Good morning!
The Ethiopian Securities Exchange changed chief executives on Friday. Tilahun Esmael Kassahun (PhD), who carried the exchange from a project office in 2022 to a working securities market in January 2025, is out. Yodit Kassa, who joined in late 2023 and worked her way from Chief Business Development Officer to Chief Operating Officer, is in.
Then read the rest of the week beside it. Global Bank has an acting CEO because the regulator removed the last one. Tewolde Gebremariam, the man who built Ethiopian Airlines into what it is, has taken the top job at Air India. The National ID Program stopped being a program and became a company. Tsedey Bank went from a 2.13 billion birr loss to a 4.3 billion birr profit within months of a new president walking in. KEFI has finished permitting Tulu Kapi and started pouring concrete.
This was the week a lot of Ethiopian institutions passed from the first kind of person to the second.
And the Ethiopian Electric Utility supplied the counter-example, quietly moving its full-electrification deadline from 2030 to 2035 in the same breath as reporting a 74 percent revenue jump. Announcing is easy. Delivering is the handover problem in its purest form.
Now grab your buna. There’s a lot on the table.
The Handover
ESX’s founding CEO steps down as Yodit Kassa takes over
The Ethiopian Securities Exchange announced on Friday that founding Chief Executive Officer Tilahun Esmael Kassahun (PhD) is departing, with the Board of Directors appointing Yodit Kassa as his successor. The Exchange thanked Tilahun for his role in establishing the market and congratulated Yodit on the appointment.
Yodit is an internal promotion. She joined ESX in late 2023 as Chief Business Development Officer after roughly a decade with the Association of Chartered Certified Accountants, working across its Africa team, and later served as Chief Operating Officer. She holds an MSc in Accounting and Finance from Addis Ababa University, and her portfolio at the Exchange has covered business development, issuer engagement, the listings pipeline and investor education.
Tilahun joined the ESX project office in May 2022 as Senior Project Manager, arriving from the International Finance Corporation, and became founding CEO after the Exchange was incorporated as a share company in October 2023. Under him, ESX launched its pilot money market platform in October 2024 and opened securities trading in January 2025. He had set the Exchange an ambition of 90 listed companies within a decade.
This is the cleanest institutional handover Ethiopia’s capital market has had, and the timing tells you what phase the Exchange thinks it is entering. The founding job was regulatory architecture, systems and legitimacy: convincing a country with no securities market that one could exist. That job is finished. The next one is harder and less glamorous. ESX has a functioning money market and a growing registry of listed and registered companies, but equity trading remains thin, and the number that matters now is not how many companies are on the board but how often their shares actually change hands. Yodit inherits a market that has proved it can open. She has to prove it can run.
Banking’s Own Transitions
Global Bank names Sahlemichael Mekonnen acting CEO
Global Bank Ethiopia has appointed Sahlemichael Mekonnen as Acting Chief Executive Officer, following the National Bank of Ethiopia’s removal of Tesfaye Boru from the role effective 28 July and the five-year industry ban that came with it.
Sahlemichael brings more than 21 years across Ethiopian banking, spanning operations, credit, risk management, retail, digital banking and compliance. He has already held senior posts inside Global Bank, including Chief Credit and Banking Officer and Chief Risk and Banking Officer, and earlier served as Director of E-Banking and Operations at Addis International Bank, Director of Retail Banking at Debub Global Bank, and in senior credit and compliance roles at the former Construction and Business Bank and the Commercial Bank of Ethiopia.
Tsedey Bank posts 4.3 billion birr after a year in the red
Tsedey Bank reported a pre-tax profit of 4.3 billion birr for 2025/26, presented at a three-day performance review and planning forum at its headquarters attended by the board, senior executives, and managers from its 11 districts and 637 branches.
The turnaround is the story. A year earlier the bank posted a 2.13 billion birr loss, a loss rooted in core operations rather than the foreign exchange shocks that hit several of its peers. Non-performing loans fell from 21.3 percent to 6.4 percent, a reduction of roughly 6.1 billion birr in bad loans. Deposits rose 34 percent to 61.2 billion birr. Foreign exchange earnings tripled to USD 53.7 million. President Yohannes Ayalew (PhD), an economist and former NBE vice governor appointed in February 2026, credited three institutional reform initiatives implemented over the previous five months. The bank says it intends to be among Ethiopia’s four largest by 2030.
Siket Bank reports 1.54 billion birr pre-tax as assets grow 51 percent
Siket Bank announced total income of 4.1 billion birr and pre-tax profit of over 1.54 billion birr for the completed fiscal year, disclosed at its annual management meeting reviewing performance and setting the year ahead.
