Bank Abyssinia Inaugurates Modern Banking Service Center in Collaboration with Chaka Buna

Bank Abyssinia Inaugurates Modern Banking Service Center in Collaboration with Chaka Buna Bank Abyssinia inaugurated its state-of-the-art banking service center at its headquarters yesterday, January 22, 2017, in collaboration with Chaka Buna. The event was celebrated with great enthusiasm in the presence of the bank’s CEO, Ato Bekalu Zeleke, Chaka Buna owner, Ato Bisrat Belay, and other invited guests. Bank Abyssinia has always been at the forefront of modern banking services, recognized as a preferred choice for customers. With over 930 branches, more than 1,600 ATMs, and 3,000 POS machines, the bank also offers cutting-edge mobile and internet banking services. Additionally, the bank has introduced Virtual Banking Centers, e-commerce services, contactless cards, and various digital payment solutions to enhance user experience. Taking inspiration from global trends, the bank is now integrating additional value-added services at its branches, transforming them into multi-functional service centers in collaboration with strategic partners. As part of this initiative, the newly launched modern banking service in partnership with Chaka Buna enables customers to access banking services through Interactive Teller Machines (ITMs) and self-service tablets located inside the café. Moreover, the café and restaurant services at the center will be completely cashless and paperless, offering a seamless experience through various digital payment options. This innovative approach is expected to enhance convenience and efficiency for customers, setting a new standard in banking services. At the inauguration ceremony, it was announced that similar centers will be established in selected locations in the future. Finally, Chaka Buna expressed its sincere appreciation to Bank Abyssinia for embracing the vision and demonstrating a strong commitment to collaboration.

Mastercard Foundation and Reach for Change Select 13 Game-Changing EdTech Startups to Transform Learning in Ethiopia

Mastercard Foundation and Reach for Change Select 13 Game-Changing EdTech Startups to Transform Learning in Ethiopia In a bold move to reshape education for underserved communities in Ethiopia, the Mastercard Foundation, in collaboration with Reach for Change, has announced the selection of 13 groundbreaking EdTech enterprises for its prestigious EdTech Fellowship. These startups have been chosen for their innovative approaches to addressing some of the country’s most pressing educational challenges, including access for girls, out-of-school learners, young people with disabilities, and internally displaced populations. The Mastercard Foundation EdTech Fellowship aims to catalyze solutions that leverage technology to bridge educational gaps and provide high-quality, scalable learning opportunities. The selected startups represent the cutting edge of Ethiopia’s rapidly growing EdTech ecosystem, each offering unique solutions tailored to local needs. The 13 EdTech Trailblazers Leading the Charge These forward-thinking enterprises are set to transform education through cutting-edge technology, data-driven insights, and localized content: Kelem Tutors – Empowering students with personalized, on-demand tutoring to improve academic outcomes. Liq Tutors – Providing AI-driven educational support to enhance learning experiences for students across Ethiopia. A+ Online Tutors – Bridging the digital divide by making quality online education accessible to all learners. Ethiopian College Prep (ECP) – Offering targeted college entrance exam preparation to boost student success rates. Ethio IQ – A next-gen learning platform using adaptive learning techniques for personalized education. AIT (Advanced Innovative Technologies) – Revolutionizing STEM education through interactive, tech-driven solutions. Yimaru Academy – Developing curriculum-aligned e-learning content to support students and educators. EdTech Hub ET – A centralized resource for educators and students seeking innovative digital learning tools. Askuala Link – Creating a seamless link between teachers and students for real-time interactive learning. Think Hub Innovations – Harnessing AI and gamification to make learning more engaging and effective. EduTech ICT Solutions PLC – Digitizing traditional learning models with cutting-edge educational technology. Geez Education & Training (GET) – Promoting indigenous language learning through digital platforms. BeBlocky – Encouraging young learners to explore coding and STEM through an immersive, gamified experience. A Step Toward a Digital Education Revolution The Mastercard Foundation EdTech Fellowship is more than just an investment in startups—it’s an investment in the future of Ethiopia’s education system. By equipping these enterprises with funding, mentorship, and networking opportunities, the initiative seeks to drive systemic change in how education is delivered and accessed across the country. With Ethiopia’s internet penetration and digital adoption on the rise, the selected EdTech enterprises are well-positioned to scale their impact, ensuring that more students—regardless of their location or circumstances—gain access to quality education. As these 13 startups embark on this transformative journey, they stand as beacons of hope for millions of Ethiopian learners eager to unlock their full potential through technology-driven education. Stay tuned as they redefine the future of learning in Ethiopia!

