Ethiopia to Begin Trading under African Continental Free Trade Area Next Month

Ethiopia to Begin Trading under African Continental Free Trade Area Next Month Ethiopia will officially start trading under the African Continental Free Trade Area (AfCFTA) in one month, marking a significant step toward greater regional market integration and export diversification. The Ministry of Trade and Regional Integration confirmed that the country has completed the core procedural requirements, including the finalization of its tariff schedules. The Council of Ministers has approved the list of goods eligible for preferential duty rates, which has been communicated to all AfCFTA member states. This development positions Ethiopian exporters to begin accessing new African markets under reduced or zero-tariff regimes. The AfCFTA, operational since January 2021, is the largest free trade area globally by number of participating countries. Fifty-four African nations have signed the pact, while forty-seven—including Ethiopia—have ratified and incorporated it into domestic law. The agreement’s primary goal is to eliminate tariffs on 90% of goods over time, reduce non-tariff barriers, and stimulate intra-African trade, which currently accounts for only about 15% of the continent’s total commerce. For Ethiopia, the timing is strategic. The economy is under pressure from foreign exchange shortages, high inflation, and post-conflict reconstruction needs. Entry into the AfCFTA offers the prospect of expanding market access for key export sectors such as coffee, oilseeds, cut flowers, leather products, textiles, and agro-processed goods. With a combined GDP of over $3.4 trillion and a consumer base of 1.4 billion people, the bloc represents a structural shift in Ethiopia’s trade potential. The move could also accelerate Ethiopia’s industrialization agenda by enabling participation in regional value chains, attracting investment into manufacturing zones, and stimulating demand for logistics and transport services. Multinational investors seeking an East African production hub could view Ethiopia’s AfCFTA participation as a competitive advantage, particularly given its low labor costs and proximity to key shipping routes via Djibouti. However, the competitive landscape will change rapidly. While duty-free access could boost Ethiopian exports, it also opens the domestic market to imports from more competitive African producers. Local manufacturers may face pricing pressures, particularly in consumer goods and processed food sectors. Without improvements in productivity, quality standards, and supply chain efficiency, the trade balance could tilt unfavorably. Ethiopia’s trade logistics remain a structural bottleneck. High freight costs, port congestion in Djibouti, limited warehousing capacity, and slow customs clearance could erode the benefits of tariff reductions. Infrastructure investments, including the expansion of the Ethio-Djibouti railway and upgrades to industrial parks, will be critical to sustaining competitiveness. Regionally, 22 African countries have finalized and submitted their tariff schedules, enabling reciprocal trade flows. Ethiopia’s entry will increase momentum for the bloc, particularly in East Africa, where Kenya, Rwanda, and Uganda are already active AfCFTA participants. Trade analysts expect initial Ethiopian exports to focus on neighboring markets with established transport corridors before expanding to West and Southern Africa. Over the medium term, Ethiopia’s success within the AfCFTA will depend on complementary domestic reforms—streamlining customs processes, harmonizing product standards, improving trade finance access for small and medium enterprises, and upgrading infrastructure. Without these measures, the agreement’s benefits risk being diluted by operational inefficiencies. The official start of trading next month will be closely monitored by regional investors, development finance institutions, and policy makers. For Ethiopia, it represents both a market expansion opportunity and a competitive challenge—one that will test the resilience of its exporters and the efficiency of its trade ecosystem.

TilfFotoBetBot: Ethiopia’s Telegram-Powered Generative AI Startup Scaling Creativity

