World Bank Approves $700 Million Boost for Ethiopia’s Financial Sector

World Bank Approves $700 Million Boost for Ethiopia’s Financial Sector WASHINGTON, December 19, 2024 – Ethiopia’s financial system is set to receive a transformative boost following the World Bank’s approval of a $700 million credit for the Financial Sector Strengthening Project (FSSP). This ambitious initiative, funded through the International Development Association (IDA), aims to fortify the stability and resilience of Ethiopia’s financial sector, laying the groundwork for sustainable economic growth. Ethiopia’s financial system currently faces significant hurdles, including outdated regulatory frameworks and struggling public financial institutions. The FSSP is designed to address these challenges by modernizing the regulatory and supervisory framework of the National Bank of Ethiopia (NBE), overhauling governance structures, and restructuring the balance sheets of key institutions like the Commercial Bank of Ethiopia (CBE) and the Development Bank of Ethiopia (DBE). The project will also support the transformation of the DBE into a sustainable development finance institution, ensuring its long-term viability in driving Ethiopia’s economic development. A critical component of the initiative is the capacity-building and implementation support for the NBE, CBE, and DBE, aimed at fostering resilience and improving financial accessibility for Ethiopians across the board. A Pathway to Stability and Growth Maryam Salim, World Bank Country Director for Eritrea, Ethiopia, South Sudan, and Sudan, emphasized the project’s transformative potential. “We are proud to support Ethiopia in its journey to transform and strengthen its financial sector. This project reflects our commitment to promoting economic stability and inclusive growth in the country. By boosting the capacity of key financial institutions, we aim to build a more resilient and accessible financial system that truly meets the needs of all Ethiopians,” Salim said. The approval of the FSSP marks a pivotal moment in Ethiopia’s efforts to build a financial system that supports economic diversity and inclusivity. Beyond resolving current challenges, the initiative aims to unlock new growth opportunities by fostering a robust financial ecosystem capable of adapting to future demands. The Role of IDA in Ethiopia’s Development The International Development Association (IDA), the financing arm behind the FSSP, has a long-standing history of supporting low-income countries with grants and low-interest loans. Established in 1960, IDA has provided over $552 billion to 115 countries, with a significant portion directed to Africa. Ethiopia’s FSSP is the latest example of IDA’s commitment to driving economic transformation and poverty reduction. As Ethiopia embarks on this critical phase of financial reform, the infusion of $700 million is expected to catalyze meaningful change, equipping its financial institutions to better serve the country’s 120 million citizens and enabling a more stable, inclusive, and prosperous future. For more information on the Financial Sector Strengthening Project and IDA’s work in Ethiopia, visit IDA.worldbank.org. 1 COMMENT Fentahun Chanie Bekele December 21, 2024 At 9:36 pm Thank you so much , for supporting at this crisis time , it will never forgotten Thank you so much , for supporting at this crisis time , it will never forgotten Comments are closed.

