Ethiopia continues to drive economic transformation with strategic fiscal planning, international partnerships, and innovative startups. This week’s updates highlight progress in macroeconomic reforms, technology-driven solutions, policy advancements, trade facilitation, and new leadership at the African Development Bank Group alongside persistent challenges. Here’s the latest roundup based on key developments.
Macroeconomics & Fiscal Policy
Five-Year Fiscal Framework Approved
The Council of Ministers has green light the 2026–2030 Macroeconomic and Fiscal Framework to guide budget planning and broaden the revenue base. This strategic plan supports sustainable growth, youth employment, and women’s health initiatives, with additional loan agreements to fund these priorities. Read here
IMF Agreement Advances Reforms
Ethiopia and the IMF have reached a staff-level agreement on the third review of the $3.4 billion Extended Credit Facility (ECF). Pending approval, this could unlock $260 million to bolster macroeconomic reforms. Despite improved economic indicators, the gap between official and parallel forex rates remains a challenge. Read here
Africa’s Resilient Economic Outlook
The African Development Bank’s 2025 African Economic Outlook projects Africa’s growth at 3.9% in 2025 and 4% in 2026, with Ethiopia among four countries potentially reaching 7% growth, critical for poverty reduction. Despite global headwinds, Ethiopia’s resilience is driven by effective reforms. The report emphasizes mobilizing $1.43 trillion in domestic resources through tax efficiency, natural capital, and the African Continental Free Trade Area, while addressing $587 billion in financial leakages. Afdb
Technology & Innovation
Electric Mobility Startup Faces Challenges
Dodai, an electric vehicle startup, targets 100,000 e-motorbike sales by 2029 but faces regulatory barriers and forex shortages. Its battery-swapping model and partnerships, including with the Ethiopian Postal Service, position it as a potential game-changer in urban mobility. Birr Metrics
Beemi Enhances Livestreaming for Creators
Beemi, an Addis Ababa-based startup, is transforming livestreaming by integrating social games like trivia into platforms like TikTok, YouTube, and Twitch. Optimized for mobile users, Beemi’s tools boost audience engagement and monetization through branded ads, subscriptions, and a marketplace for streamable games. Supported by Renew Capital, Beemi aims to expand its platform and partnerships, empowering Africa’s mobile-first creators. Renew Capital
Telecommunications & Digital Infrastructure
Ethio Telecom Partners with Bankai Group
Ethio Telecom has announced a strategic partnership with Bankai Group, designating them as the preferential international voice termination partner into Ethiopia, effective June 1, 2025. Excluding traffic from Saudi Arabia, UAE, Sudan, Jordan, Somalia, and Djibouti, this collaboration aims to enhance voice quality, ensure regulatory compliance, and deliver fraud-resistant voice services, strengthening Ethiopia’s global telecom ecosystem. Ethio telecom
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Tourism & Hospitality
Addis Ababa Hotel Star Ratings Updated
The Ethiopian Ministry of Tourism released its 2017 E.C. (2024/25 G.C.) hotel star grading reassessment for Addis Ababa, evaluating 40 hotels. Three hotels were newly elevated to five-star status, joining eight others, while two received four-star rankings. Despite these upgrades, Addis Ababa’s 11 five-star hotels remain insufficient for its role as Africa’s diplomatic capital, hosting the African Union and UNECA. The grading, conducted with regional experts and professional associations, ensures transparency and compliance with international standards. MOT
Trade & Investment
Afreximbank Expands Engagement in Ethiopia
Afreximbank is seeking to expand its intervention in Ethiopia beyond banking by engaging business communities through a roadshow in Addis Ababa on June 2–3, 2025, themed “Empowering Ethiopia’s Growth.” The bank has facilitated $4.7 billion in trade transactions over the past five years and settled $32 billion in international trade payments in 2024 via its Trade Facilitation and Payment Services programs. This initiative aims to foster development in manufacturing, agribusiness, infrastructure, energy, and tourism. ENA
Others
Sidi Ould Tah Elected AfDB President
Sidi Ould Tah of Mauritania was elected President of the African Development Bank Group on May 30, 2025, during the Bank’s Annual Meetings in Abidjan, Côte d’Ivoire. With over 35 years of experience, including leading the Arab Bank for Economic Development in Africa (BADEA), Tah will assume office on September 1, 2025, for a five-year term. AFDB
Youth-Centric Agricultural Modernization
At the African Development Bank’s Annual Meetings in Abidjan on May 29, 2025, Ethiopia’s State Minister of Finance, W/ro Semereta Sewasew, emphasized modernizing agriculture to create jobs for youth. She highlighted the need for SME financing, youth empowerment, and entrepreneurship, praising the AfDB’s Youth Entrepreneurship Investment Bank initiative. In bilateral talks, she urged IFAD to increase concessional financing and support climate-resilient practices, while also exploring partnerships with India’s Exim Bank to advance Ethiopia’s development priorities. MOF
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— Written by the StockMarket.et Newsroom
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