Good Monday Morning, Readers!
Addis Ababa just wrapped up hosting the AU Summit this past Sunday, and what a weekend it was! The city was buzzing with diplomats, media crews, and the occasional motorcade-induced traffic jam that made even locals question their GPS choices.
With the summit now behind us, it’s time to catch up on the economic, industrial, and financial headlines shaping Ethiopia, all served up fresh for your Monday morning briefing.
Industrial & Manufacturing
Ethiopia’s Industrial Parks Hit $1.5B in Exports
Ethiopia’s industrial parks have now generated over $1.5 billion in exports, accounting for more than half of the country’s manufactured export earnings. Managed largely by the Industrial Parks Development Corporation, 14 parks host 300+ investors, with about 40% foreign direct investment coming mainly from China and India.
The sector currently employs around 90,000 workers, offering higher wages and technical skill development compared to many local industries. In the past six months alone, exports reached $112 million, targeting markets in the U.S. and Europe. Key hubs like the Bole Lemi Special Economic Zone host more than 35 factories.
Debt Concerns: Many parks were financed through non-concessional commercial loans, prompting the government to shift toward concessional financing under the Homegrown Economic Reform agenda, easing repayment pressures while sustaining industrial growth.
Trade & Investment
Russia–Ethiopia Trade Nears $435M in 2025
Trade between Russia and Ethiopia surged to $435 million in 2025, nearly tripling year-on-year, reflecting a rapidly expanding economic partnership.
Drivers of Growth:
- Russian exports: Fertilisers, agricultural machinery, energy equipment
- Ethiopian exports: Coffee (especially Sidamo and Harar), flowers, textiles
Coffee exports alone jumped from $46M in 2024 to $123M in 2025, with volumes more than doubling to 18,300 tonnes. Beyond commodities, cooperation is expanding into technology and industry, with Russian e-commerce giant RWB preparing to enter Ethiopia and Rusal exploring a new aluminium plant with Ethiopian Investment Holdings.
Ethiopia Attracts $2.3B in Investment in H1 FY2025/26
According to the Ethiopian Investment Commission (EIC), Ethiopia secured $2.3 billion in investment in the first half of FY2025/26 — a 20%+ increase from last year.
Drivers:
- Facilitating access to cleared land via third parties
- Reducing operational delays
- Improving foreign exchange generation mechanisms
During this period, 245 investment licenses were issued to local and foreign investors. Officials note that deeper reforms are needed to fully unlock Ethiopia’s investment potential.
Employment & Labor
14% of Employed Ethiopians Earn Below $2.15/Day
A UNCTAD report reveals that over 14% of employed Ethiopians earn less than $2.15/day (PPP), highlighting persistent working poverty despite steady economic growth.
- Ethiopia performs better than the LDC average (30.7%), yet millions remain trapped in low-income jobs in agriculture and informal services.
- Service exports reached $7.4 billion in 2024, driven by transport, logistics, and travel services.
- Tourism accounts for just 3.5% of total employment, indicating uneven benefits.
UNCTAD Recommendation: Prioritize skills development, digital infrastructure, and productivity upgrades to translate growth into better-paying jobs. Source: The Reporter Ethiopia
Energy & Utilities
EEU Expenses Jump 75% Amid Grid Modernization
The Ethiopian Electric Utility (EEU) reported a 75% surge in operating expenses over the past six months due to grid upgrades and rising electricity demand.
Cost Drivers:
- Smart meters and digital control systems
- Repairs to inefficient low-voltage lines
- Transformer and network installations
Revenue Performance:
- ETB 52.26 billion collected (96% of target)
- ETB 34.34 billion from energy sales (98.4% of plan)
- 99.5% bill collection efficiency
Electrification Progress:
- 74.6% of new connections via national grid
- 24.4% through off-grid solar
- 63 rural kebeles energized
Backed by $638M from World Bank and AfDB, EEU invested ETB 20.8B in capital projects, 90% of the budget, focusing on service reliability and access expansion.
