@MoF_Ethiopia – Page 3 – Ethiopian Business Review

The Ethiopia Finance Forum 2025 officially kicked off this morning at the Ethiopia Museum of Art and Science, bringing together a diverse array of stakeholders from the financial sector, senior government officials and global industry leaders. The two-day event, hosted by the National Bank of Ethiopia (NBE), is set to feature over 150 financial institutions, policymakers, development partners, and industry leaders.

The opening ceremony was marked by the presence of President Taye Atske Selassie and Mamo Mihretu, Governor of the National Bank of Ethiopia, both of whom underscored the forum’s significance in charting a new course for the country’s financial landscape.

In a historic announcement, Governor Mamo revealed that government borrowing from the National Bank has dropped to zero for the first time in 12 years. He recalled that Ethiopia’s financial sector has faced numerous challenges, including high inflation and severe foreign currency shortages. To address these issues, he said, the country has embarked on a comprehensive macroeconomic reform agenda.

Governor Mamo noted that efforts to realize the macroeconomic reform vision have already yielded results, including easing the foreign currency crunch and laying the groundwork for a stronger private financial sector.

He added that the reform has helped make Ethiopia’s financial system more competitive, market-oriented, and digitized, with improved security and efficiency.

PresidentTaye Atsikaselasi, in his remarks, praised the NBE’s leadership in fostering economic reform and encouraged deeper collaboration between regulators, investors, and citizens to support sustainable financial development. He also recommended three critical need for Ethiopia’s financial sector to broaden its client base and geographic reach, lead the nation’s digital transformation, and promote financial inclusivity to sustain growth.

The Ethiopia Finance Forum 2025 continues tomorrow with breakout sessions, panel discussions, and networking events. Participants are expected to deliberate on fintech innovation, public-private partnerships, ESG finance, and regional financial integration.

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The House of People’s Representatives has approved a series of critical agreements aimed at accelerating Ethiopia’s development across key sectors, during its 29th regular session of the 6th Parliament’s 4th year.

The House ratified two major loan agreements, endorsed the establishment of a pan-African finance institution, and approved a new air transport accord with a European partner. The proclamations were presented by Assistant Minister of State for Finance, Meseret Haile, who requested that they be moved directly to second reading. Following strong support from parliamentarians, the House deliberated on the proclamations in detail and granted approval.

Among the approvals was a budget support loan agreement with the Government of Italy, aimed at enhancing Ethiopia’s environmental sustainability and green economy goals. Another agreement, signed with the International Development Association, will support the country’s Education Sector Transformation Program, a key pillar in human capital development.

The House also ratified the agreement establishing the African Finance Corporation, with only three abstentions. Concluding the session, lawmakers unanimously endorsed a bilateral air transport agreement with the Federal Government of Austria, a move expected to bolster air connectivity and aviation cooperation.

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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Korea EXIM Bank has pledged USD871 million to support 11 major infrastructure projects across Ethiopia, reaffirming the deepening partnership between the two countries during a high-level Development Cooperation Policy Dialogue hosted by Ethiopia’s Ministry of Finance. The announcement marks a significant milestone in over 70 years of bilateral relations, with the new commitment focused on key sectors such as transport, energy, health, and technology. The investment aligns with Ethiopia’s ongoing reform agenda and aims to bolster inclusive and sustainable development.

State Minister of Finance, Semereta Sewasew, expressed appreciation for Korea’s continued support and underscored the importance of such partnerships in accelerating the country’s development priorities. She emphasized that the government is working to ensure all development cooperation is effective, coordinated, and responsive to Ethiopia’s emerging needs. Ambassador Jung Kang of Korea highlighted the historical and future-oriented nature of Ethiopia-Korea relations, reaffirming Korea’s readiness to strengthen cooperation in trade, investment, cultural exchanges, and people-to-people ties.

Korea’s delegation included officials from KOICA, Korea EXIM Bank, KOFIH, and KOPIA, each presenting updates on projects aimed at supporting Ethiopia’s long-term development. KOICA is currently managing programs valued at USD183.2 million, targeting areas such as manufacturing growth, climate resilience, healthcare improvement, and social inclusion. KOFIH detailed ongoing efforts to enhance Ethiopia’s healthcare systems, while KOPIA presented agricultural development initiatives, particularly focused on improving soil fertility and crop resilience in response to climate challenges.

Ethiopian representatives provided updates on the implementation of critical infrastructure projects, including road construction and energy access, underscoring the government’s commitment to delivering results. Both sides agreed on the importance of scaling up large-scale programs, engaging the private sector, and institutionalizing regular consultations to monitor progress and ensure lasting impact.