TilfFotoBetBot: Ethiopia’s Telegram-Powered Generative AI Startup Scaling Creativity In Ethiopia, where high-speed internet is still a privilege and most smartphone users rely on Telegram rather than app stores, a homegrown AI tool is rewriting the rules of creative technology adoption. Meet TilfFotoBetBot, a multimodal generative AI platform built by Addis Ababa–based Tilf Software PLC. In less than a year, it has gone from a niche experiment to 15,000+ monthly active users, generating everything from Ghibli-style animations to branding logos—over 50,000 logos since June alone. “We saw that the real challenge wasn’t just selling online—it was helping people create and showcase products in the first place,” says the Tilf team. “That’s how TilfFotoBetBot was born.” Built for Ethiopia’s Digital Realities Unlike global AI products that assume fast connections and modern devices, TilfFotoBetBot was designed around Ethiopia’s digital constraints: Runs fully inside Telegram—no app downloads, no sign-ups. Optimized for low bandwidth and older smartphones. Localized workflows for users outside major cities. This design choice isn’t just convenience—it’s market strategy. Telegram dominates Ethiopia’s messaging ecosystem, making it the perfect distribution channel for advanced tech without fighting app store barriers. From Photo Shoots to Veo3 Video Generation TilfFotoBetBot began with AI-powered photo generation—restoring old images, removing backgrounds, changing hairstyles—but has since expanded into video and upcoming voice generation. Notably: AI Photo Shoot: Instant stylized portraits, popular with photo studios. Logo Generator: 2,500 logos created on day one, signaling pent-up demand for affordable branding tools. Veo3 Video Tools: TikTok creators use it for unique video content, boosting engagement and landing sponsorships. Some Ethiopian entrepreneurs have already turned it into a side hustle—charging for AI-enhanced studio photos or selling AI-generated brand assets. Overcoming Ethiopia’s AI Adoption Barriers Scaling generative AI in Ethiopia isn’t just a matter of building features—it’s about surviving four main hurdles: Internet Access – Most users can’t stream heavy models in real time. Tilf bypasses this by doing everything within Telegram’s lightweight infrastructure. GPU Costs – AI inference isn’t cheap. A spike in AI photo shoot demand forced Tilf to double its first-request price from 220 ETB to 440 ETB, with follow-up photos at 55 ETB. Public Awareness – Generative AI is still new to the Ethiopian public. TikTok virality (one video hit 1M views) has been their growth engine. Payment Barriers – Even if Ethiopians want premium AI tools, many global services can’t be accessed due to the lack of widely available international payment options. Credit cards compatible with global SaaS subscriptions are rare, and platforms like PayPal and Stripe aren’t fully functional in Ethiopia. This means that tools like Midjourney or OpenAI’s premium tiers remain financially out of reach for most, regardless of interest. 📊 Global AI Accessibility Index: Ethiopia vs. Global Markets Source: Market checks, user reports, and platform documentation. The Global Access Gap: Google Flow and Beyond The issue goes beyond payments. Major AI products—such as Google’s Flow—still aren’t accessible in Ethiopia and other African markets. While Silicon Valley touts global inclusion, product rollouts often ignore countries without established billing infrastructure, reliable IP ranges, or large English-speaking bases. For Ethiopian creators, this forces them to either rely on free tiers (often with usage limits) or turn to locally built tools like TilfFotoBetBot that accept mobile money or cash-based payments. It’s a vacuum that local innovators are increasingly filling. The AI Sovereignty Play Beyond the business case, TilfFotoBetBot is making a quiet political statement: Africa needs to own its AI narrative. Most AI models are trained in Western contexts, often underrepresenting African faces, languages, and cultural nuances. Tilf fine-tunes its tools for Ethiopian users and plans to introduce local language support, ensuring the tech works for everyone—not just English speakers. “We’re not just using tech from outside,” Tilf says. “We’re shaping it here.” Next Stop: East Africa Tilf’s goal is 1 million monthly users in Ethiopia before expanding to other East African markets like Kenya, Uganda, and Rwanda. The strategy? Keep everything: Multimodal (photo, video, voice, design) Accessible (Telegram-first) Culturally tuned (local languages, localized prompts) If they succeed, TilfFotoBetBot could become a blueprint for how to scale AI in low-infrastructure markets—a lesson that could apply from Accra to Jakarta. Why It Matters: In a global AI race dominated by Silicon Valley, TilfFotoBetBot is proof that local-first, infrastructure-aware design can unlock massive adoption—even in bandwidth-limited markets. It’s not just a startup story; it’s a case study in AI localization, digital leapfrogging, and creator economy empowerment in Africa.

CBE’s Aborted Logo Overhaul: Branding Missteps, Public Sentiment, and Questions of Governance

