Addis Ababa Opens Landmark Goro–Bole Airport VIP Corridor

Addis Ababa Opens Landmark Goro–Bole Airport VIP Corridor “Our dreams will come true through our relentless work every day, every hour, every minute,” declared Mayor Adanech Abebe today as Addis Ababa unveiled one of its most ambitious urban infrastructure projects yet—the Addis International Convention–Goro–Bole Airport VIP Terminal Corridor. A Major Step in Addis Ababa’s Urban Renewal The newly opened corridor is part of the city’s second phase of eight corridor projects and marks the fourth to be completed. It links the Addis International Convention Center directly to Bole Airport’s VIP Terminal while also connecting the Anbesa Garage–Jacross Goro corridor and the Bole Airport Junction–CMC corridor. Spanning over 290 hectares, the development stretches 12.74 kilometers and integrates 29.4 kilometers of pedestrian walkways, 15.2 kilometers of bicycle paths, and 12 kilometers of modern storm drains, making it a showcase of green, inclusive, and people-centered urban planning. Key Facilities and Features The corridor is not just a road project—it’s a multifunctional urban hub equipped with: 5 bus and taxi terminals accommodating more than 550 vehicles. 4 parking lots with space for over 800 cars. 17 taxi and bus bays for smooth passenger flow. 5 kilometers of riverbank development and 2 new bridges. 3.6 kilometers of drinking water supply infrastructure. 669 roadside lights for safety and accessibility. To enhance community life, the project also includes: 4 plazas for social gatherings. 41 cafes, 41 public toilets, and 9 children’s playgrounds. 7 sports fields and a 130-hectare riverside green development. Economic and Social Impact According to Mayor Adanech, the corridor is transforming both mobility and livelihoods: Over 320 buildings renovated and 350 new commercial shops opened. Significant employment opportunities created during and after construction. Enhanced business activity, reduced traffic congestion, and a cleaner, greener environment for residents. A City Built by Collective Effort Mayor Adanech expressed gratitude to experts, leaders, and the local community who worked “tirelessly” to deliver the project on time and within budget. She emphasized that Addis Ababa’s broader corridor program is more than infrastructure—it is a vision for an inclusive, connected, and resilient city.

Haile Hotel Shashemene Reopens After 600M Birr Expansion

Haile Hotel Shashemene Reopens After 600M Birr Expansion Haile Hotel Shashemene Reopens After 600M Birr Expansion: 7 Big Upgrades Guests Will Love Haile Hotel Shashemene is back in business! After undergoing a large-scale renovation and expansion, the iconic hotel has reopened its doors with modern facilities, bigger capacity, and improved services. The hotel, part of Haile Hotels & Resorts Group, a subsidiary of Haile & Alem International Plc, was officially inaugurated on August 24, 2017, marking the completion of a transformation project that took less than two years. From 40 to 84 Guest Rooms One of the biggest highlights of the expansion is the increase in accommodation. The hotel has doubled its capacity from 40 to 84 guest rooms, giving both domestic and international visitors more options to enjoy their stay in Shashemene. New Dining and Entertainment Options Guests can now choose from various bars and modern restaurants designed to provide a vibrant culinary experience. The expanded dining facilities are expected to make Haile Hotel Shashemene a new hotspot for locals and tourists alike. Swimming Pool and Luxury Spa The hotel now offers a swimming pool along with a spa featuring sauna and steam rooms, giving guests a full wellness and relaxation experience. Fully Equipped Gymnasium Fitness enthusiasts will appreciate the addition of a state-of-the-art gymnasium, making the hotel a well-rounded destination for both leisure and business travelers. Event and Conference Halls With three multipurpose halls designed for meetings, weddings, and cultural gatherings, the hotel is positioning itself as one of the region’s top venues for events. High-Speed Internet Upgrades Recognizing the importance of digital connectivity, the hotel has significantly upgraded its high-speed internet services, ensuring that both business and leisure guests stay connected seamlessly. Job Creation and Economic Impact Beyond its facilities, the hotel’s reopening has had a strong impact on the local economy. 210 residents have already secured employment. The number is expected to reach 300 permanent jobs as services continue to expand. This expansion underscores Haile Hotels & Resorts Group’s commitment not only to hospitality but also to community development. A 600 Million Birr Investment in Service Excellence According to Managing Director Ato Gadisa Girma, more than 600 million birr was invested in the renovation and expansion. He emphasized that guests will find the same work culture and service excellence that has become the hallmark of Haile Hotels & Resorts across Ethiopia. Service Built on Possibility Everywhere The reopening of Haile Hotel Shashemene is more than a business milestone. It reflects the group’s vision to deliver high-quality hospitality rooted in Ethiopian culture and international standards—true to its guiding principle: “Service built on the principle of possibility everywhere!”

