Young innovators took centre stage at the Sheraton Addis last week, captivating an audience that included Prof. Kindeya Gebrehiwot, former president of Mekelle University, and Innovation & Technology Minister Belete Molla. The event, organised through a partnership between Reach for Change and the Mastercard Foundation, showcased fresh ideas and bold thinking from Ethiopia’s emerging tech talent. With prototypes, pitches, and spirited explanations, the gathering celebrated the imagination and drive of a generation reshaping the future through technology.
Author: Digital Editor
Rammis Bank Commences Mobile Application, Card Banking Services
Rammis Bank has launched its mobile banking application and card services as part of its digital expansion drive. The “Rammis Mobile App” was officially introduced during a launch event held on Saturday at the Grand Eliana Hotel.
The app allows users to transfer funds at any time, pay bills, top up mobile airtime, and send money to telebirr wallets for themselves or others. The newly introduced card service enables customers to withdraw cash from any ATM and make payments via Point of Sale (POS) terminals, including those in retail stores.
Bank officials underscored that digital technology is central to Rammis Bank’s operations and said the rollout marks the beginning of broader efforts to enhance access to financial services.
Founded on 4 October 2022, Rammis Bank operates under a fully interest-free banking model. It aims to become a leading provider of Sharia-compliant financial services in East Africa. The bank has a subscribed capital of 2.4 billion Br and a paid-up capital of 747 million Br, contributed by over 8,200 shareholders.
MIDROC Drives Agricultural Shift in Oromia with Tea-Focused Investment Push
MIDROC Investment Group is set to build seven tea-processing factories in Oromia Regional State, part of a major push to boost domestic tea production and expand exports.
CEO Jamal Ahmed said the conglomerate has already mobilised 1,000 farmers cultivating high-grade tea across 4,000 hectares in Jimma and Ilubabor zones. Around 20pc of the harvest is currently being exported, marking early efforts to position Ethiopia as a competitive tea exporter.
Yet much of the region’s potential remains untapped. Over 150,000 farmers are still growing low-return maize, according to Jamal. In partnership with the Oromia Regional Government, MIDROC plans to scale tea cultivation to 30,000 hectares, offering farmers a more profitable alternative.
“The shift to tea could significantly improve household incomes,” Jamal said, noting that MIDROC is providing seedlings, training, and other technical support to smallholders.
The planned factories each within 20Km of cultivation zones are expected to absorb the growing output and streamline value addition. The initiative could bring 40,000 more farmers into Ethiopia’s tea value chain.
Urban Sanitation Oversight Secured with 110M Br Government Contract
The Ministry of Water & Energy has signed a contract valued at over 110 million Br to oversee urban sanitation initiatives under the Water Development Fund’s program.
The agreement was awarded to a consortium comprising SWS and SRL Consultants in partnership with Metaferiya Consulting Firm. The consortium will be responsible for supervising, administering, and providing training for sanitation works in six cities: Ararti, Enjibara, Butajira, Hosanna, Burayu, and Fiche. The scope includes sludge treatment plants, decentralized wastewater systems, and public sanitation facilities.
The contract was signed by State Minister Asfaw Dingamo (PhD) and Giancarlo Chigarini, Managing Director of Metaferiya Consulting. Asfaw emphasized the project’s importance in addressing urban sanitation challenges through enhanced transparency and coordination.
Chigarini highlighted that this marks their first collaboration with the Ministry and assured that the consortium is committed to delivering the project on time and to the highest standards.
Funded by the Government of Italy, the one-year initiative supports broader efforts to improve urban sanitation through global partnerships and structured implementation.
Ethiopia Looks to Ditch Foreign Help, Build Its Own Evaluation System
The lack of a national evaluation system hampers policymaking, leaving Ethiopia reliant on foreign consultants like the IMF and World Bank to assess GDP, says State Minister Tirumar Abate at the Ministry of Planning and Development (MoPD).
Ahead of the 25th African Evaluation Association (AfrEA) annual conference in Addis Ababa, Tirumar noted the country’s limited capacity for conducting evaluations.
“We still depend on external expertise,” she said. “But we have the potential, we must develop it.” To tackle the issue, a policy framework is being drafted to embed evaluation practices into the development agenda.
