Ethiopia to Purchase Six Cargo Ships to Enhance Trade and Investment

Addis Ababa, February 27, 2017– Ethiopia is set to strengthen its maritime transport capacity with the acquisition of six new cargo ships, the Ethiopian Maritime Transport and Logistics (EMTL) has announced. The move is part of the country’s broader strategy to expand its logistics infrastructure and enhance trade efficiency. According to EMTL, two of the six ships have already been purchased and are currently being prepared for commissioning. These vessels are Ultramax dry bulk carriers, each with a carrying capacity of 62,000 tons, and are expected to significantly improve the country’s ability to transport bulk goods such as grain, minerals, and industrial raw materials. Additionally, an ETU container ship with a capacity of 3,000 to 4,000 containers is included in the new fleet. This container ship will enhance Ethiopia’s ability to manage imports and exports, particularly for manufactured goods and agricultural products, which are key drivers of the nation’s economy. The acquisition aligns with the government’s ongoing efforts to modernize Ethiopia’s logistics and transportation sector, a crucial element in improving international trade competitiveness. Ethiopia, a landlocked country, relies heavily on maritime trade through the Port of Djibouti, which serves as its primary gateway for international shipments. Strengthening the national fleet is expected to reduce dependency on foreign shipping lines, lower transportation costs, and improve the efficiency of import and export logistics. The additional ships will also enhance the country’s ability to transport essential commodities and facilitate faster delivery of goods. The remaining four ships are expected to be purchased over the coming years as part of the government’s long-term maritime expansion strategy. The acquisition of new vessels underscores Ethiopia’s commitment to improving its maritime logistics capabilities, supporting industrialization, and fostering economic growth. At present, Ethiopia operates 10 cargo ships, including the Abay II, which has a carrying capacity of 63,000 tons. The rest of the fleet consists of vessels with capacities ranging between 26,000 and 27,000 tons. With the addition of the newly acquired ships, Ethiopia’s shipping fleet will be significantly strengthened, allowing for increased efficiency in handling cargo and boosting the country’s position in regional trade. The expansion of Ethiopia’s maritime transport fleet comes at a time when the government is prioritizing infrastructure development to support its ambitious economic growth agenda. Investments in the shipping industry are expected to contribute to reducing logistical bottlenecks, attracting foreign investment, and supporting the country’s export-driven industrialization efforts. By enhancing its shipping capacity, Ethiopia aims to establish a more self-reliant and cost-effective logistics system, ultimately improving its global trade position and economic resilience.

