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

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

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

AfDB to Lead $7.8 Billion Funding Drive for Africa’s Largest Airport in Bishoftu, Ethiopia The African Development Bank Group (AfDB) has been officially tasked with mobilizing the $7.8 billion in financing needed for the construction of the Bishoftu International Airport—a transformative infrastructure project set to redefine Africa’s aviation landscape. Prime Minister Abiy Ahmed is scheduled to formalize the partnership on Monday in Addis Ababa, signing alongside Akinwumi Adesina, President of the AfDB. The agreement marks one of Ethiopia’s most ambitious transport investments to date, signaling a major push to position the country as a global aviation hub. Located 40 kilometers south of Addis Ababa in the rapidly developing town of Bishoftu, the new facility will surpass all existing African airports in scale. Upon completion of its first phase, Bishoftu International Airport will handle 60 million passengers annually—more than double the traffic of Africa’s current busiest airports, such as O. R. Tambo International in Johannesburg and Cairo International Airport, which process between 18 million and 29 million passengers a year. At full build-out, the airport’s capacity will reach a staggering 110 million passengers, placing it on par with some of the world’s largest aviation hubs in Asia and the Middle East. Construction Timeline and ScopeThe first phase of construction is expected to break ground in late 2025, incorporating multiple runways, advanced passenger terminals, a state-of-the-art cargo handling center, and integrated rail and expressway links to the capital. The existing Bole International Airport—already stretched near its design limits—will be reconfigured primarily for domestic flights, allowing Bishoftu to absorb the bulk of international and regional operations. Ethiopian Airlines at the CoreEthiopian Airlines Group, Africa’s largest and most profitable carrier, views the project as the keystone of its Vision 2035 strategy, which focuses on network expansion, infrastructure modernization, and workforce development. The carrier expects the new hub to enhance its global competitiveness, enabling faster connections between Africa, Asia, Europe, and the Americas while expanding its already dominant cargo operations. Continental and Global SignificanceThe Bishoftu project aligns with broader African Union goals, particularly Agenda 2063 and the African Single Air Transport Market (SAATM), both of which seek to boost intra-African connectivity, reduce travel times, and promote economic integration. Industry analysts note that the airport’s scale and location could make it a primary transfer point for Africa-bound intercontinental flights, challenging established hubs in the Gulf states and Europe. Beyond aviation, the mega-project is expected to generate tens of thousands of jobs during construction and spur economic growth in the Bishoftu area, which is poised to become a major logistics, hospitality, and services hub. With AfDB spearheading resource mobilization, Ethiopia is signaling that it intends to move swiftly on a project that could redefine not only its own transportation network but also the future map of global air travel. LEAVE A REPLY Cancel reply Save my name, email, and website in this browser for the next time I comment. Δdocument.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() );

Ethiopian Electric Power Reports Record 75.4 Billion Birr Revenue as GERD Powers Energy Boom

