Ethiopia’s Debt Crisis: Why Investors and the IMF Are Clashing

Ethiopia’s Debt Crisis: Why Investors and the IMF Are Clashing Ethiopia is caught in a financial dispute between international investors and the International Monetary Fund (IMF). At the center of this issue is Ethiopia’s $1 billion bond—a loan it took from private investors but stopped repaying in 2023 due to economic struggles and a civil war. Now, Ethiopia is trying to renegotiate its debt, but the process is turning into a battle over how much relief the country really needs. Why is Ethiopia in Debt Trouble? Like many developing countries, Ethiopia borrowed large amounts of money from international lenders, including private investors, foreign governments (like China), and global institutions (like the World Bank). However, in 2023, Ethiopia stopped making payments on its $1 billion bond, which meant it had officially “defaulted”—similar to how an individual might miss mortgage payments on their house. Ethiopia is now negotiating with its creditors (the people it owes money to) to reduce its debt burden. The IMF has stepped in to help Ethiopia secure a $3.4 billion bailout, but it has also set conditions, including requiring Ethiopia to get more debt relief from bondholders. Why Are Investors Angry at the IMF? A group of bondholders (the investors who lent Ethiopia the $1 billion) is accusing the IMF of exaggerating Ethiopia’s financial problems and unfairly pushing them to accept losses. Their argument is based on the fact that Ethiopia’s economy has been recovering strongly over the past year, especially in two key sectors: Coffee Exports: Ethiopia is Africa’s largest coffee producer, and the global demand for coffee has driven up prices. Ethiopia’s coffee exports increased by 60%, reaching nearly $1 billion in revenue. Ethiopia is Africa’s largest coffee producer, and the global demand for coffee has driven up prices. Ethiopia’s coffee exports increased by 60%, reaching nearly $1 billion in revenue. Gold Exports: Ethiopia’s gold exports have surged by an astonishing 700%, bringing in $1.3 billion. Part of this boom is due to the government cracking down on gold smuggling, forcing more gold sales into the official market. Ethiopia’s gold exports have surged by an astonishing 700%, bringing in $1.3 billion. Part of this boom is due to the government cracking down on gold smuggling, forcing more gold sales into the official market. Currency Devaluation Helped Boost Exports In 2024, Ethiopia devalued its currency (the birr)—meaning the birr lost value compared to the US dollar. While this made imported goods more expensive, it made Ethiopia’s exports cheaper and more competitive in international markets, doubling the country’s total exports to $3 billion in just six months. Because of this improvement in Ethiopia’s economy, bondholders believe Ethiopia doesn’t need as much debt relief as the IMF claims. They argue that the IMF’s forecasts ignore Ethiopia’s recent economic rebound and make the country’s financial situation look worse than it really is. What’s the IMF’s Position? The IMF disagrees with investors and says that despite recent improvements, Ethiopia’s debt is still “unsustainable.” The IMF believes that: Ethiopia’s export growth might be temporary and not enough to guarantee long-term financial stability. The