Dereje Mamo, president of the Ethiopian Evaluation Association, noted that the absence of an evaluation system affects data quality for decision-making. The association has over 300 members, mostly based in Addis Abeba.
AfrEA President Miche Ouedraogo (PhD) emphasised the need for methods rooted in African contexts. A manual titled *Made in Africa Evaluation* will be launched to support this initiative.
Over 300 international participants, including policymakers, evaluators, researchers, and development partners, are expected to attend the AfrEA conference in Addis Abeba.
New Netpreneur Programme Targets Startup Growth in Collaboration with Alibaba
At the launch of the Ethiopia Netpreneur Programme, Innovation & Technology Minister Belete Molla (PhD) reaffirmed the government’s commitment to building a strong digital economy through its ongoing partnership with Alibaba Group, first initiated in 2020. He said the initiative would help strengthen the country’s startup ecosystem.
Bahru Zeinu, president of the Digital Transformation Ethiopia Association (DTEA), said the programme builds on earlier initiatives, including the Global Digital Talent Academy in Addis Abeba and Africa’s first Alibaba Summit. He noted that top-performing participants will travel to China for practical exposure to Alibaba’s e-commerce operations.
The programme forms part of broader efforts to develop digital skills, foster institutional collaboration, and position Ethiopia as a regional hub for innovation and entrepreneurship.
Berhan Bank Launches Fuel Payment App
Berhan Bank Launches Fuel Payment App
Berhan Bank announces the launch of its digital fuel payment system, developed with the Ministry of Transport & Logistics. The ‘Fuel Aggregator’ app advances fuel transaction digitalisation, improving security and process.
The system allows Berhan Bank’s customers to buy fuel from their accounts using a mobile banking password. It removes the need for cash or interbank transfers, enabling direct account payments.
The application links with fuel retailers, letting customers authorise payments through mobile banking password. Berhan Bank’s digital efforts reflect its focus on financial access and service. By embedding banking in daily use, the bank seeks to support users nationwide with a streamlined financial system.
The system, first available at selected fuel stations, will expand to all outlets. The bank also plans to add payment options, including QR codes, to increase access. This move reflects the bank’s focus on essential services for users and retailers.
WEGAGEN GRAZES FRESH GREEN GROUND
Wegagen Capital Investment Bank, one of the first two standalone investment banks, launched operations on June 2, 2025, at the Hilton Addis Abeba Hotel. Chief Executive Officer Brutawit Dawit was joined by Aklilu Wubet (PhD), (middle) president of Wegagen Bank and chairman of the new venture, and Tilahun E. Kassahun (PhD), chief executive of the Ethiopian Securities Exchange (ESX), to mark what they hailed as “the beginning of a new era” in Ethiopia’s capital markets. According to Brutawit, Wegagen Capital addressed a pressing need for specialised services that can unlock capital, spur investment and speed national development. The investment firm plans to offer a range of services, including advisory and underwriting, to government institutions, public enterprises, corporate clients, and high-net-worth individuals.
A Crisis Hidden in Plain Sight
Meseret Mulle rises before dawn in the crowded quarter around Golagol Tower, waking her two sons, aged 13 and eight, in the single “kebele” house they share. At 35, she cleans homes in Gerji, a two-hour walk each way when she cannot spare the fare.
Her monthly wage is about 4,000 birr, or roughly 30 dollars at last week’s exchange rate by the Central Bank, and 450 Br a month of that vanishes on transport, even though she often makes the boys walk beside her and pays only for the taxi ride home. The hidden cost is invisible. Meseret bleeds heavily regularly, sometimes going through four packs of sanitary pads.
“It is a constant worry,” she told Fortune. “How will I manage today? The bleeding never stops. I can’t afford the pads I desperately need.”
A 500 Br stipend from Bole District Wereda 04’s Women & Social Affairs office lasts less than a week. The rest comes from friends, credit at neighbourhood kiosks and rags at night.
Her dilemma sits at the intersection of a quiet but widening “period-poverty” divide, where the price of managing menstruation often eclipses rent, milk or schoolbooks. Only 28pc of Ethiopian women say they have everything required to manage their monthly cycle, according to the Performance Monitoring & Accountability 2020 survey. A quarter use nothing designed for the task, substituting rags, newspaper or even cloth stuffed with ash.