CBE’s Aborted Logo Overhaul: Branding Missteps, Public Sentiment, and Questions of Governance The Commercial Bank of Ethiopia (CBE) — the nation’s largest and oldest bank — recently halted a highly publicized and costly rebranding initiative after senior federal government officials criticized the proposed new logo for lacking creativity, Ethiopian identity, and Amharic representation. The cancellation, announced at the eleventh hour, has reignited debates about branding strategy, public accountability, and financial stewardship in state-owned enterprises. The Facts: A Half-Billion Birr Halt According to The Reporter, CBE’s rebranding process consumed close to 600 million birr, encompassing design work, digital platform modifications, and planned replacements of signage, letterheads, staff IDs, and branding materials across its more than 1,900 branches. The new design — a minimalist black “CBE” in a disconnected, sleek font, accompanied by the motto “always reliable” — was set to replace the bank’s iconic golden spiral emblem, unchanged for over half a century. A massive replica had already been installed on the bank’s 46-story headquarters in Addis Ababa. However, just days before the official unveiling, senior federal government officials intervened after learning that the logo omitted Amharic text. Critics within and outside the bank also called the design “boring” and lacking distinct Ethiopian identity. Why Logos Matter — And Why This Change Was Risky In branding, a logo is more than a decorative mark; it is the distilled essence of an organization’s identity, values, and customer perception. A well-established logo operates on both a visual and psychological level, triggering memories, emotions, and associations built over years or decades. CBE’s golden spiral logo is not merely a graphic; it symbolizes trust, national pride, and the bank’s long-standing presence in Ethiopian life. For many customers, it is tied to personal experiences — from receiving a first paycheck to securing a loan — as well as to broader national economic history. Marketing and branding experts caution that replacing such a deeply ingrained symbol is a high-risk move. Successful rebrands are typically justified by transformative changes in a company’s direction, market, or reputation. In CBE’s case, no such major shift was publicly communicated. Instead, the redesign appeared motivated by aesthetic modernization and competitive mimicry, rather than a strategic repositioning. Hawelet Ahmed’s View: When Change is Justified — and When It Isn’t Branding commentator Hawelet Ahmed underscores that a logo’s primary purpose is to be a unique symbol — an instant identifier that anchors an institution in the public’s memory. She points to two notable Ethiopian examples where logo changes were arguably justified: Nib Bank — Originally featuring a bee symbol, the bank changed its logo after concerns it too closely resembled the EPRDF’s election emblem. In branding, avoiding visual confusion with politically charged symbols or other institutions can be a valid reason for change. Ethio Telecom — Formerly the Ethiopian Telecommunication Corporation, its logo once featured a crowned lion, later simplified to a lion without a crown. Under French management, the lion was dropped entirely in favor of a new brand identity, partly because other institutions also used lion imagery. Here too, the need for a distinctive identity justified the change despite initial controversy. In contrast, CBE’s golden spiral logo is already entirely unique, deeply embedded in public memory, and not in conflict with other symbols. As Hawelet asks: Is there a sufficient reason to change a logo that is “completely unique and unlike anyone else,” when it already fulfills its role perfectly? She notes that some logos stand the test of centuries — the world’s oldest logo is over 650 years old, and Shell’s has endured for 120 years. “Some things don’t necessarily have to change,” she writes. In her view, instead of altering a flawless emblem, CBE would be better served by investing in service quality, technological upgrades, and customer experience. Million Ayelech’s Perspective: Identity Crisis, Not Necessity Branding analyst Million Ayelech adds that CBE has already changed its logo three times since its inception, with each update making it more adaptable to digital formats. The current design, in his view, “simply describes CBE” and is both realistic and convincing. He outlines several legitimate reasons why an organization might change its logo: If the logo is too similar to that of another