CBE Raises Dollar Rate by 7 Birr, Adds 10 Birr Remittance Bonus to Counter Black Market

CBE Raises Dollar Rate by 7 Birr, Adds 10 Birr Remittance Bonus to Counter Black Market Addis Ababa, Ethiopia – May 28, 2025 — In a swift and strategic shift, the Commercial Bank of Ethiopia (CBE) has increased its official dollar buying rate by 7 birr—from 124.0086 to 131 birr—in under a week. The move marks one of the most significant rate jumps in recent history, as the bank seeks to bridge the widening gap between official and parallel market exchange rates. To further entice foreign currency inflows through legal channels, CBE is now offering an additional 10 birr bonus per dollar on all remittance earnings. This effectively brings the total payout to 141 birr per dollar, making CBE the most competitive official option in today’s forex market. At the same time, private exchange shops like Ethiopipa Forex are offering up to 149 birr, while the black market rate has surged to around 157 birr, highlighting the steep discrepancy between regulated and informal markets. Competitive Pressure Heats Up CBE’s move is seen as part of a broader effort to redirect foreign currency flows from the informal sector back into the banking system. With remittances contributing over $5 billion to Ethiopia’s economy annually, the 10 birr incentive is likely aimed at capturing a greater share of the diaspora’s transfers. Implications Policy Shift Indicators: The sudden 7 birr rate hike may reflect a gradual shift toward a market-driven exchange rate, aligning with reform suggestions from international lenders. Remittance Channeling: The 10 birr bonus for remittances is a strong incentive to push foreign inflows into the formal system and away from the black market. Widening Market Gap: Despite the official efforts, the nearly 26 birr gap between CBE and black market rates indicates strong ongoing demand for hard currency. As Ethiopia navigates economic reforms and foreign exchange shortages, CBE’s actions represent both a tactical response and a broader signal of change in currency management. Whether these efforts will close the black market gap or merely delay deeper structural reforms remains to be seen.

Ethiopian Airlines Earns $5.6 Billion in Revenue in Nine Months, Sets New Records in Passenger Growth and Expansion

Ethiopian Airlines Earns $5.6 Billion in Revenue in Nine Months, Sets New Records in Passenger Growth and Expansion Addis Ababa – May 2025 Ethiopian Airlines Group has reported a remarkable $5.6 billion in revenue over the past nine months, reflecting an 8% increase compared to the same period last year. The airline’s Chief Executive Officer, Mr. Mesfin Tasew, shared the performance update in an interview with the Ethiopian Broadcasting Corporation (EBC), highlighting the Group’s continued momentum and expansion as it charts a course toward its long-term strategic goals. According to Mr. Tasew, Ethiopian Airlines transported 14.5 million passengers during the reporting period, marking a 13% year-on-year increase. This growth comes amid sustained efforts to widen the airline’s global footprint, enhance operational capacity, and respond to the surging demand for international and domestic travel. Strategic Expansion Under Vision 2035 As part of its broader Vision 2035 growth plan, Ethiopian Airlines has aggressively pursued network and fleet expansion. Within just the first nine months of the Ethiopian fiscal year 2017 (EC), the carrier inaugurated four new international destinations, bolstering its already vast global route network. Fleet modernization and expansion were also central to this growth. The airline acquired 10 new aircraft, integrating them into active service. Notably, it became the first airline in Africa to introduce the state-of-the-art Airbus A350-1000 to its fleet—a milestone that underscores Ethiopian Airlines’ commitment to operating one of the youngest and most modern fleets on the continent. Infrastructure Development to Match Growth The surge in passenger traffic at Bole International Airport has prompted major investments in aviation infrastructure. Mr. Tasew confirmed that preparations are underway to construct additional international airports to alleviate congestion and meet future demand. The move reflects the airline’s strategy to position Addis Ababa as a premier aviation hub for Africa and beyond. Sustainable Growth and Global Recognition Ethiopian Airlines’ achievements are not just confined to numbers. The Group’s growth is underpinned by key foundational investments in training, maintenance, cargo, and logistics. These sectors have not only contributed to revenue diversification but have also solidified the airline’s reputation as a fully integrated aviation group. The carrier’s success story continues to stand out in Africa’s aviation sector, especially during a time when many global airlines are still recovering from the financial impacts of the COVID-19 pandemic. Ethiopian Airlines’ ability to adapt, innovate, and invest—while maintaining profitability—has earned it international accolades and has made it a model for other national carriers on the continent. With its Vision 2035 strategy in full swing, Ethiopian Airlines plans to continue expanding its route network, investing in sustainable aviation technology, and strengthening its position as Africa’s leading airline. The Group aims to significantly increase its fleet size, passenger volume, and cargo capacity while focusing on digital transformation and customer satisfaction. As Africa’s most profitable and fastest-growing airline, Ethiopian Airlines is not just charting the skies—it is redefining them.