NBE’s Draft Directive Could Require Insurance Companies to Hold 40% More Capital

Ethiopia’s financial landscape is set to undergo significant changes as the National Bank of Ethiopia (NBE) proposes a new directive aimed at strengthening the capital adequacy framework for the country’s insurance industry. The draft directive, which could affects both local and reinsurance companies, is designed to bolster the financial resilience of these institutions amid growing market uncertainties. The draft directive has introduced stricter capital requirements for all insurance companies and a new framework for assessing capital adequacy ratios (CAR). The policy prescribes varying minimum paid-up capital requirements based on the type of business. Non-life insurance companies must maintain a minimum of Birr 400 million, while reinsurance companies are required to meet a threshold of Birr 500 million. Life insurance companies, on the other hand, must meet a minimum capital requirement of Birr 100 million. The directive further stipulates that insurance companies must maintain a solvency capital requirement (SCR) representing a CAR of 150% and a minimum capital requirement (MCR) of 100%. This means that companies will need to ensure their capital resources consistently exceed the set thresholds to protect policyholders and safeguard their financial health. This new draft directive, Insurance Risk-Based Capital Directive No. SIB/–/2025, underscores the National Bank’s commitment to enhancing the transparency and stability of the Ethiopian insurance sector. It establishes clear guidelines for the licensing and supervision of insurance businesses, reinforcing the importance of financial soundness and proper risk management. The directive emphasizes that it is essential for the NBE to receive relevant, reliable, and timely financial and non-financial information from insurance companies to assess their financial stability, managerial effectiveness, and overall performance on an ongoing basis. The NBE further stresses that ensuring appropriate capital levels is critical not only for the financial health of insurance companies but also for the protection of policyholders. As stipulated by the directive, it is the ultimate responsibility of the Board and Senior Management of each insurance company to ensure that their institutions maintain a capital adequacy level that is commensurate with their risk profiles. The policy holds companies accountable for their own financial strength and stability, requiring proactive measures to meet these heightened capital standards. In a move designed to enhance the sector’s ability to withstand market fluctuations and insurance risks, the directive introduces a two-tier system for capital. The Tier 1 capital represents the highest quality, most loss-absorbent, and permanent form of capital, while Tier 2 capital includes components like fair value reserves and insurance finance reserves. The NBE has laid out clear limits on how much Tier 2 capital can be used to meet both the Minimum Capital and Solvency Capital Requirements. The focus on robust capital allocation is part of a wider effort to cushion insurance companies against a range of risks, including insurance, market, credit, and operational risks. To do so, the policy requires companies to maintain separate capital reserves for various risks, such as fluctuations in premium reserves, claims reserves, and catastrophic risks. The risk-based capital requirement will reflect the nature of these risks, with insurance companies needing to hold capital proportional to the exposure in each area. The new directive also places a stronger emphasis on managing operational, credit, and market risks. For instance, insurance companies will now need to meet specific capital charges for equity, property, and foreign currency risks. This new approach aims to mitigate potential losses resulting from market volatility and counterparty defaults. Additionally, the policy introduces an operational risk capital requirement, reflecting the growing importance of safeguarding against internal disruptions, such as system failures and management errors. The NBE has signaled a zero-tolerance stance for non-compliance. Insurance companies that fail to meet the new capital requirements could face a range of regulatory actions, from mandatory recovery plans to a complete revocation of their operating license. The NBE will regularly assess the financial health of insurance companies, requiring them to submit their Capital Adequacy Ratios within set deadlines to ensure ongoing compliance. The NBE’s directive is a bold and necessary step toward reinforcing the integrity of Ethiopia’s financial sector. By establishing clear capital adequacy requirements, the policy aims to protect both insurers and their clients from financial volatility, helping the sector stay resilient in the face of both domestic and global challenges. The initiative comes at a critical time as the country continues to focus on strengthening its economic framework and ensuring the sustainable growth of its financial institutions.

Commercial Bank of Ethiopia Revises Loan Interest Rates

Addis Ababa, Ethiopia – March 4, 2025 – The Commercial Bank of Ethiopia (CBE) has announced adjustments to its loan interest rates, effective March 7, 2025. The changes are part of broader financial sector reforms aimed at aligning lending practices with market conditions, improving financial inclusion, and ensuring the long-term sustainability of Ethiopia’s banking industry. The revised interest rates apply to a range of loan categories, including commercial, agricultural, residential, and personal loans. The bank states that these adjustments are designed to maintain competitiveness while supporting borrowers across different sectors. The new rates aim to reflect market trends, enhance accessibility, and provide businesses and individuals with more flexible financing options. The CBE has indicated that the interest rate adjustments are part of ongoing efforts to optimize credit accessibility while maintaining financial sustainability. The move is expected to ease borrowing costs for priority sectors, such as agriculture, trade, and housing, while ensuring responsible lending practices. The bank has also highlighted additional measures to improve efficiency, including reducing administrative costs, enhancing digital banking services, and streamlining lending procedures. These steps align with Ethiopia’s broader financial sector reforms, which aim to foster a competitive and modern banking industry capable of attracting local and international investment. Economists have noted that while these adjustments may increase borrowing in key sectors, the impact will depend on market demand and the overall economic climate. The private sector, particularly small and medium-sized enterprises (SMEs), is expected to benefit from lowered lending rates in specific categories, potentially driving business growth and job creation. Ethiopia’s financial sector is undergoing policy shifts to encourage investment and modernize banking operations. The government has been working on various initiatives, including expanding financial access, encouraging digital banking adoption, and opening up the banking industry to foreign investors. The CBE’s interest rate adjustments reflect these broader economic strategies, ensuring that financial services remain adaptable to changing market conditions. With Ethiopia’s banking sector evolving, the role of state-owned banks like CBE remains crucial in facilitating credit access and supporting economic development. Industry experts suggest that further policy reforms and macroeconomic stability will be key factors in determining the long-term impact of these rate adjustments. As financial markets continue to develop, businesses and individuals are encouraged to stay informed on how evolving banking policies affect their financial decisions. The bank encourages customers to visit its branches or official website for detailed information regarding the revised loan terms and conditions. For further updates on Ethiopia’s banking sector and economic developments, stay informed with the latest reports.

