Commercial Bank of Ethiopia Revises Loan Interest Rates

Commercial Bank of Ethiopia Revises Loan Interest Rates Addis Ababa, Ethiopia – March 4, 2025 – The Commercial Bank of Ethiopia (CBE) has announced adjustments to its loan interest rates, effective March 7, 2025. The changes are part of broader financial sector reforms aimed at aligning lending practices with market conditions, improving financial inclusion, and ensuring the long-term sustainability of Ethiopia’s banking industry. Overview of the Adjustments The revised interest rates apply to a range of loan categories, including commercial, agricultural, residential, and personal loans. The bank states that these adjustments are designed to maintain competitiveness while supporting borrowers across different sectors. The new rates aim to reflect market trends, enhance accessibility, and provide businesses and individuals with more flexible financing options. Key Changes in Loan Interest Rates Agricultural Loans: Short-term and long-term financing: 16.50% Includes loans for fertilizer procurement and mechanized farming investments. Short-term and long-term financing: 16.50% Includes loans for fertilizer procurement and mechanized farming investments. Commercial Loans: Medium-term loans: 18.00% Short-term loans: 15.50% Overdraft facilities and trade financing solutions included in the revised rates. Medium-term loans: 18.00% Short-term loans: 15.50% Overdraft facilities and trade financing solutions included in the revised rates. Residential Condominium Loans: 40/60 financing scheme: 12.00% 20/80 scheme: 12.00% 10/90 scheme: 15.50% Applicable to newly constructed and pre-existing condominium housing units. 40/60 financing scheme: 12.00% 20/80 scheme: 12.00% 10/90 scheme: 15.50% Applicable to newly constructed and pre-existing condominium housing units. Export Sector Loans: Adjusted to 17.00% to promote the competitiveness of Ethiopian exports. Includes financing for pre-shipment and post-shipment activities. Adjusted to 17.00% to promote the competitiveness of Ethiopian exports. Includes financing for pre-shipment and post-shipment activities. Personal Loans: Mortgage loans: 12.00% Vehicle loans: 14.00% Personal loans for employees of foreign currency-generating organizations: 7.00% Consumer loans tailored to meet individual financial needs. Mortgage loans: 12.00% Vehicle loans: 14.00% Personal loans for employees of foreign currency-generating organizations: 7.00% Consumer loans tailored to meet individual financial needs. Strategic Objectives and Market Impact The CBE has indicated that the interest rate adjustments are part of ongoing efforts to optimize credit accessibility while maintaining financial sustainability. The move is expected to ease borrowing costs for priority sectors, such as agriculture, trade, and housing, while ensuring responsible lending practices. The bank has also highlighted additional measures to improve efficiency, including reducing administrative costs, enhancing digital banking services, and streamlining lending procedures. These steps align with Ethiopia’s broader financial sector reforms, which aim to foster a competitive and modern banking industry capable of attracting local and international investment. Economists have noted that while these adjustments may increase borrowing in key sectors, the impact will depend on market demand and the overall economic climate. The private sector, particularly small and medium-sized enterprises (SMEs), is expected to benefit from lowered lending rates in specific categories, potentially driving business growth and job creation. Sector Developments and Future Outlook Ethiopia’s financial sector is undergoing policy shifts to encourage investment and modernize banking operations. The government has been working on various initiatives, including expanding financial access, encouraging digital banking adoption, and opening up the banking industry to foreign investors. The CBE’s interest rate adjustments reflect these broader economic strategies, ensuring that financial services remain adaptable to changing market conditions. With Ethiopia’s banking sector evolving, the role of state-owned banks like CBE remains crucial in facilitating credit access and supporting economic development. Industry experts suggest that further policy reforms and macroeconomic stability will be key factors in determining the long-term impact of these rate adjustments. As financial markets continue to develop, businesses and individuals are encouraged to stay informed on how evolving banking policies affect their financial decisions. The bank encourages customers to visit its branches or official website for detailed information regarding the revised loan terms and conditions. For further updates on Ethiopia’s banking sector and economic developments, stay informed with the latest reports.

