@PrivateSector – Ethiopian Business Review

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The House of People’s Representatives has reviewed two landmark draft proclamations—one proposing payments for ecosystem services and the other reforming agricultural extension systems. These initiatives could reshape how natural resources and farming support systems function in Ethiopia.

During its 32nd regular session, the House referred both draft proclamations to their respective standing committees for in-depth review and stakeholder consultation, following their unanimous endorsement by the Council of Ministers in its 45th regular meeting earlier this week.

The draft proclamation on ecosystem services fees, presented by Chief Government Whip, Tesfaye Beljige (PhD), highlights Ethiopia’s untapped ecological capital and the urgent need to protect it. Stressing that Ethiopia’s diverse ecosystems are under mounting pressure due to unsustainable practices, he noted the proposal aims to create a legal structure that allows federal and regional governments, NGOs, and the private sector to contribute to and benefit from ecosystem service payments.

The draft law on multi-stakeholder agricultural extension services, also presented by Tesfaye, seeks to overhaul Ethiopia’s decades-old, government-only approach. The reform would open the door for private actors, NGOs, cooperatives, and professional associations to deliver agricultural support services. The goal is to improve quality, accessibility, and efficiency—backed by digital tools and accountability mechanisms.

These legislative proposals follow the Council of Ministers’ 45th regular session, held earlier this week, which approved both drafts and forwarded them to the House. The Council emphasized the growing demand for resilient agricultural systems and sustainable resource management, endorsing the proposed frameworks as essential for long-term development.

The ecosystem services proclamation (No. 18/2017) has been assigned to the Standing Committee on Water, Irrigation, Lowland Areas, and Environmental Development—working in collaboration with the Standing Committee on Planning, Budget, and Finance. The agricultural extension proclamation (No. 19/2017) has been forwarded to the Standing Committee on Agricultural Affairs.

If passed into law, the bills could introduce new financing models for conservation, boost farmer productivity, and diversify participation in key sectors of the economy.

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.

The National Bank of Ethiopia (NBE) successfully conducted its first bi-weekly foreign exchange auction today, marking a key milestone in its ongoing efforts to stabilize the forex market.

According to NBE’s official announcement, the weighted average exchange rate for successful bids settled at Birr 131.7095 per US Dollar, with 12 banks securing foreign exchange allocations.

This auction is part of the central bank’s broader strategy to enhance forex liquidity for the private sector following Ethiopia’s recent macroeconomic reforms. It follows NBE’s decision to launch regular bi-weekly auctions, a move driven by improved forex reserves and increased capital inflows.

The next auction is scheduled to take place in two weeks, with details on the exact date and time to be disclosed one day prior.

By maintaining a structured approach to foreign exchange distribution, the NBE aims to reinforce market confidence while supporting broader economic stability. Market participants will closely monitor upcoming auctions to assess trends in forex availability and pricing.

House Reviews Landmark Bills to Monetize Ecosystems and Modernize Agriculture

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

Ethiopia’s Central Bank Concludes First Bi-Weekly FX Auction at ETB 131.71