June 7-14, 2025
Fed proposes constitutional amendment; ETH controls 35% of African cargo; New armed group in Tigray; M-Pox in Amhara; Coup attempt in Sidama; Arrests in AA; Egypt & KSA to build "Moses Bridge".
Business & Finance
The African Export-Import Bank (Afreximbank) reportedly facilitated $32 billion in international trade payments for Ethiopian businesses in 2024, with another $1 billion allocated for next year.
The African Finance Corporation (AFC) reported that Ethiopian Airlines (ETH) controls 35% of Africa’s cargo market in a new report. Meanwhile, blocked airline revenues in Nigeria, Ethiopia & Egypt remain a major concern.
ETH & Etihad Airways launched a strategic codeshare partnership on June 9, boosting connectivity between Africa, Asia, Australia, and the Middle East.
India’s Jaquar Group inaugurated its flagship showroom in Addis Ababa this week.
Kenya Commercial Bank (KCB) is set to become the first foreign bank to join Ethiopia’s financial sector in over a century.
Wegagen Capital Investment Bank launched operations on June 2. Learn more about Wegagen in this interview & this podcast episode.
Interest-free banks reported ETB 332.3 billion in deposits & extended ETB 151 billion in financing, reflecting a 58% increase compared to the previous year.
MIDROC’s Horizon Plantations Plc is launching an ETB 30 billion irrigation farm project in the Somali region, with 75% to be financed by the DBE.
Kegna Beverages launched Kegna Beer with the support of 5,000+ shareholders & an investment of ETB 22 billion, 32% of which was financed by the DBE.
Purpose Black S.C. has been ordered to pay over ETB 500 million in back taxes, penalties & interest to the Ministry of Revenue (MOR).
Holland Dairy reported milk production challenges due to a steady increase in the price of animal feed. Learn more about challenges in the dairy supply chain here.
Pula Advisors partnered with Oromia Insurance S.C. & other local insurers to provide agricultural insurance to 700,000 smallholder farmers in Ethiopia.
BitX signed a June 8 MOU with Ethiopia Mining Farm, paving the way for AI-powered mining infrastructure in Ethiopia.
DAF Group recently introduced a self-service charging station for mobile devices known as MyCharge. Learn more in this interview.
A criminal case against WebSprix IT Solutions Pvt. Ltd involving offenses related to tax evasion & money laundering has been stalled due to its CEO’s illness.
UK & Ethiopian forwarder associations BIFA and EFFSAA signed a May 27 MOU to enhance collaboration in the logistics sector.
Ethio-Djibouti Railway SC urged the protection of international rights following an alleged contract breach by the Djibouti Ports and free zones authority last month.
Ethiopia Electric Power (EEP) officially reopened the bidding process for the construction of its 62-story, $440 million HQ, set to become the tallest building in Sub-Saharan Africa.
Economy & Development
The Ministry of Finance (MOF) proposed a budget of ETB 1.93 trillion (~$15 billion) for 2018 E.C, with 1.2 trillion allocated for recurrent expenditure, 415.2 billion for capital expenditure, & 315 billion to subsidize regional governments, amidst a deficit of 2.2%. Meanwhile, the portion of the budget allocated to capital expenditure has declined by 11% over the last 5 years, while a staggering ~24% of the budget (463.3 billion) has been allocated for foreign debt repayment.
The draft 2018 budget proposes to impose VAT on salt, sugar & petroleum, & excludes financial support for Addis Ababa. Meanwhile, budgetary allocations to regional states & Dire Dawa city have increased significantly by ETB 92 billion. Learn more about the budget here.
MOF projected that Ethiopia’s GDP will grow by 8.9% in 2018 E.C., up from an alleged 8.4% growth this year despite a 51% decrease in GDP this year.
A draft MOF directive proposes a range of sweeping tax reforms targeting digital creators, consultants, high earners, and previously tax-exempted sectors. Learn more here and here.
The National Bank of Ethiopia (NBE) is implementing a Central Securities Depository (CSD) to manage financial instruments so as to ensure transparency & stability amidst liquidity challenges.