Ethiopian Electricity Service Introduces Mobile Recharge System for Prepaid Users

Ethiopian Electricity Service Introduces Mobile Recharge System for Prepaid Users The Ethiopian Electricity Service (EES) has announced the implementation of STS smart single-phase meters under the Unified Prepayment Project, aimed at simplifying electricity payments and energy sales for prepaid meter users. According to EES, this project will address common complaints related to utility payments and enhance customer convenience by enabling users to purchase electricity anytime, anywhere using their mobile phones. As part of the initiative, the EES plans to replace 500,000 prepaid meters with modern smart meters, allowing customers to recharge their electricity via token numbers, Tele Birr, and other digital payment options. Currently, preparations are underway to replace 125,000 three-phase meters nationwide. In Addis Ababa, the replacement of 25,000 single-phase smart meters is already in progress.

Ethiopian Banks Charge Hidden Fees, Driving Dollar Rate Up to 160 Birr

Ethiopian Banks Charge Hidden Fees, Driving Dollar Rate Up to 160 Birr According to Wazema Radio, certain commercial banks in Ethiopia are charging additional fees beyond the legally mandated costs for foreign currency sales. Several import traders reported to Wazema Radio that when they request foreign currency from commercial banks, they are often told, “We don’t have it.” Instead, banks direct them to customers who already have foreign currency in their accounts, facilitating private exchanges at an added cost. Wazema Radio has verified that at least two banks have engaged in this practice, as evidenced by payment transactions provided by traders. One trader highlighted that these extra charges have driven up the exchange rate of the U.S. dollar from 155 to 160 birr. According to him, he had to pay 780,000 birr—equivalent to 156 birr per dollar—to obtain 5,000 U.S. dollars. Under the current system, when banks sell foreign currency, they apply a 12 percent service fee, followed by a 15 percent value-added tax (VAT) on the service charge. In addition to the officially posted exchange rate—advertised on their social media pages or displayed in their offices—banks also impose an extra 6 to 10 birr per dollar. This fee is justified by claims that “we do not have foreign currency, so we connect you with bank customers who do.” Another trader involved in product imports, who requested anonymity, stated, “We have no alternative. The government has banned franco-valuta, which means we cannot source foreign currency through other means. The justification for the ban was that banks would provide sufficient foreign exchange, but in practice, the banks refuse to do so.” He further argued that the contradiction in the banks’ responses suggests either a genuine shortage of foreign currency or an artificially induced scarcity designed to extract higher payments from traders. Meanwhile, in a recent interview with state media, National Bank of Ethiopia (NBE) Governor Mamo Mehrut claimed that the country’s foreign exchange reserves have more than doubled as a result of the government’s “comprehensive macroeconomic reform.” He also noted that commercial banks’ reserves had increased significantly. Following the transition to a market-determined exchange rate, Ethiopia reportedly generated an unprecedented $1 billion in foreign exchange from gold and coffee exports within a few months. Additionally, since July 22, 2023, the country has secured $1.6 billion in loans from institutions such as the International Monetary Fund (IMF) and the World Bank. Despite these developments, however, foreign exchange shortages remain widespread, raising concerns about the effectiveness of the government’s reforms and the practices of commercial banks in the country. (Source: Wazema Radio)

