Good morning! While you were still waking up, Ethiopia’s economy has been busy. Small banks are in danger, airlines are moving to bigger terminals in New York, and Dangote is starting a huge fertiliser project.
Grab your coffee and let’s catch up on all the important news in finance, aviation, energy, and fintech, before your day even gets started.
Aviation & Transport
Ethiopian Airlines to Relocate JFK Operations to New Terminal One
Ethiopian Airlines will shift its New York operations to the new Terminal One at John F. Kennedy International Airport starting in 2026, part of a $19 billion redevelopment led by the Port Authority of New York and New Jersey. The first phase includes 14 gates and expanded passenger facilities, with full completion expected to deliver 23 gates across 2.6 million square feet. Ethiopian Airlines will maintain its Addis Ababa–New York route, strengthening connectivity across Africa, the Middle East, and Asia. The terminal will also host major global carriers including Air France, KLM, Qatar Airways, and Turkish Airlines, enhancing passenger experience and positioning it as a hub linking the U.S. and Africa. Source: Birrmetrics
EIH Eyes Djibouti Fuel Depot to Strengthen Energy Supply Chain
Ethiopian Investment Holdings plans a 150,000 cubic meter fuel storage depot at Djibouti Damerjog Industrial Park to enhance energy logistics. Located near key infrastructure, including the Ethio-Djibouti railway, the depot aims to ease pressure on existing storage facilities and reduce costs, positioning Ethiopia to strengthen energy security and develop the Djibouti–Ethiopia corridor into a regional energy hub. Source: Capital Ethiopia
Banking & Finance
Ethiopia’s Banking Sector Posts 93 Billion Birr Profit, But the Real Risk Is Complacency
Ethiopia’s banks recorded a historic 93 billion birr in profits, reflecting strong capital buffers and low non-performing loans. However, experts warn of potential complacency, noting the sector’s high concentration in the Commercial Bank of Ethiopia and limited innovation. With neobanks and fintech solutions emerging globally, Ethiopian banks may face disruption if they fail to adapt. Read more
Amhara Bank’s Profit Jumps 178%
Amhara Bank reported a profit before tax of 1.82 billion birr in the first eight months of FY 2025/26, a 178% jump from last year. The bank’s total assets rose to 53 billion birr, while customer deposits reached 37.9 billion birr. Microloans exceeding 5.1 billion birr were disbursed to over 240,000 customers, nearly 90% of whom are women, showcasing the bank’s push for financial inclusion. Source: Capital Ethiopia
Oromia Bank’s IFB Financing Hits 7.5 Billion Birr
Oromia Bank’s interest-free banking portfolio expanded to 7.5 billion birr, a 67% increase over eight months. IFB deposits reached 11.78 billion birr, and the customer base grew to 2.1 million. The bank also donated 3.75 million birr to charitable causes during Ramadan, highlighting a combination of financial growth and social impact.
KCB Group Plans Ethiopian Market Entry
Kenya-based KCB Group plans to expand into Ethiopia by the end of 2026, taking advantage of reforms allowing foreign banks to establish subsidiaries. Ethiopia’s low banking penetration and large population make it an attractive market, potentially increasing competition and digital financial service adoption.
Awash Bank Registers 54 Million Shares
The Ethiopian Capital Market Authority approved the registration of 54,066,089 shares for Awash Bank, a key milestone in developing Ethiopia’s capital market. This registration paves the way for public offerings and secondary market trading, signaling growing confidence in the emerging securities market.
NBE Extends RTGS Operating Hours
The National Bank of Ethiopia extended operating hours for its Real-Time Gross Settlement system to 8:00 AM – 7:00 PM, boosting efficiency in digital payments and ensuring smoother liquidity management among banks.
Fintech & Digital Finance
Court Lifts Asset Freeze on AddisPay and LakiPay
A federal court lifted the asset freeze on AddisPay and LakiPay, restoring access to their bank accounts and properties. The Ministry of Justice had withdrawn its earlier request tied to an investigation into alleged unlawful fintech activities, allowing these companies to resume operations. Source: Birrmetrics
M-PESA Expands into Tax Payments in Amhara Region
M-PESA Ethiopia partnered with the Amhara Revenue Bureau to enable tax payments via mobile money, digitizing government revenue collection and improving efficiency. With over five million active users, M-PESA continues to expand beyond basic payments and is becoming a key public service platform.
International Relations & Economy
Ethiopia, Italy Sign Debt Deal
Ethiopia and Italy signed a bilateral debt restructuring agreement under the G20 Common Framework, advancing Ethiopia’s public debt management and reform agenda. Talks also included financing for the Koysha Hydropower Project and the Bishoftu Airport, with Italy supporting funding through its financial institutions.
U.S. Imposes $15,000 Visa Bond on Ethiopian Travelers
Starting April 2, Ethiopian applicants for B1/B2 visas must post a refundable bond of up to $15,000 to reduce overstays. The bond will be refunded if travelers comply with visa conditions, introducing a significant financial barrier for business, education, and diaspora travel.
Energy & Commodities
Ethiopia Faces Severe Oil Supply Disruptions
Global tensions between Iran, the U.S., and Israel have disrupted petroleum supplies, driving Brent crude above $112 per barrel. Prime Minister Abiy Ahmed urged conservation and prioritized essential services as Ethiopia navigates this global supply shock, which risks millions of barrels per day until normal shipping resumes.
Dangote Secures $4.2 Billion Gas Deal for Fertiliser Megaproject
Aliko Dangote signed a 25-year gas supply deal with GCL Group for Ethiopia’s fertiliser production, supporting a $2.5 billion plant expected to produce three million tonnes of urea annually. The project will improve fertiliser access, reduce imports, and strengthen regional food security.
World Bank Debars PwC Units Over Ethiopia–Kenya Power Project Fraud
Three PwC subsidiaries were debarred for 21 months over collusive practices in the Ethiopia–Kenya power interconnection project. The sanctions prevent these firms from participating in World Bank-financed projects, highlighting the importance of transparency in regional energy initiatives.
Financial Stability & Macro
Ethiopia’s Financial System Shows Strength Amid Structural Risks
The National Bank of Ethiopia’s Financial Stability Report notes a resilient banking sector but flags structural vulnerabilities, including high concentration risk, underdeveloped capital markets, and exposure to cyber and operational risks. While reforms and credit expansion support growth, maintaining asset quality is critical for long-term stability.
Birr Under Pressure as FX Auction Rates Hit 157.47
Foreign exchange demand remains high, with the weighted average of NBE’s latest auction reaching 157.4654 Birr/USD. Despite interventions totaling $1.35 billion in 2026, the birr continues to face depreciation pressures amid reforms, external imbalances, and a market-driven exchange rate.
Insurance & Financial Inclusion
Ethiopia’s 0.3% Insurance Trap
Insurance penetration remains a mere 0.3% of GDP, lagging behind Africa’s 3.6% average. Despite 43% growth in premiums and 29% growth in assets, the sector is concentrated and underdeveloped, with life insurance largely untapped. Regulatory reforms, workforce development, and product innovation are critical for protecting households and businesses while deepening financial inclusion. Read more
That’s it for today’s Monday Breakfast Stories! ☕
Ethiopia’s economy, finance, and industries are moving fast—so stay curious, stay informed, and maybe keep an extra cup of coffee handy. See you next week for more updates and stories you don’t want to miss!
