• Development Bank of Ethiopia and African Development Bank discuss new external financing for agro-industry and job creation.

• Talks focus on mobilizing concessional and blended finance for industrial and agricultural projects.

• Financing targets agro-processing, manufacturing, and employment-generating sectors.

• DBE seeks foreign currency funding to support private sector investment.

• AfDB engagement aligns with Ethiopia’s industrialization and job creation agenda.

• Discussions include structuring facilities to improve project bankability and disbursement capacity.

Why it matters?

• External financing can ease foreign currency constraints and expand credit to agro-industrial investors.

• Oil and Energy Authority to supply Kalub LNG through three distribution stations in Somali Region and major cities.

• First phase capacity: 111 million liters LNG annually; distribution to start within one month.

• Second phase capacity: 1.33 billion liters LNG annually; additional stations planned nationwide.

• Three stations under final construction in Qaliti, Adama, and Dire Dawa by private companies.

• Poly Golden Concord Group (GCL) leading LNG project; Qaliti station built in partnership.

• LNG stored at -161°C; tankers arriving via Djibouti within five days for installation.

• Government fuel subsidies exceeded ETB 33 billion in recent years.

Why it matters?
Kalub LNG rollout may reduce fuel subsidy burden and reallocate fuel supply across regions.

• Ministry of Finance maintains 150% export tax on raw hides and skins.

• Semi-processed hides face 10% export tax; finished leather exports taxed at 0%.

• Policy supports domestic leather processing and manufacturing industries.

• Government preparing legal reform to revise export tax framework.

• Reform process underway; no implementation date announced.

• Leather industry stakeholders awaiting clarification on regulatory changes.

why it matters?
Export tax structure directly affects Ethiopia’s leather value chain, export revenues, and raw material supply for domestic manufacturers.

• EVs exceeded 60 % of new car sales in Ethiopia in 2024, ranking among top global shares. 

• Ethiopia now has ~115,000 electric vehicles on the road of ~1.5 million total fleet. 

• Government banned imports of fossil-fuel private cars in January 2024. 

• EV tariffs cut to 15 % for complete, 5 % for parts, zero for CKD kits. 

• Local EV assembly underway; 9 firms assemble vehicles from SKD kits. 

• China-brand EVs form majority of imports and sales in Ethiopian market. 

• Ethiopia aims for 500,000 EVs by 2030 under national transition targets. 

  
  

Chart source: X -  @AssaadRazzouk

Ethiopia’s automotive market is being reshaped by a fuel-vehicle policy pivot that has accelerated EV adoption, reduced reliance on imported petrol/diesel cars, and spurred duty-driven cost advantages for imported EVs and locally assembled units.

• MIDROC Investment Group opened a 1 billion ETB coal processing facility in western Ethiopia. 

• Facility processes 200 tonnes of coal per hour. 

• Plant created 250 permanent jobs. 

• Ethiopia previously spent up to $300 million on imported coal. 

• Processed coal intended for domestic cement, steel, construction industries. 

• Plant inaugurated in Arjo, East Wollega, Oromia Region. 

why it matters?
The facility replaces a portion of Ethiopia’s imported coal demand, potentially reducing foreign exchange outflows tied to industrial fuel imports.

• NBE FX Auction No. 18 cleared at 155.12 ETB per USD on latest auction date. 

• National Bank of Ethiopia offered USD 70 million in the auction. 

• Total bids reached USD 145.31 million, more than double supply. 

• 31 commercial banks participated in the auction. 

• 21 banks secured foreign exchange allocations. 

• Marginal cut-off rate set at 155.1200 ETB per USD. 

• Weighted average rate settled at 155.1223 ETB per USD. 

Why it matters?

• Ethiopian Airlines confirmed 35 international firms expressed interest in constructing the Bishoftu mega-airport.

• Detailed design completion targeted by end of February 2026.

• Formal tenders scheduled for March 3; four construction contracts to be signed by August.

• Project cost estimated at USD 9 billion.

• Financing structured through a Special Purpose Vehicle, using project assets as collateral.