organization, creating confusion. If the logo carries cultural sensitivities or negative connotations within the community. These are compelling grounds for rebranding. However, he stresses that none of these apply to the CBE’s current emblem. Instead, he argues the bank’s decision seems driven by an “identity crisis” rather than strategic necessity. In his assessment, CBE’s trust and loyalty have already been eroding over time due to service-related and governance issues, and a logo change would not fix those underlying problems. Public Sentiment and Cultural Resonance The omission of Amharic from the proposed design proved a fatal flaw. In a multilingual nation where language is intertwined with identity and politics, removing a major linguistic symbol from a flagship national brand risked alienating the public and undermining cultural resonance. Brand identity in Ethiopia cannot be divorced from national symbolism. Ethiopian Airlines, for example, has retained Amharic and national colors in its branding while modernizing its look, reinforcing both international professionalism and local pride. CBE’s proposed logo, by contrast, seemed designed for a generic global market, potentially at the cost of its domestic emotional anchor. The Financial Question The 600 million birr price tag has been as controversial as the design itself. While large-scale rebrands are expensive — covering design, signage, software, and marketing — the figure is extraordinary in Ethiopia’s economic context. Critics question whether such an expenditure was prudent, especially for a state-owned bank amid rising inflation, forex shortages, and other operational challenges. A design consultant told The Reporter the work was “amateur” despite the cost, suggesting possible procurement inefficiencies or inflated contracting. Allegations from unnamed sources link the project to deeper mismanagement and even embezzlement schemes within the bank, though such claims remain unproven. Governance and Transparency in State-Owned Enterprises The incident highlights structural weaknesses in how major branding and procurement decisions are made within Ethiopian state-owned enterprises (SOEs). That senior federal officials only learned of the logo days before its launch suggests a lack of high-level oversight and stakeholder engagement during the project’s development. Effective rebranding — particularly for public institutions — requires early consultation with key stakeholders, market testing, and cultural vetting. In CBE’s case, the process appears to have been driven internally with limited transparency, only to be derailed at the final stage by political intervention. This top-down halting of the project also raises questions: Should branding decisions for SOEs be politically approved? How can public enterprises balance creative autonomy with national cultural representation? And most importantly, how can governance frameworks ensure both fiscal responsibility and brand integrity? Lessons for Ethiopian Institutions Strategic Justification is Key – Rebranding should be grounded in clear strategic goals, such as market repositioning or reputation repair, not just aesthetic updates. Cultural Anchoring Matters – In Ethiopia’s context, national symbols, languages, and cultural cues are not optional design elements; they are integral to brand legitimacy. Stakeholder Engagement Prevents Costly Missteps – Early involvement of customers, employees, and regulators can identify potential backlash before millions are spent. Financial Oversight Must Be Stronger – Large public expenditures on branding should be subject to transparent procurement, cost-benefit analysis, and external auditing. Change Management is Crucial – Any brand evolution should be phased, with customer communication that frames the change as part of a broader narrative of progress. Beyond the Logo The aborted logo saga is not just about design. It is a case study in the intersection of branding, politics, and public trust. While the visual mark of CBE may remain unchanged for now, the episode underscores that in Ethiopia — as in many countries — a logo is not simply what a company says it is. It is what the people feel it is, and what the public believes it represents about their shared history and identity. In the end, the greatest damage to CBE may not be the wasted millions, but the erosion of confidence in its decision-making processes. Rebuilding that trust will require more than a logo — it will require transparency, cultural sensitivity, and genuine engagement with the people whose trust the bank’s brand was built to serve.

