• On Tuesday, May 27, BIFA and EFFSAA formalized a Memorandum of Understanding (MoU) aimed at facilitating knowledge and experience sharing
• The agreement is taken as a significant step towards transformative collaboration in Ethiopia’s freight and logistics industry.
• The agreement outlines collaboration in specialized training, a Multimodal Transport Operator (MTO) course, a UK knowledge exchange mission, and support for EFFSAA’s institutional development.
• Both parties will also help organize the FIATA 2027 World Congress in Ethiopia.

• Afreximbank conducted a two-day roadshow in Addis Ababa, its second in four years, on June 2-3, 2025 at Hayat Regency Hotel.
• Ethiopia has accessed only USD 2 billion in financing - significantly less than other key members
• The Group Managing Director for Client Relations at Afreximbank said, "we can process and disburse at least USD 1 billion over the next 12 months to both the public and private sectors."
• Ethiopia has been a founding member and shareholder of Afreximbank since its inception in 1993, with key stakeholders including the National Bank of Ethiopia, the Commercial Bank of Ethiopia, and the Ethiopian Insurance Corporation.

• CBE is now offering an additional 10 birr bonus per dollar on all remittance earnings
• This effectively brings the total payout to 141 birr per dollar, making CBE the most competitive official option in today’s forex market.
• Private exchange shops like Ethiopia Forex are offering up to 149 birr, while the black market rate has surged to around 157 birr

• The company unveiled its AION Y and ES9 models
• The Ethiopian government has already banned the production, import, and assembly of gas-powered cars
• more than 100,000 EVs are currently on the road across Ethiopia, which aims to have up to 500,000 EVs in the next 10 years
• GAC, through its partner Huajian Group, will sell electric vehicles, establish charging infrastructure, and initiate local assembly operations in Ethiopia

• NBE has increased the import advance limit from 5,000 USD to 50,000 USD per import transaction
• NBE has improved the limit for Ethiopians who travel abroad to have 10,000 USD for personal travelers and 15,000 USD for business travelers; and these allowances can be taken by cash or by debit card
• Also, effective May 26th, 2025, all bank charges and fees related to the purchase of foreign exchange - for import of goods, service payments, or cash purchases - shall not exceed 4%.
• Also, starting in June 2025, the forex related fees of all banks will be transparently disclosed to the public on a regular basis on the NBE website
• YOU CAN DOWLOAD THE FULL FILE FROM NBE AT THE LINK BELOW

• Gulf Ingot has established a presence in Dire Dawa, a major commercial hub near the Djibouti border, as well as in Addis Ababa.
• It has branches Djibouti, Russia, Turkey, and the UAE, they are constructing a five-hectare dry port in Dire Dawa and operate a transport fleet of over 350 trucks.
• The six newly licensed operators are Gulf Ingot, Panafric Global, Tikur Abay Transport, Cosmos MTO, Ethio-Djibouti Railway Standard Gauge Share Company (EDR), and ESLSE.
• Cosmos MTO is a joint venture between the Oromia region’s Geda Transport and Tradepath International.
• Panafric Global, has strengthened its position by collaborating with renowned businessman Belayneh Kinde.

• ‘Zemen Gebeya’ brings together consumers, vendors, and delivery services, much like Amazon or Alibaba.
• It is equipped with a merchant portal, logistics management system, and a system administration portal.
• So far, 42 partner businesses and logistics service providers have registered
• Payments for Zemen Gebeya are made exclusively through the Telebirr application

• DEIC to take control of Bishoftu Automotive Engineering Industry and High Tech Engineering, both of which were previously under EEG.
• When the Council of Ministers established the Corporation in 2020, the rights and obligations belonging to Gafat Armament, Homicho Ammunition, Dejen Aviation Engineering Industries, and a fuel and propellant processor were transferred to it.

• Charging equipment for electric vehicles will be exempt from tax
• The draft policy widens that tax gap by imposing an additional 20% excise tax on every new passenger car or light commercial vehicle that lands in CBU at the port
• Importers will also have to present emissions and road-worthiness certificates before shipment
• Ministry wants to close another gap between consumers and lenders by introducing an asset-based vehicle loan (car as collateral)
• Multiverse Enterprise Plc teaming up with the Defense Engineering Industry Corporation to assemble and finance about 5,000 diesel and electric taxis.
• Commercial Bank of Ethiopia (CBE) endorsed the plan, earmarking 17% of a 35-billion-Br fund for down payments.
• Multiverse wants to swap 15,000 cabs and claims to have supplier credit in forex.
• The draft’s export section eyes the African Continental Free Trade Area

• The CCCA launches with 15 founding members representing key sectors such as agriculture, construction, manufacturing, telecommunications, energy, and healthcare, with plans to expand membership across both traditional and emerging industries
• China’s recent move to exempt imports from 33 least-developed African countries from tariffs was highlighted as a concrete example of its commitment to open markets and mutual benefit.

