Your weekly dose of Ethiopia’s sharpest business, economic, and finance news.
Grab your buna and catch up on what’s moving Ethiopia’s markets and economy this week.
Green Transport & Energy Transition
Ethiopia Tightens Fuel Vehicle Ban — Diesel & Gas Trucks Blacklisted
Ethiopia has extended its green transport push by banning the import of diesel and gasoline trucks, following last year’s ban on fuel-based cars. Announced by PM Abiy Ahmed on October 3, 2025, in Gode, the move complements Ethiopia’s 90% renewable electricity supply and ongoing EV incentives. While it may disrupt logistics initially, analysts see it driving electric freight investment and positioning Ethiopia as a leader in decarbonizing heavy transport in Africa, where countries like South Africa, Kenya, Rwanda, and Nigeria are also boosting EV adoption.
Energy & Industrial Development
Ethiopia Launches Mega Fertilizer & Oil Refinery Projects with Dangote and China’s GCL
Ethiopia is advancing industrial self-reliance with two major projects: a Urea Fertilizer Plant with Nigeria’s Dangote Group and the Gode Oil Refinery with China’s Golden Concord Group (GCL). The fertilizer plant will produce 3 million tons annually, cutting $1.5B in imports and boosting food security, while the refinery will process 3.5M tons of crude, reducing $3B in fuel imports and potentially turning Ethiopia into a regional fuel exporter. Together, they could create 50,000+ jobs and stimulate downstream industries. Success hinges on financing, security, and infrastructure readiness, making execution as crucial as ambition.
Ethiopia Powers Kenya — 83% of Electricity Imports
Ethiopia now supplies 83% of Kenya’s electricity imports, delivering 1,274 GWh and saving Kenya $10M annually by replacing costly thermal power. The Sodo–Moyale–Suswa 500 kV interconnector underpins this regional energy trade, helping Kenya avoid blackouts. Talks are underway to boost imports by 50–200 MW, with President Ruto praising Ethiopia’s GERD-powered electricity as a “pan-African statement.” Ethiopia is emerging as East Africa’s renewable energy hub.
Fiscal & Energy Policy
Ethiopia Introduces 30% Tax on Petroleum Products
Ethiopia has introduced a 30% tax on petroleum products (15% VAT + 15% excise), alongside broader fiscal reforms like property tax, alternative minimum tax, and advance payments. While aimed at strengthening public finances, higher fuel costs could add inflationary pressure.
Development & Investment
Ethiopia Needs $257–397B to Meet Development Goals
Ethiopia faces a $257–397B funding gap over the next seven years to meet its development goals. Current resources total $38.5B from taxes, aid, remittances, FDI, and capital. Key challenges include an 11.2% budget deficit, $252.8B climate finance gap, $4.2B SME credit shortfall, high youth unemployment (27%), and the need for 2.5M new jobs annually. Investment is hindered by weak financial instruments, high capital costs, and policy gaps.
Banking & Financial Services
Wegagen Bank Launches Real-Time SWIFT Payment Tracking
Wegagen Bank has launched real-time SWIFT payment tracking through its mobile app using UETR codes, enhancing transparency, trust, and convenience for importers, exporters, and diaspora remitters.
Bank of Abyssinia Posts Record Profit — EPS Up 50%
Bank of Abyssinia reports record FY 2025 profit: net profit 7.3B birr (+72%) and EPS up 50%. Total assets reached 286.2B birr (+28.8%) with customer deposits at 243.2B birr (+26.3%). Growth was driven by loan expansion, higher fees/commissions, and digital rollout (1,700+ ATMs, 3,600+ POS). Rising loan default provisions highlight growing credit risk.
