As Ethiopia Goes Electric, Ethio telecom Powers the Transition

Posted on April 20, 2026April 20, 2026 by Web Master

In the global race toward decarbonisation, the biggest shifts do not always come from oil majors or power utilities. Sometimes they begin with institutions that combine digital networks with physical infrastructure.

In East Africa, such a shift is taking shape, with Ethio telecom at its centre. The company is no longer positioning itself only as a provider of connectivity. It is becoming a utility layer designed to support Ethiopia’s digital and green future.

The recent inauguration of a fourth Super-Fast Smart EV Charging Station in Adama, the first expansion beyond Addis Abeba, marks a step. It heralded that Ethiopia’s shift toward electric mobility is no longer confined to a trial phase, now advancing to a coordinated national rollout.

To some outside observers, a telecommunications company moving into energy and transport may appear unusual. However, within the logic of its “Next Horizon: Digital & Beyond 2028” strategy, the move is deliberate and practical.

Ethio telecom is drawing on assets it already commands, including towers, fibre networks, and digital payment rails, to address the “chicken-and-egg” problem in the lack of reliable charging infrastructure that has slowed EV adoption in many markets.

This goes beyond conventional diversification, representing a structural repositioning of the company’s role in the economy. By building a presence in transport and energy, Ethio telecom is helping to anchor a new mobility system on domestically generated and digitally managed electricity.

The Adama Station is more than a hardware site. It is an AI-powered node within a growing smart grid. Equipped with 180kW super-fast chargers, the station uses artificial intelligence (AI) to diagnose battery health and tailor charging sessions to the needs of different vehicles, including European models that had previously faced compatibility challenges in the region.

Since operations began in February 2025, Ethio telecom’s EV charging infrastructure has shown notable scale. With the Adama launch, the network’s total capacity has reached 60 vehicles simultaneously. It has supported more than 284,000 charging sessions and delivered over 7.1 million kWh of energy. This has prevented more than 10 million kilograms of CO2 emissions, an environmental gain that compares to planting about 50,000 trees and a direct contribution to Ethiopia’s Green Legacy goals.

A central piece of this model is telebirr, Ethio telecom’s finance platform. Its integration into the charging network helps turn energy use into a simple digital transaction, addressing the monetisation and user experience issues that often undermine public infrastructure projects.

Through the telebirr SuperApp, drivers can locate stations, monitor charging progress in real time through 5G and 4G cloud servers, use “Tap-to-Charge” NFC authentication, and make instant payments. What might otherwise be a routine electricity purchase becomes a self-service digital product built for speed and convenience.

Perhaps the most strategic step is for Ethio telecom not to approach the market as a monopolist. It is trying to act as an ecosystem orchestrator. Its National EV Charging Platform allows third-party operators to connect their charging stations to a unified digital network.

By offering software, payment gateways, and monitoring tools to other players, the company is lowering entry barriers for the wider private sector. That platform approach also promotes interoperability, which is likely to be critical if Ethiopia’s Green Legacy initiative is to support a durable shift toward electric mobility.

As geopolitical tensions expose the fragility of global fuel supply chains, Ethiopia’s emphasis on domestic renewable energy, largely hydroelectric, combined with a digitally managed distribution network, offers a model of resilience for emerging markets.

Ethio telecom’s move into Adama sends a broader signal that Ethiopia is not merely preparing for a greener future in theory. It is building the physical and digital systems needed to make that future work in practice.

By operating at the intersection of data, finance, and energy, Ethio telecom is recasting itself from a telecommunications provider into one of the companies helping shape the country’s green transition.

የካፒታል ገበያ ባለሥልጣን የዳሽን ባንክን አክሲዮኖች መዘገበ

Posted on December 25, 2025December 29, 2025 by Web Master

ዳሸን ባንክ አዲስ እየተገነባ ባለው የካፒታል ገበያ ሥርዓት ውስጥ ታሪካዊ ስፍራ ይዟል። የኢትዮጵያ ካፒታል ገበያ ባለሥልጣን ታህሳስ 15 ቀን 2018 ዓ.ም. ባወጣው መግለጫ መሠረት፣ ከ14.3 ሚሊዮን በላይ ነባር መደበኛ አክሲዮኖች እና 2.2 ሚሊዮን አዳዲስ አክሲዮኖች እንዲመዘገቡ ፈቅዷል። ይህ ምዝገባ ባንኩ ወደፊት ለሚያካሂደው የነባር አክሲዮኖች ሽያጭ (Rights Issue) እና በኢትዮጵያ የሰነድ ሙዓለ ንዋዮች (ESX) ላይ ለሚኖረው ይፋዊ ተሳትፎ እንደ ቅድመ ሁኔታ የሚወሰድ ነው።

ከ19 ቢሊዮን ብር በላይ የተከፈለ ካፒታል ያለው ዳሽን ባንክ፣ ከአዋሽ እና ከአቢሲኒያ ባንኮች በመቀጠል ካሉት አምስት ግዙፍ የግል ባንኮች መካከል አንዱ ነው። በሃና ተኸልቁ የሚመራው የካፒታል ገበያ ባለሥልጣን እንደገለጸው፣ ይህ የምዝገባ ሂደት በራሱ ገና ይፋዊ የሕዝብ አክሲዮን ሽያጭ ባይሆንም፣ ባንኩ ወደፊት ለሚያደርገው እንቅስቃሴ የአደባባይ ማሳወቂያ ሆኖ ያገለግላል። በመሆኑም ማንኛውም ባለሀብት ውሳኔ ከመሰጠቱ በፊት የባንኩን ሙሉ የአዋጪነት መግለጫ (Prospectus) እንዲመረምርና ፈቃድ ካላቸው አማካሪዎች ዘንድ እንዲመክር ማሳሰቢያ ተሰጥቷል።

ይህ የምዝገባ ሂደት ተግባራዊ የሆነው ለማንኛውም ለሕዝብ የሚቀርብ የዋስትና ሰነድ በባለሥልጣኑ ዘንድ መመዝገብ አለበት የሚለውን አዲስ መመሪያ ተከትሎ ነው። በአስፋው ዓለሙ የሚመራው ዳሽን ባንክ፣ የባለሥልጣኑን ይሁንታ ባገኘ ማግስት (ታህሳስ 16 ቀን 2018 ዓ.ም.) የ6.4 ቢሊዮን ብር ዋጋ ያለው የአክሲዮን ሽያጭ ይፋ አድርጓል። ሽያጩ በዋናነት ለነባር ባለአክሲዮኖች የሚቀርብ ሲሆን፣ ያልተገዙ አክሲዮኖች ካሉ ግን ወደፊት ለሕዝብ ክፍት እንደሚሆኑ ታውቋል። የአክሲዮን ግዢው እስከ የካቲት 4 ቀን 2018 ዓ.ም. ድረስ ለደንበኞች ክፍት ሆኖ እንደሚቆይ ይጠበቃል።

አሜሪካና ኢትዮጵያ በጤናው ዘርፍ የ1.5 ቢሊዮን ዶላር ስምምነት ተፈራረሙ

Posted on December 23, 2025 by Web Master

የዩናይትድ ስቴትስ መንግሥት በሚቀጥሉት አምስት ዓመታት ውስጥ ለኢትዮጵያ የጤና ዘርፍ ማጠናከሪያ የሚውል የ1.5 ቢሊዮን ዶላር ድጋፍ ለማድረግ ቃል መግባቱን ተከትሎ፣ ለዓመታት ተቀዝቅዞ የነበረው የሁለቱ አገራት ዲፕሎማሲያዊ ግንኙነት ዳግም አንሰራሮቷል። ዛሬ ታኅሣሥ 14 ቀን 2018 ዓ.ም በገንዘብ ሚኒስቴር መስሪያ ቤት ውስጥ የተፈረመው ይህ ስምምነት፣ በዋሽንግተን አዲሱ የትራምፕ አስተዳደር ሥልጣን ከያዘ ወዲህ በሁለቱ አገራት መካከል የተደረገ የመጀመሪያው ግዙፍ የሁለትዮሽ ስምምነት ነው።

በመግባቢያ ሰነዱ መሠረት የአሜሪካ መንግሥት እስከ 1.016 ቢሊዮን ዶላር የሚደርስ የገንዘብ ድጋፍ የሚያበረክት ሲሆን፣ የፌዴራል መንግሥት በበኩሉ ለጤናው ዘርፍ የ450 ሚሊዮን ዶላር በመመደብ ለፕሮግራሙ ስኬት ያለውን ቁርጠኝነት አሳይቷል። በፊርማ ሥነ-ሥርዓቱ ላይ ንግግር ያደረጉት የገንዘብ ሚኒስትሩ አቶ አህመድ ሽዴ፣ መንግሥት ከሀገር ውስጥ ሀብቱ የመደበው ድርሻ በጤናው ዘርፍ ላይ ብሔራዊ መዋዕለ ንዋይ ለማሳደግ ያለውን ጽኑ ፍላጎት የሚያንፀባርቅ መሆኑን ገልጸዋል። ሚኒስትሩ የጤና ደኅንነት ድንበር እንደማያውቅና ለሀገራዊ፣ ቀጣናዊ ብሎም ለዓለም አቀፋዊ መረጋጋት ወሳኝ መሠረት መሆኑን ተናግረዋል።