New International Convention Center in Addis Ababa Ready for Official Opening Today

Addis Ababa, Ethiopia – The grand opening of the New International Convention Center today marks a major milestone in Ethiopia’s efforts to establish itself as a premier destination for global business events, conferences, and exhibitions. Situated on 40 hectares of prime land, the center is designed to accommodate a diverse range of events, from corporate gatherings to cultural festivals, significantly enhancing the country’s hospitality and tourism sectors. With cutting-edge infrastructure, the center aims to foster both local and international collaboration, offering world-class facilities for those attending major events. It is positioned to become the largest conference facility in Ethiopia and one of the most expansive in East Africa, bolstering the country’s standing in the international events and conventions industry. Key Specifications of the New International Convention Center: The center’s modern infrastructure is paired with a prime location, strategically adjacent to Lemi Park, which offers a serene yet accessible environment for both business professionals and visitors. This proximity to one of the city’s largest public spaces also contributes to the convention center’s role in further enhancing the city’s vibrancy and economic activity. The New International Convention Center is set to host a variety of events, ranging from corporate conferences and international trade fairs to cultural exhibitions and live performances. The flexible design of the venue ensures it can cater to different types of gatherings, with options for both large-scale events and more intimate business meetings. Why This Matters for Ethiopia: The opening of the center is expected to significantly boost Ethiopia’s position in the global event-hosting market. By attracting international conferences and exhibitions, the center will drive tourism, create new business opportunities, and provide a platform for local industries to showcase their products and services. It will also play a crucial role in fostering economic growth, offering a venue that can accommodate both public and private sector events, thereby attracting investors, businesses, and entrepreneurs from around the world. The Mayor’s Office has expressed optimism that the center will become a key asset to Ethiopia’s tourism strategy, facilitating long-term economic benefits through increased international exposure and greater opportunities for collaboration. With its expansive capacity and state-of-the-art facilities, the New International Convention Center is poised to become a flagship venue for the region and beyond, enhancing Ethiopia’s reputation as a leading destination for world-class events. The New International Convention Center is not only a testament to Ethiopia’s growing infrastructure capabilities but also an investment in the nation’s future as a central hub for global business and cultural exchange. The facility is expected to make a lasting impact on both the local economy and Ethiopia’s international standing.

SEZ banking directive in works at NBE

Central bank regulators are working on a directive that would govern licensing procedures for banks looking to open branches inside Special Economic Zones (SEZs). The ‘Licensing and supervision of banking business requirements for licensing a bank branch to operate in SEZs’ directive will require banks to ensure SEZ branches provide forex services. It also sets asset and capital adequacy ratio requirements. Banks must have a liquidity ratio of greater than three points above the minimum threshold set by the National Bank of Ethiopia (NBE) to apply for a permit to open an SEZ branch, while their non-performing loan (NPL) ratio cannot exceed five percent. Following Parliament’s approval of the SEZ Proclamation a few months ago, the National Investment Board, Ethiopian Investment Commission, and the Industrial Parks Development Corporation (IPDC) are working to transform existing industrial parks into SEZs. Parks are subject to stringent capital and size requirements, among others. Officials hope SEZs will offer what industrial parks could not in terms of investment and revenue. Investors operating inside SEZs are entitled to keep 100 percent of the forex they generate, as opposed to 70 percent for investors elsewhere.