New International Convention Center in Addis Ababa Ready for Official Opening Today

New International Convention Center in Addis Ababa Ready for Official Opening Today Addis Ababa, Ethiopia – The grand opening of the New International Convention Center today marks a major milestone in Ethiopia’s efforts to establish itself as a premier destination for global business events, conferences, and exhibitions. Situated on 40 hectares of prime land, the center is designed to accommodate a diverse range of events, from corporate gatherings to cultural festivals, significantly enhancing the country’s hospitality and tourism sectors. With cutting-edge infrastructure, the center aims to foster both local and international collaboration, offering world-class facilities for those attending major events. It is positioned to become the largest conference facility in Ethiopia and one of the most expansive in East Africa, bolstering the country’s standing in the international events and conventions industry. Key Specifications of the New International Convention Center: Total Area: 40 hectares of land Conference Halls: Two large halls with a capacity of 3,000 to 4,000 people each Eight small and medium-sized meeting halls with a total capacity of up to 10,000 people Two large halls with a capacity of 3,000 to 4,000 people each Eight small and medium-sized meeting halls with a total capacity of up to 10,000 people Accommodation: Two hotels with a combined capacity of 1,000 beds Two hotels with a combined capacity of 1,000 beds Exhibition Spaces: Outdoor exhibition area capable of hosting up to 50,000 people Two amphitheaters designed for outdoor events and performances 2 hectares of outdoor exhibition space Outdoor exhibition area capable of hosting up to 50,000 people Two amphitheaters designed for outdoor events and performances 2 hectares of outdoor exhibition space Commercial Facilities: Two shopping malls A variety of restaurants, commercial shops, banks, and other service providers Two shopping malls A variety of restaurants, commercial shops, banks, and other service providers Parking Capacity: The facility is equipped to accommodate thousands of vehicles, providing ample parking for event attendees Strategic Location: Located adjacent to Lemi Park, the second-largest square in Addis Ababa after Meskel Square The center’s modern infrastructure is paired with a prime location, strategically adjacent to Lemi Park, which offers a serene yet accessible environment for both business professionals and visitors. This proximity to one of the city’s largest public spaces also contributes to the convention center’s role in further enhancing the city’s vibrancy and economic activity. The New International Convention Center is set to host a variety of events, ranging from corporate conferences and international trade fairs to cultural exhibitions and live performances. The flexible design of the venue ensures it can cater to different types of gatherings, with options for both large-scale events and more intimate business meetings. Why This Matters for Ethiopia: The opening of the center is expected to significantly boost Ethiopia’s position in the global event-hosting market. By attracting international conferences and exhibitions, the center will drive tourism, create new business opportunities, and provide a platform for local industries to showcase their products and services. It will also play a crucial role in fostering economic growth, offering a venue that can accommodate both public and private sector events, thereby attracting investors, businesses, and entrepreneurs from around the world. The Mayor’s Office has expressed optimism that the center will become a key asset to Ethiopia’s tourism strategy, facilitating long-term economic benefits through increased international exposure and greater opportunities for collaboration. With its expansive capacity and state-of-the-art facilities, the New International Convention Center is poised to become a flagship venue for the region and beyond, enhancing Ethiopia’s reputation as a leading destination for world-class events. The New International Convention Center is not only a testament to Ethiopia’s growing infrastructure capabilities but also an investment in the nation’s future as a central hub for global business and cultural exchange. The facility is expected to make a lasting impact on both the local economy and Ethiopia’s international standing.

Addis Ababa City Administration Introduces New System for VAT Taxpayers to File Monthly Returns

Addis Ababa City Administration Introduces New System for VAT Taxpayers to File Monthly Returns The Addis Ababa City Administration Revenue Bureau has announced the introduction of a new system for over 62,000 VAT taxpayers, designed to enhance VAT service delivery and provide more efficient services. According to the bureau, there are over 62,000 VAT taxpayers in Addis Ababa, and many of them tend to file their returns on the last days of the month. This creates significant pressure on service delivery. Additionally, the existing system has led to difficulties for taxpayers, including penalties due to congestion and internet outages during peak filing times at the end of the month. The bureau also pointed out that the previous system hindered the proper and thorough verification of information provided by VAT registrants, which led to inaccurate decision-making, malpractices, and even fraud. To address these challenges, the new VAT filing schedule will take effect starting February. Under the new system, VAT registrants—whether individuals or organizations—will file their returns according to the following schedule based on the first letter of their names: Names starting with A-G: First week of the month Names starting with H-N: Second week of the month Names starting with O-T: Third week of the month Names starting with U-Z: Fourth and final week of the month In the 2025 fiscal year alone, the Addis Ababa City Administration Revenue Bureau registered 8,540 businesses that were previously not required to register for VAT.

