March 22-28, 2025
Foreign investors flee; Soybean prices surge; New tax targets TikTokers; Fed pauses fuel supply to Tigray; Quarterly price hike strikes early; Tigray to nominate a new leader; Getachew departs TIA.
Business & Finance
CBE Capital SC and Wegagen Capital Investment Bank SC have acquired investment banking licenses from the Ethiopian Capital Market Authority (ECMA). Learn more here.
Archer Aviation partnered with Ethiopian Airlines (ETH) to introduce its all-electric Midnight air taxis as part of the “Launch Edition” program.
Despite reporting losses for 20 consecutive years, MIDROC Investment Group’s charter airline, Trans Nation Airways, acquired aircraft valued at $3.6 million & designed to land in remote areas without organized airports.
Ethiopian Investment Holdings (EIH) ended its partnership with Dodai Group to deploy battery swapping stations for electric motorcycles on March 22.
TOYO announced plans to expand its solar cell manufacturing facility in Hawassa, Ethiopia, by adding 2 gigawatts (GW) of capacity.
Adama Special Economic Zone (ASEZ) launched a digital system to monitor liquid waste from factories, improving waste management and service efficiency.
Soybean prices have surged by as much as 70% over the last 2 months, wreaking havoc across industries dependent on the crop.
Ethiopian Electric Power (EEP) is reportedly supplying 265 megawatts of electricity per day to Kenya under the power sales agreement between the two nations.
Ethiopian Shipping & Logistics (ESL) has been recognized by the Djibouti Transporters Association for its contributions in the logistics sector. Despite the partial liberalization of the sector, ESL will retain exclusive control over key markets accounting for nearly 70% of imports. Meanwhile, ESL has requested a reduction in local banks’ service charges for foreign currency transactions.
The Ministry of Defense (MoD) approved a request from the Defense Engineering Industry Corporation (DEIC) to take over 2 industrial complexes previously under the Ethio Engineering Group (EEG). Learn more about Ethiopia’s military business ambitions here and here.
Economy & Development
The National Bank of Ethiopia (NBE) reported that inflation has dropped to 15%, with food inflation dropping to 14.6% from 31% last year, while non-food inflation remains at 15.6%. NBE maintained a 15% policy rate and an 18% credit growth cap despite liquidity challenges. In other news, NBE plans to modernize the treasury bill system to enhance accessibility, transparency and competitiveness in financial markets.
The gap between the official & parallel market forex rates stood at around ETB 25.873 this week as the official rate averaged at around ETB 129.96 per dollar while the black market rate averaged around ETB 155.8 per dollar. Find different banks’ forex rates here & read more about this week’s forex market here.
The Ministry of Finance (MOF) announced that it has reached an agreement in principle to restructure $8.4 billion of outstanding public debt & instructed state-owned enterprises to begin preparations for upcoming negotiations.
The Ministry of Trade & Regional Integration (MOTRI) announced significant progress during the World Trade Organization (WTO)’s 5th Working Group Meeting in Geneva and revealed that Ethiopia has been requested to further open up its telecom and finance sectors in order to join the WTO. Learn more here.
Foreign investors, including international flower companies, are increasingly leaving Ethiopia in search of more stable conditions in neighboring countries.
The Institute of Ethiopian Standards introduced revised fees & new product marking systems, sparking backlash from cash-strapped businesses. Learn more about some of the challenges faced by business owners here.
Ethiopia signed a €25 million budget support and €3.5 million technical assistance agreement with the Agence Française de Développement (AFD), with €10 million disbursed in December 2024.
Society & Human Rights
Ethiopia rejected 52 out of the 316 recommendations at the Universal Periodic Review session held at the UNHRC, including to ratify the Convention for the Protection of All Persons from Enforced Disappearance & the Convention Against Torture.
The CIVICUS 2025 report categorized Ethiopia as having repressive & closed civic spaces due to the widespread & routine repression of fundamental freedoms.
The Federal Court is preparing new guidelines aimed at swiftly addressing gender-based violence (GBV).
A group of Addis Ababa University (AAU) students are preparing to take legal action against the AAU for making “unfair, non-voluntary, and non-participatory” decisions in its plans for administrative restructuring.
Residents of Sidama region celebrated Fichee-Cambalaalla in Hawassa city on March 28, marking the Sidama Celestial New Year.
Governance & Corruption
MOTRI announced the second fuel price hike in 2 months, falsely asserting that the adjustment is part of regular quarterly revisions. Effective March 23, gasoil has increased to ETB 112.67, representing an 11% rise. Meanwhile, diesel and kerosene have increased to ETB 107.93, representing a 9% rise.
Residents of the Tigray region reported a severe fuel shortage, disrupting essential services. Tigray regional officials accused the federal government of deliberately cutting off fuel supply to the Tigray region. Federal officials denied this & asserted that fuel was not being shipped to other regions either due to a national shortage. Learn more here.