Addis Ababa City Administration Introduces New System for VAT Taxpayers to File Monthly Returns

The Addis Ababa City Administration Revenue Bureau has announced the introduction of a new system for over 62,000 VAT taxpayers, designed to enhance VAT service delivery and provide more efficient services. According to the bureau, there are over 62,000 VAT taxpayers in Addis Ababa, and many of them tend to file their returns on the last days of the month. This creates significant pressure on service delivery. Additionally, the existing system has led to difficulties for taxpayers, including penalties due to congestion and internet outages during peak filing times at the end of the month. The bureau also pointed out that the previous system hindered the proper and thorough verification of information provided by VAT registrants, which led to inaccurate decision-making, malpractices, and even fraud. To address these challenges, the new VAT filing schedule will take effect starting February. Under the new system, VAT registrants—whether individuals or organizations—will file their returns according to the following schedule based on the first letter of their names: In the 2025 fiscal year alone, the Addis Ababa City Administration Revenue Bureau registered 8,540 businesses that were previously not required to register for VAT.

Ethiopia’s Bitcoin Mining Boom: The Cheapest in the World, But at What Cost?

The amount of energy required to mine one Bitcoin remains high, increasing costs depending on local electricity prices. On average, mining 1 BTC consumes around 6,400,000 kilowatt-hours (kWh) of electricity. This is equivalent to: Bitcoin mining has become more energy-intensive over time, particularly after the 2024 halving, which reduced the mining reward and increased competition. This means that cost-efficient electricity is crucial for miners to remain profitable. Ethiopia’s $1,986 per Bitcoin mining cost is among the lowest in the world, thanks to hydroelectric power and government-controlled energy prices. This makes Ethiopia an attractive destination for Bitcoin miners, especially when compared to countries with high electricity costs. For context: Countries like Ireland and Belgium face high Bitcoin mining costs due to several factors: While Ethiopia offers some of the lowest mining costs, the country may not be fully benefiting from its natural resources. To maximize benefits, Ethiopia could explore: While Ethiopia enjoys some of the lowest mining costs, profitability is not just about electricity prices. The global landscape is shifting as miners relocate to cheaper regions. Ethiopia is one of the most profitable places in the world to mine Bitcoin, thanks to low electricity costs driven by renewable energy sources. However, the country must carefully consider whether its cheap energy policies are truly benefiting its economy. To maximize national benefits, Ethiopia should consider implementing mining taxes, regulating the industry, and ensuring miners reinvest locally. Otherwise, the country risks missing out on significant economic opportunities while providing ultra-low-cost energy for external Bitcoin profits. This study used electricity cost data from globalpetrolprices.com (December 2023), as well as mining hardware efficiency data from the CoinWarz Bitcoin calculator. The average mining electricity consumption was calculated using 8 high-performance mining rigs, considering an estimated mining difficulty level of 89,471,664,776,971.