ከጤና ጥበቃ ሚኒስትሯ መቅደስ ዳባ ጋር የተፈረመው ይህ ስምምነት እንደ ኤች.አይ.ቪ/ኤድስ፣ ቲቢ፣ ወባ እና የፖሊዮ በሽታዎችን ከመከላከል ባለፈ፣ የእናቶችና የሕፃናት ጤና አጠባበቅ እንዲሁም ድንገተኛ የወረርሽኝ መከላከል ላይ ትኩረት ያደረገ ሰፊ አጀንዳ ይዟል። በኢትዮጵያ የአሜሪካ አምባሳደር ኤርቪን ማሲንጋ በበኩላቸው፣ ስምምነቱ በሁለቱ አገራት መካከል ያለውን ዘላቂ የጋራ ወጪ እና ተጠያቂነት የሚያረጋግጥ መሆኑን ጠቅሰው፣ አሜሪካ ባለፉት ሁለት አሥርት ዓመታት ብቻ በኢትዮጵያ የጤና ዘርፍ ላይ ከአምስት ቢሊዮን ዶላር በላይ መዋዕለ ንዋይ ማፍሰሷን አስታውሰዋል።

አብዛኛው የአሜሪካ የጤና ድጋፍ በፕሬዚዳንቱ የኤድስ ድንገተኛ መከላከል ዕቅድ (PEPFAR) በኩል የሚመጣ ሲሆን፣ ይህም በኢትዮጵያ ለላቦራቶሪዎች ግንባታ፣ ለዲጂታል መረጃ አያያዝ እና ለበሽታ ክትትል ሥርዓቶች መጠናከር ከፍተኛ አስተዋፅኦ አበርክቷል። በተለይም በኮቪድ-19 ወረርሽኝ ወቅት እነዚህ መሠረተ ልማቶች ለአገሪቱ የጤና ሥርዓት እንደ ዋስትና ማገልገላቸው ይታወሳል። በተጨማሪም በወባ መከላከያ መርሃ-ግብር አማካኝነት የሚቀርቡት አጎበሮች፣ የመመርመሪያ መሣሪያዎችና መድኃኒቶች በድርቅና በግጭት ሳቢያ ለተፈናቀሉ ዜጎች ሕይወት አድን ሚና ሲጫወቱ ቆይተዋል።

ይሁን እንጂ የሁለቱ አገራት ግንኙነት ባለፉት ጥቂት ዓመታት በሰሜኑ የእርስ በርስ ጦርነት፣ በድርቅና በዕርዳታ ስርቆት ውዝግቦች ሳቢያ በርካታ ፈተናዎችን አስተናግዷል። በተለይም በ2023 የተከሰተው የምግብ ዕርዳታ መቋረጥና በ2025 የተደረገው የአሜሪካ የልማት ድርጅት (USAID) ድርጅታዊ ለውጥ በድጋፍ አሰጣጡ ላይ መተማመንን አሳጥቶ እንደነበር ይታወሳል።

የዛሬው ስምምነት እነዚህን ተግዳሮቶች ተሻግሮ የሁለቱን አገራት የ120 ዓመታት ታሪካዊ ግንኙነት የሚያድስ መሆኑን አምባሳደር ማሲንጋ ገልጸዋል። ምንም እንኳን ስምምነቱ እንደ ማዕቀፍ ቢቀመጥም፣ በቀጣይ በሚወጡ ዝርዝር የሥራ ዕቅዶች አማካኝነት ወደ ተግባር እንደሚለወጥ ይጠበቃል።

Mothering the Market with Bonds, Boldness

Posted on November 25, 2025 by Web Master

Enat Bank S.C., long a byword for gender-responsive banking, has unveiled its next breakthrough, launching the country’s first Gender Bond. The deal, now in preparation under the guidance of transaction adviser, i-Capital Institute Plc, will channel long-term funding to women-owned and women-led enterprises and to social infrastructure that supports women in housing, healthcare, childcare and education.

By affixing a capital-markets label to its longstanding mission, Enat Bank is extending its inclusive ethos beyond its branch network and into the portfolios of institutional investors seeking both returns and measurable social impact. It embodies its founders’ vision.

Backed today by a shareholder base that is 64 pc women, more than half of its board of directors and senior management women, Enat Bank has its debut in Gender Bond at an event held at the Sheraton Hotel on Taitu St., on November 13, 2025. The proposed bond is being structured to meet the Social Bond Principles of the International Capital Market Association, the yardstick global investors use to judge credibility and transparency in socially themed debt.

According to Gemechu Waktola (PhD), the CEO of i-Capital, the alignment is deliberate.

“Just four or five years ago, the capital market was just an idea,” he recalled. “It’s unthinkable to realise it.”

His firm has worked with Enat Bank from the outset, steadily building human capital, and is now weaving the reporting, monitoring and governance requirements investors expect from an ICMA-aligned bond into the nascent capital market framework. Enat Bank’s step into the arena will put Ethiopia on the gender-inclusive map and prove to regulators, financiers and entrepreneurs that the domestic market can handle sophisticated thematic instruments.

The Gender Bond dovetails neatly with national policy, the second edition of the National Financial Inclusion Strategy, which calls for narrowing the gender gap in access to finance. The National Bank of Ethiopia (NBE) has already granted Enat Bank its only ” Transformational” score in the regulator’s Gender Financial Inclusion Index, recognising the Bank’s track record of tailoring products for women borrowers and savers.

The bond also resonates with the global Sustainable Development Goals (SDGs). By translating those policy ambitions into a tradable security, Enat Bank gives fund managers, especially those with environmental, social and governance (ESG) mandates, a mechanism to express conviction about gender equality while earning a coupon.

What distinguishes a Gender Bond from the conventional funding tools familiar to depositors is the ring-fenced use of proceeds. Demand deposits let customers keep cash liquid (withdrawable on sight) but do little to lengthen the financial system’s funding tenor. Time deposits lock money away and pay a premium rate, yet still only recycle household savings. Thematic bonds, such as the ones Enat plans, raise wholesale funds earmarked expressly for projects fighting gender inequality.

Investors buy a security that promises financial return and a quantifiable social dividend. In practice, more capital flows to women-run farms, cooperatives and micro-, small- and medium-sized businesses. More financing for clinics and daycare centres, and more resources for training programs that help women climb into management, could be realised.

Enat Bank’s chairwoman, Aster Solomon, sees the issue from the ground up. Enat Bank recently hit the five-billion-Birr minimum paid-up capital threshold set by regulators, a milestone she called “a huge step” Since its founding in March 2013, the Bank has offered women depositors slightly higher rates and extended uncollateralised loans to women entrepreneurs. This is funded in part by a collateral-risk pool built from three to five percent of shareholders’ profits and by agreements with volunteer depositors who pledge balances as backstops.

The bond formalises what the Bank has practised for years in mothering customers toward economic independence.

Complementing finance with know-how, Enat Bank runs training in financial management, a service that helped earn its transformational rating.

“We’re determined to include women in rural areas financially, in sectors like agriculture,” said Aster.

At today’s pace, experts calculate it will take the world 131 years to close overall gender gaps and 169 years to close economic gaps. By 2030, more than 340 million women and girls are projected to live in extreme poverty, including 220.9 million in sub-Saharan Africa. The funding gap for women-owned MSMEs alone runs between 1.4 trillion and 1.7 trillion dollars by some estimates, while African women entrepreneurs face a 42 billion dollars shortfall.

However, women borrowers default less frequently. Banks in sub-Saharan Africa reported 53pc lower non-performing loan (NPL) ratios for women borrowers in 2023. For investors, the numbers point to a Gender Bond that can be as prudent as it is purposeful.

Other African markets have begun to test the premise. Since 2021, Morocco, Rwanda, South Africa and Tanzania have all issued gender-linked notes. Morocco’s Banque Centrale Populaire paved the way. Tanzania’s NMB Bank followed with its Jasiri Gender Bond in 2022, mobilising millions for women-led ventures. South Africa’s Barloworld Limited placed an approximately 58 million dollar instrument, stoking workplace diversity. Rwanda has tapped its own market.

Each of these deals attracted development finance institutions and ESG-minded funds while teaching local intermediaries how to verify, allocate and report on gender outcomes. Ethiopia’s turn, when it comes, will place the country alongside that cohort.

Credibility, however, rests on rigour. The FSD Africa Toolkit counsels issuers that gender bonds should tie their promises to internationally recognised standards or risk being dismissed as pinkwashing. ICMA’s four-part framework (defining how proceeds may be used, projects are selected and evaluated, money is managed, and results are reported) offers one solution. Supplementary guidance from UN Women, the International Finance Corporation (IFC), and ICMA outlines best practices.

The Orange Bond Initiative, whose aim is to unlock 10 billion dollars for gender-lens investments by 2030 and reach 100 million women and girls, sets an ambition that helps rally investors. By following these playbooks, Enat Bank hopes to satisfy the diligence requirements of multilateral lenders and private asset managers alike.