country still has $30 billion in external debt, and restructuring is necessary to avoid future defaults. Ethiopia must reduce its debt compared to its exports to meet the IMF’s lending criteria. Because Ethiopia is receiving a $3.4 billion bailout from the IMF, the fund has a lot of influence over how debt negotiations play out. Investors are frustrated that the IMF is pushing for bigger debt reductions than they think are necessary. Why Did Investors Reject Ethiopia’s Debt Proposal? In October 2023, Ethiopia offered to cut the bond’s value by 18%—meaning investors would lose some of their money but still get most of it back. However, bondholders rejected this offer because: They believe Ethiopia’s economy is improving, so there’s no need for a major reduction. They suspect the IMF is manipulating the numbers to justify a larger debt cut. They think they can negotiate a better deal. Meanwhile, critics argue that investors could have still made a profit if they had accepted Ethiopia’s offer. A report by Debt Justice and other African economic think-tanks showed that investors bought Ethiopian bonds at a discount (67 cents per dollar), meaning even with the debt reduction, they would still make money. The Hydropower Loan Controversy Another big issue frustrating investors is that Ethiopia is taking out a new $1 billion loan to build the country’s second-largest hydropower dam while still being in default on its old debt. Investors argue: If Ethiopia can afford a huge loan for a dam, why can’t it pay its existing debts? The IMF should not have allowed this loan while Ethiopia is still negotiating debt relief. The bondholder committee wants Ethiopia to reveal the terms of the new dam loan, saying it’s unfair to borrow more while refusing to fully pay back existing debts. What Does This Mean for Ethiopia? Ethiopia is walking a tightrope between satisfying the IMF (to secure bailout funds) and keeping investors happy (to maintain its reputation in global markets). The outcome of these negotiations will affect: 1. Ethiopia’s Economic Future If Ethiopia gets a fair debt deal, it could stabilize its economy and attract more investment. If the process drags on or investors refuse to negotiate, Ethiopia could face even deeper financial trouble. 2. Other Countries in Debt Crises Many other developing countries (like Sri Lanka and Zambia) are in similar situations. How Ethiopia handles its debt could set a precedent for how future debt negotiations are handled. 3. Relations with China and Other Lenders Ethiopia owes most of its $30 billion debt to China and other governments, which are usually less willing to accept losses than private investors. The IMF wants all lenders to share the burden, but big lenders like China may resist debt cuts. Bottom Line This situation is a power struggle between investors, the IMF, and Ethiopia over how much debt relief is truly necessary. Investors say Ethiopia’s booming coffee and gold exports mean it doesn’t need much debt relief. The IMF says Ethiopia’s debt is still too high and needs to be significantly reduced. Ethiopia is caught in the middle, trying to secure a good deal while also borrowing more money for development projects. The final outcome will impact Ethiopia’s economy, international reputation, and ability to borrow money in the future.

