A newly constructed pedestrian crossing awaits its opening on Adwa Street in bustling Piassa, adjacent to Ras Mekonnen Bridge. The modern addition, part of the city’s corridor development projects, spans the Banteyiketu River, which originates from Mount Entoto and winds its way through the heart of Addis Abeba, passing Ambassador Theatre and Peacock Park before merging with the Kebena River to form the Bulbula River.
The bustling Merkato houses street vendors on every parcel of land available. Around Tana Market, diverse materials are being sold, from coils of thick cables to various lifting and rigging equipment, including chains and turnbuckles. The area experienced an uneasy period last week owing to a tax enforcement initiative clamping down on under-invoicing by merchants. The aim was to gather increased revenue for the government and formalize business operations.
A group of people gather around a water distribution point in rural Arba Minch. The long row of yellow jerry cans await their turn in the lush and green surrounding area. Such scenes are a routine part of daily life in communities where access to water is managed through a communal distribution system, displaying the challenges and communal efforts involved in accessing clean water in rural areas.
Safaricom Ethiopia stated that it has become the first private foreign company to host a visit by a standing committee from the House of People’s Representatives, with the Democracy Affairs Standing Committee touring the company’s operations last week. Wim Vanhelleputte, CEO, presented the company’s half-year results, showcasing growth in mobile and M-PESA services. Notable achievements include expanding 4G coverage to 46pc of the population, acquiring over 6.1 million active subscribers, and seeing a surge in data usage to an average of 6.6 GB per user. Ewinetu Alene, committee chairman, emphasized the committee’s oversight role and noted the occasion as a new era of private sector engagement with government stakeholders.
Goh Mortgage Bank reported gross profits of 83.4 million Br, a twelve-fold increase from last year’s 6.4 million Br. At its general assembly last week, the bank announced total deposits of 1.02 billion birr, a 12pc increase from 30,530 deposit accounts, which grew by almost 40pc. Outstanding loans reached 1.55 billion Br, with 60pc directed to the construction sector and 19pc towards export-import activities. The bank mobilized 2.3 million dollars in foreign exchange during the year.
Girum Tsehay, president, emphasized a future focus on resource mobilization by enhancing the customer experience while announcing plans to establish interest-free products. Belachew Hurrissa, chairman of the board, pointed to challenges including inflation, currency shortages, and credit caps but noted the bank’s strong performance despite these issues. The bank has reached a paid-up capital of 1.14 billion Br, growing by 6.9pc.
Shints ETP Garment PLC, a South Korean enterprise operating inside Bole Lemi Industrial Park, inaugurated a 200 million Br recreational facility and daycare center. This state-of-the-art facility includes a tennis court, basketball court, soccer field, gym, and daycare center, with hopes of enhancing employee satisfaction and productivity. The company currently provides dormitory services for 5,500 workers and primary education for their families and plans to expand its dormitory capacity to 11,000 workers and introduce secondary education next year.
Shints plans to expand its manufacturing capabilities by developing an eight-hectare site within the Park, aiming to quadruple its current workforce of 8,000 employees. Established in 2014, the company specializes in manufacturing technical apparel, including waterproof and down-filled clothing, motorcycle gear, and tents.
The third-generation Abay Bank has solidified its position with marked growth in paid-up capital of 6.01 billon Br, showing a 27pc surge from the previous year. It registered revenues of 8.4 billion Br, marking a 19pc increase while its assets soared by 21pc to reach 66.4 billion Br. However, the bank’s net profit showed a nominal decline to 1.5 billion Br, shrinking by 3pc, while earnings per share declined to 280 Br. With over 3.5 million customers, deposits have surged by a whooping 26pc to 52.6 billion Br.
Despite the bank being tested by liquidity hurdles due to the 14pc credit cap put on by the Central Bank, total loan portfolio stood at 41.7 billion Br. The bank incurred a total expense of 6.4billion birr, making a 30pc increase from the previous year.