The meeting concluded with a shared vision to elevate Ethiopia-Korea relations through strategic development financing, technical cooperation, and shared growth.

Ethiopia’s federal government and regional states have collectively shattered tax revenue records, exceeding ETB 1 trillion in the fiscal year leading up to May 2025, according to a landmark announcement by the Ministry of Revenue. This milestone signals a significant economic shift and reflects the government’s aggressive efforts to modernize its tax system and broaden its revenue base.

Revenue Minister Aynalem Nigusse presented the impressive figures to the House of People’s Representatives on May 6th, highlighting that the federal government alone contributed ETB 720 billion to the total. While this achievement represents a robust ETB 279 billion surge (74.56%) compared to the same period in 2024, the Minister emphasized that this is merely a stepping stone towards meeting Ethiopia’s ambitious development goals.

“According to my current report, in April, ours and the regions’ combined revenue will exceed one trillion [birr]. The federal government has reached 720 [billion birr] today,” Minister Aynalem declared, underscoring the momentum behind the revenue surge.

The Ministry of Revenue itself exceeded its nine-month target, collecting ETB 653.2 billion against a planned ETB 646.7 billion – a testament to the efficiency of its collection efforts. This success is attributed to key policy changes, including revisions to the excise tax, amendments to the Value Added Tax (VAT) and Export Incentive Scheme (ETI) proclamations, and a concerted push to expand the tax base. Specifically, the July 2024 shift in the foreign exchange transaction system has significantly boosted VAT collection.

The revenue breakdown reveals a balanced contribution, with ETB 345.93 billion stemming from domestic taxes and ETB 307.3 billion generated from export duties and taxes, showcasing Ethiopia’s diversification of revenue streams.

Despite the record-breaking achievement, Minister Aynalem Nigusse cautioned that challenges remain. “While our country’s tax compliance level is improving gradually, the tax administration’s efforts to collect indirect taxes in particular are being tested by various challenges,” she noted, pointing to persistent issues with taxpayer awareness and attitudes towards VAT.

Looking ahead, the Ethiopian government has set its sights on collecting ETB 1.5 trillion in taxes for the full 2024/2025 fiscal year, with the federal government expected to contribute ETB 900 billion and regional governments ETB 600 billion.

More importantly, the government is committed to increasing tax revenue as a percentage of GDP. Minister Aynalem outlined a plan to boost tax revenue from 6.8% of GDP this year to 7.8% by the end of 2025, and ultimately to 10% within the next three years.

“Achieving this will require solving problems in tax policy and administration,” she explained, highlighting the government’s commitment to streamlining processes, improving taxpayer education, and leveraging digital solutions to control economic activity and formalize the informal economy.

Source: DW Amharic

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Heineken Ethiopia, in partnership with Mahibere Hiwot for Social Development (MSD), officially handed over a new ETB 33 million animal fattening and food processing project today. The initiative is designed to uplift impoverished households in Kilinto and Koye Fetche through sustainable, livestock-based, and small-business income generation schemes.

Targeting 75 households—30 in Kilinto and 45 in Koye Fetche—the project aims to bolster grassroots livelihoods by integrating communities into profitable agricultural value chains. Beneficiaries will engage in animal fattening, dairy production, poultry farming, and small-scale agribusinesses, sectors that remain essential for local food security and economic resilience.

Speaking at the launch ceremony, Heineken Ethiopia’s Managing Director, Bart De Keninck emphasized the transformative impact of livestock farming on rural and peri-urban communities. They pledged continued support through technical training, market linkages, and sustainable management practices to ensure the project’s long-term success.

The multi-pronged initiative provides selected households with livestock, feed, veterinary services, training in food processing, and business development skills. It places a strong emphasis on empowering women, female-headed households, and people with disabilities, identified through a collaborative selection process involving Heineken, MSD, community members, and local government representatives.

Beyond economic upliftment, the project seeks to strengthen social cohesion and nurture local entrepreneurship, with Heineken pledging continued support through technical capacity building, market linkages, and the promotion of sustainable farming practices.

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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).

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Ethiopia’s ambition to join the World Trade Organization (WTO) by March 2026 received renewed momentum as the U.S. voiced firm support during high-level talks at the 2025 IMF-World Bank Spring Meetings. In a strategic meeting, Ethiopia’s Minister of Finance, Dr. Eyob Tekalign, updated Neil J. Beck, Assistant U.S. Trade Representative for WTO and Multilateral Affairs, on Ethiopia’s reform-driven progress toward accession.