Ethiopia Set to Introduce New Passport and Visa System by End of the Month

Ethiopia Set to Introduce New Passport and Visa System by End of the Month Ethiopia is set to officially introduce a new passport and visa system by the end of the current Ethiopian month, Yekatit 2017 (February 2025), according to the Immigration and Citizenship Service. The revised passport, designed with advanced security features and enhanced aesthetics, will replace the existing version, while the visa system will also undergo a major transformation. This announcement was made during an inspection visit by the Standing Committee on Foreign Affairs of the House of People’s Representatives to the Immigration and Citizenship Service headquarters. A Modernized Passport with Enhanced Features The newly designed passport is said to be significantly superior to the current one in terms of color, design, content, and security. The internal pages of the passport will feature cultural and historical landmarks from Ethiopia, including Aksum, Gondar, the Great Wall of Jegol, coffee production, and other national heritage sites. Alongside the passport update, Ethiopia will also introduce a new visa sticker and an electronic visa system. The Ministry of Foreign Affairs has informed the diplomatic community about these changes, emphasizing that Ethiopia’s visa process has been fully digitized, replacing the old handwritten system. Transition to Digital and Biometric Security According to Deputy Director Ato Biki, the previous system, where visas were issued manually, had security loopholes. The new system ensures that all residency permits, visas, and passports will be processed digitally, enhancing security and efficiency. A significant change in the travel documentation process is the introduction of fully biometric data registration for emergency travel documents. Previously, these documents were issued on paper, allowing certain foreign nationals, including Eritreans, to claim refugee status and exit the country more easily. The new system aims to eliminate fraud and increase accountability. Improved Security for Ethiopian Passports Officials highlighted that the old laminated passport design had vulnerabilities, making it easier to forge. There have been reports of Ethiopian passport booklets being illegally copied and distributed in Uganda and Somaliland. The new electronic passport, featuring biometric security, will make counterfeiting nearly impossible. Another key change is the localization of passport production. Previously, Ethiopian passports were printed abroad without direct government oversight. The new passports will be designed, produced, and controlled domestically, ensuring stricter security and national oversight. New Passport Fees and Expedited Processing The Immigration and Citizenship Service recently revised its pricing structure for passport issuance. Standard processing will cost 5,000 ETB, while an expedited passport available in two days will cost 25,000 ETB. A five-day expedited service will be priced at 20,000 ETB. Fees for lost or damaged passports range from 13,000 ETB to 40,000 ETB, depending on the case. With the implementation of these changes, Ethiopia aims to modernize its immigration services, enhance national security, and improve the efficiency of passport and visa processing. The new system is expected to officially roll out by the end of Yekatit 2017 (February 2025), with the old passport remaining valid until Sene 2017 (July 2025). 8 COMMENTS Fekadu Beyene February 16, 2025 At 9:20 pm The old passport should be valid until its expiry date. Orherwise, a person who renewed his/her passport two months ago will be forced to apply for the new passport in July. This will create a lot of crowd in the provision of service and making it more expensive if one has to get it urgently. If the government is ready to print it faster domestically, it may workout. Abiyatar Assefa February 18, 2025 At 2:56 pm It is definitely True! First I would like to appreciate the Government body behind this system ! My comment is, There must be another way for such cases. 