Amlaku Asres (PhD), board chairman, pointed to the domestic and international challenges affecting banking activities while the emergence of new technologies has created opportunity for the bank to test new waters. Yehuala Gesese, presidant of the Bank, noted that the bank has formed new strategies where rebranding the bank has played a crucial part. He added that that expanding digital services through internet and mobile banking services has played a role in bank’s growth.
Ethio Life and General Insurance held its annual meeting at the Inter Luxury Hotel last week with gross written premiums growing by 39pc to reach 734 million Br. The majority of its premium income came from the general business, accounting for 71pc. The company also experienced a rise in net claims which rose by 42pc to 293.5 million Br. Ethio Life declared earning per share of 33.71pc.
Hailu Alemu, board chairperson, pointed to the automation of core insurance operations as the company’s key achievements. With a market share of 2.6pc, the insurer plans to exceed one billion Birr in premium income this year. With 282 employees, the company’s expenses increased by 48pc from last year, reaching 169.8 million birr due to inflation and salary increases. Net profit rose 90.5pc to reach 93.96 million Br.
Editor’s Note: This article was updated from its original form on November 26, 2024.
On its 29th annual general assembly, the 947-branch Awash Bank posted 8.7 billion Br in net profits. Held at Skylight Hotel, the Bank’s board of directors announced significant financial growth over the past year with deposits surging 24pc to 232.4 billion Br. With non-performing loans below the regulator’s 5pc requirement, sitting at 1.25pc, credit rose to 183.5 billion Br, up from 161.9 billion Br, with 24pc allocated to domestic trade and services, followed by exports at 16.6pc and building and construction at 16.4pc.
As the first private bank to surpass the one billion dollar mark in forex receipts last year, Awash generated 1.52 billion in dollars. Total assets increased by 25.9pc to 282.4 billion Br with paid-up capital showing a 39pc increase to reach 20.3 billion Br.
Tsehay Shiferaw, CEO, pointed to the challenges faced over the past year due to various factors. A significant issue was the nationwide drop in export earnings during the fiscal year as well as credit growth limitations and ensuing liquidity crunch owing to the Central Bank’s efforts to control inflation. He also noted concerns with heightened cybersecurity risks, as the country has seen an increase in cyberattack attempts, posing a serious threat to operations.
Tsehay stated that the bank was able to withstand the challenges by crafting different strategies and has also become a shareholder in the Ethiopian Securities Exchange to the tune of 70 million Br in February 2024.
Though earnings per share decreased from 577 Br to 487 Br, Tsehay said: “I believe it is still attractive.” He also noted that personnel expenses of the bank have been emerging as the largest component of total expenses, increasing 47pc with double digit inflation to blame.
Malaria, a persistent threat in rural areas, is resurging with alarming intensity in 2024, exposing deep-rooted systemic issues aggravated by climate change and inadequate health infrastructure. In the past three months alone, the Ministry of Health has reported nearly 2.9 million cases, a staggering 200pc increase compared to the same period in previous years. The public health crisis places three-quarters of the population at risk. Hospitals across affected regions are struggling to keep pace. Jinka General Hospital alone reported 2,655 confirmed cases in three months. Medical doctors blame the inconsistent drug supplies and scarce blood donations as critical hurdles such as logistical and financial constraints that leave patients without proper treatment and overwhelm healthcare facilities already stretched thin.
According to experts, climate change is amplifying the crisis. Altered weather patterns have led to increased rainfall and warmer temperatures, expanding mosquito breeding grounds and extending the lifespan of the insects. State Minister for Health Dereje Duguma says warmer temperatures allow mosquitoes to transmit the parasite over a more extended period. This weather shift complicates efforts to control malaria, particularly where preventative measures have waned and infrastructure is lacking. Social factors compound the problem. Young men, often travelling long distances for work at night when mosquito activity is highest, are among the most affected. Health experts cite the inadequacy of housing in rural areas. Apathy toward preventative measures like bed nets and insecticides has allowed mosquitoes to thrive unchecked, heightening the spread.
