@EthiopianGov – Ethiopian Business Review

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Zambia has announced plans to adopt Ethiopia’s Fayda digital ID system as a model for its upcoming national digital identity initiative, highlighting Ethiopia’s success in leveraging homegrown technology to drive inclusive development, as reported by TechAfrica News . The decision underscores a growing recognition of Ethiopia’s digital leadership in Africa.

Speaking at the Africa Innovation Conference in Addis Ababa, Smart Zambia National Coordinator Percy Chinyama expressed admiration for Ethiopia’s approach. “We are keen to replicate what Ethiopia has achieved through its own domestic capabilities,” he remarked. Chinyama emphasized Zambia’s strategic shift towards locally developed solutions to enhance national ownership and sustainability.

Ethiopia’s Fayda system has been instrumental in promoting financial inclusion and social equity. Since its launch, over 12 million Ethiopians have been registered, with the goal of reaching 90 million residents. The system has notably empowered women, refugees, and internally displaced persons by providing them with legal identification, thereby facilitating access to essential services such as banking, healthcare, and education .

In Zambia, the government is already implementing similar initiatives. The Ministry of Education’s Learning Management Platform, developed locally, is providing equitable access to the national curriculum. Additionally, Smart Zambia has launched a program to solarize all local councils, ensuring uninterrupted digital connectivity for public services across the country.

Dr. Benson Banda, Director of the National Science Centre under the Ministry of Education, reported that more than 5,000 teachers in 84 districts are actively using the Learning Management Platform. He highlighted the platform’s mobile compatibility as critical in supporting the new curriculum rollout.

Zambia’s Ambassador to Ethiopia and Permanent Representative to the African Union, Rose Sakala, commended Ethiopia’s leadership in digital governance and lauded Smart Zambia’s efforts to enhance cybersecurity within public institutions.

In a move that underscores Ethiopia’s growing prominence in global aviation, Boeing has officially inaugurated its Africa office in Addis Ababa. The opening ceremony, held on April 14, 2017, was attended by key figures including His Excellency Alemu Sime (PhD), Minister of Transport and Logistics, Boeing’s President of the Middle East, Turkey, Africa, and Central Asia, Kuljit Ghata, and other aviation leaders.

Dr. Alemu emphasized the significance of Boeing’s new office in Addis Ababa as a pivotal milestone in Ethiopia’s journey towards becoming a global leader in transport and logistics. “This is not only a testament to Ethiopia’s advancement in the aviation sector but also a crucial step toward realizing our vision of a connected and prosperous Africa,” he remarked at the opening.

Ethiopia has long been investing heavily in the modernization of its transport and logistics infrastructure. With a decades-long roadmap driven by the National Transport Council, the government is focusing on creating a robust transport network across the continent. This vision includes a USD 74 billion investment in areas such as aviation, rail, port development, and smart logistics, all set to align with Ethiopia’s broader growth trajectory.

In addition to expanding its footprint in Ethiopia, Boeing has also committed to advancing the country’s capabilities in aircraft manufacturing, training, and the development of sustainable aviation fuel. The partnership reflects Boeing’s long-term trust in Ethiopia’s growing aviation and aerospace sectors.

U.S. Ambassador to Ethiopia, Ervin Massinga, and Ethiopian Airlines CEO Mesfin Tassew were also present at the event, reinforcing the significance of this partnership between Ethiopia and Boeing in shaping the future of aviation in Africa.

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.

The Addis Ababa Transport Bureau has confirmed that construction of the city’s long-awaited Bus Rapid Transit (BRT) system will commence sooner this fiscal year, marking a major step forward in modernizing the capital’s public transportation network. Speaking to Ahadu Radio, Dagnachew Shiferaw, the bureau’s deputy head, revealed that 15 BRT corridors are planned for development in the coming years, with the first phase—a 19-kilometer route stretching from Jemo 3 to Piyasa Adwa—slated to begin construction this year. Funded with support from the French government, the project has already secured a contractor, ensuring that work will proceed as scheduled.

Unlike conventional bus services, the BRT system will operate on dedicated lanes, significantly reducing delays caused by traffic congestion. Dagnachew emphasized that the current practice of buses waiting to fill up before departing—a fuel-saving measure that inconveniences passengers—will be eliminated once the express service is operational. Commuters will benefit from reliable, on-demand transportation without unnecessary waiting times. The BRT model, successfully implemented in cities worldwide, is expected to bring similar efficiency gains to Addis Ababa.

Looking ahead, the city’s transport infrastructure will feature a dual-system approach: a mass transit train network alongside the BRT for high-capacity movement, while taxi services will cater to middle-income residents. As construction progresses on the initial line, additional BRT routes will be developed in parallel, signaling a broader shift toward a faster, more organized urban transit system. This initiative represents a critical milestone in addressing Addis Ababa’s growing mobility challenges and improving the daily commute for millions of residents.