1. 2000 birr must be compensated 2. Peoples with such case should be get in to considerations with for example, getting priority for passport processes and on time delivery, 3. Person who have flight schedules with in the time of system change should be considered Finally I hope things would be settled peacefully and promptly! The old passport should be valid until its expiry date. Orherwise, a person who renewed his/her passport two months ago will be forced to apply for the new passport in July. This will create a lot of crowd in the provision of service and making it more expensive if one has to get it urgently. If the government is ready to print it faster domestically, it may workout. Abiyatar Assefa February 18, 2025 At 2:56 pm It is definitely True! First I would like to appreciate the Government body behind this system ! My comment is, There must be another way for such cases. 1. 2000 birr must be compensated 2. Peoples with such case should be get in to considerations with for example, getting priority for passport processes and on time delivery, 3. Person who have flight schedules with in the time of system change should be considered Finally I hope things would be settled peacefully and promptly! It is definitely True! First I would like to appreciate the Government body behind this system ! My comment is, There must be another way for such cases. 1. 2000 birr must be compensated 2. Peoples with such case should be get in to considerations with for example, getting priority for passport processes and on time delivery, 3. Person who have flight schedules with in the time of system change should be considered Finally I hope things would be settled peacefully and promptly! Yes February 17, 2025 At 7:53 am New way of collecting money from the people New way of collecting money from the people Nuredin Kedir February 17, 2025 At 11:40 am Modernised passport and electronic visa is the best way for all Ethiopians citizen. I hope that all Ethiopian ?? citizen will have this passport. Modernised passport and electronic visa is the best way for all Ethiopians citizen. I hope that all Ethiopian ?? citizen will have this passport. Teddy February 18, 2025 At 9:21 am Considering the current economical environment; the first comment by Fekadu Beyene is logical and should be considered. Those who have recently renewed their passport should be exempted from having to change it. The initiative to upgrade the passport is a good idea since it lacks strong security measures. Considering the current economical environment; the first comment by Fekadu Beyene is logical and should be considered. Those who have recently renewed their passport should be exempted from having to change it. The initiative to upgrade the passport is a good idea since it lacks strong security measures. Emu February 21, 2025 At 3:37 pm I recently renewed my passport urgently(5days) like 2weeks back. Does it mean I also have to renew again for this one?Paying 20k again is unfair..!! Addis Insight February 22, 2025 At 12:31 pm No I recently renewed my passport urgently(5days) like 2weeks back. Does it mean I also have to renew again for this one?Paying 20k again is unfair..!! Addis Insight February 22, 2025 At 12:31 pm No No Ethiopia Introduces New E-Passport in 2025 February 28, 2025 At 12:59 am […] Ethiopia has reformed its visa issuance process by introducing a fully digitized system. This replaces the previous manual, handwritten method, addressing security vulnerabilities and […] […] Ethiopia has reformed its visa issuance process by introducing a fully digitized system. This replaces the previous manual, handwritten method, addressing security vulnerabilities and […] Comments are closed.