Amhara Bank Urges Local Banks to Merge Amid Foreign Banks’ Entry

Amhara Bank Urges Local Banks to Merge Amid Foreign Banks’ Entry On December 18, 2024, Ethiopia’s parliament ratified a landmark banking proclamation allowing foreign banks to operate within the country. This move represents a pivotal step in Ethiopia’s ongoing economic reforms, enabling foreign banks to establish subsidiaries, open branches, and acquire up to 40% ownership in local banks. The decision to open the banking sector to foreign investment brings both opportunities and challenges. On the one hand, it can enhance competition, improve efficiency, and introduce advanced technologies. On the other hand, it poses challenges for local banks regarding competitiveness, capital strength, and management systems. Dr. Yohannes Ayalew, Chief Executive Officer of Amhara Bank, emphasized that most private banks in Ethiopia operate with limited capital. While capital is not inherently a barrier, its efficient allocation is critical for success. Foreign banks, with their substantial capital reserves, benefit from economies of scale, allowing them to lower costs per unit and offer more competitive pricing. To stay competitive, Dr. Yohannes advised local banks to consider mergers as a strategy to bolster their capital base. Furthermore, he highlighted the importance of improving asset quality, stating that clearing non-performing loans (NPLs) is vital to reducing costs and maintaining competitiveness. Dr. Yohannes also pointed out that the technological advancements of foreign banks present both opportunities and challenges for local institutions. Their extensive experience in competitive global markets gives them an advantage in management and operational efficiency. In contrast, Ethiopian banks have operated exclusively in domestic markets with policy support, creating a significant disparity. This gap poses a considerable challenge for local banks as they prepare to compete with foreign counterparts. Industry experts have noted that the higher borrowing interest rates of local banks may attract investors as foreign banks enter the market. Dr. Yohannes explained, “The primary reason for the high borrowing interest rate among local banks is policy-driven. Currently, the deposit interest rate is set at 7%. Borrowing rates are calculated starting from this base, adding operational costs and profit margins, which leads to the high rates.” He further suggested that if borrowing interest rates were liberalized, similar to foreign currency exchange, these rates could potentially decrease. However, foreign banks operating within the same market and policy environment are likely to offer comparable borrowing rates, potentially narrowing the gap between saving and borrowing interest rates. Dr. Yohannes stressed that the impact of foreign banks will largely depend on how well local banks prepare and respond to competition. He advised local banks to improve their management systems and conduct thorough research to identify gaps. With foreign currency exchange now liberalized, it is crucial for banks to strengthen their risk management through better research and forecasting. Since foreign currency rates are market-driven, they will affect all banks, and mitigating risks will be essential to avoid financial distress. “The entry of foreign banks into Ethiopia’s financial sector is vital, especially as we integrate into the global economy,” Dr. Yohannes remarked. He added that collaborating with these banks is key to expanding Ethiopia’s reach abroad, learning from their expertise, and competing on the international stage. The competition they bring will not only strengthen the banking sector but also benefit depositors and borrowers through more balanced pricing. Dr. Yohannes also noted that government restrictions on the number of foreign banks entering the market—either through establishing subsidiaries or purchasing shares in local banks—may help mitigate potential challenges. The CEO made these remarks during the launch of Aba QR, a new digital payment system aimed at transforming transactions in Ethiopia. The Aba QR app allows customers to scan a merchant’s QR code to view detailed payment information, such as product descriptions, quantities, and prices, before making quick, secure payments directly from their mobile phones. This eliminates the need for cash while ensuring accuracy and convenience. Merchants benefit from features like real-time updates of product details, prices, and service lists, daily sales report generation, cashier permission management, and instant digital receipts. Additionally, the CEO announced plans to introduce a system that would enable shareholders to participate remotely via digital platforms, eliminating the need for in-person attendance at meetings. He highlighted that other countries have already adopted such approaches and expressed optimism that Amhara Bank would follow suit. Dr. Yohannes explained that challenges encountered during this year’s 3rd Annual General Meeting of Shareholders had provided valuable lessons. As a result, efforts are underway to transition to digital solutions to prevent similar issues in the future.