IMF Managing Director Kristalina Georgieva to Visit Ethiopia for High-Level Engagements

IMF Managing Director Kristalina Georgieva to Visit Ethiopia for High-Level Engagements The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, will undertake a two-day official visit to Ethiopia on February 8 and 9, 2025. This visit marks her first trip to the country since assuming the role of Managing Director in 2019 and highlights the IMF’s ongoing commitment to supporting Ethiopia’s economic development and reform agenda. During her visit, Georgieva is scheduled to hold high-level discussions with Prime Minister Abiy Ahmed and other senior government officials. The talks will focus on Ethiopia’s economic outlook, including growth prospects, fiscal and monetary policies, and the implementation of structural reforms aimed at addressing macroeconomic challenges. The discussions are expected to cover the country’s efforts to stabilize its economy, manage debt, and attract foreign investment amid a complex global economic environment. In addition to meetings with government leaders, the Managing Director will engage with representatives from Ethiopia’s private sector. These interactions aim to provide insights into the business environment, identify barriers to growth, and explore opportunities for private sector-led development. The dialogue will also emphasize the importance of fostering a conducive environment for entrepreneurship, innovation, and job creation, which are critical for Ethiopia’s long-term economic resilience. As part of her itinerary, Georgieva will visit social and development projects to assess the impact of ongoing initiatives and understand the challenges faced by local communities. These site visits will offer her a firsthand perspective on Ethiopia’s progress in areas such as poverty reduction, infrastructure development, and human capital investment. The IMF has been a key partner in supporting Ethiopia’s development goals, and the visit will provide an opportunity to evaluate the effectiveness of current programs and identify areas for further collaboration. The visit comes at a pivotal time for Ethiopia, as the country continues to navigate economic challenges, including inflationary pressures, foreign exchange shortages, and the aftermath of regional conflicts. The IMF has been actively involved in providing policy advice and financial assistance to Ethiopia, including through the Extended Credit Facility (ECF) and Extended Fund Facility (EFF) arrangements. Georgieva’s visit is expected to reinforce the IMF’s support for Ethiopia’s reform efforts and its commitment to fostering inclusive and sustainable growth. In a statement, the IMF emphasized that the visit underscores its dedication to strengthening partnerships with member countries and promoting policies that ensure economic stability, resilience, and shared prosperity. The discussions during the visit are expected to contribute to a deeper understanding of Ethiopia’s economic priorities and the challenges it faces, while also exploring avenues for enhanced cooperation between the IMF and the Ethiopian government. Georgieva’s trip to Ethiopia is part of a broader effort by the IMF to engage with member countries and address global economic challenges, including rising debt levels, climate change, and geopolitical uncertainties. By fostering dialogue and collaboration, the IMF aims to support countries in building robust economies that can withstand external shocks and deliver long-term benefits for their populations.

Commercial Bank of Ethiopia to Launch Salary-Based Loans via CBE Birr Plus App

Commercial Bank of Ethiopia to Launch Salary-Based Loans via CBE Birr Plus App The Commercial Bank of Ethiopia (CBE) has announced that it will soon begin offering salary-based loans to employees of government-owned development institutions through the CBE Birr Plus app. As part of Customer Service Month, CBE held a discussion with executives from various government-owned development institutions at its headquarters on January 28, 2025, in the afternoon. During the session, bank officials addressed questions raised by participants regarding CBE’s loan disbursement process. In his closing remarks, Abe Sano, President of the Commercial Bank of Ethiopia, emphasized the bank’s commitment to responsibly investing public savings in national development. He also highlighted that CBE is actively preparing a range of loan options to improve public access to credit. Abe further noted that CBE has finalized preparations to roll out the CBE Birr Plus application, which will enable employees of government development institutions to access small, salary-based loans directly via their mobile phones. These loans will require no additional collateral beyond the borrower’s salary. Additionally, CBE is working to expand its loan accessibility beyond government development institutions, aiming to serve a broader segment of society in the near future.