IMF Executive Board to Review Ethiopia’s $3.4 Billion Program This Summer Amid Economic Reform Push

IMF Executive Board to Review Ethiopia’s $3.4 Billion Program This Summer Amid Economic Reform Push Addis Ababa, Ethiopia – The International Monetary Fund (IMF) is expected to hold a crucial Executive Board meeting this summer to review the third installment of Ethiopia’s $3.4 billion Extended Credit Facility (ECF) and Extended Fund Facility (EFF) program, according to IMF spokesperson Julie Kozack. The meeting could unlock the disbursement of around $265 million, offering the Ethiopian government a financial lifeline as it navigates complex macroeconomic reforms, restructuring efforts, and a fragile post-conflict recovery. Background: A Program Anchored in Reform In December 2019, the IMF approved the $3.4 billion blended ECF/EFF arrangement for Ethiopia to support wide-ranging structural reforms, stabilize the macroeconomic environment, and reduce debt vulnerabilities. While the initial momentum was disrupted by the COVID-19 pandemic and the outbreak of civil conflict in Tigray, Ethiopia resumed reform efforts in late 2022. These included steps to liberalize the exchange rate regime, curb inflation, improve tax administration, and begin restructuring external debt under the G20 Common Framework. The third review, anticipated since early 2024, comes at a critical juncture. Ethiopia’s economy has shown signs of resilience, with projected real GDP growth of 6.1% in 2025, according to the IMF’s latest World Economic Outlook. However, mounting debt service obligations, double-digit inflation, a persistent foreign currency shortage, and high unemployment—particularly among the youth—remain pressing challenges. Delayed Staff-Level Agreement Signals Complex Negotiations According to Julie Kozack, IMF staff concluded their assessment in mid-April. Ethiopian officials had expressed optimism for a swift staff-level agreement, but no such announcement has yet materialized. Analysts suggest that the delay may be due to ongoing technical discussions around debt sustainability, exchange rate alignment, and progress on fiscal consolidation. The IMF has historically emphasized the need for Ethiopia to adopt a more flexible exchange rate to address external imbalances, reduce the black-market premium, and rebuild foreign exchange reserves. However, liberalizing the birr risks fueling inflation and social unrest, especially in an already volatile political environment. Negotiations have also been complicated by the slow pace of Ethiopia’s engagement with private and bilateral creditors. While the government secured a debt service suspension agreement with China in 2023, talks with other official creditors under the G20 Common Framework have not yet yielded a comprehensive restructuring deal—an important precondition for unlocking IMF resources. What’s at Stake: $265 Million and Policy Credibility Should the IMF Executive Board approve the third review—expected tentatively in June—it would release about $265 million in funding. This disbursement would be crucial for easing balance-of-payments pressures and restoring investor confidence in Ethiopia’s economic reform agenda. More importantly, it would reaffirm Ethiopia’s commitment to its program targets and policy reforms. The IMF’s endorsement is widely viewed by multilateral lenders and investors as a signal of macroeconomic discipline. Without it, Ethiopia risks further delays in securing World Bank budget support and attracting much-needed concessional financing from development partners. Reform Fatigue vs. Reform Imperative For Prime Minister Abiy Ahmed’s government, the IMF program represents both an opportunity and a political gamble. On one hand, it supports long-term economic transformation—such as digitizing tax systems, improving state-owned enterprise governance, and reducing dependence on state-directed credit. On the other, it requires politically sensitive measures: reducing fuel and food subsidies, floating the currency, and cutting public sector employment growth. Ethiopian civil society groups and labor unions have voiced concern over the social costs of these reforms. With food inflation hovering above 30% for much of 2024, household purchasing power remains low. Urban unrest in Addis Ababa and regional discontent in Oromia and Amhara have raised alarms about the fragility of the social contract in a reform-intensive environment. Outlook: Balancing Reform, Recovery, and Risk Despite the hurdles, Ethiopia’s economic team—led by Finance Minister Ahmed Shide and National Bank Governor Mamo Mihretu—has remained engaged with IMF staff. The eventual approval of the third review could serve as a turning point in re-establishing macroeconomic credibility. However, the road ahead remains uncertain. The delayed staff-level agreement, unresolved debt talks, and domestic opposition to austerity-style reforms present formidable barriers. Whether Ethiopia can balance reform imperatives with political realities will determine not just the future of the IMF program, but the broader trajectory of its economic recovery. As the IMF Board convenes in the coming weeks, all eyes will be on Addis Ababa. The decision could shape Ethiopia’s fiscal breathing space, reform momentum, and access to external funding at a moment when the stakes have rarely been higher.