National Bank of Ethiopia Launches Platform for Customer Complaints

National Bank of Ethiopia Launches Platform for Customer Complaints Addis Ababa, Ethiopia The National Bank of Ethiopia (NBE) has introduced an online platform and a dedicated hotline (7230) to assist customers in lodging complaints against financial institutions. This initiative reflects NBE’s commitment to addressing common issues in the financial sector, such as aggressive sales practices, deceptive advertising, and inadequate transparency, as detailed in a statement on the bank’s website. The newly launched platform enables customers to escalate complaints to NBE if financial institutions fail to resolve their issues internally within ten business days. This effort is part of a broader consumer protection framework under the Financial Consumer Protection and Education Directorate (FCPED), established following the enactment of the Financial Consumer Protection Directive in 2020. Strengthening Consumer Protection The directive requires all financial institutions to set up internal complaint-handling units capable of addressing grievances in multiple languages. These units must provide unique tracking numbers for complaints and resolve them within ten working days. Customers who find the resolution unsatisfactory or receive no response can escalate their concerns to NBE. The FCPED’s online platform, developed internally by the central bank, is designed to cater to the needs of vulnerable consumers, including low-income individuals and micro, small, and medium enterprises (MSMEs). The platform aligns with NBE’s goals of promoting financial inclusion, trust, and systemic stability. Partnerships and Goals In addition to its internal development efforts, NBE has collaborated with the United Nations Capital Development Fund (UNCDF) to receive technical support and conduct educational campaigns. These initiatives focus on improving digital financial services and raising awareness of consumer rights. “The platform aims to raise awareness of consumer rights, promote financial literacy, and hold financial institutions accountable, creating a more inclusive and trustworthy financial ecosystem,” said Endashaw Tesfaye, a digital financial services expert at UNCDF. Addressing Challenges in Financial Access Rapid financial inclusion has led to a significant increase in account ownership across developing economies, with the percentage of adults holding formal accounts rising from 42% in 2011 to 71% in 2021, according to World Bank data. While this growth is encouraging, it also brings challenges. Low-income and inexperienced consumers often face difficulties navigating financial services and are particularly vulnerable to fraud and exploitation. The NBE’s platform aims to tackle these challenges by focusing on education, regulatory oversight, and effective complaint resolution, ensuring a safer and more accessible financial environment for all Ethiopians. 3 COMMENTS Techalew Negash December 20, 2024 At 5:34 pm That is good stuff, and very useful, but what I can’t understad is that the likes of EEU, demands one to have telebirr to refill electric card at Gurd Shola branch, while the country’s mode mode of payment is through Banks or Cash. I would wish the concerned to clarify on that!!! That is good stuff, and very useful, but what I can’t understad is that the likes of EEU, demands one to have telebirr to refill electric card at Gurd Shola branch, while the country’s mode mode of payment is through Banks or Cash. I would wish the concerned to clarify on that!!! Alemayehu Balcha December 21, 2024 At 2:15 am Thankful! This is new Insite to c.complaint Thankful! This is new Insite to c.complaint Adinew December 21, 2024 At 1:32 pm Ysevit your rghit aganist to belonging for assistant in the geratest highe to Ethiopian seen Ysevit your rghit aganist to belonging for assistant in the geratest highe to Ethiopian seen Comments are closed.