GERD Lake: Africa’s New Inland Sea (74 BCM, 1,874 km², 70 Islands)

GERD Lake: Africa’s New Inland Sea (74 BCM, 1,874 km², 70 Islands) Short take: Ethiopia’s Grand Ethiopian Renaissance Dam (GERD) has created GERD Lake—a water body big enough to rank among Africa’s giants, with the power to reshape hydrology, ecology, and livelihoods across the Blue Nile. Here’s what its size really means—and why it’s so interesting. How big is “big”? At full supply level (FSL)—about 640 m a.s.l.—GERD Lake stores 74 billion cubic meters (BCM) of water. That’s roughly 1.5× the Blue Nile’s long-term annual flow at the dam site, which gives Ethiopia a rare ability to smooth floods and regulate dry-season releases. Spatially, the surface stretches to ~1,874 km², with a serpentine reach of up to 246 km as it threads the canyons of Benishangul-Gumuz. Think of it as a deep, dendritic lake carved into a mountain river—high volume, relatively compact surface, and a lot of depth where it counts. For context, by volume it sits #4 in Africa (after Kariba, Volta, Nasser) and roughly #7–8 globally (in the Williston/Krasnoyarsk club). By area, it’s smaller than the sprawling mid-century mega-reservoirs but still a continental heavyweight. The numbers that matter Total capacity: 74 BCM Active storage: ~59.2 BCM (power + regulation) Dead storage: ~14.8 BCM (head + sediment accommodation) Surface area at FSL: ~1,874 km² (shrinks to ~606 km² at minimum operating level) Max water depth: ~140 m Average depth (est.): ~39–41 m (high for such a large lake) That depth profile is crucial. GERD Lake floods a narrow, steep gorge, so it stores a lot of water without an enormous surface footprint. The result: lower evaporation per unit of storage than flatter, shallower basins—an engineering advantage in a warming climate. How we got here Filling began in July 2020 with ~4.9 BCM, then stepped up each rainy season: ~13.5 BCM (2021), ~22 BCM (2022), and ~41.5 BCM (2023). Each year, satellite images captured the river’s metamorphosis into a lake—shorelines spreading, inlets forming, and hilltops turning into islands. A lake that creates land One of GERD Lake’s most unexpected features is its archipelago: roughly 70 new islands formed from former ridges and summits. Sizes range from tiny (≈5 ha) to substantial (8–20 km²). Policymakers tout these as a “great gift,” with early visions for boat-based ecotourism, birding, shoreline lodges, and even floating hospitality concepts. Beyond tourism, the islands offer a living laboratory for island biogeography: how species colonize, adapt, and diversify on newly isolated landmasses with precisely known “birth dates.” The fishery boom (and the fine print) Before GERD, local fisheries were modest—~2,400 tons/year. With the lake, production now exceeds 5,800 tons, and experts peg sustainable potential at 10,000–15,000 tons/year. Youth cooperatives—~64–74 associations employing 800–1,600+ people—have sprung up, targeting high-value species such as Nile Perch (trophies up to 70–80 kg), tilapias, and catfish. Two cautions: Boom-then-normalize: Early surges are fueled by nutrients from flooded vegetation. Yields typically stabilize lower once that pulse fades. Biodiversity trade-offs: Apex predators like Nile Perch can crowd out native riverine species. Smart mesh sizes, closed seasons, and habitat safeguards will decide whether this becomes a durable blue-economy win or a short-lived bonanza. The invisible lake below the lake Here’s the most intriguing scientific storyline. Between 2019–2022, gravity satellite analyses suggest ~20 BCM of water seeped into fractured basement rocks—almost one-for-one with visible impoundment over that period. Translation: GERD didn’t just fill a surface reservoir; it appears to have recharged a massive groundwater body. Why it’s interesting: Hydrology: Raised water tables could feed springs, sustain dry-season flows, and change local wells. Geotechnics: Added pore pressure along faults is a known trigger for reservoir-induced