Ethiopian Electric Power Reports Record 75.4 Billion Birr Revenue as GERD Powers Energy Boom Addis Ababa, August 1, 2025 (FMC) — The Ethiopian Electric Power (EEP) has reported a historic 75.4 billion birr (~$1.3 billion USD) in revenue for the 2017 Ethiopian fiscal year, driven by strong domestic consumption, increasing energy exports, and the accelerating output of the Grand Ethiopian Renaissance Dam (GERD). In a press briefing held today at Skylight Hotel in Addis Ababa, CEO Engineer Ashebir Balcha (E/R) said the GERD has emerged as the largest single source of electricity and revenue for the company, generating 3,400 megawatts, which accounts for 33.2% of the national supply. The dam’s rising contribution marks a turning point in Ethiopia’s ambition to become a regional energy superpower—despite mounting diplomatic pressure. “Following the announcement that the Grand Ethiopian Renaissance Dam will be inaugurated soon, Egypt is trying to create obstacles,” said Ashebir. “But nothing will change; it should be considered a dead end. Ethiopians are desperate to see the project, which is the second Adwa, come to fruition.” ⚡ Record Generation Surpasses Targets EEP generated a total of 29,480 GWh of electricity in 2017, surpassing its target of 25,423 GWh. Of the electricity generated: 93% was consumed domestically 7% was exported—primarily to Kenya (5%) and Djibouti (2%) In total, the utility sold 25.18 TWh, capitalizing on the country’s growing energy demand and infrastructure improvements. 💸 Revenue Breakdown and Outlook The 75.4 billion birr in total revenue came from: 74.05 billion birr: Power sales 1.41 billion birr: Related services International power sales brought in $338.7 million, while the domestic market accounted for approximately 28.52 billion birr. EEP also confirmed that it received $330 million in foreign exchange revenue in 2025 and aims to grow this to $427 million in the 2018 fiscal year. 🧠 Where the Power Goes The internal distribution of electricity reveals how Ethiopia’s economic priorities are shifting: The data mining sector, largely driven by Bitcoin operations, has emerged as a significant player in Ethiopia’s power economy. Though EEP did not disclose exact revenues from crypto operations, industry estimates suggest Bitcoin mining generated over $250 million USD last year, much of it in hard currency—a critical source of revenue for a country facing forex shortages. 🌊 GERD: Engine of Power and Sovereignty The Grand Ethiopian Renaissance Dam has transformed from a national infrastructure project into a geopolitical flashpoint. “Trump can say whatever he wants, but the truth is with us,” said Ashebir in response to past comments by former U.S. President Donald Trump opposing the GERD. “This dam is not just concrete and turbines—it is a symbol of sovereignty, resilience, and national unity.” Despite not yet reaching full capacity, GERD currently generates 3,400 MW and is on track to exceed that as additional turbines become operational. 🛑 Challenges: Grid Theft and Security Concerns While EEP’s performance exceeded expectations, the utility faces substantial operational challenges: 43 transmission lines were vandalized or stolen, disrupting service and costing millions Ongoing conflicts in parts of the country have delayed grid expansion and maintenance Aging infrastructure continues to strain service delivery in remote areas “These are not just technical setbacks; they’re national issues,” said Ashebir, calling for stronger coordination between utility services and national security forces. 📈 Summary Table 🛰 Ethiopia’s Energy Diplomacy and the Road Ahead As GERD nears full inauguration, Ethiopia is bracing for renewed external pressure—especially from Egypt, which fears the dam will reduce Nile water flow. However, EEP insists that technical facts and regional cooperation frameworks support Ethiopia’s position. “The inauguration of GERD is not just about energy,” Ashebir emphasized. “It is about national destiny.” Looking ahead, EEP aims to: Expand power exports to Sudan, South Sudan, and East African neighbors Finalize GERD’s construction and increase turbine output Modernize transmission infrastructure and improve energy access Ethiopia’s electricity sector is entering a new era, powered by GERD, bolstered by crypto-related demand, and guided by a clear vision of sovereignty and self-reliance—even as regional and technical headwinds persist.

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

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

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

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

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

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

Ethiopia’s Digital Creators Struggle for Inclusion in the Global Monetization Game

