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.
Banking & Finance
Abay Bank Reports Strong Growth
Abay Bank’s 2024/25 results reveal a robust performance: revenue surged 58% to 13 billion Birr, while profit more than doubled to 4.2 billion Birr. Deposits reached 71.9 billion Birr, and loans grew to 49.9 billion Birr. Digital banking is booming, with 3.1 million users (+49%), and most transactions are now digital. CEO Yehuala Gessese highlighted the impact of the Fayda Digital ID and the rising cyber fraud risks. Total assets climbed to 91.3 billion Birr, reflecting strong customer trust and ongoing strategic initiatives.
CBE Launches ‘CBE Beje’ Digital Savings & Loan Service
The Commercial Bank of Ethiopia launched CBE Beje, a digital platform offering collateral-free loans from 500 to 150,000 Birr via the CBE Birr Plus app. Targeting salary earners who receive payments through CBE Birr, the platform has already disbursed over 1.6 billion Birr since piloting in January 2024. The service currently benefits employees from 83 institutions, with plans to expand nationwide. Read more
IMF Talks with Ethiopia Advance, Yuan Debt Strategy Under Watch
Ethiopia and the IMF are making “good progress” toward a staff-level agreement on the fourth review of the Extended Credit Facility, though final issues remain. Completion would unlock the next disbursement, vital for debt negotiations and economic stabilization. Meanwhile, the IMF renewed its warning on Ethiopia’s yuan-denominated debt repayments, citing currency risks amid FX shortages, inflation, and the weak birr.
Interview
SantimPay: Simplifying Payments Across Ethiopia
SantimPay, led by CEO Tinsaye, continues to transform Ethiopia’s digital payments landscape. The platform features universal QR payments, merchant-focused solutions, and USSD services for the unbanked. SantimPay has expanded nationwide and recently entered Djibouti, while also preparing to participate in Ethiopia’s capital market and introduce neo-banking services. Read more
Fintech & Digital Finance
LakiPay Launches SME Lending Platform
Fintech startup LakiPay, founded by former ArifPay CEO Habtamu Tadesse, has received commercial approval from the National Bank of Ethiopia. The platform supports SME lending and digital payments, helping lenders assess risk and connect with banks and mobile money providers. Future expansions include a payment gateway and remittance services, aligning with Ethiopia’s rapidly growing digital finance ecosystem. Read more
Ethiopia Cracks Down on Illegal FX and Crypto Transfers
Authorities have arrested 112 people and frozen 519 bank accounts in a major operation against illegal foreign exchange and cryptocurrency transactions. Led by NISS and coordinated with federal and regional police, the crackdown targets unauthorized transfers, money laundering, tax evasion, and FX embezzlement, aiming to safeguard the formal FX system and national financial stability. Read more
Capital Markets & Industrial Development
Enat Bank and i-Capital Plan Ethiopia’s First Gender Bond
Enat Bank is partnering with i-Capital to design the country’s first Gender Bond, aimed at financing women-led businesses and social projects. If approved, Ethiopia would join a select group of African countries issuing gender-focused bonds, addressing financing gaps for women-led SMEs and supporting inclusive economic growth.
WCIB Completes Microfinance and Bank Prospectuses
Wegagen Capital Investment Bank (WCIB) has finalized Aggar Microfinance and Hibret Bank prospectuses for submission to the Ethiopian Capital Market Authority (ECMA). The milestones highlight WCIB’s role in supporting Ethiopia’s growing capital markets and securities sector development.
Ethiopia, RUSAL Advance $1B Aluminium Smelter Project
Ethiopian Investment Holdings (EIH) signed an MoU with RUSAL to develop a $1 billion aluminium smelter, producing 500,000 tons annually. The project will reduce imports, meet domestic demand, and boost industrial capacity. Phase I financing is 70% secured, with site selection and feasibility studies underway.
Insurance
Insurance Sector Growing—but Still Struggling
Ethiopia’s insurance industry is expanding, with general premiums at 38 billion Birr and life insurance at 2.7 billion Birr, yet penetration remains below 1% of GDP. Structural challenges include:
- Heavy reliance on motor insurance,
- Limited product diversification,
- Low financial literacy,
- Thin distribution channels,
- Slow regulatory reforms.
Only 7 of 18 insurers meet the new 400M Birr capital threshold, and adoption of risk-based capital frameworks will require more expertise. Experts highlight the urgent need for a standalone insurance regulator, improved digital adoption, stronger governance, and better industry collaboration. Read more
Health & Safety
Marburg Virus Outbreak in Jinka
Ethiopia has confirmed a Marburg virus outbreak in Jinka, Southern Region. Authorities, with support from Africa CDC and partners, have initiated enhanced surveillance, infection control, and community response measures. The outbreak leverages genomic and diagnostic capacity and is integrated with broader disease monitoring to prevent regional spread.
Stay tuned for next week’s insights, where we unpack more sectoral trends and policy moves shaping Ethiopia’s future.
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