Economy and Business
80-year-old businesswoman Zewdnesh Getahun has sued BGI Ethiopia for over ETB 8 million, alleging an unlawful seizure of her 27% ownership stake with the brewery. Her lawyers have asked a court to restore her shares, reinstate her role, and compensate her for unpaid dividends. Additionally, she has requested an official verification of the company’s undistributed profits since April 2001 and payment with interest. Zewdnesh claims that she founded BGI together with the major shareholder of Castel Group. However, when Castel Group sold its entire share in BGI to BIH in 1999, Zewdnesh claims her shares were “unlawfully transferred” without her consent, using “fraudulent documents” and under the “guise of political pressure” by the last administration. Sources claim her legal team plans to put an injunction on the sale of BGI’s Addis Ababa property, already under another injunction by Purpose Black until recently.
27 homebuyers dissatisfied with the delivery of unfinished housing from sister companies Noah Real Estate and Adey Abeba Real Estate have sought legal representation and filed a written complaint to the developers, criticizing the absence of basic amenities and services promised in the sales contracts, including water and electricity. A representative of the companies disclosed ongoing efforts to deliver amenities, despite delays forced by a variety of factors. He highlighted plans to dig a water well and ongoing negotiations with electrical contractors.
Local traders in Logia town, Afar region have reported a shortage of the cow milk and injera that used to come from the neighboring Amhara region. Traders in the Amhara region explained that while they had attempted to send the products, their trucks were denied entry at the regional border due to an order by the Ministry of Health who cited “health reasons”. A cholera outbreak was reported in the Bati woreda of the Amhara region a few months ago.
Counterfeit products, from headphones to dangerous medicines, are surfacing in the markets. Weak enforcement, limited budgets, and a desire for affordable products fuels this rise, exposing consumers to health risks and undermining legitimate businesses. A recent eight-month trade report submitted to Parliament highlights the proliferation of smuggled goods, budget constraints, and a flourishing illegal trade network.
Dashen Bank has been recognized as the Best Bank in Micro-Lending at the 2024 Africa Bank 4.0 Summit. The accolade celebrates Dashen’s commitment to inclusive financial services, achieved in collaboration with Ethio-Telecom, EagleLion System Technologies, and Ethiopian Airlines. Meanwhile, Hibret Bank, in collaboration with Mastercard, has announced the launch of the Prepaid Hiber Mastercard services, marking a significant move towards financial digitization in Ethiopia.
Nib Bank is looking to improve customer service and address severe liquidity issues caused by an ETB 2.5 billion high-interest loan from the central bank. 10 high-level executives were terminated in the last month, allegedly as a result of assessments by a 7-member committee. However, one terminated executive has questioned the impartiality of the committee members.
The National Bank of Ethiopia (NBE) recently met with bank executives to discuss proposed reforms as the country prepares to welcome foreign banks, touching on mergers and acquisitions, entry modalities, and corporate governance. NBE regulators presented draft legislation aimed at enhancing the sector’s competitiveness and stability, and detailing how foreign banks can operate in Ethiopia. The Ethiopian Bankers Association representing 21 banks submitted a compilation of ideas and insights to NBE.
During a speech to a delegation of 79 Saudi investors and Chamber of Commerce representatives this week, NBE Governor Mamo Mihretu offered a rare pledge for “preferential treatment” to Saudi Arabian nationals eyeing investments in Ethiopia, acknowledging challenges around converting currency and repatriating profits. He also pitched offshore forex accounts as an option, and reassured investors that Ethiopia’s forex woes would be resolved “very soon”. Meanwhile, the Investment Commissioner has met with members of the European Chamber to offer information and insights on entering Ethiopia’s banking and trade sectors, both of which were opened to foreign investors this year.
The Council of Ministers has unanimously approved a $17.5 billion (close to ETB 1 trillion) national budget for the next fiscal year. Parliament is expected to officially ratify the proposed budget later this month. With a nearly 16% increase from the current fiscal year, the budget was prepared “based on a mid-term macroeconomic and fiscal framework”, while taking into account “current domestic resource mobilization capacity and anticipated influx of funds”. The budget includes regular federal government expenditures, capital and reserve expenditures, support to the states, and support for the implementation of SGDs.
A WFP Market Watch Bulletin published last month reveals that government officials hope to borrow close to $3.5 billion from the IMF as well as a similar figure from the World Bank, amidst ongoing negotiations to restructure the country’s external debt. The bulletin states that the National Bank of Ethiopia (NBE) aims to “achieve an exchange rate that avoids major or protracted disparities in the parallel market and raise the currency reserve from the current 0.7 months to 1 month by June 2024, then to 2 months by June 2025. Read an opinion piece on Ethiopia’s current economic policy here and track live USD to ETB black market prices here.