Ethiopia’s Bitcoin Mining Boom: The Cheapest in the World, But at What Cost?

Ethiopia’s Bitcoin Mining Boom: The Cheapest in the World, But at What Cost? Key Findings Mining 1 Bitcoin in Ethiopia costs approximately $1,986, making it one of the most profitable locations for Bitcoin mining. Ethiopia ranks 2nd globally in terms of cost-effectiveness for Bitcoin mining, just behind Iran. Miners in Ethiopia could produce 161 Bitcoins for the same energy cost required to mine just one Bitcoin in Ireland ($321,112). Bitcoin mining in Ethiopia benefits from low electricity costs due to government subsidies and an abundance of hydroelectric power. While electricity costs are favorable, regulatory uncertainty and internet reliability present challenges for miners in Ethiopia. In contrast, countries like Ireland and Belgium have extremely high mining costs due to higher electricity prices, carbon taxes, and reliance on imported energy. Ethiopia may not be fully benefiting from its cheap mining costs, as it risks losing value from its resources without proper regulation and taxation. How Much Electricity is Needed to Mine 1 Bitcoin After the 2024 Halving? The amount of energy required to mine one Bitcoin remains high, increasing costs depending on local electricity prices. On average, mining 1 BTC consumes around 6,400,000 kilowatt-hours (kWh) of electricity. This is equivalent to: Powering 61 U.S. homes for a full year. Driving a Tesla Model 3 around the Earth 86 times. Bitcoin mining has become more energy-intensive over time, particularly after the 2024 halving, which reduced the mining reward and increased competition. This means that cost-efficient electricity is crucial for miners to remain profitable. How Much Does it Cost to Mine 1 Bitcoin in Ethiopia? Ethiopia’s $1,986 per Bitcoin mining cost is among the lowest in the world, thanks to hydroelectric power and government-controlled energy prices. This makes Ethiopia an attractive destination for Bitcoin miners, especially when compared to countries with high electricity costs. For context: Mining in Ethiopia ($1,986) is 54 times cheaper than in the United States ($107,000). It is 161 times cheaper than in Ireland ($321,112), the world’s most expensive country for Bitcoin mining. Even within Africa, Ethiopia ranks as one of the most cost-effective locations, beating Libya ($5,296) and Nigeria ($9,269). Why is Bitcoin Mining More Expensive in Countries Like Ireland and Belgium? Countries like Ireland and Belgium face high Bitcoin mining costs due to several factors: High Electricity Prices: These countries rely on expensive energy sources, including natural gas and imported electricity, leading to higher costs per kilowatt-hour. Carbon Taxes: The European Union imposes strict environmental regulations and carbon taxes, making energy more expensive. Energy Import Dependence: Unlike Ethiopia, which generates most of its electricity from renewable hydroelectric sources, countries like Belgium and Ireland depend on imports, making energy prices volatile and costly. Limited Government Support for Mining: Some European governments discourage Bitcoin mining due to its high energy consumption and environmental impact. Is Ethiopia Losing Out on Bitcoin Mining Profits? While Ethiopia offers some of the lowest mining costs, the country may not be fully benefiting from its natural resources. Minimal Revenue Capture: Ethiopia’s cheap electricity largely benefits miners, many of whom may be operating without proper taxation or reinvestment in the local economy. Potential for Export Revenue Loss: Hydroelectric power that could be sold to neighboring countries or used for industrial growth is instead being used for mining without clear economic returns. Lack of Crypto Regulations: Ethiopia has no well-defined regulatory framework to capitalize on Bitcoin mining revenue through taxation or licensing fees. Electricity Infrastructure Strain: If mining operations expand without government oversight, they could strain the grid, leading to power shortages for other sectors. To maximize benefits, Ethiopia could explore: Implementing a mining tax or electricity premium for miners to ensure national revenue gains. Encouraging reinvestment in local industries to ensure Bitcoin profits benefit the Ethiopian economy. Developing clearer regulations to attract reputable investors while controlling illegal mining operations. The Global Bitcoin Mining Landscape: How Does Ethiopia Compare? While Ethiopia enjoys some of the lowest mining costs, profitability is not just about electricity prices. The global landscape is shifting as miners relocate to cheaper regions. Top 10 Most Profitable Countries for Bitcoin Mining Top 10 Least Profitable Countries for Bitcoin Mining Ethiopia is one of the most profitable places in the world to mine Bitcoin, thanks to low electricity costs driven by renewable energy sources. However, the country must carefully consider whether its cheap energy policies are truly benefiting its economy. To maximize national benefits, Ethiopia should consider implementing mining taxes, regulating the industry, and ensuring miners reinvest locally. Otherwise, the country risks missing out on significant economic opportunities while providing ultra-low-cost energy for external Bitcoin profits. This study used electricity cost data from globalpetrolprices.com (December 2023), as well as mining hardware efficiency data from the CoinWarz Bitcoin calculator. The average mining electricity consumption was calculated using 8 high-performance mining rigs, considering an estimated mining difficulty level of 89,471,664,776,971. Sources: GlobalPetrolPrices.com (December 2023) CoinWarz Bitcoin Calculator Ethiopian Electric Power (EEP) Data Reports Cambridge Bitcoin Electricity Consumption Index (CBECI)

