May 31 - June 6, 2025
China becomes ET's "most admired country"; Parliament bans plastic bags; 2018 federal budget hits 2 trillion; ET & Eri war with words; EHPEA launches "Horti-Campus"; Taye Dendea (re)arrested (again).
Business & Finance
Ethio Telecom appointed Bankai Group as its preferential international voice termination partner into Ethiopia, effective June 1.
ZTE, in partnership with Ethio Telecom, deployed Africa’s first FTTR-B all-optical government network for the GERD Project Office in Addis Ababa.
Ethiopian Electric Utility (EEU) reportedly incurred almost ETB 200 million in losses in 9 months due to chronic looting of its infrastructure
Ethiopian Airlines (ETH) is considering purchasing at least 20 regional or narrow-body passenger aircraft to address a shortage of planes affecting its operations.
Siinqee Bank nearly doubled its deposits to ETB 46.8 billion in 2024 & reported an 82.7% increase in profit compared to the previous year.
Yared Mola, CEO of Nyala Insurance and President of the Association of Ethiopian Insurers, was elected president of the African Insurance Organization on May 28.
Real estate companies formed a new lobby group called the Ethiopian Developers’ Association & scheduled an inaugural General Assembly for June 14.
Flipper International School imposed a 75% tuition hike for Category 1 students for the upcoming school year, sparking criticism from parents.
The Ethiopian Horticulture Producers & Exporters Association (EHPEA) launched a digital learning platform called ‘Horti-Campus’.
A May 30 study found that local farmers are disadvantaged in the potato value chain, pocketing only 10% of profits but covering over 60% of production costs.
Ethiopians selected China as their “most admired country” in the 2025 Brand Africa survey. Only 32% believe that African countries contribute to a better Africa.
Economy & Development
The National Bank of Ethiopia (NBE) conducted a June 5 forex auction, offering $50 million to 12 banks at a weighted average rate of ETB 134.95 per dollar, slightly over the official rate. Meanwhile, the black market rate averaged at ETB 158. Find banks’ forex rates here & read about this week’s forex market here.
The Council of Ministers (COM) approved an ETB 2 trillion (~$15 billion) federal budget for 2018 E.C., marking a 500 billion increase from 2017’s ETB 1.5 trillion (~$21 billion) budget, but representing a 35% decrease in USD due to the Birr’s depreciation. The proposed budget is awaiting parliamentary approval.
A new NBE directive mandates banks to develop detailed self-reliant recovery plans outlining how they can survive crises without state bailouts.
The Ethiopian Investment Commission (EIC) is preparing a legal framework to facilitate the full liberalization of the logistics sector by 2026, paving the way for foreign investment in accordance with IMF negotiations.
The Ethiopian Youth Entrepreneurs Association (EYEA) & the Ethiopian Youth Council signed an agreement to strengthen youth involvement in the economy.
IES and ICIPE launched a joint initiative to revise Ethiopia’s honey & hive product standards under the Mass Youth Employment in Apiculture (MaYEA) program.
Addis Ababa is witnessing the rise of a new class of destitute people, made recently homeless by urban development projects and/or armed conflicts amidst IMF-led austerity measures & rising poverty.
Society & Human Rights
Former State Minister of Peace Taye Dendea was re-arrested on June 2, hours after the Federal Supreme Court reinstated 2 previously dropped criminal charges. The Federal High Court revoked his bail on June 3, & prosecutors asserted that he was arrested while trying to flee the country.
A federal court granted an additional 8 days to investigate 8 detained health workers facing charges of “inciting riot & unrest” and “collaborating with anti-peace forces” in connection with health workers’ ongoing nationwide strike.
Addis Ababa’s Mayor pledged to gradually meet the wage demands of all public servants during a discussion with health workers about current living conditions.
Residents of Hadiya Zone, Central region met with PM Abiy’s Cabinet on May 21 and presented several governance complaints related to the zonal administration.
Local CSO Human Rights First is considering filing a lawsuit against the federal government for its failure to facilitate the return of IDPs. Learn more here.
Governance & Corruption
Parliament approved a new Disaster Risk Management Bill after removing a controversial clause mandating monthly salary deductions for contributions to “Ethio-AID”, citing “overlapping burdens” on employees. However, institutions are still required to contribute to the fund. Learn more here.
Parliament approved the Dry Waste Management & Disposal bill on June 4, banning single-use plastic bags & imposing steep fees & penalties on violators.
A new Ministry of Finance (MOF) bill prohibits the Ethiopian Pharmaceutical Supply Service (EPSS) from importing locally produced medication & equipment, effective June 3, & restricts purchases over ETB 3 billion unless deemed essential.
The Ministry of Education (MOE) announced that it is shutting down 90 higher education institutions who had over 75% of their students fail the National Exit Exam & elaborated on its efforts to prevent academic dishonesty.
The Ministry of Water & Energy (MOWE) announced plans to shift the responsibility for reducing the presence of invasive water hyacinth (እምቦጭ) to institutions located near affected water bodies.
The Minister of Planning & Development asked the Norwegian Embassy to provide $31 million in budget support for the 2nd Africa Climate Summit (ACS2).
The COM ratified an amendment to the law governing the expatriation of Ethiopian workers on May 29, & approved a draft Start Up Proclamation on June 4.