seismicity; monitoring matters. Policy: Transboundary models that track only surface storage may underestimate where the water is going, complicating debates over “who lost how much” during fill years. Evaporation, climate nudge, and mosquitoes Evaporation over GERD Lake likely runs 1.7–4+ BCM/year—a permanent system loss but moderated by the lake’s favorable depth/area geometry and cooler highland climate relative to, say, Lake Nasser. Microclimate effects—higher humidity, narrower day–night temperature swings—are expected along shorelines. Rainfall changes are less certain and, so far, not clearly correlated with reservoir growth. Public-health planners, however, should watch for expanded vector habitats: warmer nights + stable littoral zones can favor Anopheles breeding. Routine entomology, larval source management, and health posts around fisher settlements are prudent early investments. The “great sediment trap” (and who gains) The Blue Nile carries immense sediment loads—peak concentrations just before flood crest—and GERD Lake will capture nearly all of it, on the order of hundreds of millions of cubic meters annually. Upstream cost (Ethiopia): Gradual infilling reduces storage and long-term generation unless mitigated by watershed restoration (terracing, cover crops, reforestation) and sediment routing tactics. Downstream dividend (Sudan & Egypt): A cleaner river extends dam lifespans (Roseires, Sennar, Aswan), cuts dredging, and improves canal operations. Hidden negative: Without nutrient-rich silt, floodplain soils depend more on fertilizers; “hungry water” (sediment-starved releases) can erode riverbeds and banks. Interdependence by design GERD’s regulation will flatten the Blue Nile’s extremes: fewer disastrous floods in Sudan, steadier flows in dry months, and new coordination puzzles with Aswan. Two top-ten global reservoirs now sit on one river under different sovereigns. That reality—hydraulic interdependence—isn’t a risk by itself; it’s an opportunity for data-driven operations that reduce basin-wide evaporation, hedge droughts, and optimize power for all three riparians. What makes GERD Lake interesting (not just big) Efficient geometry: Deep storage in a mountain gorge = less evaporation per BCM than flatter lakes. New landscapes: ~70 islands unlock a rare, date-stamped experiment for ecology—and a canvas for lake-based tourism if done sustainably. Blue-economy flywheel: Fisheries + boat transport + cold-chain logistics can regionalize growth if Ethiopia builds jetties, roads, ice plants, and compliance labs. Groundwater recharge at scale: The “second reservoir” underground could become a climate resilience asset if monitored and managed. Geopolitical lever: Together with Aswan, GERD effectively turns the Eastern Nile into a modern, coupled water system—where transparency (real-time levels, releases, salinity, temperature, sediment) is the cheapest insurance against mistrust. The to-do list for durability Sediment management upstream (nature-based solutions) + operational experiments to push silt where it harms least. Fishery governance (co-op licensing, mesh regulation, seasonal closures) and cold-chain build-out to lift prices and cut spoilage. Vector control embedded in lakeside development plans. Seismic & deformation monitoring (GNSS, InSAR, microseismic arrays) to quantify seepage effects. Basin transparency: shared dashboards for inflows, evaporation, storage, releases, and sediment proxies to turn suspicion into coordination. Bottom line: GERD Lake isn’t just enormous—it’s strategically shaped, economically catalytic, and scientifically novel. Its size delivers leverage; its design delivers efficiency; its surprises—especially the groundwater signal—open a fresh chapter in how mega-reservoirs can function in complex river basins. Handle it well, and GERD Lake becomes not merely Africa’s newest inland sea, but a living system that powers cities, seeds industries, and—done right—earns trust downstream.