The government will begin selling bonds on the Ethiopian Securities Exchange (ESX) in July 2025, targeting diaspora and foreign investors to boost domestic financing.
The World Bank gave Ethiopia & Kenya $750 million on June 5 to develop their border infrastructure in a bid to boost trade.
Society & Human Rights
Journalist Tesfalem Waldeyes was arrested on June 8 under suspicion of “disseminating false information” & granted bail on June 9. However, police refused to comply with the court order & kept him in custody.
The Addis Ababa City Court of Appeals on June 11 upheld the bail that had been granted to journalist Tesfalem on June 9 & ordered his release. However, authorities filed another appeal and kept him in custody.
Several human rights organizations, including Amnesty International, Human Rights Watch, CPJ & EMMPA, have issued statements condemning the unlawful detention of journalist Tesfalem Waldeyes & calling for his immediate release.
The Addis Ababa City Cassation Court again upheld the bail granted to journalist Tesfalem for the third time on June 12, ordering his immediate release. Tesfalem was finally released on June 13 after 6 days of imprisonment.
Dr. Mahlet Guush was released on bail on June 12 after 3 weeks of detention on charges of “inciting riots & violence” in connection with the ongoing nationwide strike called by health workers. Learn more about the strike here.
Musician Andualem Gosa, who had been detained for 3 months in connection with the suspicious death of his late fiancé, was released on bail on June 10 as the prosecutor “did not file formal charges”.
Former State Minister of Peace Taye Dendea alleged that he had survived 3 assassination attempts before his 1st arrest in December 2023, without naming the culprits. Learn more about Ethiopia’s prison system here.
Hundreds of IDPs staged a June 11 protest outside the Tigray Interim Administration (TIA) Office, demanding to return to their homes in disputed areas of Western Tigray, currently under the control of Amhara militias.
Dr. Abraham Verghese’s May 28 commencement address at Harvard University has been met with criticism for his praise of former PM & autocrat Meles Zenawi.
PM Abiy Ahmed was the only political leader invited to speak at the 2025 European Congress on Evangelism held in Berlin from May 27-30 to discuss the re-evangelization of Europe.
Interview with PM Abiy Ahmed
PM Abiy Ahmed touched on several controversial topics during an extensive 4-part interview with state media last week, sparking criticism from observers. Learn more in Part 1, Part 2, Part 3, and Part 4 of the interview.
PM Abiy criticized the Ethiopian Human Rights Commission (EHRC) for issuing reports that were “biased against the government” in recent years. This is not the first time that PM Abiy has criticized the EHRC. A former EPRDF cadre was recently appointed to head the institution.
PM Abiy urged commercial media outlets to “prioritize the national interest” in their reporting & refrain from “downplaying national agendas as simply party or government narratives”.
PM Abiy attributed ongoing conflict & insecurity in the country to some groups’ “unwarranted thirst for power” & a broader “culture of self-destruction” within Ethiopian political life during his interview.
PM Abiy acknowledged ongoing wage increase demands as “legitimate” amidst rising living costs, saying that he also has wage increase demands. He went on to describe the current developments in Ethiopia’s economy as “not just progress, but a miracle”.
Governance & Corruption
Regional and federal stakeholders ratified 14 key agendas aimed at guiding the country’s path towards inclusive political & social reform on June 5.
The Institute of Foreign Affairs (IFA) & MOFA held a June 10 conference reinforcing economic diplomacy as a pillar of Ethiopian foreign policy.
A June 10 Federal Courts study revealed improvements in the conduct of judges and the handling of jury proceedings within First Degree Federal Courts.
A new MOF directive formally transferred the authority to approve special direct procurements permits from the Public Procurement & Property Authority (PPPA) to federal ministers & heads of top institutions.
The Financial Intelligence Services (FIS) is preparing to regulate cryptocurrency transactions in Ethiopia despite an official ban on using cryptocurrency.
Ethiopia is one of Africa’s fastest-growing research centers, investing over ETB 3 billion each year in academic research, despite significant problems with quality.
Transport authorities are introducing a mandatory rehabilitation program for drivers with suspended licenses due to serious traffic violations.
FAS USDA forecasted that coffee production would increase in 2018 E.C. due to improved seed quality, increased productivity, and favorable weather.