Behind the Fintech Boom: Ethiopian Fintech’s Untold Challenges

Behind the Fintech Boom: Ethiopian Fintech’s Untold Challenges Ethiopia’s Financial Technology (fintech) sector is on a promising upward trajectory, driven by innovative products and a growing appetite for digital solutions. Mobile wallets, online banking, and digital payment platforms are transforming the way people transact, making financial services more accessible than ever before. From peer-to-peer transfers to bill payments, fintech is reshaping how individuals and businesses interact with money, signaling a shift toward a more connected and inclusive financial ecosystem. Yet, amidst this remarkable progress, person-to-merchant transactions remain a weak link, which undermines financial transparency and limits the effectiveness of these fintech products, highlighting both the strides made and the opportunities yet to be seized in Ethiopia’s digital finance revolution. Ethiopia’s fintech sector has progressed significantly since the modernization of payment systems in 2011 with the launch of the Ethiopian Automated Transfer System (EATS) by the National Bank of Ethiopia (NBE). The sector gained momentum in 2016 with the introduction of EthSwitch and surged further with Telebirr, a mobile money platform that attracted over 21 million users in its first year. Supported by the Digital Ethiopia 2025 strategy, these developments have reshaped financial services access, driving financial inclusion and laying the foundation for a connected digital economy. The transformation has reshaped how Ethiopians access and use financial services, laying the foundation for a more connected digital economy. According to the National Bank of Ethiopia (NBE), the country now averages over 7.5 million digital transactions daily, with a total transaction value exceeding 26.5 billion birr. Today, platforms like Telebirr, Ebirr, Kacha, Mobile Bankings and HelloCash lead the way in mobile money and online payments, while M-Pesa’s 2023 entry brought Safaricom’s expertise to the country. Chapa and ArifPay are revolutionizing e-commerce and point-of-sale transactions, and tools like CashGo and MamaPays are making remittances more accessible. Meanwhile, emerging digital lending and microinsurance solutions are supporting underserved communities, especially women and youth. Despite these advancements, the NBE’s recent financial stability report highlights challenges, such as the limited use of Point-of-Sale (PoS) machines compared to ATMs. Many businesses still prefer person-to-person transactions, according to industry experts. The report notes that the number of ATMs nationwide grew by 34.2% to 10,551 by June 2024, while PoS terminals increased by only 16.7%, reaching 14,030 during the same period. Additionally, most fintech tools, except Telebirr and M-Pesa, are predominantly used in Addis Ababa rather than other parts of the country. Solomon Tadesse, a cafe owner in the Kazanchis area, shared that despite displaying his Telebirr QR code on each table, many customers still prefer cash or mobile banking transfers. He attributed this hesitation to the lack of interoperability among systems prior to the NBE’s introduction of a QR code standard. Mohammed Assefa, Division IFB Product Manager at Bank of Abyssinia, pointed out that most transactions in Ethiopia are limited to P2P transfers and airtime purchases, with limited adoption of P2M and Business-to-Business (B2B) services. He noted that many businesses, especially SMEs, are hesitant to adopt digital platforms due to setup costs, lack of trust in technology, and limited technical knowledge. Additionally, Ethiopian consumers remain reluctant to move away from cash, unlike in Kenya, where M-Pesa has popularized cashless transactions. He also highlighted regulatory and infrastructure gaps, such as insufficient POS terminals, internet coverage, and clear interoperability guidelines, which hinder broader adoption. Mohammed further highlighted that while P2P transactions dominate in Ethiopia, P2M transactions account for less than 10% of total digital payments. He noted that mobile wallets are mostly used for bill payments and airtime top-ups, with minimal adoption for everyday retail purchases. Despite this, mobile money transaction volumes have grown exponentially, surpassing billions of Birr annually. However, significant potential remains untapped in sectors such as retail, hospitality, and transportation. “The adoption of P2M transactions in Ethiopia faces several challenges,” said Dawit Alemayehu, BNPL Product Manager at EagleLion System Technology. He highlighted issues such as low digital literacy, limited access to electricity and internet, and infrastructure problems like power outages. He also pointed to concerns around digital identification, cybersecurity, and customer protection. Dawit noted that a lack of trust, limited competition, and weak legal and regulatory frameworks hinder the growth of e-banking. Additionally, security risks and merchants’ skepticism about digital payments further slow adoption. P2M transaction tools are not being widely adopted in Ethiopia, with usage largely limited to specific sectors. E-commerce platforms, digital-based businesses, and event ticketing services have been the primary adopters, but broader integration remains scarce. While Telebirr is increasingly used for fuel purchases and is mandated for certain government services, its use in everyday commercial transactions is still minimal. The adoption of P2M tools can streamline payments, reduce cash handling risks, and increase financial inclusion by providing a secure, efficient way to conduct transactions, benefiting both businesses and consumers. These tools can also foster a more transparent economy, helping businesses track payments and customers make quicker, more convenient purchases. “P2M transactions offer numerous advantages,” said Dawit. These include improved financial management, simplify tax compliance, and attract customers who prefer cashless transactions. By enabling credit card acceptance and online payments, businesses can streamline transactions, manage cash flow better, avoid bad checks, and provide greater convenience and flexibility to customers. The minimal adoption of P2M transactions in Ethiopia has raised concerns among industry experts, who emphasize the need for further efforts in promoting innovative products and creating awareness, given the benefits for all stakeholders. Neighboring Kenya serves as a benchmark, with Safaricom’s collaboration with banks and a strong focus on merchant onboarding enabling mobile money to flourish. “Incentives such as reduced transaction fees and robust agent networks were key,” said Mohammed. He added that in Nigeria, fintech companies like Flutterwave and Paystack have leveraged APIs to support merchant payments and e-commerce, fostering a vibrant B2B and P2M ecosystem. Globally, India’s Unified Payments Interface (UPI) stands out as a model, enabling seamless transactions between merchants and consumers across platforms. Its success is attributed to government-led awareness campaigns, merchant incentives, and reduced fees for small transactions. “Investing in digital infrastructure, such as high-speed internet and mobile networks; promoting interoperability among digital payment systems; reducing regulatory burdens for new entrants; and encouraging mergers, acquisitions, and foreign bank participation are crucial steps,” said Dawit. He also emphasized the need for subsidizing or providing tax incentives for merchants to acquire and use POS terminals, streamlining the regulatory framework to enable more fintech companies to offer innovative solutions, improving digital and financial literacy through targeted campaigns, and investing in reliable internet connectivity and electricity to support POS system deployment. Dawit further explained that emerging technologies like AI, augmented reality (AR), virtual reality (VR), and advanced analytics are reshaping traditional teaching methods and broadening access to education in Ethiopia. He noted that these technologies could similarly revolutionize P2M transactions by unifying the payment ecosystem through interoperable QR code systems, increasing digital payment adoption, and reducing transaction costs. Additionally, they promote financial independence for merchants, expand market reach, lower operational costs, and enhance efficiency. “To advance the fintech landscape and increase P2M transactions, Ethiopia could incentivize merchants to adopt digital payments by reducing onboarding costs and transaction fees, invest in digital infrastructure such as POS terminals and internet connectivity, especially in underserved areas, create public-private partnerships to replicate successful models from neighboring countries, and enhance consumer awareness and trust through financial literacy programs and campaigns,” said Mohammed. The Ethiopian fintech landscape has achieved remarkable milestones, with numerous money transfer operators introducing innovative products tailored to the needs and cultural preferences of the society. These advancements are a testament to the country’s growing digital financial ecosystem, which has made financial services more accessible than ever before. However, despite these promising developments, the adoption and use of these products during transactions remain relatively minimal. This can be attributed to a range of challenges on both the user and merchant sides. To fully harness the potential of Ethiopia’s fintech sector, it is crucial to focus on addressing digital literacy gaps, building trust, and improving infrastructure to encourage wider adoption among both users and merchants.

