• Afreximbank backs 8 African startups through its innovation program

• Each startup eligible for funding up to $250,000

• Gebeya Inc. selected as Ethiopia’s representative

• Program targets digital innovation, trade facilitation, and industrialization

• Startups selected from multiple African countries after competitive screening

• Funding includes mentorship, market access, and business development support

• Initiative aligns with Afreximbank strategy to support intra-African trade and digital economy

Why it matters?
The funding expands access to capital for African startups and supports Ethiopia’s digital sector through Gebeya’s inclusion, with potential implications for skills, outsourcing, and tech-driven exports.

• Credit rating lowered: Fitch cut Afreximbank’s long-term rating to BB+ from BBB- (investment grade).

• Ratings withdrawn: Fitch has withdrawn future ratings and analytical coverage of Afreximbank.

• Dispute driver: Downgrade and withdrawal followed disagreements over Fitch’s assessment approach.

• Preferred creditor status questioned: Fitch cited loss of informal preferred creditor protection in Ghana deal.

• Bank response: Afreximbank terminated its credit rating relationship with Fitch. 

Why it matters:

• Bank of Abyssinia’s total deposits exceeded 300 billion birr in early 2025/26. 

• At end of 2024/25, deposits were 243.2 billion birr. 

• Total assets stood at 286.2 billion birr as of June 30, 2025. 

• Net profit was 7.3 billion birr in FY 2024/25. 

• Customers numbered over 11.6 million as of 2025. 

Why it matters:

• Interbank FX market opened: Ethiopia’s central bank has launched a competitive interbank foreign exchange market with real-time pricing. 

• Market pricing: Banks conduct FX trades through competitive bids, enhancing price discovery and transparency. 

• Regulated oversight: The National Bank of Ethiopia (NBE) keeps strict supervision and guidelines over the new trading platform. 

• Platform tech: The market uses an automated trading system (ESX) for efficient transaction execution. 

• Policy change: This move aligns with Ethiopia’s broader market-based FX reforms since 2024. 

Why it matters:
Opening an interbank FX market marks a significant step in Ethiopia’s transition toward market-based foreign exchange pricing, helping align official pricing with market dynamics. This can improve liquidity allocation among banks and provide more reliable benchmark rates for the broader financial and business community.

• Total assets: Zemen Bank’s assets reached 106 billion birr in the first half of fiscal 2025/26. 

• Profit: Gross profit for the same period exceeded 5 billion birr. 

• Deposits: Customer deposits climbed to 80 billion birr. 

• Capital: Paid-up capital risen to 14 billion birr, strengthening equity base. 

• Mid-year comparison: Figures build on prior fiscal growth trends in profitability and balance sheet size. 

Why it matters:
Zemen Bank’s midpoint financials demonstrate solid balance sheet expansion and earnings performance within Ethiopia’s banking sector. These metrics are key indicators for investors and analysts tracking sector growth and institutional resilience.