@NBEthiopia – Page 3 – Ethiopian Business Review

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Ethiopia has established 374 additional weekend markets over the past nine months, bringing the total number of operational Saturday and Sunday markets across the country to 1,434. The expansion aims to improve access to goods, stabilize consumer prices, and stimulate local economies through more inclusive trade platforms.

The milestone was revealed during a high-level national macroeconomic and sectoral performance review convened this morning by the Ministry of Trade and Regional Integration. Minister Kassahun Gofe led the session alongside Dr. Belete Molla, Minister of Innovation and Technology. The forum engaged ministry staff and stakeholders in a joint assessment of progress made in the 2017 Ethiopian fiscal year.

The review highlighted major achievements beyond market expansions. Over 2.6 million online business registrations and licenses were processed—marking a 102% achievement against the ministry’s plan. This surge in digital registration reflects the government’s commitment to simplifying and modernizing business procedures.

In a historic first, Ethiopia’s export revenues have surpassed USD 5.3 billion within the same nine-month period—making it the highest figure recorded in the country’s export trade history. The Ministry has set an ambitious target to reach USD 7 billion by the end of the fiscal year.

Efforts in regulating the petroleum sector were also cited as a key success. The ministry noted improved oversight in oil marketing and pricing mechanisms, contributing to better supply stability.

“These achievements are a reflection of the enabling environment created by ongoing macroeconomic reforms,” Minister Kassahun said, crediting institutional collaboration and reform-driven momentum for the performance surge.

The report paints a picture of a country intensifying its trade efforts through local innovation, regulatory improvement, and global engagement—laying the groundwork for more integrated and competitive economic growth.

Siket Bank is positioning itself as a central player in Ethiopia’s industrial renaissance, claiming a significant role in transforming the country’s manufacturing landscape through financial innovation. At a high-level panel discussion themed “Financial Provision for Industrial Productivity”, the bank showcased its evolving strategy to empower local manufacturers and accelerate industrial productivity.

Held alongside the 2025 Manufacturing Industries Exhibition and Fair at the Addis International Convention Center, the panel attracted key figures from federal and city administrations, private sector leaders, development partners, and industry experts. The discussion aligned with the national “Ethiopia Tamirt” (Ethiopia Manufactures) movement, which champions a shift from import dependency to homegrown production and self-reliance.

Panelists discussed the broader role of finance in Ethiopia’s industrial development while spotlighting Siket Bank’s own transformation—from a microfinance institution into a commercial bank. The transition, they noted, has allowed the bank to expand its reach and offer more sophisticated services tailored to the needs of various businesses.

Testimonials from long-standing clients painted a vivid picture of transformation, micro-enterprises nurtured into competitive manufacturing firms. One such testimony came from Abemelek Degu, a plastic manufacturer, who described finance as “essential—as essential as vision itself.” He credited the bank for turning his small-scale operation into a scalable enterprise, saying Siket “transitioned me from zero to hero.”

Another compelling story came from two returnees who, after abandoning overseas migration, launched a local business with just ETB 5,000 in microfinance support from Siket. Today, they run a firm with a capital base exceeding ETB 10 million—a testament to the bank’s role in unlocking entrepreneurial potential for underserved groups.

Siket Bank also unveiled an innovative lending product developed in partnership with the World Bank, employing psychometric testing to assess loan applicants based on personality traits, behavioral consistency, and social indicators rather than physical collateral.

“We have now started piloting this model with select customers,” said Damte Alemayehu, CEO of Siket Bank. “It evaluates long-term relationships, work ethic, family context, and broader social behaviors to determine creditworthiness. This opens new doors for entrepreneurs who are typically locked out of formal finance.”

The psychometric approach is particularly significant for Ethiopia’s large informal sector, where credit exclusion is a persistent challenge. By gauging trustworthiness beyond traditional balance sheets, the bank hopes to expand access to capital for promising small business owners.

Beyond lending innovation, Siket Bank announced key digital milestones: the launch of mobile banking services and the establishment of a modern data center. These developments are part of the bank’s broader push to modernize its operations and serve an expanding customer base that now exceeds 600,000 clients.

“These may seem like simple steps for legacy banks, but for a newly transitioned institution like ours, they represent bold progress,” said Damte. He emphasized the bank’s vision to be a catalyst for inclusive growth in Ethiopia’s shifting financial landscape.