There Are 616 Ethiopian Restaurants in the U.S : A State-by-State Breakdown

Ethiopian cuisine has firmly established its presence in the United States over the past few decades. Known for its flavorful wot (stews) served atop injera – a tangy, spongy flatbread made from the grain teff that doubles as both plate and utensil 0 – Ethiopian dining offers a unique communal experience. Diners traditionally share a large platter, tearing off pieces of injera to scoop up bites of richly spiced meats, lentils, and vegetables. The first Ethiopian restaurant in the U.S. opened in 1966 in Long Beach, California 1, marking the beginning of Americans’ introduction to this ancient cuisine. Since then, Ethiopian restaurants have spread to numerous cities across the country, becoming beloved establishments in many urban dining scenes. The growth of Ethiopian restaurants in America closely follows patterns of immigration and cultural exchange. Significant Ethiopian immigration began in the 1970s, especially after political upheavals in Ethiopia, leading to growing Ethiopian-American communities in cities like Washington, D.C., Los Angeles, and New York 23. Washington, D.C. and its surrounding areas in Virginia and Maryland now host the largest Ethiopian community outside of Africa 4, and Ethiopian cuisine has been a fixture of the D.C. dining scene since the late 20th century 5. As these communities grew, enterprising restaurateurs opened eateries to serve familiar foods to the diaspora and introduce the cuisine to curious locals. What started as a handful of restaurants in the 1960s and 1970s has expanded dramatically: a few years ago there were roughly 350 Ethiopian and Eritrean restaurants nationwide 6, and recent counts indicate there are about 616 Ethiopian restaurants across the United States as of January 2025 7. This represents a remarkable rise in visibility, although Ethiopian cuisine still remains less ubiquitous than some other international cuisines (for context, those ~350 Ethiopian restaurants were fewer than the number of Chinese restaurants in New York City alone) 8. The expansion continues steadily, with more cities each year getting their first Ethiopian restaurant 9 as awareness of the cuisine spreads. Ethiopian restaurants are not evenly distributed across the U.S. — some states boast dozens of establishments, while others have none. The table below provides a state-by-state breakdown of the number of Ethiopian restaurants in each state (and the District of Columbia). This data is current as of early 2025 and illustrates where Ethiopian cuisine has gained the strongest foothold. Notably, a handful of states (marked with 0) do not yet have any Ethiopian restaurants, highlighting areas where enthusiasts still have to travel out of state to enjoy this cuisine 11. Source: Aggregated counts of Ethiopian restaurants by state, January 2025 .Note: Seven states – Arkansas, Delaware, Montana, New Hampshire, Rhode Island, West Virginia, and Wyoming – have no Ethiopian restaurants as of this data 13. As the table shows, Ethiopian restaurants thrive in certain key states and metro areas. California leads by sheer number, with about 88 Ethiopian restaurants spread across its major cities (from Los Angeles to the Bay Area) 14 . However, the highest concentration is arguably in the Washington, D.C. metropolitan region. The District of Columbia alone counts 33 Ethiopian restaurants 15, and when combined with its neighboring states (Virginia has 50 and Maryland 40) 16 , this area is a true stronghold of Ethiopian cuisine. This correlates with the region’s large Ethiopian immigrant population – the D.C. area is home to the largest Ethiopian community outside of Ethiopia itself 17 , often earning parts of D.C. nicknames like “Little Ethiopia.” Other states with notably high counts include Texas (~55 restaurants, anchored by communities in cities like Dallas and Houston) 18 , Washington State (43, mostly in Seattle and vicinity) 19, and Georgia (31, largely in the Atlanta area) 20 . New York also boasts around 31 Ethiopian restaurants 21, primarily in New York City, reflecting the diverse dining scene of the metro area. Several other pockets of the country have become hubs for Ethiopian food. For instance, Minnesota (30 restaurants) 22 has a significant Ethiopian and East African community in the Minneapolis–Saint Paul area. Nevada, despite its smaller population, hosts 17 Ethiopian restaurants 23 — many of them in Las Vegas, which is known to have a surprisingly vibrant Ethiopian dining scene 24. States like Colorado (29) and Oregon (12) have seen growth as cities like Denver and Portland embrace the cuisine. In general, states with larger Ethiopian-American populations or cosmopolitan food cultures tend to have more restaurants. Besides the D.C. area and California, other notable Ethiopian cuisine hubs include the Seattle-Tacoma region, the greater Los Angeles area, the Dallas-Arlington area, and the Atlanta metro 25 – all places where Ethiopian communities and adventurous eaters support a thriving restaurant scene. The rising popularity of Ethiopian restaurants in the U.S. can be attributed to several factors. Food lovers are drawn not only to the delicious flavors but also to the distinctive dining style and cultural experience that Ethiopian cuisine offers. Below are some key reasons why Ethiopian food has been gaining a wider audience: Another factor is the increasing curiosity and openness of American diners to try global cuisines. As Ethiopian restaurants win accolades in local food communities (some have even been featured on food travel shows or earned top ratings on review sites), more people are encouraged to give the cuisine a try. Word-of-mouth and cultural festivals have also introduced Ethiopian food to new audiences. Many first-timers quickly become fans after experiencing the coffee ceremonies, the unique spices, and the warm hospitality often found in Ethiopian establishments. Even with the growing popularity, Ethiopian restaurants in the U.S. face certain challenges as they continue to flourish: Looking ahead, the outlook for Ethiopian cuisine in the U.S. is optimistic. The steady growth in the number of restaurants indicates a widening customer base and increasing interest. As noted, more cities each year are getting their first Ethiopian restaurant, filling gaps on the American culinary map 33. This trend suggests that the cuisine is gradually spreading beyond the initial hubs. Additionally, Ethiopian restaurateurs and second-generation Ethiopian Americans are adapting and innovating to broaden the cuisine’s appeal. In Washington D.C., for example, some have launched fast-casual Ethiopian eateries aimed at making the food more accessible to a general audience. These modern approaches retain traditional flavors but offer options like injera rolled up as wraps, or meals served with alternate bases like rice and bread, and provide cutlery for those who prefer it. Such innovations can introduce Ethiopian food to customers who might be hesitant about the traditional style, without losing the essence of the cuisine. Furthermore, the cultural significance of Ethiopian cuisine – from the ritual of the coffee ceremony to the idea of gursha (feeding someone else with your hand as a sign of friendship) – provides rich storytelling opportunities that restaurants can use to engage diners. Many Ethiopian restaurants double as community centers for immigrants and a bridge for cultural exchange with Americans. This dual role helps build a loyal patronage that extends beyond just the food. In terms of future outlook, expect to see Ethiopian cuisine becoming an even more familiar part of the American food landscape. Key metropolitan areas will likely continue to support a high concentration of Ethiopian eateries, and we may see more Ethiopian food trucks, fusion concepts (imagine Ethiopian spices with Western dishes), and inclusion of Ethiopian dishes on mainstream restaurant menus. The seven states that currently lack Ethiopian restaurants are potential frontiers – as interest grows, entrepreneurs may seize those opportunities. With its bold flavors, healthy ingredients, and communal charm, Ethiopian cuisine is well-positioned to captivate more Americans in the years ahead. In short, what started as a niche offering mainly for diaspora communities has blossomed into a cuisine that enriches the diverse tapestry of American dining, with a promising road forward.

