Capital (Ethiopia)
Debt risk expected to moderately decline over next two years
Minister of Finance Ahmed Shide announced that ongoing debt rescheduling negotiations are expected to lower the nation’s debt risk to a moderate level within the next two years. This announcement comes as the diaspora community shows interest in...
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Traders protest QR code receipt enforcement amid shortage
Traders across Ethiopia are voicing strong discontent over the Ministry of Revenue’s (MOR) recent decision to strictly enforce the use of sales receipts featuring quick response (QR) codes as of January 9, 2026, despite widespread shortages of the new...
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Ministry of Finance reports surging demand for long-term treasury bills
In its latest auction calendar for Treasury bills (T-bills), the Ministry of Finance (MOF) has reported a demand for longer-term instruments that is more than double that of the previous quarter. The overall demand for T-bills in both past and upcoming...
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Nib Insurance in 144 million birr legal row with Ministry of Revenue
Nib Insurance Company S.C. (NIC) is embroiled in a high-profile legal battle worth more than Birr 144.5 million with the Ministry of Revenue (MOR) over disputed tax claims related to reinvested dividends and retroactive value-added tax (VAT). The...
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Ethiopia, Djibouti hold high-level talks to resolve logistics constraints
A key high-level exchange saw an eminent Ethiopian delegation, led by Prosperity Party Deputy Head Adem Farah, hold discussions with Djiboutian President Ismail Omar Guelleh to navigate emerging circumstances in the strategically vital logistics...
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EDR–CCECC pact powers Ethiopia’s push into mega infrastructure
Ethiopia’s Ethio-djibouti Railway Share Company (EDR) is embarking on a transformative new chapter, using a landmark technical partnership with Chinese industrial titan CCECC to evolve from a railway operator into a comprehensive infrastructure...
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NBE issues ultimatum to exporters over unrepatriated foreign exchange
The National Bank of Ethiopia (NBE) has issued an ultimatum to exporters who have failed to repatriate foreign exchange earnings from commodity trade. Analysts suggest that some exporters have employed various tactics to evade this requirement, driven...
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ECX mandates centralized payments for oilseeds, pulses exports
In a pivotal move to enhance transparency and safeguard foreign exchange earnings, the Ministry of Trade and Regional Integration (MOTRI) has issued Directive No. 1115/2025, mandating that all exporter payments for oilseeds and pulses route exclusively...
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EIH to launch $85 Million digital tax stamp project
Ethiopian Investment Holdings (EIH) has announced the launch of a groundbreaking $85 million digital and fiscal stamp project set to be operational within this fiscal year. Implemented through a partnership with Toppan Ethiopia, the project aims to...
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COMESA court of justice rules in favor of Ethiopian lawyer, invalidates judge appointment
In a landmark ruling with significant ramifications, the Common Market for Eastern and Southern Africa (COMESA) Court of Justice has ruled in favor of a legal challenge presented by prominent Ethiopian lawyer, identifying errors in the appointment of a...
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EIH negotiates transfer of ERC'S foreign debt to sovereign debt
Ethiopian Investment Holdings (EIH), the country's sovereign wealth fund, has announced negotiations to transfer the substantial foreign debt of the Ethiopian Railways Corporation (ERC) to the government's sovereign debt. This move aims to revitalize...
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Tax relief on animal feed expected to offer lifeline for poultry, dairy industries
Ethiopian poultry and dairy producers are anxiously awaiting a government decision to lift taxes on animal feed, a move expected to be finalized by the end of October and seen as vital to curbing surging prices in the livestock sector. The anticipated...
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Tax investigations target ICS, Sandford schools for alleged irregularities
Authorities have initiated a comprehensive financial crackdown on two of Addis Ababa's most notable international schools, launching simultaneous investigations into the International Community School (ICS) and Sandford International School over...
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Finance Ministry halts tax decision affecting juice manufacturers
The Ministry of Finance (MOF) has suspended a tax authority decision that would have required fruit drink manufacturers to settle years of unpaid excise tax, stemming from a regulation enacted six years ago. This issue emerged two years ago when the...
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Upcoming MPC meeting expected to lift credit growth cap
The National Bank of Ethiopia’s (NBE) Monetary Policy Committee (MPC) is scheduled to meet early this week, with high expectations for a signi昀椀cant decision that could impact the economy. The MPC was established following an amendment to the NBE...
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Taxpayer frustration mounts over retroactive tax law confusion
Taxpayers are expressing significant frustration over confusion regarding their tax obligations for the previous budget year. They believe the tax authority is unfairly requiring them to apply a newly enacted law retroactively, leading to a climate of...
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Investor demand for Treasury Bills surges
Investor demand for Ethiopian Treasury bills (T-bills) soared to 159% of the amount offered, a surge the Ministry of Finance (MOF) attributes to improved primary market conditions following the introduction of a three-month T-bill issuance...