The panel closed with a unified message from stakeholders: Ethiopia’s industrial growth will remain stunted without bold financial innovation.

The Ethiopian Securities Exchange (ESX) has joined forces with FSD Africa and FSD Ethiopia in a landmark partnership aimed at strengthening Ethiopia’s capital markets.This partnership, announced following ESX’s successful launch, signals a coordinated commitment to deepen the financial sector by mobilizing technical, financial, and strategic resources across the three organizations.

Under the agreement, ESX aims to list more than 50 companies across its main and growth markets while establishing a dedicated platform for government and corporate bonds, including Sharia-compliant instruments such as Sukuks. The partnership will also focus on issuer support, investor education, product development, and institutional capacity building to ensure ESX operates at international standards.

The collaboration brings together technical expertise, financial resources, and strategic oversight from all three entities. ESX will lead project management and implementation, while FSD Ethiopia and FSD Africa will provide funding and advisory support. A dedicated ESX Market Development Committee will coordinate efforts to drive sustainable market growth.

Tilahun Esmael Kassahun, CEO of ESX, underscored the significance of the partnership, stating, “Developing a strong and transparent securities exchange is a milestone in Ethiopia’s financial history.” He emphasized that the initiative will broaden funding options for businesses while equipping investors with the knowledge to engage confidently in the market.

Hikmet Abdella, CEO of FSD Ethiopia, highlighted the transformative potential of the collaboration, noting that robust capital markets are critical for economic growth. “By working together, we are creating a sustainable financial system that will support businesses and provide investment opportunities for individuals and institutions participating in Ethiopia’s economic expansion,” she said.

Mark Napier, CEO of FSD Africa, reinforced the broader continental vision behind the partnership. “Building robust capital markets is essential to unlocking Africa’s economic potential,” he said. Napier pointed to Africa’s vast pool of domestic institutional capital—valued at over USD2.3 trillion—as a key driver for sustainable growth, adding that the collaboration with ESX aligns with FSD Africa’s mission to make finance a transformative force across the continent.

The Ethiopia Securities Exchange (ESX) has announced that Ethiopia’s interbank money market (IMM) has surpassed ETB 500 billion in total transaction volume within just six months of operation, marking a significant milestone in the country’s financial sector.

Launched in October 2024 by the National Bank of Ethiopia (NBE), the IMM was established to facilitate short-term borrowing and lending among banks, enhancing liquidity management and improving financial market efficiency. Governed by the Interbank Money Market Rules, the platform has rapidly gained traction, reflecting growing investor confidence and increasing market activity.

The milestone underscores the evolving landscape of Ethiopia’s banking sector, where structured platforms like the IMM are strengthening market transparency and fostering economic stability. As momentum builds, this achievement highlights the potential for further financial sector reforms, deeper investor participation, and a more resilient financial ecosystem in Ethiopia.

Last night, the Sheraton Addis’ Lalibela Hall buzzed with energy as high-ranking government officials, banking and fintech CEOs, prominent business leaders, shareholders, and distinguished guests gathered to celebrate the Cooperative Bank of Oromia’s 20th anniversary. The event was a testament to the bank’s remarkable journey, blending lively celebration with reflections on its transformative impact on Ethiopia’s financial sector.

The bank’s remarkable journey traces back to visionary Haile Gebre Lube, widely regarded as the father of Ethiopia’s cooperative movement. Two decades ago, he championed a revolutionary idea: that cooperation represented the most powerful weapon against poverty. His grassroots mobilization effort saw community members contribute up to 100 ETB each, collectively amassing an impressive ETB 750,000 in seed capital.

This people-powered movement formally established a project office in 2002, with cooperative societies forming the majority of initial shareholders. After securing its commercial license in October 2004, the bank commenced operations in March 2005. Today, maintaining its cooperative roots, over 55% of the bank’s ownership remains in the hands of cooperative societies.

Mamo Mihretu praised the institution as one of the nation’s fastest-growing and most innovative financial institutions. “The Cooperative Bank of Oromia exemplifies modern banking through strong leadership, driving financial inclusion while maintaining its cooperative principles,” he stated.