Politics
Following the expiration of the State of Emergency (SOE) in the Amhara region in June, the Ethiopian Human Rights Commission (EHRC) has called for the “continued release of individuals imprisoned under the SOE”, including prominent politicians. Reports indicate that 19 prisoners detained at the Awash Arba military camp were released last weekend following the completion of “rehabilitation training”. The EHRC called for an investigation into human rights violations committed during the SOE and emphasized the need to resume regular law enforcement procedures, lift movement restrictions, and restore social services. Opposition parties OFC and Enat have criticized the SOE for failing to bring solutions and instead aggravating the ongoing conflict, calling for negotiations. Opposition EZEMA contends that the SOE ensured a certain level of security but acknowledged that it allowed for abuses against civilians, calling for justice. The government has not commented on the SOE expiration.
The National Dialogue Commission (NDC) has reported the successful completion of an agenda gathering consultation meeting in Addis Ababa (AA), attended by various stakeholders including representatives from government, political parties, associations, and institutions. The consultation saw the selection of individuals who will represent AA at the National Dialogue (ND). Similar consultations will be held at the regional level in the coming weeks, with selected agenda items to be included in the ND. Agenda items proposed by AA delegates include AA’s constitutional status and administrative boundary, land ownership, the rule of law, national history and narratives, electoral and governance systems, the independence of state institutions, federal languages, and religion. Find an opinion piece on the ND here.
Opposition EPRP and Enat Parties have announced their withdrawal from the ND process unless certain preconditions are met, such as the participation of key parties including armed groups, the release of political prisoners, and an end to ongoing conflicts through negotiations. Meanwhile, the Orthodox Church (EOTC) has criticized the NDC for excluding it from the agenda gathering and delegate selection process, saying it has established a committee to pursue a formal role for the church within the NDC’s proceedings. The NDC issued a formal statement announcing its openness to engaging the EOTC and emphasizing its commitment to inclusivity.
Opposition Bore Democratic Party operating in Metekel zone, Benishangul region and competing in the upcoming June regional elections has denounced government interference and intimidation that is hindering its election campaign activities, citing unfair practices and the harassment and unlawful arrest of its members by government officials.
Parliament has approved the amended “Electoral, Political Parties Registration, and Electoral Ethics Proclamation”, with 2 votes against and 1 abstaining. The new legal framework stipulates the requirements that political parties must meet to gain legal recognition, and allows political parties accused of operating “violently and illegally” to register under “special conditions”. This paves the way for the re-registration of the TPLF, whose license was previously canceled by the National Election Board of Ethiopia (NEBE) for waging war against the government. TIA president Getachew Reda has applauded the amended bill, describing it as “one step in the right direction in consolidating peace.”
The Amhara-appointed administration in the contested Raya areas of Southern Tigray has accused Tigrayan militias of “fully controlling” lower-level administrative structures in the disputed areas and conducting rights abuses against civilians. The Tigray-appointed administration of the contested areas has denied the accusations. Meanwhile, Raya Alamata city residents have taken to the streets, accusing Tigray forces of 3 civilian killings and 5 injuries within the last two weeks, and calling for their withdrawal.
Governance and Corruption
A new draft amendment co-authored by the Ministries of Justice (MOJ) and Urban & Infrastructure (MOUI) transfers responsibility for right-of-way compensation payments to regional states, ending the current practice where woreda officials conduct evaluations then obtain payment from federal authorities. The draft introduces compensation for psychological & social damages and limits the provision for contesting decisions to courts in the same area as the federal institutions managing the projects. The draft also removes regional courts’ rights to freeze federal funds, mandating the approval of the Federal First Instance Court President to place injunctions on federal accounts.
Lemi National Cement, Habesha Cement, and Kegna Beverage have received a combined ETB 10 billion in loans from the state-owned Development Bank of Ethiopia (DBE), indicating a turnaround favoring the disbursal of credit to private business rather than the customary public projects. In the first 9 months of this fiscal year, DBE disbursed ETB 25 billion (~30% more than planned), approved nearly ETB 45 billion in fresh loans (25% more than planned), and collected ETB 11.7 billion in loan repayments (~8% less than planned). Agricultural credit accounts for 73% of its non-performing loans (NPL).
