@PMEthiopia – Page 2 – Ethiopian Business Review

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The Ethiopia Finance Forum 2025 officially opened yesterday at the Museum of Art and Science in Addis Ababa, gathering over 150 financial institutions, senior policymakers, and international experts to deliberate on the future of Ethiopia’s financial landscape.

During a high-profile panel on “Financial Inclusion and Deepening: Progress So Far and Priorities Ahead,” Abe Sano, President and CEO of the Commercial Bank of Ethiopia (CBE), offered a frank assessment of the bank’s efforts to broaden access to finance.

“Access to finance is something we should have done more about—especially for underserved communities,” Sano admitted. “We have long focused on empowering state-owned enterprises and major business clients, but we recognize the need to do more for individuals and MSMEs.” The CBE has yet to establish a presence in 270 woredas across the country.

Abe emphasized that while CBE currently serves about 140,000 personal borrowers and only 10,000 under commercial finance, the bank has financed over 782,000 customers with ETB 8.8 billion through digital channels. He added that CBE is not detached from digital transformation efforts like Telebirr: “We’re financiers behind those platforms as well.”

Notably, Abe highlighted the bank’s recent digital financing initiative for farmers, which has onboarded more than 927,000 users in Oromia and disbursed ETB 14 billion in loans. In the housing sector, CBE financed 349,000 condominium units worth ETB 112 billion. However, he conceded that support for micro and small businesses remains limited, with just 9,000 MSME borrowers. “That’s an area we need to scale up significantly,” he stated.

On the savings front, CBE’s outreach to women has seen considerable success. “We now have over 8 million women savers, holding ETB 145 billion in deposits,” Sano revealed.

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The European Investment Bank (EIB) and the National Bank of Ethiopia (NBE) have signed a Memorandum of Understanding (MoU) aimed at strengthening collaboration in support of Ethiopia’s green and sustainable development ambitions.

The agreement, signed by Deputy Governor of the NBE, Solomon Desta, and Leyla Traoré, the EIB’s Representative for Ethiopia and the African Union, marks a key milestone in deepening the relationship between the two institutions.

Deputy Governor Solomon emphasized that the MoU is a significant step toward fostering greater cooperation and aligning efforts to build a more inclusive and environmentally resilient economy. He noted that the EIB’s commitment will play a pivotal role in Ethiopia’s transition toward a greener future.

Leïla Traoré highlighted the country’s progress in the green development agenda and commended Ethiopia’s leadership in this area. She also reaffirmed the EIB’s readiness to continue supporting Ethiopia’s climate-focused reforms and sustainable finance initiatives.

The MoU builds on high-level discussions held in April between Ethiopia’s Finance Minister, Ahmed Shide, and EIB Vice President Ambroise Fayolle. Those talks focused on expanding collaboration across vital sectors. The EIB expressed interest in financing Ethiopia’s planned new international airport—a critical infrastructure project poised to enhance connectivity and economic growth.

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.

The Ministry of Transport and Logistics, in partnership with Ethio telecom, has officially launched three national digital systems: the Cross-Country Public Transport Service System, the Integrated Fuel Supply System Solution, and the National Traffic Point-Based Penalty Management System.

These comprehensive platforms are designed to significantly enhance Ethiopia’s transport infrastructure, modernise public service delivery, and foster transparency across the fuel and traffic management chains.

The Cross-Country Public Transport Service System introduces a unified digital framework for managing bus ticketing, licensing, compliance, and payments. Travellers can now book and pay for tickets using their mobile phones, in multiple local languages including English, via platforms such as telebirr and other financial institutions. This solution is set to reduce delays, prevent fraud, improve data transparency, and enhance the overall efficiency of public transport nationwide.

The Integrated Fuel Supply System Solution enables fuel stations across the country to accept payments from all banks and wallets, offering real-time data integration for government oversight. By connecting all financial institutions with a central fuel management system, it improves market control, curbs illicit fuel trade, and ensures accountability from distribution to retail. Drivers can now refuel anywhere in Ethiopia using their preferred digital payment method.

The National Traffic Point-Based Penalty Management System digitises the enforcement of traffic laws, replacing outdated manual systems. It facilitates centralised recording of driver data, tracks infractions through a point-based mechanism, and streamlines penalty payments. This modern system is expected to promote safer roads, improve legal compliance, and support policymaking with reliable data. It also reduces the administrative burden on regional transport offices and supports integration via Ethio telecom’s TeleCloud without additional infrastructure investment.

Ethio telecom emphasised that the systems were developed by local private software developers and feature full API integration for interoperability with financial institutions.

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Ethiopia has recorded its highest-ever coffee export revenue, with the sector generating USD 1.868 billion over the past ten months of the current fiscal year — a historic milestone for the nation’s most iconic export.

The Ethiopian Coffee and Tea Authority announced today that 354,302 tonnes of coffee were exported during the period, exceeding the national target by 147% in volume and 142% in revenue. This performance surpasses all previous annual records in the country’s export history.

