Ethiopia’s Abiy Ahmed Visits Somalia for Talks with President Mohamud
Ethiopian Prime Minister Abiy Ahmed visited Mogadishu on February 27, 2025, to hold discussions with Somali President Hassan Sheikh Mohamud, marking a step toward easing tensions between the two nations. Relations had soured in early 2024 over Ethiopia’s deal to lease a coastline in Somaliland, which Somalia viewed as a violation of its sovereignty.
The two leaders reaffirmed their commitment to cooperation and advancing technical negotiations on Ethiopia’s access to the sea. This visit follows Somalia’s earlier talks with Ethiopia’s rivals, Egypt and Eritrea, as diplomatic dynamics in the Horn of Africa continue to evolve. Read more
CBE Restricts Account Access Amid Rising Fraud Concerns
The Commercial Bank of Ethiopia (CBE) has tightened access to customer account balances to combat escalating fraud. As of February 24, 2025, only senior officials, including Branch and Business Managers, can view balances, leaving tellers without access.
This move follows a surge in fraud cases, with banking losses reaching 1.3 billion birr in 2023/24. Digital scams, including mobile banking fraud and unauthorized withdrawals, have intensified security concerns. While the policy aims to enhance protection, it may lead to service delays and customer frustration.
CBE must now strike a balance between security and efficient service delivery to maintain trust in Ethiopia’s banking sector. Read here
NBE Drafts SEZ Banking Directive
The National Bank of Ethiopia (NBE) is developing a directive to regulate bank branches within Special Economic Zones (SEZs). The new rules will require SEZ branches to provide forex services and meet stricter financial criteria, including a liquidity ratio three points above NBE’s minimum and a non-performing loan (NPL) ratio below 5%.
This follows Parliament’s recent SEZ Proclamation, with authorities aiming to upgrade industrial parks into SEZs. Investors in SEZs will benefit from full forex retention, compared to the 70% allowed elsewhere. The directive is expected to shape banking operations in Ethiopia’s evolving investment landscape. Read here
Kenya & Ethiopia Partner to Boost Lamu Port as Regional Trade Hub
Kenya and Ethiopia have struck a major deal to position Lamu Port as a key regional transshipment hub. President William Ruto announced Ethiopia’s commitment to using Lamu for imports, enhancing trade, job creation, and economic growth. The port, part of the LAPSSET corridor, now has three operational berths, with regional leaders set to visit soon.
To support local communities, the government has allocated Ksh.1.7 billion for fisherfolk compensation and launched the 468-unit Mokowe Affordable Housing Project. Additional infrastructure investments include Ksh.600 million for electricity expansion and the Bura Gravity Canal project to boost irrigation. President Ruto emphasized unity and equitable development, urging Kenyans to reject divisive politics. Read here
EIC Appoints Abel Tadesse as CEO
Ethiopian Insurance Corporation (EIC) has appointed Abel Tadesse as its new CEO, marking a strategic leadership shift for Ethiopia’s largest insurer. With a strong background in reinsurance and financial management, Abel previously served as a Finance Advisor at Ethiopian Investment Holdings and as Director of Reinsurance at Awash Insurance.
Established in 1976, EIC remains a market leader in general and long-term insurance. Under Abel’s leadership, the company aims to strengthen its market position, drive innovation, and enhance customer-focused insurance solutions. Read here
Ethiopian Commodity Exchange Appoints New CEO
The Ethiopian Commodity Exchange (ECX) has appointed Ato Mergia Baysa as its new CEO, succeeding Ato Wendmagegn Negera. Mergia, a long-time ECX veteran, has held various leadership roles, including serving as Acting CEO for the past seven years. His appointment marks the first time an internal candidate has risen to the top, highlighting his deep expertise and commitment to the institution. Read here
CBE Urged to Expand Internationally
The Commercial Bank of Ethiopia (CBE) reported strong half-year performance, with deposits reaching 1.54 trillion birr and 84.5% of transactions conducted digitally. While credit services remain a key focus, challenges in lending efficiency and customer satisfaction were noted. Ethiopian Investment Holdings (EIH) CEO Dr. Brook Taye praised CBE’s growth but urged the bank to enhance accessibility, improve digital lending, and expand beyond its current international operations in Djibouti and South Sudan to stay competitive in the evolving financial landscape. Read here
Ethio Telecom Unveils Cloud-Based Solutions
Ethio Telecom has launched seven cloud-based solutions to drive digital transformation across various sectors in Ethiopia. These include Digital Livestock Tracking, a Core Banking Solution for MFIs and SACCOs, an Education Management System, and an ERP platform for business operations. Other offerings include a One-Office Collaboration tool, a cloud-based Contact Center, and a Push-to-Talk/Video communication system. These solutions aim to enhance efficiency, streamline workflows, and reduce reliance on on-premises infrastructure, reinforcing Ethio Telecom’s role in Ethiopia’s digital future. Read here
EIH Reviews Key Sectors in Mid-Year Performance Assessment
Ethiopian Investment Holdings (EIH) conducted a mid-year review of state-owned enterprises, highlighting achievements and areas for improvement across tourism, vaccines, housing, toll roads, and power.
