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 & Macroeconomics
Ethiopia’s Inflation Slows to 11.7% in October
Ethiopia’s inflation rate dropped to 11.7% in October 2025, down from 13.2% in September and 19.3% a year ago, according to the Ethiopian Statistical Service. Food inflation eased to 10.2%, while non-food inflation declined to 14.2%, reflecting improved supply stability and stronger economic control.
MoF Clarifies Optional Minimum Tax for Wholesalers
The Ministry of Finance eased the tax burden on wholesalers under the Income Tax (Amendment) Proclamation No. 1395/2017. Optional minimum tax will now be calculated only on profit margins when these are clearly stated in contracts, removing the prior 15% mandatory margin requirement. Traders welcomed the move as fair and aligned with market realities.
Banking & Finance
NBE Introduces New Capital and Forex Regulations
- Capital Adequacy: The National Bank of Ethiopia (NBE) set a new minimum capital ratio for banks: 7% CET1, 9% Tier 1, and 11% Total Capital, covering credit, market, and operational risks. Full compliance is expected by December 2026, with quarterly reporting starting March 2026.
- Forex Exposure: Banks’ total foreign exchange exposure is capped at ±18% of Tier 1 capital daily, effective November 10, 2025. Non-compliance triggers fines, interest penalties, or restrictions on FX activities, strengthening risk management and market stability. Read more
Coopay E-birr Transactions Surpass ETB 4 Trillion
The Cooperative Bank of Oromia’s Coopay E-birr platform now serves 19.5 million users and has processed over ETB 4 trillion in transactions. The platform offers transfers, payments, and utility services, boosting Ethiopia’s transition toward a cashless, digital economy.
Sidama Bank Launches New Digital Mobile Banking App
Sidama Bank unveiled a new mobile banking app enabling transfers, payments, airtime top-ups, and integration with Telebirr and other banking services. CEO Tadesse Hatiya emphasized that the app will improve customer convenience and competitiveness, with digital lending features planned for the future.
Deep-Dive
The Hidden Impact of Grant Money in African Businesses
Grant funding can be a powerful catalyst for African startups, providing non-dilutive capital to test ideas, innovate, and pursue social impact. However, over-reliance can create dependency, mission drift, and deter private investment, turning “free money” into a trap rather than a bridge.
When used strategically, grants serve as launchpads for growth—validating business models, attracting investors, and funding early-stage experimentation. Success depends on a phased approach: leverage grants for milestones, plan for revenue-driven sustainability, prepare for private investment, and scale commercially.
The key message: grants should bridge to independence, not replace it—empowering innovation while fostering market resilience. Read more
Banking Technology & Digital Finance
Dashen Bank Super App Hits One Million Users
Dashen Bank’s Super App reached one million active users in less than a year, facilitating hundreds of millions in daily transactions. CEO Asfaw Alemu called it a milestone in Ethiopia’s digital banking journey, praising EagleLion System Technology, the app developer.
M-PESA Ethiopia Expands Rapidly to 3.4 Million Users
M-PESA Ethiopia grew 174.8% YoY to 3.4 million active users, processing ETB 12.3 billion over six months. The platform now serves 30,700+ merchants, integrates fully with EthSwitch for QR payments, and hosts 28 mini apps and charity platforms. CEO Elsa Muzzolini emphasized building an inclusive and secure digital financial ecosystem. Read more
Awash Bank Launches MESMER Digital Lending for SMEs
Awash Bank’s MESMER Digital Lending platform allows SMEs to apply for loans via the Awash Birr Pro app or *901#. Over 66,000 SMEs applied, and 13,000 received ETB 1.3 billion, with women entrepreneurs accounting for 32% of beneficiaries. The move strengthens financial inclusion and tech-driven SME empowerment. Read more
Safaricom Profit Nearly Triples as Ethiopia Unit Loss Narrows
Safaricom Plc’s net profit surged 192% to $225 million, driven by M-PESA and data growth. Safaricom Ethiopia more than doubled revenue to $47.9 million, reaching 11.2 million users. The company launched Fintech 2.0, an AI-powered M-PESA upgrade, doubling processing capacity. Read more
Capital Markets & Investments
ECMA Licenses ProInvest Capital as Securities Investment Advisor
The Ethiopian Capital Market Authority (ECMA) granted ProInvest Capital PLC a Capital Market Service Provider license, authorizing it as a Securities Investment Advisor. This brings the total licensed CMSPs in Ethiopia to 12, expanding access to professional investment advisory services. Read more
ECMA Launches Dual AML/CFT Framework
ECMA introduced two frameworks to strengthen anti-money laundering and counter-terrorism financing:
- Customer Due Diligence & Reporting Guidelines (10-year data retention, risk-based verification, and reporting to FIS)
- Mandatory AML/CFT Training (certification and ongoing staff education for market professionals) The move aims to align Ethiopia’s capital market with global standards and boost investor confidence. Read more
Awash Insurance Posts Historic 1 Billion Birr Profit
Awash Insurance S.A. became the first private insurer in Ethiopia to record a pre-tax profit exceeding 1 billion birr, marking 31 consecutive years of profitability. Total revenue reached ETB 4.53 billion, with strong growth across General (+43%), Life (+48%), and Takaful (+124%) insurance lines. The company continues to expand digital services and invest in social and climate initiatives. Read more
Technology & Digital Infrastructure
Phoenix Group Opens 30MW Hydropower-Powered Crypto Facility in Addis Ababa
Phoenix Group, a subsidiary of IHC, inaugurated a 30MW crypto-mining and digital infrastructure facility in Bole Lemi Industrial Park. Powered by carbon-neutral hydropower, it adds 1.9 EH/s to global computing capacity and aligns with Ethiopia’s goals to attract renewable energy investment and strengthen AI and HPC capabilities. Read more
Ethiopia Quietly Restricts Crypto Exchange Websites
The government restricted access to Binance, OKX, and Bybit websites, while mobile apps remain functional. The move follows tighter foreign exchange controls under the NBE. Binance confirmed ongoing discussions with regulators to comply, while analysts see it as a step to curb unregulated capital flows and stabilize the Birr ahead of a formal crypto framework expected in 2026. 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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