For Gemechu of iCapital, the exercise is as much about ecosystem building as it is about a single transaction. Years ago, he had thought it “unthinkable to realise a functioning capital market in Ethiopia. Today, Parliament has passed the legal scaffolding and licensed market operators. He now sees Enat Bank’s bond as a “proof of concept” not only for future gender instruments but for social, green and sustainability-linked bonds too. Successful execution could embolden other banks and corporates to explore similar routes, broadening the menu of local-currency options for long-term finance.

Investors will likely pay close attention to the bond’s structure. However, questions include tenor, coupon, and credit enhancement.

Will development institutions provide guarantees and reporting frequency?

Global precedents show appetite exists. Social bonds worldwide raised more than 150 billion dollars in 2023, up sharply from a decade earlier. In frontier markets, multilateral backing often helps crowd in private capital. Should Enat Bank secure such support, its issue could clear price and rating hurdles more quickly.

For policymakers, the bond aligns with efforts to diversify funding sources. Domestic banks traditionally rely on deposits and central-bank facilities, while companies depend on retained earnings and banks. A functioning bond market can match long-term projects with institutional investors such as pension funds and insurers. Adding a gender lens further enlarges the pool, tapping ESG portfolios that have grown into a multi-trillion-dollar segment.

Aster believes the narrative advantage matters too. Enat Bank’s founding story resonates with stakeholders precisely because it is rooted in experience.

“For women entrepreneurs, Enat Bank has been the mother to all its customers,” she said.

The Gender Bond packages that story into a security that investors can buy. It also demands transparent allocation, rigorous impact reporting and accountability if targets are missed. Enat Bank, accustomed to tracking social metrics to satisfy regulators and donors, appears comfortable with that discipline.

Safaricom Ethiopia Names Ermias Eshetu Advisory Board Chair

Posted on November 25, 2025November 25, 2025 by Web Master

Safaricom Telecommunications Ethiopia P.L.C has named Ermias Eshetu, former CEO of Ethiopian Commodities Exchange(ECX), as the new Chair of its Advisory Board, with the appointment taking effect on 10 November. He joined the Board on 21 March 2025 as its first Ethiopian member.

Ermias replaces Peter Ndegwa, CEO of Safaricom PLC Ethiopia and Kenya, who has led both the Global Partnership for Ethiopia (GPE) Board and the Safaricom Ethiopia Advisory Board since March last year.

Company officials say the leadership shift reflects a deeper push towards localisation and a broader effort to cultivate Ethiopian executives within the organisation.

AWASH BANK BREAKS AWAY FROM PACK

Posted on November 23, 2025November 26, 2025 by Web Master

Awash Bank, under the stewardship of Board Chairman Gure Kumsa (Left) and its President Tsehay Shiferaw, delighted its shareholders at a meeting at Skylight Hotel on Saturday, November 22, 2025, with a breakout performance in the latest fiscal year, establishing itself as the undisputed pace-setter in the private banking industry. Gross profit vaulted by an astonishing 137pc to 25.7 billion Br on the back of 52.25 billion Br in total income. Despite a 44pc jump in expenses to 39 billion Br, the Bank managed a robust pre-tax profit margin shy of 50pc, nearly doubling the industry’s average profit growth rate of 32pc. A large portion of Awash’s earnings surge is attributed to its foreign exchange operations. The Bank mobilised over two billion dollars in foreign currency, deemed the highest among private banks, strengthening its non-interest income stream through trade finance and remittances. This translated into notable gains in fee-based income and enhanced the Bank’s earnings diversification during a volatile macroeconomic year.

Awash Bank’s balance sheet swelled by 57pc to reach 442.6 billion Br in total assets, while deposits soared by 47.2pc to 331 billion Br. This translated into a conservative loan-to-deposit ratio of 61pc, with outstanding loans growing by a slower 20pc to 219.08 billion Br, underperforming the industry’s 27pc average. However, the Bank’s cautious approach appears strategic, favouring liquidity and risk buffers during uncertain economic conditions. Paid-up capital, mobilised from over 11,523 shareholders, climbed to 27.9 billion Br, four times the private banking industry’s average. Its total equity reached around 50 billion Br, delivering an estimated return on equity (ROE) in the mid-30pc range, nearly double the industry average of 18pc, uncovering its capital efficiency and profitability.

With 989 branches and a depositor base swelling by 2.58 million to nearly 15 million, Awash Bank maintained the industry’s broadest retail footprint. On average, each branch handled deposits of 362 million Br, while the average deposit per customer last year was approximately 24,000 Br. Notably, mobile transactions led all digital channels, signalling growing customer adoption of digital banking. Although this appears consistent with industry trends, Awash Bank seemed to be converting scale into transaction volume more effectively than its peers.

Wegagen Elbows into the Big-League of Domestic Banking

Posted on November 23, 2025November 26, 2025 by Web Master

Wegagen Bank’s performance last year came at a time when the banking industry faced an unusual blend of volatility and promise. While the broader macroeconomic climate remained fogged by persistent double-digit inflation, an acute foreign exchange crunch, and an on-again, off-again process of monetary policy reform, a few private banks have delivered impressive performances. Wegagen Bank was one of them.

Its annual general assembly saw some of its over 14,000 shareholders arriving at the Hilton in October this year with a rare sense of confidence, a commodity in short supply throughout much of the economy. For a financial institution besieged by a bank run a couple of years ago and by the closure of its many branches in the Tigray Regional State due to the two-year civil war, the numbers that greeted them were among the strongest in the Bank’s history.

Its annual reports for the financial year 2024/25 posted a gross profit that climbed by 73pc to 3.85 billion Br, pushing return on average assets to 3.7pc and return on average equity to 25.3pc. Wegagen’s numbers were impressive but did not match those of its largest peers, such as Awash Bank (over 22 billion Br), the Bank of Abyssinia (10 billion Br), and Zemen Bank (8.2 billion Br).

Deposits expanded by 28pc to 66.5 billion Br (Awash has the highest among the private banks at 332 billion Br) and outstanding loans grew by 18pc to 53.5 billion Br, all while remaining within the Central Bank’s regulatory credit growth cap.

Wegagen Bank’s President, Aklilu Wubet (PhD), anticipated that regulatory ceilings would be relaxed in the future, allowing more loan growth. The Bank’s reported net operating income surged by 46pc to 9.7 billion Br, while earnings per share (EPS) jumped to 46pc, up from 36.9pc the previous year.

Aklilu, who took over Wegagen’s top job during the Bank’s most trying period in January 20022, credited the jump in profit to structural changes, driven by deposit mobilisation, loan growth, cost reduction, and active foreign exchange risk management.

“The Bank is pursuing a mass-based resource mobilisation strategy to enhance saving deposits, which are less costly and more stable,” he told Fortune.

Wegagen Bank’s figures positioned it among the most profitable private financial institutions, and its return on assets (RoA) at 3.7pc is about double the 2023/24 industry average. Its 25.3pc return on equity (RoE) pushed it into territory traditionally reserved for Awash and Zemen. A net profit margin of 20.6pc, higher than the industry’s 18pc average, which offset an asset-turnover ratio of 0.16, typical for domestic banks. Leverage, at 6.6 times equity, was slightly below the industry norm, unveiling that returns came from margin discipline and manageable credit costs.

The Bank’s total assets swelled by 28.8pc to 84.67 billion Br (compared to Abyssinia’s 286 billion Br and Zemen’s 88.6 billion Br) driven by aggressive lending, robust deposit growth, and a “savvy foreign exchange in play.” However, forex earnings had declined to 273 million dollars, which Aklilu attributed to heightened competition following FX market liberalisation. He disclosed a plan to strengthen ties with remittance agents and boost inflows.

Financial analyst Tewodros Endale, CEO of MATED Consulting, benchmarked Wegagen Bank against industry leaders such as Awash, Dashen, Abyssinia, and Zemen, the four largest private banks. He rated its liquidity as “strong,” noting that liquid assets to total deposits were 30pc, comfortably above the industry average of 27pc and 32pc.

“Wegagen maintains adequate liquidity, balancing between profitability and reserve safety,” said Tewodros.

The Bank’s loan-to-deposit ratio was 66pc, within the 65pc and 75pc industry range. Its capital adequacy ratio (CAR) of 14.9pc, nearly double the Central Bank’s eight percent minimum, was well within the 16pc and 20pc industry average.

“The Bank’s capital strength is robust, supporting growth and resilience against credit shocks,” he told Fortune.

Tewodros characterised its profitability as “healthy”.

“Profitability is solid, though slightly behind high-growth private banks,” he said. “Improving cost efficiency could uplift RoE to the upper range of peers.”

Asset quality was another area of focus. With a non-performing loan (NPL) ratio of 3.8pc, the Bank sat comfortably within the industry’s three-to-five percent corridor. Loan loss provisions were recorded at 2.1pc of gross loans. According to Tewodros, asset quality was sound, mirroring effective credit risk management amid industry-wide loan stress in the construction and import sectors. Total loans accounted for 63pc of assets, funded mainly through customer deposits.

Another expert who closely watches the financial sector is Aminu Nuru, a financial analyst based in Doha, Qatar. He viewed Wegagen Bank’s performance as among the strongest among domestic banks in recent years. He praised the exceptional rise in net profit but cautioned that a substantial part of the operating income came from gains from sudden policy changes to the foreign exchange regime last year.