Despite efforts to curb the resurgence, including appeals for the global malaria vaccine and increased distribution of insecticide-treated nets, difficulties in combating malaria persist. Conflicts, such as in the Amhara Regional State, where over 80,000 new cases were reported in one week, disrupt healthcare services and supply chains. However, experts who urge collective actions like draining stagnant water and consistent use of bed nets deem community involvement crucial to battle against a disease that continues to claim lives, particularly among the most vulnerable.
A bidder stunned land auction participants by offering a record-breaking offer for a plot in the Nifas Silk Lafto District. Her bid, about 744pc higher than the next highest offer, could come with an upfront payment of 63.4 million Br, uncovering the fierce competition and speculative fervour gripping the city’s prime real estate market.
Seblewongel Webi set a record by offering 406,667 Br a square metre for a 156sqm plot in Nifas Silk Lafto. Another notable bid in the same district was 306,600 Br a square metre for a 1,475sqm plot.
Last week, a metal box containing bid documents became the epicentre of anticipation and anxiety in a lively hall at the Bole District Land Bureau. Local authorities oversaw the latest round of land auctions, where 743 bidders vied fiercely for 66 plots across four districts of Nifas Silk Lafto, Yeka, Lideta, and Gulele. The event marked the fourth auction since the Addis Abeba City Administration resumed the process after a five-year hiatus.
Nifas Silk Lafto emerged as the hotspot of the auction, offering 39 plots and attracting 634 bidders. The plots varied in size from 98sqm to 1,475sqm, drawing intense interest due to the District’s high land value and extensive areas. Locations included Jemo, areas behind Mestawet Fabrica, and Qera on the road to Gofa. The bids were so fierce that some bidders offered prices that outstripped others by hundreds of percentage points.
The auction attracted diverse bidders, including individuals and corporations. Pave Logistics Trading Plc secured a mixed-use plot in Nifas Silk Lafto for 77,777 Br for a square metre. The company’s executives disclosed plans to establish a logistics hub, offices, and residential space. Lia Sisay Gudeta emerged as the highest bidder for a different plot in Nifas Silk Lafto, offering 132,000 Br a square metre for a 93sqm space with a 40pc down payment.
Another bidder, Abraham Ayalkbet, secured a 130sqm plot behind Mestawet Fabrica with an upfront payment of 47,300 Br a square meter.
“I’m happy to have won the bid,” he told Fortune. “The bid for the plot was intense.”
This was the businessman’s first success, echoing the tough land market for individual bidders where corporate bidders prevail. Market observers see in these aggressive bids a speculative fervour surrounding prime real estate in Addis Abeba.
Yeka District, offering 23 plots near landmarks like the British Embassy and Minarol Building, attracted 81 bidders. Lideta and Gulele districts, however, saw particularly less interest, with 22 and six bidders, respectively. In Lideta, sites around Lideta Church and near the new Addis Media Network building were up for auction. Despite the lower turnout, substantial bids were made. Fozia Ahmed, an individual bidder, secured a 1,132sqm plot for 132,000 Br a square meter with a 40pc upfront payment.
The auction process was not without its limitations. Five plots in Lideta District were withdrawn due to unresolved transfer issues, and close to 77 bid documents were disqualified for failing to meet requirements.
“We’ll likely auction them in the next round,” said Chale Abraham, head of land transfers at the Addis Abeba Land Development & Administration Bureau.
Chale remained upbeat about the process, describing the auctions last week as successful despite a two-week delay caused by an insufficient number of bidders.
Of the 66 plots offered, 17 failed to attract sufficient bidders, leaving 49 plots that drew 743 bidders. The bid was initially floated between October 18 and November 1, 2024, but was extended by two weeks to encourage more participation. The fourth-round auction process is set to continue in the coming days, with remaining plots in other districts, including Arada’s 17, Lemi Kura’s 76, Akaki’s 60, Kolfe Keranio’s 26, and Bole’s 12 plots scheduled to be opened.