Al-Amoudi’s Fortune Surges Back to $8B as Preem Battles Energy Market Headwinds

Al-Amoudi’s Fortune Surges Back to $8B as Preem Battles Energy Market Headwinds Ethiopia’s Richest Man Rebounds Ethiopian-born billionaire Mohammed Al-Amoudi has seen his fortune rebound sharply in 2025, climbing to nearly $8 billion after a series of strategic moves and despite mounting challenges at his flagship energy company, Preem AB. The turning point came in April when Al-Amoudi sold Svenska Petroleum Exploration, adding $2.2 billion to his personal wealth. His stake in Preem has also gained value, rising from $5.09 billion to $5.47 billion, offsetting earlier declines linked to weaker gold assets and the Svenska divestment. Bloomberg’s Billionaires Index now places him firmly among Africa’s wealthiest industrialists. Preem’s Struggles in Q2 Preem, Sweden’s largest oil and biofuels supplier, reported $2.7 billion in second-quarter 2025 revenue, down 28% from last year. The company cited weaker diesel and gasoline margins, softer demand, and a scheduled turnaround at its Gothenburg refinery. The weaker results pushed Preem to a net loss of $93.6 million, compared with a profit of $50.8 million a year earlier. Operating cash flow slipped to –$55.4 million, while adjusted EBITDA fell to $73.2 million, underscoring the challenging market conditions for European refiners. Global Business Empire Beyond Preem, Al-Amoudi controls a diversified global portfolio. His Midroc Group in Ethiopia, along with Granitor and Midroc Europe in Sweden, cover industries from construction to mining. In Saudi Arabia, his Naft Services fuel retailer is valued at $636 million, giving him a solid foothold in the Middle East’s energy retail sector. Analysts argue that this breadth has helped him withstand volatility and maintain his position as Ethiopia’s richest man and one of Africa’s most influential industrialists. Betting on Renewables In a sign of long-term strategy, Preem inaugurated its Synsat renewable facility in Lysekil this quarter. The plant is expected to boost renewable fuel output by nearly 900,000 cubic meters annually, positioning the company as a major player in Europe’s clean energy transition. The launch coincides with VARO Energy’s acquisition of Corral Petroleum Holdings AB, Preem’s parent company — a deal that analysts say could reshape Sweden’s energy sector and accelerate its pivot toward renewables. Bottom Line: Even as Preem weathers financial turbulence, Mohammed Al-Amoudi’s fortune and influence are on the rise. With a portfolio spanning Ethiopia, Europe, and the Middle East, he remains one of the most resilient and consequential figures in global energy and industry.

The Big Winners: Ethiopian Investment Holdings’ 2017 Review of Ethiopia’s Economic Giants