- Tourism: Ethiopian Tourist Trading Enterprise saw a 26.5% revenue growth and a 335% rise in profit, driven by its duty-free business.
- Veterinary Sector: The National Veterinary Institute produced 132.81 million vaccine doses, boosting exports to eight African nations.
- Housing: The Federal Housing Corporation exceeded revenue targets by 17%, with the Somale Tera project nearing completion.
- Infrastructure: The Addis-Adama toll road service station is 98% complete, with a 45-day deadline for finalization.
- Energy: Ethiopian Electric Power increased electricity generation and revenue, with a focus on project implementation and digitization.
EIH urged continued reforms, investment strategies, and efficiency improvements across these sectors. Read here
Fayda to Launch Digital Wallet for Education & Health Verification
The National ID Program is set to launch a digital wallet through Fayda, allowing citizens to verify their education and health records seamlessly. Deputy Coordinator Rahel Abraham highlighted that this initiative will simplify verification processes, particularly for students applying for scholarships. The program aims to enroll 30 million citizens within five months, expanding registrations through private institutions. Additionally, the wallet will enhance data privacy by enabling users to share only necessary details using Verifiable Credentials (VCs). With the launch of its mobile app and upcoming wallet, the National ID Program is advancing digital accessibility and security. Read here
NBE Holds Special Foreign Exchange Auction
The National Bank of Ethiopia (NBE) conducted a Special Foreign Exchange Auction on February 25, 2024, with 27 banks participating. The weighted average exchange rate reached Birr 135.6185 per US Dollar. However, banks have yet to reflect this in their daily exchange rates. NBE may continue holding such auctions as part of its broader forex management strategy.
Coop Bank and Rabo Partnerships Launch Digital Lending for Farmers
Cooperative Bank of Oromia and Rabo Partnerships have introduced a digital lending platform to enhance agricultural finance in Ethiopia. The platform streamlines loan applications, providing faster approvals and instant disbursements for farmers, particularly smallholders in remote areas. Leveraging data analytics, it simplifies credit assessments and integrates real-time tracking. This initiative builds on their 13-year partnership, aiming to serve 3 million farmers within three years by digitizing the agricultural value chain and offering additional support services. Read here
Ethiopian Startup WAGA Brings Blockchain to Coffee Trade
WAGA, an Ethiopian startup, is set to revolutionize the country’s coffee supply chain with a blockchain-powered platform launching in mid-2025. Co-founded by Emanuel Acho (PhD) and Hana Terefe, the initiative aims to enhance transparency, reduce intermediaries, and financially empower smallholder farmers.
By tokenizing coffee on Ethereum, WAGA enables farmers to retain ownership of digital assets, access direct global buyers, and use their coffee as collateral for DeFi-based loans. Smart contracts streamline transactions, cutting fees by up to 70% and ensuring faster payments.
With a testnet launch planned for mid-2025, WAGA’s model could reshape agricultural trade, offering a scalable blueprint for blockchain-driven supply chain solutions. Read here
We have Launched a New Economic and Financial Data Hub
As you know we have officially launched a comprehensive Economic and Financial Data Hub, designed to provide essential data and insights as Ethiopia’s capital market continues to grow.
The new hub aims to empower investors and market participants by offering access to reliable economic data.
Key features of the hub include:
- Key Economic Indicators: Users can stay updated on vital statistics such as GDP, inflation, unemployment rates and etc.
- Financial Institution Data & Reports: The hub provides insights into banks and other financial players, helping users make informed decisions.
- Live Exchange Rates & Currency Converter: Users can track market fluctuations in real time.
- Bank Exchange Comparisons: The platform allows for informed financial decision-making.
To further assist users, we have included a knowledge base to help explain the significance of the data. So we encourage your feedback and suggestions to enhance the platform,
For more information and to explore the new hub, visit StockMarket.et Data Hub.
StockMarket.et is dedicated to fostering a stronger financial future for Ethiopia and invites collaboration with interested parties. For inquiries, contact hello@stockmarket.et.
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