Ethiopian BPO on the Rise: But Can the Internet Keep Pace?

Ethiopian BPO on the Rise: But Can the Internet Keep Pace? Ethiopia’s business process outsourcing (BPO) sector is expanding rapidly, with market revenue forecast to reach $489.9 million in 2025 and grow at an annual rate of 11.54% to $845.7 million by 2030, according to Statista. The industry now includes about 25 registered firms employing roughly 15,000 workers and generating an estimated $50 million annually—up from $34 million and 3,350 employees in 2021. International players are returning to the market, including Africa’s outsourcing giant CCI Global, which has resumed operations in Addis Ababa. The Ethiopian Outsourcing Association has also been formed to lobby for greater sector support, while government initiatives—such as the Digital Ethiopia 2025 strategy, investments in ICT parks, and improved internet access following telecom liberalization—are enhancing the country’s appeal. A young, multilingual workforce, competitive wage levels, and favorable time zones are positioning Ethiopia as an emerging destination for global outsourcing contracts. Industry experts attribute the growth to an untapped pool of skilled talent and lower labor costs, amplified by the depreciation of the birr. The “Hidden Tax” of Poor Internet Despite the momentum, operators and young professionals say Ethiopia’s weak internet remains a “hidden tax” on the industry—forcing firms to invest in costly backup connections, maintain redundant staffing, or shift work hours to avoid peak network congestion. Some BPO managers warn that without a reliable digital backbone, Ethiopia risks becoming known more for missed deadlines and dropped calls than for its capabilities—jeopardizing hard-won gains in a business where reputation travels faster than the signal itself. “Yes, it has improved compared to before, but it is still not sustainable,” said one operator, who asked not to be named. “We aren’t using the exact amount we buy.” He added that poor connectivity has caused him to miss international meetings and deadlines. “That’s why many are moving to Safaricom,” he noted. Fair Usage Limits and Infrastructure Gaps Experts say that limitations on so-called “unlimited” internet plans stem from international agreements that cap usage. “Fair Usage Policy (FUP), an international guideline, states that every individual should use the internet fairly,” explained Yonas Shiferaw, a network engineer. “But selling unlimited data under a limited policy isn’t appropriate. Remote workers, who consume large amounts of data, are finding this a major headache.” Yonas also questioned whether Ethiopia’s internet speeds truly meet 4G standards. “We haven’t deployed infrastructure that current technology allows. Bandwidth often faces congestion and shrinks as the number of users grows, leading to unreliable connections.” “Many customers are switching to Safaricom,” he added. “But will these speeds hold as the user base expands? The answer is no—we won’t see sustained performance.” He further noted that fixed broadband users often experience speeds far below advertised levels, due to poor equipment quality, insufficient backup power, and aging systems. “These issues mean users get less than what they are promised,” Yonas told Addis Insight. Telecom Investments and Upgrades Ethio Telecom, the state-owned operator, launched 1,683 new mobile sites during the fiscal year ending in June, nearly half (836) of which were in rural areas. It expanded LTE coverage to 512 additional cities, bringing total 4G LTE availability to 936 cities and districts. The company also introduced 5G services in 16 more cities, increasing the total number of 5G-enabled locations to 26. To boost network capacity and speeds, Ethio Telecom deployed Massive MIMO technology at 212 new sites, raising the total to 306. “These initiatives, combined with core 4G and 5G network expansions, have enhanced network capacity, customer experience, and access to quality mobile data services, strengthening the country’s digital infrastructure,” the company said in its latest report. The telecom also upgraded its International Gateway capacity by 840 Gbps to a total of 2.48 Tbps and extended its backbone fiber network by 686 km, bringing the total fiber length—including Optical Ground Wire (OPGW)—to 22,673 km. Last year, Ethio Telecom launched its “Copper Switch Off” initiative, aimed at replacing its aging copper network with high-speed fiber optics. So far, 35,701 customers have migrated to fiber—24,123 of them in the last fiscal year alone. Calls for Faster Fiber Deployment Yonas urged a faster transition from copper to fiber, saying it would enable more efficient management through a centralized digital platform. He also advocated replacing manual processes with automated systems and highlighted airFiber technology, which uses microwave antennas to deliver dedicated internet connections to enterprise clients. Remote workers, he suggested, could access this service if organized collectively. Balancing Growth and Connectivity Ethiopia is making notable progress in its digital transformation, driven by government strategies like Digital Ethiopia 2025 and significant telecom investments. Expanded network coverage, enhanced international capacity, and accelerated fiber rollout have all improved access to the internet and modernized services. However, as the BPO sector and remote workforce continue to grow, persistent connectivity challenges remain a critical hurdle. Ensuring reliable, affordable, high-quality internet is essential—not just to sustain the sector’s momentum, but to fully harness the potential of Ethiopia’s young, skilled workforce and secure its position in the global digital economy.

AfDB to Take Lead in USD 7.8bln Financing Mobilization Drive for Airport Megaproject