• While the gap between the official and black-market rates has narrowed from over 100% to around 8%, the rates should be nearly identical
• Currently, many banks impose service charges exceeding 10% on forex transactions to offset losses. While banks primarily earn from interest rather than FX dealings, these heightened fees reflect efforts to compensate for diminished assets.
• With remittances and export revenues flowing in, banks can rebuild their forex assets over time, it is suggested.

• The facility, approved under the AfDB’s Transaction Guarantee Product, will allow Dashen Bank to issue letters of credit and other trade instruments backed by the AFDB’s full risk coverage.
• The guarantee aims to mitigate counterparty risk for international confirming banks—many of which have retreated from Ethiopian exposure in recent years—while enabling Dashen to support importers and exporters with improved confidence.
• The facility also supports Ethiopia’s aspirations under the African Continental Free Trade Area (AfCFTA), where improved financial intermediation is seen as key to unlocking intra-African commerce

• It proposes a legal framework that enables foreign ownership of real estate while preserving citizens’ rights to land use.
• The measure is designed to attract foreign capital, stimulate the housing market, and generate employment
• The draft proclamation must be legislated by the parliament taking into effect. 

• Key conditions for disbursement included the government issuing a 900 billion birr bond, which is a prerequisite for CBE to receive USD 250 million from the World Bank
• The Financial Sector Support Program (FSSP) is a three-year initiative, with the first major disbursement expected by December 2025. By the end of the year, the Commercial Bank of Ethiopia (CBE) could receive up to USD 550 million, contingent on meeting additional conditions met by it and other entities such as the NBE and the Ethiopian Investment Holdings (EIH)
• The state-owned DBE is also expected to secure some of the USD 700 million in funding approved under the FSSP

The Chinese car manufacturer BYD has officially entered the Ethiopian market with the introduction of five battery electric vehicle (BEV) models, including the compact hatchback Seagull and the Tang SUV, in collaboration with its Ethiopian distributor, MOENCO, one of the largest automotive distributors and retailers in the country, representing over 20 brands, including Toyota.

• Earlier this year, the cap was increased 14% to 18% due to declining inflation, tight monetary conditions, and improved supply-side factors.
• Prior to the cap, annual credit growth in the banking sector averaged over 25%, with some major banks exceeding 30%.
• As part of the reforms, the government will introduce market-oriented Treasury bonds to replace the current system, which requires banks to purchase bonds at a fixed interest rate of 9%. This directive, implemented in November 2022 will be repealed by June 2025.

• Officials want to see ESX host at least 90 initial public offerings (IPOs) in the coming years. 
• Shares, equity, and debt securities will be traded on the platform. Banks, state-owned enterprises (SOEs) and other eligible firms are eligible to list.
• Wegagen Bank has become among the first to offer equity on ESX
• Ethio telecom’s 10 percent stake offering is slated to go live on ESX, while at least four other SOEs under the Ethiopian Investment Holdings (EIH) are also expected to list.
• The banking industry is likely to be the first to brave the new market. An estimated 400,000 shareholders hold equity in the country’s commercial banks, and they will now be able to sell and buy shares on ESX at any time.
• Companies also will be able to issue debt securities, which so far have been limited to treasury bonds issued by the National Bank of Ethiopia (NBE).

- The service, set to begin on February 24, 2025, is also being rolled out in Morocco, Egypt, Tanzania, Algeria, and South Africa.

- The company was established in 2010 by Alibaba and expanded its business-to-consumer services to Ethiopia in August 2024. It sells over 200 million products on its platform worldwide.

- However, questions remain about the payment settlement mechanism, as regulators at the National Bank of Ethiopia (NBE) say key details are still in the air. While there has been talk of a currency swap agreement between Ethiopia and China, it has yet to be finalized.

- Featuring three charging modalities, the station can simultaneously charge up to 32 electric vehicles, ensuring convenience and efficiency for drivers

- The chargers are designed for efficiency, capable of replenishing batteries at a rate equivalent to traveling 1 km per second, depending on the vehicle’s capabilities.