Ethiopian Cargo Expands Fleet with Two Boeing 767 Freighters to Meet Growing Demand

Ethiopian Cargo Expands Fleet with Two Boeing 767 Freighters to Meet Growing Demand Addis Ababa, [Date] — Ethiopian Cargo and Logistics Services has announced the addition of two Boeing 767 freighters, ET-BBE and ET-BBF, to its growing fleet. This move marks a significant enhancement in the airline’s capacity to meet the surging global demand for air cargo services. With the addition of the two aircraft, Ethiopian Cargo now operates a total of 17 dedicated freighter planes, consisting of 10 Boeing 777Fs, 4 Boeing 737Fs, and 3 Boeing 767Fs. The expansion strengthens Ethiopian’s position as a key player in air cargo transportation, connecting Africa to major global markets. The new Boeing 767 freighter fleet was inaugurated with its first commercial flight to Ouagadougou, marking a milestone in expanding Ethiopian Cargo’s service routes. The new route signifies the airline’s ongoing commitment to strengthening logistics solutions across Africa, while enhancing trade connectivity and supply chain efficiency for key markets. As one of the continent’s logistics leaders, Ethiopian Cargo continues to pioneer reliable, world-class air cargo services, further solidifying its reputation for aviation excellence and fostering global trade. “This milestone reflects our commitment to expanding our cargo operations and providing world-class logistics solutions that connect Africa to the world,” Ethiopian Cargo stated. With an expanding fleet and enhanced service capacity, Ethiopian Cargo remains at the forefront of connecting Africa to global markets while driving economic growth across the region. 1 COMMENT Ittu Aba Farda December 18, 2024 At 4:56 am Up n up and all the only way but up is the only way this gem of an airline knows. It is expected that the higher you move up in fortunes the more some others will do the best they can to bring you down. EAL has been growing against all odds when many other airlines bit the dust. It is the pride of the colored since its inception. There have been a smear campaigns by losers now and in the past. These modern day Ol’ Cap’n Cotchipee’s seethe in rage whenever they see black folks succeed on their own. These slackers will not let up until their toyed up allegations somehow stick and for that reason this airline should be guarded at all times. Its bigoted foes may even try to set it up to commit mistakes. Otherwise, it is managed and run by geniuses from top to bottom. Go get’em tigers!!! Up n up and all the only way but up is the only way this gem of an airline knows. It is expected that the higher you move up in fortunes the more some others will do the best they can to bring you down. EAL has been growing against all odds when many other airlines bit the dust. It is the pride of the colored since its inception. There have been a smear campaigns by losers now and in the past. These modern day Ol’ Cap’n Cotchipee’s seethe in rage whenever they see black folks succeed on their own. These slackers will not let up until their toyed up allegations somehow stick and for that reason this airline should be guarded at all times. Its bigoted foes may even try to set it up to commit mistakes. Otherwise, it is managed and run by geniuses from top to bottom. Go get’em tigers!!! Comments are closed.