Ethiopia’s Digital Creators Struggle for Inclusion in the Global Monetization Game Ethiopia is witnessing a digital revolution. From TikTok comedians in Gonder to YouTube educators in Hawassa and Instagram stylists in Addis Ababa, a new creative class is shaping the nation’s online landscape. But despite explosive growth in internet and mobile penetration, Ethiopia’s creators remain locked out of the global digital economy. This isn’t a story about lack of talent. It’s about structural exclusion. While neighboring countries like Kenya and Nigeria benefit from monetization programs on YouTube, Meta, and TikTok, Ethiopian creators are systematically denied access. They are visible, celebrated, and influential—but unpaid. A Booming Digital Scene with No Payouts Ethiopia’s online population surged to 28.6 million in early 2025, fueled by mobile-first access and a youth-driven content culture. Over 8.3 million social media accounts are active in the country, many of them tied to creators who build communities and spark trends. Internet penetration has grown from 16.7% in 2023 to 21.3% in 2025, reflecting rapid digital adoption. Table 1: Ethiopia’s Digital Growth Trajectory (2022 – 2025) While internet penetration is still below the global average, the total number of users is substantial—and growing fast. Mobile connectivity drives this expansion, with most users accessing the internet through smartphones. The Platform Exclusion Wall A forensic look across platforms reveals a depressing pattern: Table 2: Platform Monetization Eligibility in Ethiopia (2025) Ethiopian creators help drive platform engagement and advertiser revenue but receive zero compensation. These platforms profit off the attention economy without compensating the creators generating the content. The Payment Infrastructure Void Even if platforms changed policies overnight, a deeper problem remains: no Stripe, limited PayPal functionality, and lack of integration with local fintechs. Stripe’s absence disables monetization for platforms like Patreon, Ko-fi, and Substack. Even creators trying to bypass major platforms hit a dead end. PayPal’s one-way policy—send only—makes it unusable for receiving earnings. A High-Risk Diaspora Workaround To survive, creators turn to relatives abroad. They register their accounts using foreign addresses. But this system is fraught with risk. Stories abound of creators losing hundreds or thousands of dollars when relatives go rogue. With no contracts or legal recourse, creators are left vulnerable. Local Innovation, Global Limitations Startups like JAMI, Gursha Hub, and Beemi are stepping in to fill the gap: JAMI (via Arifpay) allows tipping in foreign currency with local payout in Birr. Gursha Hub (via Chapa & Telebirr) offers subscriptions, tips, and digital product sales. Beemi gamifies livestreaming, increasing engagement and monetization potential. These startups are building a parallel ecosystem, but mass adoption remains slow due to cultural hesitancy around paying for digital content. Sponsorships: A Lifeline, Not a System With direct monetization blocked, many Ethiopian creators turn to brand sponsorships for income. This approach involves promoting local or international products to their followers in exchange for payment. While some creators with large followings succeed in securing deals, the market lacks structure, transparency, and consistency. Brand collaborations are often arranged through informal networks, with limited data on pricing benchmarks or return on investment. This lack of standardization places smaller or niche creators at a disadvantage, as they often lack access to brand contacts or negotiating leverage. Without clear guidelines or industry norms, many talented creators are either undervalued or excluded entirely. Moreover, without stable revenue streams, creators struggle to invest in production quality, hire teams, or scale their platforms. Sponsorships provide a critical lifeline—but not a reliable system to support Ethiopia’s full spectrum of digital creatives. The Way Forward: A Regional Playbook Kenya and Nigeria have paved the path. Following targeted advocacy, Meta enabled monetization tools in both countries. Kenya’s integration of M-Pesa with Meta set a precedent Ethiopia can replicate. Strategic Recommendations: Government: Launch a “Creator Economy Task Force” to negotiate with platforms. Fintechs: Build platform-ready APIs and unify lobbying efforts. Platforms: Enable monetization and integrate local payment gateways. Creators: Form unions, support local platforms, and standardize sponsorship deals. From Seen to Paid Ethiopia’s creator economy is full of untapped potential. A nation of over 28 million connected citizens is producing culturally rich, globally relevant content. Yet creators are paid in attention, not income. This is not a tech problem—it’s a policy problem. With collective action and bold reform, Ethiopia can become a digital leader. It’s time to close the monetization gap and ensure creators are no longer just seen—but finally paid. LEAVE A REPLY Cancel reply Save my name, email, and website in this browser for the next time I comment. Δdocument.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() );