The city administration introduced a new payment structure for this auction, requiring bidders to deposit at least 40pc of their bids immediately and the remaining balance over five years. Auction officials believe this shift from previous practices enhances competition and ensures the integrity of the land auction process.
“Several rules have been revised to simplify the land auction process,” said Chale.
According to research on urban land monetisation, there are gaps between city-determined benchmark land prices and the actual lease prices offered by bidders. The disparity is particularly evident in the central districts and transitional residential zones. Higher land prices closer to the city centre are attracting commercial developers, potentially accelerating the displacement of lower-income residents to the city’s outskirts, where urban amenities are often limited.
With widespread dislocations and resettlement, legal experts are concerned about these trends.
Yared Seyoum, a lawyer familiar with land laws and disputes, fears that city centres are becoming accessible only to the most affluent, leaving out the majority of the population. He also raised alarms about overvalued land bids leading to speculative prices, which could create economic clutter and negatively affect affordability and livability.
“Auctioned land transfers could be a far better option for development due to their transparency and accountability,” said Yared.
However, he called for revising land auction rules to include maximum bidding prices to avoid overvaluation and its far-reaching consequences.
“Individual property rights keep being negatively affected,” he said, pointing to gaps in law enforcement that allow misuse of power despite successive land-related legal regimes.
He criticised the revised expropriation law enforcement, which he believes has had little benefit for expropriated settlers who find themselves unfairly evicted and stripped of their property rights. According to Yared, land ownership remains in the hands of the state rather than individuals, perpetuating open-ended terms on rights, leading to uncertainty and vulnerability for property holders. He stressed the need to balance development plans with property rights. He called for capable administrators to enforce existing laws for the broader benefit of urban development with citizens in mind.
Local officials have a different perspective. The land auctions are part of a larger land development project to improve the city’s economic capacity, investment climate, and competitiveness.
“The city’s focus is on enhancing urban development and improving the lives of residents,” said Habtamu Tesfaye, bid committee head at the Bureau, seeing ongoing demolitions to facilitate redevelopment efforts as measures with mixed reactions from affected communities.
The establishment of a monetary policy committee within the National Bank of Ethiopia (NBE) was added to the proposed re-establishment of the regulator. The committee will consist of seven members, including the governor and vice governor, tasked with continuously assessing the economy and advising on monetary decisions, including interest rates.
Ethiopia’s financial sector is undergoing a pivotal transformation, driven by a series of sweeping legislative reforms to modernise the country’s banking infrastructure and bring it in line with international standards. Central to these reforms are the proposed re-establishment of the National Bank of Ethiopia (central bank) and the revision of the banking business law, both of which were recently tabled before Parliament’s Standing Committee for Planning, Budget & Finance. These changes are set to enhance macroeconomic stability and position Ethiopia’s financial system for long-term growth.
Mamo Mihretu, the 10th governor, explained that the reforms introduced over the past year mark a decisive shift in addressing longstanding macroeconomic imbalances. The re-establishment under a new proclamation is designed to grant the central bank greater autonomy and fortify its ability to manage the country’s monetary policy and foreign exchange regulation.
Mamo said the current legal framework which has remained unchanged for over 16 years, is no longer in sync with the evolving financial, economic, and political landscape.
“It’ll restore institutional, organisational and financial credibility while improving transparency and accountability,” he said.
The new proclamation seeks to curtail the executive branch’s authority over the Central Bank, empowering it to take a leading role in the country’s monetary policy. Among the key provisions is a cap on the government’s ability to directly finance itself through the central bank, limiting such assistance to no more than 15pc of the average annual government revenue of the last three years, and exclusively through temporary overdrafts.
Despite widespread support for the bill’s intent, some MPs raised concerns about the expanded role, particularly its investment functions, which they felt were not sufficiently clear. Mamo defended the Central Bank’s investment in institutions like EthSwitch and the National Currency Printing House, asserting that these align with the central bank’s mandate to safeguard financial stability.