According to Dr Adugna Debela, Director General of the Authority, the figures represent an increase of 70% in volume and 87% in revenue compared to the same period last fiscal year. The sector exported 145,316.3 more tonnes, generating an additional USD 869.13 million, reflecting both growing global demand and Ethiopia’s enhanced export capacity.

Dr Adugna highlighted that Germany, Saudi Arabia, and the United States ranked as the top three destinations for Ethiopian coffee exports during the reporting period. Germany imported 61,239 tonnes, contributing USD 295 million (17% of total revenue), followed closely by Saudi Arabia with 60,182 tonnes valued at USD 290.7 million (20%), and the United States with 28,299 tonnes accounting for USD 192 million (10%).

“This outstanding achievement is the result of a well-coordinated national effort,” said Dr Adugna. “From farmers and cooperatives to exporters, regional authorities, and federal institutions — all stakeholders played a vital role. We are deeply grateful for their commitment and determination.”

He further expressed optimism that the final two months of the fiscal year will build upon this momentum, reinforcing Ethiopia’s status as a world leader in premium coffee production.

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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Ethiopia has been selected by the International Atomic Energy Agency (IAEA) to host a bachelor’s degree program in nuclear science and technology for African member states.

The announcement was made by Ethiopia’s Ministry of Innovation and Technology, which revealed that a strategic agreement has been signed between the IAEA, the Government of China, Tsinghua University, and Addis Ababa Science and Technology University (AASTU) to establish the continent’s first IAEA-backed undergraduate program in nuclear engineering based in Ethiopia.

The initiative is designed to build long-term capacity in nuclear science across the African continent—particularly in sectors such as health, agriculture, mining, environmental management, manufacturing, and energy. The program will also serve Ethiopia’s domestic needs by nurturing a new generation of nuclear engineers and technical experts.

Minister of Innovation and Technology, Dr. Belete Molla, described the agreement as a turning point in Ethiopia’s scientific advancement. “Ethiopia is emerging as a gateway to science and technology in Africa,” he said. “By hosting this program, we are not only accelerating our own development but offering access to a critical knowledge frontier for our African partners.”

He noted that Ethiopia’s selection followed an extensive negotiation process, during which its institutional readiness and regional relevance were emphasized. The program will support the country’s broader economic goals by integrating peaceful nuclear technology applications into national development strategies.

As part of the agreement, up to ten Ethiopian professionals will undergo a six-month specialized training at Tsinghua University in China—one of the world’s leading institutions in nuclear science. Upon their return, they will support the delivery of the degree program in collaboration with experts from China and the IAEA.

IAEA Deputy Director General for Technical Cooperation, Hua Liu, expressed confidence in Ethiopia’s capacity to lead the initiative. He emphasized the program’s broader economic implications, noting that the IAEA and the Chinese government will provide laboratory infrastructure and other essential resources to support implementation.

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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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The Ethiopian Ministry of Agriculture has announced sweeping progress in its nationwide soil and water conservation efforts, with more than 21,000 streams rehabilitated and over 3.7 million hectares of land physically developed as part of a broader strategy to combat climate change and bolster agricultural productivity.

The initiative, which has been underway since the start of the fiscal year, is part of a larger plan to develop 4.6 million hectares through integrated watershed management and sustainable land use practices. The campaign, spearheaded under the slogan “Our Soil Resources for Our Prosperity,” has mobilized millions of Ethiopians in a coordinated push toward environmental resilience and food security.

Speaking at a high-level seminar evaluating this year’s progress, Professor Eyasu Elias, State Minister of Natural Resources Development, emphasized that the program is critical in mitigating the effects of climate change while laying the foundation for a production-led green economy.

“Our integrated watershed development works are being carried out across all regions, engaging communities to protect and restore land while enhancing agricultural productivity,” he stated. “This is not just about conservation—it’s about transforming livelihoods and ensuring sustainable growth.”

The campaign has seen unprecedented public participation, with over 19.9 million citizens contributing 30 to 60 days of labor per year in soil terracing, afforestation, and gully rehabilitation. According to Chief Executive of the Natural Resources at the Ministry of Agriculture, Fanose Mekonnen, the collective effort represents an estimated ETB 16 billion in mobilized manpower, showcasing the scale of Ethiopia’s community-driven development model.

In addition to new developments, the ministry has prioritized renovating and upgrading past conservation projects, rehabilitating an additional 589,000 hectares of previously degraded land. Efforts also include monitoring tree nurseries, identifying new afforestation sites, and preparing millions of planting pits to ensure long-term ecological benefits.

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.

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CBE’s Abe Sano Admits Gaps in Financial Inclusion, Highlights Billions in Strategic Lending

EIB and National Bank of Ethiopia Sign MoU to Boost Sustainable Development

Ethiopia Finance Forum 2025 Opens with Zero Borrowing Milestone

Ethiopia Unveils Nationwide Digital Systems to Transform Transport, Fuel and Traffic Management

Ethiopia Breaks Coffee Export Record, Earning USD 1.87 Billion

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

Ethiopia to Launch Africa-Focused Nuclear Engineering Degree Program with IAEA Backing

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

Ethiopia Reclaims 3.7 Million Hectares Through Nationwide Soil and Water Campaign

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