a pivotal milestone in strengthening the partnership between the AfDB and Ethiopia’s financial industry. Bassole noted that the agreement will play a significant role in advancing inclusive, private sector-led growth in Ethiopia, emphasizing that it marks the first direct trade finance guarantee facility the AfDB has provided in the country.

This facility will enable Dashen Bank to facilitate import and export trade finance requirements, thereby enhancing the bank’s capacity to support critical sectors of the Ethiopian economy. It is expected to significantly bolster trade finance by providing guarantees to confirming banks for non-payment risks arising from trade finance instruments such as letters of credit issued by Dashen Bank. This initiative responds to the challenges faced by Ethiopian banks, which have been constrained by inadequate credit lines from international confirming banks, limiting their ability to support clients effectively.

The facility is also expected to promote intra-Africa trade, aligning with the African Continental Free Trade Area (AfCFTA) agenda. It will help address the financing gaps in critical sectors and support the import of essential goods such as fertilizers, pharmaceuticals, solar energy panels, and agricultural machinery, all crucial for Ethiopia’s development.

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The Ethiopian Deposit Insurance Fund has amassed a total ETB of 5.89 billion in the past nine months, signaling growing momentum in the country’s efforts to build a stable and trustworthy financial system. Of this amount, 88.29% (ETB 5.2 billion) came from insurance premiums collected from financial institutions, while the remaining 11.71% (689.45 million birr) was generated through investment returns.

Established under Council of Ministers Regulation No. 482/2013 and operational for just two years, the Fund is under the supervision of the National Bank of Ethiopia and serves as a critical mechanism to protect depositors in the event of bank failures. Premium contributions were primarily sourced from private banks (ETB 2.67 billion or 51.3%), the Commercial Bank of Ethiopia (2.47 billion birr or 47.5%), and microfinance institutions (ETB 59.49 million or 1.2%).

In terms of investment, the fund has built a portfolio worth ETB 12.11 billion, with 92.24% placed in government treasury bills and the remainder in Mudarabah term accounts, reinforcing its commitment to low-risk, Sharia-compliant financial strategies.

In addition to its financial performance, the Fund is investing in internal capacity—modernizing its information management systems and workforce. As Ethiopia navigates economic reforms, the steady rise of the fund presents a quiet but vital assurance to depositors across the country: their savings are being safeguarded with increasing efficiency and transparency.

The Ethiopian Investment Commission (EIC), in collaboration with the Ministry of Finance (MoF) and the Development Partners Group, is gearing up to host the 3rd edition of the Invest Ethiopia 2025: High-Level Business Forum, slated for May 12-13, 2025, at the Skylight Hotel in Addis Ababa. This prestigious event will bring together an impressive mix of 700 global investors, business leaders, policymakers, and entrepreneurs, offering a dynamic platform to explore Ethiopia’s untapped investment opportunities.

During a press conference unveiling the event, Dr. Zeleke Temesgen Boru, Commissioner of the EIC, alongside Semereta Sewasew, State Minister of Finance, Dr. Léandre Bassolé, Deputy Director General for the East African Region at AfDB, and Ashley Mulroney, the Canadian Embassy’s Representative, reinforced the forum’s significance in setting the stage for future investment flows into Ethiopia. Aimed at catalyzing the country’s economic growth, the forum is expected to attract USD 3 billion in investment over the next few years.

The forum is not just a platform for dialogue but a robust opportunity for business leaders to dive deep into Ethiopia’s evolving investment climate. As Dr. Zeleke emphasized, Ethiopia’s strategic geographic location, coupled with its affordable and reliable electricity, positions the country as an attractive destination for foreign direct investment (FDI). “Ethiopia offers investors unparalleled access to regional and global markets, with proximity to the Middle East and other key trade hubs,” he remarked. “Furthermore, the government’s commitment to providing tax incentives and fostering a business-friendly environment makes it an ideal location for long-term investments.”

The forum also seeks to showcase the government’s commitment to fostering a private-sector-driven economy. Over the past few years, Ethiopia has actively worked to create an environment that is both conducive to investment and supportive of entrepreneurship. The strategic reforms implemented to date are now set to serve as the backbone for attracting further capital.

The previous Invest in Ethiopia Forum in April 2023 saw an impressive turnout of 750 foreign investors, with an estimated USD 1.6 billion in investment commitments. These engagements helped Ethiopia secure a USD 3.9 billion FDI influx in the 2023-2024 fiscal year.

Ashley Mulroney, representing the Development Partners Group, highlighted the importance of collaboration between the government, private sector, and development partners in Ethiopia’s investment ecosystem. She noted that while global economic challenges like inflation and trade disruptions continue to affect emerging markets, Ethiopia’s macroeconomic stabilization efforts and structural reforms are proving resilient.

She emphasized the need for investment to focus on inclusive growth, with particular attention to youth, women, and underserved communities. This commitment to fostering inclusive development is crucial as Ethiopia looks to tap into its demographic dividend and address the needs of its rapidly growing population.

The expansion into sectors like telecom, banking, and logistics is another critical focus of the forum. Ethiopia’s recent shift to a market-based exchange rate system has been instrumental in creating a more competitive environment for international investors. Dr. Léandre Bassolé, Deputy Director General for the East African Region at AfDB, stressed that Ethiopia’s opening up of key sectors signals a serious commitment to market liberalization and private-sector involvement. “The government’s macroeconomic reforms and efforts to liberalize essential sectors such as telecom and banking show Ethiopia’s dedication to building a modern, open economy,” Dr. Bassolé remarked.

Ethiopia’s investment journey has been significantly shaped by China’s increasing role in its development, with over 4,500 Chinese-led projects currently operating in the country. However, despite the significant strides made in promoting investment, security challenges continue to pose risks to Ethiopia’s business environment. The ongoing instability in certain regions, coupled with disruptions in supply chains, is affecting investor confidence and escalating operational costs. Dr. Zeleke acknowledged these challenges, urging a balanced perspective on the situation. “While peace is crucial for investment, the perception of instability often outweighs the reality. We must work together to ensure stability, both on the ground and in the global perception,” he said.

In what industry observers are calling a watershed moment for Ethiopia’s agricultural sector, three powerhouse organizations have joined forces to reshape the nation’s food production and processing landscape. The Ethiopian Trading and Business Corporation (ETBC), Soy Afric, and Kazana Group have inked a comprehensive Memorandum of Understanding that promises to revolutionize the entire agricultural value chain – from seed to export.

NIB Bank and Arifpay Roll Out Integrated Payment Solutions Targeting Businesses and Merchants

Ethiopia Imports Over 11 Million Quintals of Fertilizer Ahead of 2024/25 Crop Season

The Invest in Ethiopia 2025 Forum Draws USD 1.6 Billion in Foreign Investment

Dashen Bank Becomes First Private Bank in Ethiopia to Secure Trade Finance Guarantee from AfDB

Ethiopia’s Deposit Insurance Fund Mobilizes ETB 5.89 Billion Birr in Nine Months

Invest In Ethiopia 2025 Forum to Drive USD 3 Billion in FDI

Three Giants Join Forces to Reshape Ethiopia’s Agricultural Future