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 & Finance
Ethiopia Lifts Bank Lending Cap, Unlocking 1.3T Birr
Starting September, Ethiopia will ease its long-standing bank lending cap, injecting 1.3 trillion birr into the economy—a 500B birr increase from last year. The move targets credit expansion for manufacturing, agriculture, and housing, with careful oversight by the National Bank to manage inflation risks.
Ethiopia Hits 700B Birr in Tax Revenue
Ethiopia collected over 700B Birr in net tax revenue in 2024/25, supported by an expanded tax base, stricter VAT enforcement, and digital collection systems. The country is now closer to its 1T Birr target for 2025/26, while reforms under HGER continue to modernize fiscal policy. Read more
Ethiopia Flags 4.7B Birr in Suspected Tax Fraud
Tax authorities uncovered 4.7B birr in suspected fraud among 277 entities, as part of a wider audit that flagged 4,802 cases. Meanwhile, 28.3B birr remains unpaid across 782 firms, including 19 online businesses. Read more
Ethiopia Covers 262.3B Birr Budget Gap Through Domestic Borrowing
The government plugged a 262.3B Birr deficit in 2024/25 via treasury bills and bonds, while securing $3.5B in international debt relief. Key subsidy spending included 84B on fertilizer, 70.5B on fuel, and 60B on food security. Revenue collection reached 96.1%, and digital oversight expanded, with 96.6% of payments processed electronically. Total public debt stood at $52.7B, with domestic debt rising to 2.5T Birr under local accounting. Read more
Capital Markets
Ethiopian Capital Market at a Crossroads | Exclusive
The launch of the ESX promises billions in new financing and opportunities for citizens to invest. Yet many private companies—especially family-owned businesses—remain hesitant to open books or share control. Programs like ECMA’s IPO Clinic are bridging the gap, preparing firms such as IE Networks and Liyana Healthcare for potential listings.
Habesha Breweries has already started share registration, signaling early adoption of public-market standards. Success will depend not just on regulations, but also on firms embracing transparency, governance, and cultural transformation. Read more
Advertising Rules for Public Offerings
Companies raising funds publicly must follow strict ECMA regulations:
- Approval first: Ads can’t run without ECMA’s green light.
- Prospectus highlighted: Ads must show where investors can access financial and risk details.
- No misleading claims: No guaranteed profits or celebrity endorsements.
- Consistency: Ads must reflect the Prospectus and include the disclaimer:
“Approval by ECMA is not an endorsement or recommendation.” Read more
First Firms Complete IPO Readiness Program
IE Networks and Liyana Healthcare became the first companies to finish ECMA’s IPO Clinic, a World Bank–backed initiative guiding private firms toward public listings on the Ethiopian Securities Exchange (ESX). Read more
CBE Capital & Nib Bank Forge Strategic Partnership
CBE Capital Investment Bank and Nib International Bank (NIB) signed a deal to integrate investment banking services into NIB’s growth plans. This partnership strengthens NIB’s competitiveness while giving CBE Capital a bigger role in Ethiopia’s evolving financial and capital markets. Read more
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Business & Industry
EIH & Dangote Launch $2.5B Fertilizer Mega-Project in Gode
Ethiopian Investment Holdings (EIH) and Dangote Group signed a landmark agreement to build one of the world’s largest urea fertilizer complexes in Gode, Somali Region.
- Annual production: 3M metric tons
- Stake: Dangote 60%, EIH 40%
- Fuel: Domestic natural gas
- Completion: 40 months
This project aims to reduce fertilizer imports, create thousands of jobs, and establish Ethiopia as a regional fertilizer hub, boosting both food security and industrial self-reliance. Read more
Oromia Loans Fuel 2.8M Jobs
Oromia region disbursed 16.9B birr in loans to entrepreneurs—a 420% jump from last year’s 3.2B. Officials report 2.8M jobs created and over 5M residents trained in entrepreneurship, modernizing agriculture and reducing fear of borrowing. Read more
Ethiopia Eyes $9.4B in Export Earnings
Ethiopia plans $9.4B in exports for 2018 fiscal year, up from $8.3B last year. Growth is driven by minerals, agriculture, industry, and electricity, supported by digital trade registration, one-stop services, and AfCFTA preparations. Read more
Ethiopia’s First Large-Scale Gold Mine Set for 2026
Kurmuk Gold Mine in Benishangul-Gumuz, backed by $500M investment, will produce ~290,000 ounces annually, generating $670M exports and $150M in state revenues. Production is expected by mid-2026, creating 1,500 direct jobs.
