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
Lion Bank Returns to Profitability Amid Governance Tensions
Lion International Bank reported a 1.8 billion birr pre-tax profit for FY 2024/25 — a 94% increase from last year. Total assets reached 54 billion birr, while deposits climbed 23% to 44 billion birr. However, the turnaround is clouded by boardroom disputes over governance and FX operations. Leadership has since restructured the board, cleared foreign obligations, and launched a three-year plan to modernize and grow. Read more
Birhan Bank Reports 54.7% EPS for FY 2024/25
Birhan Bank posted a 2.5 billion birr pre-tax profit, up 66.5%, with assets rising 28.1% to 58.9 billion birr. Deposits grew 20.6%, and loans reached 35.97 billion birr. The bank achieved 54.7% EPS, met the NBE’s 5 billion birr capital requirement, and launched a new digital-focused strategic plan.
NiB Bank Reports ETB 2.9 Billion Loss Amid FX Market Reforms
NiB Bank recorded a 2.9 billion birr loss for FY 2024/25 following a 4.4 billion birr FX revaluation loss tied to exchange rate unification. Despite this, income rose 4.6% to 11.3 billion birr, with loans at 44.7 billion birr and deposits at 51.3 billion birr. The bank pledged to improve liquidity and asset quality.
First Addis Investment Bank Launches in Ethiopia
Ethiopia’s first independent investment bank, First Addis Investment Bank (FAB), officially launched at the Sheraton Addis. CEO Michael Addisu said FAB will expand access to long-term finance through a blended finance model. ESX CEO Dr. Tilahun Kassahun attended the event, marking a milestone for Ethiopia’s capital market development.
Oromia Insurance Partners with Wegagen Capital for ECMA Advisory
Oromia Insurance S.C. signed an agreement with Wegagen Capital Investment Bank for advisory services in its registration with the Ethiopian Capital Market Authority (ECMA). The partnership ensures compliance with Proclamation No.1248/2021 and Directive No.1030/2024, advancing Oromia Insurance’s entry into Ethiopia’s emerging capital market.
Ethiopian Insurance Corporation Exceeds Quarterly Targets
EIC collected over 11.3 billion birr in premiums in Q1 — 108.5% of its target and 58% higher year-on-year. Investment income also doubled to 316 million birr. The insurer credited customer trust and operational efficiency for the strong performance.
Fintech & Digital Economy
M-PESA Ethiopia Goes Interoperable with EthSwitch
M-PESA Ethiopia has integrated with EthSwitch, enabling interoperable money transfers and payments with 15 banks and mobile wallets. Users can now send funds between M-PESA and bank accounts or pay using EthQR codes — marking a milestone for financial inclusion and digital connectivity.
Ethiopian Airlines Launches Local Debit Card Payments via Chapa
Ethiopian Airlines partnered with Chapa Financial Technologies to allow customers to pay using local ATM cards, expanding beyond digital wallet payments. The move enhances speed, security, and convenience, supporting the airline’s innovation drive as it continues its strong growth with $7.6 billion in revenue and 19.1 million passengers in FY 2024/25. Read more
EthSwitch Posts Record 158% Surge in Digital Transactions
EthSwitch processed 287.4 million transactions worth 741.1 billion birr in FY 2024/25 — a 158% rise in person-to-person (P2P) transfers. ATM and POS transactions climbed 26% and 24%, respectively. The company posted 2.2 billion birr in revenue and 1.42 billion birr in profit, up 34% year-on-year, highlighting Ethiopia’s digital payments boom.
Energy & Infrastructure
EEP Surpasses Q1 Revenue Target with 26.8 Billion Birr
Ethiopia Electric Power (EEP) earned 26.8 billion birr in Q1, exceeding its target and marking a 96% year-on-year increase. The utility sold 7.88 TWh, generating 10.1 billion birr domestically and $117.1 million from exports, with Kenya, Tanzania, and Djibouti as key buyers. Read more
EEP Introduces New Electricity Tariff for Data Mining Firms
EEP introduced a Time-of-Use tariff for data mining customers, effective December 1, 2025, with rates ranging from 4–6.5 US¢/kWh. The new structure promotes cost recovery, transparency, and efficient energy use, while an Availability-Based Tariff adjusts charges during power curtailments.
Economy & Policy
Ethiopia Moves to Convert Commercial Loans into Concessional Debt
Prime Minister Abiy Ahmed announced negotiations to convert commercial loans into concessional debt, lowering interest costs and easing repayment pressure. Ethiopia’s foreign debt has fallen below $23 billion, supported by G-20 creditors and Common Framework restructuring efforts.
Ethiopia Slashes Foreign Debt by 80%, Pursues “Growth Without Loans”
Ethiopia cut its foreign debt from $23 billion to $4.5 billion over six years, signaling a move toward self-reliant growth under the Homegrown Economic Reform Programme. The government mobilized 440 billion birr to reduce inflation to 11.7%, its lowest in years.
Ethiopia Allocates 440 Billion Birr to Tame Inflation
Through massive price stabilization efforts, Ethiopia cut inflation to 11.7%, allocating 160 billion birr for wage subsidies and 140 billion birr for fuel support. The agriculture sector grew 7.3%, with record coffee exports ($2.5B) and surging wheat and rice production.
Ethiopia Secures €90 Million EU Support for Economic Reform
The European Union and Ethiopia signed a €90 million (≈$96M) financing agreement to back economic reforms and post-conflict recovery. The deal, part of the 2025 Annual Action Plan, aligns with the Homegrown Economic Reform Agenda and EU’s Global Gateway strategy.
Stay tuned for next week’s insights, where we unpack more sectoral trends and policy moves shaping Ethiopia’s future.
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