June 22-28, 2025
NBE losses hit 10.5 billion; Gadaa lists on ESX; WFP closes Shire office; Ogaden gas export plans cancelled; Tigray & Eri renew relations, reopen border; Cryptomining consumes 30% of ET's electricity.
Business & Finance
The National Bank of Ethiopia (NBE) issued a June 25 directive officially opening the banking sector to foreign banks & strategic investors.
The 7th edition of the Agrofood and Plastprintpack Expo took place in Addis Ababa from June 19 to 21, attended by 156 exhibitors from 16 countries.
Nigeria’s Qore Technologies is eyeing expansion in Ethiopia after successfully digitizing Akufada Microfinance Institution in Debre Birhan.
The Ethio-Djibouti Railway (EDR) is seeking to purchase a 49% stake in Djibouti’s Damerjog fuel storage facility & construct a 17km railway line to boost efficiency.
Gadaa Bank listed 1.23 million shares on the Ethiopian Securities Exchange (ESX) at ETB 1,000 each, valuing the 2-year-old bank at ~ETB 1.23 billion (~$9 million).
CBE Capital Investment Bank announced plans to increase its capital to ETB 300 million next fiscal year, & Rammis Bank launched its new mobile application.
Ethiopian Reinsurance Share Company appointed a new Board Chairperson & Vice Chairperson & received official ratification from the NBE.
Omo Kuraz #3 Sugar Factory reported labor shortages for sugarcane processing, as locals prioritize their own farms over factory work.
The Real Estate Association said an independent court will soon be established to resolve disputes between developers, homebuyers, & others in the sector.
The Ethiopian Liquid Cargo Transport Association warned that the sector risks bankruptcy, citing tariffs that don’t reflect current economic conditions.
A May 15 ban on assembling fuel-powered cars in favor of a switch to electric vehicles (EVs) has seriously disrupted the local auto assembly industry.
EEU reported the resolution of only 12 of the 104 reported crimes targeting its infrastructure in Addis Ababa & Shaggar city this year, & announced plans to develop a civil code to regulate its relationship with the media
A new workers’ confederation comprising 13 labor associations was officially established on June 21.
Zewdnesh G. Asrat is appealing to the Federal High Court after a lower court dismissed her case against BGI Ethiopia on the grounds that it was time-barred.
Economy & Development
The African Development Bank (AfDB) projected an economic growth of 7.3% in 2025, contrasting with the government’s forecasted 8.9% and the IMF’s 6.5%.
A recent World Bank study found that conflict & instability have severely impacted the economies & food security of 39 nations, including Ethiopia.
The Policy Studies Institute projected a loss of ~$5 million in tariff revenue during the 1st year of implementing the African Continental Free Trade Agreement (AfCFTA), while Ethiopian merchants established ECO Trading to engage in AfCFTA.
The Minister of Finance (MOF) proposed the creation of a MOU template to streamline sovereign debt treatment under the G20 Common Framework.
Ethiopia’s 13 Special Economic Zones secured ~$900 million in new investments this year, with occupancy rates at 89% & local investor participation at 60%.
The NBE Governor attributed the widening gap between the official & parallel forex rates on banks’ operational inefficiencies & hailed the macroeconomic reform as having achieved “historic” progress.
An independent audit of the NBE revealed an ETB 10.5 billion loss in 2024 due to factors including unpaid government loans & additional debts to KSA & UAE.
The Addis Ababa City Administration announced that it will be allocated a subsidy budget from the controversial federal budget to address certain unspecified needs in the city. Learn more about the federal budget here.
A recent study found that Ethiopia loses up to 61% of its gold production (~$6 billion) to informal & illegal trade.
The Ethiopian Energy Outlook 2025 outlines a projected 400% increase in the standard electricity tariff within 3 years. Find the full report here.
The crypto mining & data center industry is projected to consume almost 30% of Ethiopia’s electricity supply in 2025. Meanwhile, only 55% of Ethiopians have access to electricity.
Society & Human Rights
Legal expert Seble Assefa was arrested on June 19 & charged with “disinformation” after publicly criticizing a controversial anti-terrorism financing bill passed last week. The bill has drawn extensive criticism from various stakeholders. Learn more about the bill here.
Dr. Daniel Fentaneh, an active participant in the Ethiopian Health Professionals Movement (EHPM) was detained in Bahir Dar, Amhara region on June 26.
PM Abiy Ahmed accused unnamed “political opportunists” of hijacking health workers’ demands for better pay & working conditions & urged health workers to “make sacrifices” for the time being.
Human Rights Watch (HRW) condemned the violent crackdown on striking health workers in a June 25 statement, citing arbitrary arrests & intimidation. The strike remains unresolved, although some reportedly returned to work on June 16.
A recent survey revealed chronic underfunding, shrinking civic spaces & a worsening regulatory environment for Ethiopian CSOs.
A June 23 traffic accident in Akaki Kality sub-city, Addis Ababa resulted in 9 deaths, including a 3-year-old child.
An Ethiopian Airlines Boeing 787 made a June 20 emergency landing due to mid-air depressurization, with 8 passengers requiring medical assistance.