Ethiopian Airlines to finance 20 percent of costs out of pocket The African Development Bank (AfDB) is set to lead efforts to raise USD 7.8 billion for the construction of a new international airport in Ethiopia, according to a formal announcement made this week. A formal financing agreement between Prime Minister Abiy Ahmed (PhD) and AfDB outgoing President Akinwumi Adesina is scheduled to be signed on Monday, August 11, 2025. The deal will mark a major milestone in Ethiopia’s longstanding efforts to build a new hub for its state-owned flag carrier, Ethiopian Airlines Group. With the capacity to serve up to 100 million passengers annually, the Bishoftu International Airport slated for completion in three years is projected to become the largest on the continent. The signing of the agreement would mark a major turning point in Ethiopia’s most ambitious aviation infrastructure project to date and the announcement comes over a year after Ethiopian Airlines formally launched the project’s design and financing process. In August 2024, Ethiopian Airlines CEO Mesfin Tasew signed a design and consultancy contract with Dar Al-Handasah, a Beirut-based engineering firm. The deal with the firm was finalized at the Ethiopian Skylight Hotel following a restricted international bid process involving 16 companies. The UAE based company, which previously worked on the Skylight Hotel and Bole terminals, was hired to design the 35 square-kilometer ‘Airport City’ near Obosirraa, in the Bishoftu area of Oromia Regional State. “The cost of the entire project will be determined by the detailed design Dar Al-Handasah is going to hand over,” Mesfin told The Reporter last year, estimating the cost of the first phase alone at USD six billion. Earlier this week, during a press brief the CEO disclosed that the total cost of the project would be closer to USD 10 billion, with Ethiopian Airlines funding 20 percent from internal sources and the remainder expected from lenders. The engineering firm’s plans include four parallel runways, aircraft maintenance hangars, cargo and catering centers, an express railway to Addis Ababa, and parking for 270 aircraft. The first phase is set to include two runways and infrastructure to accommodate 60 million passengers annually, well above Bole International’s current 25 million capacity. A critical component of the airport city project features the resettlement of around 2,500 farming households currently occupying the proposed airport site. In April 2025, the Ministry of Finance revealed that Ethiopian Airlines had allocated 30 billion Birr to prepare the land for construction, of which 17 billion Birr is earmarked for compensation and development works related to resettlement. Group CEO Mesfin confirmed the airline had received 740 hectares from the Oromia regional administration for relocation purposes and also that a local firm, K2L, has been contracted to finalize resettlement design by December 2025, after which construction of housing and other basic services will begin. The full relocation process is expected to be completed by the end of 2026. This week, the CEO disclosed that the resettlement process will be concluded within the next two months. On the other hand, efforts to secure financing gained momentum in March 2025, when Finance Minister Ahmed Shide and Ethiopian Airlines executives submitted a formal letter of intent to the African Development Bank. At the time AfDB President Adesina hailed the planned airport city as a “flagship African project” and pledged the Bank’s support in mobilizing funds. AfDB efforts in leading the mammoth project finance mobilizations is expected to grow its investment portfolio in Ethiopia, which currently stands at USD 1.2 billion across energy, agriculture, and infrastructure sectors. Dar Al-Handasah, a partner of Zaha Hadid Architects, is expected to deliver final designs by next year. The company is also assisting Ethiopian Airlines in selecting contractors for the construction phase, which is expected to begin shortly after resettlement concludes in 2026. The Airline Group envisions the new airport as a centerpiece of Ethiopia’s ambitions to reaffirm its dominance in African aviation.

AfDB to Lead $7.8 Billion Funding Drive for Africa’s Largest Airport in Bishoftu, Ethiopia

AfDB to Lead $7.8 Billion Funding Drive for Africa’s Largest Airport in Bishoftu, Ethiopia The African Development Bank Group (AfDB) has been officially tasked with mobilizing the $7.8 billion in financing needed for the construction of the Bishoftu International Airport—a transformative infrastructure project set to redefine Africa’s aviation landscape. Prime Minister Abiy Ahmed is scheduled to formalize the partnership on Monday in Addis Ababa, signing alongside Akinwumi Adesina, President of the AfDB. The agreement marks one of Ethiopia’s most ambitious transport investments to date, signaling a major push to position the country as a global aviation hub. Located 40 kilometers south of Addis Ababa in the rapidly developing town of Bishoftu, the new facility will surpass all existing African airports in scale. Upon completion of its first phase, Bishoftu International Airport will handle 60 million passengers annually—more than double the traffic of Africa’s current busiest airports, such as O. R. Tambo International in Johannesburg and Cairo International Airport, which process between 18 million and 29 million passengers a year. At full build-out, the airport’s capacity will reach a staggering 110 million passengers, placing it on par with some of the world’s largest aviation hubs in Asia and the Middle East. Construction Timeline and ScopeThe first phase of construction is expected to break ground in late 2025, incorporating multiple runways, advanced passenger terminals, a state-of-the-art cargo handling center, and integrated rail and expressway links to the capital. The existing Bole International Airport—already stretched near its design limits—will be reconfigured primarily for domestic flights, allowing Bishoftu to absorb the bulk of international and regional operations. Ethiopian Airlines at the CoreEthiopian Airlines Group, Africa’s largest and most profitable carrier, views the project as the keystone of its Vision 2035 strategy, which focuses on network expansion, infrastructure modernization, and workforce development. The carrier expects the new hub to enhance its global competitiveness, enabling faster connections between Africa, Asia, Europe, and the Americas while expanding its already dominant cargo operations. Continental and Global SignificanceThe Bishoftu project aligns with broader African Union goals, particularly Agenda 2063 and the African Single Air Transport Market (SAATM), both of which seek to boost intra-African connectivity, reduce travel times, and promote economic integration. Industry analysts note that the airport’s scale and location could make it a primary transfer point for Africa-bound intercontinental flights, challenging established hubs in the Gulf states and Europe. Beyond aviation, the mega-project is expected to generate tens of thousands of jobs during construction and spur economic growth in the Bishoftu area, which is poised to become a major logistics, hospitality, and services hub. With AfDB spearheading resource mobilization, Ethiopia is signaling that it intends to move swiftly on a project that could redefine not only its own transportation network but also the future map of global air travel.

