National Bank of Ethiopia Sells USD at Average Rate of 132 Birr

National Bank of Ethiopia Sells USD at Average Rate of 132 Birr Addis Ababa, May 7, 2025 — The National Bank of Ethiopia (NBE) sold U.S. dollars at an average exchange rate of 132.9643 birr during its most recent foreign currency auction held today, continuing its new auction-based approach to managing the country’s forex supply. According to the central bank, a total of 16 commercial banks participated successfully in the auction, acquiring the full amount of foreign currency they had requested. The auction offered a total of $50 million in foreign exchange to the participating banks. The weighted average rate of 132.9643 birr per dollar represents a modest increase from the previous auction held 15 days ago, where the average rate stood at 131.70 birr per dollar. This steady upward adjustment reflects the central bank’s ongoing efforts to narrow the gap between the official and parallel market exchange rates and move toward a more market-responsive exchange rate regime. This biweekly auction system, introduced as part of the NBE’s broader monetary policy reforms, aims to increase transparency, allocate foreign exchange more efficiently, and gradually transition toward a more flexible exchange rate mechanism. The auctions are open to all licensed banks, which submit bids based on their foreign currency needs and market demand. In its statement, the National Bank reiterated its commitment to conducting these auctions every 15 days, with the next round scheduled in two weeks. Further details regarding participation, bidding procedures, and allocation will be provided in advance of the upcoming auction. Analysts suggest that the auction-based system may help alleviate some of Ethiopia’s chronic foreign currency shortages by encouraging more realistic pricing and reducing speculative pressure on the black market. However, the gradual devaluation trend could also pose inflationary risks if not matched by fiscal discipline and external support. 1 COMMENT Hussen Ali Seid May 8, 2025 At 1:01 pm Tanks my community or Cryptosystem ,Airdrops company Tanks my community or Cryptosystem ,Airdrops company Comments are closed.

Ethiopia’s Hasab AI Launches Groundbreaking Voice Intelligence Platform for African Languages

Ethiopia’s Hasab AI Launches Groundbreaking Voice Intelligence Platform for African Languages Addis Ababa, Ethiopia — May 7, 2025 In a bold step toward tech inclusion and linguistic equity, Hasab AI, an Ethiopian startup co-founded by Kidus Yared, has officially launched a voice intelligence platform built specifically for low-resource and African languages. The announcement was made via LinkedIn, where Yared shared the team’s vision, technical breakthroughs, and the broader mission behind the product. “The future of African language AI starts now,” wrote Yared in a widely celebrated post. “We’re not just transcribing — we’re preserving identity, amplifying culture, and creating infrastructure where none existed.” A Platform That Understands Local Voices At its core, Hasab AI converts spoken audio into usable insight, offering a suite of AI-powered tools for transcription, translation, summarization, and audio tagging. But what sets it apart is its local-first design philosophy, targeting the unique needs of African content creators, call centers, researchers, and developers who have long been underserved by global speech AI systems. According to the company, Hasab AI provides: High-accuracy transcription with speaker separation and time-stamping. Subtitle generation (SRT files) in the original language, with translation options. Call tagging and classification, enabling businesses to track reasons for calls, customer sentiment, and resolution outcomes at scale. Audio summarization tools for organizations managing meetings, interviews, or media content. API access for developers who want to embed Hasab’s features into their own apps or platforms. Whether you’re building a podcast, handling thousands of support calls, or preserving community radio archives — Hasab aims to be the backbone of African audio intelligence. Designed for the Continent — and by It Hasab AI is solving a challenge that Big Tech has largely ignored: the lack of speech AI for Africa’s linguistic diversity. Unlike Western markets that benefit from massive datasets and standard speech patterns, African languages are often fragmented across dialects and underrepresented in global NLP tools. By investing in local language models and training data grounded in regional nuance, Hasab AI is filling a critical infrastructure gap. “This isn’t just about innovation,” said Yared in his post. “It’s about building tools that understand us — our tone, our slang, our silence.” Community Reactions and Momentum The launch has sparked enthusiastic reactions across Ethiopia’s startup ecosystem. Industry leaders, tech professionals, and journalists have praised the product’s impact and ambition. “Real voice intelligence for African languages — this is redrawing the map of inclusion in global AI,” commented Yigermal Meshesha, a fintech executive and early supporter. Others emphasized Hasab’s cultural value, calling it “a bridge between oral tradition and digital technology.” The company also shared that the product is now live and ready for public access via www.hasab.ai. From Research to Real-World Impact Hasab AI’s development journey spanned years of research and months of testing, fine-tuning models to capture the complexity of African speech — from city slang to rural dialects. Co-founded by a team of engineers, linguists, and AI researchers, Hasab AI is part of a growing wave of homegrown African tech solutions aiming to tackle problems at the intersection of language, data, and inclusion. While the team hasn’t yet announced a funding round, insiders suggest investor interest is mounting — especially from those focused on frontier markets and socially impactful AI. What’s Next? With this launch, Hasab AI positions itself as a foundational player in the African language tech ecosystem. The startup is now focused on expanding its language offerings, onboarding enterprise partners, and refining its API to scale adoption across sectors. “We’re just getting started,” said Yared. “If this work helps even a small part of our culture, language, or voice take its rightful place in the global AI ecosystem, then it’s worth every challenge.” Hasab AI is now live. Explore the platform or request a demo at www.hasab.ai.