The Big Winners: Ethiopian Investment Holdings’ 2017 Review of Ethiopia’s Economic Giants Ethiopia’s State Enterprises Post Billions in Earnings in EFY 2017 Ethiopia’s state-owned enterprises (SOEs) remain at the heart of the national economy. From telecom revenues and aviation forex earnings to power generation and industrial parks, the EIH 2017 EFY portfolio review reveals both strong growth and structural challenges. This in-depth analysis breaks down sector performance, rankings, and the strategic direction ahead, with interactive charts and definitions to help readers navigate key acronyms. Key Highlights at a Glance Top Earners by Revenue The undisputed leaders remain Ethio Telecom, Ethiopian Airlines, and the Commercial Bank of Ethiopia. While telecom dominated domestic revenue and digital payments, the airline secured vital forex, and CBE anchored the financial system with trillions in deposits. Meanwhile, utilities like EEU and large-scale construction corporations such as ECWC also made major contributions to overall earnings. Top Revenue (ETB Billions) — Selected Enterprises Profit Growth Leaders Some of the fastest-growing enterprises were not the largest. The Ethiopian Lottery Service nearly tripled profits (+193%), while Ethiopian Shipping & Logistics doubled profits (+99%). Even Ethiopian Airlines, already a massive player, delivered +37% net profit growth. The National Alcohol & Liquor Factory also posted steady growth at +17%. Profit Growth (%) — Leaders Forex & Export Earnings Foreign exchange remains Ethiopia’s economic bottleneck. Here, a handful of SOEs stand out. Ethiopian Airlines generated a staggering $7.6 billion in forex revenue. Ethiopian Electric Power added $335 million in energy exports, while the Industrial Parks Development Corporation contributed $124 million in manufactured exports. Even smaller players like the National Veterinary Institute added forex with $750,000 of regional exports. Forex & Export Earnings (USD Millions) Explore the Sectors The portfolio spans telecom, transport, finance, construction, energy, and agriculture. Expand each sector for enterprise-level highlights and see how digitization, governance, and investment priorities tie back to growth. Ethio Telecom: Revenue +72%; EBITDA 47%; Telebirr ETB 2.38T processed; 54.8M users. Ethiopian Airlines: Revenue $7.6B; net profit +37%; saved 42% costs vs plan; route and fleet expansion continued. EEP: Generated 29,480 GWh; sold 25,070 GWh; export sales $335M; GERD turbines added capacity. EEU: ETB 51.7B revenue; ETB 4.6B net income; 5.2M customers; ongoing network expansion. EPSE: 95% purchase targets, 99% sales; digitized supply and payments; LPG/ethanol blending push. ECWC: Revenue ETB 18.3B (+80.5%); 34 projects; prefabricated housing growth. EEC: ETB 8.9B revenue (+81%); 111 design, 272 supervision, 53 construction; $1.1M exports. EEG: Revenue +48%; agri-machinery +62%; power equipment +37%. FHC: ETB 9.34B revenue; USD 1.36M forex. CBE: Deposits ETB 1.67T; loans ETB 458.4B (88% private sector); collections ETB 285.7B (+66.9%). DBE: ETB 18B revenue (+30.7%); loan collections ETB 24B (+51.6%). EIC: Underwriting 118% of plan; investment income 125% of target; push for digitization. ESIG: 163,290 tons sugar (+34.8%); ETB 15.6B revenue; reforms and mechanization ongoing. NALF: ETB 2.6B revenue; +17% PBT growth; market expansion. NVI: ETB 482M revenue; ~$0.75M exports; vaccine and drug production scale. EIIDE/CIC: EIIDE +82% revenue (112% targets), CIC 25% EBITDA; chemicals growth. EABC: 467k quintals improved seed (+10.4%); 2.32M tons fertilizer. Ethiopost: +90% revenue; 11% EBITDA; virtual PO boxes and e-commerce services. ELS: +193% profit growth; +96% revenue. BSPE: 178.7M sqm printed (92% capacity); ETB 606M PBT. EMPDE: ETB 633M revenue; ETB 108M PBT; performance in decline. ESL: 4.5M tons handled; +99% PBT growth; export cargo contributed. ETRE: ETB 1.9B revenue; ETB 1.34B PBT; traffic growth and safety focus. IPDC: $22M FDI; $124M exports; ~50k jobs; +92% revenue; audit/data upgrades pending. Strategic Outlook The review shows Ethiopia’s SOEs both as economic engines and policy instruments. Telecom and aviation are continental leaders, while power utilities and industrial parks lay foundations for industrialization. Yet challenges remain: debt burdens at rail, underperforming factories, and forex shortages. EIH emphasizes a consistent playbook: digitalize operations, diversify products, cut costs, and expand regional markets. Whether through Telebirr’s digital payments, GERD-enabled electricity exports, or industrial parks attracting FDI, the path forward is about making these enterprises globally competitive and fiscally resilient. For households, these numbers translate into better connectivity, more reliable power, and gradually improving availability of essentials. For the private sector, they highlight opportunities in logistics, energy services, fintech, and manufacturing supply chains linked to industrial parks. For policymakers, they underscore the need to align SOE reforms with macro stability, including forex management and debt sustainability. Analysis compiled from EIH EFY 2017 performance dialogue. Where only growth rates were disclosed, charts use available values.