There Are 616 Ethiopian Restaurants in the U.S : A State-by-State Breakdown

There Are 616 Ethiopian Restaurants in the U.S : A State-by-State Breakdown Ethiopian cuisine has firmly established its presence in the United States over the past few decades. Known for its flavorful wot (stews) served atop injera – a tangy, spongy flatbread made from the grain teff that doubles as both plate and utensil 0 – Ethiopian dining offers a unique communal experience. Diners traditionally share a large platter, tearing off pieces of injera to scoop up bites of richly spiced meats, lentils, and vegetables. The first Ethiopian restaurant in the U.S. opened in 1966 in Long Beach, California 1, marking the beginning of Americans’ introduction to this ancient cuisine. Since then, Ethiopian restaurants have spread to numerous cities across the country, becoming beloved establishments in many urban dining scenes. Growth of Ethiopian Restaurants The growth of Ethiopian restaurants in America closely follows patterns of immigration and cultural exchange. Significant Ethiopian immigration began in the 1970s, especially after political upheavals in Ethiopia, leading to growing Ethiopian-American communities in cities like Washington, D.C., Los Angeles, and New York 23. Washington, D.C. and its surrounding areas in Virginia and Maryland now host the largest Ethiopian community outside of Africa 4, and Ethiopian cuisine has been a fixture of the D.C. dining scene since the late 20th century 5. As these communities grew, enterprising restaurateurs opened eateries to serve familiar foods to the diaspora and introduce the cuisine to curious locals. What started as a handful of restaurants in the 1960s and 1970s has expanded dramatically: a few years ago there were roughly 350 Ethiopian and Eritrean restaurants nationwide 6, and recent counts indicate there are about 616 Ethiopian restaurants across the United States as of January 2025 7. This represents a remarkable rise in visibility, although Ethiopian cuisine still remains less ubiquitous than some other international cuisines (for context, those ~350 Ethiopian restaurants were fewer than the number of Chinese restaurants in New York City alone) 8. The expansion continues steadily, with more cities each year getting their first Ethiopian restaurant 9 as awareness of the cuisine spreads. State-by-State Breakdown Ethiopian restaurants are not evenly distributed across the U.S. — some states boast dozens of establishments, while others have none. The table below provides a state-by-state breakdown of the number of Ethiopian restaurants in each state (and the District of Columbia). This data is current as of early 2025 and illustrates where Ethiopian cuisine has gained the strongest foothold. Notably, a handful of states (marked with 0) do not yet have any Ethiopian restaurants, highlighting areas where enthusiasts still have to travel out of state to enjoy this cuisine 11. Source: Aggregated counts of Ethiopian restaurants by state, January 2025 .Note: Seven states – Arkansas, Delaware, Montana, New Hampshire, Rhode Island, West Virginia, and Wyoming – have no Ethiopian restaurants as of this data 13. Key States with the Highest Concentration As the table shows, Ethiopian restaurants thrive in certain key states and metro areas. California leads by sheer number, with about 88 Ethiopian restaurants spread across its major cities (from Los Angeles to the Bay Area) 14 . However, the highest concentration is arguably in the Washington, D.C. metropolitan region. The District of Columbia alone counts 33 Ethiopian restaurants 15, and when combined with its neighboring states (Virginia has 50 and Maryland 40) 16 , this area is a true stronghold of Ethiopian cuisine. This correlates with the region’s large Ethiopian immigrant population – the D.C. area is home to the largest Ethiopian community outside of Ethiopia itself 17 , often earning parts of D.C. nicknames like “Little Ethiopia.” Other states with notably high counts