Ethiopia Ushers in New Era of Banking Reform with Basel-Aligned Capital Directive

Ethiopia Ushers in New Era of Banking Reform with Basel-Aligned Capital Directive Addis Ababa, May 7, 2025 — Ethiopia’s banking landscape is undergoing a major transformation as the National Bank of Ethiopia (NBE) unveils its most comprehensive regulatory reform yet. In a decisive move to modernize and fortify the financial sector, the NBE has issued Directive No. SBB/XX/2025, establishing Risk-Based Capital Adequacy Requirements for all banks operating within the country. This reform marks Ethiopia’s full-scale shift toward Basel II and Basel III international banking standards, putting the nation’s regulatory environment on par with those of global financial centers. It signals the government’s commitment to long-term economic stability, financial inclusion, and responsible credit expansion. 🧱 A Stronger Capital Foundation: What the Directive Requires The directive introduces a three-tier capital framework designed to ensure that banks have sufficient buffers to absorb losses, support ongoing operations, and safeguard depositors: Common Equity Tier 1 (CET1): Minimum of 7.5% of Risk-Weighted Assets (RWAs). This represents the highest quality capital — mainly common shares, retained earnings, and disclosed reserves. Tier 1 Capital: CET1 plus Additional Tier 1 capital must amount to 9.5% of RWAs. AT1 includes instruments that can absorb losses but are not common equity. Total Capital Ratio: When Tier 2 Capital is added (e.g., subordinated debt, general provisions), the total capital must be at least 11.5% of RWAs. This structure ensures that Ethiopian banks maintain loss-absorbing capacity both during normal business operations and in times of distress. Importantly, the directive mandates that these capital levels be upheld at all times, not merely during regulatory reviews. ⚖️ Risk-Based Approach: Credit, Market, and Operational Exposures The directive moves beyond one-size-fits-all capital measures by introducing risk-sensitive calculations. Banks are now required to determine capital needs based on: Credit Risk – The risk that borrowers will default. Market Risk – The risk of losses due to changes in interest rates, exchange rates, and asset prices. Operational Risk – The risk of loss due to failures in internal processes, systems, or external events. For each category, specific methodologies are outlined, using a mix of Basel II’s standardized approaches and localized adjustments to accommodate Ethiopia’s evolving banking environment. By enforcing this tripartite risk classification, the NBE is encouraging banks to adopt more robust internal controls, improve data quality, and develop stronger risk management cultures. 🏦 Governance Reform: Elevating Board-Level Accountability A major highlight of the directive is the clear assignment of responsibility to bank boards of directors. Boards must: Ensure compliance with the new capital ratios, Oversee the development of capital management strategies (spanning 1–3 years), Establish internal systems for continuous risk assessment and capital measurement, Submit capital plans to the National Bank for review. This provision reflects a global trend of holding boards directly accountable for bank safety, and ensures capital decisions are tied to long-term strategy, not just short-term profit. 🧮 Regulatory Adjustments: Transparency in Capital Quality In line with best international practices, the directive mandates the deduction of certain items from regulatory capital, particularly from CET1. These include: Goodwill and other intangible assets, Deferred tax assets reliant on future profitability, Unrealized gains from own credit risk, Investments in own shares (treasury stock), Reciprocal holdings designed to artificially inflate capital levels. By excluding these from capital base calculations, the directive enhances transparency and prevents capital manipulation, ensuring the capital banks report is genuinely available for absorbing losses. 🌍 Global Integration: Ethiopia Aligns with Basel III The directive’s alignment with Basel III is not incidental. Ethiopia’s financial sector has been undergoing a gradual liberalization, with efforts to open up to foreign investment, encourage fintech innovation, and promote diaspora participation in banking. With this directive: Ethiopia signals that it is “open for responsible financial business.” Domestic banks will be better prepared to compete and collaborate with regional and international financial institutions. Risk-based capital adequacy will help prevent future financial crises, as seen globally during 2008, where undercapitalization played a major role. 🏁 Implementation & Challenges Ahead Though the directive becomes effective upon publication, the National Bank has signaled a phased implementation approach, including a Quantitative Impact Survey (QIS) that will assess the readiness of banks and inform adjustments to the minimum capital thresholds if needed. However, challenges remain: Smaller banks may struggle with data management and risk modeling, Talent gaps in risk management could slow execution, Digital infrastructure gaps may limit real-time capital monitoring. To mitigate this, NBE is expected to offer capacity-building support, including technical workshops and supervisory guidance. 📈 Why This Matters for Ethiopia’s Economy This regulatory leap could redefine Ethiopia’s financial future. It enhances: Public confidence in banks, reducing the risk of panic or run-offs, Investor interest, especially from development finance institutions and diaspora, Macro-financial resilience, buffering the economy against domestic and global shocks. The directive lays a solid foundation for the National Bank’s vision of building a “modern, stable, and inclusive financial system.”

