March 29 - April 4, 2025
NBE launches bi-weekly forex auctions; MOF to reform the treasury; New bill allows for TIA extension; Trump imposes tariffs & considers sanctions; 5 EBS staff arrested; Kenyan court to try Meta.
Business & Finance
The Ethiopian Capital Market Authority (ECMA) is weighing the introduction of ‘green financing instruments’ in a bid to raise funding for climate resilience programs.
State-owned CBE reported a profit of ETB 32.6 billion in the first 8 months of this fiscal year, marking a 170.5% increase compared to the previous year.
Addis Bank reported a net profit of ETB 413 million for the 2023/24 fiscal year, up 85% compared to the previous year.
MultiChoice Africa Holdings & Ethio Telecom have partnered to launch the DStv Stream Bundle Package.
Green Motion, a UK-based car rental company, has officially launched its operations in Ethiopia after 2 years of negotiations.
Barley shortages have led to a substantial increase in prices, soaring from ETB 3,000 per quintal to 9,000 per quintal & disrupting various industries. Meanwhile, increasing maize production has displaced other native grains.
Farmers have expressed concern over the soaring price of fertilizer, which has doubled to ETB 8,000-9,000 per quintal compared to last year.
Economy & Development
The National Bank of Ethiopia (NBE) announced plans to conduct biweekly forex auctions following a 200% increase in reserves, offering $50 million per auction. The first auction took place on April 1, with a weighted average exchange rate of ETB 131.7 per dollar & 12 participating banks. Banks that are not facing forex shortages have been asked to refrain from participating in the auctions.
The gap between the official & parallel market forex rates stood at around ETB 27 this week as the official rate averaged at around ETB 130 per dollar while the black market rate averaged around ETB 157 per dollar. Find different banks’ forex rates here and read more about this week’s forex market here.
A new NBE directive mandates foreign banks to deposit ETB 5 million (about $40 million) in paid-up capital, and caps foreign ownership of banks at 49% while mandating 1/3rd of the board members of subsidiaries to be Ethiopian nationals. In other news, NBE has emphasized the need for close monitoring of the forex market as banks have been accused of engaging in speculative forex purchases.
The Ministry of Finance (MOF) is working to lay the legal groundwork for a treasury single account (TSA) in a bid to deter financial mismanagement, cut down spending on interest payments, & rein in the growing federal budget deficit.
The Trump administration has imposed tariffs ranging from 10-50% on over 100 countries, including Ethiopia. The MOF welcomed the US decision to impose a 10% tariff on Ethiopian exports, viewing it as a boost to the country’s export competitiveness.
The Ministry of Industry (MOI) reported that Ethiopia has substituted $2.7 billion worth of imported products with locally produced goods in the 1st 8 months of this fiscal year. Meanwhile, Ethiopia earned $4.5 billion in export revenue during the same period.
Ethiopia & the EU signed a €240 million grant to support agribusiness initiatives and create jobs for smallholder farmers.
About 140 trucks loaded with goods were forced to stop at a dry port in Semera for 2 months due to the cancellation of Franco Valuta.
Society & Human Rights
Ethiopians celebrated Eid Al-Fitr on March 30, with especially colorful celebrations observed in Wollo, Dire Dawa, Harar & Jigjiga.
EBS aired a controversial interview of a former Dembi Dollo University student who was kidnapped by the OLA in 2020 and suffered sexual assault in a March 25 interview. In violation of the media law, police arrested 5 EBS employees & 3 others, including the interviewee, accusing the detainees of “public incitement”, “terrorism”, and “fabricating & spreading disinformation”. Learn more here.
International Media Support (IMS) reported that 42 journalists were arrested or disappeared in Ethiopia in 2024. IMS urged the government to protect journalists & called on all parties involved in Ethiopia’s numerous conflicts to respect humanitarian laws. Learn more about the human rights situation in Ethiopia here.
A Kenyan High Court ruled that it has jurisdiction to hear a case against Meta (formerly Facebook) for promoting content that contributed to ethnic violence & killings in Ethiopia between 2020-22. Amnesty International has welcomed the ruling.
Governance & Corruption
Parliament approved a revised bill that allows the Speaker of the House to extend the 2-year terms of interim regional administrations for up to 2 additional years to address political & security challenges.