include Texas (~55 restaurants, anchored by communities in cities like Dallas and Houston) 18 , Washington State (43, mostly in Seattle and vicinity) 19, and Georgia (31, largely in the Atlanta area) 20 . New York also boasts around 31 Ethiopian restaurants 21, primarily in New York City, reflecting the diverse dining scene of the metro area. Several other pockets of the country have become hubs for Ethiopian food. For instance, Minnesota (30 restaurants) 22 has a significant Ethiopian and East African community in the Minneapolis–Saint Paul area. Nevada, despite its smaller population, hosts 17 Ethiopian restaurants 23 — many of them in Las Vegas, which is known to have a surprisingly vibrant Ethiopian dining scene 24. States like Colorado (29) and Oregon (12) have seen growth as cities like Denver and Portland embrace the cuisine. In general, states with larger Ethiopian-American populations or cosmopolitan food cultures tend to have more restaurants. Besides the D.C. area and California, other notable Ethiopian cuisine hubs include the Seattle-Tacoma region, the greater Los Angeles area, the Dallas-Arlington area, and the Atlanta metro 25 – all places where Ethiopian communities and adventurous eaters support a thriving restaurant scene. Why Ethiopian Cuisine is Gaining Popularity The rising popularity of Ethiopian restaurants in the U.S. can be attributed to several factors. Food lovers are drawn not only to the delicious flavors but also to the distinctive dining style and cultural experience that Ethiopian cuisine offers. Below are some key reasons why Ethiopian food has been gaining a wider audience: Unique communal dining experience: Eating at an Ethiopian restaurant is often a social event. Diners share one large platter and eat with their hands by scooping stew-laden injera. This intimate, communal style of dining creates a fun and engaging atmosphere that many Americans find memorable and enjoyable 26 . Rich flavors and spices: Ethiopian dishes are layered with spices and slow-cooked flavor. A key ingredient is the spice blend berbere – typically containing chili peppers, garlic, ginger, basil, fenugreek, and more – which gives many dishes a fiery complexity 27. For those who love bold, hearty cuisines (akin to Indian or Middle Eastern flavors), Ethiopian food offers a new palette of tastes to explore. Health and dietary appeal: Ethiopian cuisine happens to be very vegetarian- and vegan-friendly due to religious fasting traditions that emphasize plant-based dishes. Staples like lentils, chickpeas, vegetables, and the grain teff (used to make injera) are packed with nutrients. Teff is a gluten-free “super grain” rich in iron, fiber, and protein. These wholesome ingredients cater to modern health-conscious diners and those with dietary restrictions 28 . In an era when many people seek out high-protein grains and vegan protein sources, Ethiopian food fits the bill. Affordability and generosity: Ethiopian restaurants have a reputation for offering generous portions of hearty food at reasonable prices. Historically, in cities like Washington D.C., going out for Ethiopian has been a go-to option for a satisfying, inexpensive meal 29. Sharing a large combo platter among friends or family is not only enjoyable but cost-effective, providing great value for the money. Another factor is the increasing curiosity and openness of American diners to try global cuisines. As Ethiopian restaurants win accolades in local food communities (some have even been featured on food travel shows or earned top ratings on review sites), more people are encouraged to give the cuisine a try. Word-of-mouth and cultural festivals have also introduced Ethiopian food to new audiences. Many first-timers quickly become fans after experiencing the coffee ceremonies, the unique spices, and the warm hospitality often found in Ethiopian establishments. Challenges and Future Outlook Even with the growing popularity, Ethiopian restaurants in the U.S. face certain