• African Development Bank coordinates the project; KPMG serves as financial advisor.

• Final financing agreements expected by December 2026.

Why it matters?
The USD 9 billion airport project is advancing toward tendering and financing closure. SPV-based funding and multilateral coordination shape execution of Ethiopia’s largest aviation infrastructure development.

• ESX granted Approval in Principle to several major banks for Main Market listing.

• Banks include Awash, Dashen, Bank of Abyssinia, Abay, Anbesa, and Amhara.

• Listing requires securities registration with ECMA and prospectus publication.

• Dashen Bank and Bank of Abyssinia finalized securities registration and published prospectuses.

• ESX expects additional financial and non-financial listings before fiscal year end.

• Investors advised to open accounts through licensed market intermediaries and exchange members.

Why it matters?
Major banks are advancing toward listing on ESX’s Main Market. Securities registration and prospectus publication mark progress toward public trading and capital market expansion.

• ECMA requires more than 16 supporting documents for capital market licensing applications.

• Sixteen institutions have been licensed across investment banking, advisory, and brokerage services.

• Most licensed firms are subsidiaries of local banks, including CBE Capital and Wegagen Capital.

• BDO Consulting PLC received a corporate investment advisory license, raising advisory firms to nine.

• Total licensed capital market service providers now stand at 16.

• Transition from PLC to joint-stock company takes six to eighteen months.

• Interest spans more than 15 licensing categories, with demand expected after the Collective Investment Schemes Directive issuance.

Why it matters?
Sixteen institutions are now licensed under ECMA, including nine advisory firms. Licensing requirements and PLC-to-joint-stock transitions shape capital market participation and public fundraising capacity.

• Ethiopia generated USD 62 million from meat exports in the first six months of the fiscal year.

• Exporters shipped about 11,000 tons, below the 12,000-ton six-month target.

• Saudi Arabia and United Arab Emirates remained primary export destinations.

• Qatar agreed to resume meat imports starting during Ramadan after suspension.

• Industry reported USD 57 million earnings from 11,000 tons, below the USD 62 million target.

• Meat Producers and Exporters Association cited limited investment in feed and by-product processing.

• Endemic livestock diseases restrict access to United States and Asian markets due to certification requirements.

Why it matters?
Meat exports generated up to USD 62 million in six months but missed volume and revenue targets. Feed instability, disease control gaps, and market access barriers continue affecting export performance and foreign currency earnings.

• Ethiopian Airlines Group generated USD 4.4 billion in revenue in the first half of its current fiscal year. 

• Half-year revenue increased 14% versus last year’s record. 

• The airline added seven aircraft during the six-month period.

• Total fleet reached 147 aircraft over the period. 

• Ethiopian logged nearly 334,000 flight hours and carried 10.64 million passengers. 

• Cargo transported was 451,000 tons, up 19% year-on-year.

Why it matters?
Half-year revenue growth signals expansion of Ethiopian Airlines’ operations, including fleet size, passenger volumes, and cargo throughput, affecting airline industry performance metrics. 

• Ethiopia’s banking sector posted a combined profit of 91.06 billion birr in the first half of the fiscal year. 

• Profits followed currency liberalisation that lifted sector earnings. 

• Some banks incurred foreign exchange losses due to high FX exposure. 

• Results varied widely by risk profile and balance sheet position. 

Why it matters?
Bank profitability aggregates indicate overall sector performance mid-year 2026, while foreign exchange losses signal risk exposures tied to recent currency reforms, affecting banks’ balance sheets and financial stability. 

• National Bank of Ethiopia will open four new regional branches.

• Branches planned in Bahir Dar, Hawassa, Jimma, and Dire Dawa.

• Project aims to strengthen regional supervision and service delivery.

• Construction and preparatory works have already started.

• Implementation has faced delays from material shortages and site issues.

• National Bank of Ethiopia is coordinating with regional administrations.

Why it matters?
The expansion increases National Bank of Ethiopia’s regional presence, affecting banks, microfinance institutions, and financial supervision across major commercial centers.