Ethiopian Investment Holdings Plans Global Stock Market Return, Eyes Multinational Investments

Ethiopian Investment Holdings Plans Global Stock Market Return, Eyes Multinational Investments Ethiopian Investment Holdings (EIH), the East African nation’s sovereign wealth fund, is poised to make a historic return to the global stock market with plans to invest in multinational corporations. This move marks Ethiopia’s reentry into international equity markets after more than a century, following Emperor Menelik II’s pioneering investments in New York stocks in the late 19th century. The announcement underscores Ethiopia’s ambition to diversify its investment portfolio and strengthen its foothold in the global financial system. According to Brook Taye, CEO of EIH, the fund is in the final stages of acquiring stakes in foreign companies through Euronext Paris, the Paris-based stock exchange. While specific details of the targeted companies and the size of the investments remain undisclosed, the move signals a strategic shift for Ethiopia as it seeks to leverage its growing economic influence on the global stage. A Historic Return to Global Markets Ethiopia’s last foray into international equity markets dates back to the late 19th century when Emperor Menelik II invested in New York stocks, a bold move that was unprecedented for an African nation at the time. Over a century later, EIH’s planned investments represent a renewed effort to integrate Ethiopia into the global economy and capitalize on international market opportunities. The decision to reenter global markets comes as Ethiopia continues to implement sweeping economic reforms aimed at liberalizing its economy and attracting foreign investment. The country, which has one of the fastest-growing economies in Africa, has been working to open key sectors such as telecommunications, banking, and logistics to private and foreign investors. Strategic Investments and Economic Backbone EIH, established in 2021, serves as the investment arm of the Ethiopian government and oversees 34 state-owned enterprises (SOEs), including some of the country’s largest and most strategic assets. Among these are Ethiopian Airlines Group, Africa’s most profitable airline; Commercial Bank of Ethiopia, the largest financial institution in the country; Ethio Telecom, the state-owned telecommunications giant; and Ethiopian Shipping and Logistics, a key player in the region’s trade and logistics sector. These enterprises form the backbone of Ethiopia’s economy and provide EIH with the financial foundation to pursue international investment opportunities. By leveraging the revenue and expertise of these SOEs, EIH aims to build a diversified portfolio that includes both domestic and international assets. Diversification and Global Ambitions The move to invest in multinational corporations aligns with EIH’s broader strategy to diversify its holdings and reduce reliance on domestic markets. By acquiring stakes in foreign companies, EIH aims to generate higher returns, mitigate risks, and gain exposure to global best practices and technologies. Euronext Paris, one of Europe’s leading stock exchanges, has been selected as the platform for these investments. The choice of Euronext reflects Ethiopia’s interest in tapping into European markets, which are known for their stability and robust regulatory frameworks. Analysts suggest that EIH’s investments could focus on sectors such as technology, energy, and infrastructure, which align with Ethiopia’s long-term development goals. The fund’s entry into global markets is also expected to enhance Ethiopia’s credibility among international investors and pave the way for future collaborations. Challenges and Opportunities While EIH’s global ambitions are ambitious, they are not without challenges. The fund will need to navigate complex regulatory environments, currency risks, and geopolitical uncertainties as it expands its international footprint. Additionally, Ethiopia’s domestic economic challenges, including high inflation and foreign exchange shortages, could pose hurdles to its global investment strategy. However, Taye remains optimistic. “We are committed to building a resilient and diversified portfolio that delivers value for Ethiopia and its people,” he said. “This is just the beginning of our journey to becoming a significant player in the global investment landscape.”

