- IMF disburses $248M to Ethiopia under the ECF program.
- Wegagen Bank launches E-Birr wallet;
- Dashen Bank debuts a Super App.
- Awash Insurance partners with Safaricom M-PESA for digital payments.
- Ethiopia expands EV charging stations, aims for 500,000 EVs by 2035.
- UAE delegation explores investment;
- FirstBank Nigeria plans Ethiopian entry.
- Ethiopia-Djibouti Railway reports first profit.
- AfDB supports economic reforms.
IMF Approves $248 Million for Ethiopia Under ECF Program
The IMF has completed the second review of Ethiopia’s Extended Credit Facility (ECF), releasing $248 million to support the country’s balance of payments. This is part of a $10.7 billion package aiding Ethiopia’s Homegrown Economic Reform Agenda (HGER). Total disbursements now stand at $1.611 billion.
Ethiopia has met all quantitative performance criteria but faces challenges in expanding social safety nets. Progress in structural benchmarks, including audited accounts for the National Bank, continues. Key reforms like a flexible exchange rate, tax improvements, and fiscal discipline have strengthened macroeconomic stability.
Debt restructuring under the G20 Common Framework and financial sector modernization remain priorities. The IMF praised Ethiopia’s reform efforts, emphasizing the need for sustained fiscal and monetary stability to support inclusive growth.
Wegagen Bank Launches E-Birr Mobile Wallet
Wegagen Bank, in partnership with E-Birr Mobile Financial Services, has launched the E-Birr mobile wallet to enhance financial accessibility and inclusion. The service allows users to open accounts, transfer funds, make payments, and manage transactions via a mobile app or USSD (*602#), even without a bank account.
Launched in Shire town, the wallet supports agency banking, linking bank accounts, and payments for utilities, airtime, and more. Wegagen Bank, with over 443 branches and 74.6 billion birr in assets, recently became the first company listed on the Ethiopian Securities Exchange, solidifying its leadership in digital banking innovation.
Dashen Bank Unveils Ethiopia’s First Banking Super App
Dashen Bank has launched Ethiopia’s first-ever banking Super App, redefining digital banking with an all-in-one platform for personal and business services. The app offers instant transfers, credit services, AI-powered self-onboarding, interest-free banking, and a budget management tool to help users track spending.
CEO Asfaw Alemu highlighted the app as a milestone in providing innovative, reliable, and customer-focused digital solutions. The launch underscores Dashen Bank’s commitment to staying “One Step Ahead” in modern banking.
Awash Insurance Partners with Safaricom M-PESA
Awash Insurance has teamed up with Safaricom M-PESA to offer mobile payment solutions for insurance services. Customers can now pay premiums and manage transactions via M-PESA, enhancing convenience, security, and accessibility. Awash Insurance CEO Jibat A. Faji emphasized the partnership’s role in advancing digital financial inclusion, while Safaricom M-PESA CEO Elsa Muzollini highlighted the goal of simplifying customer interactions and driving Ethiopia’s digital transformation. This collaboration strengthens efforts to integrate digital financial services, empowering consumers and contributing to Ethiopia’s evolving digital economy.
Ethiopia Plans Nationwide Expansion of EV Charging Stations
Ethiopia announced plans to expand electric vehicle (EV) charging infrastructure, installing stations every 50–120 km. A new directive outlines licensing, tariffs, power standards, and security for charging facilities, according to Bahru Oljra from the Petroleum and Energy Authority. With over 100,000 EVs on the road, Ethiopia aims to grow this to 500,000 in a decade, replacing 95% of fuel-powered vehicles. The government’s push for electric mobility includes last year’s ban on importing gasoline and diesel vehicles, driven by rising global fuel prices.
UAE Delegation Explores Investment Opportunities in Ethiopia
A high-level delegation from Reach Digital Company-UAE, led by CEO Feras Neim Mohammed Abusharkh, began a pre-investment visit to Ethiopia on January 13, 2025. The delegation met with Ethiopian Investment Commissioner Zeleke Temesgen, who reaffirmed Ethiopia’s commitment to facilitating private investments. Reach Digital, a leader in digital transformation and IT services since 1999, expressed interest in bringing its expertise to Ethiopia, aiming to foster digital growth in the region. The visit, coordinated by Ethiopia’s UAE Embassy, highlights strengthening economic ties and Ethiopia’s emergence as a hub for innovation.
Ethiopia-Djibouti Railway Achieves Profitability
For the first time since its 2018 launch, the Ethiopia-Djibouti Railway reported profitability in Q4 2024, announced CEO Takele Uma on January 14, 2025. This milestone follows a comprehensive review of 2024 operations and marks the start of a three-year strategic plan aimed at further transformation. Despite challenges like reduced locomotive availability and underutilized freight capacity (38% of potential), the railway achieved this milestone five months after management transitioned from the China Railway Construction Corporation to Ethiopian and Djiboutian authorities. Spanning 750 km and built with a $4 billion investment, the railway plays a critical role in regional trade, including its first livestock exports by rail in 2024.
FirstBank Eyes Ethiopian Market Entry
Nigeria’s FirstBank has announced plans to enter Ethiopia’s financial market, capitalizing on recent banking sector liberalization. Deputy Managing Director Ini Ebong highlighted Ethiopia’s strategic importance, joining Angola and Cameroon in the bank’s African expansion strategy. With a history of successful expansions across Africa and Europe, FirstBank aims to leverage acquisitions to establish a presence in Ethiopia, one of Africa’s largest economies. The move reflects a growing trend of African banks seeking regional growth as Ethiopia modernizes its financial sector, attracting foreign investment and intensifying competition.
EIH and AfDB Discuss Economic Reforms and Startup Ecosystem
Brook Taye, CEO of Ethiopian Investment Holdings (EIH), met with Solomon Adegbie-Quaynor, AfDB Vice President, to explore collaboration on financial tools for State-Owned Enterprise (SOE) transformation and strengthening Ethiopia’s economic ecosystem. AfDB has been instrumental in supporting Ethiopia’s homegrown economic reforms, contributing to the establishment of the Capital Market and fostering innovation in the startup ecosystem to empower future enterprises.
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