@IFC_org – Ethiopian Business Review

Pula Advisors, an international insurtech company, in partnership with Oromia Insurance S.C. and other local partners, has provided agricultural insurance coverage to 700,000 smallholder farmers as of December 2024. Building on this success, the company aims to reach an additional 3 million farmers by the end of the current fiscal year. This scale-up effort brings together a consortium of local insurers, including Abay Insurance S.C., Africa Insurance S.C., Ethiopian Insurance Company (EIC), Nyala Insurance S.C., and Oromia Insurance S.C.

The announcement was made on Wednesday by Pula’s Ethiopia Country Director, Dagmawi Haileyesus, during the UNDP’s Financial Resilience in Agriculture (FRA) Community of Practice (CoP) 2025 high-level international forum, held at the United Nations Economic Commission for Africa (ECA) headquarters in Addis Ababa. The event brought together over 100 participants from 24 countries.

Held under the theme “Ethiopia’s Two-Decade Pilot Journey: Voices from Partners Implementing Agriculture Insurance”, the forum spotlighted Ethiopia’s evolving landscape in agricultural insurance, highlighting policy gaps, challenges, and future directions.

Solomon Zegeye, Director at Nyala Insurance, pointed out that premium affordability remains a major barrier, particularly for smallholder farmers. “Only large-scale producers can afford current rates,” he noted, adding that without strong policy intervention to enable premium financing, the scale-up of agricultural insurance will remain limited.

Other pressing issues include low awareness among smallholder farmers about the value of insurance, limited distribution channels in rural and remote areas, and the absence of robust policy frameworks to support the sector’s growth.

Also speaking at the forum, Belay Tulu, Director of the Insurance Supervision Directorate at the National Bank of Ethiopia (NBE), shared updates on regulatory reforms under way to address structural bottlenecks.

“We’re working on a new insurance proclamation that expands our mandate beyond supervision to include market development,” said Belay. “Inclusive insurance is broader than microinsurance. It targets unserved populations beyond just the poor.”

Belay added that a Microinsurance Directive is being also drafted to allow member-based institutions, such as cooperatives and community-based groups, to facilitate insurance delivery.

A key highlight of the event was the official launch of the Ethiopia Rural Finance Service Unit (RFSU) under the Ministry of Agriculture. The RFSU announced in the presence of Girma Amente (PhD), Minister of Agriculture and the State Minister of Agriculture, Sofia Kassa is set to play a central role in coordinating and scaling agricultural insurance efforts nationwide, with support from UNDP, JICA, and other development partners, through funding from the Bill & Melinda Gates Foundation.

“The revised Agricultural and Rural Development Policy places strong emphasis on improving access to financial credit for smallholder farmers,” said Dr. Girma. “The government’s focus on the sector has driven inclusive and climate-resilient economic reforms, boosting both production and productivity.”

Pula and its partner insurers are delivering Area Yield Index Insurance (AYII), a comprehensive coverage solution—through the Input Voucher System (IVS). This model links insurance directly to agricultural input purchases, leveraging the existing IVS infrastructure that reaches up to 7 million farmers, in collaboration with the Agricultural Transformation Institute (ATI).

“Pula has long anticipated the establishment of a platform like the RFSU, recognizing the sector’s need for greater coordination. With the RFSU now in place, we are well-positioned to scale our work nationally—with the potential to serve over 7 million farmers across Ethiopia.” said Dagmawi. He also added “We are confident that the RFSU will leverage key learnings from our program and help create an enabling environment that fosters better outcomes for smallholder farmers through expanded, well-coordinated agricultural insurance efforts.”

Pula operates in 20 countries globally, reaching a total of 20+ million farmers. The company entered Ethiopia in November 2022, following the Ministry of Agriculture’s pledge to work with stakeholders to deliver climate risk solutions for Ethiopian farmers and its delegation of responsibility to the Agricultural Transformation Institute (ATI), efforts began to design and pilot a scalable agricultural insurance model.

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The African Development Bank Group and the Federal Government of Nigeria have signed a protocol agreement committing USD500 million over 15 years to extend the Nigeria Trust Fund (NTF), providing long-term business continuity and planning certainty through 2040.

This extension comes after multiple previous renewals, reflecting the enduring value and relevance of Nigeria’s partnership with the African Development Bank.