Ahaz Platforms: Bridging the Digital Divide in Ethiopia

Ahaz Platforms: Bridging the Digital Divide in Ethiopia Founded in September 2021, Ahaz Platforms PLC is a mission-driven company determined to close the digital literacy gap in Ethiopia. With a focus on making education accessible, consistent, and transformative, Ahaz has become a beacon of innovation through its flagship project, Ahazawi—a digital learning platform designed to revolutionize how education is delivered and experienced. Tackling Educational Challenges Ahaz is addressing critical challenges in traditional education, such as limited physical reach, inconsistent teaching quality, and lack of accessibility for diverse learners. These obstacles disproportionately affect underserved communities, particularly in regions like Tigrai. Ahazawi offers a solution by providing self-paced, recorded course content, flexible learning options (online, in-person, and blended), and standardized exams with certifications to ensure learning consistency and quality. Empowering Learners and Communities Since its inception, Ahaz has made significant strides in creating social impact. Over 3,000 learners have received digital literacy training through the Digital Skills for Development Initiative (DSDI). The launch of the Ahazawi platform in July 2023 expanded this reach, empowering individuals of all ages with digital skills essential for career development and job creation. Notably, Ahaz has also contributed to the reintegration of Tigrai Defense Forces (TDF) members, showcasing its commitment to supporting vulnerable communities. Innovation in Business and Learning Models Ahazawi operates on a freemium model, offering free self-learning options alongside paid teacher-led courses, standardized exams, and certifications. This model not only democratizes access to education but also creates earning opportunities for teachers and course creators. The platform’s features—such as LMS, certification management, and local-language support—make it a game-changer for learners, educators, and institutions alike. Scaling for Greater Impact With an ambitious target of reaching 8,000+ learners in the next 12 months, Ahaz plans to leverage self-learning tools, agency partnerships, teacher recruitment, and recorded courses. The relaunch of DSDI with a career-focused approach and the potential introduction of courses for children under 13 are also in the pipeline. Joining the Mastercard Foundation EdTech Fellowship in partnership with Reach for Change In recognition of its innovative approach and proven impact, Ahaz Platforms was selected as one of the 12 Mastercard Foundation EdTech Fellows for Cohort I in June 10, 2024. This fellowship offered Ahaz the opportunity to refine its solutions, collaborate with like-minded innovators, and scale its mission to transform education in Ethiopia. By bridging the digital divide, Ahaz Platforms is not only empowering learners but also contributing to Ethiopia’s digital transformation and economic growth. With its dedication to accessible, high-quality education, Ahaz is poised to lead the way in shaping a brighter, more inclusive future. Learn more about the Reach for Change Mastercard Foundation EdTech Fellowship here. Contact Information Websites: Company Website Ahazawi EdTech Platform Company Website Ahazawi EdTech Platform Emails: info@ahazplatforms.com | ahazplatforms@gmail.com Phone: +251 978680000 Address: Kahsa Building, Castle, Mekelle, Ethiopia Slogan: Your Gateway to Go Digital.