Ethiopian Airlines Transports 50 Million Flower Stems for Valentine’s Season

Ethiopian Airlines Transports 50 Million Flower Stems for Valentine’s Season Ethiopian Cargo and Logistics Service has successfully transported an impressive 50 million stems of flowers, amounting to 4,200 tons, in preparation for the Valentine’s season. As one of the world’s leading air cargo operators, Ethiopian Cargo plays a crucial role in the global flower supply chain, ensuring that fresh blooms reach markets across different continents just in time for the most romantic day of the year. The majority of these shipments originated from key flower-producing regions, including Addis Ababa (Ethiopia), Nairobi (Kenya), and Bogotá (Colombia). These regions are globally recognized for their high-quality flower production, particularly roses, which are in high demand during Valentine’s Day. Ethiopian Cargo efficiently transported these floral shipments to major international markets such as Liege (Belgium), Brussels (Belgium), and various destinations across the Middle East. These hubs serve as key distribution points, enabling flowers to reach florists and retailers across Europe, the Gulf region, and beyond. To meet the heightened demand of the Valentine’s season, Ethiopian Cargo deployed its state-of-the-art Boeing 777 freighter aircraft, which are equipped with advanced temperature-controlled cargo holds. This ensures that the delicate flowers remain fresh throughout their journey, preserving their beauty and quality upon arrival. Ethiopian Cargo’s extensive cool chain logistics solutions and efficient handling systems have made it a trusted partner for flower exporters worldwide. As the largest cargo operator in Africa, Ethiopian Cargo continues to expand its capabilities, reinforcing its position as a critical link in the global flower export industry. By prioritizing reliability and efficiency, the airline enables flower growers and exporters in Africa and Latin America to connect with international buyers, helping businesses thrive while delivering joy to millions of people around the world. “At Ethiopian Cargo, we take pride in being a go-to partner for the global flower industry, especially during peak seasons like Valentine’s Day,” the company stated. “Our commitment to excellence in air freight services ensures that every petal reaches its destination fresh and vibrant, spreading love and happiness across the globe.” With its strong global network, cutting-edge logistics infrastructure, and commitment to quality, Ethiopian Cargo continues to play a leading role in transporting flowers and perishable goods worldwide, reinforcing Ethiopia’s position as a key player in the international flower export market.

MIDROC Investment Group Breaks Ground on 2.6 Billion Birr Luxury Resort in Hawassa

MIDROC Investment Group Breaks Ground on 2.6 Billion Birr Luxury Resort in Hawassa Hawassa is set to welcome a new era of luxury and hospitality as MIDROC Investment Group officially begins construction on its latest landmark project—a 2.6 billion birr resort that promises to redefine tourism in the city. A Grand Vision Takes Shape The highly anticipated resort, Four Points by Sheraton Hawassa, is being developed on a 21,000-square-meter prime location, offering breathtaking views and world-class amenities. The project was officially launched by Sidama Regional State Head, Desta Ledamo, in a ceremony attended by senior officials, business leaders, and esteemed community elders. Speaking at the event, Ato Solomon Zewdu, Deputy CEO of MIDROC’s Hotel and Resort Sector, highlighted the resort’s significance: “This luxury resort is designed to host major national and international events efficiently, boosting Hawassa’s appeal as a premier destination for business and leisure travelers alike.” Transforming Tourism & Job Creation Beyond its architectural and hospitality ambitions, the project brings a significant economic impact. During construction alone, it will generate 500 job opportunities, while once operational, it is expected to permanently employ more than 350 residents from Hawassa and the surrounding region. Sidama Regional State Administrator Desta Ledamo emphasized the resort’s contribution to the region’s growing tourism industry: “This development will enhance the city’s hotel and tourism sector, creating new opportunities and strengthening the local economy.” Hawassa City Mayor Mekuria Mershaye echoed this sentiment, pledging the city’s full support in ensuring the project’s timely completion. A Milestone for Hawassa’s Future As construction gets underway, Four Points by Sheraton Hawassa is poised to become a symbol of progress and luxury, attracting high-profile visitors, international conferences, and leisure seekers to the vibrant city. With MIDROC Investment Group at the helm, this ambitious project signals a new chapter for Hawassa, elevating its status on the national and global tourism map. 1 COMMENT Ittu Aba Farda February 15, 2025 At 10:58 am I just discovered from an earthquake watch website that the area which has been enamored with a series of earthquakes, Awash and Metahara vicinity just got hit with the strongest tremor to-date at 6.0. That is what has been worrying me. 6.0 is very strong that can destroy an entire village or town like Awash and Metahara where houses are built with no quake minded building codes. May The Almighty Save our people!!! I just discovered from an earthquake watch website that the area which has been enamored with a series of earthquakes, Awash and Metahara vicinity just got hit with the strongest tremor to-date at 6.0. That is what has been worrying me. 6.0 is very strong that can destroy an entire village or town like Awash and Metahara where houses are built with no quake minded building codes. May The Almighty Save our people!!! Comments are closed.