Abiy and Macron Forge Stronger Economic Ties as France Renews Commitment to Ethiopia’s Debt Relief and Investment Future

Abiy and Macron Forge Stronger Economic Ties as France Renews Commitment to Ethiopia’s Debt Relief and Investment Future PARIS – In a high-level diplomatic meeting held at the Élysée Palace, Ethiopian Prime Minister Dr. Abiy Ahmed and French President Emmanuel Macron reaffirmed their countries’ growing strategic partnership, with a renewed focus on deepening economic cooperation and accelerating Ethiopia’s debt relief process. The two leaders, accompanied by senior delegations, reviewed the progress of bilateral agreements signed during Macron’s landmark visit to Ethiopia in 2017. These agreements spanned sectors such as defense, cultural preservation, and education. The latest dialogue placed particular emphasis on unlocking further collaboration in trade, investment, and infrastructure. President Macron reiterated France’s role as a key supporter of Ethiopia’s debt relief efforts, positioning Paris as a long-term economic ally to Addis Ababa amid its broader reform agenda. Since 2010, Ethiopia and France have strengthened their bilateral relationship through high-level state visits, strategic partnerships, and collaborative projects in heritage restoration and capacity building. The leaders also revisited significant milestones such as: The restoration of the rock-hewn churches of Lalibela, a UNESCO World Heritage site, supported by French technical expertise; The 2011 and 2015 visits by both heads of state, which laid the groundwork for intensified cooperation in defense and culture; Macron’s 2017 return to Ethiopia, where he reaffirmed France’s backing of Ethiopia’s economic reform program and debt restructuring efforts. This latest meeting in Paris marks a pivotal moment for Ethiopia, which is seeking to stabilize its economy, attract foreign investment, and reassert its geopolitical importance in the Horn of Africa. Prime Minister Abiy and President Macron jointly emphasized the urgency of delivering swift, sustainable solutions to secure Ethiopia’s economic resilience. With France increasingly positioning itself as a reliable European partner for African nations seeking equitable growth and reform support, this meeting underscores how global south-north alliances can evolve into robust engines of economic transformation. Bottom Line:France’s renewed economic and political engagement with Ethiopia reflects a growing recognition of the country’s strategic importance. With debt relief, heritage diplomacy, and investment now on the table, Ethiopia could be on the cusp of a major economic realignment—backed by Paris.

Ethiopia’s Banking Crossroads: Risks of Foreign Bank Entry Amid Domestic Fragility