The governor particularly commended the bank’s responsiveness to regulatory guidance and its alignment with national development goals. “The bank’s leadership has demonstrated exceptional commitment to implementing government directives and supporting economic progress,” Mamo noted. “During our transition to a market-based foreign exchange system, which introduced new market dynamics, Cooperative Bank stood out in its swift and effective adoption of these changes.”

With a customer base of 17 million, the bank’s mobile wallet, Coopay e-Birr, has become one of Ethiopia’s top platforms, processing mobile transactions totaling 3 trillion Birr. The bank has empowered over 1.2 million micro, small, and medium enterprises (MSMEs) with its digital, collateral-free loan offerings called Michu, significantly enhancing financial access for entrepreneurs and small businesses. Michu is Ethiopia’s first uncollateralized digital lending product, powered by Kifiya’s Qena, AI-driven digital lending platform developed in partnership with Mastercard Foundation.

“This platform strengthens collaboration between fintechs and traditional banks, representing a breakthrough in unconventional banking solutions for Ethiopia,” said the governor.

CEO Derbe Asfaw highlighted the bank’s role in transforming living standards by integrating advanced technology and digital solutions. Under its leadership, the bank has launched several innovations, including the SACCO-Link application, which enables cooperatives and unions to engage in digital banking, and the first Coop Remit, a blockchain-based money transfer service in Ethiopia.

Financially, the Cooperative Bank of Oromia has seen substantial growth, with total assets now standing at ETB 189.4 billion and deposits reaching ETB 169.45 billion, reflecting a strong ETB 52.3 billion increase in the last nine months. The bank operates 745 branches and employs 15,000 individuals, positioning itself as a key player in Ethiopia’s banking sector.

The bank’s commitment to sustainability is also evident in its expansion of eco-friendly branches, which operate on renewable energy. Throughout its 20th-anniversary celebrations, the bank has focused on social responsibility and community-driven projects under the initiative “Project 20 for 20th Anniversary.”

As it looks to the future, the Cooperative Bank of Oromia remains committed to driving economic development and financial inclusion across Ethiopia, making it a vital institution in the country’s evolving banking landscape.

Addis Ababa has launched 100 electric buses, marking a major milestone in the city’s push for sustainable urban mobility. This initiative is part of Ethiopia’s broader efforts to modernize public transport, reduce carbon emissions, and decrease reliance on fossil fuels.

Unveiled by the Addis Ababa City Administration, the electric buses are designed to provide a more efficient, comfortable, and environmentally friendly alternative to traditional transport. Equipped with cutting-edge service features—including a prepaid card system for seamless payments—the buses are set to redefine urban commuting in Ethiopia’s capital.

The fleet will be deployed across various routes, enhancing accessibility and reducing reliance on fossil fuels. The initiative aligns with Ethiopia’s broader efforts to promote green energy solutions and ease the city’s notorious congestion.

The launch ceremony was attended by key government figures, including Addis Ababa City Mayor Adanech Abebe and Minister of Transport and Logistics Alemu Sime (PhD), along with other senior federal and city officials.

The Ethiopian government has implemented various measures to support the transition to electric mobility. In April 2024, the Transport and Logistics Ministry introduced over 30 electric buses in Addis Ababa, emphasizing passenger comfort and environmental responsibility. Additionally, plans were announced to procure 100 electric city buses, further underscoring the commitment to building a green economy.

The government has also initiated the construction of public charging stations and is exploring local manufacturing of EV batteries to reduce import reliance. However, challenges remain, including limited charging infrastructure and the need for skilled mechanics to service electric vehicles.

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.

Ethiopia’s Ministry of Innovation and Technology is under intense scrutiny after a parliamentary committee uncovered a budget deficit exceeding half a billion birr (USD 9 million), alongside allegations of financial mismanagement and procedural violations.

The House of People’s Representatives’ Standing Committee on Public Expenditure Management and Control Affairs flagged multiple irregularities, including the misuse of public funds, failure to conduct pre-feasibility studies for key projects, and unauthorized budget reallocations. According to Chairperson Yeshimebet Demise (PhD), several government-funded and donor-financed initiatives were launched without proper consultation, leading to significant inefficiencies and unclear project statuses.

The audit findings revealed that multiple projects suffered from delayed execution and financial mismanagement, with some being terminated prematurely and their budgets reassigned without legal oversight. The committee has instructed the ministry to provide a detailed report on unauthorized expenditures—including transportation rentals, data center construction, and inflated employee salaries—within 15 days.