Total capital reached 10.3 billion birr with paid-up capital at 7.9 billion. Deposit mobilisation brought in 14.7 billion birr, and total assets climbed 51 percent to 29 billion birr. CEO Damtew Alemayehu said new strategic plans have been prepared to strengthen competitiveness, widen access to digital banking, and improve service quality. Districts, branches and staff with standout performance were recognised at the close of the conference.
Capital Market
ECMA registers 11.67 million Hibret Bank shares
The Ethiopian Capital Market Authority has approved the registration of 11,665,497 existing Hibret Bank S.C. shares, following approval of the bank’s Registration Statement on 6 August under the Capital Market Proclamation No. 1248/2021 and the Public Offer and Trading of Securities Directive No. 1030/2024.
These are existing shares already held by Hibret shareholders. The registration is not a new public offering, and ECMA was explicit that the notice is informational rather than any endorsement of the securities.
The registration pipeline keeps thickening, and Hibret is one of the larger blocks to enter it: 11.67 million shares against Wegagen’s 10.09 million and Zemen’s 15 million. Worth holding two facts together, though. Registration brings a company’s share register under the regulatory framework. It does not create a market in those shares. The gap between how many securities are registered and how many actually trade is the gap Yodit Kassa now owns.
Enat Bank moves the gender bond from concept to execution
Enat Bank has signed a Memorandum of Understanding with I Capital Africa Institute and FSD Ethiopia to advance Ethiopia’s first private-sector Gender Bond, covering the work required before and after issuance: structuring, regulatory compliance, investor engagement, launch and post-issuance management.
The partners will also help select an independent consultant to deliver a Second-Party Opinion and confirm the bond framework aligns with International Capital Market Association principles. Enat CEO Ermias Andarge (PhD) framed the agreement as the step that takes the initiative from concept to implementation, aimed at widening access to finance for underserved communities. I Capital Africa Institute CEO Gemechu Waktola (PhD) reaffirmed a commitment to global standards, and FSD Ethiopia CEO Hikmet Abdella pointed to the role in inclusive finance and women’s economic empowerment.
The Price of Money
Treasury bill yields keep falling, and banks keep buying anyway
Government borrowing costs have collapsed. Birrmetrics reports Treasury bill yields down to 5.5 percent, a 61 percent fall in a single year. The weighted average at the 22 July auction came in at 9.18 percent, against 15.36 percent in July 2025, and the fiscal year’s opening auction on 8 July cleared 30.71 billion birr at roughly 9.2 percent, returning Ethiopia to single-digit T-bill rates after an extended period of expensive money.
What makes it striking is that borrowing has not slowed. Roughly 64 billion birr was absorbed in July alone, and the two July auctions drew bids of 208.21 billion birr, close to three and a half times the amount offered. The Ministry of Finance plans to raise 197.2 billion birr across seven auctions between 8 July and 30 September.
Aviation
Tewolde Gebremariam takes the helm at Air India
Air India has appointed Tewolde Gebremariam as Chief Executive Officer and Managing Director, succeeding Campbell Wilson, who resigned in April. The board evaluated internal and external candidates before selecting him unanimously, and Chairman N. Chandrasekaran said the carrier is moving from stabilisation and integration into an execution and expansion phase.
Tewolde spent more than 36 years at Ethiopian Airlines, leading the group from 2011 to 2022, a period in which revenue grew more than fourfold and the fleet expanded nearly threefold while the airline stayed profitable in a region where flag carriers rarely are. He inherits a Tata-owned airline still recovering from last year’s crash and carrying losses linked to geopolitical disruption.
Ethiopia’s most valuable export this week was a manager. Tewolde is being hired for precisely the thing that is hardest to build and easiest to lose: the operating discipline that turns fleet and route ambition into money. It is a genuine national credit that an Ethiopian executive is the answer to that question for a carrier of Air India’s scale. It is also a reminder that the institutional knowledge built at Bole is portable, and that the countries competing for it have deeper pockets.
Ethiopian adds 10 Dreamliners to Boeing’s landing gear exchange
Ethiopian Airlines has expanded its Boeing 787 Landing Gear Exchange Program to cover 10 Boeing 787-9 Dreamliners, announced at the Farnborough International Airshow. The airline already has 19 787-8s enrolled. The two companies also renewed a Tailored Parts Package agreement.
The programme lets the airline swap landing gear needing overhaul for certified, ready-to-install units from Boeing’s global pool, with access to loaners during aircraft-on-ground events. Chief Operating Officer Retta Melaku said the model has already proved its value on the 787-8 fleet.
Digital Rails
The National ID Program becomes a company
Ethiopia’s National ID Program has been reestablished as Faydaverse, a State-Owned Enterprise inside the Ethiopian Investment Holdings portfolio, inaugurated on 4 August. The new entity’s mandate is to develop, operate and scale trusted digital public infrastructure for citizens, businesses and public institutions.