Several industry analysts warn and caution shareholders carried away by such windfall gains that last year’s results may not be repeated if tied to one-off open currency positions following the Birr’s float.

“Such non-core income may not happen again,” Aminu told Fortune. “Management should ensure future earnings come from sustainable sources.”

Geteye Mekuria, chief marketing and strategy officer at Wegagen Bank, responded vigorously to the analysts’ reservations, particularly about foreign exchange gains. According to him, the Bank was proactive in monitoring business and regulatory developments and had implemented a strategy to match foreign-denominated assets with corresponding liabilities to manage perceived risk.

“It should be noted that the Bank has maintained this prudent foreign fund management practice throughout the fiscal year and shall continue in the future,” he told Fortune.

He disclosed that diversification is underway, with the Bank planning to remain proactive in the interbank money market, open market operations, and treasury bills, while expanding loans and advances and complying with the Central Bank’s credit growth limit. The Bank is investing in alternative earning assets, with 8.3 billion Br already spent in debt securities.

The experts who analysed Wegagen Bank’s books urged its executives to prioritise digital transformation and stricter operational cost controls, noting that the rapid increase in wages and administrative expenses could erode margins if left unchecked. Operating expenses grew from 4.45 billion Br to 5.9 billion Br, although the cost-to-income ratio dropped by six percentage points to 71pc.

“Cost efficiency remains one of the key strategic priorities of the Bank’s management,” Geteye told Fortune. “Substantial progress has been achieved in enhancing operational efficiency.”

He attributed the reduction in the cost-to-income ratio to ongoing initiatives in digital transformation, process automation, and cost rationalisation.

Geteye disclosed that Wegagen Bank has focused on raising awareness and developing capacity among both employees and customers on the future of interest-free banking (IFB). Despite the notable growth in the IFB deposits front, reaching one billion Birr last year, Aminu criticised the small share of financing extended through the window, nudging Wegagen Bank to scale up interest-free lending to match its strong deposit mobilisation and better capture the expanding Islamic banking market.

“We’re working to expand interest-free financing,” said Geteye.

However, Aminu is positive on the asset side, commending the healthy loan-to-deposit ratio and improved liquidity as evidence of sound balance-sheet management. Geteye attributed this to “continued success” in resource mobilisation, particularly deposits and capital.

“It’s the strategy of the Bank to boost further its resource mobilisation endeavours, which will eventually be converted to earning assets, mainly loans and advances, as well as investment activities,” he said.

Aminu voiced concern about a sharp rise in loan impairment charges and the size of allowances for doubtful debts, calling the trend “alarming” and urging heightened focus on credit quality. Related party exposures stood at 2.3 billion Br in loans and 985 million Br in deposits, managed strictly at arm’s length.

According to Geteye, the impairment charge on loans and advances will not only correspond to the rise in non-performing loans but also the growth in the total loan portfolio, including past-due and special mention loans. Sectoral exposures were balanced, with imports covering 25pc, domestic trade 18pc, exports 16pc, and construction 15pc.

“The Bank maintains its liquidity position in line with the risk appetite,” he said.

Experts see liquidity as a distinct advantage for the Bank. With a regulatory liquidity ratio of 28pc, almost double the 15pc minimum, Wegagen Bank was well-positioned to manage currency shocks. Cash and balances accounted for 19pc of assets.

The President offered a broader strategic outlook, capitalising on the Bank’s strong capital position.

The Bank posted a capital adequacy ratio of nearly 15pc, close to double the minimum regulatory requirements, and followed a paid-up capital increase of two billion Birr. Shareholders have resolved to raise paid-up capital to 20 billion Br within five years to ensure resilience against rapid asset expansion.

One of these is Kifeleyaekob Demessie, an early shareholder who invested 40,000 Br four years ago. Nonetheless, he was open about some of his reservations about plans to build new properties, fearing property taxes could offset benefits.

“They need better investments,” he said.

However, the President disclosed major investments in information security initiatives and growth in mobile, ATM, POS, and online transactions, now serving 3.4 million subscribers.

Digital lending is a growing feature, with the “Efoyta” product disbursing 3.2 billion Br to 201,000 mostly uncollateralised borrowers.

The Bank’s performance is also underpinned by efforts to strengthen governance. According to the Board Chairman, Abdishu Hussein, “Not only does the Board oversee the operation, but it also keeps the business sustainable.” He noted the establishment of committees for risk management, compliance, human capital, and audit, which ensure compliance with Central Bank directives.

“The Bank has put in place a sound conflict of interest management policy and procedure,” Aklilu said, stating Wegagen Bank’s governance standards as the first company listed on the Ethiopian Securities Exchange (ESX).

Human capital investment was another pillar, with employee numbers rising to 5,553 across 455 branches, wages and benefits making up 41pc of expenses, and training outlays reaching 87 million Br. Employee satisfaction was reported to be high, attributed to managerial changes and pay increases.

According to Dessalegn Merugi, manager of Wegagen Bank’s largest branch in Dembel Building, on Africa Avenue, serving nearly 400 customers daily, part of the 28,000 listed, often corporate clients, the Bank enjoys an 83.2pc customer satisfaction rate in the district. He was delighted that the deposit per branch surpassed expectations, reaching 3.6 billion Br, 231pc over the plan, and calculated to 12 million Br per employee. It had a healthy deposit-per-branch metric, rivalling Awash and Abyssinia.

Compared to peers, analysts put Wegagen Bank between Awash’s deep liquidity and Zemen’s tightly managed balance sheet. Its executives’ approach was measured, combining traditional deposit-funded lending with incremental diversification into investment securities and non-interest income. It increasingly resembles a fast-maturing challenger rather than an incumbent behemoth. Its returns on equity were comparable to Dashen’s and Abyssinia’s, but with lower leverage, higher liquidity, and a more measured growth strategy.

At its core, Wegagen’s story is not about chasing headline numbers but about how a mid-tier bank with 84.7 billion Br in assets and 12.8 billion Br in equity is methodically building itself into a systemically relevant player, and, in at least one respect, a market pioneer. As the first company to list on the Securities Exchange and the first to spin off a licensed investment bank, Wegagen is seeking a foothold in financial intermediation just as policymakers open the market to foreign banks and new capital.

The analysts cautioned that the main question is whether the Bank is trying to do too much at once, maintaining rapid deposit and asset growth, keeping credit quality high, scaling up digital services, and establishing an investment banking arm, all while regulatory reforms remain unfinished.

From last year’s performance, Wegagen’s bet appeared to have worked. The Bank has delivered one of the best combinations of return on assets and equity among mid-tier banks, without obvious balance-sheet strain. Liquidity was strong, capital robust, and earnings were climbing. Analysts see that if Wegagen’s management can maintain this performance while helming new capital-market ventures and more regulatory reforms, the Bank may soon graduate from the “mid-tier” category.

A Night Under the Stars Became the Price of Leaving

Posted on November 23, 2025November 26, 2025 by Web Master

Anyone who threads their way along Churchill Avenue towards the hulking Immigration & Citizenship Services (ICS) soon hears the commotion before they see its cause. A restless mix of individuals speaking Afaan Oromoo, Tigrigna, Somali, Amharic, and almost every other language spoken in the country floats above a mass of people that appears to grow with each passing minute.

First-time visitors slow, stare and try to count the heads spilling into the road. It looks as if a large crowd decided to spend the night at the gates, passports to be collected before the sun is up.

Step closer and the scale comes into painful focus. Hundreds sit on fraying plastic sheets or lean against sun-scorched concrete, dozing in short bursts while guarding a hard-won place in line. Others have hauled small wooden stools from home. A few crouch on the bare pavement as the day’s heat radiates back through the soles of their sandals. Boredom clings like dust until a booming loudhailer crackles to life and a single name cuts through the din.

A ripple of movement follows, a mix of envy and congratulations, before the wait resumes.

The ICS has three branches in the capital. The branch near Adey Abeba issues passports. In that branch among those who finally made it to the window, stood Mekdes Mekonnen. She waited four months to hear her name. The 24-year-old hairdresser travelled more than 160Km from Batu, a lakeside town in Oromia Regional State, after saving 5,000 Br for the official online application and another 1,000 Br for the neighbour who filled out the form. High school ended years ago, and her corner salon barely covered rent.

“I tried,” she said, turning the brand-new passport over in both hands. “But life didn’t move forward. I lost faith.”

A recruiting agency had promised domestic work in the Gulf and an unthinkable wage at home. First, though, she needed the navy-blue booklet.

The biometric appointment was set for July, so she left home a day early, slept outside the compound and inched forward at dawn on a nerve-fraying shuffle that lasted until midday. Although the fingerprints took minutes, the exhaustion clung for days.

“It was not easy,” she said. “I spent so much on transport and food, and had the service been available near my town, I wouldn’t have spent as much.”

Told to return to Batu and wait, she counted another two months before the text message arrived calling her back to Addis Abeba. At last, she stood inside a glass booth while an official slid the booklet across the counter.

Then comes a surprise.

“They told me I must pay 100 Br to receive the passport,” she recalled.

The post office once handled distribution and charged between 45 Br and 100 Br, but the ICS took the work in-house.

“Why am I still paying?” Mekdes wondered, but no one explained.