National Bank of Ethiopia Announces Exchange Rate of 135 Birr per USD Following Special ForEx Auction

Addis Ababa, Ethiopia – The National Bank of Ethiopia (NBE) has announced that the average exchange rate for the US dollar reached 135.6185 Birr following a special foreign exchange auction. This latest round of bidding saw the participation of 27 commercial banks, reflecting significant market engagement in the central bank’s ongoing efforts to regulate the forex market. The National Bank emphasized the high level of participation in the auction, noting that this mechanism is part of a broader strategy aimed at enhancing foreign currency availability and ensuring exchange rate stability. By allowing banks to bid competitively for foreign exchange, the auction process is intended to create a more transparent and market-driven forex system. The NBE stated that it will continue to conduct foreign exchange auctions as necessary, adjusting the frequency and volume of transactions based on market conditions and the country’s broader monetary policy objectives. This auction marks the second round of foreign exchange sales under the current system since Ethiopia introduced macroeconomic reforms on July 22, 2016. The reforms were designed to liberalize the forex market, address foreign currency shortages, and curb inflationary pressures. In the first round of forex auctions, which took place earlier, the average exchange rate for the US dollar was 107.9 Birr, with 27 banks participating—the same level of engagement observed in this latest auction. The sharp increase in the exchange rate from the initial auction reflects ongoing adjustments in Ethiopia’s currency valuation, influenced by both domestic economic factors and global market trends. The NBE’s auction-based forex allocation system is part of its larger policy framework aimed at balancing the demand and supply of foreign currency. Ethiopia has faced chronic foreign exchange shortages in recent years, driven by trade imbalances, high external debt obligations, and limited foreign direct investment (FDI) inflows. Experts suggest that the rise in exchange rates may indicate a shift towards a more flexible exchange rate policy, possibly inching closer to a market-determined system. However, the central bank remains cautious, aiming to prevent excessive volatility that could fuel inflation and disrupt financial stability. As the National Bank continues to fine-tune its forex policies, businesses and financial institutions will closely monitor upcoming auctions, which could signal further adjustments in exchange rate policies and economic reforms. The bank reiterated its commitment to maintaining price stability and sustainable economic growth through strategic forex management. With global economic conditions and local macroeconomic trends in flux, the Ethiopian economy is at a critical juncture, where exchange rate policies will play a pivotal role in shaping investment, trade, and overall economic performance in the coming months.