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Gov’t reject calls to separate airports from national carrier
The Ethiopian government has officially rejected private airline operators' calls to separate the Ethiopian Airports Enterprise (EAE) from the Ethiopian Airlines Group (EAG), affirming the continued integration of the two entities despite longstanding...
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Regulatory hurdles delay distribution of approved GM Maize
A dispute has emerged between a regulatory body and a national research institute regarding the conditions for releasing recently approved genetically modified (GM) maize, as seed companies begin planting. Ethiopia made a historic decision in March to...
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State enterprises granted special exemptions under new procurement directive
In a significant move to streamline Ethiopia’s public finance management, the Ministry of Finance has issued Directive No. 1070/2025, establishing a uniform legal framework for procurement across all federal government enterprises. The directive,...
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Amana Insurance to become Ethiopia’s first fully Interest-free Insurance provider
Amana Insurance SC is set to launch soon, marking a historic milestone in Ethiopia’s financial sector as the country’s first insurance company operating entirely under Sharia principles. The company will adopt the Islamic insurance model known as...
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High tax rates discourage formalization in Ethiopia
High effective tax rates on low-income earners in Ethiopia’s personal income tax (PIT) system may discourage formalization, a new report reveals. Ethiopia’s PIT system imposes high effective tax rates on low-income earners, risking the discouragement...
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No more paperwork, just seamless Banking
Bank of Abyssinia (BOA) has officially launched fully paperless banking across all branches nationwide—becoming the first bank in Ethiopia to eliminate paper entirely from branch operations. This marks a defining shift in the way Ethiopians bank: fast,...
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Tax burden on bonds and shares remains high despite calls for reform
Despite strong advocacy from various experts and the Ethiopian Capital Market Authority (ECMA) to reduce income tax deductions on bonds and shares to revitalize the securities market, the new income tax proclamation remains largely unchanged, offering...
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EDIF advocates for VAT exemption to enhance financial protection for depositors
The Ethiopia Deposit Insurance Fund (EDIF) has reported a notable increase in premium collections, exceeding projections as financial institutions enhance their deposit mobilization efforts. Following last week’s proposed income tax amendment draft...
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IMF urges closer monitoring of banks' net open positions
The International Monetary Fund (IMF) is calling for closer monitoring of banks' net open positions (NOP) as Ethiopia advances its economic reforms. In its latest statement, the IMF advised Ethiopian authorities to carefully oversee banks' NOP, a...
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Three local banks to finance ESL'S vessel procurement
Ethiopian Shipping and Logistics (ESL) has opened a bid for the procurement of new Ultramax vessels and is inviting shipbrokers to help purchase four second-hand mid-sized vessels for various purposes. Three local banks—the Commercial Bank of Ethiopia,...
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NBE to maintain tight monetary policy as Treasury bond directive ends
The National Bank of Ethiopia (NBE) has reaffirmed its commitment to employing various monetary policy tools to maintain a tight monetary stance, despite plans to phase out some previous instruments. The Monetary Policy Committee (MPC) is scheduled to...
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EDR SECURES PATH FORWARD AMID DISPUTE WITH DPFZA
Following last week's tense situation, the Ethio-djibouti Railway (EDR) and the Djibouti Ports and Free Zones Authority (DPFZA) have resolved their dispute regarding EDR'S request for a forwarding license. The railway company aimed to secure at least...
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Afreximbank allocates USD 1 Billion for Ethiopian businesses and financial institutions
The African Export-import Bank (Afreximbank) is encouraging Ethiopian businesses and financial institutions to take advantage of the USD 1 billion allocated for the country over the next year. This initiative coincides with Ethiopia's steps toward...
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Ethiopian lawyer’s legal challenge halts COMESA judge appointments
The Common Market for Eastern and Southern Africa (COMESA), Africa’s largest economic community, is currently embroiled in a legal dispute after its Court of Justice (CCJ) dismissed four preliminary objections raised by several defendants, including...
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High debt, inflation, governance challenges threaten economic stability, new report warns
Ethiopia’s economy is grappling with significant challenges including soaring public debt, persistent inflation, and weakening governance, according to the latest comprehensive report by the Ethiopian Economic Association (EEA). The “Report on the...
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Parliament calls for investigation into former METEC leaders over massive financial losses
The Government Expenditure Administration and Control Standing Committee has urged the Ministry of Justice to launch a thorough investigation into former leaders of the Metals and Engineering Corporation (METEC), following revelations of significant...
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ESL, banks aim for resolution on service charges
Ethiopian Shipping and Logistics (ESL) is currently in discussions with financial institutions to negotiate a mutually beneficial agreement regarding bank service charges, which ESL has previously criticized as excessively high. As a state-owned...