She shrugged, handed over the notes, pocketed the passport and asked the same question everyone around her was muttering.

What exactly is the money for?

That question travelled from the pavements to the federal legislative house last week. On November 17, 2025, heads of the ICS presented their quarterly report to the Standing Committee on Foreign Relations & Peace Affairs, chaired by Dima Negewo (PhD). A member of the Committee, Mekdes Desta, pressed the officials on whether the 100 Br charge is legal, and whether the revenue is recorded correctly.

Selamawit Dawit, ICS’s director general, looked uncomfortable but stood her ground. The fee, she told MPs, is collected by the agency’s workers’ union, a body that also physically hands out completed passports because the documents are “security items that must be handled” carefully. She argued that the money is audited.

According to her Deputy, Gosa Demissie, the staff in union kiosks photocopy registration papers and perform small administrative tasks for applicants. The payment is for services provided, not a hidden tax. Union officials insist the arrangement is above board, that the passport hall would grind to a halt without the photocopiers, envelope sealers and runners paid for by the levy, and point out that applicants once had to queue again at post offices. They add that every receipt is stamped and the books reconciled monthly with management.

However, observers claim that the Union is not subject to formal public audits. The ICS issued more than half a million passports in the first quarter of the fiscal year, generating income for the Union of no less than 50 million Br. This may not be huge by the federal government’s standards, but it is a hefty sum by most others. Officials say the money supports former employees made redundant during recent reforms and funds unspecified “social responsibilities.”

Critics fault them for failing to provide a detailed public ledger. For passport applicants, the 100 Br is hardly the biggest expense, merely the latest.

Mamo Shena, a 32-year-old farmer from the lush hills around Areka in Wolayta Zone of Southern Regional State, sat in the forecourt last week with his wife, Mamaye Ewnetu, and their infant daughter, napping in his lap. He has spent six months trying to secure a passport for Mamaye to take a cleaning job overseas. Immigration offices exist in Hawassa and Hosanna, both closer to home. Yet, Mamo chose Addis Abeba in the hope that shorter queues would save time. Instead, he has spent nearly 30,000 Br on travel, food and hotel rooms.

Despite all the time and money spent, when Mamo was finally told to come pick up the passport last week, he missed the scheduled date. When he got to the office, he was told to return the following week to pick it up. He decided to wait in Meqi, 143Km east of Addis Abeba, in the Oromia Regional State, with his brother until the new appointment date.

At the Committee hearing, lawmakers criticised the scarcity of regional service offices and the distances people are compelled to travel, even after paying the 5,000 Br fee. Deputy Director Bikila Mezgebu accepted the rebuke. He pledged that new branches will open in Wolayta, Mizan Aman, Arba Minch, Gondar, Woldiya, Bale, Metu and Bule Hora, though no dates were given.

Software, staffing and human behaviour also clog the system. Applicants book a specific day and hour online.

“Ninety-five percent fail to show up on time,” Bikila said.

Each late arrival ripples through the schedule. No one may be turned away, but the backlog swells, pushing the queues deeper into Churchill Avenue.

Even so, demand for new passports accelerated. A population of over 100 million is young, restless and squeezed by soaring living costs. For many, the road to Riyadh, Doha, or Dubai starts at the ICS branch on Debrezeit Road, with a night under the stars and a chance at a wage in hard currency. The official online portal was meant to tame the crush. Instead, intermediaries sprouted, charging for form-filling and, applicants whisper, for earlier appointment slots.

According to Bikila, the internedriaries feed on out-of-date procedures.

“When problems arise with our employees, we’ll fix them,” he told legislators.

Three employees were being investigated for alleged ethical violations, and five more were under custody, suspected of fraudulent activities related to online passport applications. Ten people allegedly running illicit intermediary services have been arrested this quarter; 35 are under surveillance for filling out emergency passport forms; and five outlets linked to the alleged scams have been shut down.

Aseged Getachew (PhD), a former state minister for the Ministry of Labour & Skills with almost two decades in public service, agreed the clock is ticking.

He acknowledged the visible improvements the Immigration & Citizenship Service has made, although it still has many citizens unhappy with its service. Aseged attributed the problem to the agency’s failure to use a modern, streamlined system that fits the size of the growing population and the economic reality. He saw that too many agencies are trapped in protocols drafted “10 or 15 years ago”. Decentralisation, he argued, is only half the battle.

“The bottlenecks move from Addis Abeba to the next town.”

For those planning to travel to the Middle East for work, the situation is more complicated, because most recruitment agencies are based in the capital. Several applicants believe it is better to complete the process in Addis Abeba, creating a jam on the system and, in Aseged’s words, “turns the situation into a kind of business environment inside the agency.”

Taxi Drivers Brace for Fresh Costs as Speed Control Rule Nears

Posted on November 23, 2025November 27, 2025 by Web Master

A proposed regulation mandating the installation of GPS-enabled speed-limiting devices on all vehicles has triggered widespread concern across the commercial transport sector, as drivers and association leaders brace for what they see as an expensive and technically opaque imposition.

The draft directive, initiated by the Ethiopian Road Safety & Insurance Fund Service (ERSIFS), forms part of a broader campaign to tackle soaring traffic fatalities. Authorities argue that with speeding accounting for the lion’s share of road accidents, the regulation is a necessary step. But the prospect of mandatory compliance has left many drivers anxious over affordability, unclear technical standards, and enforcement risks.

The draft directive is part of a renewed push to combat the deadly effects of speeding, identified by authorities as the leading cause of more than half of traffic accidents in low and middle-income countries and the main factor in the carnage on local roads. If enacted, the new rule will apply to virtually every vehicle operating in the country, exempting only emergency vehicles, diplomatic cars, heavy machinery, and cars assigned to senior government officials.

Under the proposed regulation, speed controllers should be able to prevent vehicles from exceeding prescribed speed limits and transmit operational data to a centralised monitoring platform. Only certified companies will be allowed to import, install, and service the equipment, while vehicles lacking a functioning speed limiter will be denied the annual technical inspection certificate needed to remain on roads.

Implementation is set to roll out in phases, beginning with commercial transport services such as taxis and minibuses. Drivers and vehicle owners will bear the responsibility for installing, maintaining, and repairing the devices, which should be synchronised with GPS and sealed to prevent tampering. Police will have the power to inspect the devices during routine checks, and may temporarily seize a driver’s competence certificate if the equipment is found to be faulty or improperly installed.

The draft regulation spells out a strict penalty regime. Vehicle owners who permit operation without a speed controller face fines of up to 3,000 Br. Failure to repair a defective unit could result in a 2,000 Br. fine. Drivers may be fined 1,000 Br for driving without a device, operating with a malfunctioning or unsealed unit, or failing to present the installation certificate. Installer companies, meanwhile, could receive escalating penalties ranging from written notice to three-month license suspensions and, ultimately, license revocation for repeated noncompliance.

According to Yonas Belete, director of road traffic safety at the ERSIFS, the regulation is still a draft but is considered a necessary upgrade to existing measures.

“Accidents in our city are too frequent, and most occur because drivers exceed the speed limit,” Yonas said. “The current rules need software upgrades and more rigorous implementation.

ERSIFS is working with Ethio telecom to develop a speed control device service. While the device itself may be imported, the software will be developed locally to provide real-time traffic management data.

“This is part of our broader strategy to prevent car accidents,” Yonas told Fortune.

Earlier efforts included setting the speed limit at 50Km/h and collaborating with police to enforce compliance.

Yonas disclosed that a thorough consultation process was conducted to develop the draft, involving authorities from all 14 regions across the country, including Addis Abeba and Dire Dawa, as well as a major conference held five months ago to gather input before submitting the draft to the Ministry of Transport & Logistics.

“We’ve done our part and are waiting for the Ministry to move the draft toward implementation, which could happen any day now,” he said.

The rollout will initially target commercial vehicles such as Code 1 and Code 3 taxis, which have been implicated in many of the most serious accidents, especially those involving more than a dozen passengers. The specific type of speed-limiting device will be selected once Ethio telecom completes the digital infrastructure to support the system. Anyone seeking to import and market the device will need to meet technical capacity and quality standards and secure authorisation from the Ministry before entering the market. Once the regulation is officially adopted, all vehicles will be required to install the device on schedule.

While government officials capitalise on the safety benefits, the draft directive has sparked widespread concern among taxi operators, who fear an added financial burden. Many drivers, already struggling to cope with high fuel costs, maintenance, and spare parts costs, are worried that the new requirement will push them over the edge.

According to Getu Tesfaye, president of the Selam Taxi Association, which represents 400 members, the group had little information about the draft or the speed controllers themselves.

“Speed is a major problem among drivers, and this is a good solution for reducing accidents,” Getu said. “But we do not know the device or the costs involved. Taxi drivers are already struggling to change tyres and maintain vehicles. Adding new costs is very difficult.”

Getu would like transport officials to consider providing financial support or loans to his members.

Tekestebrhan Semre, a Code 1 taxi owner and driver with more than six years of experience, voiced similar concerns. He earns an average of 3,000 Br daily income, but after fuel, oil, and other expenses, he takes home less than 500 Br.

“Adding the cost of a new speed control device is more than I can handle,” he told Fortune.