challenges as they continue to flourish: Cultural barriers and awareness: For many Americans unfamiliar with Ethiopian cuisine, the idea of eating stew with one’s hands using injera can be outside their comfort zone. The unique sour taste of injera and the aromatic berbere spices are acquired tastes for some. This unfamiliarity can be polarizing30, meaning Ethiopian restaurants often have to educate new customers and ease them into the dining style (for example, by providing utensils on request). Niche presence: While major cities have embraced Ethiopian food, it remains less widespread in smaller towns and certain regions. Compared to cuisines like Chinese, Italian, or Mexican, Ethiopian cuisine is still a niche in America. In fact, not long ago, all the Ethiopian/Eritrean restaurants in the country combined were fewer than the number of Chinese restaurants in New York City alone 31. This means there’s room to grow, but also that Ethiopian restaurants may struggle with limited mainstream familiarity outside urban centers. Business challenges: Running any restaurant is tough. Around 25% of new restaurants fail within their first year, and about 60% close by their third year 32. Ethiopian restaurants are no exception to these industry pressures. They face rising rents, competition (not only from other Ethiopian places but all dining options), and the challenge of sourcing specialty ingredients like teff and spices (though domestic suppliers have improved in recent years). Ensuring consistent quality and attracting repeat customers in a competitive food market requires significant effort. Looking ahead, the outlook for Ethiopian cuisine in the U.S. is optimistic. The steady growth in the number of restaurants indicates a widening customer base and increasing interest. As noted, more cities each year are getting their first Ethiopian restaurant, filling gaps on the American culinary map 33. This trend suggests that the cuisine is gradually spreading beyond the initial hubs. Additionally, Ethiopian restaurateurs and second-generation Ethiopian Americans are adapting and innovating to broaden the cuisine’s appeal. In Washington D.C., for example, some have launched fast-casual Ethiopian eateries aimed at making the food more accessible to a general audience. These modern approaches retain traditional flavors but offer options like injera rolled up as wraps, or meals served with alternate bases like rice and bread, and provide cutlery for those who prefer it. Such innovations can introduce Ethiopian food to customers who might be hesitant about the traditional style, without losing the essence of the cuisine. Furthermore, the cultural significance of Ethiopian cuisine – from the ritual of the coffee ceremony to the idea of gursha (feeding someone else with your hand as a sign of friendship) – provides rich storytelling opportunities that restaurants can use to engage diners. Many Ethiopian restaurants double as community centers for immigrants and a bridge for cultural exchange with Americans. This dual role helps build a loyal patronage that extends beyond just the food. In terms of future outlook, expect to see Ethiopian cuisine becoming an even more familiar part of the American food landscape. Key metropolitan areas will likely continue to support a high concentration of Ethiopian eateries, and we may see more Ethiopian food trucks, fusion concepts (imagine Ethiopian spices with Western dishes), and inclusion of Ethiopian dishes on mainstream restaurant menus. The seven states that currently lack Ethiopian restaurants are potential frontiers – as interest grows, entrepreneurs may seize those opportunities. With its bold flavors, healthy ingredients, and communal charm, Ethiopian cuisine is well-positioned to captivate more Americans in the years ahead. In short, what started as a niche offering mainly for diaspora communities has blossomed into a cuisine that enriches the diverse tapestry of American dining, with a promising road forward.