Ethiopia’s Inflation Declines as Exports and Foreign Exchange Flows Increase

Ethiopia’s Inflation Declines as Exports and Foreign Exchange Flows Increase Addis Ababa, Ethiopia – Ethiopia’s economic landscape is undergoing significant changes, with inflation rates reaching a five-year low, exports witnessing record growth, and foreign exchange availability improving. The latest data from the National Bank of Ethiopia (NBE) and the Ethiopian Statistical Service indicate a shift in key economic indicators, reflecting ongoing policy adjustments and market responses. Inflation Declines to 15.5%, Lowest in Five Years Ethiopia’s inflation rate dropped to 15.5% in January 2025, down from 29.4% in January 2024, representing a 13.9 percentage point decline. This marks the lowest inflation level recorded in the last five years. The reduction in inflation is attributed to a combination of monetary policy measures, stabilized supply chains, and improved domestic production. Food inflation, which has historically been a major contributor to overall inflation, fell significantly from 32.3% in January 2024 to 15.7% in January 2025—a decline of 16.6 percentage points. Non-food inflation also saw a 10.2 percentage point reduction, dropping from 25.3% to 15.1% over the same period. These trends suggest a decrease in consumer price pressures, particularly in essential goods. However, the sustainability of this decline will depend on factors such as global commodity prices, agricultural performance, and policy execution in the coming months. Exports Experience Strong Growth, Imports Adjust Ethiopia’s exports have experienced a historic surge, reaching $3.27 billion in the July–December 2024 period, more than doubling from $1.60 billion in the same period of 2023—an increase of 104.3%. This growth is largely driven by gold and coffee exports, which have seen substantial gains: Gold exports rose from $161 million in July–December 2023 to $1.36 billion in July–December 2024, an increase of 735.2%. The sharp rise reflects improved gold production, higher global prices, and stronger export facilitation policies. Coffee exports, a key sector for Ethiopia, grew by 60%, increasing from $574 million to $918 million over the same period. The rise in coffee exports aligns with improved international demand and government incentives for agribusiness exports. Meanwhile, total imports declined by 4%, falling from $8.99 billion in July–December 2023 to $8.63 billion in July–December 2024. This decline in imports is partly due to foreign exchange constraints, local production increases, and government policies aimed at reducing dependency on imported goods. Foreign Exchange Market Strengthens as Remittances and FX Sales Increase Remittance inflows and foreign exchange sales by banks have both increased, signaling greater foreign currency availability in the market. Private individual remittances through banks grew by 23.3%, reaching $1.83 billion in July–December 2024, up from $1.48 billion in the same period of 2023. This increase may be linked to improved financial sector regulations, diaspora engagement programs, and higher trust in formal banking channels. Foreign exchange (FX) sales by banks have risen significantly, with the daily average FX sales increasing from $22 million in August 2024 to $42.9 million in January 2025. This sharp rise suggests an easing of FX shortages, which could help businesses access foreign currency for imports and investment. While these developments are positive, analysts note that sustained foreign exchange stability will depend on factors such as export performance, foreign direct investment (FDI) inflows, and government reserve policies. Financial Market Adjustments: Interest Rates Align with Market Trends The Ethiopian financial sector is also undergoing adjustments, with key interest rates moving closer to market levels. Treasury bill (T-bill) rates for 364-day securities increased from 10% to 15.7%, reflecting growing investor demand and alignment with the NBE’s policy rate of 15%. Interbank money market rates have risen, with the weighted average interest rate reaching 17.7%, surpassing the NBE’s 15% policy rate. The lowest interbank lending rate stood at 17.0%, indicating increased liquidity competition among financial institutions. These interest rate adjustments suggest a shift toward a more market-driven financial system, potentially enhancing credit availability and overall economic stability. Economic Outlook and Key Considerations The current economic trends suggest a shift in Ethiopia’s economic landscape, with declining inflation, rising exports, and growing foreign exchange availability. However, several challenges remain: Sustaining Inflation Control – While inflation has declined, external shocks such as global food prices and fuel costs could influence future inflation trends. Maintaining Export Growth – The sharp increase in exports, particularly in gold and coffee, needs to be sustained through policy support and market diversification. Foreign Exchange Stability – The rise in remittances and FX sales is promising, but long-term stability depends on expanding foreign investment and increasing reserves. Interest Rate Policy Adjustments – As interest rates align with market conditions, financial sector reforms may be needed to support businesses and consumers. As Ethiopia navigates these economic adjustments, policymakers, investors, and businesses will be monitoring developments closely to assess long-term stability and growth potential. 2 COMMENTS Jemal Seid Abdi February 16, 2025 At 8:35 pm Clear some money and legal action on the results of Jemal Abdi category is better than the other. Clear some money and legal action on the results of Jemal Abdi category is better than the other. Jemal Seid Abdi February 16, 2025 At 8:37 pm Direct on really Mooney to transfer money from online mobile money to deliver account. Direct on really Mooney to transfer money from online mobile money to deliver account. Comments are closed.

