@EthiopiaInvest – Ethiopian Business Review

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Ethiopia has secured over 5.1 billion USD in remittances within the first nine months of the 2024/2025 fiscal year, surpassing the total 4.4 billion USD received in the entire previous fiscal year, according to Ambassador Fetsum Arega, Director General of the Ethiopian Diaspora Service.

This remarkable inflow underscores growing trust and engagement from the global Ethiopian diaspora, not only in supporting families but also in exploring emerging investment avenues.

Ambassador Fetsum noted that diaspora interest is expanding beyond traditional remittance channels. Many are now leveraging liberalized investment policies and previously restricted sectors, entering joint ventures with foreign investors and injecting capital directly into the Ethiopian market.

Two major companies have already been established through this model—one facilitated by the UK-based diaspora and another by diaspora members in France. These developments reflect a broader trend of diaspora-fueled partnerships that blend emotional connection with economic ambition.

Source: Ethiopia News Agency

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The ID4Africa 2025 Annual Conference opened today in Addis Ababa, bringing together over 2,000 delegates from 100 countries to discuss the future of digital identity systems across the continent. At the opening session, Yodahe Zemikael, Director General of Ethiopia’s National ID Program, announced that 15 million Ethiopians have already benefitted from the country’s Fayida digital ID system, marking a significant milestone in the nation’s digital transformation journey.

Speaking at the high-level forum, Yodahe stressed that the programme’s success is not just measured by numbers but by the real-life improvements in service delivery, noting that Fayida has reduced processing times by up to 60% in institutions where it is active. He credited the achievement to political will, homegrown digital infrastructure, skilled professionals, and strong institutional partnerships.

Prime Minister Dr Abiy Ahmed, delivering a keynote address, described digital ID as an essential enabler of inclusive governance and economic development:

“Digital ID has evolved from a promising innovation into a foundational pillar of digital transformation… It is no longer optional but essential infrastructure connecting people to services, communities to institutions, and governments to the aspirations of their citizens.”

He acknowledged past fragmentation in Ethiopia’s ID system, which excluded millions, and said the new unified approach aims to bridge that gap and foster inclusive access to essential services.

Running over three days, the conference features expert workshops and symposia focused on digital identity innovations from 35 African countries, placing Ethiopia at the forefront of the continent’s tech-driven transformation.

In a landmark event organized by the British Ethiopian Embassy, the Ethiopia-England Business Forum took place in London, drawing significant interest from both Ethiopian and British business leaders. The forum focused on fostering deeper economic ties between the two nations, highlighting Ethiopia’s emerging investment opportunities amidst its ongoing economic transformation.

During the forum, State Minister of the Ministry of Foreign Affairs of Ethiopia Ambassador Mesganu Arga urged British companies to seize the various investment opportunities arising from Ethiopia’s economic reforms. “Ethiopia is open for business, and we are committed to creating an environment that attracts foreign investment,” he stated, emphasizing the nation’s strategic reforms designed to stimulate growth and innovation.

Ethiopian Ambassador to the UK, Biruk Mekonen, also addressed the forum, providing insights into Ethiopia’s evolving business landscape. He, along with key figures such as the Deputy Executive Officer of Ethiopia Investment Holding and the Commissioner of the Ethiopian Investment Commission, participated virtually to discuss potential investment avenues and the supportive government policies designed to ensure a favorable business environment.

The event attracted a diverse range of British companies, eager to explore the vast opportunities presented by Ethiopia’s expanding market and dynamic economic policies. With a clear focus on strengthening bilateral trade and investment ties, the forum highlighted the mutual benefits that can arise from enhanced cooperation between Ethiopia and the UK.

Ethiopia’s negotiating team has returned from the 5th Working Group Meeting for WTO Membership in Geneva, Switzerland, after securing significant progress in the country’s long-awaited bid to join the global trade body. Minister of Trade and Regional Integration, Dr. Kassahun Gofe, addressed the media in a press conference today, highlighting the fruitful outcomes of the meeting.