Pads and tampons carry 15pc value-added tax (VAT), and although import duties on finished pads fell to 15pc and the 10pc surtax vanished in 2022, a directive from the Ministry of Finance in June last year granting VAT holidays on basic goods left menstrual products off the list.
The mismatch between tax policy and lived reality is clear to Kaleab Getaneh, co-founder of “Mela for Her,” a social enterprise in Addis Abeba that began selling reusable “MELA Pads” in 2019 and secured full registration by March 2020. The MELA Basic, Premium, and Eco lines are pitched as eco-friendly and long-lasting, but production costs have far outpaced their price tags. Imported fabric now costs seven dollars to 10 dollars a kilogram; plastic snaps cost about seven-tenths of a U.S. cent each; sewing thread is 50 cents a roll.
Local fabric prices have jumped 95pc in the last three years and 60pc in the two years. An increase of roughly 35pc pushed administrative overhead more than 50pc higher; electricity bills have quadrupled; fuel inflation is felt on every truck. However, MELA Basic jumped only to 300 Br from 190 Br in 2001, and MELA Premium climbed to 405 Br from 300 Br, a respective gain of 57.9pc and 35pc.
Mulunesh Weldemariam feels the pressure of the price each payday. The 45-year-old janitor at Haddis Alemayehu Secondary School, on Mickey Leland Street, earns 3,000 Br a month, while her husband works nights as a security guard. Rents in Bole Arabsa, Lemi Kura District, consume a substantial portion of their income. Milk for their year-old son comes next. A single pack of pads costs 75 Br.
“I prioritise my daughter’s needs over my own,” she said of her 17-year-old. “Sometimes, I buy pads for her. However, I use sheets. It’s hard, but what can I do?”
Supply shocks also ripple through the private sector. Ruby, a pad brand launched in mid-2023 by two businesspeople, imports finished goods from Jackson Care Product in Jaipur, India. Ashenafi Zemichael, a shareholder, lists a 35pc import tariff, costlier raw materials, higher shipping rates and compliance fees that drag on every box.
“Despite these difficulties, Ruby remains committed to providing high-quality products at affordable prices,” he told Fortune. “It’s actively working with partners and regulatory bodies to address these challenges effectively.”
A tax-policy chief at the Ministry of Finance, Mulay Weldu, argues that while cotton cannot receive a carve-out for one item, inputs for pad production already pass duty-free. Yet, officials concede that relief rarely reaches consumers.
Bezuwerk Atile, deputy principal of Fitawurari Habte Giyorgis No. 2 Primary School in Addis Ketema District, watches the fallout daily. More than 30 girls rely on the school for pads, but there is no dedicated budget allocated for this purpose. The medical-supplies line buys only a single pack of 10 pieces each month. No less than 10 students come to her office every day.
“We give a few pads from the pack, never the whole pack,” she said. “Female teachers chip in from their own because we don’t want the girls to miss class.”
Policymakers are trying to ease the squeeze, lest they have paid attention to the problem. Raw-material duties for pad factories dropped to 10pc from 30pc, yet shelf prices still climb. According to Zekariyas Desalegn, a gender-based violence specialist at the Ministry of Women & Social Affairs, they plan a letter-of-guarantee system where a manufacturer requests duty-free status for specified inputs. The Ministry verifies the order, and the Finance Ministry authorises duty-free tax imports.
Parallel talks with the Ministry of Trade & Regional Integration (MoTRI) target wholesalers who hoard pads for price spikes. A high-level meeting set for next month could classify pads as urgently needed medical supplies, obliging importers to seek special permits and, potentially, sell through pharmacies or hospitals.
Officials hope a new association of washable-pad makers, backed by a finance, awareness, distribution and manufacturing task force under the Ministry of Women & Social Affairs, can expand domestic output. Currently, the industry is relatively thin. Rising material costs and slim margins have driven several factories out of business, a problem the committee wants to identify and address.
For many advocates, these efforts are only a beginning, not an end.
Urji Biso, a law lecturer at Haramaya University and project coordinator at the Ethiopian Women Human Rights Defenders Network, believes cutting taxes is only one lever.