Another noteworthy feature of the draft is the establishment of a financial stability committee, tasked with overseeing bailouts in the event of a financial crisis. Critics have questioned whether such a responsibility should be shared with other government ministries. Mamo cited the example of the U.S. financial system’s recovery from the 2008 crisis, which the Federal Reserve and the Treasury Department primarily drove.
“The central bank and Finance Ministry are key to the success of such interventions,” he said.
The push for reform is not new. For nearly 25 years, attempts to shift the financial system toward market-based principles have stumbled, due to a lack of sustained institutional follow-through and shifting government priorities.
Experts say the previous framework also struggled with issues of autonomy, as the central bank was influenced by political considerations. Under the new legal structure, regulators expect that while the central bank will remain accountable to the Prime Minister, it will have full statutory independence over monetary policy and foreign exchange matters.
Seven months ago, the central bank unveiled a three-year strategic plan to restore fiscal and monetary stability. The plan, coupled with the proposed changes to the central bank’s legal framework, signals a new direction which has been operating in its current form for 62 years.
“We are transitioning to an interest-based policy,” Mamo told Fortune. “This is a key step in stabilising our economy.”
Another point of contention during the discussions was the procurement process, which some MPs argued overlaps with the recently ratified procurement law. However, central bank executives, including Mesfin Ayele, the bank’s legal director, clarified that the Ministry of Finance had approved their approach in a letter, validating the procurement strategy.
The committee also examined a much-anticipated amendment to the law governing the banking business, which has not been updated since 2008. One of the major elements of the new draft is the opening of the banking sector to foreign investors, a move that has been long sought by the central bank to diversify the country’s financial sector and encourage greater foreign capital flow.
The draft law sets out regulations for foreign bank entry through subsidiaries, branches, or representative offices, with a cap of 30pc foreign ownership in any bank, though strategic investors can hold up to 40pc. A total of 49pc foreign ownership is allowed in any domestic bank, but full acquisitions will only be approved under exceptional circumstances, such as when a foreign bank can offer significant strategic benefits or assist in stabilizing a distressed bank.
Governor Mamo articulated a cautious approach to foreign participation, saying the central bank has placed these restrictions to balance the potential influx of capital with the need to protect the interests of domestic banks.
“We’ve carefully crafted these policies to ensure the financial sector’s long-term stability,” he said.
While some experts agree on the need for greater foreign involvement, domestic banks have expressed concern about the potential impact on competition. Dereje Zebene, president of Zemen Bank, warned that the 30pc foreign ownership limit could restrict foreign investment.
“Foreign banks will drive competition, improve service quality, and enhance operational efficiency,” he said. “However, we must also ensure that the foreign entry is well-regulated.”
Asfaw Alemu, president of Dashen Bank, echoed these concerns, noting that the mode of foreign entry whether through subsidiaries or branches could impact domestic banks. He noted that banks must carefully evaluate their future direction in light of these changes.
“It’s a crucial decision that needs careful planning,” he said.
In response, Frezer Ayalew, head of banking supervision at the central bank, assured that they are preparing directives to ensure the viability of domestic banks, including facilitating mergers and acquisitions where necessary.
“We’ll assess the operational and financial health of banks, and if a bank is at risk, we might force a merger,” he said.
Experts observe the proposed reforms, if successfully implemented, could reshape Ethiopia’s financial space, positioning it for greater economic resilience and inclusion. However, they say their success will depend on careful execution, thoughtful regulation, and a long-term commitment to financial stability.
Eshetu Fantaye, a veteran financial consultant, echoed similar concerns, particularly regarding the potential risks of foreign bank entry, such as capital flight and speculative activity. He urged the government to select foreign investors who align with Ethiopia’s economic vision, focusing on sectors like agriculture, manufacturing, and tourism.
“Foreign banks must support the sectors that matter most to our economy,” Eshetu said.
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