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CBE set to receive first tranche of WB funding
The Commercial Bank of Ethiopia (CBE) is set to receive the first tranche of a longawaited financial injection from the World Bank as early as next week, with this initial disbursement expected to cover more than half of the total allocated...
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Bankers criticize lack of transparency in Central Bank’s Forex auctions
Bankers are expressing frustration over the lack of transparency in the foreign exchange (forex) auctions regularly conducted by the National Bank of Ethiopia (NBE). They argue that the procedures and results of these auctions are not clearly...
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ESL, banks seek resolution over service fees
Financial institutions have raised concerns regarding Ethiopian Shipping and Logistics (ESL)'S recent warning, which they believe unfairly categorizes all partner banks together. They have requested negotiations to find an amicable resolution. ESL,...
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Forex auctions face transparency concerns amid market volatility
The National Bank of Ethiopia (NBE) has expressed concerns regarding the misuse of a foreign exchange (forex) auction held a month ago by commercial banks. The NBE accused certain banks of acquiring forex only to resell it at inflated rates in the...
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BANKS ACCUSED OF MANIPULATING FOREIGN CURRENCY RATES
The National Bank of Ethiopia (NBE) has emphasized the need for close monitoring of the foreign exchange market, as experts accuse banks of engaging in speculative foreign currency purchases, exacerbating the disparity between buying and selling...
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ESL issues ultimatum to banks over service charges
Ethiopian Shipping and Logistics (ESL), one of the nation’s leading foreign exchange earners, has issued a final ultimatum to local banks, demanding a reduction in service charges for foreign currency transactions. In a letter dated February 14, ESL...
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ESL retains exclusive cargo management rights
Ethiopian Shipping and Logistics (ESL) has been granted exclusive rights to manage cargo from key international trade routes. The Ethiopian Maritime Authority (EMA) has issued a long-anticipated notice to industry stakeholders, marking a significant...
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Ethio-djibouti Railway secures Multimodal Transport License
The Ethio-djibouti Railway Standard Gauge Share Company (EDR) has successfully obtained a Multimodal Transport Operation (MTO) license, marking its official entry into the competitive logistics sector. This achievement makes EDR the fifth entity to...
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ETHIOPIA APPROVES GMO MAIZE FOR COMMERCIAL PRODUCTION
In a historic move, Ethiopia has approved the commercial release of insect protected maize, following several years of rigorous efforts. Alongside transgenic maize, the government has also authorized the commercialization of genetically modified (GM)...
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EIH permits three operators to enter multimodal transport sector
The Ethiopian Investment Holdings (EIH), the country’s sovereign wealth fund, has announced its commitment to fostering competition in the multimodal transport sector by permitting new operators to enter the market alongside the state-owned...
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ETHIOPIA TO PERMIT FOREIGN BANKS FROM FRIENDLY COUNTRIES
Ethiopia has announced plans to permit foreign banks from friendly nations to invest in its financial sector, representing a significant shift in the country's banking policy. However, the highly anticipated bill, revised two months ago, has yet to be...
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ESL PLANS MAJOR CAPITAL INCREASE TO 150 BILLION BIRR
The completion of overdue audit reports has enabled Ethiopian Shipping and Logistics (ESL), one of the most profitable public companies, to pursue a significant capital increase to 150 billion birr. According to information obtained by Capital from...
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ETHIOPIA TO LIFT PRIVATE SECTOR CREDIT CAP BY SEPTEMBER 2025
In a significant policy shift, the Ethiopian government plans to eliminate the cap on private sector credit growth by the end of September 2025. This initiative is part of broader reforms designed to create a more market-oriented financial system,...
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NEW ASSET RECOVERY LAW SPARKS PANIC IN REAL ESTATE SECTOR, FUELS BLACK MARKET ACTIVITY
Real estate businesses report that the recently approved asset recovery proclamation law, which grants authorities to investigate cases dating back 10 years, is significantly affecting their operations. Experts suggest that this new law may exacerbate...
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IMF completes second review of extended credit facility, unlocks $248 million
The International Monetary Fund (IMF) Executive Board has completed the second review of Ethiopia's Extended Credit Facility (ECF), enabling the country to access approximately $248 million to support its balance of payments needs. This decision marks...
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Marsa Maroc to Invest in Djibouti's Petroleum Port
The primary port operator in Morocco, Marsa Maroc, is set to make a significant investment in the petroleum port in Djibouti, where Ethiopia has expressed interest in acquiring a stake. Marsa Maroc is expanding its presence on the African continent by...
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ETHIOPIA'S PUBLIC SECTOR DEBT SURPASSES 50% OF GDP
In a startling development that has sent shockwaves through Ethiopia's economic landscape, public sector debt has surged to more than half of the country's Gross Domestic Product (GDP) following a fresh in昀氀ux of funding in the 昀椀rst quarter of the...