Ethiopia Sells $150M in Foreign Exchange Auction as Birr Weakens to 138.26/USD

Ethiopia Sells $150M in Foreign Exchange Auction as Birr Weakens to 138.26/USD Addis Ababa, August 5, 2025 — The National Bank of Ethiopia (NBE) has executed its largest foreign exchange auction to date, selling $150 million to 28 commercial banks at a weighted average rate of 138.2555 Birr per US dollar. The move marks another step in Ethiopia’s cautious shift toward a more market-reflective exchange regime. This ninth FX auction, held under the central bank’s managed float system, reflects ongoing depreciation of the Birr amid high forex demand, inflationary pressure, and IMF-backed reforms. 🔍 Details of Auction No. 9 – August 5, 2025 Amount Offered: $150 million Number of Participating Banks: 28 Weighted Average Rate: 138.2555 ETB/USD Auction Type: Regular Auction Number: 9 Compared to the previous auction on June 19, 2025, which closed at 136.6286 Birr/USD, today’s result shows a 1.19% devaluation in just over six weeks. 📊 Chronological FX Auction Data (2024–2025) 📈 Exchange Rate Trend: Gradual Devaluation Since the first regular auction in April 2025, the Birr has depreciated by nearly 5%, moving from 131.7 to 138.26 against the dollar. This is part of the NBE’s deliberate strategy to: Narrow the official and parallel market rate gap Boost formal remittance and investment inflows Address FX backlogs and import demands Meet structural benchmarks under IMF oversight 📌 What’s Next? The NBE has said the timing of future FX auctions will be based on market developments and announced in advance. Analysts expect the bank to continue expanding both the frequency and size of auctions as part of Ethiopia’s broader forex liberalization plan. For more, visit nbe.gov.et or follow @NBEthiopia on X (formerly Twitter). LEAVE A REPLY Cancel reply Save my name, email, and website in this browser for the next time I comment. Δdocument.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() );

Ethiopian Airlines Reports $28 Million Loss from Domestic Flights, Confirms Ongoing Fund Freeze in Eritrea

Ethiopian Airlines Reports $28 Million Loss from Domestic Flights, Confirms Ongoing Fund Freeze in Eritrea Addis Ababa, August 5, 2025 — Ethiopian Airlines Group has reported a $28 million loss from its domestic flight operations over the past fiscal year, according to CEO Mesfin Tasew. The loss, he said, stems from rising costs in foreign currency while domestic ticket prices remained largely unchanged amid macroeconomic reforms. Speaking at a press briefing on the airline’s annual performance, Mesfin addressed key issues raised by stakeholders, including soaring ticket prices and the airline’s frozen funds in Eritrea. Domestic Flights Operated at a Loss Mesfin noted that although international ticket sales are priced in U.S. dollars and automatically converted into local currency at the daily exchange rate, domestic flights are priced in Ethiopian Birr. He stressed that, despite the local currency’s devaluation over the past year, the airline refrained from significantly adjusting domestic fares. “The exchange rate has more than doubled, but we only made minor adjustments to domestic ticket prices,” he said. “As a result, we lost $28 million operating domestic flights.” The losses are primarily due to the dollar-based cost structure of the airline’s operations. Aircraft purchases, lease agreements, spare parts, and fuel are all priced in U.S. dollars. Mesfin warned that while the airline has absorbed these costs temporarily to maintain affordability for domestic travelers, it is unsustainable. “We cannot continue to operate at a loss. We’ve held prices down for a year to support stability, but we will begin adjusting fares to reflect rising costs,” he said. Fare Adjustments During Holidays To recoup costs, the airline plans to implement seasonal pricing adjustments—particularly during holidays. Outbound fares will rise while inbound return flights remain lower to prevent planes from flying empty. Mesfin cited examples such as the Qulubi Gabriel pilgrimage, where thousands fly to destinations like Al-Alu just before the holiday, but few return immediately after, leading to imbalanced flight occupancy. “We may operate up to 20 flights per day during such holidays. On the outbound leg, flights are full, but on return, they’re nearly empty. To cover that cost, the outbound fare must increase,” he explained. “We ask the public to understand this necessity.” Eritrean Funds Still Frozen The CEO also addressed the airline’s ongoing inability to repatriate funds held in Eritrea. As previously reported in July 2024, Eritrean banks blocked the airline from transferring its revenues back to Ethiopia. “Our funds remain frozen in Eritrea. We attempted to recover them through the legal system, but due to political and procedural barriers, we were unsuccessful. Releasing the funds will require a political solution,” Mesfin stated. Although the airline suspended commercial flights to Eritrea, it continues to operate through Eritrean airspace without issue. “We are not flying to Eritrea, but we use its airspace regularly. We’ve had no problems with Eritrea’s civil aviation authority. We also use Sudanese airspace when necessary,” he added.