@UNDP_Ethiopia – Ethiopian Business Review

The Ministry of Finance has announced that it disbursed over ETB 300 billion in subsidies for basic inputs over the past eight months, while effectively managing the national budget deficit, mobilizing unprecedented levels of foreign resources, raising domestic revenue, and ensuring sound financial governance. According to Finance Minister Ahmed Shide, these measures are part of the government’s broader macroeconomic reform program, which he says is being implemented successfully through the Ministry’s adherence to fiscal discipline, inflation control, and tax policy enforcement.

The remarks were made during a review meeting with the House of People’s Representatives’ Standing Committee on Planning, Budget, and Finance, which assessed the ministry’s performance over the past eight months. Minister Shide emphasized that prudent financial management has strengthened the macroeconomic reform agenda, enabling the government to support key sectors and maintain fiscal discipline.

State Minister Dr. Eyob Tekalign highlighted additional achievements, including efforts to curb rising living costs, public awareness campaigns on tax policies, and improved cash flow management—particularly in ensuring timely budget disbursements to regional administrations. He also noted corrective actions taken on audit findings and reaffirmed the ministry’s commitment to further reducing inflationary pressures in the coming fiscal year.

Committee Chairman Desalegn Wedaje commended the ministry’s overall performance but called for improvements in public project execution, government asset management, and electronic procurement systems. He also stressed the need for better oversight of regional project financing and audit compliance.

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.

Ethiopia’s horticulture sector has delivered a robust USD366 million in revenue over the past eight months, reinforcing its position as one of the nation’s top three foreign exchange generators, the Ministry of Agriculture announced.

Speaking at the opening of the 9th Hortiflora Expo at Millennium Hall, Agriculture Minister Girma Amente (PhD) highlighted the sector’s growing economic impact, emphasizing its role in job creation—particularly for women, who make up over 80% of the workforce.

The horticulture industry—spanning flowers, fruits, vegetables, and herbs—has not only boosted exports but also spurred the growth of small, medium, and large enterprises across Ethiopia. However, Minister Girma noted that fruits, vegetables, and herbs remain underutilized in terms of export potential.

With global consumer trends shifting toward healthier diets, the government is implementing policy and sector reforms to attract more private investment and maximize opportunities in high-demand markets.

Organized by the Ethiopian Horticultural Producers and Exporters Association (EHPEA), this year’s expo—under the theme “Horticulture for Sustainable Ethiopia”—brings together ministers, producers, diplomats, and industry stakeholders to explore key challenges and innovations.

✔ USD366M earnings in 8 months – Floriculture leads, but fruits/vegetables untapped.
✔ Women dominate workforce – Over 80% of jobs held by female workers.
✔ Policy reforms underway – Govt. aims to boost private sector participation.
✔ Expo highlights sustainability – Focus on agro-logistics, EU compliance, and green growth.

TOYO, a solar solution company, has unveiled ambitious plans to expand its solar cell manufacturing capacity in Ethiopia by an additional two gigawatts (GW), taking its total production capacity to 4GW. This expansion follows the completion of Phase 1 of TOYO’s state-of-the-art facility in Hawassa, which is set to commence production in the second quarter of 2025.

The new expansion, which is part of a broader USD47 million investment, will significantly bolster TOYO’s ability to meet the increasing global demand for high-performance solar cells. Phase 1 of the facility, which was announced in October 2024 and is set to be fully operational by mid-2025, was designed with a capacity of 2GW, a milestone for the company in its mission to lead the solar industry globally.

Junsei Ryu, CEO and Chairman of TOYO, explained, “This expansion is a direct response to the strong global demand for solar energy solutions. The interest in our products, even before Phase 1 is fully operational, is a testament to the strength of our strategic vision and the pivotal role Ethiopia plays in our global expansion.”

The expansion will take place in Hawassa, a growing hub for Ethiopia’s renewable energy industry, and is expected to be completed by July 2025, with full production slated to begin by August.

This new facility, which will occupy an additional 28,000m² of space adjacent to the existing site, will significantly reduce the timeline for development due to the existing infrastructure in place. With a keen focus on sustainability, TOYO aims to reduce its carbon footprint while providing cutting-edge solar solutions to meet global energy needs.

In a show of confidence in the Ethiopian market, TOYO also secured a major $150 million supply contract in November 2024, further solidifying Ethiopia’s role as a key player in the global renewable energy sector.

Ethiopian Govt Disburses ETB 300 Billion in Subsidies, Cuts Inflation Amid Economic Reforms

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

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

Ethiopia’s Horticulture Sector Generates USD366 Million in Eight Months

TOYO Commits USD47Million to Expand Solar Cell Production in Ethiopia, Reaching 4GW Capacity