Ethiopia’s Banking Crossroads: Risks of Foreign Bank Entry Amid Domestic Fragility Why Rushing Liberalization Could Undermine Local Banks and Widen Economic Inequality By Henok Gidey (BA, MBA, ACCA, CFIP), Finance Specialist Addis Ababa — The Governor of the National Bank of Ethiopia (NBE) recently announced that foreign banks will be allowed to operate in Ethiopia starting next year. While this bold move is part of Ethiopia’s broader economic reform agenda, it raises serious questions about timing, transparency, and national readiness. Critically, this comes at a time when the country is facing a crippling liquidity crunch, under-capitalized domestic banks, and an economy still recovering from multiple shocks. What’s more, the public has not been informed whether the NBE has established any safeguards or conducted a risk impact assessment ahead of this transformational policy shift. This article unpacks the likely downsides of foreign bank entry, the implications for Ethiopia’s banking system, and lessons from other countries that liberalized too fast—only to regret it later. A Market in Crisis, Not in Need of Shock Ethiopia’s financial sector is under pressure. Inflation is high, access to credit is restricted, and most domestic banks are struggling to meet growing demand for loans. The liquidity crisis is especially affecting SMEs and informal enterprises, which are the backbone of the Ethiopian economy. Contrary to the assumption that foreign banks will bring liquidity and stability, international experience shows otherwise. Foreign banks rarely bring new lending capital. Instead, they compete with local banks for deposits, target only top-tier clients, and leave underserved groups behind. If anything, their entry could deepen the liquidity crisis in the short term, not solve it. Who Will Foreign Banks Serve? Historically, foreign banks that enter emerging markets focus on: Large corporations High-net-worth individuals Sectors with strong FX flows (e.g., trade, telecom) They do not generally finance SMEs, farmers, or rural populations. These segments are seen as too risky or too costly. In Kenya, for instance, foreign banks like Standard Chartered and Barclays accounted for nearly 50% of top corporate loans but contributed less than 10% of SME financing. Ethiopia risks seeing the same pattern. Foreign banks will serve the top 5% of the market—not the 80% of Ethiopians excluded from formal credit. Local Banks Could Lose Up to 50% of Corporate Clients Foreign banks bring stronger brands, better technology, and lower-cost international capital. This gives them a competitive edge over domestic institutions, especially when it comes to corporate clients. These clients are vital to local banks. They provide: Large deposits Steady FX inflows Low-risk lending opportunities In Ghana and Nigeria, liberalization led local banks to lose 30–60% of their corporate customers within a few years. Ethiopia, with a less mature banking sector, could see a 30–50% erosion in its corporate client base within 3–5 years of foreign entry. That would be a serious blow to local banks’ balance sheets, profitability, and their ability to serve SMEs or expand branch networks. Liquidity Crunch Will Likely Worsen Some argue that foreign banks could ease Ethiopia’s liquidity problems. However, this is unlikely in the short term. Most foreign banks entering restricted markets do not bring external capital, especially when FX regulations are tight. Instead, they: Mobilize local deposits Reallocate them to elite clients Avoid long-term or SME loans The result? A redistribution—not expansion—of financial resources. By offering higher deposit interest rates, foreign banks could attract depositors from domestic banks. This would reduce local banks’ loanable funds, worsening the credit shortage for SMEs and rural borrowers. Creating a Two-Tier Banking System If poorly managed, liberalization could create a dual banking system: Foreign banks serving elite clients Local banks serving risky, underserved segments without adequate support This would widen the existing financial access gap. SMEs and rural entrepreneurs would be further marginalized. Urban-rural inequality could grow, and local banks might be forced to take on more credit risk to survive. Such patterns were observed in Uganda, Zambia, and Ghana—countries that opened their banking sectors without first strengthening local institutions. No Public Risk Mitigation Plan The NBE’s announcement came with no public release of: A licensing roadmap Foreign bank entry models (branch, subsidiary, JV) Minimum capital or local content requirements Impact assessments or transition plans The public, private sector, and civil society remain uninformed about how the NBE will monitor systemic risks, enforce inclusion mandates, or protect local banks from collapse. This lack of communication undermines confidence in the reform process and invites policy uncertainty. It also ignores global best practices, which emphasize gradual, transparent, and consultative reform pathways. Regulatory Framework Still Underdeveloped Ethiopia’s financial regulatory environment is not yet equipped for complex cross-border banking supervision. Key gaps include: No deposit insurance system Weak consumer protection Lack of an active capital market Limited credit reporting and data sharing infrastructure Without these tools, foreign bank oversight becomes challenging. In fragile environments, foreign banks may even avoid lending altogether, keeping capital parked in government securities or overseas transactions. This would defeat the very purpose of liberalization. Ethiopia Must Learn from Others Countries that successfully liberalized their banking sectors—such as Morocco, India, and Indonesia—did so in phases, with: Strong regulatory frameworks Mandatory financial inclusion targets Capacity building for local banks Public-private dialogue mechanisms They also ensured that foreign entrants contributed to national development priorities, not just profit. Ethiopia must do the same. Otherwise, it risks financial destabilization, loss of sovereignty over credit allocation, and increased inequality. Recommendations for a Safer Transition To mitigate risks and ensure shared benefits, Ethiopia should: Delay full liberalization until domestic banks are more competitive. Introduce foreign banks in phases, with clear eligibility criteria. Mandate lending quotas to SMEs or underserved sectors. Require joint ventures between foreign and local banks in the initial phase. Strengthen local banks through recapitalization, technical support, and technology upgrades. Improve regulatory capacity, including oversight of digital finance and capital flows. Publish a foreign entry white paper outlining the NBE’s goals, timeline, and risk strategy. Create a monitoring body to assess economic and social impacts over time. Conclusion: Reform, But Don’t Rush Ethiopia’s ambition to modernize its financial sector is commendable. But rushing to allow foreign banks without local readiness is a recipe for economic exclusion, institutional collapse, and capital concentration. The NBE must proceed with caution, transparency, and accountability. Banking liberalization must be part of a larger national development strategy, not a stand-alone decision. If done right, foreign bank entry can be a catalyst. If done poorly, it could become a crisis. The stakes are high—and so is the responsibility to get it right. For further analysis or commentary, contact the author at henokgidey07@gmail.com