Digital Money Transfers Surpass Cash Transactions in Ethiopia, Says National Bank Governor

Digital Money Transfers Surpass Cash Transactions in Ethiopia, Says National Bank Governor On December 17, 2024, the Governor of the National Bank of Ethiopia (NBE), Mamo Miheret, addressed the House of People’s Representatives, highlighting the increasing digitization of the country’s financial system. According to his statement, digital money transfers facilitated by banks have now exceeded cash transactions this year. Governor Mamo noted that Ethiopia’s banking activities are fully under the regulatory oversight of the National Bank of Ethiopia. He explained that ongoing reforms within the NBE aim to modernize and align the financial system with digital advancements. While discussing the newly approved Banking Proclamation, Mamo Miheret addressed gaps in understanding and criticized certain questions raised by the House. He clarified that the new proclamation is not directly related to recent reforms undertaken by the National Bank. However, he cautioned that the frequent implementation of such proclamations may negatively impact banking operations. The Governor also emphasized that there is currently no revised banking regulation to attract foreign investment, and he called for addressing concerns raised by the House regarding this matter. He explained that the NBE’s ongoing amendments are primarily linked to monetary policy adjustments, urging the Council to ensure accurate interpretation of these changes. Furthermore, Governor Mamo praised the National Bank of Ethiopia’s performance, stating that its measures are more effective compared to other central banks in Africa. He commended the NBE’s role in stabilizing the economy, describing it as “commendable.” The Banking Proclamation, which had been long-awaited, was officially resolved during the Council meeting held today. Governor Mamo also took the opportunity to respond to questions and provide clarifications to the members of the Council.

NBE’s Landmark Proclamation Ushers in Bold Reforms for Monetary and Financial Stability

NBE’s Landmark Proclamation Ushers in Bold Reforms for Monetary and Financial Stability In a major stride toward modernizing Ethiopia’s financial landscape, the National Bank of Ethiopia (NBE) has secured approval for its draft proclamation, introducing transformative reforms aimed at ensuring economic stability, innovation, and stronger governance. At the heart of the proclamation is a recalibrated monetary policy framework, empowering the NBE to prioritize its objectives and deploy the most effective tools to achieve its goals. This includes the establishment of a Monetary Policy Committee to enhance decision-making and policy outcomes. A bold feature of the reform is the introduction of a legal framework for a central bank digital currency (CBDC), signaling Ethiopia’s readiness to explore next-generation financial solutions and digitized monetary systems. Experts believe this could open doors to greater financial inclusion and efficiency. The proclamation also strengthens Ethiopia’s financial safety nets through the creation of a National Financial Stability Committee, tasked with safeguarding the resilience of the financial sector amid economic shifts. Furthermore, new measures will formalize price stability targets, which were designed in consultation with key government stakeholders to curb inflation and promote sustainable growth. On the governance front, the proclamation redefines leadership structures, specifying the tenure, composition, and eligibility criteria for the NBE Board, Governor, and Vice Governors to ensure accountability and transparency at the institution’s helm. It also establishes clearer rules for the NBE’s relationship with the government, particularly regarding borrowing limits and loan repayment modalities to foster fiscal discipline. Significantly, the proclamation addresses consumer protection by establishing a legal foundation to safeguard financial service users—a growing necessity as Ethiopia’s banking and fintech sectors rapidly evolve.

