Council of Ministers Forwards Draft Proclamation on Foreign Ownership of Property to Parliament

Council of Ministers Forwards Draft Proclamation on Foreign Ownership of Property to Parliament April 23, 2017 – In its 44th regular session held today, the Council of Ministers unanimously agreed to forward a draft proclamation to the House of People’s Representatives. The draft aims to define the legal conditions under which foreigners can own or possess immovable property in Ethiopia. The proposed legislation establishes a framework that protects citizens’ rights to acquire and utilize land while encouraging foreign investment. The Council emphasized that this initiative will help attract foreign capital, stimulate housing development, balance housing supply and demand, and create employment opportunities. Deliberation on Financial Agreements In addition, the Council discussed two financial assistance agreements—one with the Government of Italy and another with the International Development Association (IDA). The Italian government has extended a grant of €11.5 million to support Ethiopia’s Environmental and Green Economy Development Budget Program. The loan will be repaid over 30 years, with a 16-year grace period. The IDA has provided 38.1 million Special Drawing Rights (SDR) to fund the Education Sector Transformation Program. This loan is to be repaid over 38 years, including a 6-year grace period, and carries a 0.75% service charge. The Council confirmed both agreements are interest-free and align with Ethiopia’s debt management policy. These draft proclamations were also unanimously approved to be forwarded to the House. Membership in the African Finance Corporation The Council reviewed a draft proclamation to ratify Ethiopia’s membership in the African Finance Corporation, which supports infrastructure, natural resource, and industrial development. The Council stated that joining the corporation will unlock additional financial resources for the private sector, boost economic growth, and reduce poverty. The draft was unanimously approved for submission to the House of People’s Representatives. Implementation of AfCFTA Tariff Reductions The Council also discussed a draft regulation to implement tariff reductions under the African Continental Free Trade Area (AfCFTA) Agreement. The regulation aims to enhance intra-African trade, develop value chains, and support economic transformation. It also outlines new customs tariff rates for goods imported from AfCFTA member countries to ensure smooth trade flows. The Council decided that the regulation will take effect one month after its publication in the Federal Gazette. Service Fee Regulations for Federal Institutions Two draft regulations were discussed concerning service fees charged by the Ministry of Transport and Logistics and the Civil Society Organizations Authority. The new fees are designed to cover service costs, boost institutional revenues, and improve service quality and customer satisfaction. The Council approved these regulations to take effect upon publication in the Negarit Gazette. Air Transport Agreement with Austria Lastly, the Council reviewed a draft proclamation approving an air transport agreement with the Austrian government. The agreement is expected to strengthen bilateral relations, expand market access for Ethiopian Airlines, and enhance trade, investment, tourism, job creation, and foreign exchange earnings. The Council unanimously approved forwarding the draft to the House of People’s Representatives. All decisions were made in accordance with information provided by the Office of the Prime Minister.