The numbers behind the transition are substantial. The programme has registered around 50 million Ethiopians, integrated 150 million records and processed more than 168 million authentication transactions, with a target of 90 million registrations by the end of 2026. Faydaverse will offer eKYC services, the FaydaPass trust ecosystem, enterprise identity solutions and implementation consultancy, and has already signed agreements to provide technical assistance to Mozambique, Zambia, Burundi and Niger. Officials expect its activities to contribute 6 percent of GDP by 2030. EIH CEO Brook Taye (PhD) described digital public infrastructure as a driver of growth, financial inclusion and service delivery, and said the move strengthens governance and opens the door to strategic partnerships.
CNetPay licensed as a payment system operator
The National Bank of Ethiopia has granted CNETPay Financial Technologies S.C. a Payment System Operator licence, number NPS/PSO/031/2026, authorising it to operate payment gateway and point-of-sale services under the National Payment System framework. The application dates back to September 2024.
Commercial operations are not immediate. CNetPay must complete a three-month pilot, submit periodic performance reports, establish operational policies and risk management systems, and obtain government system security clearance before final approval. The company holds subscribed capital of ETB 33.5 million and paid-up capital of ETB 21.9 million, and belongs to the CNET Technology Group, which has operated in Ethiopia’s technology sector for 24 years.
Abay Bank launches an international prepaid Visa card
Abay Bank, in partnership with Visa, has launched the Abay Classic International Pre-Paid Visa Card, enabling overseas ATM withdrawals, point-of-sale payments and online purchases for retail and business customers. CEO Yehuala Gessesse pitched it at businesses paying overseas suppliers, professionals accessing global digital platforms and travellers.
Visa’s Eastern Africa Cluster Head and Ethiopia Country Manager Yared Endale noted the company’s new local office, one of ten across Africa. Abay currently runs 370 ATMs and 400 POS terminals alongside internet and mobile banking.
Ethiopost revenue climbs 30 percent to 3.85 billion birr
Ethiopost generated 3.85 billion birr in revenue in 2025/26, a 30 percent increase, disclosed at a four-day leadership forum bringing together executives and regional leaders. The operator has completed its previous strategy and drafted a new three-year plan centred on technology-driven, customer-centric services.
Some context for that figure: this is an institution that was 78 million birr in the red at the end of 2019/20 and struggling to make payroll for 2,000-plus staff. A 132-year-old postal service growing 30 percent in a year is not a letters business. It is logistics and last-mile delivery riding on the same e-commerce wave the payments stories above are built for.
Ground and Grid
Gold pushes mining exports past USD 5.7 billion
Ethiopia earned more than USD 5.7 billion from mineral exports in 2025/26, Mining Minister Habtamu Tegegne told a performance review, with gold alone generating USD 5.65 billion from 44.067 tonnes produced. Artisanal miners accounted for 40.86 tonnes of that; licensed companies produced 3.209 tonnes. The sector created permanent employment for more than 271,000 people, and the ministry has set a USD 6.7 billion target for 2026/27. Natural gas extraction also began during the year, currently feeding ceramic factories.
Hold that against the national total. Ethiopia earned a record USD 10.7 billion from exports last fiscal year, and gold alone is 53 percent of it. Mining revenue tripled from USD 1.88 billion the year before. That is a spectacular number and a structural warning at once. A country whose single largest export earner is a metal priced in London, produced overwhelmingly by artisanal miners and bought at a premium by its own central bank, has solved a foreign exchange problem by importing a commodity price risk. Last week’s IMF review asked the NBE to plan an exit from that gold-buying arrangement by December. These figures are why it will be difficult.
Tulu Kapi moves from permits to construction
KEFI Gold and Copper reports that development at Tulu Kapi is on schedule, with contractors mobilising personnel, subcontractors and systems on site. Lycopodium, Ethiopian Electric Power, the Ethiopian Roads Administration and BCM have begun construction preparations. Replacement housing has been built, an electrical substation installed, and a new access road connects the site to the main bitumen highway.
More than half the major processing plant equipment has been ordered or is ready to order, including the SAG mill, crusher systems, gold recovery equipment and water treatment facilities. All Phase 1 resettlement compensation agreements are complete, with roughly 90 percent of payments made, and Phase 2 preparations are underway. Executive Chairman Harry Anagnostaras-Adams said the focus has shifted to execution and completing debt drawdown, with project debt scheduled for a Q4 2026 trigger. Commissioning is targeted for late 2027 and full production for mid-2028. The Tulu Kapi Charitable Endowment has launched plant nurseries and local agricultural projects, and KEFI has reassembled an exploration team to evaluate opportunities across Ethiopia and the wider Arabian-Nubian Shield.