Mola Genetu, a father of two, who has been driving a taxi for over a decade, was also worried about the financial pressure the device would create.

“We don’t deny that speeding causes accidents,” he said. “But adding costs without clear guidance is not a solution. There have been too many regulatory changes recently.”

Roughly 4,200 Code 1 taxis and about 1,000 Code 3 commercial transport taxis are operating in Addis Abeba. The roads remain perilous. In 2023/24, 401 deaths were recorded, with pedestrians accounting for 86pc of all fatalities. In the following year, fatalities increased to 448, where 83pc were fatal. Megenagna areas were identified as one of the city’s most dangerous traffic hotspots, recording 13 fatalities in the past year alone.

“The accidents are real and concerning,” said Dereje Beyene, president of the Tsehay Taxi Association, which has more than 410 members.

But he echoed the worries about financial strain and regulatory overload.

“Adding multiple regulations on top of existing burdens doesn’t fix the problem,” he said. “We’ve no objection to a new rule in principle, but the enforcement needs oversight to prevent corruption and ensure fairness.”

Proponents of the directive argue that enforcement, monitoring, and strict penalties will encourage compliance and, over time, reduce accidents attributed to speeding.

For Berhanu Kuma, who heads the road safety concept directorate at the Addis Abeba Traffic Management Agency, the life-saving purpose of the draft regulation is indispensable.

“Our main job is to enforce traffic rules, and more than half of the accidents in our city are speed-related,” Berhanu said. “This regulation can ease our work if implemented consistently.”

Transport officials insist a phased schedule will allow vehicle owners time to install the speed controllers, while locally developed software will handle performance monitoring and support broader traffic management efforts.

Beyond the taxi associations and regulators, experts in automotive and public health say that while speed control devices can reduce accidents, their effectiveness will depend on technical compatibility and sound implementation. Abiy Alene, a mechanical designer and lecturer at Addis Ababa University with over a decade of experience teaching automotive and transport-related courses, as well as more than 14 years of driving, agrees that speed is a major factor in many of the city’s traffic accidents.

“Speed definitely contributes to the accidents we see in the city,” he told Fortune. “Introducing a solution is not a bad idea. However, these devices also have downsides for both fuel-powered and electric vehicles.”

Abiy warned that the devices need to be adaptable to the actual road conditions. If they lock a car to a fixed speed limit at all times, they can damage engines, especially when the vehicle needs extra power to climb steep roads or descend safely.

Roads in Addis Ababa are not levelled, and in some areas drivers may need to exceed 50 km/h to climb hills or maintain safe control going downhill.

“We’ve already seen problems in some pickup vehicles that had speed-limit locks,” said Abiy. “The device should be able to sense road conditions, and for that to happen efficiently, roadside equipment also needs to be upgraded so the speed-control system can collect accurate information.”

Teferi Abegaz (PhD), an assistant professor of public health at Addis Abeba University who completed his studies on traffic accidents 15 years ago, concurred. Technological solutions targeting speed are necessary.

“Road safety is governed under global health frameworks, and addressing speed is a key component,” he said. “But implementation will be challenging. This type of technology needs strong software support, and GPS-based systems can make enforcement easier.”

Teferi cautioned, however, that the biggest obstacle will be vehicle compatibility. He observed that most Code 1 and Code 3 commercial vehicles are not computerised to handle advanced monitoring systems.

Soaring Cooking Oil Prices Squeeze Households, Expose Market Fault Lines

Posted on November 23, 2025November 26, 2025 by Web Master

In a troubling divergence from official inflation data, the cost of everyday essentials is climbing with unnerving speed, reshaping household habits and revealing deep inefficiencies in the import-dependent supply chains.

Nowhere is this more visible than in the spiralling price of cooking oil, an indispensable kitchen staple whose sudden surge is reverberating from the open-air markets to restaurant kitchens and low-income homes.

The divergence between official statistics and the lived experience has been drawing increasing attention, particularly as international organisations weigh in with their own analyses. The International Monetary Fund (IMF) recently confirmed what most families already know. The cost of goods and services in Ethiopia has jumped by an average of 13pc. Yet, the Central Statistics Agency (CSA) offers a different reading, reporting food inflation at 10.2pc this month.

On the ground, however, the difference is all but invisible. Prices continue to surge, stretching household budgets to their breaking point.

The disparity is evident in the capital’s busiest markets. In neighbourhoods such as Ayer Tena, Mercato, and Lancha, a walk through the stalls reveals how much prices have jumped in a matter of days. Cooking oil, a staple in local kitchens, has become an example of this crisis.

The preferred Omar brand, widely known for its quality, jumped 18pc in a week, rising from 1,700 Br to as much as 2,000 Br, depending on the shop. Orkide oil followed closely, rising 12pc to 1,850 Br, while Sunflower, another popular choice, spiked 17pc to 1,750 Br. Even more striking is the Viking brand of palm oil, which soared from 1,100 Br to 1,500 Br, a jump of 36pc in seven days.

For many in Addis Abeba, and across the country, these increases are forcing tough choices.

Tesema Bedaso, 28, has felt the pinch more than most. Working as a day labourer at a construction site near Bole Arabsa and living alone in Tulu Dimtu, he is financially stretched. He rents a single-room condominium for 8,000 Br a month, leaving little for food and other necessities. Not long ago, he could buy five litres of edible oil for 1,500 Br at his neighbourhood shop. But when he returned recently to restock, the oil was gone. With prices rising everywhere, he has been forced to change the way he diets.

“Now I boil potatoes and eat them with salad,” he said. “Almost every food needs oil to cook.”

Despite the challenges, Tesema is determined to find a way. He now plans to buy smaller amounts of oil, a litre or two, if he can find any at a reasonable price.

His story is far from unique. Fikirte Tilahun, a mother of three and a housewife, found herself in a similar bind when she set out to buy cooking oil. Initially hoping to purchase a five-litre bottle, Fikirte was taken aback by the new prices. She immediately scaled back her plans. She now buys only a litre or three at a time, the five-litre option no longer within reach.

“The cost of living has increased badly,” she said. “Life has become very tough.”

For shopkeepers, the situation is equally troubling. According to Habib Ahmed, who runs a small shop in Ayer Tena, he had little choice but to raise prices this week after seeing wholesale costs spike during a recent trip to Mercato. Almost every item on his shopping list was more expensive than before. Cooking oil, in particular, was subject to wild fluctuations.

“I feel ashamed when customers ask me the price,” Habib said.

Some customers accuse him of being greedy, but most eventually return after finding the same high prices elsewhere. The strain on supply is also growing. Habib saw how traders in Mercato were limiting sales to two packs of cooking oil per shop owner, if they were willing to sell at all.

“Even getting that amount has become difficult,” he said.

Officials, aware of the growing complaints, are stepping up efforts to monitor and stabilise the market. According to Ashenafi Berhanu, communications director at the Addis Abeba Trade Bureau, his office has begun inspecting markets to check for hoarding or excessive pricing. These are concerns raised by shop owners like Habib, who say the latest surge in prices has no explanation. Ashenafi also stated that there is no shortage of imported goods or disruption in the import system. He blamed speculation and hoarding for much of the current rise in the cost of living.

But traders and distributors in Mercato reject this, insisting the problem lies further up the supply chain. According to Hamdan Mohamed, a longtime distributor, the real issue starts with importers.

“If there is hoarding, it’s from the side of the importer, not from the distributors,” he said.

Hamdan claims that when importers supply sufficient product, Mercato traders have the capacity and the willingness to buy and distribute edible oil at only a small profit margin. He recalled a recent sharp price increase that began when importers raised their rates, sometimes citing factory shortages as the cause. The result, he said, is higher wholesale costs and fewer products to sell.

“The increase is because the supply is low and the import price is higher than usual,” he told Fortune. “It isn’t because we want to make unfair profit.”

Hamdan pointed to another issue where importers often issue invoices for a much lower amount than the actual sale price, a practice meant to reduce their tax burden. Distributors, meanwhile, are required to issue invoices for every sale they make at the actual cost.

“When the goods arrive, the invoice the importer gives us is much lower than what we actually paid,” Hamdan said. “This is pushing us toward loss.”

Distributors, needing the products, accept the deal but are left unable to issue the correct invoice when they sell the goods on.

The consequences are costly. Some distributors end up selling without issuing receipts. When revenue bureau inspectors visit, they treat the omission as a violation and threaten hefty fines, up to 100,000 Br.

Hamdan believes the only solution is for importers to issue valid invoices, allowing distributors to do the same and avoid these problems. The combination of low supply, high import prices, and invoice-related headaches, he said, is fueling the current crisis.

Zemzem Sermolo, another trader in Mercato, agreed that the trouble begins with rising import prices. The surge has forced her to stop selling liquid cooking oil and instead switch to palm oil.

“Whenever importers increase their rates, prices rise here,” she said.

She noted that liquid cooking oil has become so expensive that many customers now buy palm oil as a substitute.

The shift is affecting the restaurant business as well. Tigist Birhane, owner of the Beteseb Restaurant near Mercato, once cooked with high-quality oil for her customers. But with supplies tight and prices volatile, she switched to a cheaper, more reliable oil. The oil she once used now costs 2,000 Br for five litres, while the unpurified “Viking” brand sells for 1,500 Br and lasts much longer. For Tigist, who caters mainly to construction workers and bank employees, the change was not a choice but a necessity.