“The high cost of sanitary pads is a major driver of period poverty among low-income households,” she told Fortune.
Urji links unaffordable pads to school absenteeism, lost wages, poor hygiene and mental strain. Scaling local production, normalising washable pads where clean water is available and teaching reproductive health in classrooms are equally urgent.
“Access to sanitary pads is tied to reproductive health and rights,” she said.
She pointed to neighbouring Kenya, which scrapped the pad taxes and distributes them for free in schools. Subsidies could ensure “all women and girls, regardless of economic status,” can manage their periods safely.
Inside homes like Meseret’s, the policies remain abstract until prices fall. She stocks one or two packs at a time, rationing each pad by the hour. When bleeding intensifies, she doubles up or improvises with strips torn from sheets. Friends quietly hand over extra packs when they can. Storekeepers extend credit they suspect will never be repaid. She has visited clinics, but tests and treatment lie far beyond her means.
Central Bank Moves to Erase Paper Bonds Betting on Digital Overhaul
Investors will soon find that physical paper certificates for government bonds and Central Bank securities are a relic of the past, replaced by electronic records stored securely online. The National Bank of Ethiopia (NBE) recently issued a draft directive introducing digital records, a step toward modernising the country’s financial markets. Known as “dematerialisation,” this electronic system seeks to streamline the issuance, ownership, and transfer of securities.
According to Central Bank officials, the new digital system will boost investors’ confidence, bringing Ethiopia closer to international financial standards.
Governor Mamo Meheretu first announced his intention to introduce publicly available treasury bonds in March this year, broadening investment options domestically. The planned system, termed a Central Securities Depository (CSD), is designed to manage a diverse range of financial instruments, including private and government debt and equity markets, thereby ensuring transparency and stability.
The Ethiopian Investment Holdings (EIH) has invested seven billion Birr into the market.
The current market for treasury bills and bonds is substantial. As of June 2024, the total outstanding T-bills reached 447.8 billion Br, while the total outstanding T-bonds reached 99.2 billion Br. According to State Minister for Finance, Eyob Tekalegn (PhD), the average interest rate for T-bills last month was at 16.5pc, 2.1 percentage points above the inflationary index for April 2025.
The banking industry views the dematerialisation of bonds and T-bills in a positive light.
Tadesse Hatiya, CEO of Sidama Bank, stated that the planned dematerialisation of government securities would strengthen the collateral-based interbank lending.
The Ethiopian Securities Exchange (ESX) is also warming up to trade these securities through its Automated Trading System (ATS), allowing investors to buy and sell government bonds in a secondary market. Treasury bonds, exempt from taxation, offer investors periodic interest payments and return the face value at maturity.
ESX CEO, Tilahun E. Kassahun (PhD), believes that introducing liquidity to the securities market will expand the investor base. The ESX employs a hybrid market structure that combines a central limit order book with negotiation-based trading through requests for quotes, ensuring transparency and an efficient undertaking.
Investment banks have begun positioning themselves prominently within this evolving market. Recently, the Ethiopian Capital Market Authority (ECMA) licensed CBE Capital Investment Bank and Wegagen Capital Investment Bank.
CBE Capital has rapidly advanced its market position, starting operations in March with an initial capital of 100 million Br, anticipated to double upon obtaining a custodial license. It is owned by the state-owned Commercial Bank of Ethiopia (CBE), with Dalol Capital, controlled by Zemedeneh Negatu, holding a 30pc share. A CEO of CBE Capital, Zemedeneh argued that trading treasury bills and bonds through investment banks will mobilise critical resources for economic development.
“Many people save their money in deposits rather than investments,” he said. “It’ll help through the nation’s development.”
According to Zemedeneh, the brokerage fees being charged at 1.6pc remain competitive, facilitating investor engagement.
Financial experts support the digital transition, anticipating it to ease the mobilisation of securities.
“The interest rate has grown above the inflation rate, making investment in the government deficit attractive,” said Mered Fikireyohannes, CEO of Pragma Capital. “However, for sustained attractiveness, the policy rate must rise as mandatory government deficit purchases end.”