Investor Demand Doubles in Ethiopia’s 19.7B ETB Treasury Bill Auction

Investor Demand Doubles in Ethiopia’s 19.7B ETB Treasury Bill Auction Addis Ababa – August 29, 2025 – Ethiopia’s latest Treasury Bill (T-bill) auction has shown booming investor interest, with bids coming in at more than double the amount offered, according to data released by CBE Capital Investment Bank. What Happened? On August 20, 2025, the National Bank of Ethiopia offered 19.7 billion birr worth of Treasury Bills for sale. But investors were eager to buy much more, submitting bids totaling 41.9 billion birr. This is a sign of growing demand from banks, businesses, and individuals looking for safe and reliable investment opportunities. Auction Results by Maturity Treasury Bills are short-term government debt instruments that come with different repayment periods. Here’s how the auction played out: 28-day bills: Yield (interest) was 13.88% 91-day bills: Yield was 14.39% 182-day bills: Yield was 14.93% 364-day bills: Yield was 17.45% This means that the longer investors are willing to keep their money with the government, the higher the interest they receive in return. Demand vs. Supply The auction showed “more money chasing fewer T-bills.” In other words, investors are eager to put money into T-bills, but the supply is limited. This strong appetite reflects growing trust in government securities and a desire for stable, low-risk returns amid economic reforms. Trend in Yields Compared to six months ago (February 2025): Short-term T-bill rates (28-day & 91-day) have slightly dropped, making them cheaper for the government. Longer-term rates (182-day & 364-day) have stayed relatively stable, signaling steady investor confidence. Why It Matters For ordinary people, this shows that: The Ethiopian government is raising money to cover short-term financing needs without printing more cash. Investors are confident enough to lend money to the government. Higher yields on long-term bills could attract savers who want better returns than what banks usually offer. In simple terms: The government asked for 19.7 billion birr, but investors offered 41.9 billion birr – more than twice the amount! This shows Ethiopia’s Treasury Bills are in high demand, and many see them as a safe place to put money while earning steady interest.

Ethiopia to Ease Bank Lending Cap, Unlocking 1.3 Trillion Birr in Credit

Ethiopia to Ease Bank Lending Cap, Unlocking 1.3 Trillion Birr in Credit ADDIS ABABA, Ethiopia – August 29, 2025 – Ethiopia is set to lift the long-standing cap on bank lending starting next month, a move that could inject more than 1.3 trillion birr into the economy, according to officials at the Ministry of Finance. The policy shift, scheduled to take effect in September, will allow banks to expand credit supply in line with market demand, easing a restriction that has constrained lending for several years. The new lending volume represents a 500 billion birr increase compared to last year, underscoring the government’s push to expand financial access for businesses and households. Finance Minister Eyob Tekalign (PhD) confirmed the plan, noting that safeguards have been put in place to prevent runaway inflation. “The release of such a large volume of credit must be accompanied by prudent monetary oversight to ensure that it does not overheat the market,” he said in a briefing. Inflation Risks and Precautions Ethiopia has been battling double-digit inflation for years, with food prices and currency depreciation fueling household pressures. Analysts warn that while additional liquidity could support investment and private-sector growth, it also risks stoking demand-side inflation unless carefully managed. The Ministry of Finance said it is working in close coordination with the National Bank of Ethiopia (NBE) to ensure that the credit expansion is rolled out gradually, with targeted oversight of high-risk sectors. Measures under consideration include stricter reserve requirements, phased liquidity injections, and closer monitoring of bank lending practices. A Boost for Businesses and Consumers The easing of the credit ceiling is expected to benefit businesses struggling with financing constraints, particularly in manufacturing, construction, and agriculture—sectors seen as critical to Ethiopia’s growth strategy. For households, easier access to credit could improve housing and consumer financing, though authorities remain cautious about over-leveraging risks. Economists suggest that if managed effectively, the reform could provide a much-needed stimulus for Ethiopia’s slowing economy, attracting private investment and improving confidence in the financial sector. With 1.3 trillion birr set to flow into the financial system—half a trillion birr more than last year—the coming months will test Ethiopia’s ability to balance growth with stability. The government insists that it has learned from past episodes of inflationary shocks and is prepared to implement corrective measures if needed. “The key is balance,” said Minister Eyob. “We must support growth and private investment while maintaining discipline in monetary policy.”