PM Abiy Ahmed urged local businesses to “stop financially supporting armed groups” during a June 10 meeting with business representatives, alleging that the business community’s financial support fuels 60% of the country’s insecurity.
Addis Ababa is facing a deepening housing crisis as well as a water crisis amidst the liberalization of the housing sector, increased displacement & transformation due to the Road Corridor Development Project (RCDP).
Humanitarian Needs
MOH and EPHI reported that the M-pox strain in Ethiopia is highly contagious & has a high fatality rate during a June 11 broadcast, with 18 cases and 1 death reported so far, including in the war-torn Amhara region.
A new PHR study revealed that the USAID suspension is catalyzing a preventable health catastrophe in Ethiopia.
Swedish-based NGO Reach for Change reported that global humanitarian funding cuts have resulted in increased competition for financing in Ethiopia.
Only 28% of Ethiopian women report having the necessary resources to manage their periods properly, while another 25% reported using unsafe alternatives.
Politics
A federal proposal submitted to the National Dialogue Commission (NDC) proposes major constitutional reforms, including changing the national flag, replacing the current ethnic-based federal structure with geography-based regions, & amending Article 39.
Opposition OLF officially regained access to its Addis Ababa Headquarters after 4 years of forced closure by the Addis Ababa Police Commission.
The Somali regional president asserted that there is “no longer any sense of separatism in the Somali region” in a recent interview, & alleged that human rights violations & corruption have ceased in the region under his administration.
The Sidama Regional Peace & Security Bureau Head was stripped of his immunity on June 12 after being accused of illegally procuring weapons & attempting to overthrow the regional government.
Renegade military officers from Tigray announced the formation of a new armed group along the Tigray-Afar border that is “free of the TPLF’s influence” & created “solely to serve the people of Tigray” amidst fears of a return to war.
Former TIA President Getachew Reda warned that any TPLF attempt to control local offices in South Tigray would result in conflict with the federal government.
The Global Society of Tigray Scholars & Professionals (GSTS) & 15 other orgs condemned UN OCHA’s “persistent misrepresentation” of the disputed Western Tigray zone as part of the Amhara region in a June 10 joint letter.
The NDC plans to conclude agenda collection activities in the Tigray region by August 6.
Conflict & Security
Escalating ethnic conflict along the border areas of the Oromia and Benishangul Gumuz regions has resulted in several deaths & the displacement of over 11,000, according to a June 6 DG ECHO report.
Residents of Metekel zone, Benishangul Gumuz region reported that the OLA attempted to seize control of 3 kebeles on June 9 soon after a June 6 attack that resulted in over 20 deaths, triggering panic and displacement.
Geopolitics
The US Envoy to Ethiopia apologized for a May 23 statement where the US Embassy urged the Ethiopian government to cease drone attacks against its citizens, saying the statement was the result of an “administrative error”.
US Congressman Scott Perry introduced the “Republic of Somaliland Independence Act” to Congress on June 12. Learn more about the act here.
The ENDF Chief of Staff accused unnamed forces of attempting to thwart Ethiopia’s ambitions for sea access in a June 11 parliamentary address amidst escalating Ethio-Eritrean tensions.
Saudi Arabia & Egypt have finalized plans to build the “Moses Bridge”, a $4 billion crossing across the Red Sea that will physically connect Africa & Asia.
Kenyan Turkana leaders condemned the killing of 4 locals by Ethiopian Dassanech militia & called for government action to address insecurity along the border.
Save the Children reported that 2.3 million South Sudanese children under age 5 have been pushed into life-threatening acute malnutrition amidst conflict.
The 11th BRICS Parliamentary Forum was held in Brazil on June 10, with delegations from 16 countries.
The African Evaluation Association (AfrEA) highlighted that 75% of evaluations in Africa are commissioned by donors while marking its 25th anniversary.
Afreximbank has issued a formal response rejecting Fitch Ratings’ June 4 downgrade of its long-term foreign currency issuer default rating.
Ethiopia & Armenia held their first-ever political consultations in Addis Ababa on June 5, marking a key step in strengthening bilateral ties.