Good morning, Ethiopia!
Grab your coffee and catch up, because while you were hitting snooze, MIDROC was breaking records, digital IDs were going mainstream, and the price at the pump kept climbing. Let’s dive into the week’s biggest stories by sector so you can start your Monday smarter… and just a little more entertained.
Business & Industry
MIDROC Posts Strong First-Half Growth
MIDROC Investment Group reported 65.99 billion birr in sales during the first half of the 2025/26 fiscal year, marking a 71% increase year-on-year and exceeding its internal targets.
At a performance review held at the Sheraton Addis, the conglomerate said it achieved 176% of its profit plan, representing a 95% increase from the same period last year.
CEO Jemal Ahmed described the results as encouraging across all sectors, while stressing the need to strengthen marketing, production efficiency, and cost management.
During the period, MIDROC also spent over 18.4 billion birr on agriculture and government obligations and generated more than $155 million in foreign exchange, up 53% year-on-year, from exports and international services. Source: Birrmetrics
Digital Economy
Fayda Digital ID Joins EIH Portfolio
Ethiopian Investment Holdings has added the National ID Program (NIDP), widely known as Fayda, to its portfolio with seven billion birr in registered capital, marking its transition from a project office into a revenue-generating development entity.
The program, which provides a biometric-based digital identity system, has already registered 37.5 million residents and aims to reach 90 million people by the end of the fiscal year. According to Executive Director Yodahe Zemichael, the initiative has begun generating income through KYC and electronic identity verification services, including the FaydaPass digital identity wallet.
With the move, Fayda joins 40 state-owned enterprises managed by Ethiopian Investment Holdings, which oversees strategic public assets worth about 8.2 trillion birr across sectors such as finance, telecom, logistics, and manufacturing. Officials say the digital ID system will play a key role in Ethiopia’s digital public infrastructure by enabling secure electronic identity verification.
Macroeconomy
Ethiopia’s Inflation Drops to 9.7%
Annual inflation in Ethiopia slowed to 9.7% in February 2026, down from 15% a year earlier, signaling easing price pressures across the economy.
Food and non-alcoholic beverages rose 10.8%, driven by higher prices for vegetables, meat, dairy, fruits, cooking oil, and sugar. Non-food inflation stood at 8.1%, with notable increases in transport (13.3%), household goods (10.6%), and restaurants and hotels (12.4%).
Analysts say the moderating inflation trend could support the efforts of the National Bank of Ethiopia to stabilize the birr while maintaining economic growth.
Ethiopia Raises Fuel Prices Again
Ministry of Trade and Regional Integration has increased retail fuel prices as part of the government’s ongoing subsidy rollback, pushing petrol to 132.18 birr per litre and diesel to 139.64 birr. The new rates took effect on March 10 and apply first in Addis Ababa as the national benchmark.
Other revised prices include kerosene at 146.14 birr, light black diesel at 137.03 birr, heavy black diesel at 133.45 birr, and aviation fuel at 145.23 birr per litre.
The adjustments reflect Ethiopia’s continued effort to phase out long-standing fuel subsidies and align domestic prices more closely with international fuel import costs. Petrol prices have risen sharply in recent years, climbing from below 80 birr per litre in early 2023 to over 132 birr today.
SME & Private Sector
MSMEs Face 2.6 Trillion Birr Financing Gap
A new study presented at a forum organized by the Addis Ababa Chamber of Commerce and Sectoral Associations found that micro, small, and medium enterprises (MSMEs) in Ethiopia face a financing gap of about 2.6 trillion birr.
Despite the country having over two million MSMEs, only 1.9% of small businesses access bank loans, compared to 35.5% of large firms. Researchers say strict collateral requirements, state ownership of land, and rising lease costs continue to limit businesses’ ability to secure financing.
Experts at the forum urged reforms such as movable collateral registries and data-based credit assessment systems to expand access to credit and unlock private sector growth. Source: The Reporter
Development Finance
AfDB Flags Financing Shortfall in Ethiopia Strategy
A mid-term review by the African Development Bank shows Ethiopia has secured $538.8 million under its 2023–2027 Country Strategy Paper, less than half of the $1.11 billion initially planned—highlighting a financing gap of roughly half a billion dollars.
Despite the shortfall, funding has focused mainly on energy, agriculture, transport, and governance, while $90 million in trade finance guarantees was approved for Dashen Bank and Awash Bank.
The review notes that while inflation has eased and growth remains relatively strong, Ethiopia still faces structural challenges including youth unemployment, limited economic diversification, and widespread poverty, with 68.7% of the population classified as multidimensionally poor.
International Cooperation
Ethiopia Highlights Strategic Partnership with Italy
Ethiopia reaffirmed its long-standing development partnership with Italy during the OECD peer review of Italy’s development cooperation in Paris under the OECD Development Assistance Committee.
State Minister Semereta Sewasew highlighted nearly five decades of cooperation supporting sectors such as healthcare, agriculture, renewable energy, infrastructure, and the coffee value chain.
The two countries are currently implementing a €250 million cooperation framework for 2026–2028, alongside $550 million in ongoing programs, covering areas like budget support, food security, infrastructure, and private sector investment. Officials say the partnership will continue focusing on inclusive growth, climate-resilient development, and economic reform.
Banking & Digital Payments
Abyssinia Bank, Visa Sign 5-Year Digital Payments Deal
Bank of Abyssinia and Visa Inc. have signed a five-year strategic partnership to accelerate digital payments in Ethiopia.
The agreement aims to expand financial inclusion, strengthen digital banking services, and promote cashless transactions. According to Chief Digital Banking Officer Sosna Mengesha, the collaboration will enhance secure and innovative payment solutions.
The partnership will also allow the bank to leverage Visa’s global payment network to develop premium debit products, improve payment infrastructure, and expand cross-border digital payment capabilities for Ethiopian consumers and merchants.
Policy & Immigration
Ethiopia Launches $10,000 Golden Visa
Ethiopia has introduced a 10-year “Golden Visa” priced at $10,000 as part of a broader revision of immigration and citizenship service fees approved by the Council of Ministers. The new regulation will take effect once published in the Negarit Gazette.
The reforms also introduce premium passport services, including a six-hour passport for 40,000 birr and a two-day door-to-door delivery service for 50,000 birr. Fees for residence permits and investor visas have also increased, with a five-year residence permit now costing $3,000.
According to the Ethiopian Immigration and Citizenship Service, visa-related services remain a major revenue source, generating 10.5 billion birr in the first three months of the fiscal year. Officials say the changes aim to modernize the system and support new policies allowing foreign nationals to own property in Ethiopia.
That’s your Monday morning! ☕
From record-breaking MIDROC growth to digital ID rollout, rising fuel prices, and Ethiopia’s new Golden Visa, the week is already moving fast. Keep your coffee close, your eyes open, and remember: markets move quickly, but you’re now one step ahead.
See you next Monday for the next round of breakfast stories!
