Ethiopia Plans Bank Lending Law for Manufacturing Credit

• 96 product categories are targeted under Ethiopia’s import-substitution manufacturing agenda.
• Prime Minister Abiy Ahmed announced legislation requiring banks to allocate more credit to manufacturers.
• Manufacturing firms face persistently low lending, according to findings cited by authorities.
• Public and private lenders will be covered by the proposed manufacturing credit law.
• Banks may face new sector-lending obligations tied to industrial expansion.
• Manufacturers are encouraged to enter African markets under the African Continental Free Trade Area framework.
• Manufacturing finance is becoming a policy priority for import substitution and regional market entry.

Market Impact
Manufacturing credit allocation could shift bank lending toward industrial borrowers.
Import substitution across 96 categories may influence sourcing and domestic supply chains.
AfCFTA market entry links manufacturing finance with regional trade expansion.
Public and private lenders face policy pressure on sector-specific credit flows.

Key Numbers

• 96 product categories — Import-substitution target — Domestic manufacturing priority

• Within weeks — Expected legislation timeline — Near-term policy shift

• Public and private lenders — Banks covered by proposed law — Wider credit-allocation reach

Business Signal:
CEOs, investors, and operators should prepare for manufacturing-focused credit rules that may reshape lending access, sourcing, and regional trade strategy.

• 20% tariff increase applies to Ethiopian Airlines cargo rates for perishable exports.
• Ethiopian Airlines raised prices as fuel, insurance and operational costs increased.
• Horticulture exporters face higher air-freight costs on perishable shipments.
• Dubai International Airport and Frankfurt Airport routes are affected.
• Smaller producers face pressure from higher logistics costs and supply-chain constraints.
• Exporters reliant on air freight may see tighter margins.
• Geopolitical strain is increasing cost exposure for Ethiopia’s export logistics.

Market Impact:
The tariff increase raises the cost base for Ethiopia’s perishable-export sector, especially horticulture shipments that depend on fast air links to international markets.

For exporters, the immediate issue is margin pressure. Higher cargo costs may force companies either to absorb the increase or pass it to buyers, testing price competitiveness in destination markets.

The move also signals wider exposure in Ethiopia’s export model: logistics costs are increasingly tied to fuel, insurance and geopolitical risk, not only production efficiency.

Key Numbers:

• 20% — Cargo tariff increase — Raises export logistics costs

• 2 airports — Dubai and Frankfurt routes mentioned — Shows affected export corridors

• 3 cost drivers — Fuel, insurance and operations — Explains pricing pressure

• Perishable exports — Cargo category affected — Hits horticulture shipments

Business Signal:
Ethiopian exporters face a sharper logistics-cost environment where geopolitical pressure is moving directly into market pricing.

• Br195.4 billion manufacturing output followed sector growth rising from 4.8 percent in 2022 to 10.7 percent in 2025.

• PMO says Made In Ethiopia addressed structural bottlenecks through integrated leadership, policy reforms, and manufacturing competitiveness measures.

• Raw material supply projections rose from 29 million tons to 76 million tons, averaging 15 million tons annually.

• 3.4 GW electric power was commissioned for new investments over four years, supporting industrial expansion.

• Br50 billion credit was projected for SMEs, while large manufacturer financing increased to Br262 billion.

• $2.28 billion foreign currency was channeled to major producers, raising average capacity utilization from 47 percent to 67 percent.

• Import substitution saved over $4.85 billion in foreign currency during 2018’s first nine months.

Market Impact:
Ethiopia’s manufacturing drive is shifting from policy ambition to measurable industrial expansion, with higher output, improved capacity utilization, and larger credit flows supporting producers.

The figures point to a stronger import-substitution agenda, with foreign currency savings and rising local market share becoming central to Ethiopia’s industrial strategy.

For business leaders, the main signal is a manufacturing sector receiving coordinated support through land, power, credit, forex access, and investor attraction.

Key Numbers:

• Br195.4 billion — Manufacturing output — Indicates sector expansion.

• 10.7 percent — Manufacturing growth in 2025 — Shows acceleration from 2022.

• $4.85 billion — Import-substitution savings — Reduces foreign currency pressure.

• $2.28 billion — Forex channeled to major producers — Supports industrial capacity.

• 2,800+ investments — Attracted over four years — Signals investor pipeline growth.

• 18,000+ SMEs — Small and medium industries established — Expands domestic production base.

• 993 factories — Closed factories revived — Restores productive capacity.

Business Signal:
Ethiopia is using manufacturing policy, forex allocation, credit expansion, power supply, and land delivery to deepen domestic production capacity.

•USD 14.5 billion in import bills was saved through locally manufactured goods over four years.
• Prime Minister Abiy Ahmed praised import substitution at the fourth Made in Ethiopia Expo.
• USD 3.5 billion was reportedly saved annually over the past four years.
• Ethiopia’s annual import bill has hovered near USD 17 billion for several years.
• USD 8.3 billion in export revenue was reported last year, Ethiopia’s highest ever.
• Manufacturing exports reached only USD 97 million in the first quarter of the fiscal year.
• Close to 1,000 previously shuttered factories resumed operations during the period.