The Ministry of Transport & Logistics (MOTL) faced scrutiny after federal auditors uncovered financial irregularities, including unused funds, delayed projects & procurement anomalies tied to a recent merger.
Ethiopia signed two Financing Agreements worth $96.3 million with the World Bank to increase equitable access to education and improve learning outcomes. Over 4.5 million students are out of school in the Amhara region despite extended registration due to the ongoing conflict.
A March 25 directive from the Addis Ababa City Administration extending banks’ working hours has sparked backlash from bankers and others in the industry.
A new MOTL directive mandates a 15% price preference for locally assembled EVs, with over 35% value addition in hopes of boosting domestic production amidst competition from cheaper imports. Meanwhile, Addis Ababa has launched 100 electric buses.
The Ministry of Agriculture reported that egg production has surged from 3.2 billion to 9.1 billion over the last 4 years, lauding the National Livestock Development Program for this achievement. Despite this, egg prices have steadily increased over the last few years.
Scholars warned that disputes & conflict over urban land ownership are becoming an increasingly common source of political tensions during a recent workshop.
Humanitarian Needs
The Ministry of Health (MOH) has launched a weeklong cholera vaccination campaign targeting 1 million people in the Gambella region amidst a rising death toll & an influx of refugees from South Sudan fleeing conflict. MSF recently raised concerns about the growing humanitarian crisis on both sides of the Ethiopia-South Sudan border.
A new cholera outbreak has been reported in the Amhara region, with cases rising rapidly in the West Gondar zone and around Bahir Dar city. Meanwhile, an outbreak of Acute Watery Diarrhea (AWD) has infected 52 people and claimed 2 lives in the Awi zone of the region.
UN OCHA reported that several woredas in the Amhara region remain inaccessible due to the ongoing conflict, hindering the delivery of food, medical aid & essential services.
Politics
The TPLF faction led by Tigray Interim Administration (TIA) President Getachew Reda has called for the reorganization of the TIA to make it more inclusive. The proposal includes placing Tigray’s former combatants in temporary camps & transferring peacekeeping responsibilities to the regional police.
The Trump administration is reportedly considering sanctions against certain members of the TPLF and the regional security forces who are accused of destabilizing the region and risking another round of conflict.
Oromia regional president Shimeles Abdisa marked the 7th anniversary of PM Abiy’s rise to power in an Apr 2 social media post, in which he emphasized the Oromo people’s commitment to “safeguarding their political victory” achieved in 2018.
Conflict & Security
A March 27 attack allegedly carried out by the Fano militia in Horro Guduru Wollega zone, Oromia region resulted in 21 deaths, including government security personnel and a 7th grader.
2 children aged 4 and 7 were brutally murdered while the home of a local official was shot at in Arba Minch Zuria woreda of the Gamo zone, South region on March 31. Officials blamed local armed groups for the attack, alleging that they were backed by the opposition EZEMA. EZEMA has denied this & urged government officials to refrain from making accusations without evidence.
Residents of North Gojjam zone, Amhara region reported that over 40 civilians were killed by government forces during house-to-house searches and on the streets on March 31. Learn more about the conflict in the Amhara region here, here and here.
Geopolitics
Security authorities in Addis Ababa have arrested 224 individuals suspected of clandestinely working for the Eritrean government, bringing the total of those detained for posing security threats in the capital city to 900.
Somalia offered the US exclusive control of strategic air bases & ports located in breakaway Somaliland & semi-autonomous Puntland in a March 16 letter. Somaliland rejected this & dismissed the move as “desperate", asserting that the territories were not Somalia’s to give away.
Al-Shabaab launched a major offensive over the last few weeks, resulting in a number of incidents including the encirclement of Mogadishu, an attack on the convoy of Somalia’s President, and an attack on the airport & nearby neighborhoods.
The AUC Chairperson expressed deep concern over the detention of South Sudanese Vice President Riek Machar for allegedly supporting the Nuer White Army, highlighting the risks for a return to civil war in South Sudan.
Sudan’s Army Chief landed in Khartoum last week & declared the capital “liberated” from the Rapid Support Forces (RSF), marking a significant moment in the Sudanese Civil War. Meanwhile, tensions are rising with neighboring Chad after the Sudanese military accused the Chadian government of smuggling weapons to the RSF.
Ethiopian Federal Police held talks with the Dubai police on criminal extradition & the establishment of a “joint criminal investigation team” and experience sharing initiatives.