The state-owned Ethiopian Agricultural Business Corporation (EABC) has registered a gross profit of ETB 1 billion in the first 9 months of this fiscal year despite challenges with forex shortages and late payments. This is over twice the amount registered last fiscal year, and over 10 times the profit registered two years ago. EABC is one of 26 state-owned enterprises placed under the Ethiopian Investment Holding (EIH) as of last year. Meanwhile, a recent FAO report reveals that nearly 13 million people are in need of agricultural assistance in Ethiopia amidst climate shocks, economic instability, conflict, and supply chain issues.
The Ministry of Agriculture has partnered with the Global Network of Digital Agriculture Innovation Hubs to improve advisory services and optimize the use of data and information for the benefit of farming communities and agripreneurs across the country. This initiative aims to create an open knowledge-sharing architecture powered by FarmStack, an open-source data and content-sharing network leveraging APIs, URLs, and CKAN integrations.
The Institute of the Ombudsman has evaluated the “good governance practices” of federal Ministries over the past 10 months and released a report on its findings. The Institute noted low scores by the Ministry of Mines according to its metrics, attributing this to underperformance as well as vagueness and inconsistency in the Ministry’s founding directive. Meanwhile, the Ministries of Finance, Education and Industry have scored 1st to 3rd.
The proposed amendment to the Immigration law has been met with criticism and accusations of contradicting the constitution. An expert explained that the draft allows officials to bar citizens from leaving the country, restricting the right to freedom of movement enshrined in the constitution. Others highlight the importance of ensuring accountability for criminals inside the country.
Local radio broadcasters are protesting against the fees leveraged by Ethiosat, a state-owned communication satellite platform launched in 2017. In a bid to cut down on the estimated $10 million/year previously paid to foreign satellite operators, the Ethiopian Media Authority directed all broadcasters to subscribe to Ethiosat in 2020. Broadcasters launched a petition to reduce Ethiosat’s “unfair” fees. Over 70 Ethiopian channels collectively pay Ethiosat over $6 million/year.
Belayneh Kinde Group has inaugurated a new electric vehicle manufacturing facility in Debre Birhan city, Amhara region with an investment of ETB 3 billion, as part of an ambitious government strategy to turn the country into a leading player on green mobility. With an annual production capacity of over 1,000 electric vehicles, the factory is expected to create 1,000 local jobs, reduce reliance on imported vehicles and help save foreign currency. The plant is capable of assembling minibuses, coaster buses, luxury buses, and dry and liquid cargo trucks.
The Ethiopian Public Universities’ Transition to Autonomy Conference has taken place in Addis Ababa, featuring presentations by Addis Ababa University (AAU)’s leadership about the progress made in developing key framework policy documents for the successful transition to autonomy, as well as insights and lessons learned from the process offered by the Technical Expert Advisory and AAU teams. Learn more about the transition in an interview here.
Human Rights
EHRC has requested additional time to conduct a court-ordered investigation into human rights violations committed by the Awash Arba and Addis Ababa Federal Police against Yohannes Bwayalew and co-defendants under his file, all of whom were arrested under the SOE which expired this week. The defendants filed their written objections to the court, and the hearing was adjourned to June 19. Meanwhile, the court has heard witnesses in the case against Former State Minister of Peace Taye Dendea, accused of “supporting anti-peace forces” and the “illegal possession of firearms.” The court adjourned the hearing to the end of the month.
Former EZEMA chairman Yeshiwas Assefa and former opposition politician Zelele Tsegaselassie were arrested within the last week. Both were organizers of a November 2023 peaceful rally in Addis Ababa, which was banned and saw the arrest of many of its organizers. Sources claim that 4 of the detained organizers have been moved from Awash Arba to a prison in Addis Ababa. Yeshiwas, who was detained without a court order for circulating social media posts that “incite violence” and “support the Fano militia”, has been released after 1 week in custody without a court appearance.
20 suspects, including 3 artists, who were accused of “attempting to change the constitutional order through armed struggle” have appeared in court for the first time after over 2 months in custody. Prosecutors proceeded to request additional time for investigation and were granted 13 days. The Ethiopian Center for Human Rights Defenders has called for an end to the persecution, harassment and detention of artists and journalists.
The Ethiopian Human Rights Council (EHRCO) has accused government forces of forcing transporters on long-distance roads to pay illegal fees in Amhara and Oromia regions and expressed concern about ongoing abductions, calling on the government to respect freedom of movement, stop rights abuses, and bring perpetrators to justice. EHRCO also accused officials of conducting house-to-house searches outside work hours, often without court warrants.