How Ethiopia’s Economic Future Is Being Anchored in Its Peripheries

How Ethiopia’s Economic Future Is Being Anchored in Its Peripheries For decades, Ethiopia’s economy has been tethered to its central highlands. Addis Ababa’s industrial parks, Oromia’s coffee, and Tigray’s textiles once defined the country’s growth model. That geography now looks exhausted. Years of civil war, insurgency and political strife have hollowed out these “core” provinces, leaving shattered infrastructure, declining exports and weary investors. The government’s new bet is on its margins. From the forests of Benishangul-Gumuz to the deserts of the Somali region, Addis Ababa is orchestrating a strategic rebalancing: harnessing neglected peripheries as anchors of growth. Three mega-projects dominate this experiment—the Grand Ethiopian Renaissance Dam (GERD), the Kumruk gold mine and a $2.5bn Dangote fertilizer complex. Individually, each project answers a pressing national need: energy, hard currency, food security. Collectively, they represent a bold attempt to redraw Ethiopia’s economic geography and insulate growth from its unstable heartlands. The wager is clear: the periphery, long dismissed as Ethiopia’s hinterland, is now the stage for its economic future. GERD: more than megawatts Few projects capture Ethiopia’s defiant streak like the GERD. Built without World Bank loans and financed largely through patriotic bond sales, the dam has become a national talisman. As it prepares for inauguration in September 2025, it is set to generate 5,150MW of electricity—more than doubling current supply. Cheap power (around $0.04/kWh) could lure manufacturers and miners. Already, Ethiopia sells surplus electricity to Kenya, Djibouti and Sudan, earning $338m in foreign exchange last year. With the GERD at full tilt, annual power revenues could hit $1bn, while raising domestic electrification rates from barely half the population today to nearly 80%. But GERD’s significance is political as much as economic. In rejecting colonial-era Nile treaties that favoured Egypt, Ethiopia is using hydropower as diplomacy, offering energy trade instead of water allocation. Whether Cairo and Khartoum embrace that bargain remains uncertain. Closer to home, the project has displaced Gumuz and Berta communities and risks rapid sedimentation unless Ethiopia manages its eroded highlands. The dam is an engine of sovereignty—but also a test of environmental and social stewardship. Gold at Kumruk: lifeline or curse? If electricity is Ethiopia’s future, hard currency is its present pain. The birr has shed value amid chronic dollar shortages, undermining everything from fuel imports to medicine supplies. The Kumruk mine in Benishangul-Gumuz promises some relief. Allied Gold, a private operator, is investing $500m to extract nearly 290,000 ounces of gold annually, worth $600m–$670m at today’s prices. Royalties and taxes could funnel $100–150m to the treasury each year. For a cash-strapped government, those sums matter. For locals, the mine could create 1,500 jobs and extend power lines around Asosa. Yet the risks are familiar. Open-pit cyanide mining in a fragile ecosystem threatens water and land. Artisanal mining has already scarred the landscape with mercury contamination and child labour. Governance is the hinge: without strict oversight, Kumruk could deepen grievances rather than ease them. The question is whether Ethiopia can avoid the “resource curse” that has plagued so many African extractors. Kumruk will not decide the answer alone—but it will set an important precedent. Fertilizer in Gode: food and influence Few commodities matter more to Ethiopia’s 70% rural workforce than fertilizer. The country imports over 90% of its needs, leaving farmers hostage to global price spikes. Between 2020 and 2022, costs jumped 170%, squeezing harvests and widening food insecurity. The Dangote Group’s plant in Gode, Somali region, aims to flip the equation. Backed by $2.5bn and Ethiopian Investment Holdings, the facility will churn out 3m tons of urea annually—four times domestic demand. Fed by local natural gas via a new pipeline, the plant promises to secure supplies, stabilize prices and boost yields. Its surplus will not go to waste. Positioned on the Djibouti trade corridor, the plant could export to Kenya, Somalia and beyond, turning Ethiopia into a regional fertilizer hub. Much like GERD exports electricity, fertilizer diplomacy could give Addis a fresh lever of soft power. Yet risks persist. The Somali region, though calmer than in past decades, remains underdeveloped and fragile. Locals may welcome jobs, but they will also watch closely how benefits are shared. And Ethiopia’s sovereignty