Finance & Capital Markets
Major Banks Advance Toward ESX Listing
Several leading banks are moving closer to listing on the Ethiopian Securities Exchange (ESX) Main Market, including:
- Awash Bank, Dashen Bank, Bank of Abyssinia, Abay Bank, Anbesa Bank, Amhara Bank
Dashen Bank and Bank of Abyssinia have finalized securities registration and published prospectuses.
ECMA Licenses BDO Consulting as Securities Investment Advisor
The Ethiopian Capital Market Authority (ECMA) licensed BDO Consulting PLC under the Securities Investment Advisor (Corporate) category, effective February 12, 2026.
- Total licensed CMSPs: 16
- Securities Investment Advisors: 9
- ECMA approved three appointed representatives and five board directors
Climate & Development Finance
Ethiopia, AfDB Sign $71.9M Climate Resilience Deal
The Government of Ethiopia and African Development Bank signed a $71.9M agreement for the Building Resilience for Food and Livelihoods (BREFOL) program.
Funding Split:
- $25.64M grant
- $46.30M loan
Investments:
- Water & irrigation infrastructure
- Livestock facilities
- Renewable energy solutions
- Climate-smart tech & digital advisory
Ethiopia, France Seal Debt Restructuring & €81.5M Support Deal
Ethiopia and France signed a landmark debt restructuring agreement alongside €81.5M financing, marking the first bilateral debt deal under the G20 Common Framework.
Breakdown:
- €80M budget support for HGER 2.0
- €1.5M technical assistance
- Continued infrastructure and energy financing via AfD and PROPARCO
Foreign Exchange & Banking Reforms
NBE Introduces Forward FX Trading, Grants 100% Retention to Service Exporters
The National Bank of Ethiopia (NBE) launched Directive No. FXD/04/2026, marking a major shift toward market-oriented FX reforms.
Key Features:
- Forward FX trading for hedging against exchange volatility
- 100% FX retention for service exporters (tourism, aviation, consulting, telecom, financial services)
- Decentralized approvals for banks on dividends, external loans, and supplier credits
- Operational relaxations: no minimum FX balance, removal of USD 10,000 declaration, advance payments for education/medical, USD 3,000 outward remittance for family support
Transport & Aviation
Ethiopian Airlines Posts $4.4B Half-Year Revenue
The Ethiopian Airlines Group recorded $4.4B in revenue in the first half of FY2025/26, a 14% increase YoY.
Key Drivers:
- Fleet expansion: 7 new aircraft (fleet now 147)
- 10.64M passengers carried
- 334,000 flight hours logged
- 451,000 tons of cargo (+19% YoY)
Network Expansion:
- New routes: Hanoi (Vietnam) and Porto (Portugal)
- Planned Australia route pending long-haul aircraft delivery in 2028
Bishoftu International Airport:
- Estimated cost: $10B+
- Phase I capacity: 60M passengers/year by 2029
- Full capacity: 110M passengers/year
Banking & Digital Finance
Yohannes Ayalew Appointed President of Tsedey Bank
Tsedey Bank appointed Yohannes Ayalew (PhD) as President.
Track Record:
- Former CEO of Amhara Bank: turned losses into ETB 655M pre-tax profit in 16 months
- Revenue up 146%, expanded digital banking, improved FX reserves
- Senior roles at NBE and Development Bank of Ethiopia
Awash Bank Tops ETB 1 Trillion in Digital Payments
Awash Bank processed ETB 1 trillion in digital transactions over six months, reflecting Ethiopia’s digital payment acceleration.
- 1,000+ branches, 16.5M customers
- Deposits: ETB 445B; Loans: ETB 270B
- New merchant portal launched to expand POS and digital payment acceptance
Stay tuned for next week’s insights, where we unpack more sectoral trends and policy moves shaping Ethiopia’s future.
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