Ethiopia Sets $150K Minimum for Foreign Property Ownership, Bans Local Bank Loans

Ethiopia Sets $150K Minimum for Foreign Property Ownership, Bans Local Bank Loans A new draft proclamation has been submitted to Ethiopia’s House of People’s Representatives, setting out strict regulations on foreign ownership of real estate and land for residential construction. The proposed legislation seeks to attract foreign investment while protecting the domestic financial sector. Among its key provisions is a clause prohibiting foreign nationals and foreign-owned entities from borrowing funds or raising capital from Ethiopian financial institutions to purchase property or build homes. According to the draft, any foreign individual or legal entity wishing to acquire property must invest a minimum of $150,000 USD. Additionally, foreign ownership is capped at five real estate properties per person at any given time. The bill also bars foreign citizens from owning units in government-subsidized communal housing. However, properties developed through public-private partnerships or similar profit-driven housing schemes are exempt from this restriction. The proclamation, introduced on May 12, 2017 (Ethiopian calendar), underscores the government’s intent to balance foreign capital inflow with safeguards for the domestic housing and financial markets.

NBE Lifts Limit: Importers Can Now Make $50K Advance Payments

NBE Lifts Limit: Importers Can Now Make $50K Advance Payments The National Bank of Ethiopia Introduces New Measures to Reform the Foreign Exchange Market The National Bank of Ethiopia (NBE) has announced the implementation of several reform measures aimed at improving the country’s foreign exchange market system. These reforms are intended not only to align Ethiopia’s foreign exchange market with international best practices but also to create a more convenient environment for importers and international travelers. What Are the Key Reform Measures Introduced Today? 1. Increased Advance Payment Limit for Importers The maximum advance payment limit for importers has been raised from USD 5,000 to USD 50,000. This measure is expected to address long-standing constraints on the amount of foreign exchange that importers can advance to their international suppliers. Citing international benchmarks and the need to modernize outdated practices, the NBE stated: “Based on the experience of peer countries and the need to update long-standing practices, the advance payment amount permitted for importing goods has been increased from USD 5,000 to USD 50,000.” 2. Increased Foreign Currency Limits for Travelers To create a more traveler-friendly foreign exchange policy, the NBE has raised the foreign currency limit for Ethiopian citizens traveling abroad. Under the new policy: Private travelers can now carry up to USD 10,000 in foreign currency. Business travelers are allowed up to USD 15,000. These amounts can be withdrawn either in cash or via payment cards. Additionally, individuals with foreign currency bank accounts can now withdraw up to 20% of their balance via cards, up from the previous 10%. 3. Regulation of Bank Charges on Foreign Exchange Services The NBE has also taken steps to standardize and regulate the administrative fees banks charge for foreign exchange services. “To bring Ethiopia’s foreign exchange-related administrative fees in line with international norms, banks are urged to prioritize competitiveness, transparency, and customer convenience in their pricing structures,” the Bank stated. Effective May 18, 2017 (Ethiopian calendar): Banks are prohibited from charging more than 4% in administrative fees on foreign exchange-related services such as revenue collection, service charges, and cash transactions. Banks must eliminate additional minor service charges to simplify the fee structure and ensure consumer transparency. To reinforce transparency, the NBE announced that starting June 2017 (Ethiopian calendar), it will begin publishing bank administrative fees related to foreign exchange services on its official website. 1 COMMENT fentahun May 21, 2025 At 9:27 am You introduced well updated regulatory policy of the NBE rgarding to captal raising.Such as inporters $5k to 50k,busines traveler upto15k amd privet traveler 10k. Thank u You introduced well updated regulatory policy of the NBE rgarding to captal raising.Such as inporters $5k to 50k,busines traveler upto15k amd privet traveler 10k. Thank u Comments are closed.