Ethiopia Keeps Rates Steady, Loosens Credit Cap
Ethiopia’s central bank kept the benchmark rate at 15% while raising the annual credit growth ceiling to 24% (from 18%). Inflation eased—headline 13.6%, food 12.7%, non-food 15.1%. Domestic credit grew 14%, broad money +23.1% YoY, and base money +70.7%. The MPC targets continued disinflation toward single-digit levels. Read more
Ethiopia Begins Formal $1B Eurobond Restructuring Talks
Ethiopia has begun formal $1B Eurobond restructuring talks, seeking a 20% haircut under the G20 Common Framework following its 2023 default. Export revenue growth boosts investor confidence, though aid and FDI fluctuations pose risks. Eurobond prices rose ~2.6 cents to 94.88 cents. Read more
Mining & Natural Resources
Tulu Kapi Gold Project Nears $340M Funding Completion
The Tulu Kapi Gold Project is close to securing $340M in funding—$240M debt, $100M equity, $20M from the government. Phase 1 will produce 160,000 oz/year, rising to 200,000 oz/year by mid-2027. The project boosts mining, foreign investment, local jobs, and infrastructure. Read more
Fintech & Digital Payments
SantimPay & Visa to Deploy 100,000 POS Devices
A five-year rollout plans 20,000 devices/year supporting QR, wallet, and card payments, aiming to expand digital payments among SMEs, reduce cash dependency, and formalize financial participation. Read more
Capital Markets
Wegagen Capital Quadruples Capital in Debut Year
Wegagen Capital quadrupled its paid-up capital to 1B birr from 385M birr in its debut year. It plans to expand investment banking services, tech-driven platforms, institutional capacity, and mobilize savings and capital for businesses. Read more
Ethiopia Adds Three New Capital Market Players
Ethiopia has licensed three new capital market players: First Addis Investment Bank PLC (investment banking), and Ignite Capital PLC and Zuri Capital S.C. (securities investment advisors). The move aims to deepen the market, boost investor confidence, and support sustainable economic growth. Read more
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Treasury & Fiscal Instruments
Ethiopia Plans ETB 243B T-Bill Auctions (Q4 2025)
Ethiopia plans ETB 243B in T-Bill auctions in Q4 2025, held every two weeks from October to December. Bills will mature in 28, 91, 182, and 364 days, supporting liquidity management and government funding. Read more
Exclusive: Ethiopia’s Central Bank Gets a New Conductor: Eyob Tekalign
Dr. Eyob Tekalign has quietly taken the helm of the National Bank of Ethiopia, succeeding Mamo Mihretu. A key architect of Ethiopia’s Homegrown Economic Reform, Eyob brings deep familiarity with the IMF-backed program, debt talks, and market liberalization.
Early moves signal cautious continuity: the policy rate remains at 15%, reserve requirements unchanged, and the annual credit growth ceiling slightly raised to 24%. Inflation is easing, liquidity has improved, and the interbank market has grown past 1 trillion birr.
Analysts see Eyob’s tenure as one of calibration rather than dramatic shifts, focusing on steady execution, financial sector discipline, and careful navigation of debt and forex reforms. His success will be measured less by bold moves and more by the stability and confidence he brings to Ethiopia’s banking system. Read more
Telecom & Competition
World Bank Flags Ethio Telecom for Anti-Competitive Practices
The World Bank flagged Ethio Telecom for anti-competitive practices, including predatory pricing, service bundling, and high infrastructure fees, which hurt new entrants like Safaricom Ethiopia ($1.58M monthly off-net losses). Recommendations include open infrastructure access, renegotiated interconnection agreements, stronger regulation, and deployment of 10–15K new towers with 4G/5G. Safaricom Ethiopia supports these reforms for fair competition.
Public Sector & Labor
Ethiopia Introduces New Civil Service Salary Scale
Ethiopia unveiled a new civil service salary scale: entry-level 6,000 birr (up from 4,760), mid-level up 60–70% (e.g., 15,425 birr), and top executives up to 50,521 birr/month. The reform raises the wage bill by 40%, boosting consumer spending and private sector competition, though inflation could offset gains without regular adjustments.
Stay tuned for next week’s insights, where we unpack more sectoral trends and policy moves shaping Ethiopia’s future.
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Stay curious, stay caffeinated, — Written by the StockMarket.et Newsroom