National Bank of Ethiopia: $500M Monthly Forex Flow Now Available Through Banks

National Bank of Ethiopia: $500M Monthly Forex Flow Now Available Through Banks Addis Ababa, July 30, 2025 (FMC) — The Governor of the National Bank of Ethiopia (NBE), Ato Mamo Mehretu, has called on the business community to immediately cease using the parallel (informal) foreign exchange market. His remarks come amid a significant rise in the country’s official foreign exchange reserves and renewed efforts to stabilize the forex market through expanded auction mechanisms. “The National Bank’s forex position is stronger than it has been in years. We now have the resources and the mechanisms to meet the country’s forex needs through formal banking channels,” said Ato Mamo. 💰 $150 Million Auction Reflects Improved Supply In the latest foreign exchange auction conducted on July 29, a total of 28 commercial banks participated, and the National Bank allocated $150 million USD. The weighted average exchange rate was 138 birr per US dollar. According to the NBE, all participating banks confirmed that they received the foreign currency they requested and have pledged to meet customer forex demands next week. “This auction system not only boosts liquidity for banks but also helps stabilize the overall forex rate and counteracts volatility from the informal market,” the Governor noted. 📈 $500 Million in Monthly Supply to Private Sector Ato Mamo also revealed that Ethiopia’s formal banking system is now supplying approximately $500 million USD in foreign exchange every month to the private sector—a dramatic increase reflecting improved market confidence. “The amount of forex being distributed to legitimate businesses is growing fast. All banks have assured the National Bank that they will provide enough currency in the coming days,” he added. ⚠️ Strict Warning Against Informal Forex Use Despite these improvements, the Governor issued a sharp warning to businesses and individuals still transacting in the parallel market. He emphasized that the NBE would take strict action against violators, including the confiscation of funds and other penalties. “There is no longer any justification for relying on illegal forex sources. The complaints about insufficient supply have been addressed,” he stated. He further assured importers that complaints about banks requesting deposits exceeding LC values have been resolved, and any such illegal practices can be reported directly to the NBE. 🛫 Forex for Travelers Available Legally The National Bank also assured that individuals needing small amounts of foreign exchange—especially travelers—can access it without difficulty through licensed foreign exchange bureaus and commercial banks. 🌍 Ongoing Crackdown on Illicit Overseas Remittances The Governor also highlighted continued operations against illegal money transmitters abroad, particularly those based in the UAE and elsewhere, who are actively attempting to distort Ethiopia’s financial system. “We will continue cracking down on those trying to manipulate our economy from abroad. Legal channels are open and improving—there’s no need for backdoor dealings,” he warned. 📊 Key Figures 📌 Final Call to the Business Community Ato Mamo concluded with a direct appeal to Ethiopian businesses: “This is a turning point. We have the tools to support a stable and fair market, but we need full cooperation from the business community to make it work.” For concerns or reports about illegal practices in foreign exchange transactions, businesses are encouraged to contact the National Bank of Ethiopia directly via www.nbe.gov.et. LEAVE A REPLY Cancel reply Save my name, email, and website in this browser for the next time I comment. Δdocument.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() );

National Bank of Ethiopia Issues Stern Warning to Illegal Money Transmitters Operating in UAE

