@EthiopianEconomy – Ethiopian Business Review

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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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Oromia Regional State is gearing up to host a high-profile investment forum on May 31, 2025, in Addis Ababa, according to the Ethiopian Press Agency. Organized by the Oromia Investment and Industry Bureau, the event is expected to draw a diverse array of participants — including senior federal and regional officials, prominent business leaders, and development partners — with the aim of unlocking the region’s vast economic potential.

The forum is part of Oromia’s broader strategy to position itself as a premier investment destination within Ethiopia. The state government is offering an attractive portfolio of incentives, such as multi-year income tax exemptions, duty-free privileges on imported capital goods, and facilitated land access. Coupled with a favorable climate and a growing infrastructure base, Oromia is signaling its readiness for large-scale private sector engagement.

According to the EPA report, key sectors prioritized for investment include agriculture, agro-processing, manufacturing, and services — all areas where Oromia boasts strategic advantages, from fertile land and abundant raw materials to a sizable labor force and strong market linkages.

More than just a promotional event, the forum is envisioned as a critical platform for dialogue and collaboration. Investors, government officials, and industry players will have the opportunity to network, share ideas, and initiate partnerships that align with Ethiopia’s broader economic reform agenda.

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Ethiopian Airlines has reported a remarkable USD 5.6 billion in revenue during the first nine months of the current Ethiopian fiscal year, marking an 8% year-on-year growth. The milestone underscores the national carrier’s resilience and strategic momentum as it powers forward with its long-term Vision 2035 plan.

In an interview with the Ethiopian Broadcasting Corporation (EBC), CEO Mesfin Tasew attributed the success to expanded routes, fleet growth, and increased passenger volume. Over the period, the airline launched four new international destinations, took delivery of 10 additional aircraft, and transported 14.5 million passengers—a 13% increase compared to the same period last year.

Among the new aircraft is Africa’s largest Airbus A350-1000, positioning Ethiopian Airlines at the forefront of aviation modernization on the continent.

Looking ahead, the airline plans to deepen its global footprint, with new routes planned to India and the United Arab Emirates (UAE). CEO Mesfin also revealed that two more aircraft will be delivered in June alone, signaling continued investment in capacity and service delivery.

In infrastructure, Ethiopian Airlines is progressing toward its long-term goal of establishing a world-class aviation hub. Construction of a new mega-airport in Bishoftu is set to begin in November next year, with preparatory efforts underway to relocate farmers affected by the development.

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Three of the country’s state-owned financial institutions—the National Bank of Ethiopia (NBE), the Commercial Bank of Ethiopia (CBE), and the Development Bank of Ethiopia (DBE) have jointly launched the Financial Sector Strengthening Project (FSSP), a USD700 million initiative financed by the World Bank.

The project’s first disbursement, amounting to USD250 million, was transferred today to the Commercial Bank of Ethiopia , signaling the operational kickoff of the reform agenda.

Announced during the Ethiopia Finance Forum, the FSSP is aimed at enhancing the resilience, inclusiveness, and functionality of Ethiopia’s financial sector. It focuses on regulatory reform, institutional capacity building, and expanding access to finance—particularly for underserved communities and high-impact sectors such as agriculture and manufacturing.

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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.

Ethiopian Airlines anticipates achieving one trillion ETB ($8 billion) in annual revenue by June 2025, marking a significant milestone in its growth. Group CEO Mesfin Tasew shared this ambitious projection during an interview with BBC News. The airline planned a revenue of $10 billion in 2025, when it crafted its strategic 15-year plan. However, the outbreak of COVID affected the airlines’ revenue as global restrictions on travel affected airlines tremendously.

As part of its expansion, Ethiopian Airlines is making significant strides in the global aviation industry with its plans for a new mega airport in Bishouftu, 43km southeast of Addis Ababa. This airport, to be developed in two phases, will have a transformative impact. Phase One, with a capacity to handle 60 million passengers per year, is set to commence in November this year and be completed by 2029. The second phase, adding another 50 million passenger capacity, will follow shortly thereafter. The new airport, built on 3,500 hectares of land, will make the biggest airport in Afric, symbolising Ethiopia’s leading position in aviation. To ensure the well-being of those affected by the relocation, the airline is constructing residential homes, agro-processing hubs, and trade facilities, ready for the families by November 2025. This new facility will address the growing demand, as Addis Ababa Bole International Airport, despite continuous expansions, has reached its limit of 25 million passengers per year.