A draft bill endorsed by the COM permits private entities to deliver agricultural extension services that were previously the sole responsibility of the government.
Addis Ababa plans to support 100,000 EVs with a city-wide charging network, but many units remain idle due to bureaucratic hurdles & procurement delays.
The federal blockade on heavy trucks carrying essential goods & fuel to the Tigray region has been lifted following talks between the Tigray Interim Administration (TIA) and the Federal Police.
Humanitarian Needs
The Ministry of Health (MOH) confirmed Ethiopia’s 1st death due to M-Pox on May 31, with 6 others still infected.
A June 2 report by the Norwegian Refugee Council identified Ethiopia as the world’s 2nd most neglected displacement crisis after Cameroon, with 2.3 million internally displaced in 2024.
Heavy floods in the Dassanech woreda, South Omo zone, South region have displaced over 8,000 people since June 2.
Heavy rains in the West Gondar zone, Amhara region damaged electric infrastructure & caused widespread power cuts. Meanwhile, several community services continue to be disrupted in post-war Tigray.
A multi-stakeholder partnership hosted a May 30 event to solicit funds for Hamlin Fistula Ethiopia & commemorate International Day to End Obstetric Fistula.
Politics
The National Election Board of Ethiopia (NEBE) announced that the 2026 General Elections will only be conducted in electoral constituencies where conditions are “permissive” & “enabling”, citing the country’s “highly volatile” security situation.
Opposition parties OLF and OFC expressed doubts about participating in the 2026 General Elections, citing ongoing conflicts, unresolved electoral issues, & the shrinking political space.
Opposition EPRP put forward 5 pre-conditions for its participation in the 2026 General Elections, saying a “free & fair election” can only take place if these conditions are met.
Tigray Democratic Solidarity (TDS) revealed plans to host its 1st Congress in Mekelle, begin member recruitment & establish organizational structures during a May 31 press briefing. Learn more about the new opposition party here.
NDC Commissioner Tegegnework Getu has resigned, citing the completion of his mandate during the NDC’s 1st term amidst challenges. Despite the NDC’s extension until 2026, there are no plans to appoint a replacement for him.
Opposition Boro Democratic Party (BDP) proposed that Metekel zone, Benishangul Gumuz (BG) region be reorganized into a federal region.
Opposition BPD signed an agreement with the BG regional government to facilitate the release of detained opposition politician Yohannes Tessema.
The ONLF faction led by Abdirahman Mahadi accused the Somali regional government of trying to incite violence in Ogaden. Learn more about tensions in the Somali region in this op-ed.
Conflict & Security
The Minister of Peace claimed that 263 of the 265 districts in the Amhara region are under full government control, while the remaining 2 are “inaccessible” due to “logistical challenges”. Learn more about the security situation in this op-ed.
The Addis Ababa Federal Police announced that it will begin conducting random “lawful” home inspections to ensure peace & stability & urged residents to cooperate in a June 3 statement.
A June 6 attack by 100+ unidentified gunmen in Bulen town, Metekel zone, Benishangul Gumuz region resulted in at least 10 deaths, 5 abductions, several injuries, & property damage amidst widespread lootings.
Public drivers highlighted the dangers of the Addis Ababa-Gojjam route, which they refer to as a “death corridor”, citing multiple instances of kidnapping for ransom and armed attack by various armed groups.
Geopolitics & Regional Integration
The Foreign Minister plans to launch an institutional initiative to demarcate borders with neighboring countries, saying “less than 50% of Ethiopia’s borders” are currently “properly demarcated & clearly defined.
Ambassador Dina Mufti accused Eritrean President Isaias of promoting “Cushitic-Semitic antagonism” in a bid to “fuel animosity against Oromos” & realign political forces in the Horn in a June 2 op-ed. He also called for international pressure on Eritrea to withdraw its troops from unnamed occupied territories.
The Defense Minister (DM) criticized a recent speech by President Isaias where he spoke at length about Ethiopia, saying it was ironic for a country whose people “live in fear” and “flee at every opportunity” to criticize Ethiopia.
Eritrea’s Ministry of Information accused Prosperity Party officials of distorting Eritrea’s history, economy & regional policy due to their ambition for sea access.
The Foreign Minister (FM) asserted that Ethiopia & Eritrea are not in a war of words, despite escalating tensions in recent months.
Ethiopian nominee Tewodros Getachew filed a lawsuit against COMESA, alleging irregularities in the appointment of judges to the COMESA Court of Justice.
The NBE banned the use of Cash Against Documents for exports to Egypt, in a bid to address exporters’ persistent failures to repatriate foreign currency earnings.
Kenya has dispatched a technical team to negotiate an expanded Power Purchase Agreement with Ethiopia, seeking to increase hydropower imports by 200 MW.
PM Abiy Ahmed awarded Bill Gates with the “Ethiopian Special Order” on June 1. Bill Gates recently pledged to give away $200 billion over the next 20 years through the Gates Foundation, with a majority going to Africa.
UN ECA said mounting debt & corruption are undermining Africa’s prospects at a time when technologies like AI are transforming the global economy.
The AU expressed concern over the “potential negative impact” of recent travel restrictions announced by the US in a June 5 statement.