Climate Financing Garners Little Attention

Apr 3 , 2023


[ssba-buttons]

Ethiopia has 14 times less climate finance than it requires, according to research conducted by FSD Africa partnering with Climate Policy Initiative (CPI). An average of 1.7 billion dollars, which translates to seven percent of the 25.3 billion dollars Ethiopia's estimated needs were committed towards climate change-related activities three years ago. The figure is less than two percent of the country's GDP. This was disclosed at a knowledge series event hosted by FSD Ethiopia at Sheraton Addis Hotel two weeks ago. About 92pc of the climate finance landscape in Ethiopia is funded by international public financiers of which 70pc is gained through grants while the rest is covered by domestic and international private investors. Based on the findings, the paper made policy and regulatory recommendations for the National Bank of Ethiopia to support the development of capital markets, address forex shortages, establish a favourable collateral policy for smallholder farmers and small and medium-sized enterprises (SMEs), offer favourable lending terms to microfinance institutions, and expand mobile banking services. Established in 2021, FSD Ethiopia is a market facilitator that supports and works with the government, the private sector and civil society organizations in the areas of financial inclusion, access to capital, and climate finance, to address the root causes of financial system failures.


Radar

AMG Holdings Breaks Ground on Industrial Rail Link to Ethio-Djibouti Railway

AMG Holdings has launched construction on a 2.5-kilometer railway connecting its Sheger Industrial Park to the Ethio-Djibouti Railway's Endode Station. The Ethiopian-led project comprises 1.7 Kms of main track and 800 meters of side rail. Chief Project Manager Engineer Nigist Hailu said the line is expected to be completed within six months, facilitating the transport of raw materials and finished goods to Djibouti's port. More than 100 local workers have already joined the project, with addi...


Radar

Ethiopian Deposit Insurance Fund Achieves Full Q1 Collection Target

The Ethiopian Deposit Insurance Fund collected 2.08 billion Br in the first quarter of 2025. This meets 100 percent of the target and represents a 26.83 percent increase compared with the same period last year. The rise in premiums was attributed to higher deposits from member financial institutions. To date, the fund has collected a total of 15.93 billion Br in premiums from member institutions, with 14.51 billion Br coming from regular deposits and 1.42 billion Br from interest-free depo...


Radar

Oromia Bank, Ethiopian Airlines Introduce Fly Now, Pay Later via Milkii Digital App

Oromia Bank's Milkii Digital App, launched on May 3, 2025, has introduced a “Fly Now, Pay Later” service that lets customers book Ethiopian Airlines tickets using digital loans, with payments spread over six months after travel with 16.5 interest rate and allows customers to book flights upto 300,000 Br. Developed in collaboration with Ethiopian Airlines, the platform is part of a broader effort to expand digital finance and simplify access to services. The initiative seeks to enhance conven...