He strongly advocates that institutional investors, such as pension funds, actively manage investments through professional advisory channels, cautioning that pension funds require urgent reforms.
“The government should stop considering the pension fund as the left pocket,” he said. “There should be market-aligned pension growth.”
For Ameha Tefera (PhD), a finance expert, engaging interest-free banks with government securities is complex. He pointed out challenges such as revenue taxation, suggesting a tailored approach would be better for integrating these banks within the broader financial system.
With the CSD registry under the NBE, investors will be required to proactively dematerialise existing physical securities, submitting them to CSD members along with the necessary documentation. Failure to comply with these guidelines could result in penalties ranging up to 10pc of the securities’ value for delayed submissions and five percent for misleading information.
Under the new directive, investors will open dedicated securities accounts, providing necessary identification such as national IDs or tax numbers. CSD members will enforce strict Know Your Customer (KYC) standards, verifying details before linking accounts to the system. The process ensures clear ownership rights and protects investors’ interests.
The electronic registry will maintain comprehensive records, issuing unique identifiers such as National Securities Identification Numbers (NSIN) and International Securities Identification Numbers (ISIN) to securities. The fungibility of electronically recorded securities, where similar securities are treated identically, will promote market liquidity and stability.
“The lending ability with T-bills or bonds would be a futuristic prediction by the NBE,” said Tadesse of Sidama Bank. “It would improve our liquidity.”
Investors bear responsibility for verifying the accuracy of their account information and responding promptly to notifications from the NBE. Violations such as unauthorised transfers or errors in dematerialisation processes will trigger immediate corrective action and potential legal repercussions.
When Purpose Meets Penalties, the Taxman Strikes Back
In a fresh blow to the embattled Purpose Black S.C., the Ministry of Revenues has demanded over half a billion Birr in back taxes, penalties, and interest, intensifying the regulatory storm surrounding the company.
The tax authority’s demand covers unpaid withholding and value-added taxes (VAT) accrued during the 2023 and 2024 fiscal years, further complicating an already volatile situation for the company, which was once celebrated for its promise of inclusive market access and community-based wealth building.
Ali Edris, tax investigation coordinator for the Ministry of Revenues, detailed Purpose Black’s liabilities and has begun probing the firm.
Founded by Fisseha Eshetu (MD), Purpose Black opened and operates a grocery chain branded “Ke Geberew,” which is translated as “From the Farmer.” But the company drew widespread attention for its unconventional equity mobilisation method.
Purpose Black had ambitious goals, notably planning to acquire a property from BGI-Ethiopia near Mexico Square in Addis Abeba for five billion Birr, to erect the 115-storey “Ke’Geberew Tower” in four years. The company claims it raised 1.5 billion Br from its initial share sale. A subsequent round, offering shares at 3.5 million Br each, promised similar housing-related benefits. The blended investment and real estate promise intrigued many, fueling public interest.
Yet, with nearly 1,750 buyers waiting and little to show for their investment, unease among shareholders mounted. Concerns among shareholders sharply escalated last August, when newly appointed CEO Ermias Birhanu (PhD) and three senior executives were arrested by the Addis Abeba Police Commission. Authorities accused the executives of involvement in questionable financial practices, sparking investigations by the Ministry of Justice and the Addis Abeba Police Commission.
Under increasing scrutiny, Fisseha left the country, claiming pressure and threats.
Purpose Black’s strategy to market shares bundled with homeownership promises drew the attention of investigators. They alleged fraudulent marketing and financial misuse. Sources close to the inquiry claim senior employees received commissions for registering buyers who believed they were acquiring homes rather than company shares.
Legal proceedings over these controversies remain ongoing.
The latest development is tax claims from the Ministry of Revenue, where auditors are demanding over 31 million Br in unpaid withholding taxes, including penalties and interest. Tax records indicate Purpose Black was required to remit 39 million Br in withholding taxes on goods and services transactions totalling 929 million Br in 2024. However, tax authorities claim that the company paid only 17 million Br, leaving an outstanding 21 million Br unsettled, as well as an additional 10 million Br in penalties and interest.