Dr. Gofe emphasized that Ethiopia’s successful participation was the result of thorough preparation, recognizing the hard work required for WTO negotiations. At the meeting, Ethiopia received support from 19 countries, signaling increasing global confidence in the country’s reform efforts. “We have not only created a platform to achieve WTO membership in a short time, but we’ve also earned the trust of the organization’s members,” Dr. Gofe stated.

The Minister also explained that Ethiopia’s lengthy application process, which has taken over two decades, was due to the country’s previous “very protectionist” economic policies. “You can’t access WTO membership by closing the economy to foreign players,” he said. Dr. Gofe highlighted that the ongoing economic reforms in Ethiopia, which have opened the country up to foreign investment and trade, are pivotal to securing membership.

Looking ahead, Dr. Gofe emphasized the national benefits that WTO membership will bring. While there may be some initial impact on government revenue, he assured that it would not harm the economy. “Beyond this, it will expand the market for Ethiopia’s products,” he said, reinforcing the long-term advantages of global trade integration. He confirmed that the country is working toward full membership at the WTO Ministerial Conference in Cameroon in 2026, with the 6th Working Group Meeting set for July.

The Ministry of Transport and Logistics has announced that the Ethio-Djibouti Railway has steadily increased its transportation capacity, with plans to handle 50% of Ethiopia’s export cargo in the near future. The railway has consistently boosted its cargo capacity by 14.2% annually, solidifying its critical role in Ethiopia’s trade infrastructure.

Currently, the railway plays a pivotal part in the export of Ethiopian coffee, transporting 98% of the country’s coffee exports. It also handles a diverse range of goods, from fertilizers and livestock to heavy machinery, buses, and new trucks, showcasing its capacity to manage both multimodal and unimodal container loads.

In addition, the railway is instrumental in transporting perishable goods in containerized form, maintaining quality, and ensuring that products reach foreign markets in optimal condition—vital for safeguarding Ethiopia’s expected income from foreign trade.

Looking ahead, the Ethio-Djibouti Railway Corporation has set ambitious targets. It aims to cover 50% of Ethiopia’s freight transport needs, increase train frequency to 14 trains per day, and enhance the speed of freight trains to 58 km/h. Furthermore, the corporation is moving toward a fully digitalized rail service, focusing on improving operational efficiency and customer satisfaction.

Recent strides include obtaining multimodal operating and freight forwarding licenses, expanding its service offerings, and positioning itself as a key player in Ethiopia’s freight and logistics sector. The railway’s growth reflects not only its expanding capabilities but also Ethiopia’s ongoing efforts to improve trade efficiency and strengthen its position in the global market.

Ethiopia has seen a significant boost in foreign exchange availability following the implementation of macroeconomic reforms, with key figures pointing to economic progress. Reflecting on the country’s economic progress during a public forum organized by the Prime Minister’s Office, Minister of Planning and Development, Dr. Fitsum Assefa, shared that exports have surged by 102% in the past seven months compared to the same period last year. Additionally, USD3.9 billion has been received from development partners, and remittances have risen by 14% compared to the previous year.

Dr. Fitsum further explained that the National Bank of Ethiopia’s foreign exchange auction system has facilitated USD5.1 billion in foreign exchange purchases by banks, with USD4.4 billion sold and a USD720 million surplus remaining in the banking system. This surplus, she noted, has resolved concerns about foreign exchange availability for viable investments.

The Minister also highlighted a 20% increase in the supply of capital goods for manufacturing compared to the same period last year. Through the Ethiopian Manufacturing Movement, 395 factories that had previously halted production due to national and international challenges have resumed operations. Dr. Fitsum emphasized that foreign exchange is no longer a structural problem for Ethiopia’s industries, paving the way for continued investment and growth.

Ethiopia Attracts Over USD5 Billion in Remittances in First Nine Months of Fiscal Year

Fayida Adoption Hits 15 Million Amid Ethiopia’s Push for Inclusive Digital Services

Business Forum in London Highlights Ethiopia’s Appeal to British Investors

Ethiopia’s WTO Membership Bid Gains Momentum with Support from 19 Countries

Ethio-Djibouti Railway Aims to Dominate 50% of Ethiopia’s Export Cargo

Ethiopia Sees 102% Export Surge, USD3.9B Foreign Exchange from Partners, and USD720M Surplus