“The good oil is too expensive,” she told Fortune. “If I used it, I simply couldn’t make a profit.”

There are still efforts to provide relief. The Ethiopian Trading & Business Corporation, established to help stabilise prices, offers five-litre sunflower oil at 1,550 Br. According to Bestelot Yilma, an advisor at the Corporation, by importing directly and distributing through its own shops in major cities, the company can avoid the worst of the price spikes.

“Since we’re bulk buyers, we stock the products in advance,” she said. “Currently, we’re issuing the oil from our stock. There is no price increase in what we offer.”

The Trade Bureau maintains that its main job is to prevent hoarding and the sale of goods at inflated prices, not to set prices for traders. Ashenafi urged consumers to buy cooking oil at fair prices from Sunday markets and district consumer cooperatives throughout the city. He recommended that shoppers look to these outlets whenever possible.

Some experts argue that the current crisis goes beyond supply hiccups and market speculation. Getachew Alemu (PhD), an economist known for his commentary on macroeconomic issues, argued that the fundamental problem is reliance on imports for goods such as cooking oil. This exposes consumers to global price swings, customs tariffs, and logistical changes that can quickly push up costs.

“Even if the statistics indicate a decline, the situation on the ground feels very different,” he said.

Getachew attributed other factors to the price push, including unpredictable government policies, the tax authority’s outdated tax system, speculation, and tax changes to fuel. According to him, regulatory moves such as the closure of domestic oil factories for safety reasons have added to the instability.

“These sudden and unpredictable decisions distort the market,” he said.

Fuel taxes have also affected prices, sometimes prompting traders to hoard products in anticipation of future price hikes. This, combined with already high demand, has made the market even more volatile. Getachew called on the government to review its policies, revise the tax system, and manage the macroeconomy more prudently if it wants to keep prices in check.

Agency Turns to Shareholder Farming in Bid to Reshape Rural Economy

Posted on November 23, 2025November 26, 2025 by Web Master

A federal agriculture agency sets an ambitious plan to transform the agricultural sector, creating private agricultural business companies across cluster farming areas.

Developed by the Agricultural Transformation Institution (ATI), the plan seeks to reshape how farmers grow, market, and benefit from their crops, offering a glimmer of hope to millions who have long relied on traditional, subsistence farming. Part of the Agricultural Commercialisation Clusters (ACC2) project, it carries a clear mandate to end the dominance of intermediaries in agricultural markets and introduce a commercial model that links farmers directly to buyers, markets, and sources of agricultural inputs.

The first phase of the ACC, launched six years ago by former President Sahlework Zewde, marked a turning point in the sector’s strategy. Backed by a 128 million dollar funding package, most of it secured from international partners such as Denmark, with additional support from the African Development Bank (AfDB) and the European Union (EU), the ACC2 plan is expected to impact as many as 6.5 million of the 18 million farmers in the coming years, according to government projections.

According to the Agency’s officials, the federal government will cover the lion’s share of each company’s costs, but farmers should put up at least 10pc of the initial capital. These shares, contributed primarily in land and sometimes in cash, will make participating farmers shareholders, entitled to dividends proportional to their contributions. To buy in, each farmer would provide at least a quarter hectare of land at the national level. At national level one household has 0.8hc on average. The cluster is expected to run from 15hct to as much as 200hct.

The target is to fold about 15,000 of the 99,120 existing production clusters into 50 new Farmers’ Production & Agri Business Companies (FPABC) that will serve as the commercial backbone in as many districts.

Senior ATI officials see the new companies as more than market hubs. They will operate across the full value chain, from supplying inputs to aggregating produce, offering collateralised financing to their members, and, crucially, acquiring licenses to import and export.

“Every farmer should buy shares,” said Dagnachew Lule (PhD), ATI’s senior director for the clusters. “This is a win-win for jointly financed companies.”

The hope is to allow farmers to sell their products directly through these companies, without the costly intermediation of dealers that have long sapped incomes and created instability.

For years, farmers have struggled to add value to their products, held back by fragmented supply chains, poor infrastructure, and limited market access. Cluster farming, which began on 600,000hct, now covers 12 million hectares. However, Dagnachew believes, much remains to be done.

“We’re at 2.43 million hectares, but at the regional and ministerial levels, there’s more progress,” he said. “Persistent shortages of seeds, fertiliser, and mechanisation are still a drag on productivity.”

According to Dagnachew, while production in many regions is high, marketing remains elusive for many farmers due to poor roads and non-existent markets.

“If you want to improve agriculture, it needs financing,” he told Fortune. “Otherwise, there is no benefit.”

Private companies are expected to fill these gaps, serving as the focal point for the aggregation, processing, and marketing of key commodities such as maise, white grains, barley, mango, avocado, and honey, each company limited to the commodities produced within its cluster area. Once operational, the companies will be authorised to handle input procurement, agro-processing and exports. They will also be allowed to participate in the import of fertilisers.

“But much will depend on whether they are permitted to take part in the import sector,” Dagnachew said. “We need to reduce the gap observed in the market that we currently have.”

The rollout is tied to broader efforts to commercialise agriculture and make it a driver of economic growth and food security. A total of 115 million dollars in finishing funds is projected to be needed to complete the project over five years. The emphasis is beyond production and on integrating farmers into national and international markets, with each FPABC designed as a one-stop shop for the cluster farmers it serves.

The ACC2 program is expected to provide particular relief to roughly 300,000 internally displaced people, especially those in the Somali Regional State, who are expected to be among the first to benefit.

Gebru Tafesse, a veteran from Gurage Zone’s Abesheke District, grows mainly maise but has branched out into fruits and vegetables in recent years. He faces the same obstacles that have dogged generations of Ethiopian farmers. Most of his land, about 80pc, is planted with maise, with the rest devoted to avocado, mango, and sugarcane. Once the maise is harvested, he plants onions. In a good year, he brings in 700Qtls to 800Qtls of maise. Oftentimes, less, depending on the weather.

But for Gebru and his neighbours, market volatility is the defining challenge.

“We produce well despite the challenges, but the market is the engine,” he said. “Sometimes we’re forced to sell our produce at a very low price.”

Despite opening a shop in his kebele to sell fruit, he has rarely turned a profit. Even when he manages to sell as much as 50,000 Br worth of produce, he sometimes ends up dumping out unsold goods. In a good year, he can fill four freight trucks, each with 200Qtls of onions, for the market in Addis Abeba. But last year, market swings and poor roads cost him more than 100,000 Br.

Gebru is hopeful that the new companies will shield farmers from such losses, but he remains cautious.

“It’ll help, but what about the infrastructure?” he said. “My neighbours and I are willing to cooperate, but if the solution doesn’t address the real problems, our losses will continue.”

Since 2023, Gebru has watched the prices of nearly everything rise, even as farmers’ incomes declined. Fertiliser prices, late deliveries, and the absence of improved seeds remain a major bottleneck.

“Farmers need fair prices, not price increases on everything,” he told Fortune.

He warned that if the costs of seeds, fertiliser, and chemicals keep climbing, farmers’ livelihoods could be severely threatened.

Officials in the Central Ethiopia Regional State see the same problems and the same potential. According to Usman Surur, head of the regional agriculture bureau, commercialising agriculture is critical for improving farmers’ incomes and fixing the market-linkage gaps that persist across Ethiopia. He pointed to the first phase of the program, which he saw brought real, if incomplete, change.

“Success never comes without problems,” he said, predicting that the next phase will bring new opportunities and fresh challenges.

According to Usman, clustering has made post-harvest handling easier and reduced waste. In the Gurage Zone alone, more than 36,000hct of maise are planted in clusters, yielding an average of 83Qtls a hectare. In Kebena, a district within the zone, 8,000hct of maise are clustered, and another area boasts 2,000hct of wheat. For Usman, such a scale enables farmers to form their own companies, transforming the agriculture sector.

“Agriculture isn’t only ploughing and seeding, but it should also be productive,” Usman said. “In the past, farmers had no opportunity to grow by selling their products adequately. This system helps solve that problem.”

Usman believes that by giving farmers ownership stakes in the new companies, the initiative will create more sustainable market links and improve farmers’ ability to access domestic and export markets, as well as vital agricultural inputs. The first phase saw 2,800 farmers come together to establish eight milk-processing units. The next phase will introduce farmers to new technologies, from maise processors to potato chip plants and other commodity-specific ventures.

“There are real changes in our region, along with challenges,” Usman said. “Clustering has made post-harvest handling easier and reduced waste.”

He cited limited awareness among farmers, persistent financial constraints, and weak infrastructure (roads, telecom, and electricity) as critical constraints. Logistics, cold-chain storage, and transportation remain major concerns. Despite a record harvest of 115 million quintals last year, he hopes to realise an increase of up to five times that figure in the future by irrigation farming.

For Addisu Arega, the minister of Agriculture, the project is about more than boosting yields. He believes the initiative is a necessary shift from subsistence and fragmented farming to a coordinated and value-chain model capable of underpinning the country’s food security and economic future.