A new directive aims to levy a “Digital Service Tax” targeting businesses conducted over digital marketplaces and digital service providers, including content creators on Youtube and TikTok.
Opposition leaders, scholars & observers argued that PM Abiy Ahmed’s March 20 parliamentary speech is detached from reality, highlighting soaring poverty, diplomatic challenges and the sheer falsehood of his alleged “agricultural revolution”.
The Ethiopian Media Council (EMC) announced plans to introduce a digital identification system for journalists and launch the National Media Awards to enhance journalistic standards and public trust.
The Ministry of Transport & Logistics (MOTL) announced that the Ethio-Djibouti Railway has steadily improved its transportation capacity, with plans to handle 50% of Ethiopia’s export cargo in the near future.
Farmers in the Oromia region complained that regional authorities are forcing them to donate part of their harvest to support regional programs including school feeding, provisions for IDPs, and expenses for the regional militia.
Illicit mining is proliferating across the Tigray region despite a recent order from the Tigray Interim Administration (TIA) to freeze all mining activity.
The Addis Ababa City Administration ratified a bill listing trade activities that are allowed to be conducted by informal traders during a March 22 meeting.
Humanitarian Needs
UNICEF warned that 1.3 million children under 5 in Ethiopia and Nigeria risk losing life-saving aid due to the USAID suspension, with supplies for 70,000 Ethiopian children to run out by May 2025. Additionally, 23 out of 30 mobile clinics in the Afar region have been shut down.
Various NGOs are struggling to continue operations after the USAID suspension, with one $63 million project affecting 14 million beneficiaries halted and many employees laid off.
Addis Ababa is facing food security challenges due to heavy reliance on rural produce and imported industrial food, amidst increased food waste and malnutrition.
The humanitarian crisis in the Amhara region remains severe, with growing food insecurity and worsening malnutrition despite improved aid access in some areas.
HIV prevalence in Tigray has risen significantly, from 1.4% before the onset of the 2020-22 war to 3% currently, and 5.5% among IDPs.
Ethiopia and the IOM have launched a 5-year strategic plan aimed at addressing irregular migration.
Politics
PM Abiy Ahmed invited residents of the Tigray region to nominate candidates for a new regional leader in a March 26 statement, confirming the departure of current TIA President Getachew Reda. PM Abiy asserted that the TIA’s mandate would be extended for another year, as it has not yet been able to create conditions for regional elections.
The TPLF rejected PM Abiy’s call to nominate candidates for a new TIA President in a March 26 statement, calling it a “unilateral decision” that “violates the Pretoria Peace Agreement”, & accusing the government of attempting to “sabotage peace efforts & manufacture political crises”.
The Tigray Peace & Security Bureau has dismissed accusations from the ENDF that TPLF Brigadier General Migbe Haile supported the Fano militia, labeling the accusations as ill-informed, irresponsible & lacking evidence.
Opposition party Salsay Weyane Tigray warned that rising tensions between Ethiopia & Eritrea are overshadowing the ongoing suffering of IDPs in Tigray. Learn more here about the role of the opposition in ensuring lasting peace in Tigray.
Benishangul Gumuz regional officials announced a 1-year extension for the implementation of a “special directive” to reintegrate former combatants during a March 22 meeting.
Conflict & Security
The decentralized Fano militias launched a joint campaign known as Operation Unity across the Amhara region last week, resulting in heavy fighting and increased civilian casualties across the region.
Authorities in the Amhara region are training tens of thousands of anti-riot militia and regular police as part of efforts to maintain peace & security amidst ongoing clashes with the Fano militia.
ENDF alleged that it had killed 317 Fano fighters and injured 125 in a March 21 statement. Fano militias denied this & alleged that they had killed 602 ENDF soldiers, wounded 420, & captured 98.
Fano militias in Merawi woreda, North Gojjam zone, Amhara region, kidnapped and killed 11 teachers on March 20, accusing them of violating a general strike called by Fano. Over 60% of students in the region have not enrolled in the current academic year.
Unidentified gunmen abducted about 40 people en-route to Addis Ababa by bus in the North Shewa zone of the Oromia region on March 22, and are demanding ransom for the release of the victims.
4 Ethiopians were killed & 3 others wounded in a March 22 cross-border attack by “armed militants from Kenya’s Turkana County” in the Dassanech woreda of the South Omo zone, South region.
Geopolitics
Eritrea and Egypt rejected the involvement of non-coastal states in Red Sea security, following a March 23 meeting, stating that the waterway’s governance “should be led by coastal nations”.
PM Abiy Ahmed spoke with US Secretary of State Marco Rubio on March 27, marking the first official meeting with an official of the Trump administration. The two discussed strengthening their countries’ relationship, with a focus on peace and supporting a stable Ethiopia.
German authorities have raided a group believed to be part of the international network Brigade N’Hamedu (Blue Revolution Movement) and suspected of plotting to overthrow Eritrean President Isaias Afeworki & his regime.