Ethio Telecom Unveils 3-Year ‘Next Horizon’ Plan
Targets by 2028: 842B birr revenue, 100M users, telebirr 75M users, and 21.3T birr in transactions. Investments include 4G/5G coverage expansion, new data centers, and solar-powered sites, while risks like inflation and FX shortages remain.
Fintech & Digital Innovation
FenanPay Launches: Ethiopia’s Homegrown Payment Gateway
FenanPay, developed entirely by Ethiopian talent, launched with 0% commission goals. During its pilot:
- 2.5M+ transactions worth 1.5B birr
- 99% success rate
- Offers bank integration, merchant tools, AI analytics, and ERP solutions.
The platform targets Ethiopia’s 61% unbanked population, driving financial inclusion and digital economy growth. Read more
BoA & FastPay Partner on Fee-Free Remittances
Bank of Abyssinia and FastPay Digital LLC launched a fee-free remittance service, enabling Ethiopians abroad to send money via Visa or MasterCard, backed by CyberSource technology.
State-Owned Enterprises (SOEs) Performance Highlights
Ethiopian Trading Businesses Corporation (ETBC) – Achieved 92% of trading targets, providing essential goods with 2.1B birr in discounts. EIH advised expanding market share, refining export strategies, improving supply chain management, and upgrading financial reporting.
Ethio Engineering Group (EEG) – Reported 48% revenue growth, with agricultural machinery up 62% and power equipment 37%. Recommendations included maximizing capacity, boosting local value addition, expanding markets, and cost reduction.
Ethiopian Construction Works Corporation (ECWC) – Completed 34 projects, increasing revenue by 80.5% (18.32B birr). Plans include prefabricated housing expansion and market consolidation.
Ethiopian Industrial Inputs Development Enterprise (EIIDE) – Achieved 82% revenue growth and 112% of targets. EIH suggested enhancing supply chains, diversifying products, and optimizing assets.
Educational Materials Production & Distribution Enterprise (EMPDE) – Revenue: ETB 633M, PBT: ETB 108M. Focus on utilizing idle assets, cost control, and marketing improvements.
Ethiopost – Revenue growth: 90%, EBITDA margin: 11%. Encouraged to expand e-commerce and virtual P.O. Box services while standardizing operations.
Chemical Industry Corporation (CIC) – EBITDA margin: 25%, Batu caustic soda +60%, dry rubber +54%. Recommendations: expand production, cost management, and operational efficiency.
Ethiopian Toll Roads Enterprise (ETRE) – Revenue: 1.9B ETB, PBT: 1.34B ETB. Focus on traffic growth, road safety, technology, and timely maintenance.
Ethiopian Agricultural Business Corporation (EABC) – Produced 467.27k quintals of improved seed (+10.4%), supplied 2.32M tons of fertilizer. Recommendations: diversify, expand mechanization, improve production efficiency, and develop new export products.
Industrial Parks Development Corporation (IPDC) – Attracted $22M, shed utilization 88%, generated $124M exports, facilitated 14B birr in market linkages, and created 49,955 jobs. Recommendations: modernize data systems, enhance SEZ infrastructure, and clear audit backlogs.
Berhanena Selam Printing Enterprise (BSPE) – Printed 178.7M sqm, 92% capacity utilization, PBT: ETB 606M (98% of target). Focus on shifting from declining segments to emerging opportunities.
Society & Youth
The Gig Generation: Why Young People Embrace Side Hustles
University and high school students are increasingly engaging in freelance and part-time work. Beyond earning income, these roles provide experience, skill-building, and résumé advantages.
Unlike older generations who relied on post-graduation employment, today’s youth embrace flexible work as both a necessity and an opportunity, reshaping the culture of work in Ethiopia. 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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Stay curious, stay caffeinated, — Written by the StockMarket.et Newsroom