Africa at the Crossroads: A New Economic Dawn Fueled by Innovation, Diaspora Capital, and Bold Leadership

Africa at the Crossroads: A New Economic Dawn Fueled by Innovation, Diaspora Capital, and Bold Leadership Interview with Lulite Ejigu, Chairperson of GRV and CEO & Managing Partner of Tevah Capital About Lulite Ejigu Lulite Ejigu brings a wealth of global financial expertise to her leadership at the Ethiopian Diaspora Trust Fund and currently serves as CEO & Managing Partner at Tevah Capital, a global advisory firm specializing in investment, capital strategy, and risk management. Before founding Tevah Capital, she held senior leadership roles at J.P. Morgan, Citi, and Morgan Stanley, focusing on risk governance, regulatory compliance, and capital markets operations. Beyond her impressive résumé, Ejigu is deeply committed to empowering Ethiopia’s next generation. She has consistently championed youth leadership, women’s participation, and diaspora mentorship as critical levers for sustainable development. Throughout her career, she has led international delegations and forged investment linkages, helping to place Ethiopia on the global economic map. The Winds of Global Change In today’s fast-paced world, alliances, trade structures, and economic norms are rapidly evolving. While some nations scramble to adapt, Ethiopia—and the African continent more broadly—stands at a rare juncture, one that allows it to chart its own course.“We are witnessing a once-in-a-generation realignment,” Ejigu explains. “It’s a time when Ethiopia must actively define its future role rather than passively inherit a place.” These global shifts open a rare window for the continent to lead its own reinvention.  has a unique chance to define its value proposition—whether through innovation, human capital, or strategic partnerships—in a world actively seeking new solutions. It is also a time for countries to remain focused and not get distracted, as the clarity and consistency of their vision will determine whether they shape the future—or are shaped by it. GRV Summit: A Watershed Moment The 2024 GRV Summit, often likened to a ‘mini-Davos’ for Ethiopian startups, marked a pivotal point for the country’s entrepreneurial landscape. Unlike previous development models anchored in aid, GRV ignited a new sense of possibility in the local innovation ecosystem. “At GRV, we asked a critical question: ‘What or whom are we waiting for?’” Ejigu said. “This summit sparked a movement of urgency and ownership we had not seen before.” More than just a networking platform, GRV offered a tangible framework—structured mentorship, strategic seed funding, and diaspora-led knowledge transfer. It demonstrated that Ethiopian entrepreneurs can lead, not follow, by building a community-driven model of innovation and investment with long-term potential for catalytic effect. Diaspora Capital: A Sleeping Giant Awakens For years, the global Ethiopian diaspora has primarily contributed through remittances. But now, a shift is underway. The diaspora is awakening to its potential as a transformative financial and intellectual force. “Investing in Ethiopian startups offers both financial returns and the chance to shape a legacy of empowerment,” Ejigu explained. With savings yields stagnating in many developed economies, Ethiopian ventures offer not only significant returns but also the opportunity to positively influence the next generation. Even modest contributions—like sharing expertise or opening networks—can have outsized impact on Ethiopia’s entrepreneurs. “The only moment we truly own is the present,” she emphasized. “Small but intentional actions today can transform the path of generations.” Ethiopia’s Financial Renaissance: Birth of the ESX A cornerstone of Ethiopia’s new financial chapter is the Ethiopian Securities Exchange (ESX). This long-awaited platform represents a critical step toward creating a modern and inclusive economy. “The ESX offers Ethiopia a chance to build a modern, inclusive economy, much like India’s transformative journey,” Ejigu shared. “History offers insights into potential outcomes.” By studying successful models like India’s 1990s liberalization, Ethiopia can design a capital market that genuinely empowers SMEs and