National Bank of Ethiopia Announces Exchange Rate of 135 Birr per USD Following Special ForEx Auction

National Bank of Ethiopia Announces Exchange Rate of 135 Birr per USD Following Special ForEx Auction Addis Ababa, Ethiopia – The National Bank of Ethiopia (NBE) has announced that the average exchange rate for the US dollar reached 135.6185 Birr following a special foreign exchange auction. This latest round of bidding saw the participation of 27 commercial banks, reflecting significant market engagement in the central bank’s ongoing efforts to regulate the forex market. High Demand and Market Participation The National Bank emphasized the high level of participation in the auction, noting that this mechanism is part of a broader strategy aimed at enhancing foreign currency availability and ensuring exchange rate stability. By allowing banks to bid competitively for foreign exchange, the auction process is intended to create a more transparent and market-driven forex system. The NBE stated that it will continue to conduct foreign exchange auctions as necessary, adjusting the frequency and volume of transactions based on market conditions and the country’s broader monetary policy objectives. Foreign Exchange Auction as a Stabilization Tool This auction marks the second round of foreign exchange sales under the current system since Ethiopia introduced macroeconomic reforms on July 22, 2016. The reforms were designed to liberalize the forex market, address foreign currency shortages, and curb inflationary pressures. In the first round of forex auctions, which took place earlier, the average exchange rate for the US dollar was 107.9 Birr, with 27 banks participating—the same level of engagement observed in this latest auction. The sharp increase in the exchange rate from the initial auction reflects ongoing adjustments in Ethiopia’s currency valuation, influenced by both domestic economic factors and global market trends. Macroeconomic Implications and Future Outlook The NBE’s auction-based forex allocation system is part of its larger policy framework aimed at balancing the demand and supply of foreign currency. Ethiopia has faced chronic foreign exchange shortages in recent years, driven by trade imbalances, high external debt obligations, and limited foreign direct investment (FDI) inflows. Experts suggest that the rise in exchange rates may indicate a shift towards a more flexible exchange rate policy, possibly inching closer to a market-determined system. However, the central bank remains cautious, aiming to prevent excessive volatility that could fuel inflation and disrupt financial stability. As the National Bank continues to fine-tune its forex policies, businesses and financial institutions will closely monitor upcoming auctions, which could signal further adjustments in exchange rate policies and economic reforms. The bank reiterated its commitment to maintaining price stability and sustainable economic growth through strategic forex management. With global economic conditions and local macroeconomic trends in flux, the Ethiopian economy is at a critical juncture, where exchange rate policies will play a pivotal role in shaping investment, trade, and overall economic performance in the coming months.

Ethiopia Nears Final Negotiations for WTO Membership

Ethiopia Nears Final Negotiations for WTO Membership Addis Ababa, Ethiopia – Ethiopia is set to engage in a critical round of negotiations by the end of February or early March as it moves closer to securing membership in the World Trade Organization (WTO). This marks a significant step in the country’s long-standing aspiration to join the global trade body, a process that has spanned over two decades. Ethiopia first applied for WTO membership in 2003, initiating a process that required extensive economic and trade policy reforms to align with the organization’s stringent accession criteria. Over the years, the country has undertaken substantial legislative changes, including revising investment laws, modernizing customs procedures, and reducing state control over key economic sectors to foster a more competitive market environment. The upcoming round of discussions in Geneva will focus on finalizing key agreements, including Ethiopia’s commitments on market access, regulatory compliance, and domestic policy adjustments. The negotiations will cover critical aspects such as tariff structures, the liberalization of service sectors, agricultural subsidies, intellectual property protections, and adherence to global trade standards. A crucial element of these negotiations is Ethiopia’s commitment to ensuring fair competition while protecting local industries from potential external market shocks. Trade experts and government officials have expressed optimism about the ongoing negotiations. According to Ethiopia’s State Minister for Trade and Regional Integration, Yasmin Wohabrebbi, “WTO membership represents a historic opportunity for Ethiopia’s economic expansion and the attraction of foreign investment. By joining the global trading system, Ethiopia will benefit from greater market access and enhanced trade relations with other member states.” A high-level Ethiopian delegation recently met with WTO officials in Geneva, finalizing the necessary documentation required for the negotiation process. These discussions included extensive consultations with key international trade partners, aiming to secure support for Ethiopia’s accession bid. Although Ethiopia participated in its fourth round of negotiations in 2020, progress was delayed due to the COVID-19 pandemic and political instability in the country. However, the Ethiopian government has since renewed its commitment to the process, implementing various policy measures to align with WTO requirements. The government is aiming to conclude the membership process by 2026, aligning with the WTO Ministerial Conference scheduled to be held in Cameroon. In addition to multilateral negotiations, Ethiopia is actively engaged in bilateral discussions with several WTO member countries, including the United States, the European Union, and China, to resolve outstanding trade concerns and establish mutually beneficial agreements. Ethiopia’s WTO membership is expected to enhance its global trade competitiveness by expanding market access, improving the investment climate, and fostering sustainable economic growth. Additionally, membership will enable Ethiopia to participate in the global rule-making process, ensuring its interests are represented in international trade policies. The move aligns with the nation’s broader strategy to integrate into the global economy, attract foreign direct investment, and drive industrialization through increased trade opportunities. As the negotiations enter their final stage, Ethiopia remains committed to meeting the WTO’s accession requirements, with the expectation that membership will unlock new economic opportunities, strengthen its position in the international trade landscape, and bolster its long-term economic resilience.