Concerns were also raised over the ministry’s human resource management, with recruitment processes failing to align with legal frameworks. Officials stressed the urgent need for systematic hiring reforms and the recovery of high-value government assets still unreturned by former employees.

Federal Auditor General Meseret Damte criticized the ministry for its failure to take corrective measures, stating that funds were allocated to projects that remain incomplete. The audit further exposed weaknesses in human resource and asset management, along with payments made outside legal provisions. The Federal Anti-Corruption Commission has been called upon to enforce accountability measures and oversee financial discipline within the institution.

Responding to the scrutiny, Minister of Innovation and Technology Belete Molla (PhD) admitted that audit deficiencies had occurred due to the complex nature of the ministry’s operations. He pledged to implement an action plan to address the financial and operational gaps, with updates to be presented to the standing committee.

He also highlighted that the ministry is engaged in numerous projects under the Digital Ethiopia 2025 initiative, in collaboration with the World Bank and other international partners. The minister assured that steps would be taken to rectify the shortcomings and enhance transparency in project execution.

In a groundbreaking move set to transform Ethiopia’s digital financial ecosystem, Ethio Telecom and MasterCard Africa are exploring a strategic collaboration to introduce cutting-edge digital financial services.

A high-level delegation, led by Ethio Telecom CEO Frehiwot Tamiru and MasterCard Africa President Mark Elliott, engaged in discussions to leverage their respective platforms—Telebirr and MasterCard—to expand financial access, accelerate digital payments, and drive sustainable economic growth.

CEO Frehiwot Tamiru emphasized Ethio Telecom’s strong market position, highlighting its vast customer base and robust infrastructure as key enablers in unlocking new digital opportunities. “Our partnership with MasterCard is driven by a shared vision to revolutionize Ethiopia’s financial sector and empower millions through innovative digital solutions,” she stated.

Echoing this sentiment, Mark Elliott, Division President, Mastercard Africa underscored MasterCard’s commitment to the Ethiopian market, citing Ethio Telecom’s rapid growth and infrastructure capabilities as a solid foundation for success. “This collaboration aligns with our mission to drive financial inclusion and create a more connected and competitive digital economy,” he said.

Ethiopian consumers are facing yet another fuel price increase as the government adjusted petroleum prices overnight, marking the second hike in just two months. The Federal Ministry of Trade and Regional Cooperation announced that the new prices took effect yesterday.

The latest adjustment sets a liter of gasoline at ETB 112.67, while white diesel now costs ETB 107.93 per liter. This follows a significant increase in January 2025, when gasoline prices crossed the ETB 100 per liter mark for the first time, reaching ETB 101.47, while white diesel was priced at ETB 98.98 per liter. The March hike represents an additional 11% rise in gasoline prices and a 9% increase in diesel prices within just two months.

The January fuel price adjustment was attributed to fluctuations in global oil markets and ongoing economic reforms. However, the latest hike comes unexpectedly, as authorities had previously signaled that fuel prices for March would remain unchanged from February. The sudden revision has left businesses and consumers concerned about its impact on transportation, logistics, and the overall cost of living.

With inflation already a pressing issue in Ethiopia, experts caution that consecutive fuel price hikes could further drive up costs across various sectors. Both consumers and businesses are expected to keep a close watch for any potential price adjustments in the coming months.

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374 New Weekend Markets Launched, Total Reaches 1,434 Nationwide

Siket Bank Claims At the Forefront of Ethiopia’s Manufacturing Transformation

ESX Partners with FSD Africa and FSD Ethiopia to Boost Capital Market Growth

Ethiopia’s Interbank Money Market Surpasses ETB 500 Billion in Transactions

From Grassroots to ETB 189B: The Cooperative Bank of Oromia’s 20-Year Journey in Redefining Inclusive Finance

Addis Ababa Rolls Out 100 Electric Buses

CBE and MasterCard Launch International Prepaid Cards

Ethiopian Innovation Ministry Under Fire for USD9 Million Budget Deficit and Unauthorized Spending

Telebirr and MasterCard Platforms to Power Ethiopia’s Digital Finance Expansion

Ethiopia Implements Second Fuel Price Hike in Two Months, Further Raising Inflation Concerns