entrepreneurs. Still, Ejigu adds a note of prioritization for sustained policy and institutional support to keep the momentum of this promising start. Innovation as a Sovereignty Strategy In today’s geopolitically charged climate, innovation is no longer a luxury—it’s a necessity. “Innovation is not a luxury; it’s a necessity for sovereignty,” Ejigu said. But she was quick to clarify that innovation extends far beyond fintech. From sustainable agriculture to manufacturing tech, Africa must build a broad innovation portfolio to buffer against global volatility. “African leaders must actively monitor and adopt global innovations to maintain a competitive edge,” she advised. “But innovation must also be paired with vigilance to navigate global uncertainties.” Empowering communities must become a collective decision—a deliberate shift in mindset that recognizes Africa’s own capacity to fund, innovate, and lead. “It’s about shifting mindsets before shifting markets,” she noted. Vision 2030: Ethiopia’s Emerging Blueprint Looking ahead to 2030, the GRV movement and its ecosystem partners envision an inclusive and resilient economic architecture. Where there were once charity-driven narratives, there could soon be thriving innovation hubs and scalable startups. “I envision communities once seen through the lens of charity becoming beacons of opportunity,” Ejigu said. “The seeds we plant today through initiatives like GRV can yield a thriving, resilient economic future.” This future hinges on de-risking entrepreneurial pathways through seed funding, accelerator programs such as the UNDP’s Innovative Finance Lab, and new non-collateralized lending models driven by local banks. The Balancing Act: Impact and Profit Balancing social impact with financial sustainability remains a central challenge. Ethiopia’s emerging startups are tackling critical sectors—agriculture, education, healthcare—not only with purpose but with business discipline. “We need businesses that deliver real impact and can survive beyond grant cycles,” Ejigu explained. “At GRV, we are proving that profitability and purpose are not mutually exclusive.” The GRV model underscores operational excellence, diversified capital, and measurable social return—positioning Ethiopia’s startups as global case studies for sustainable enterprise. A Fragile but Fierce New Beginning Ethiopia stands on the brink of an economic rebirth. Its foundations—youthful energy, financial innovation, diaspora engagement, and bold leadership—are promising. But the road ahead will require commitment. Structural reforms must deepen. Innovation ecosystems must be nurtured, not just celebrated. And narratives must be reshaped from within, not by external observers. If Ethiopia succeeds, it won’t just redefine itself—it will offer a powerful blueprint for how emerging economies can seize global transformation on their own terms.

M-Pesa Lite Officially Launches in Ethiopia, Expanding Cross-Network Mobile Money Access

M-Pesa Lite Officially Launches in Ethiopia, Expanding Cross-Network Mobile Money Access Addis Ababa – May 19, 2025 — Ethiopia has reached a major milestone in digital finance with the official launch of M-Pesa Lite, a streamlined version of the popular mobile money platform designed to enhance accessibility and financial inclusion across the country. The newly released M-Pesa for All app is now compatible with both Safaricom and Ethio Telecom SIM cards, marking a breakthrough in cross-network mobile money interoperability. This integration allows users from either network to make digital payments more seamlessly, securely, and affordably than ever before. The rollout of M-Pesa Lite is part of a broader push toward digital inclusion and financial empowerment in Ethiopia, where access to traditional banking services remains limited for much of the population. The initiative aims to make mobile payments more user-friendly and to bridge the digital divide by enabling wider participation in the formal financial system. Industry experts see the launch as a pivotal moment for Ethiopia’s fintech landscape, enabling flexible payment solutions and fostering greater economic participation through technology. #MPESA #DigitalInclusion #EthiopiaDigital #FintechInnovation #MPESAEthiopia