Ethiopia to Launch Unified Vehicle License Plates Featuring National Branding

Ethiopia to Launch Unified Vehicle License Plates Featuring National Branding Addis Ababa, Ethiopia – The Ministry of Transport and Logistics has issued a new directive mandating a nationwide overhaul of vehicle license plates, introducing a standardized design aimed at strengthening national identity and improving administrative efficiency. Under the new system, all vehicles registered in Ethiopia will adopt a uniform plate design featuring the letters “ET” or “ETH,” a map of the country, and inscriptions in both Latin and Ge’ez scripts. The directive eliminates the current regional and city-specific labels that have historically differentiated license plates by administrative zones. Instead, all vehicles will now display a uniform national identifier, with the three-letter international code “ETH” and a visual map of Ethiopia symbolizing the country’s sovereignty and unity. License plates will follow a new alphanumeric format comprising three Latin letters and four numerals to create a broad serial base. Each plate will include embedded codes for registration and law enforcement use, along with color schemes and markings that denote the type of service the vehicle provides, the nature of its ownership, and the type of energy it consumes. In a push for environmental awareness, electric and renewable energy-powered vehicles will carry special plates marked “Green Transport.” Furthermore, vehicle owners seeking customized identifiers will have the option to request special license plates under this new system. The changes apply retroactively to all vehicles already registered in the country. Vehicle owners will be required to surrender their current plates and obtain the new standardized ones according to a rollout schedule set by the Ministry. This marks the fourth major revision to Ethiopia’s vehicle registration system since the introduction of license plates during Emperor Menelik’s reign. Each political transition—from Emperor Haile Selassie to the Derg regime, and later to the Ethiopian People’s Revolutionary Democratic Front (EPRDF)—has seen an overhaul in vehicle plate design. The current plates, many of which include two-letter region or city codes, will be fully replaced under the new national framework. The initiative is part of Ethiopia’s broader efforts to modernize transport infrastructure, align with international standards, and streamline vehicle administration nationwide.

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.