This massive infrastructure project directly responds to the increasing number of passengers Ethiopian Airlines serves, both within Africa and globally. In 2024, a report by the African Airlines Association ranked Addis Ababa Bole Airport as the third-busiest airport in Africa, trailing only Cairo and Johannesburg.

Ethiopia’s mining sector has shattered expectations with a gold export boom in the 2024/2025 fiscal year. Official reports reveal Ethiopia exported 22.5 tons of gold in just eight months – nearly four times its 6-ton target.

This stellar performance positions Ethiopia to potentially join Africa’s top gold exporters. At the current pace, year-end exports could reach 33 tons, significantly boosting foreign currency reserves.

The mining sector has emerged as Ethiopia’s export champion, contributing the lion’s share of USD1.88 billion in total export earnings. However, the sector faces structural challenges, with artisanal miners producing 95% of output through traditional methods.

To address these challenges, the government plans to operationalize small gold processing factories. This move aims to increase production efficiency while formalizing the largely informal sector.

The gold export surge comes at a critical time for Ethiopia’s economy. While the windfall provides immediate relief to forex reserves, long-term success depends on transitioning from artisanal to industrial mining practices.

Minister Habtamu Tegegne presented these findings during a review of the ministry’s eight-month performance. The report highlights both the sector’s potential and the need for sustainable development strategies to maintain growth.

Despite Ethiopia’s ongoing macroeconomic reforms, fixed-income earners continue to feel the pressure of rising living costs. Dr. Eyob Tekalign, State Minister of Finance, acknowledged that while certain segments of society are benefiting from increased earnings, those with stable salaries still struggle with inflation.

Speaking at a public forum organized by the Prime Minister’s Office, Dr. Eyob explained that the reforms are aimed at stabilizing the economy, particularly by narrowing the gap between the official and black market exchange rates. He highlighted the government’s efforts to ease inflationary pressures, including allocating 70 billion birr to fuel subsidies and refraining from imposing additional taxes.

He also noted that structural adjustments in production and supply have contributed to stabilizing prices, but further improvements are still needed. To fully address the challenges, he emphasized the importance of continued collaboration between the government and the public.

The National Bank of Ethiopia’s (NBE) latest foreign currency auction has sparked confusion among industry stakeholders after concluding at a significantly higher rate than the prevailing market price. While the USD exchange rate stood at ETB 124.0086 on the market, the auction saw USD60 million sold at an average rate of ETB 135.62 per dollar. This unexpected outcome has raised concerns about its impact on the broader market.

A financial expert close to the banking sector explained that for banks, participating in the auction is often their only option to secure the foreign currency needed to cover essential expenses. He noted that NBE holds these auctions to manage forex distribution and stabilize market fluctuations.

In a recent policy shift, NBE has transferred a significant portion of fuel import-related forex responsibilities to commercial banks. Fuel imports require large sums of foreign currency, which could strain reserves. “With payment deadlines for fuel imports approaching, banks likely raised their bids to ensure they could meet their obligations,” the expert said.

Smaller banks also participated aggressively, bidding at higher rates. “They prefer the auction as it offers a better deal compared to purchasing from larger banks, which often charge high commissions,” he added.

A seasoned economist highlighted the uncertainty surrounding future auctions, which has led banks to maximize their forex purchases whenever possible. While acknowledging the auction system’s benefits, he cautioned that the latest auction’s near ETB 136 per USD rate could exert inflationary pressure on the economy. “Exporters may withhold their goods, anticipating further depreciation of the ETB and higher profits in future auctions,” he warned.

According to NBE, 27 banks participated in the auction. Sources indicate that only 12 banks secured foreign currency, with winning bids ranging from a minimum of ETB 130 to a maximum of ETB 141 per dollar. Notably, a single bank reportedly obtained just USD200,000 at the highest rate of ETB 141 per dollar.

Source: The Reporter

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Three State-Owned Banks Unite for USD700M Financial Sector Reform

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

Ethiopian Airlines Eyes Over Trillion ETB in Revenue by June 2025

Ethiopia’s Mining Sector Contributes USD1.88 Billion in Exports, Led by Gold

Rising Costs Squeeze Fixed-Income Ethiopians Amid Economic Overhaul

NBE’s Auction Wraps Up: Why Banks Are Rushing to Secure USD?