Why Ethiopia’s Forex Bureaus Are Offering Rates Banks Can’t Match

Why Ethiopia’s Forex Bureaus Are Offering Rates Banks Can’t Match Since the launch of Ethiopia’s foreign exchange bureaus in October 2024, the country has seen a transformative shift in its currency exchange landscape. The shift to a market-based foreign exchange system, coupled with opening of new forex bureaus, is significantly improving access to foreign currency. This transition is helping streamline transactions, reduce reliance on the black market, and foster a more transparent financial environment. As competition among bureaus increases, customers benefit from better rates and more options. Ultimately, this shift is positioning Ethiopia’s financial sector for greater stability and growth. “Forex bureaus play a vital role as intermediaries in Ethiopia’s floating exchange rate system, offering accessible currency exchange points and formalizing previously informal transactions,” said Mustofa Abdella, Business Consultant. He added that these institutions enhance market efficiency by providing competitive rates and convenient services for both individuals and small businesses. With their presence in urban centers, they contribute to building a more robust and transparent forex market infrastructure, which is crucial for the smooth operation of a floating rate system. Furthermore, forex bureaus help direct foreign currency through official channels, potentially reducing reliance on the informal market. “Although awareness remains limited within society, forex bureaus are making the forex market more accessible and improving access to foreign currencies,” said Gemechu Birehanu, Seasoned Banker and Capital Market Advisor. He added that banks often view foreign currency transactions as an opportunity to introduce clients to their other services, which can make the process unnecessarily lengthy. These newly licensed bureaus, operating in the wake of the recent move to a floating exchange rate, have quickly emerged as vital players in the market, offering competitive rates that appeal to both businesses and individuals. For instance, the exchange rate at Rooha Forex Bureau is currently 140.76 ETB per USD, while Ethio Forex Trading S.C. offers 141.78 ETB per USD. In comparison, traditional banks like the Commercial Bank of Ethiopia (CBE) offer rates as low as 126.48 ETB per USD, with Bank of Abyssinia at 127.1986 ETB per USD, and Gadda Bank offering the highest rate among them at 128.45 ETB per USD. “We are seeing positive feedback as we offer more competitive rates,” said Moges Eshetu, CEO of Rooha Forex Bureau. Efrem Tesfaye, CEO of Ethio Forex Trading S.C., acknowledged that client numbers have not met expectations, attributing the shortfall to aggressive marketing by banks and the improved availability of foreign currency through official channels. “As a citizen, I’m thrilled to see businesses accessing more foreign currency through formal routes,” he said. “However, as a business, we’re not seeing the customer demand we anticipated.” “I typically reference the National Bank of Ethiopia’s indicative rate, the average bank rate, and the parallel market rate as benchmarks. From there, I set our rate, aiming to keep it reasonable without overinflating it,” he told Addis Insight. Efrem highlighted a significant discrepancy between the rates banks advertise on their social media and the actual rates they offer. He pointed out that banks have more flexibility in adjusting their rates, whereas forex bureaus maintain a consistent posted rate. As a result, he believes the gap between the two is minimal. Mustofa said that forex bureaus often offer more competitive rates than banks due to their lower operational overheads and greater flexibility in adjusting to market conditions. “While banks are required to maintain significant infrastructure and comply with strict regulatory requirements, forex bureaus operate with leaner structures, allowing them to respond more quickly to market changes,” he added. “Their specialized focus on currency exchange enables them to optimize their operations for this service, potentially offering better rates to customers. Additionally, the competition among forex bureaus tends to be fiercer, driving them to offer more attractive rates in order to maintain market share.” Gemechu believes that forex bureaus are the preferred option for currency exchange than banks. “Their ability to attract a steady flow of customers buying and selling foreign currency is what allows them to maintain these rates,” he explained. This significant difference in rates has led to a surge in customer traffic, with many flocking to these bureaus for more favorable deals. However, the influx of buyers has resulted in an interesting paradox: while the bureaus are holding an excess of foreign currencies, they are facing a shortage of local currency, as an increasing number of sellers visit to exchange their foreign earnings. Moges voiced that most foreign visitors prefer physical cash; however, liquidity challenges among commercial banks often pose difficulties. Even with the competitive rates at forex bureaus, the parallel market still holds the upper hand. Many turn to it for its higher returns, while its quick and hassle-free transactions keep drawing customers. Despite efforts by forex bureaus and the NBE, the appeal of the parallel market remains strong. Mustofa explained that ongoing foreign currency shortages through official channels create opportunities for informal trading, while the bureaucratic processes in formal institutions may push some participants to seek faster alternatives. He added that the higher rates in parallel markets often reflect the true scarcity of foreign currency and the risk premium tied to informal transactions. Moreover, some businesses turn to parallel markets when they need quick access to foreign currency that formal channels cannot provide fast enough. The difference between official and parallel market rates serves as an indicator of the gap between foreign currency supply and demand in the economy.