From record-breaking remittances to major reform milestones, Ethiopia is making bold moves. The government is opening up banking to foreign investors, embracing digital payments, and signing billion-dollar deals to boost fertilizer independence. Meanwhile, the ESX gains momentum with Gadaa Bank’s listing, and an Ethiopian-founded startup backed by Y Combinator is turning global heads. Here’s what you need to know.
ECONOMY & FINANCE
Ethiopia Receives $5.1B in Remittances in 9 Months
Remittances have hit a record $5.1 billion so far this fiscal year, according to the Ethiopian Diaspora Service.
Drivers:
- 18,889 new diaspora accounts opened with $25.2M deposited
- Crackdown on informal transfers
- Reforms boosting transparency and formal channels
Remittances now rival coffee exports, FDI, and aid as Ethiopia’s top forex sources. Read here
NBE Governor Points to Bank Mismanagement for Forex Rate Gap
NBE Governor Mamo Mihretu told Parliament that poor practices at banks are worsening the official (134 Birr/USD) vs. parallel (160 Birr/USD) rate gap.
Key Issues:
- Importers denied advance payment access
- Excessive red tape, forex fees
- New directive caps charges at 4%
Structural reform remains essential to close the gap and restore trust. Source: The Reporter
Ethiopia Opens Banking Sector to Foreign Investors
The NBE has issued Directive No. SBB/94/2025, allowing foreign banks to establish subsidiaries, branches, or representative offices in Ethiopia.
This long-awaited move is expected to:
- Boost capital inflows
- Increase competition
- Expand financial inclusion
AGRICULTURE & INDUSTRIAL POLICY
Ethiopia Signs $3B Fertilizer Deal with Dangote Group
In mid-July, Ethiopia will sign a $3B agreement with Nigeria’s Aliko Dangote to build a fertilizer plant in Gode, Somali Region.
Why it matters:
- Aims for fertilizer self-sufficiency
- Factory will produce urea & nitrogen-based fertilizers
- Thousands of jobs expected
- Supports HGER II industrial goal
CAPITAL MARKETS
Gadaa Bank Lists on Ethiopian Securities Exchange (ESX)
Gadaa Bank becomes the second bank to list on the ESX with 1.23 million shares now tradable.
Significance:
- Enhances transparency & liquidity
- Boosts trust in the capital market
- Adds momentum to Ethiopia’s market reforms
Gadaa Bank Overview
More infographics on Gadaa Bank: here
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DIGITAL & FINTECH
Ethiopia Mandates Digital Payment Acceptance in Public Offices
The Ministry of Finance has rolled out Directive No. 1069/2025, requiring all federal offices to accept payments from any licensed provider (banks, mobile money, fintechs).
Key Points:
- 90-day implementation timeline
- No extra fees based on payment method
- Supports financial inclusion & digital transformation
Qore Technologies Targets Ethiopia’s Microfinance Sector
Nigeria-based Qore has partnered with Akufada to roll out BankOne, a core banking system tailored to small lenders.
What’s offered:
- Affordable ($10K–$100K) cloud-based banking tech
- Already used by 520+ African institutions
- Fast deployment (≤12 weeks) and high-level cybersecurity
Qore’s entry aligns with Ethiopia’s goal of digitizing rural and underserved institutions.
Source: Birrmetrics
STARTUPS & INNOVATION
YC-Backed Ethiopian Startup Better Auth Raises $5M
Self-taught developer Bereket Engida’s authentication platform, Better Auth, has raised $5M from Peak XV, Y Combinator, and others.
Traction:
- 150K+ weekly downloads
- 15K GitHub stars
- 6K+ global developer community
Why it matters: - First Peak XV investment in an African founder
- Proof that global software can be built from Ethiopia
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