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.
Economy & Public Finance
Ethiopia Receives $4.1B in Aid, But Only 15% Flows Through Treasury
Ethiopia received $4.1 billion in official development assistance (ODA) in FY2016, yet only 15% went through the national treasury. Key sectors included agriculture ($1.03B), power ($768M), and health ($694M). State Minister Semerita Sewasew urged partners to channel more support through national systems. Despite off-budget reliance, the economy grew 8.1%, and public debt-to-GDP fell from 40.8% to 32.9%. Source: Capital Ethiopia
Audit Uncovers 15bn Birr Off-Budget Revenue
The Office of the Federal Auditor General (OFAG) flagged 15.1 billion birr collected outside the approved budget, with unresolved historical debts and gaps in Treasury bill records. OFAG stressed the need for stronger oversight to protect Ethiopia’s public financial integrity. Read more
Ethiopia to Introduce 30% Fuel Tax
The Ministry of Finance will impose a 30% combined fuel tax (15% VAT + 15% excise) next month as part of the subsidy phase-out strategy. Targeted digital rebates for public transport users will continue, while the government aims to raise the tax-to-GDP ratio, currently among Africa’s lowest. Read more
Banking & Finance
Awash Bank Posts 137% Profit Surge
Awash Bank’s gross profit soared to 25.67 billion birr, driven by deposit growth and over $2 billion in FX earnings. Total assets climbed to 442.6 billion birr, with deposits at 358.5 billion birr. The bank expanded its branch network to 989 and serves 15 million+ customers, solidifying its position as Ethiopia’s largest private bank.
Buna Bank Reports Record Profit
Buna Bank posted 2.63 billion birr in pre-tax profit, up 182.5% YoY, and EPS rose 146.7%. Total assets reached 65.58 billion birr, deposits 51.2 billion birr, and the loan portfolio expanded 9.8%. The bank also met the NBE’s minimum capital requirement of 5 billion birr a year early. Digital banking continues to gain traction, with mobile transactions hitting 40.4 billion birr. Read more
CBE Noor Wins Best Interest-Free Banking Service
The Commercial Bank of Ethiopia’s Noor division was recognized as the Best Interest-Free Banking Service in East Africa at the 11th International Islamic Retail Banking Awards in Karachi, reflecting Ethiopia’s growing Sharia-compliant banking sector. Read more
Awash Bank & Ethio Telecom Launch “Tila” Digital Lending
The Tila platform offers collateral-free microloans, savings, and device financing through Telebirr. Individuals can access loans from 5,000–16,000 ETB, while salary-backed loans of up to 1 million ETB target employees. SMEs can access 50,000–150,000 ETB, and a smart device financing program plans to distribute 3.58 million smartphones annually. Read more
Telecom & Tech
Ethio Telecom Profit Plunges 70%
Ethio telecom’s profit after tax fell 70% to 5.8 billion birr, driven by an 1,825% surge in forex losses following the July 2024 currency float. Despite revenue growth of 62% to 148 billion birr, depreciation and promissory note obligations to vendors wiped out gains. Read more
Safaricom Ethiopia Appoints Ermias Eshetu as Advisory Board Chairman
Safaricom Ethiopia named Ermias Eshetu as Advisory Board Chairman, marking a push for local leadership. Ermias brings over 25 years of experience in finance, governance, and institutional reform, including leadership at ECX and FSD Ethiopia. Read more
Capital Markets & Investment
Ethiopia Launches First Central Securities Depository & Investor Portal
The National Bank of Ethiopia unveiled the country’s first CSD and a digital investor platform, Ts’ega. The system will manage securities electronically, improve transparency, and enable investors to view holdings in real-time, boosting financial inclusion and market efficiency. Read more
Ethiopian Investment Holdings Misses Dividend Target
EIH collected 10 billion birr in Q1, 77% of its 13.2 billion-birr target. Weak subsidiary performance and export constraints were cited, with lawmakers calling for closer oversight. Read more
Ethiopia Licenses Fourth Investment Bank: Awash Capital
ECMA approved Awash Capital Investment Bank as the fourth licensed investment bank in Ethiopia, bringing total capital market service providers to 13. ECMA emphasized integrity, investor protection, and a competitive market ecosystem. Read more
Energy & Utilities
Ethiopian Electric Utility Generates 33.6bn Birr in Four Months
Revenue reached 33.65 billion birr, achieving 97% of the target. Energy sales contributed 22.21 billion birr, and 154,000 new customers were added. Digital payments accounted for 95% of October bill collections. Read more
Mining & Industry
KEFI Nears Final Approval for Tulu Kapi Gold Project
KEFI is set to start the $340 million Tulu Kapi gold project, with financial close imminent. The project will include local investor participation and aims for a late 2026 launch, boosting Ethiopia’s mining investment. Read more
Aviation
Ethiopian Airlines Orders 11 More Boeing 737 MAX Jets
The airline will expand its narrow-body fleet, supporting regional and international growth. Ethiopian Airlines now holds Africa’s largest Boeing fleet and the biggest backlog of 737 MAX, 777X, and 787 aircraft. Read more
Fintech & Payments
Arifpay to Roll Out 10,000 POS Terminals
Arifpay, in partnership with Visa and AVICOM, will deploy 10,000 POS devices nationwide this year, with a 50,000-unit expansion planned. Terminals will serve SMEs, supporting digital payments, QR payments, and cloud management, aligning with Digital Ethiopia 2025. Read more
Forex & Monetary Policy
NBE Schedules USD 520 Million in FX Auctions
The National Bank of Ethiopia allocated USD 520 million for FX auctions in FY 2025/26: USD 420 million for Q3 and USD 100 million for December. Auctions are bi-weekly, improving transparency and market planning. Read more
Stay tuned for next week’s insights, where we unpack more sectoral trends and policy moves shaping Ethiopia’s future.
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