The National Bank of Ethiopia (NBE) plans to exit the gold purchasing and export market by December 2026, ending its monopoly and opening the sector to private banks, according to the IMF’s Fourth Review. This shift follows sustained financial losses and market distortions attributed to NBE’s premium-based gold purchases. 

Key Takeaways:

• Policy change: NBE will cease gold market operations by end-December 2026. 

• Market entry: Private banks will be permitted to buy gold domestically post-exit. 

• Cost issue: NBE’s prior 15 % premium above international prices led to losses and balance-sheet strain. 

  
  

Why It Matters:

• Event dates: 4–8 February 2026 at Meskel Square.

• Participants: ~50 major companies from 20 countries expected.

• Local engagement: 300+ local companies will participate.

• Purpose: Promote exports, trade linkages, investment partnerships.

• Organisers: Ethiopian Chamber of Commerce & Sectoral Associations (ECCSA).

  
  

Why it matters:

• ECMA registered 15 million existing Bank of Abyssinia shares with the authority’s registry. 

• 3.125 million new shares approved for issuance via rights offer. 

• Registration follows Directive No.1030/2024 requiring public securities to be registered. 

• ECMA emphasized notice is for public information, not a sales offer. 

• Move aligns Bank of Abyssinia with Ethiopia’s evolving capital market regulations. 

Why it matters:

• Ethiopia’s bid to restructure its USD 1 billion Eurobond stalled as creditors rejected the agreement in principle. 

• AIP terms included a 15% haircut, new USD 850 million bond, and USD 350 million repayment due July 2026. 

• Creditors cited comparability of treatment concerns under the official restructuring framework. 

• Ethiopia defaulted on the Eurobond in late 2024. 

• Government says it will continue constructive negotiations with official and private creditors. 

Why it matters:

• Ethiopia lost an estimated USD 24.6 billion to trade-related illicit financial flows (2013–2022). 

• Losses place Ethiopia among the top ten globally for such outflows. 

• Illicit flows result from invoicing mispricing and non-reported trade. 

• Across sub-Saharan Africa, total trade value gaps reached 152.9 billion US dollar in 2022. 

• Report highlights the scale of unrecorded capital movement in foreign trade. 

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.

• Auction size: National Bank of Ethiopia sold USD 500 million in its largest single foreign exchange auction to date. 

• Exchange rates: Weighted average clearing rate was 154.82 birr per USD with bids between 153.50–154.998 birr. 

• Demand: Total bids reached USD 592.3 million, exceeding supply by over USD 92 million. 

• Participation: 31 banks bid in the auction, 25 securing foreign currency allocations. 

• Policy context: Auction mechanism remains central to Ethiopia’s market-based FX regime post-2024 reforms. 

Why it matters:
This record forex auction reflects active implementation of Ethiopia’s market-based foreign exchange policy and provides significant hard currency liquidity to the banking sector. Exchange rate discovery and allocation outcomes inform pricing and liquidity conditions for imports and financial planning across institutions.

• 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.

• Ethio-Djibouti Railway (EDR) and National Oil Company (NOC) launched a pilot to transport 120,000 liters of diesel by rail from Indode depot on January 27, 2026. 

• Initiative follows a directive from Prime Minister Abiy Ahmed to begin petroleum transport via rail to modernize logistics. 

• EDR has 110 underutilized fuel tank wagons; missing connections to oil terminals have limited use. 

• Negotiations ongoing for a 1.5 km rail link from Horizon Djibouti Terminals fuel jetty to the train station. 

• Doraleh Multipurpose Port first-mile trucking (1.9 km) costs Ethiopia about USD 10 million annually. 

Why it matters: This pilot marks the first operational test of bulk petroleum movement by rail in Ethiopia, aiming to reduce logistics costs and enhance supply chain efficiency for strategic imports. If successful and scaled, it could set a precedent for transporting fuel and fertilizer via rail.

• Zijin Gold International agreed to acquire Allied Gold Corporation for C$5.5 billion (about US$4.0 billion) in an all-cash transaction at C$44 per share, a 27% premium to the 30-day average. 

• Transaction financed entirely from Zijin’s cash reserves with no financing conditions and expected closing by late April 2026. 

• Shareholder & regulatory approvals required; Allied directors holding ~15.4% of shares have agreed to support the deal. 

• Upon completion, Allied Gold will be delisted from the Toronto and New York stock exchanges. 

• Deal includes a C$220 million termination fee payable by Allied under specified conditions. 

Why it matters: This acquisition significantly increases Zijin’s portfolio of large-scale gold assets in Africa, including those in Ethiopia, and reflects continued consolidation in the global mining sector. The all-cash structure provides immediate value to Allied Gold shareholders without financing contingencies.