Dr Akinwunmi Adesina, President of the African Development Bank Group said that the commitment will allow the Bank’s ability to expand hybrid capital instruments, increase securitization, and scale up private sector operations. This move is expected to mobilize more private capital for low-income countries. “Nigeria’s decision today proves that Nigeria is always on the right side. The NTF is the largest we have at the African Development Bank, which is part of the Bank. It helps to co-finance operations in many countries, as well as feasibility studies for some other countries.” he added

The agreement also enables deployment of resources from the fund in innovative treasury, structuring, and other transactions, including balance sheet optimization, structured finance, and catalytic risk-sharing solutions.

The Bank and Nigerian authorities are working on new financial products, updating approval processes, and developing a communications strategy to raise visibility for Nigeria’s contributions.

The Nigeria Trust Fund serves as a fully-fledged financial window of the AfDB. Since its creation, the NTF has financed 92 projects in 33 countries. The Fund has played a crucial role in filling financing gaps in high-impact sectors, particularly in the continent’s least developed countries.

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The Trade and Development Bank Group (TDB Group) has been named Africa’s Bank of the Year at the 2025 African Banker Awards, held during the Annual Meetings of the African Development Bank. The honor recognizes TDB’s continued commitment to inclusive finance, service innovation, and its contribution to Africa’s sustainable economic growth.

TDB’s strength lies in its ability to adapt and lead through reform. Despite a rapidly changing financial landscape, the Bank has maintained its development impact by innovating its capital structure—most notably with the introduction of hybrid capital in 2024—and attracting institutional investors aligned with long-term development goals.

The Bank continues to deliver impactful project and trade financing, while also addressing upstream challenges through concessional finance, technical assistance, and development programs. Its work supports critical priorities such as women’s empowerment, youth employment, and responsible investment across African economies.

Ethiopia is actively courting global investors with bold economic reforms and sectoral liberalization, as it hosts the Invest in Ethiopia – High-Level Business Forum 2025 in Addis Ababa from May 12–13. The event brings together international investors, senior government officials, and development partners to explore opportunities in priority sectors such as renewable energy, agribusiness, ICT, and manufacturing.

Organized by the Ethiopian Investment Commission (EIC), the Ministry of Finance, and the Development Partners Group, the two-day forum signals Ethiopia’s firm commitment to private sector-led growth. The country’s 8.1% GDP growth in 2024 and recent policy reforms have positioned it as one of Africa’s top destinations for investment.

The Forum features high-level ministerial roundtables, sector panels, networking sessions, and the official launch of a new Investment Deal Book, aimed at enhancing transparency and deal-making for foreign investors.

In his opening remarks, President Taye Atske Selassie emphasized the government’s efforts to improve the investment climate by addressing long-standing challenges in foreign direct investment (FDI). “Reforms have been designed to attract FDI, sustain growth, and drive structural transformation,” he noted, adding that infrastructure development and investor-friendly policies are being prioritized to meet Ethiopia’s goal of becoming Africa’s leading economy by 2030.

“We believe we are on the right track to ensure macro-financial stability,” he added. “Our reforms are fundamentally reimagining Ethiopia’s economic future.”

Foreign Minister Gedion Timothewos (PhD) echoed the president’s message, stating that Ethiopia’s young, energetic population, improved logistics, and rapid development of industrial parks make it a natural hub for international investment. He encouraged investors to explore opportunities not just in traditional sectors, but also in mining, energy, and tourism.

Finance Minister Ahmed Shide underlined the importance of macroeconomic stability and structural reforms. “Opening up sectors like telecom, finance, and logistics is already yielding results,” he said. He also highlighted the launch of the Ethiopian capital market as a game-changer in deepening private-sector participation.

EIC Commissioner Zeleke Temesgen Boru (PhD) reported that new investors from 59 countries are participating in the forum—a sign of growing international confidence. He stressed the government’s readiness to provide full support to investors and ensure predictability in policy implementation.

A presentation by Planning and Development Minister Dr. Fitsum Assefa showcased Ethiopia’s natural resources, strategic location, and investment-ready infrastructure, reinforcing the country’s competitive edge in attracting quality investments.

With AfCFTA integration on the horizon, Ethiopia is positioning itself as a regional gateway for investors seeking access to Africa’s fast-growing markets.

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The International Finance Corporation (IFC), a member of the World Bank Group and the largest global development institution focused on the private sector in emerging markets, has appointed Ethiopis Tafara as its Vice President for Africa.