Ethiopia’s Gold Exports Surge 735%, Foreign Currency Inflows Jump 23.3%

Ethiopia’s Gold Exports Surge 735%, Foreign Currency Inflows Jump 23.3% The National Bank of Ethiopia (NBE) has announced significant economic changes, with inflation dropping to 15.5% in January 2024, down from 29.4% a year ago—a 13.9 percentage point decline. Food inflation fell by 16.6 percentage points, while non-food inflation dropped by 10.2 percentage points. Meanwhile, Ethiopia’s export sector has reached record highs, with gold exports surging by 735.2% compared to last year and coffee exports rising by 60%. In contrast, total imports have fallen from $8.99 billion (July–December 2023) to $8.63 billion in the same period of 2024, reflecting adjustments to the exchange rate. Foreign currency inflows are also strengthening, with private individual transfers via banks increasing by 23.3%. Additionally, the daily average of foreign exchange sales by banks has nearly doubled, rising from $22.0 million in August to $42.9 million in January. Interbank market activity continues to grow, with trading volumes increasing in both the money and foreign exchange markets. The interbank money market’s cumulative transactions peaked at ETB 183.3 billion in week 12, indicating improved liquidity and market confidence.

Neb Bank Launches New Digital Payment Systems

Neb Bank Launches New Digital Payment Systems Neb International Bank has officially launched its latest digital service applications, Neb Amber Pay and Neb Paystream, designed to streamline financial transactions and enhance payment convenience for customers. The launch event took place on February 5, 2017, at the bank’s headquarters. Speaking at the ceremony, Neb Bank CEO Ato Henok Kebede highlighted the significance of these new digital solutions in simplifying business transactions and improving financial accessibility. Neb Amber Pay, one of the newly introduced platforms, enables businesses to receive payments securely and efficiently while providing real-time monitoring of financial activities via mobile devices. This application supports multiple payment methods and is particularly beneficial for businesses with multiple sales personnel, as it allows them to process transactions from a single account using a mobile application. The second product, Neb Paystream, is designed to facilitate online transactions, allowing businesses to receive digital payments for the services they provide. Ato Henok emphasized that this innovation caters to the growing demand for seamless online financial solutions in the business community. The CEO further noted that the launch of these digital services aligns with Neb International Bank’s commitment to technological advancement and customer convenience. By embracing innovative financial solutions, the bank aims to enhance operational efficiency and drive digital transformation. Neb International Bank reaffirmed its dedication to continuously integrating new technologies to improve its services, ensuring customers have access to cutting-edge digital banking solutions. 1 COMMENT Alemayehu Erjabo February 13, 2025 At 10:29 pm Very well and amazing service through technology .this what expected from Ethiopian government ,Ethiopian telecom and Ethiopian banks .go ahead with current global technology . Very well and amazing service through technology .this what expected from Ethiopian government ,Ethiopian telecom and Ethiopian banks .go ahead with current global technology . Comments are closed.

Ethiopian Airlines Takes Action Over Unauthorized Video Shoot by Artist Piplone

Ethiopian Airlines Takes Action Over Unauthorized Video Shoot by Artist Piplone Legal Implications Being Assessed Ethiopian Airlines has taken administrative action regarding an unauthorized video shoot by artist Piplone within its premises. The airline’s legal department is currently reviewing the situation to determine if there are grounds for legal proceedings. According to Ethiopian Airlines’ CEO Mesfin Tasew and Chief Commercial Officer Lemma Yadecha, the incident came to light during a press briefing held at the airline’s headquarters on February 12, 2025. They clarified that while the airline had granted permission for promotional content creation within its premises under formal procedures, the specific video in question did not follow the required process. Administrative Measures Taken It was revealed that employees from the Addis Ababa sales office, who were involved in granting permission for the shoot, are facing administrative action. The airline’s executive team was reportedly unaware of the video production until after its release. The officials emphasized that Ethiopian Airlines follows strict procedures for granting access to its premises for photography and videography. Typically, such approvals come through either the public relations or the promotional and marketing departments. However, in this case, the request was directed to the Addis Ababa sales office, bypassing the usual channels. Legal and Internal Investigations Underway Addressing concerns regarding potential legal repercussions, CEO Mesfin stated:“If our legal team determines that there are legal grounds for pursuing action, we will proceed accordingly.” He also acknowledged internal procedural lapses, stating that necessary corrective measures are being taken, both administratively and operationally, to prevent similar incidents in the future. Ethiopian Airlines has already initiated an internal audit to investigate how the approval was granted and has taken disciplinary action against those involved. Unauthorized Use of Airline Premises The video, filmed in a restricted maintenance area, was allegedly shot with permission obtained through unofficial channels. A request was submitted to the Addis Ababa sales office on December 6, 2024, and approval was granted two days later without involvement from the appropriate departments. Although the request cited “promoting Ethiopian Airlines and Ethiopian tourism,” no official approval was provided for the actual content before it was released. According to internal sources, neither images nor videos were shared with the airline prior to publication. Ethiopian Airlines’ Commitment to Security and Compliance The airline emphasized its commitment to maintaining its operational and security standards. In response to this incident, the management is reinforcing its internal approval procedures to prevent unauthorized content creation within its facilities. CEO Mesfin concluded by stating:“The issue arose due to internal procedural gaps. We have taken and will continue taking administrative actions. Ethiopian Airlines leadership is addressing this matter seriously. Those responsible will face disciplinary measures, and we are working to establish stronger controls to prevent future occurrences.” This incident has highlighted the importance of stringent internal processes and the necessity of clear communication between departments to ensure compliance with Ethiopian Airlines’ policies.