National Bank of Ethiopia to Conduct $60 Million Foreign Exchange Auction

National Bank of Ethiopia to Conduct $60 Million Foreign Exchange Auction Addis Ababa, Ethiopia – February 24, 2025 – The National Bank of Ethiopia (NBE) has announced that it will conduct a Special Foreign Exchange Auction on February 25, 2025, with a total offering of $60 million. The auction is open to participation by all banks. According to the NBE, the auction follows the implementation of a macroeconomic reform program launched in July 2024. The central bank stated that Ethiopia’s balance of payments position has shown steady improvement, supported by rising exports, remittances, and capital inflows. The delivery of record-high gold supplies to the NBE, which serves as the country’s sole authorized gold exporter, has also contributed to an increase in foreign exchange reserves. The NBE stated that the foreign exchange auction aims to manage monetary growth and maintain market stability. The central bank noted that the increase in foreign exchange inflows should not interfere with monetary policy targets. The sale of foreign exchange to banks is intended to support market liquidity while maintaining the existing monetary policy stance. The NBE further stated that it will continue monitoring market conditions and may conduct additional foreign exchange sales if necessary to meet its economic policy objectives. Auction Details Date: Tuesday, February 25, 2025 Email Submission: fxauction@nbe.gov.et Bid Submission Period: 10:00 AM – 12:00 NOON Bid Results Announcement: 3:00 PM Settlement: End of day, February 25, 2025 The NBE has invited interested banks to submit their bids within the specified time frame. Further updates will be provided based on market conditions.

ADMAS Chatbot: Ethiopia’s Game-Changer for Startups and SMEs

ADMAS Chatbot: Ethiopia’s Game-Changer for Startups and SMEs NUNA Ethiopia has launched ADMAS Chatbot, an AI-powered business development tool aimed at supporting startups, SMEs, and entrepreneurs in Ethiopia. The chatbot is designed to provide easy access to business resources, industry insights, and mentorship opportunities. The initiative has been developed in collaboration with the Ministry of Innovation and Technology – Ethiopia, the Japan International Cooperation Agency (JICA), and various industry stakeholders. ADMAS aims to enhance access to critical business information and advisory support through AI technology. Key Features of ADMAS Chatbot ADMAS Chatbot seeks to address challenges in the startup ecosystem by offering: Business insights – Providing information on market trends, regulations, and industry best practices. AI-driven support – Offering relevant guidance to help entrepreneurs navigate challenges. Availability – Ensuring 24/7 access to business development support. Industry Engagement and Collaboration The launch event featured contributions from several key figures, including: Selamyhun Adefris Haile, Pazion Cherinet, Bejai Naiker, and Rehab Eldin Abdalla – Panelists who provided insights on business innovation and growth. Beneyam Berehanu Haile – Moderator of the discussion, facilitating conversations on the chatbot’s role in business development. Industry partners – Contributions from ZERGAW CLOUD SERVICE PROVIDER, VP Trading, and Bridge Ethiopia in the development of ADMAS. Potential Impact on Business Development ADMAS Chatbot is designed to improve access to business knowledge and services, potentially benefiting Ethiopia’s growing entrepreneurial community. By utilizing AI technology, the tool aims to provide an efficient and scalable solution for business inquiries and mentorship. NUNA Ethiopia continues to focus on innovation and business support. With ADMAS Chatbot now available, businesses and entrepreneurs can explore its features and determine its effectiveness in their operations.