This week’s newsletter marks the first edition following the historic launch of the Ethiopian Securities Exchange (ESX), a milestone our platform has long awaited. With the bell now rung, we are embarking on an exciting new chapter. As we begin this journey, our commitment to progress and innovation remains unwavering. Get ready for a fresh start and a bright future ahead.

Ethiopia Launches First Stock Exchange

Prime Minister Abiy Ahmed officially launched the Ethiopian Securities Exchange (ESX), marking a historic milestone for the country’s financial landscape. The exchange is expected to play a key role in job creation, large-scale projects, and economic growth.

Major state-owned enterprises, including Ethiopian Investment Holding, have already secured stakes in the exchange. Over 50 companies are projected to be listed on the ESX within the next five years, driving Ethiopia’s economic development.

Wegagen Bank Becomes First to List on Ethiopian Securities Exchange

Wegagen Bank has made history as the first company to list its shares on the newly launched Ethiopian Securities Exchange (ESX). The listing marks a significant milestone in modernizing the bank’s operations and aligns with Ethiopia’s evolving financial sector.

The bank’s strategic efforts, including capacity-building and working with international consultants, have positioned it as a pioneer in the country’s capital market, contributing to its growth and offering new opportunities for investors.

Ethio telecom Extends Public Share Offering Deadline

Ethio telecom has extended the deadline for its public offering of a 10% stake by five weeks, now ending on February 14, 2025. The offering, launched in October 2024, includes 100 million shares at 300 birr each, with a minimum purchase of 33 shares and a maximum of 3,333 shares.

Shares are sold via Telebirr, but skepticism surrounds the offering’s ambitious targets and the reliability of financial data in the prospectus, including a re-evaluated asset value of 130 billion birr. The extension signals challenges in meeting the original January 3 deadline.

Customs Commission Extends Franco Valuta Deadline

The Ethiopian Customs Commission has extended the franco valuta import deadline by another 30 days, following complaints from importers. Initially reintroduced in August 2024 to address forex shortages, the scheme has faced scrutiny over alleged misuse and its sustainability amid broader economic reforms.

Ethiopia Eyes WTO Membership Amid Smuggling Concerns

Ethiopia is advancing its bid to join the World Trade Organization (WTO), with its fifth round of negotiations set for Geneva in two months. However, officials warn that smuggling poses a significant challenge. Trade Minister Kassahun Gofe emphasized that combating illicit trade is vital to meeting WTO standards, as smuggling distorts markets and costs the economy billions annually. Efforts to address these issues are underway, including stakeholder consultations led by the Ethiopian Chamber of Commerce. Ethiopia’s WTO aspirations align with broader economic reforms aimed at fostering sustainable growth and aligning with global trade norms. Capital Ethiopia

Fuel Prices Adjusted in Ethiopia

The Ministry of Trade and Regional Integration has announced new fuel prices effective January 7, 2025. In Addis Ababa, gasoline now costs ETB 101.47 per liter, diesel and kerosene ETB 98.98, and aviation fuel ETB 109.56. This adjustment reflects global market trends and government efforts to stabilize fuel pricing. The Ministry has urged compliance with the revised rates and warned against price manipulation. The change may influence transportation costs and inflation, prompting budget adjustments for households and businesses.

BIT Mining Expands to Ethiopia

Chinese Bitcoin mining giant BIT Mining has acquired a 51-megawatt facility in Ethiopia for $14 million, capitalizing on the country’s low electricity costs—70% cheaper than Ohio. The facility will house 18,000 mining machines, allowing the company to recycle older equipment and extend profitability. While Ethiopia offers abundant energy, it accounts for just 1.5% of global Bitcoin hash power due to regional instability. BIT Mining’s move could boost the country’s mining potential, with CEO Xianfeng Yang highlighting the expansion’s role in enhancing competitiveness and long-term growth. CCN

Lion Bank Reports 26% Profit Growth

Lion International Bank posted a pre-tax profit of 940.7 million birr for the 2023/24 fiscal year, a 26% increase from the previous year. The bank’s total assets reached 43.1 billion birr, with deposits growing to 35.6 billion birr. Key achievements include issuing 5.4 billion birr in loans, opening 310,000 new accounts, and expanding its digital services to nearly one million users. Lion Bank also opened 18 new branches, bringing its total to 306, and installed 80 new ATMs to improve cash flow services. The bank allocated 28 million birr to community initiatives, reflecting its commitment to social responsibility, and continues to support job creation with a workforce of 6,365 employees.

Global Bank Ethiopia Reports 1.03 Billion Birr Profit

Global Bank Ethiopia achieved a pre-tax profit of 1.03 billion birr in the last fiscal year, with revenue exceeding 4 billion birr—a 37% increase from the previous year. Deposits rose to 18.22 billion birr, while loans reached 15.7 billion birr with a low 2% default rate. The bank’s paid-up capital grew by 22% to 2.48 billion birr, and net profit hit 757.5 million birr with a 33.2% dividend yield. Global Bank also secured land in Addis Ababa to build its new headquarters, further enhancing its infrastructure. Capital Ethiopia

Coffee Prices Soar in Ethiopia Amid Export Boom

Coffee prices in Ethiopia have surged to over 300 birr per kilogram. The rise is driven by increased exports, with specialty coffee exports jumping from 20% to 45%, limiting local supply. Officials attribute the price hike to exporters prioritizing international markets and higher-quality coffee being allocated for export. The government is exploring strategies to stabilize prices and ensure affordable access for domestic consumers, as coffee remains a cultural staple in Ethiopia. Capital Ethiopia

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That’s a wrap for this week! For more updates, head over to our website or follow us on social media.

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