play may come with a dependency twist: with Dangote holding 60% equity, Addis must guard against over-reliance on a single foreign conglomerate. Interlocking ambitions Taken together, GERD, Kumruk and Dangote form a triad of interdependence. GERD’s cheap electricity powers Kumruk’s energy-hungry extraction. Kumruk’s gold revenues help service debt and fund imports. Fertilizer from Gode sustains farmers and underpins food security. The three projects create a self-reinforcing loop: energy, hard currency and agriculture. But they also expose a paradox. Ethiopia’s federal system grants regions autonomy, yet these mega-projects are firmly top-down, driven by state holding companies and political fiat. If peripheries perceive development as extraction without inclusion, old resentments could harden. Benishangul-Gumuz and Somali have histories of neglect; being turned into “resource provinces” may provoke backlash if not accompanied by visible local dividends. The FDI mirage On paper, Ethiopia remains an attractive investment story. FDI inflows reached $4bn in 2025, buoyed by large state-brokered deals. Yet beneath the headline lies fragility: announced greenfield projects plunged 75% in 2024, from $3.2bn to just $801m. The message is clear. Foreign conglomerates will sign on for government-backed mega-ventures, but ordinary investors remain wary. Conflict in Oromia and Amhara, forex rationing, and bureaucratic red tape make Ethiopia a tough sell. Investors are watching to see if the government can deliver stability and credible reforms beyond headline projects. High stakes on fragile ground The pivot to peripheries is both pragmatic and risky. In Tigray, civil war destroyed factories and farms; Oromia’s insurgency has crippled exports; Amhara reels from violence. By contrast, Benishangul-Gumuz and Somali now appear relatively calmer. Yet their stability is shallow. Ethnic federalism, contested land and weak local institutions could all erupt if mega-projects breed inequality. The government’s gamble is that jobs, electricity and fertilizer will pacify discontent. History, however, suggests that extraction without equity often fuels rebellion. Ethiopia’s centralised hand may bring swift progress—but sustainable peace requires local voice and ownership. What must be done Three priorities stand out. Inclusion: Ensure benefit-sharing. Local communities must see tangible improvements—in jobs, services, infrastructure—not just promises. Credibility: Reverse the collapse in greenfield FDI by addressing forex shortages, contract enforcement and investor red tape. Ethiopia’s digitalisation drive helps, but stability matters more. Governance: Strengthen environmental and social safeguards. GERD sedimentation, Kumruk cyanide and fertilizer monopolies are manageable risks—if regulators act. A new economic map Ethiopia’s periphery-first strategy is a wager on geography. If successful, it could create a diversified, resilient economy: hydropower lighting up factories, gold filling the central bank, fertilizer securing harvests. It could also reshape the Horn of Africa, giving Ethiopia new tools of economic statecraft in energy and agriculture. But it is a wager nonetheless. Ethiopia has staked its future on projects that are symbols of sovereignty but also seeds of potential conflict. The next decade will reveal whether the periphery becomes Ethiopia’s salvation—or its next fault line. In Ethiopia, the centre no longer holds. The margins must.

Commercial Bank of Ethiopia Announces New Service Fee Adjustments

Commercial Bank of Ethiopia Announces New Service Fee Adjustments Commercial Bank of Ethiopia Announces New Service Fee Adjustments Effective September 28, 2025 ADDIS ABABA – The Commercial Bank of Ethiopia (CBE) has announced another round of service fee adjustments, effective September 28, 2025 (Meskerem 19, 2018 EC). This follows last year’s revision on July 26, 2024, when the bank last updated its tariff schedule. “It is known that our bank will inform its customers in advance when it makes service fee adjustments. Accordingly, we would like to inform our customers that our bank will make service fee adjustments effective from September 28, 2025,” the bank said in its notice. Key Changes Compared to 2024 Why It Matters Business clients handling mid-to-large transactions will feel the impact most, particularly in cheque processing and RTGS payments. Retail customers will see modest increases in withdrawal and wallet transfer charges. CBE, which serves over 38 million customers and controls 60% of Ethiopia’s banking market, says the adjustments are necessary to sustain digitalization, expand branch networks, and cover inflationary costs.