Purpose Black has contested the withholding tax claims. Yehualashet Tamiru, managing partner at Ethio Alliance Advocates, filed complaints with the Ministry’s Tax Appeal Committee, claiming that withholding taxes on goods procured directly from farmers should be exempted, arguing the company’s social enterprise model.
“The company’s mission has always been to empower farmers and make essential goods more accessible to communities,” Yehualashet told Fortune. “Imposing withholding tax on such transactions undermines the very principle of inclusive market access.”
The Ministry has also placed a hefty demand on the company’s VAT obligations, asserting that Purpose Black owed it over 473.1 million Br, including penalties and interest. The Ministry claims taxable sales of approximately 2.825 billion Br by Purpose Black during the 2023 and 2024 fiscal years, incurring VAT of more than 423 million Br.
Purpose Black’s records disclose expenditures of 578 million Br for generating these sales, with VAT inputs totalling around 86.8 million Br. After offsetting input VAT against the output VAT, the remaining liability was computed at 336 million Br. Deducting prior VAT payments totalling 120.3 million Br, the Ministry concluded the outstanding VAT was 216.6 million Br. With accrued penalties and interest, this figure swelled beyond 473 million Br.
However, Purpose Black strongly contested these findings. According to Yehualashet, the company raised approximately 1.4 billion Br through share sales rather than direct housing sales. He argued that transactions related to share purchases should not incur VAT or interest charges associated with real estate transactions. The lawyer claims that Purpose Black never directly intended to sell apartments but to provide shareholders with potential housing benefits as part of their investment returns.
This position faces scepticism among tax experts. Dawit Kejela, a former auditor at the Ministry of Revenue and currently a private tax advisor, rejected the company’s argument outright.
“There is no tax regime under which share purchases entitle someone to a house,” Dawit told Fortune. “That is a sale, however you package it.”
Nonetheless, another legal perspective emerged from Daniel Fikadu, a legal advisor, who cautioned against premature tax obligations without clear evidence of ownership transfers.
“You can’t tax for income when there is no written agreement transferring ownership,” Daniel argued.
He warned that government enforcement actions without addressing these nuances might scare investors, particularly those who made down payments believing they were buying property. Daniel also raised concerns about the priority of government claims over shareholders’ rights if the tax authority insists on collecting payments immediately.
“If the government collects the taxes, it will be first in line for any proceeds,” he said. “That leaves shareholders in a weaker position to recover their investments.”
Dawit concurred that Purpose Black’s potential exemption from certain taxes might depend heavily on documented proof of transactions. If the company could demonstrate clear transfers from producers through traceable vouchers, the withholding tax obligation might be reconsidered.
“Tax liability depends on traceable and provable transactions,” said Dawit.
Officials of the Ministry of Revenue declined to comment, citing the ongoing investigations.
Horizon Eyes Somali Region for Grand-Scale Agri Investment Push
Horizon Plantations Plc, a subsidiary of MIDROC Investment Group, is launching a major agricultural project in the Somali Regional State, aspiring to transform underutilised land into productive farmland. The company has secured 20,000hct across two zones for an ambitious irrigation farm project. Initial investments are projected at nearly 30 billion Br, with the Development Bank of Ethiopia (DBE), a state policy bank, expected to finance 75pc of the project value.
Located in Sitti and Shebelle zones, near the Shebelle River, the area is known to have extensive groundwater resources, ensuring consistent irrigation capabilities. Financially, around 85pc of the total investment is set aside for infrastructure, about 13pc for pre-production activities, and less than two percent for capital expenditure. To date, Horizon has spent close to 21.8 million Br, leaving nearly 29.7 billion Br yet to be sourced.
DBE officials have declined to comment despite repeated attempts, citing an ongoing loan appraisal.
Foreign currency expenses, dedicated mainly to irrigation systems and cold storage, are projected to cost 5.5 billion Br, accounting for about 18.7pc of the total budget.
The company plans to cultivate oilseeds, including groundnuts, sunflowers and soybeans. Cotton, alongside high-value crops such as alfalfa and fruits like oranges, mangoes, papayas, bananas, and lemons, is included in the company’s target list of produce.
The company eyes to supply Sheger Edible Oil Factory, another subsidiary of MIDROC. Ethiopia currently meets less than five percent of its edible oil demand through domestic production. By securing a steady supply of raw materials from the project, MIDROC Ethiopia’s executives hope to reduce the country’s dependency on imports.
