Category
223 articles
Banking & FinanceEthiopia has finally opened the doors to its long-protected banking sector, and one of Africa’s largest lenders is already knocking. For decades, foreign banks were kept out. Now, recent policy changes allow international players to operate locally—through subsidiaries, branches, or minority stakes in domestic banks. This is more than financial liberalization; it marks a key
Banking & FinanceIn August 2017, Ethiopia took a decisive step to rewrite its tax story. The government revised the Value Added Tax (VAT) Proclamation, a law that had barely changed in three decades, marking one of the first big reforms under the National Medium-Term Revenue Strategy (2017–2020). Why? Because the numbers told a troubling story. Ethiopia’s tax
Government workers, mark your calendars: September 2018 (E.C.) isn’t just another new month, it’s the month your paycheck levels up. The Civil Service Commission just dropped the details on a sweeping salary revision that’s about to shake up public sector paychecks: But raises don’t come cheap. This overhaul demands an extra Birr 160B in budget,
Banking & FinanceEthiopia is facing an unprecedented slide in one of its most critical economic indicators: the tax-to-GDP ratio. A joint study by the Ministry of Finance’s Tax Policy Department and the UK-based Institute for Fiscal Studies (IFS), through their TaxDev initiative, has revealed that the country’s tax-to-GDP ratio dropped to 7.5% in 2022/23, its lowest point
Banking & FinanceEthiopia’s Financial Intelligence Service (FIS) has frozen the bank accounts of 138 individuals accused of running illegal foreign currency operations, in the latest move to tighten the noose on the country’s parallel market. The suspects, identified through what the agency calls “ongoing surveillance,” are accused of skirting the formal financial system and moving money outside
Banking & FinanceIn the bustling markets of Ethiopia, where roadside stalls and small kiosks have long been the beating heart of local commerce, a quiet digital revolution has been unfolding for over a decade. At the center of it all is Oromia Cooperative Bank’s bold innovation, the “Michu” digital unsecured loan service. Since its launch in 2014,
Banking & FinanceIn the span of just a few days, Ethiopia’s foreign exchange market went from chaos to crackdown and possibly, a new kind of clarity. By the end of July, the unofficial (parallel) market exchange rate had breached 170 birr per USD, igniting panic among traders, importers, and the diaspora. The National Bank of Ethiopia (NBE)
Banking & FinanceJust a day after injecting $150 million into the banking system through one of its largest foreign exchange auctions, the National Bank of Ethiopia (NBE) has drawn a new line in the sand. Governor Mamo Mihretu, in a statement on Wednesday, announced a sharpened crackdown on illicit currency flows, signaling the central bank’s commitment to
Banking & FinanceThe National Bank of Ethiopia (NBE) has officially resumed its foreign exchange (FX) auctions after a brief pause, injecting a significant $150 million into the market on August 5, 2025. The move comes as the central bank signals improving foreign exchange inflows and aims to further support Ethiopia’s formal FX market and macroeconomic stability. In
Banking & FinanceWegagen Bank has secured a $85 million international trade finance guarantee facility through agreements with the Eastern and Southern African Trade and Development Bank (TDB) and the African Export‑Import Bank (Afreximbank). Strategic Expansion of Trade Finance Capacity The newly obtained facility empowers Wegagen to enhance its capabilities in underwriting and confirming Letters of Credit (L/Cs),
WGBX+5.39%
Banking & FinanceThe National Bank of Ethiopia (NBE) has issued a stern warning to the Ethiopian diaspora regarding the use of unlicensed money transfer service providers operating outside the country, particularly in the United States. In a press release published today, the central bank urged all members of the Ethiopian community abroad to send funds only through
Banking & FinanceHibret Bank has renewed its trade finance transaction guarantee facility with the African Export-Import Bank (Afreximbank), securing a $50 million agreement that strengthens its position in international trade finance. The renewed facility, part of Afreximbank’s Trade Facilitation Programme (AFTRAF), is designed to support Hibret Bank in delivering key trade finance services, including Letters of Credit