In this leadership role, Ethiopis will oversee IFC’s strategic investment and advisory operations across Africa. He will lead a team of nearly 800 staff members and manage a growing portfolio currently valued at USD17 billion, aimed at boosting job creation and accelerating private sector development in key sectors including infrastructure, agriculture, manufacturing, finance, and telecommunications.

A U.S. national of Ethiopian origin, Ethiopis brings extensive experience from previous senior roles within the World Bank Group. Most recently, he served as Vice President, Chief Risk, Legal & Sustainability Officer for the Multilateral Investment Guarantee Agency (MIGA). He also previously held the position of Vice President and General Counsel at IFC.

“Africa is an increasingly important voice on the global stage,” said Ethiopis. “Though challenges persist, the opportunities are even greater. The continent’s private sector and entrepreneurs are more dynamic than ever before.”

Born in Ethiopia and raised between Ethiopia and Italy, Ethiopis is fluent in Amharic, French, Italian, Spanish, and English. He holds a Juris Doctor (JD) from Georgetown University Law Center and an AB degree from Princeton University. His expertise spans capital markets, corporate law, governance, compliance, and risk management.

Welcoming the appointment, Makhtar Diop, Managing Director of IFC, stated:

“I am thrilled to welcome Ethiopis to this role. His deep and long-standing commitment to Africa’s development and his unique skillset are well-suited to support the continent’s development pathways.”

Ethiopis will be based in Nairobi, Kenya, and succeeds Sérgio Pimenta, who recently retired after nearly three decades of service at IFC.

In the 2024 fiscal year alone, IFC delivered record investment levels across 45 countries in Africa, including 30 classified as low-income or fragile and conflict-affected situations (FCS).

The Commercial Bank of Ethiopia (CBE), in collaboration with global payment leader MasterCard, has introduced both plastic and virtual international prepaid cards, a move set to enhance digital payment accessibility in Ethiopia.

The launch, officiated by CBE President Abe Sano and MasterCard Africa President Mark Elliott, marks a major step toward modernizing Ethiopia’s financial ecosystem. These prepaid cards will enable users to conduct international transactions with greater convenience, supporting online purchases, travel expenses, and cross-border payments.

CBE officials emphasized that the initiative aligns with the bank’s ongoing efforts to expand digital financial services and provide customers with secure, flexible, and globally accepted payment solutions. The virtual card, in particular, is expected to cater to the rising demand for secure online transactions, while the plastic version offers a physical alternative for international spending.

The Ethiopian Electric Power (EEP) announced that it is supplying 265 megawatts of electricity per day to Kenya under the power sales agreement between the two nations.

The 500 kV Ethio-Kenya Converter Station, a critical infrastructure project in East Africa’s energy landscape, is playing a pivotal role in strengthening cross-border power connectivity.

According to Mekonnen Kassie, a maintenance and operations specialist at the station, the facility receives electricity from Wolayta Sodo Substation No. 2 through four 400 kV incoming lines. It then transmits power via 12 converter transformers and 1,680 thyristors, ensuring a steady and efficient flow of electricity to Kenya.

The station operates with two high-voltage direct current (HVDC) poles, each with a capacity of 2,000 megawatts, and facilitates power transmission through a 1,600-kilometer line stretching from Ethiopia to Kenya.

Under the current power sales agreement, Kenya receives 200 megawatts of electricity for 18 hours daily, up until 6 p.m., followed by an additional 65 megawatts for the remaining six hours.

With the capacity to scale up supply, the station is also preparing to support planned power transmission to Tanzania. The broader vision includes expanding Ethiopia’s role in the continental energy market by facilitating power exports to other countries.

To sustain and enhance its contribution, the station is undergoing various capacity-building and infrastructure improvements, aligning with Ethiopia’s long-term strategy to become a regional energy hub.

Pula Advisors Eyes 3 Million Ethiopian Farmers Through its Local Insurance Partnerships

AfDB Secures USD500 Million from Nigeria to Expand Development Fund Until 2040

TDB Group Named Africa’s Bank of the Year

Ethiopia Opens Doors to Global Investors in Energy, ICT, Manufacturing, and Agribusiness

IFC Appoints Ethiopis Tafara as Vice President for Africa

CBE and MasterCard Launch International Prepaid Cards

EEP Supplies 265MW to Kenya Daily