According to Netsanet Gashaye, general manager of Horizon Plantations, their primary objective is to integrate the Somali Regional State into national agricultural supply chains and tap into its considerable agricultural potential. Beyond direct employment, the company’s executives hope that the broader agricultural value chain could indirectly benefit as many as 20,000 locals, creating opportunities for income generation through complementary businesses and services.
“We’re ready to begin as soon as the financing is disbursed,” Nestanet told Fortune.
Once operational, Horizon expects the project to create approximately 1,140 permanent jobs, resulting in an annual wage bill of approximately 220.49 million Br. It also plans to offer additional employee benefit packages.
Horizon anticipates export opportunities, targeting markets in the Middle East and Europe, where demand for oilseeds from Ethiopia and tropical fruits is steadily growing. Domestically, the project also intends to address nutritional gaps and support the livestock sector by increasing the availability of livestock feed and fruits, which are underconsumed compared to global averages.
“The investment will be fully recouped within 10 years,” said Netsanet.
Horizon’s financial projections show a steady increase in profitability. By 2026, the project is expected to generate modest net earnings of about 9.89 million Br. However, profits could surge dramatically to over five billion Birr by 2040, marking a 500-fold increase. Cumulative net cash flows are expected to begin at 421.84 million Br in the first year, growing substantially to 12 billion Br over the next decade. Total assets are projected to quadruple, from approximately 6.8 billion Br in 2025 to 27.2 billion Br by 2040, displaying a strong long-term financial outlook with a projected after-tax return on investment of 13pc.
Horizon Plantations is already a noteworthy player in the agricultural sector. It has been active since acquiring substantial coffee estates, notably Bebeka Coffee Estate, Limmu coffee farms ( Gomma one, Gomma two, Kossa, Sentu, Gummer, and Cheleleki coffee farms), Gojeb Farm, Guba Farm, and the Horizon Coffee Processing & Warehousing Plant, along with a large central coffee processing and storage facility spanning 59,000Sqm. The company manages a close to 22,000hcs coffee farm, producing over 30,000tns of coffee cherries each year. About 4,500tns of the yield is processed into export-quality coffee, with Starbucks in the United States among its principal buyers.
Horizon Plantation employs over 5,200 permanent staff, supplemented by approximately 10,000 seasonal workers, a figure that doubles during harvest seasons.
Beyond coffee, Horizon’s diverse agricultural portfolio includes bananas, pineapples, maise, and spices such as black pepper, turmeric, cinnamon, and cardamom, as well as honey and dairy products. It is developing another 20,000hct oilseed project in Guba, Benishangul-Gumuz Regional State.
However, despite Horizon’s ventures, the Somali Regional State remains underinvested. Recent data reveal that while 18.2 billion Br in new investment was registered, far surpassing the 1.2 billion Br target, only 212 investment licenses, 57pc of what was planned, were issued. Of these, nearly half were in services, a quarter in manufacturing, and only 37 in agriculture. Incentives were granted to 71 investors, primarily in the hotel industry. Two licenses were revoked, and 155 were renewed. The Regional Investment & Industry Bureau reported that import substitution by six firms saved 231 million dollars.
Ahmed Reshid, the Bureau’s head, acknowledged progress. The report, however, pointed to ongoing issues such as fragmented coordination, skill shortages, and regulatory inconsistencies.
Sani Tuke, a business consultant from Saniya Business & Investment Consulting, sees Horizon’s project as a crucial opportunity for regional economic transformation. However, he stated the importance of adequate oversight to prevent capital misuse and ensure projects deliver the intended outcomes.
“This scale of investment can generate tax revenues, reduce unemployment, and generate foreign exchange,” Sani said.
Yet, he cautioned that issues such as high labour costs, delayed compensation, and misaligned investor expectations remain major risks.
Another consultant at Universal Training Business Consultancy, speaking anonymously, underscored additional risks including potential conflicts, weak institutions, environmental stress, and cultural misunderstandings. He cautioned that, without comprehensive long-term planning and genuine community engagement, even well-financed projects risk collapse once external funds are depleted.
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