Experts agree that the new model represents progress, but warn that the transition will be anything but simple. Yemengist Tesfahun, who leads Agricultural Business & Value Chain Management at Gondar University and has spent over a decade working with farmers and cooperatives, characterised agricultural commercialisation as “complex and requiring strong organisation.” Farming, she argued, remains primarily focused on short-term consumption rather than the business of agriculture.

For Yemengist, the main challenge lies not only in resource constraints but also in deep-rooted infrastructure gaps and poor market linkages.

“Farmers have no experience of surplus production from feeding themselves to markets,” she said. “It requires practical work, not theory.”

Without clustering, she warned, “some products meant for export fall apart before they even reach the market,” making the cluster-farming approach all the more vital. For her, the biggest bottlenecks are land fragmentation, which makes mechanisation difficult and drives up costs. Agricultural extension services are not enough, and unresolved land policy questions still loom large.

“Development agents alone aren’t enough,” Yemengist told Fortune. “We need people at the grassroots level with practical expertise to guide farmers.”

In her view, clustering holds out the best hope for consolidating small plots and moving farmers toward profitable modern practices.

“There is more land covered with grass than with grain,” she said, arguing that the approach could move farmers away from outdated traditions and into wider markets.

She believes farmer-owned companies will be key to building stronger value chains and raising capacity, but infrastructure remains the most critical concern. Yemengist cautioned that the government’s bold ambitions must be matched by serious, sustained investment in roads, storage, and market access. Across the country, she obserevd, fruit and vegetables often go to waste for lack of transport and reliable buyers.

Minister Melaku to Suspend Raw Leather Exports Amid Industry Crisis

Posted on November 23, 2025November 26, 2025 by Web Master

The federal government is preparing to impose a ban on the export of raw leather, a decisive intervention by Industry Minister Melaku Alebel sought to revive a domestic tanning industry in freefall.

The proposed ban, currently under drafting, marks a dramatic shift from earlier restrictive tax policies and signals the Minister’s frustration with years of policy failure in leveraging the country’s vast livestock endowment for industrial development. Melaku revealed that his Ministry is drafting new regulations to suspend the export of raw leather, blaming its exports for starving tanneries of the resources they need.

“We’re drafting a regulation to stop raw leather export,” Melaku told federal legislators, pressing the urgency of his decision.

The authorities are considering suspending the export of raw leather as the federal government seeks to revive a battered industry and curb a mounting shortage of raw materials for domestic tanneries.

Over the past decade, Ethiopia’s vast livestock population has failed to deliver the anticipated economic returns, as quality issues, leakage, and weak policy enforcement have dogged the sector. The country is believed to host tens of millions of cattle, sheep, and goats, making it one of Africa’s leading livestock sources. In 2021, the off-take rate yielded an annual production of about 41 million pieces of hides and skins.

However, the numbers conceal a growing malaise. Despite the theoretical abundance, only 22 million pieces, roughly half of the annual production, reached tanneries. These account for an estimated 138 million square feet of material available for processing. The rest, according to industry experts, was lost to contraband, spoilage, or subpar collection and handling practices. The Leather & Leather Product Industry Research & Development Centre reported in 2023 that the country loses more than 240 million square feet of leather each year, at a cost estimated at one billion Birr.

Export earnings have reflected the downward spiral. In the 2020/21 fiscal year, the leather sector generated 40 million dollars, down sharply from 133 million dollars five years earlier, a 70pc plunge. In the decade beginning in 2012, earnings from tanneries collapsed by 84pc, while export volume shrank by 62pc.

Officials have attempted to prop up foreign currency inflows by imposing minimum export prices and hefty taxes on raw hide exports. Raw leather exporters are compelled to pay a 150pc tax and are required to sell their products at no less than seven dollars a piece. Minister Melaku is determined to go further and prohibit the trade altogether.

The squeeze on supply is felt sharply on the ground. Dagnachew Abebe, secretary general of the Ethiopian Leather Industry Association, represents a sector in distress. He pointed to a shrinking number of manufacturers, a severe shortage of raw materials, and a rapid decline in quality.

“Due to a shortage of raw leather, many tanneries have shut down,” he said. “The Association doesn’t support the export of raw skin.”

There were around 35 companies a few years back, but now they have shrunk to seven. According to Dagnachew, the quality of hides and skins from the Addis Abeba Abattoirs Enterprise remains up to standard and is used for safety shoes and military footwear.

“The quality is declining day by day,” he said.

He attributed much of the decline to the shifting of oversight from the Ministry of Agriculture to the Ministry of Trade & Regional Integration, with agricultural extension programs for animal treatment discontinued in the process. Around 80pc of the low-grade leather comes from the way animals were treated before slaughter, and the remaining from the industrial processing.

“The sector’s woes cannot be fixed at the factory gate,” Dagnachew told Fortune.

Contraband and the legal export of raw hides continue to siphon off quality materials from the domestic market.

Efforts to train workers through the TVET program have yet to translate into new job opportunities, as the sector languishes without quality input. Ambitious government plans unveiled over the past two years have set targets for the industry to reach 827 million dollars in annual export revenue by 2032. The strategic plan envisions the export of 166.5 million square feet of finished leather worth 208.1 million dollars, along with 45 million pairs of shoes worth 562.5 million dollars, 10.4 million pairs of gloves (20.8 million dollars), and 2.4 million pieces of leather goods and garments (36 million dollars).

Industry players, such as Evano Mesfin, manager of New Wing Addis Shoe Factory Plc, see that the reality on the ground is less promising. The factory has expanded from women’s footwear to other lines, but the same challenges persist. His company has managed a test shipment of safety shoes to Italy.

“The main challenge we’re facing is the quality of hide and skin, which has recently deteriorated in quality,” he said, voicing hope that procurement directly from the Enterprise could improve matters.

The difficulties extend up the supply chain. According to Mesfin Tekelewold, a marketing processor at Addis Abeba Abattoirs Enterprise, the company auctions hides and skins every 10 days, with purchases typically ranging from 20Kg to 25Kg, and sometimes reaching 40Kg. Although the auctions are open to any licensed buyer, attendance is low, rarely exceeding 10 companies.

“Many companies are discouraged, and some of the companies have even changed their line of business,” he said, citing low prices and weak incentives as culprits.

Collectors often do not bother to transport skins to collection centres, as the price is too low to justify the trouble. The collapse of basic collection infrastructure is another obstacle. The Collectors Association, once operated numerous collection sheds, but new corridor development projects have resulted in their demolition.

“There is no shed that collects skins and hides, which is becoming the major challenge,” said Tarekegn Jida, deputy director general of the Leather Development Centre.

He called for the establishment of small posts to collect and transfer hides seamlessly to factories, and urged the use of dry trash trucks during the holiday season, when slaughtering peaks. According to Tarekegn, at current market rates, a seller makes 17.5 dollars from an oxen hide. A research study commissioned by the Centre revealed that pricing should be based on weight, not pieces, as one piece weighs about 11Km, a measure that deters exporters under the current regime.

However, policy solutions remain elusive. The Ministry of Finance has advised the Ministry of Industry not to intervene directly in the market, a position that limits what industry officials can do.

The sector’s setbacks are not new, but veteran industry observers say the underlying issues are deeper than they appear.

Kebede Amda, a leather technician with four decades of experience, believes that the export of raw skins, particularly if destined for food and of lower quality, is not as damaging as portrayed. He contended that the problem lies in the authorities’ failure to support collectors and enforce quality standards at every level adequately.

“The leather is thrown out before we get a chance to collect it,” he said, lamenting the impact of poor waste management and misplaced environmental activism.

Kebede believes that if the sector had succeeded, it would have created jobs and helped reduce unemployment through a long value chain for value addition. He insisted that incentives be granted to collectors, including duty-free import privileges for refrigerated vehicles, to help preserve raw materials for processing.

Minister Melaku delivered a sobering report to Parliament last week, telling federal lawmakers that the sector is challenged by global competition and chronic shortages of raw materials.

“It isn’t as easy as exporting coffee,” he said.

The Industry & Minerals Affairs Standing Committee, chaired by Amarech Bakalo (PhD), pressed the Minister on poor results. The Ministry facilitated 681 million dollars in foreign currency to manufacturers last year, but the return on income was half that amount. The textile sector, given top priority, generated 118 million dollars, deemed “encouraging”, while leather exports yielded only 25 million dollars, all considered “disappointing.”

“What we ask is results,” Amarech pressed Melaku. “Show us the result. If the sector is not gaining, we should stop the incentive and shift our investment to the other sector.”

Melaku defended his Ministry’s efforts, pointing out that manufacturing returns are never immediate and that the sector needs supportive policies to thrive. He identified the lack of input and raw materials as fundamental challenges, adding that the problems extend beyond exports to import substitution. Other lawmakers cited past cotton gluts in Gondar, where overproduction forced farmers to burn their crops, and bemoaned the persistent lack of value addition in the manufacturing sector.

Melaku recalled that cotton exports were permitted at the time, but cost and international prices made them unviable. Only three percent of the three million hectares suitable for cotton cultivation is currently utilised. Tax issues similarly impact food processing, though the recent lifting of withholding taxes has offered some relief. Yet, many companies remain closed, waiting for a change in market and policy conditions.

Author: Web Master