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NBE SET TO REVISE POLICY RATE IN EARLY 2025
Early in the upcoming year, the National Bank of Ethiopia (NBE) is expected to revise the policy rate, commonly known as the National Bank Rate (NBR). The initial policy rate, set at 15 percent, was established at the beginning of the fiscal year. The...
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NBE opens banking sector to foreign competitors while supporting domestic institutions
The National Bank of Ethiopia (NBE) has indicated that while the banking sector is reopening to international competitors, domestic banks will maintain a dominant position. On Tuesday, December 17, 2024, Parliament made a significant decision to limit...
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MAHAMOUD ALI YOUSSOUF SEEKS AUC LEADERSHIP
A senior diplomat and the foreign minister of Djibouti has stated that he is qualified to serve as the next head of the African Union Commission, provided certain conditions are met. The continental organization is set to elect the Commission's top...
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GOVERNMENT PURSUES PRIVATE SECTOR FINANCING TO AVOID DIRECT ADVANCES
The government aims to enhance financing options that attract private sector participation beyond traditional banking institutions, despite its commitment to avoid using direct advances (DA) to address the budget deficit. In an effort to access the DA,...
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FOREX MARKET FACES NEW RISKS FOLLOWING REFORMS
The recent shift to a market-driven foreign exchange (FX) system in Ethiopia has sparked both opportunities and risks for the banking sector, according to industry experts. While the flow of forex from outside increased following macroeconomic reforms,...
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NBE WARNS FINANCIAL INSTITUTIONS AGAINST ILLICIT FOREX ACTIVITIES
The National Bank of Ethiopia (NBE), the regulatory authority for the financial industry, has issued a warning to financial institutions and businesses involved in illicit activities related to the foreign exchange market. NBE supervisors have...
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NBE TO UNDERGO MAJOR REORGANIZATION AHEAD OF BANKING LIBERALIZATION
To ensure the stability of the financial system as it moves toward liberalization, the central bank, expected to receive the new establishment proclamation at the beginning of the New Year, will undergo institutional reorganization, including the...
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Kenya saves $10 Million annually from Ethiopian electricity imports
Kenya saved USD 10 million in a single year due to electricity supplies from neighboring Ethiopia. Since late 2022, Kenya has been tapping into 200MW of renewable energy through a 1,045 km High Voltage Direct Current (HVDC) line connecting Suswa,...
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Ahadu Bank to discuss . . .
Ahadu Bank would be the first to bring up the merger and acquisition topic at the general assembly, which is scheduled for next week. According to the National Bank of Ethiopia (NBE), the merger case would be resolved by legislation. Despite the...
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Experts warn regulations are hindering Ethiopia's economic growth
Experts have raised concerns that existing laws and regulations in Ethiopia are obstructing the country's pursuit of economic growth. Among the regulations cited are those governing electric motorcycle riders and owners. In a bold move, the Ethiopian...
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ETHIOPIA OPTIMISTIC ABOUT FUNDING FOR DEVELOPMENT PROJECTS FOLLOWING CFA ADOPTION
Ethiopia conveyed its expectation that funding for development projects reliant on the Abay (Nile) River basin would become available following the adoption of the Cooperative Framework Agreement (CFA), which made it possible for the Nile River Basin...
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HEINEKEN ACQUIRES KOMARI BEVERAGE
The well-known worldwide brewer Heineken has reached an agreement to acquire the ownership of the relatively new but well-liked spirits brand Arada, produced by Komari Beverage, Capital has learned. According to sources, the firm that was founded by...
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Concerns rise over franco-valuta policy as illicit forex market flourishes
It has been claimed that the Franco-valuta openness policy, which was implemented in conjunction with the macroeconomic reform and liberalization of the FX market, has given illegal actors a way to channel foreign exchange through their illicit scheme....
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Chinese investors shift focus to neighboring countries amid challenges in Ethiopia
Chinese investors, who have significantly contributed to Ethiopia's economy with investments totaling approximately $5 billion across more than 2,000 projects, are increasingly relocating their operations to neighboring countries such as Kenya, Uganda,...
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AFRICA HALL TO REOPEN AFTER $57 MILLION REFURBISHMENT PROJECT
It is anticipated that the historical African Hall, one of Addis Ababa's landmarks, will be reopened in October after a USD 57 million refurbishment project. The United Nations Economic Commission for Africa (UNECA) has had its permanent offices in...
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NBE announces 100 billion birr loan expansion to boost forex generation
The National Bank of Ethiopia (NBE) says that banks can take out a total of 100 billion birr under the loan expansion ceiling in order to increase the revenue of hard currency. Zero remittance fees were advised by NBE. In an effort to increase foreign...
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