@WorldBankAfrica – Ethiopian Business Review

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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.

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.

Ethiopia and Uganda have elevated their bilateral relations to unprecedented levels with the signing of eight comprehensive cooperation agreements during the 4th Joint Ministerial Commission session in Addis Ababa, according to an exclusive report by Soft Power News. The landmark agreements, covering aviation, energy, water resources, and agriculture among other sectors, establish a new framework for enhanced economic integration between the two nations.

The aviation sector emerged as a major beneficiary, with three distinct agreements including a Bilateral Air Services Agreement that promises to revolutionize regional connectivity. Other significant MoUs address industrial cooperation, energy collaboration, and technical exchanges in agriculture and fisheries – each designed to create tangible economic benefits for both countries.

Dr. Gedion Timotheos, Ethiopia’s Minister of Foreign Affairs, framed the agreements as critical tools for addressing shared challenges. “From Nile water management to regional security through IGAD, these accords strengthen our capacity to solve transnational issues,” he remarked. The minister emphasized the potential for joint infrastructure projects and knowledge transfers to accelerate economic development.

Uganda’s Foreign Minister, Hon. Gen. Odongo, characterized the session as a “strategic leap forward” rather than mere diplomatic routine. Noting the six-year interval since the last JMC, Odongo revealed that technical teams had been working throughout the period to prepare the ground for these ambitious agreements. “We’re not just maintaining relations – we’re building an economic bridge between East Africa’s hinterland and the Horn,” he stated.

In 2024, trade volume between Ethiopia and Uganda reached USD 5.46 million. Dr. Kassahun Gofe, Ethiopia’s Minister for Trade and Regional Integration, said the new agreements would deepen the existing friendship between the two nations and upgrade their trade cooperation framework.

Dr. Kassahun also highlighted that the MoUs will boost efforts to expand market share, strengthen private sector collaboration, and create a more conducive environment for doing business. He further noted that the two countries have agreed to cooperate on trade promotion, exchange of trade-related information and technologies, and support regional economic integration efforts.

Importantly, both nations have also committed to working together in mobilizing regional trade and investment potential through the implementation of the African Continental Free Trade Area (AfCFTA), signaling their intent to play a leading role in broader continental integration.

The Ethiopian Embassy in Djibouti has announced that the Tana Nesh Ferry has set sail on its inaugural journey from Dorale Ferje-Bezou Port in Djibouti to Gorgora in Ethiopia.

The 38-meter vessel, with a capacity for 200 passengers, represents a significant investment in regional infrastructure. Its journey along the Dikil-Galafi route is expected to take approximately seven days, with arrival in Gorgora, Ethiopia, anticipated within three months.

The embassy emphasized the comprehensive safety measures implemented for this historic crossing, including the deployment of two tugboats and technical support teams. Special arrangements have been made to manage electrical infrastructure along the route, ensuring safe passage.

Ethiopia’s Maritime Transit Service has reached a major milestone in its national fertilizer import initiative, with over 1.07 million metric tons of soil fertilizer successfully delivered to Djibouti Port as of April 6, 2025. This achievement represents nearly half of the country’s total planned imports for the 2017/18 agricultural production cycle, which targets 2.4 million metric tons by the April 2025 deadline.

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.

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.

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Ethiopia Reclaims 3.7 Million Hectares Through Nationwide Soil and Water Campaign

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

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

Eight Strategic Deals Launch New Chapter in Ethiopia-Uganda Relations

Ethiopia and Djibouti Open New Maritime Route with 200-Passenger Ferry Service

Ethiopia Imports 1.07 Million Tons of Fertilizer, Nears Half of Annual Target

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

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