Ethiopian Airlines Celebrates Air Congo’s Launch Tomorrow as Second Boeing 737 Lands in Kinshasa

Ethiopian Airlines Celebrates Air Congo’s Launch Tomorrow as Second Boeing 737 Lands in Kinshasa Kinshasa, DR Congo – Ethiopian Airlines, Africa’s largest carrier, is ushering in a new era of aviation with the launch of Air Congo, a joint venture with the Democratic Republic of Congo (DRC). The airline’s second Boeing 737-800 touched down at Kinshasa International Airport yesterday, signaling the final preparations for Air Congo’s official debut. The official launch event, scheduled for December 16, 2024, will mark the start of Air Congo’s operations, aiming to transform the aviation landscape in the DRC and beyond. Air Congo will operate with two Boeing 737-800s, both leased from Ethiopian Airlines, as it begins to serve the increasing demand for air travel across the vast Central African nation. Ethiopian Airlines holds a 49% stake in the venture, with the Congolese government owning the majority share, showcasing a partnership designed to strengthen the region’s air connectivity and economic growth. “This is not just an airline; it’s a bridge to opportunity,” Ethiopian Airlines said in a statement. “Air Congo is poised to connect communities, stimulate tourism, and provide a vital infrastructure for the DRC’s development.” Air Congo is expected to offer domestic and regional routes, leveraging Ethiopian Airlines’ expertise and infrastructure to deliver world-class service. This launch is part of Ethiopian Airlines’ broader strategy to expand its footprint across Africa, making air travel more accessible and reliable on the continent. With its reputation as the most ambitious airline in Africa, Ethiopian Airlines continues to lead the way in fostering regional partnerships and enhancing air travel opportunities for millions. Stay tuned for updates as Air Congo takes flight tomorrow, setting a new standard for aviation in the heart of Africa. 2 COMMENTS Ittu Aba Farda December 16, 2024 At 10:19 pm Btw, a longtime friend called me this morning to say hello and asked me if I have heard or read of what might have happened to our daughters who moved to Lebanon for better opportunities. I told him I have heard nothing about their fate during the Hezbollah-Israeli war. He is as worried for them as I am. But every media outlet in our Diaspora has been tone deaf about it but rather continuing to be platforms and sounding boards for those who are pushers of hate. We have turned our hearts given to us by our caring fathers into hearts of steel. O my daughters!!! You are in my daily prayers! I hope The Almighty Our Creator has been blanketing you from any harm during the bloodletting. Woe my daughters! Woe! Woe! Woe!!! Btw, a longtime friend called me this morning to say hello and asked me if I have heard or read of what might have happened to our daughters who moved to Lebanon for better opportunities. I told him I have heard nothing about their fate during the Hezbollah-Israeli war. He is as worried for them as I am. But every media outlet in our Diaspora has been tone deaf about it but rather continuing to be platforms and sounding boards for those who are pushers of hate. We have turned our hearts given to us by our caring fathers into hearts of steel. O my daughters!!! You are in my daily prayers! I hope The Almighty Our Creator has been blanketing you from any harm during the bloodletting. Woe my daughters! Woe! Woe! Woe!!! Ittu Aba Farda December 18, 2024 At 5:56 pm What did I tell you about the old country a million times? I have told you it is a gem of the colored. Didn’t I? This airline is the other gem. Up, up you go!!! What did I tell you about the old country a million times? I have told you it is a gem of the colored. Didn’t I? This airline is the other gem. Up, up you go!!! Comments are closed.