Federal Government Launches “Mesob” One-Stop Digital Service Center

Federal Government Launches “Mesob” One-Stop Digital Service Center In a groundbreaking move towards digital transformation, the federal government has officially launched Mesob, a one-stop service platform designed to integrate multiple public services under one digital system. Utilizing state-of-the-art technology, Mesob enables citizens to access a wide range of federal services online, eliminating the need for physical visits, long queues, and cumbersome paperwork. Under the pilot phase, twelve federal institutions have come together to offer 41 essential services through Mesob. These services span across licensing, immigration, digital ID registration, investment facilitation, and more. The participating institutions include: National Identification Service Immigration and Citizenship Service Document Verification and Registration Service Ministry of Revenue Ministry of Trade and Regional Integration Ministry of Employment and Skills Ethiopian Investment Commission Ministry of Foreign Affairs Educational Assessment and Examination Service Ethio Post Commercial Bank of Ethiopia Ethio Telecom Each institution is also utilizing advanced digital communication technologies to ensure efficient service delivery and user support. Officials described Mesob as a major leap toward a citizen-centered government, where accessing services is simple, transparent, and fully digital. “This is a significant milestone in our journey toward a modern and efficient public service system,” a government spokesperson stated at the launch event. “Mesob represents our commitment to using technology to serve our citizens better.” The government plans to evaluate the pilot program’s performance, gather feedback from users, and make improvements before expanding Mesob to cover more services and institutions across the nation. 2 COMMENTS Mahelet April 28, 2025 At 8:06 am First of all controlling this service giving place is good and thank you for seeing the gaps and may GOD save Ethiopia and people from morning to evening Second of all if it doesn’t have any access to my account why you need us the credit card No. Above that I tried it and I wanted to know if it has its own credit card because it doesn’t work in Dashen bank credit card. And lately there is Mesob app in play store but not this Mesob app can you add another name. Thank you First of all controlling this service giving place is good and thank you for seeing the gaps and may GOD save Ethiopia and people from morning to evening Second of all if it doesn’t have any access to my account why you need us the credit card No. Above that I tried it and I wanted to know if it has its own credit card because it doesn’t work in Dashen bank credit card. And lately there is Mesob app in play store but not this Mesob app can you add another name. Thank you Gudeta Lefe Nanesa April 29, 2025 At 6:35 am This is great digital and technolgical advancement brought forward,the soft ware being doneand tested by Ethipian Nationals, young generation. This saves time,money,fraud and the like. Keep up and extend same othe parts nation wide.. This is great digital and technolgical advancement brought forward,the soft ware being doneand tested by Ethipian Nationals, young generation. This saves time,money,fraud and the like. Keep up and extend same othe parts nation wide.. Comments are closed.

Ethiopia: Passport Services to Require National ID (Fayida) Starting June 1

Ethiopia: Passport Services to Require National ID (Fayida) Starting June 1 Addis Ababa, April 18, 2017 (FMC) — In a major policy shift aimed at enhancing security and improving service delivery, Ethiopia’s Immigration and Citizenship Service has announced that a valid National ID, known as Fayida, will become a mandatory prerequisite for obtaining a passport, effective June 1, 2017. The Immigration and Citizenship Service disclosed that it has reached an agreement with the National Digital Identity Program (Fayida) to integrate digital ID verification into the passport issuance process. This move is part of broader reform efforts aimed at curbing identity fraud and ensuring the authenticity of personal documents. Officials stated that requiring a valid National ID number will bolster the integrity of immigration services and streamline access to public services. The new system is designed to make passport services more secure and accessible across the country. Individuals who have already applied for passport services and are awaiting issuance are advised to register with the Digital Identity Program and obtain a unique service number. To facilitate this, users can either present a printed version of their Fayida ID or show the digital copy on their mobile devices during passport processing. The National Digital Identity Program emphasized that the new requirement marks a significant step toward modernizing identity management in Ethiopia, with broader benefits for public administration and citizen services.