National Bank of Ethiopia Issues Stern Warning to Illegal Money Transmitters Operating in UAE Addis Ababa, Ethiopia – The National Bank of Ethiopia (NBE) has issued a strong warning against unauthorized money transmitters operating from the United Arab Emirates, particularly Dubai, for fueling the black market and destabilizing Ethiopia’s formal foreign exchange system. In an official statement released this week, NBE Governor Ato Mamo Mehret said the central bank has identified a growing trend of illegal financial operations by overseas entities that are undermining Ethiopia’s economy by expanding parallel currency markets. These underground networks are said to be exacerbating the gap between official and black-market exchange rates, contributing to currency speculation, inflation, and the broader macroeconomic instability. “Entities based abroad, particularly in Dubai, are deliberately working to distort our financial system by manipulating currency flows outside the formal banking channels,” said Governor Mamo. “We are taking this threat seriously and will continue to act decisively against those involved.” The NBE emphasized that it is prepared to implement stringent measures—including the freezing or confiscation of illegally transmitted funds—to crack down on informal currency trading. The Bank also stated it would work in coordination with international financial regulators and partners to track and stop such activities at the source. The central bank’s warning comes amid ongoing efforts to stabilize the country’s foreign exchange market, which has seen increasing pressure due to limited hard currency reserves and a widening gap between official and black-market rates. The illicit flow of money through unregistered channels has become a major challenge for policymakers trying to manage exchange rates and maintain economic discipline. In addition to targeting illegal actors abroad, the NBE has urged domestic businesses and individuals to cease participation in the informal market and fully utilize the formal banking system for all financial transactions. “We call on all members of the business community to immediately transition their operations into the formal banking sector. Continued reliance on informal systems poses a serious threat to the country’s economic stability,” the Bank noted. This crackdown is part of a broader policy initiative by the National Bank to enhance transparency, rebuild foreign currency reserves, and restore confidence in the formal financial sector. Recent reforms—such as the introduction of foreign exchange auctions—are aimed at gradually liberalizing the forex market and reducing reliance on informal currency trading. Analysts note that unless coordinated international enforcement and local compliance efforts are intensified, illegal remittance and currency trade networks may continue to undercut Ethiopia’s financial recovery efforts.

New Bus Line Connects Nairobi and Addis Ababa with Round-Trip Fare of 16,000 Birr

New Bus Line Connects Nairobi and Addis Ababa with Round-Trip Fare of 16,000 Birr August 6, 2025 | Addis Ababa / Nairobi — A new cross-border ground transportation service has officially launched between Nairobi, Kenya and Addis Ababa, Ethiopia, offering an affordable travel alternative with enhanced comfort and daily service. Abyssinia Luxury Coach, a transport company operating in the region, began its services last Sunday, according to company director Michael James Macchio, who spoke with the BBC. “The round-trip fare from Nairobi to Addis Ababa is 15,000 Kenyan shillings (about 16,000 Ethiopian birr),” Macchio said. “We charge 7,500 shillings per trip.” The launch introduces a direct bus connection between the two capital cities, filling a service gap left by previous operators. Prior to Abyssinia’s entry, Royal Allied, which was established four years ago, offered routes between Nairobi, Moyale, and Mombasa—but did not extend service beyond Moyale into Ethiopia. Addressing Market Demand According to Macchio, the company was founded to address growing demand for overland cross-border transport, particularly in light of high airline ticket prices. “Due to the popularity of air tickets, there was a need for bus transport, and no service provider was addressing it. We started Abyssinia to fill this gap—even though we originally didn’t plan to operate the Nairobi–Addis route.” The company launched its first official trip last Sunday. Despite limited promotion, seven passengers booked tickets to travel directly to Addis Ababa, while most passengers were headed to Moyale. In contrast, Thursday’s service was sold out, suggesting strong and growing demand. Fleet and Service Expansion Abyssinia currently operates eight buses and plans to expand to 16, with six buses to be based in Ethiopia and imported via Djibouti. Each coach is equipped with: 46 seats, intentionally limited for spaciousness Wider seat design Onboard attendants Separate restrooms for men and women Internet access and entertainment screens Route and Schedule Details The buses operate daily and follow the schedule below: Departure: 04:00 PM from Nairobi Arrival in Moyale: Early the next morning Border process: Passengers wait until immigration opens at 8:00 AM Ethiopian leg: Departure from Moyale at 8:30 AM, passing through Yabelo, Bule Hora, Dilla, and Hawassa Arrival in Addis Ababa: Approximately 7:00 PM Focus on Safety and Security Macchio noted that the company prioritizes road safety and only operates during daylight hours within Ethiopian territory. “We are going to Moyale based on information about road safety. We do not travel at night within the Ethiopian border—the bus only travels during the day,” he said. He added that he has personally traveled the route more than ten times and has not experienced any security incidents. The company continues to monitor the situation in coordination with local contacts in Moyale. Abyssinia Luxury Coach enters a market with limited overland cross-border services, offering a lower-cost alternative for passengers moving between two of East Africa’s major urban centers. With plans to expand its fleet and increase visibility, the company aims to position itself as a reliable link in the region’s growing transport network. LEAVE A REPLY Cancel reply Save my name, email, and website in this browser for the next time I comment. Δdocument.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() );