A recent report by the Newlines Institute has found serious breaches of international law during the Tigray war, accusing Ethiopia and its military allies of violating the Genocide Convention by targeting civilians with mass killings and starvation tactics. The study has called on governments to take action, including through criminal investigations at the Hague. Despite a humanitarian crisis in the region due to the war and subsequent drought, Tigray’s capital Mekelle is slowly crawling back to normalcy, as are the region’s football players.
An evaluation of the inter-agency humanitarian response during the Tigray war has described the UN-led collective aid effort as a “systemic failure” that “was not underpinned by humanitarian principles”. The report highlighted a lack of joint strategy and planning among UN agencies and provided recommendations to improve leadership, inter-agency coordination, and the accuracy and relevance of humanitarian data. Find the full evaluation report here.
The Mixed Migration Center (MMC) has released a new report confirming that Saudi Arabia continues to indiscriminately fire at Ethiopian and Yemeni migrants attempting to cross its border in an attempt to deter irregular migration. Human Rights Watch previously labeled the killings as possible crimes against humanity, while MMC says that international inaction continues to enable Saudi Arabia to commit violations with impunity. Meanwhile, the Ethiopian Embassy in Djibouti has announced the repatriation of 172 Ethiopian migrants.
11,000 IDPs who fled armed attacks in Gambella region nearly a month ago highlighted that they still have not received any assistance and are currently without food or shelter. The Gambella Regional Disaster Management Bureau said IDPs will receive aid “soon”. Meanwhile, zonal officials have announced the return of over 45,000 IDPs who had fled armed attacks in Horro Guduru Wollega zone, Oromia region over the last 3 years. However, returnees have lamented enduring insecurity and shortages of humanitarian assistance and medicine.
The Ethiopian Orthodox Church (EOTC) has rejected same sex marriage as "unacceptable in natural law", "totally prohibited in the Bible”, and “illegal in civil law”, saying it endangers personal identity, family life and social fabrics. The church has also vowed not to tolerate the clergy who preach incitement to violence. Last week, a Federal Court sentenced a top Orthodox archbishop in Australia to six years in absentia, for "inciting violence" among the church's congregation in Texas, United States, last year.
Japan has pledged $6.7 million to support Ethiopia’s Disarmament, Demobilization and Reintegration (DDR) program. Administered by the UNDP, the funds will be used to support "the procurement of equipment, and training to improve the operational capacity of the National Rehabilitation Commission (NRC) to demobilize ex-combatants from camps" and rehabilitate health facilities in the war-struck Tigray region.
Conflict and Security
Residents and officials of Addi Arkay woreda in North Gondar zone, Amhara region have reported a large-scale attack by “hundreds” of irregular “Tigray militants”, resulting in 15 deaths, looting of cattle, and the burning of several houses. The woreda borders contested areas in Western Tigray, currently under Amhara administration. The Tigray regional government has denied the reports, saying there is no military movement toward the area and highlighting the difficulties in even reaching the woreda due to its “vast distance” from areas currently under Tigrayan control. Meanwhile, residents have called for solutions to the security challenges that are emerging throughout the Tigray region, especially kidnappings. Opposition Arena party has claimed "anarchy prevails" in the region, especially in gold mining.
The Amhara region has seen a string of high-profile attacks targeting government officials this week. The head of Efratana Gidem woreda in the North Shewa zone was killed in an attack by “extremist militants” while at his residence. Days later, the head of Kowet woreda in the same zone was fatally shot by “extremists” while pregnant. North Shewa zone has seen extensive armed clashes involving government forces, Fano militias and the OLA. In Woldiya town, North Wollo zone, “unidentified elements” carried out 3 grenade attacks targeting the zonal administration office and the residences of the Zonal Head and the Deputy Mayor, damaging properties. In Chagni town, Awi zone, residents report 5 deaths due to gunfire between federal forces and armed elements of the opposition Agew National Shengo party. The party, who confirmed the victims as its supporters but stated they were unarmed, said the conflict stemmed from a dispute over ethnic ownership of the town and escalated following the intervention of security forces. Meanwhile, transportation services between Bahir Dar and major cities in the Gondar zones have been suspended following a transport ban allegedly called by Fano militias. In other news, the funerals of Fano members killed in an Addis Ababa shootout with government forces 2 months ago has taken place in Gondar city. They could not be buried as their bodies remain in the hands of government forces.
Woreda officials in the Kore zone, South region have announced the arrest of 12 individuals suspected of playing a part in abductions targeting female students. The zone has witnessed a significant increase in kidnappings for marriage (ጠለፋ) in recent months, leaving many parents too fearful to send their daughters to school. Meanwhile, North and West Gojjam zones of the Amhara region have announced that 6th and 8th grade students in the zones will be unable to sit for their final exams this year due to ongoing conflict. Read more here about conflict and its impact on Ethiopian youth.