Fitch Upgrades Ethiopia’s Local Currency Rating Amid Macroeconomic Reforms

Fitch Upgrades Ethiopia’s Local Currency Rating Amid Macroeconomic Reforms April 26, 2025 Hong Kong – Fitch Ratings has upgraded Ethiopia’s Long-Term Local-Currency Issuer Default Rating (LTLC IDR) from ‘CCC-‘ to ‘CCC+’, citing easing financing pressures and improved macroeconomic stability. However, the country’s Long-Term Foreign-Currency IDR (LTFC IDR) remains at ‘RD’ (Restricted Default), reflecting its ongoing external debt restructuring efforts. The upgrade reflects a series of sweeping reforms by the Ethiopian government and the National Bank of Ethiopia (NBE), including a move to market-based exchange rates, the phasing out of non-market-based domestic financing, and the introduction of an interest rate-based monetary policy. These measures have significantly boosted investor confidence in the country’s ability to meet its local-currency debt obligations. Fitch highlighted the IMF’s approval of a four-year Extended Credit Facility Arrangement for Ethiopia in July 2024, providing immediate disbursement of $1 billion and a total commitment of $3.4 billion. Additional expected funding from the World Bank, totaling $3.75 billion, is anticipated to substantially ease the country’s reliance on domestic financing. Despite these positive developments, Ethiopia remains in default on its foreign-currency obligations after suspending payments on its $1 billion Eurobond in December 2023. The government is currently negotiating the restructuring of about $15.1 billion of external debt under the G20 Common Framework, with agreements with official and commercial creditors expected later this year. Macroeconomic indicators show signs of cautious optimism. Fitch projects Ethiopia’s fiscal deficit to rise modestly to 2.7% of GDP in the fiscal year ending June 2025 (FY25), up from 2% in FY24, driven largely by increased public spending and reforms. The country’s general government debt is forecast to peak at 39.4% of GDP in FY25, up from 29.1% the previous year, due to exchange rate depreciation and higher multilateral borrowing. Foreign reserves, which stood precariously low at just over $1 billion in FY24, are expected to rebound to $4.5 billion by FY26, helped by increased multilateral disbursements and stronger export performance following exchange rate liberalization. However, risks remain. Ethiopia’s ESG (Environmental, Social, and Governance) scores continue to reflect significant governance challenges, including political instability, weak rule of law, and high corruption levels, all of which weigh on the country’s overall credit profile. Fitch emphasized that successful completion of external debt restructuring and continued macroeconomic reforms could lead to further rating upgrades. Conversely, renewed liquidity pressures or setbacks in reform implementation could result in rating downgrades. The Country Ceiling for Ethiopia remains affirmed at ‘B-‘, reflecting the relative freedom of private sector transactions in foreign currency despite sovereign credit challenges.

Ethio Telecom Sells Only 10.7% of 100 Million Shares After 121 Days of IPO Offering

Ethio Telecom Sells Only 10.7% of 100 Million Shares After 121 Days of IPO Offering Share Sale Results: Only a Fraction Sold Six months after launching Ethiopia’s first-ever Initial Public Offering (IPO), Ethio telecom announced it had sold just 10.7 million out of the 100 million ordinary shares on offer. Initially planned to run from October to January, the IPO was extended by an additional five weeks and officially closed in February. Investor Participation and Fund Collection At a ceremony held Friday afternoon at the Skylight Hotel, CEO Frehiwot Tamiru revealed that 47,377 investors participated over 121 offer days, raising a total of 3.2 billion birr. Although there had been interest from banks and Ethiopian-born foreign nationals, Frehiwot confirmed that only individual investors completed purchases during this round. “The limited sales were largely due to the restrictions we imposed,” Frehiwot explained in response to media questions. Investment Terms and Current Status Investors were required to buy a minimum of 33 shares (worth 9,900 birr) and could purchase up to 3,333 shares (valued at 999,900 birr), with each share priced at 300 birr. Funds collected from the IPO will remain in a blocked account until further decisions are made about the unsold shares. Frehiwot indicated that internal discussions regarding the next steps are ongoing. Ethio Telecom’s Position in Ethiopia’s Securities Exchange Ethio telecom is among five state-owned enterprises designated to list on the Ethiopian Securities Exchange (ESX), which officially launched in January, three months after the telecom’s IPO opened. However, Wegagen Bank became the first to actually list on the new exchange, offering 6.2 million shares. The Exchange has set a target of listing up to 50 companies within five years to build a dynamic capital market. Public Education and Challenges Ahead Frehiwot highlighted that Ethiopia’s public needs more exposure to and education about capital markets if future share offerings are to see greater participation. The relatively muted public response adds to the challenges facing Ethiopia’s broader push to partially privatize major state assets. Privatization Efforts: Setbacks and Delays The government first announced plans to privatize 40% of Ethio telecom in June 2021, but the effort was suspended by March 2022 due to unfavorable global and local economic conditions. Although revived in late 2022, strong contenders like the Emirates Telecommunications Group and France’s Orange ultimately withdrew from the process.