Telebirr Hits 51.5 Million Users, Facilitating 1.03 Trillion ETB in Transactions

Telebirr Hits 51.5 Million Users, Facilitating 1.03 Trillion ETB in Transactions Telebirr Hits 51.5 Million Users, Facilitating 1.03 Trillion ETB in Transaction Ethio Telecom’s financial performance in the first half of the 2024 fiscal year has been robust, highlighted by an EBITDA of 32.82 billion ETB, reflecting a profitability margin of 55.6%. The company also reported 61.9 billion ETB in total revenue, achieving 90.7% of its target. In addition to solid revenue from its core operations, Ethio Telecom generated $72.6 million in foreign exchange earnings—$67.36 million from international services and $5.24 million from Telebirr’s international remittance services. The company demonstrated fiscal responsibility by paying 23.74 billion ETB in taxes and repaying $15.4 million in foreign loans. As part of its cost optimization strategy, Ethio Telecom’s DO2SAVE initiative saved 3.5 billion ETB, exceeding its target by 44%. The company also made significant strides in cybersecurity, blocking 266,162 attempted cyberattacks through advanced control mechanisms. Its human resource development efforts were notable, with 26,505 employees receiving training, achieving a 93% success rate in training goals—demonstrating its commitment to building a skilled workforce aligned with its growth objectives. On the operations side, Ethio Telecom achieved substantial growth in its subscriber base, reaching 80.5 million users, a 7.9% increase compared to the same period last year. This includes: 77.7 million mobile voice subscribers 77.7 million mobile voice subscribers 43.5 million mobile data and internet users 43.5 million mobile data and internet users 784,100 fixed broadband users 784,100 fixed broadband users 765,600 fixed voice subscribers 765,600 fixed voice subscribers The company’s telecom density in Ethiopia now stands at 72.2%, signaling progress in expanding connectivity nationwide. Ethio Telecom continued investing in infrastructure to enhance service quality and accessibility. The company deployed 202 new mobile stations, bringing its total mobile network capacity to 90.7 million. Its 4G and 5G networks expanded, with 4G services reaching 67 new cities and 5G connectivity arriving in 10 cities. Additionally, the company established 81 rural mobile network sites across 71 woredas, extending services to underserved areas and bridging the digital divide between urban and rural communities. The company’s optical distribution network (ODN) capacity also grew, adding 133,672 new customer connections, bringing the total to 769,932. As part of its Copper Switch-off Initiative, 18,300 customer connections were migrated from copper to fiber, advancing Ethiopia’s digital transformation. During the reporting period, Ethio Telecom introduced 171 new and revamped products and services, including 62 new offerings and 109 upgrades. These innovations aim to enhance customer experience, simplify enterprise operations, and support Ethiopia’s digital economy. The company also expanded its service network by opening 68 new service centers, bringing the total to 1,000—with 513 franchised and 487 company-owned locations. Its distribution network also strengthened, comprising 64 main distributors, 43 virtual top-up distributors, 12,700 sub-distributors, and 290,600 retailers engaged in sales activities. Ethio Telecom remained committed to corporate social responsibility, contributing 287.2 million ETB to education, healthcare, environmental protection, and national projects. Additionally, it planted 446,000 seedlings as part of its Green Legacy program, reinforcing its commitment to environmental sustainability. The company also earned international certifications, including ISO 27001:2022, PCI DSS, and Cloud Security Alliance (CSA) for its Telebirr and Telecloud services, reaffirming its leadership in digital solutions. Ethio Telecom’s impressive performance in the first half of the fiscal year underscores its pivotal role in Ethiopia’s digital transformation. The company’s continued investment in infrastructure, service expansion, and innovation positions it as a driving force in the country’s journey toward a digital economy. With its ongoing contributions to social and economic development, Ethio Telecom remains a key player in Ethiopia’s progress.