Yodahe Arayasalassi, Director of the Ethiopian National ID Program, has been recognized by San Francisco-based Okta as one of 25 global leaders in digital identity. The recognition highlights his pivotal role in shaping Ethiopia’s national identification system, which has already registered over 13 million citizens.

Under Arayasalassi’s leadership, the Ethiopian National ID Program is set to reach 70 million citizens by 2025, providing Ethiopians with secure, accessible, and reliable digital identity solutions. This initiative is a crucial part of the country’s efforts to enhance governance, improve service delivery, and promote financial inclusion.

In a statement shared by Okta, the company emphasized how digital identity has become a cornerstone of global security, particularly in the wake of the pandemic. With the rapid digital expansion, the need for secure digital identities has never been more critical. Okta’s recognition of Arayasalassi underscores the transformative role Ethiopia is playing in the global digital identity landscape.

Okta’s annual Identity 25 honors individuals who have made significant contributions to securing and evolving digital identity systems. The initiative aims to highlight the leaders who are shaping the future of identity, protecting personal data, and ensuring digital inclusivity for all.

Ethiopia has secured significant interest from Indian investors to expand its pharmaceutical sector, aiming to transition from import reliance to a key continental producer. This outcome was achieved at the Ethio-India Trade and Business Forum, held at the Skylight Hotel, where Zeleke Temesgen Boru (Ph.D.), Commissioner of the Ethiopian Investment Commission (EIC), outlined the country’s commitment to fostering self-sufficiency and boosting exports as part of its 10-year national development strategy.

The Kilinto Special Economic Zone has played a pivotal role in this transformation, offering tax incentives and exemptions to attract investment in local pharmaceutical production. Dr. Zeleke has invited Indian investors to explore opportunities in pharmaceutical manufacturing, medical equipment production, health infrastructure, and digital health—sectors identified as having substantial growth potential.

India’s Ambassador to Ethiopia, Anil Khmer Rai, has commended Ethiopia’s recent business-friendly policy reforms and urged Indian companies to leverage the favorable investment environment.

The forum has attracted over 80 Indian companies in the pharmaceuticals and medical materials manufacturing sectors, offering a platform for deeper collaboration and investment in Ethiopia’s pharmaceutical market.

The Koka Hydropower Dam is poised to meet its power generation targets for the 2024/2025 fiscal year, according to station manager Morka Haile. The plant is on track to produce 134.9 gigawatt hours (GWh) of electricity, with 119 GWh generated over the first nine months of the year.

Morka highlighted that the current water level in the dam stands at 1586.68 meters above sea level, slightly below the 1587.01 meters recorded during the same period last fiscal year. Despite this minor difference, the water level is sufficient to ensure uninterrupted power generation for the remainder of the year, allowing the station to meet its annual output target.

With 65 years of operation, the Koka Hydropower Station continues to produce an average of 110 GWh annually, consistent with its original design output. Morka credited the station’s operational efficiency to the dedicated efforts of the operation and maintenance department, emphasizing their critical role in sustaining reliable power generation.

The station has also undergone significant improvements over the years, including a major reconstruction of the electromechanical department 25 years ago. Ongoing projects are carefully planned, involving key stakeholders to ensure the safety of the dam and address environmental concerns such as weed control.

Currently, the Koka Hydropower Station operates with three turbines and has a capacity of 43.2 megawatts, contributing significantly to Ethiopia’s energy supply and supporting the country’s development goals.

TOYO, a solar solution company, has unveiled ambitious plans to expand its solar cell manufacturing capacity in Ethiopia by an additional two gigawatts (GW), taking its total production capacity to 4GW. This expansion follows the completion of Phase 1 of TOYO’s state-of-the-art facility in Hawassa, which is set to commence production in the second quarter of 2025.

The new expansion, which is part of a broader USD47 million investment, will significantly bolster TOYO’s ability to meet the increasing global demand for high-performance solar cells. Phase 1 of the facility, which was announced in October 2024 and is set to be fully operational by mid-2025, was designed with a capacity of 2GW, a milestone for the company in its mission to lead the solar industry globally.

Junsei Ryu, CEO and Chairman of TOYO, explained, “This expansion is a direct response to the strong global demand for solar energy solutions. The interest in our products, even before Phase 1 is fully operational, is a testament to the strength of our strategic vision and the pivotal role Ethiopia plays in our global expansion.”

The expansion will take place in Hawassa, a growing hub for Ethiopia’s renewable energy industry, and is expected to be completed by July 2025, with full production slated to begin by August.

This new facility, which will occupy an additional 28,000m² of space adjacent to the existing site, will significantly reduce the timeline for development due to the existing infrastructure in place. With a keen focus on sustainability, TOYO aims to reduce its carbon footprint while providing cutting-edge solar solutions to meet global energy needs.

In a show of confidence in the Ethiopian market, TOYO also secured a major $150 million supply contract in November 2024, further solidifying Ethiopia’s role as a key player in the global renewable energy sector.

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.

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