EEU pushes full electrification back five years
The Ethiopian Electric Utility has moved its full-electrification target from 2030 to 2035. CEO Getu Geremew said the utility revised its vision and mission to align with evolving development strategies and concluded the original deadline was not achievable given the scale of infrastructure required.
The slip comes alongside strong numbers. Energy-sales revenue reached 76.53 billion birr including exports, a 74.3 percent increase and 101.8 percent of target. The figure includes USD 13.4 million collected from seven high-voltage customers billed in foreign currency. Exports to Kenya hit 497 GWh against a 500 GWh target. EEU electrified 205 rural towns and villages, 179 through the grid and 26 via off-grid solar, taking the rural electrification total to 7,908. Capital expenditure rose to 65.59 billion birr, 71.1 percent above plan, on project costs inflated by the Middle East crisis. New distribution lines came in at 13,269 kilometres against a 19,760-kilometre target, or 67.1 percent. Separately, 124 people were prosecuted for electricity theft and infrastructure damage, with sentences of up to 15 years. Source: Birrmetrics, Capital Ethiopia
🎧 On the Podcast
The latest episode is live.
We sit down with Lydia Meried, instructor of our Fundamental Analysis course, to walk through what the course actually teaches and why reading a company before you buy it is the skill the Ethiopian market most needs right now.
📖 Deep Dive: Are Ethiopians Unwilling to Work, Or Is Work Unwilling to Pay?
Somewhere along the way, Ethiopia’s stalled job market became a story about laziness. Meti Kumera went looking for the evidence behind it and found something more uncomfortable.
Start with a question that should be simple: what is youth unemployment in Ethiopia? The International Labour Organization estimates 5.4 percent. Ethiopia’s own domestic data puts it near 27 percent as of early 2026. Both describe the same labour market. The gap is definitional. Under ILO methodology, almost any income-generating activity counts as employment, whether or not it is stable, adequately paid, or enough to live on. Ethiopia’s domestic statistics try to capture what ordinary people mean when they say they have a job.
That gap matters because 85 percent of the labour market is informal, characterised by irregular wages and limited security. Declining that kind of work says more about the work than the worker.
The migration evidence makes the point harder to dodge. Roughly 200,000 Ethiopian women leave the country every year for domestic work in the Gulf, and Ethiopia has signed bilateral agreements with Saudi Arabia to facilitate it. These are precisely the physically demanding, low-status jobs employers at home say they cannot fill. If Ethiopians will travel thousands of kilometres away from their families to do that work abroad, the constraint is not willingness. It is what the work pays and what conditions come with it. Survey evidence also shows that education, not job avoidance, is the primary driver of rural-to-urban youth migration.
The piece then turns the same question on the public sector, where long queues and inconsistent service are usually blamed on individual effort. Ethiopia scored 38 out of 100 on Transparency International’s 2025 Corruption Perceptions Index, ranking 96th of 182 countries, against a sub-Saharan African average of 32 and a regional best of 68. The World Bank’s Government Effectiveness Index, which measures civil service and public service quality, gives Ethiopia 38.78 out of 100 for 2024. Those are institutional numbers, not character numbers.
Labour shortages are real, particularly in agriculture, construction and manufacturing. But a shortage only proves that at current wages and conditions, not enough workers will take the job. That is a problem of incentives, and the distinction changes the entire policy response. If the problem is attitude, you run campaigns. If the problem is job quality, wages and institutional performance, you fix the labour market.
This is the same argument the rest of the newsletter has been making in a different register. ESX can be founded and still not trade. EEU can raise revenue 74 percent and still miss its line-building target by a third. Tsedey can carry 637 branches and still lose money for a year. Building an institution and making it work are separate problems, and Ethiopia keeps discovering that the second one is where the difficulty lives.
Every story this week is the same story at a different scale. A founder hands over an exchange. A regulator hands a bank to a new chief executive. A project office becomes a company. A microfinance institution finishes becoming a bank and finds out what that costs. A mining company stops permitting and starts building. An airline executive who built one carrier goes to rebuild another.
The pattern underneath is that Ethiopia has spent a decade getting very good at founding things. Exchanges, digital ID systems, new banks, thematic bonds, master plans. Founding is visible, it photographs well, and it has a ribbon at the end.
Running things is the part with no ceremony. It is an NPL ratio, a distribution line built to spec, a share that actually trades, a deadline that slips five years because copper in the ground is slower than money on a slide. It is also, as this week’s deep dive argues about the labour market, the part that decides whether any of it reaches the people paying for it.
The founders have done their work. The handover is the easy part.
Keep your coffee strong. See you next Monday. ☕