Market Impact:
Ethiopia’s import substitution drive is being framed as a tool for reducing external payment pressure, with the government citing USD 14.5 billion in avoided imports over four years. For business leaders, the key issue is whether revived factory activity can translate into sustained output, lower import dependence, and stronger domestic supply capacity.

The trade balance remains the central pressure point. The article notes that annual imports remain near USD 17 billion, while last year’s export revenue reached USD 8.3 billion, leaving a trade deficit typically above USD 10 billion.

Manufacturing remains the weak link in the export story. The sector generated only USD 97 million in first-quarter exports despite access to foreign exchange for machinery, inputs, and spare parts, underlining the gap between industrial policy ambition and export performance.

Key Numbers:

• USD 14.5 billion — Import bills saved over four years — Measures scale of import substitution claim

• USD 3.5 billion — Annual savings over four years — Indicates recurring import-reduction target

• USD 17 billion — Ethiopia’s annual import bill — Shows external payment pressure

• USD 8.3 billion — Last year’s export revenue — Marks Ethiopia’s highest reported export figure

• USD 97 million — First-quarter manufacturing exports — Shows limited export contribution

• 1,000 factories — Previously shuttered factories reportedly resumed operations — Signals industrial capacity recovery

• May 3, 2026 — Fourth Made in Ethiopia Expo opening — Marks policy messaging event

Business Signal:
Ethiopia’s import substitution policy is gaining political momentum, but manufacturing’s low export contribution remains the main test for industrial credibility.

• 23-year WTO accession bid has reached a “critical juncture,” according to Trade Minister Kassahun Gofe.
• Fuel-powered vehicle imports were restricted in early 2024 to support Ethiopia’s EV transition.
• Ministry of Finance and stakeholders may propose taxation to discourage fuel-car imports.
• Less than 10 bilateral WTO accession agreements remain outstanding.
• Ethiopia is liberalizing import, export, wholesale, and retail trades to foreign participation.
• Customs valuation reform and expanded foreign currency accounts are part of accession measures.

Market Impact:
Ethiopia’s possible reversal of fuel-powered vehicle import restrictions signals a policy adjustment driven by WTO accession requirements rather than a full retreat from the EV transition. The government is positioning import liberalization alongside fiscal and environmental tools that could preserve pressure against fuel-car imports. 

For importers, dealers, logistics operators, and vehicle buyers, the key issue is not whether the ban is lifted, but what replaces it. Taxation, customs duties, and future Ministry of Finance measures could determine whether fuel vehicles become commercially viable or remain technically possible but financially discouraged. 

The wider accession package points to broader market opening: foreign participation in trade sectors, SOE governance reform under Ethiopian Investment Holdings, foreign currency account expansion, and customs valuation changes. These reforms could reshape competition, pricing, and investment access across Ethiopia’s business environment. 

Key Numbers:

• 23 years — Ethiopia’s WTO accession bid — signals prolonged reform pressure

• Early 2024 — fuel-powered vehicle import restriction — marks EV policy shift

• Less than 10 — outstanding bilateral agreements — shows accession progress

• 2003 — Ethiopia’s formal WTO accession request — indicates long negotiation cycle

• September 2025 — last working party meeting — marks recent negotiation reference point

Business Signal:
Ethiopia is preparing to trade hard import bans for WTO-compatible market controls, shifting business risk from prohibition to taxation, customs, and regulatory costs.

• April 30, 2026 Binance suspended all Ethiopian Birr crypto trading services
• Binance removed Birr trading pairs and fiat-crypto transactions from its platform
• Ethiopian users lose direct Birr-to-crypto conversion access within Binance ecosystem
• Suspension cuts a digital channel linking Ethiopia to global crypto liquidity flows
• Birr-based crypto inflows and outflows face disruption affecting informal FX pathways
• Move reflects constraints on integrating Ethiopian banking system with crypto platforms
• Users must shift to alternative currencies or platforms for continued crypto trading access

Why It Matters:
The suspension removes a functional bridge between Ethiopia’s domestic currency and global crypto markets. This narrows alternative FX channels and may increase pressure on informal currency mechanisms while reinforcing financial system isolation.

Key Numbers:

• April 30, 2026

• 1 currency affected (Ethiopian Birr)

• Br1.1 trillion revenue collected by Ministry of Revenue in nine months.
• Ministry of Revenue reported collections and flagged tax-to-GDP ratio gap.
• Revenue growth strengthens government fiscal capacity and budget financing.
• Tax collection linked to import activity and customs-related revenue streams.
• Higher revenue supports domestic financing, reducing reliance on external borrowing.
• Structural gap in tax-to-GDP ratio highlights limited tax base expansion.
• Compliance gaps and informality signal risk to sustained revenue growth.

Why It Matters:
The scale of revenue collection indicates improving fiscal mobilization, but the tax-to-GDP gap points to structural weaknesses in Ethiopia’s tax system. Sustained fiscal stability will depend on expanding the tax base rather than relying on cyclical or trade-linked revenues. This tension affects budget financing, inflation management and borrowing needs.