Beck praised the ongoing efforts and reaffirmed America’s commitment to supporting Ethiopia’s integration into the global trading system. The two officials pledged to deepen cooperation, marking a key step toward Ethiopia’s long-sought WTO membership—one expected to enhance the nation’s investment climate, trade capacity, and economic diplomacy on the world stage.

In a decisive move that signals Ethiopia’s growing appetite for foreign investment, the Council of Ministers has approved a draft proclamation that will allow foreigners to own or possess immovable property in the country. The new legislation, discussed during the Council’s 44th regular session, marks a pivotal shift in Ethiopia’s real estate policy, traditionally closed to non-citizens.

Government officials underscored that the framework has been designed to stimulate capital inflows without compromising the land rights of Ethiopian citizens. By establishing a clear legal structure for foreign ownership, authorities aim to unlock large-scale investment in housing development, address the chronic mismatch between housing supply and demand, and create new employment opportunities in construction and related sectors. The draft proclamation, now set to be debated by the House of People’s Representatives, is seen as a cornerstone in Ethiopia’s broader strategy to make its urban landscape more accessible and investor-friendly.

The session also tackled other key resolutions aligned with Ethiopia’s vision for structural transformation. One of the standout decisions was the approval of a regulation to implement the African Continental Free Trade Area (AfCFTA) tariff reduction on goods. Once published in the Federal Gazette, the regulation—set to be enforced within a month—will facilitate freer trade among African nations by cutting tariffs that often hinder intra-continental commerce. The Council emphasized that this measure is crucial for accelerating regional economic integration, expanding market linkages, and strengthening Ethiopia’s role in Africa’s evolving value chains.

The Council also ratified Ethiopia’s move to join the African Finance Corporation (AFC), an institution that offers financial and technical assistance to both public and private sector projects across the continent. Membership in the AFC is expected to unlock new funding avenues for critical infrastructure and industrial development, sectors considered vital for long-term economic resilience.

Meanwhile, two interest-free financial assistance agreements—one with the Government of Italy and the other with the International Development Association—were also endorsed. These agreements will support the country’s environmental and green economy initiatives, as well as transformative reforms in the education sector. Officials noted that both loans are in full alignment with Ethiopia’s debt sustainability framework and offer generous grace and repayment periods.

To improve institutional efficiency and customer satisfaction, the Council further discussed and approved new regulations on service fees for the Ministry of Transport and Logistics and the Civil Society Organizations Authority. The changes are intended to reflect the cost of service provision while remaining sensitive to public affordability.

Wrapping up the session, the Council approved a draft proclamation to ratify the bilateral air transport agreement signed with Austria. The pact is expected to strengthen diplomatic and commercial ties, broaden market opportunities for Ethiopian Airlines, and contribute to tourism, foreign investment, and job creation.

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The European Investment Bank (EIB) is considering financing Ethiopia’s planned new international airport, a move that signals deepening engagement in the country’s infrastructure ambitions. The announcement followed a high-level meeting between Ethiopia’s Finance Minister Ahmed Shide and EIB Vice President Ambroise Fayolle, where both sides reaffirmed their commitment to intensify development and investment cooperation.

During the discussion, Minister Ahmed Shide expressed appreciation for the EIB’s sustained backing of Ethiopia’s priority areas, particularly SME financing, water and sanitation, and women’s entrepreneurship development. These sectors are widely seen as pivotal to the country’s economic and social transformation.

Fayolle reaffirmed the Bank’s commitment to supporting Ethiopia’s long-term development goals, noting that EIB is now exploring options to contribute to the financing of the planned international airport, which is expected to serve as a major logistics and investment hub for the Horn of Africa.

Both parties agreed to deepen their collaboration, with additional sectoral discussions expected during the upcoming visit of senior EIB officials to Ethiopia.

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Ethiopia Finance Forum 2025 Opens with Zero Borrowing Milestone

Ethiopian Parliament Approves Major Loan and Partnership Agreements

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

EXIM Bank of Korea Anchors USD871M Investment in Ethiopia’s Growth Sectors

Ethiopia Exceeds ETB Trillion in Tax Revenue

Heineken Ethiopia Launches ETB 33 Million Livelihood Project to Empower Vulnerable Families in Kilinto and Koye Fetche

IFC Appoints Ethiopis Tafara as Vice President for Africa

Ethiopia’s WTO Bid Gains Strong U.S. Backing

Ethiopia To Open Real Estate Market to Foreigners In New Draft Law

European Investment Bank Eyes Support for Ethiopia’s New International Airport