Mulu Wongel church members who took to the streets en masse for a religious sermon in Metu town, Illubabor zone of the Oromia region have reported beatings and arrests by local security forces, resulting in injuries to over 20 people. Meanwhile, active conflict between government forces and the OLA continues across the region amidst a new OLA offensive, with residents reporting civilian deaths in West Wollega zone and extensive displacement in Horro Guduru zone. Government forces have been accused of human rights abuses, including extrajudicial killings, beatings, unlawful arrests and abductions, looting, and forced conscription in North, East and West Shewa zones. OLA reports successful operations in the Borena, East Arsi and West Guji zones, as well as in Oromia special zone of the Amhara region. Regional president Shimeles Abdisa recently expressed his willingness to resolve the ongoing conflict through dialogue, saying the government is ready to sit for negotiations. Meanwhile, reports allege significant injuries to 9 Oromo students at Gambella university following a riot by Nuer students.
Geopolitics
Sudanese organizations released a statement calling on Prime Minister Abiy Ahmed to rescue thousands of refugees stranded in forests in Ethiopia after fleeing their camps due to armed attacks. The Sudanese organizations urged humanitarian organizations to provide support, highlighting the dire humanitarian conditions faced by the refugees amidst severe shortages of food and medicine. The Ethiopian Refugees and Returnees Service (RSS) recently announced ongoing efforts to relocate Sudanese refugees, saying site selection has already been completed. In other news, residents report that the Sudanese Armed Forces (SAF) are still in control of several areas in the disputed Al Fashaga triangle despite the ongoing Sudanese civil war.
Somalia recently announced that it will expel all Ethiopian troops stationed in the country by the end of 2024 unless Ethiopia scraps a controversial port deal with the breakaway region of Somaliland. At least 3,000 Ethiopian troops are stationed in-country as part of an AU peacekeeping mission (ATMIS) fighting al-Shabaab, while an estimated 5,000 - 7,000 are stationed in several regions under a bilateral agreement. Nearby countries and regional officials say this could further destabilize Somalia as local forces would be unable to fill the security vacuum, likely empowering al-Shabaab. Southwest and Jubaland regions have therefore opposed the decision. The US Secretary of State spoke with Somalia’s President about the decision, warning it could lead to further instability in the region, and emphasizing the importance of easing Ethiopia-Somalia tensions.
The Embassy of Eritrea to the EU has expressed deep disappointment at the EU’s “incessant and unwarranted acts of hostility” against Eritrea. In a statement, the Embassy criticized EU’s “audacity to renew its adversarial stance invoking flawed legal tools and trumped-up charges” instead of reviewing the March 2021 travel and asset freeze sanctions imposed on Eritrean officials for human rights violations. The Embassy highlighted Eritrea’s successive reports on Universal Public Review (UPR) to the Human Rights Council in Geneva, where the country was commended for its progress by many member countries.
The President of the African Development Bank (AfDB) has emphasized the impact of insecurity on economic growth, expressing concern about proliferating insecurity in Africa. He made these remarks during a discussion about Kenyan President Ruto’s recent proposal to establish an African credit rating agency. This proposal came in response to criticisms of bias leveled against existing global rating agencies, who have been accused of “exaggerating” the risk factors of African economies. Public concern about the economy in African countries has surged in recent years, as evidenced by a recent Afrobarometer survey. Kenyans are protesting harsh new taxes while 34% inflation in Nigeria has triggered a nationwide strike and economic mismanagement in South Africa has led to the ruling ANC’s recent election setback.
Ethiopia and Tanzania have secured billions of dollars in loans from South Korea (SK), as part of broader deals that will give SK access to crucial mineral resources and a vast African export market. Tanzania will borrow $2.5 billion over the next 5 years while Ethiopia has signed a $1 billion financing deal over 4 years for infrastructure, science and technology, health, and urban development. This was announced during the SK-Africa summit, where SK hosted over 30 heads of state. The Embassy of Ethiopia in Seoul further claimed that SK’s Economy and Finance Ministry has expressed interest in extending additional financial assistance to Ethiopia.
The “Chinese Bridge” language competition, an annual worldwide event centered around the Chinese language and performances, has taken place in Addis Ababa, with 11 Ethiopian students competing. Winners will compete in a final round, taking place in China this summer. Meanwhile, a recent documentary has explored the impacts of expanding Chinese influence in Ethiopia, reviewed here. Learn more in an interview with the directors here.