Welcome to this week’s StockMarket.et Weekly Newsletter! We’ve got exciting updates on Ethiopia’s economy, digital innovation, and business breakthroughs. From Kenya’s rise as East Africa’s largest economy to game-changing fintech developments, this week’s news is packed with insights you won’t want to miss. Let’s jump in!
Economy & Finance: Shifts and Surges
Kenya to Overtake Ethiopia as East Africa’s Largest Economy
Hold on tight, Ethiopia – Kenya is about to steal your spotlight! According to the IMF, Kenya’s GDP is forecasted to hit $132 billion in 2025, edging ahead of Ethiopia’s $117 billion. This shift follows a sharp devaluation of the birr, which helped Ethiopia secure $20 billion in support but also spiked inflation. Kenya’s steady economy and a 21% currency boost have kept it on track. Looks like it’s all about who can juggle fiscal challenges better!
Source: Business Insider Africa
Ethiopia Set to Join BRICS New Development Bank
And just when you thought Ethiopia couldn’t get any cooler, it’s on track to become the fourth African member of the BRICS New Development Bank (NDB)! This strategic move will open doors to funding for agriculture, energy, and industry – truly a step forward for Ethiopia’s global influence. The NDB is clearly picking up pace in Africa, and Ethiopia’s got its ticket!
Source: Business Insider Africa
Ethiopia’s Inflation Set to Fall to 10% in 2025/26
Good news on the inflation front! Ethiopia’s inflation rate is projected to drop to 10% for the 2025/26 fiscal year. That’s a decade-low, thanks to major economic reforms like currency floatation and debt restructuring. Looks like the country’s economic strategy is starting to pay off, with exports and remittances set to soar.
Source: Reuters
Ethiopian Banks Lose 1.3 Billion Birr to Fraud
Fraud is on the rise, and Ethiopian banks are feeling it! In the 2023/24 fiscal year, 28 banks reported a total loss of 1.3 billion birr, a 300 million birr increase from last year. Time to tighten those cybersecurity protocols – and maybe keep an eye on those ATMs! Read here
Ethiopia’s Debt Struggles Continue
Here’s the cliffhanger: Ethiopia’s foreign-currency rating remains at ‘Restricted Default’ after missed Eurobond payments. However, the domestic rating got a boost to ‘CCC+’ thanks to some reforms and multilateral support. Debt restructuring talks continue, and we’ll all be holding our breath to see how this one plays out. Read here
Tech & Digital Transformation: Next-Level Innovations
Ethiopia Launches “Mesob” One-Stop Digital Service Center
In an effort to modernize government services, Prime Minister Abiy Ahmed unveiled “Mesob,” Ethiopia’s first digital service hub. Now, instead of standing in endless lines, citizens can access 41 public services (like licensing, tax payments, and immigration) all through a paperless, digital system. Who needs paper when you’ve got “Mesob”? Read here
Ethio Telecom and Siinqee Bank Launch Digital Financial Services & Device Financing
This partnership is shaking things up! Ethio Telecom has joined forces with Siinqee Bank to expand digital services via the telebirr platform. Now, you can access savings accounts, microloans, salary advances, and even device financing – up to 2 million smartphones distributed annually. It’s all about getting digital and bridging the divide. Plus, who doesn’t want a smartphone in their pocket? Read here
Visa to Connect with All Ethiopian Banks via EthSwitch
In a groundbreaking move, Visa and EthSwitch have signed an MoU to link all Ethiopian banks to the national payment switch. This means smoother, safer, and more innovative digital payment services. Think of it as Ethiopia’s own upgrade to the digital payment highway. Read here
International Relations & Infrastructure: Moving Forward
Boeing Lands in Addis Ababa
Boeing is setting up shop in Addis Ababa with its first dedicated Africa office. Why? Well, Ethiopia’s growing aviation sector, led by Ethiopian Airlines, has caught Boeing’s eye. As part of Ethiopia’s $74 billion transport plan, this partnership could signal the start of big things in the African skies. Watch out, global aviation – Ethiopia is climbing! Read here
Business & Entrepreneurship: The New Wave
Ethio Telecom Sells Just 10.7% of Shares
Ethio Telecom’s recent IPO raised a total of 3.2 billion birr, but only 10.7% of the shares were sold. The reason? A cap on individual investments and restrictions limiting participation to Ethiopian citizens. It’s a start, but more work lies ahead if Ethiopia wants to get more of its citizens in the game. Read here
FrankRemit Launches Instant Transfers to Ethiopia
Meet FrankRemit, the new kid on the remittance block! This platform promises instant money transfers to Ethiopian bank accounts, mobile wallets, and cash pickup points. And the best part? Zero fees during launch and competitive exchange rates. It’s all about making remittances faster, cheaper, and more transparent. Say goodbye to those slow, costly transfers! Read here
Drama & Disputes: The Heat Is On!
Audit Firestorm: Rift Between Tax Authority and Accounting Professionals
A major clash is unfolding between Addis Ababa’s Revenue Bureau and the auditing community after a tax review revealed a 10.6 billion birr shortfall. The Bureau is calling out 823 auditors, but professional associations aren’t happy with how this is unfolding. Could this spark a wider crisis in investor confidence? Stay tuned. Read here
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That’s a wrap for this week’s newsletter! From Ethiopia’s economic reshuffles to the digital revolution on the rise, it’s clear that things are moving fast. We’ll be back next week with more updates.
Until then …
Stay curious, stay caffeinated ☕
And as always, crush your week ahead! 🚀
— Written by the StockMarket.et Newsroom
Byeee 🙂