Lemi National Cement Powers Ethiopia’s Construction Boom with Over 12 Million Quintals Delivered

Lemi National Cement Powers Ethiopia’s Construction Boom with Over 12 Million Quintals Delivered Lemi National Cement PLC is making major waves in Ethiopia’s construction industry, having supplied more than 12 million quintals of cement in just six months. This surge in distribution comes at a critical time, helping to ease the country’s long-standing cement shortage. With an impressive annual production capacity of 4.5 million metric tons, Lemi accounts for a significant portion of Ethiopia’s estimated 6.7 million metric ton national output. The company’s ability to maintain a steady supply across the country has been supported by a strong distribution network, ensuring cement reaches even the most remote markets. Thanks to these efforts, the market has seen improved stability and a noticeable drop in price fluctuations. Lemi attributes part of this success to its adoption of modern manufacturing technologies, boosting both the quality and efficiency of its production. Beyond cement, Lemi has its eyes on broader industrial ambitions. Plans are underway to enter the gypsum production sector—an important resource for agriculture and soil treatment. This move not only aligns with Ethiopia’s push for import substitution but also positions Lemi to play a leading role in regional economic growth. As Ethiopia’s demand for construction materials continues to climb, Lemi National Cement stands ready to meet the challenge and drive forward the nation’s development.

National Bank of Ethiopia Launches Modernized Ethiopian Automated Transfer System

National Bank of Ethiopia Launches Modernized Ethiopian Automated Transfer System The National Bank of Ethiopia (NBE) has officially launched the enhanced Ethiopian Automated Transfer System (EATS), a landmark upgrade that now operates using the internationally recognized ISO 20022 messaging standard. This significant development represents a pivotal step forward in the modernization of Ethiopia’s national payment infrastructure, aligning it with global best practices in financial communication and transaction processing. The adoption of ISO 20022—a flexible and data-rich messaging framework—brings substantial improvements to the country’s high-value interbank payment system. It enhances not only the speed and reliability of transactions but also strengthens security protocols, reducing risks associated with data misinterpretation and fraud. By enabling more structured, detailed, and transparent payment information, the new system is poised to support better reconciliation, streamlined operations, and more informed financial oversight. Currently, more than 35 financial institutions across Ethiopia are integrated into the upgraded EATS platform, underscoring its central role in the country’s financial ecosystem. This broad participation reflects a collective commitment within Ethiopia’s banking sector to foster a more resilient, efficient, and future-ready financial environment. The modernization of EATS is expected to significantly bolster interbank collaboration, facilitate more robust liquidity management, and support the broader goals of financial inclusion and economic growth. With this launch, the National Bank of Ethiopia reinforces its vision of establishing a dynamic and secure payment landscape that can adapt to the evolving needs of businesses, consumers, and the broader economy.

