Ethiopian Securities Exchange to Add Five Listings in Six Months
The Ethiopian Securities Exchange (ESX) is now fully operational, with the necessary infrastructure and legal framework in place. CEO Tilahun E. Kassahun confirmed that one bank has already entered the market, with plans to list at least five more companies within six months and up to 50 over the next five years. ESX aims to drive economic growth and financial inclusion, attracting strong interest from local and international investors. Targeting markets like South Africa, London, Dubai, and New York, ESX is also forming strategic partnerships with regional exchanges to enhance its position in global financial markets. Read More
Ethiopia to Lift Lending Cap by September 2025
Ethiopia plans to remove its two-year-old lending cap by September 2025, aiming to boost credit expansion and economic growth. Initially imposed to control inflation, the cap restricted commercial banks’ annual loan growth, limiting liquidity for businesses, especially SMEs. The decision aligns with Ethiopia’s broader financial reforms and IMF recommendations for a market-driven economy. While increased credit availability is expected to stimulate investment and job creation, experts caution that inflation risks must be carefully managed. The central bank plans to adjust interest rates and implement data-driven policies to ensure stability. This move could mark a turning point for Ethiopia’s banking sector, unlocking new opportunities for businesses and investors. Addis Insight
Ethiopia Expands Non-Dollar Trade with Russia Amid U.S. Tariff Risks
Ethiopia has signed a new trade agreement with Russia to conduct transactions in national currencies, reducing reliance on the U.S. dollar. This move aligns with Russia’s push for alternative trade mechanisms and helps Ethiopia address foreign currency shortages.
M-PESA Ethiopia Hits 10.8M Users, Revenue Declines 74%
As of December 2024, M-PESA Ethiopia reached 10.8 million users, a 245% increase from 2023. Despite this growth, revenue dropped by 74% to approximately $75,969, and total transaction value decreased by 30% to $113.95 million. Airtime purchases and cross-border money transfers were key drivers of user growth, while mobile data and messaging revenues saw strong increases. Safaricom plans further expansion, with a goal of covering 55% of Ethiopia’s population by mid-2025. Read more
M-PESA Partners with Dashen Bank and CashGo to Boost Remittances in Ethiopia
M-PESA Safaricom has partnered with Dashen Bank and CashGo to enhance international remittance services in Ethiopia. The collaboration enables Ethiopians to receive money directly into their M-PESA wallets, making transactions quicker and more convenient. Dashen Bank will handle all remittance transactions, while CashGo facilitates the transfer process. M-PESA’s mobile money platform will allow users to instantly access their funds for various transactions, promoting financial inclusion and offering a seamless experience for remittance recipients. Read More
Ethiopia Launches Digital Agriculture Roadmap
Ethiopia has unveiled its Digital Agriculture Roadmap (DAR), aimed at transforming the agricultural sector through digital technology. The phased initiative focuses on building infrastructure, enhancing access to real-time data, and addressing supply chain inefficiencies. The first phase (2025-2029) will establish foundational digital tools, while the second phase (2030-2032) will scale advanced technologies like precision farming and AI-driven analytics. This roadmap aims to improve productivity, market linkages, and sustainability, boosting food security and economic resilience in rural communities. Read More
CBE Processes Over 5.4 Trillion Birr in Digital Transactions
The Commercial Bank of Ethiopia (CBE) has processed over 5.4 trillion birr in digital transactions, accounting for 80% of total transactions. This marks a 90% increase in transaction value and an 80% rise in volume compared to last year. CBE’s total deposits now exceed 1.4 trillion birr, with significant growth in credit accessibility, especially for the private sector. Read More
Global Bank Ethiopia Launches Digital Banking Service Center
Global Bank Ethiopia has launched a digital banking service center, enabling customers to open accounts, deposit and withdraw money, view statements, exchange foreign currencies, and make payments. The center also offers internet banking without an ATM card, check exchanges, and a video conference room for corporate clients. CEO Dr. Tesfaye Boru emphasized that the center will enhance the bank’s competitiveness and contribute to the economy. The bank reported a pre-tax profit of Birr 757.6 million, with total assets surpassing 26.6 billion birr.
All Banks to Join Electronic Fuel Procurement System
The government has expanded its electronic fuel procurement system to include all banks, with Tele Birr, Commercial Bank of Ethiopia, and one private bank previously participating. The new initiative aims to modernize the fuel market and curb illegal practices through a mobile payment system. While the company behind the system is working to integrate other banks, the timeline for their inclusion is not yet clear.
Petroleum Product Prices Remain Unchanged for February
The Ministry of Trade and Regional Integration has confirmed that the retail prices for petroleum products in February will remain the same as in January. The prices are as follows:
- Gasoline: 101.47 birr per liter
- Diesel: 98.98 birr per liter
- Kerosene: 98.98 birr per liter
- Jet Fuel: 109.56 birr per liter
- Heavy Black Diesel: 105.97 birr per liter
- Light Black Diesel: 108.30 birr per liter
IMF Managing Director Visits Ethiopia
Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), is on a two-day working visit to Ethiopia, her first since taking office in 2019. During her visit, she is scheduled to meet with Prime Minister Abiy Ahmed and senior government officials to discuss Ethiopia’s economic growth, policy priorities, and ongoing economic reforms. Read More
NBE to Revise Advance Payment Guidelines for Importers
The National Bank of Ethiopia is set to revise its guidelines, increasing the amount importers can send in advance without a bank guarantee. Currently, the limit is $5,000, and any amount above this requires a local bank guarantee. The exact new limit has not been disclosed, but the updated guidelines are expected to take effect in March. Capital Ethiopia
Ethiopia and Russia Agree to Trade in Local Currency
Ethiopia has joined Nigeria and Tunisia in a new agreement with Russia to trade in local currencies, bypassing the need for foreign exchange. This move is aimed at addressing foreign currency shortages and strengthening trade relations. Russia, expanding its non-dollar trade agreements post-Ukraine war, now has 40 countries involved in the system.
Ministry of Health Announces Termination of Contracts for Employees Funded by USAID and CDC
The Ministry of Health has notified all government health offices to terminate contracts for employees funded by USAID and CDC. This decision follows a directive from the US government, which informed the Ministry that any work or payments funded through CDC or USAID budget support must cease by February 17, 2017. Capital Ethiopia
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