East Africa Electric Highway Begins Trial Supply from Ethiopia to Tanzania

East Africa Electric Highway Begins Trial Supply from Ethiopia to Tanzania The East Africa Electric Highway project, a pivotal power infrastructure initiative among Ethiopia, Kenya, and Tanzania, has entered a new phase with the official commencement of trial power supply from Kenya to Tanzania. This achievement builds on Ethiopia’s broader ambition to establish itself as a renewable energy hub in East Africa. Key Developments in the Project This milestone follows the successful establishment of a high-capacity power connection between Ethiopia and Kenya, enabled by advanced power transmission technology. Ethiopia’s role as a supplier of clean energy in the region has been further cemented through this collaboration. The subsequent phase of the project, linking Kenya and Tanzania, has now been completed, enabling trial power distribution and setting the stage for a fully operational regional power grid. Economic and Environmental Impact The regional power connection is expected to strengthen cooperation among the participating nations by facilitating the supply of consistent, cost-effective, and renewable energy. For Ethiopia, this initiative expands its capacity to export green electricity, furthering its leadership in regional energy trade. Initial estimates suggest the project could generate approximately USD 200 million annually through electricity trading, providing much-needed revenue and fostering sustainable economic growth. By reducing dependence on fossil fuels, the project also aligns with global environmental goals and supports East Africa’s transition to a greener energy future. It showcases the region’s commitment to leveraging renewable resources for sustainable development. GERD and Ethiopia’s Role in Renewable Energy A significant driver behind Ethiopia’s renewable energy exports is the Grand Ethiopian Renaissance Dam (GERD). As Africa’s largest hydroelectric project, GERD is expected to generate over 6,000 MW of electricity upon completion. This massive energy capacity not only addresses domestic electricity needs but also provides surplus power for export to neighboring countries, including Kenya, Sudan, and South Sudan. GERD has already transformed Ethiopia into a key player in the regional energy market. With its ability to deliver consistent and clean electricity, the dam underpins Ethiopia’s ambition to become a leader in renewable energy production and trade. Combined with the East Africa Electric Highway, GERD strengthens Ethiopia’s energy export infrastructure and bolsters the country’s diplomatic and economic influence in the region. Support and Collaboration The East Africa Electric Highway project has received financial backing from the World Bank, the African Development Bank (AfDB), and the Agence Française de Développement (AFD). These institutions have recognized the project’s potential to foster regional integration, reduce energy costs, and promote sustainable development. The collaboration among Ethiopia, Kenya, and Tanzania demonstrates the power of regional partnerships in addressing shared challenges. By pooling resources and expertise, these nations are taking bold steps toward creating a stable, interconnected energy network that benefits the entire region. Looking Ahead As the trial power supply progresses, the successful implementation of the East Africa Electric Highway will mark a significant leap toward achieving regional energy security. By connecting Ethiopia’s hydroelectric power to a broader network, the project promises to transform East Africa into a model of renewable energy integration, driving economic growth and environmental sustainability for years to come. 2 COMMENTS Ittu Aba Farda December 16, 2024 At 10:25 pm Hey, el-Sisi, Look at the moon and eat your crow!!! Na-na na-na na-na nah!!!! Hey, el-Sisi, Look at the moon and eat your crow!!! Na-na na-na na-na nah!!!! Michael B December 18, 2024 At 5:09 am I see Ethiopian Electric is taking a parallel strategic path of expanding regionally as what Ethiopian Airlines been doing for a long time. I think this’s highly recommendable as GERD is becoming the basis of this Strategy to generate revenue.However, Ethiopian Electric should also prioritize the 60% Ethiopian households who lack power light. Maybe the revenue generated from selling to regional countties could also be used to finance the domestic infrastructure needed to benefit the rest of the country. I see Ethiopian Electric is taking a parallel strategic path of expanding regionally as what Ethiopian Airlines been doing for a long time. I think this’s highly recommendable as GERD is becoming the basis of this Strategy to generate revenue.However, Ethiopian Electric should also prioritize the 60% Ethiopian households who lack power light. Maybe the revenue generated from selling to regional countties could also be used to finance the domestic infrastructure needed to benefit the rest of the country. Comments are closed.