Governance & Corruption
3 draft bills tabled to Parliament on July 17 propose to (1) restrict soil imports unless for research purposes; (2) mandate government-allocated start-up seed funding; & (3) impose strict penalties for electricity theft by mid-sized industries.
A new Ministry of Revenue (MOR) bill introducing a Minimum Alternative Tax for businesses that have declared bankruptcy is awaiting ratification.
The Ministry of Justice (MOJ) is drafting a proclamation to reduce the budget allocated to detention centers & develop alternative sentencing measures.
A June 12 MOJ study confirmed widespread noncompliance by government offices with established procurement procedures & regulations.
The Ministry of Urban & Instructure (MUID) unveiled a new draft bill in a bid to restore public trust & tighten fiscal discipline.
A Ministry of Labour & Skills (MOLS) bill allowing the entry of foreign-owned outsourcing agencies, imposing hefty deposit thresholds & expanding skilled labor exports has met criticism from local employment agencies.
The Ethiopian Media Authority (EMA) announced on June 18 that foreign-owned social media platforms offering advertising services in Ethiopia will now be taxed.
The Federal Auditor General (FAG) found that 70 institutions made unauthorized purchases worth ETB 404.7 million ($11.6 million) this fiscal year & revealed that FAG staff faced threats & intimidation during their investigations.
FAG confirmed the financial viability of 52 road & 42 irrigation projects, releasing their respective budget allocations for execution.
Public transport reforms in Addis Ababa have introduced a new digital payment system through Siket Bank, reduced the number of transport facilitators to 996, & offered retraining in new trades for the newly unemployed facilitators.
The University of Gondar inaugurated 22 development projects worth ETB 1 billion on July 15, including an ETB 510 million cancer treatment center, and completed preparations to transition into an autonomous institution.
Drivers reported severe fuel shortages in the Amhara, Oromia, and Tigray regions amidst global supply chain disruptions & the removal of government subsidies.
Ethiopia officially cancelled plans to export natural gas from the Ogaden Basin via a pipeline to Djibouti, citing chronic financing & implementation challenges.
Humanitarian Needs
WFP will close its office in Shire, Tigray region on June 30 due to budget constraints & operational restructuring. Shire hosts the region’s largest IDP population.
ICRC & ERCS jointly distributed seeds & fertilizers to conflict- & drought-affected areas in the Amhara, Oromia & Tigray regions.
A forest fire crossing from the Afar region into the Eastern Tigray zone on June 27 damaged over 24 ha of forest & is beyond the capacity of the local administration.
Local leaders at the Tama Community Conservation Area are working on financial self-sufficiency following the abrupt cut of USAID funding.
Transaid is partnering with the American International Health Alliance (AIHA) on a 12-month project to strengthen the pharmaceutical supply chain in Ethiopia.
Politics
A draft bill proposes to prohibit local CSOs from soliciting foreign funds for election-related activities & repeal their right to appeal a temporary suspension.
TPLF Chairman Debretsion G/Michael vowed to “strengthen people-to-people relations” between Tigray & Eritrea & warned against “worsening” setbacks threatening the Pretoria Peace Agreement in a June 22 ceremony.
The Zalambessa border crossing between Tigray & Eritrea was opened informally on June 22, with the ”tacit blessing” of authorities on both sides following efforts by community elders.
TIA President Tadesse Werede announced plans to hold discussions with PM Abiy Ahmed focused on “restoring territorial integrity” and the return of IDPs to their homes in disputed areas of the Western & Southern Tigray zones.
ONLF accused the Somali regional administration of unlawfully detaining 2 of its leaders & holding them “incommunicado” for 3 weeks, demanding their release.
Conflict & Security
The National Rehabilitation Commission (NRC) reported the reintegration of 61,000 ex-combatants from Tigray under the first phase of its DDR program.
Monks at Mount Ziquala monastery in the East Shewa zone, Oromia region accused the OLA of a deadly attack that killed a senior clergy member. OLA has denied involvement.
Gunmen killed at least 16 truck drivers transporting fertilizer & injured & kidnapped several others in a June 23 attack on the Gondar-Metemma road in the West Gondar zone, Amhara region.
3 women and 1 girl were kidnapped by South Sudanese Murle gunmen in a June 25 cross-border attack in the Gambella region.
Geopolitics
US President Trump said the US had “stupidly financed the GERD” & claimed to have brought peace between Ethiopia & Egypt regarding the dam, sparking criticism from Ethiopian officials.
The Trump administration is reportedly considering plans to block citizens from 36 countries, including Ethiopia, from entering the United States.
The Nile Basin Cooperative Framework Agreement (CFA) is establishing a committee to engage with non-signatory states Egypt, Sudan, & the DRC.
Over 35,000 South Sudanese refugees fleeing conflict have arrived in the Gambella region since April 2025. Meanwhile, Ethiopia has increased scholarship slots for South Sudanese students.
Eritrea accused Ethiopia of escalating tensions in a “long-brewing war agenda” in a June 26 press release amidst escalating tensions between the two countries.
Somaliland’s President visited Qatar after a formal invitation, marking the first-ever official visit by a Somaliland head of state to Qatar.