Kenya Poised to Surpass Ethiopia as East Africa’s Largest Economy in 2025

Kenya Poised to Surpass Ethiopia as East Africa’s Largest Economy in 2025 April 23, 2025 | Africa Economics Desk Kenya is on track to overtake Ethiopia as East Africa’s largest economy this year, according to projections from the International Monetary Fund (IMF). The shift, driven largely by divergent monetary policies and currency dynamics, marks a turning point in the economic landscape of the region. GDP Projections Signal a Changing Guard The IMF’s latest World Economic Outlook estimates Kenya’s gross domestic product (GDP) will rise to $132 billion in 2025. Ethiopia, once the region’s fastest-growing economy, is expected to post a GDP of $117 billion. This economic reversal reflects not only macroeconomic shifts but also a rebalancing of growth strategies between the two nations. Ethiopia’s Currency Devaluation and Economic Restructuring For decades, Ethiopia maintained strict controls on its national currency, the birr. In July 2024, however, the government implemented a sweeping liberalization of its exchange rate regime. This decision led to a sharp depreciation of the birr by more than 55% against the US dollar. The move, while painful in the short term, was a necessary precondition for securing major international financing. As a result of the devaluation and broader economic reforms, Ethiopia secured a $3.4 billion loan package from the IMF and an additional $16.6 billion from the World Bank. The country is also now engaged in negotiations to restructure roughly half of its $28.9 billion in external debt, a process critical to restoring fiscal stability and investor confidence. Kenya’s Currency Strength and Capital Inflows In contrast, the Kenyan shilling emerged in 2024 as the best-performing currency globally, appreciating by around 21%. This surge was supported by several factors, including the successful issuance of a $1.5 billion Eurobond in February 2025, which significantly bolstered the country’s foreign exchange reserves. Kenya also benefited from increased diaspora remittances and stronger export receipts, with its Treasury noting that these inflows played a crucial role in stabilizing the economy during a challenging global environment. Political and Fiscal Hurdles Despite its economic progress, Kenya continues to face internal challenges. A controversial tax reform package aimed at reducing the budget deficit triggered widespread protests in 2024, resulting in the deaths of at least 60 people. The unrest forced the government to abandon parts of the reform plan, complicating its fiscal targets under a four-year, $3.6 billion IMF program. Due to missed milestones and public backlash, Kenya exited the IMF program ahead of schedule, foregoing approximately $850 million in funding. Talks are ongoing to establish a revised support arrangement. Regional Growth Forecasts and Global Headwinds Both economies are navigating a turbulent global environment. Ongoing trade tensions, including tariff hikes by major economies like the United States, have dampened global demand and impacted developing markets. In response, the IMF has downgraded its global growth forecast for 2025 from 3.3% to 2.8%, citing widespread downside risks. Regionally, Sub-Saharan Africa is projected to grow by just 3.8% this year — the slowest pace since the 2020 pandemic. Within this broader context, the IMF has trimmed Kenya’s expected growth from 5.0% to 4.8%, while marginally increasing Ethiopia’s from 6.5% to 6.6%. Broader Implications for East Africa The shift in economic rankings between Kenya and Ethiopia underscores the importance of currency policy, fiscal discipline, and political stability in shaping national economies. Kenya’s near-term economic strength is a product of global integration and financial market access, while Ethiopia’s strategy represents a painful but necessary transformation toward liberalization and long-term debt sustainability. As both countries navigate these transitions, their paths will influence not only domestic development but also the trajectory of East African economic integration and influence on the continent.

Boeing Expands African Presence with New Office in Addis Ababa

Boeing Expands African Presence with New Office in Addis Ababa Addis Ababa, Ethiopia – April 23, 2025 – In a move underscoring its long-term commitment to the African aviation industry, Boeing has officially opened a new administrative office in Addis Ababa, Ethiopia. This marks the company’s second office on the continent and reinforces its strategic efforts to support airline partners and aviation stakeholders across Africa. The newly inaugurated facility will serve as a regional hub to strengthen customer engagement, streamline administrative operations, and drive innovation within Africa’s rapidly growing aerospace market. The expansion also builds upon Boeing’s 75-year presence on the continent, further solidifying its role in shaping the future of aviation in Africa. The launch event drew several high-profile dignitaries and industry leaders, reflecting the strategic importance of the development. Among the attendees were: H.E. Dr. Alemu Seme, Minister of Transport & Logistics, Federal Democratic Republic of Ethiopia H.E. Ervin Massinga, United States Ambassador to Ethiopia Getachew Mengiste, Director General, Ethiopian Civil Aviation Authority Mesfin Tassew, CEO, Ethiopian Airlines Group Boeing’s senior regional leadership also participated in the ceremony, including: Kuljit Ghata-Aura, President of Boeing Middle East, Türkiye, Africa and Central Asia Anbessie Yitbarek, Vice President of Sales & Marketing, Boeing Africa Henok Teferra Shawl, Managing Director, Boeing Africa In a joint statement, Boeing representatives emphasized their dedication to fostering local partnerships, investing in talent development, and supporting the modernization of aviation infrastructure across the continent. “Africa’s aviation sector holds immense potential, and our presence in Addis Ababa will help us better serve our customers, promote collaboration, and contribute to the region’s economic growth,” said Kuljit Ghata-Aura. Ethiopia, home to one of Africa’s most influential carriers—Ethiopian Airlines—continues to be a focal point for aviation development in the region. The new office is expected to facilitate closer cooperation between Boeing and its African partners while contributing to the broader ecosystem of aerospace innovation and safety. As Africa’s aviation industry continues to expand, Boeing’s latest investment signals a broader trend of global aerospace firms deepening their roots in the region, aligning with the continent’s upward trajectory in air travel demand and connectivity.