Key Numbers:

• Br1.1 trillion revenue collected

• 9-month reporting period

• 1 tax-to-GDP structural gap identified

• Br2.1 trillion total deposits reported by Commercial Bank of Ethiopia after nine months.
• Br493.7 billion deposit increase recorded during the nine-month period.
• Commercial Bank of Ethiopia disclosed deposit growth in latest financial update.
• Deposit expansion strengthens domestic liquidity across Ethiopia’s banking system.
• Higher deposits support lending capacity and credit expansion to economic sectors.
• Growth reflects increased savings mobilization and banking sector penetration.
• Rising deposits signal potential inflationary liquidity pressure if credit accelerates.

Key Numbers:

• Br2.1 trillion total deposits

• Br493.7 billion increase in nine months

• 9-month reporting period

• 5,535 Kilograms of gold delivered to National Bank of Ethiopia from Gambella.
• Output increased by more than 1,278 kilograms year-on-year.
• National Bank of Ethiopia received gold under domestic collection program.
• Increased gold supply supports Ethiopia’s foreign exchange reserve accumulation.
• Domestic sourcing reduces reliance on external gold inflows and informal channels.
• Policy efforts target formalization of artisanal and regional gold production.
• Rising output signals expansion potential in Ethiopia’s mining export base.

Why It Matters:
The year-on-year increase is the real signal, not just the delivery volume. It indicates improved capture of domestic gold into formal channels, directly supporting foreign exchange reserves. For Ethiopia, scaling this trend is one of the few immediate levers to ease structural FX shortages.

Key Numbers:

• 5.5 tonnes gold delivered

• +1,278 kilograms year-on-year increase

• 12% global commodity price decline projected in 2025, followed by 5% decline in 2026.
• World Bank warned fertilizer and gold prices may remain above 2015–19 averages.
• Ethiopia remains exposed through fuel, fertilizer and food import dependence.
• Import cost volatility affects trade balances, logistics costs and supply-chain planning.
• Commodity shocks may pressure foreign exchange demand and inflation management.
• World Bank links price risks to geopolitical shocks and supply disruptions.
• Lower global prices offer opportunity if Ethiopia improves import-cost transmission.

Why It Matters:
The warning underscores Ethiopia’s vulnerability to external price shocks despite projected commodity easing. For an import-dependent economy, the issue is not only price levels but transmission into fuel costs, fertilizer inputs, inflation and foreign exchange demand. The policy challenge is whether lower global prices translate into domestic relief before new supply shocks emerge.

Key Numbers:

• 12% projected global commodity price decline in 2025

• 5% projected decline in 2026

• 2015–2019 reference average for fertilizer and gold prices

• 2-year outlook covered in World Bank projections

• 40 bulk shipping units deployed under Ethiopia-Djibouti trade logistics rollout. 
• Ethiopian and Djiboutian authorities launched the bulk cargo initiative for corridor efficiency. 
• Rollout targets reduced cargo delays on Ethiopia’s Djibouti trade route. 
• Bulk handling expansion supports import logistics and dry cargo supply-chain movement. 
• Lower logistics friction may reduce trade costs and pressure on foreign exchange outflows. 
• Initiative signals structural shift toward higher-capacity corridor freight handling.
• Execution risk remains tied to corridor throughput and port-side coordination. 

Why It Matters:

Key Numbers:

• 40 bulk shipping units deployed 

• More than 90% of Ethiopia trade linked to Djibouti corridor 

• Up to 49% foreign ownership proposed in Ethiopian insurance companies. 
• National Bank of Ethiopia (NBE) released draft proclamation proposing foreign insurer participation. 
• Draft proposes independent insurance regulator separate from National Bank supervision. 
• Foreign entry may expand reinsurance access, risk capacity and sector capital flows. 
• Proposal may support foreign currency inflows through insurance-sector investment. 
• Draft introduces regulatory sandbox and takaful framework under proposed reforms. 
• Liberalisation signals competition pressure and consolidation risk for domestic insurers. 

Why It Matters:

Key Numbers:

• 49% proposed foreign ownership cap 

• Daily diesel supply restored to 9 million liters from 4.5 million liters. 
• Ministry of Finance Ethiopia announced restoration; Finance Minister Ahmed Shide confirmed implementation. 
• Diesel transport from Djibouti to Addis Ababa began today; regional distribution starts tomorrow. 
• Gasoline and jet fuel supplies remained at previous levels during diesel disruptions. 
• Supply restoration supports transport and logistics activity affected by reduced diesel availability. 
• Policy reverses Middle East conflict-related supply cuts and restores pre-war fuel distribution levels.
• Lower diesel shortages may ease freight bottlenecks and reduce operational pressure across supply chains. 

Why It Matters:

Key Numbers:

• 9 million liters daily diesel supply restored 

• 4.5 million liters reduced supply level during disruptions 

• 50% supply reduction during the disruption period 

• Distribution to regions begins tomorrow 

• Alecto began first diamond drilling at Wayu Boda, targeting deeper gold mineralization zones.
• Initial program follows trenching and reverse circulation results at Wayu Boda project.
• Wayu Boda drilling advances Ethiopia’s upstream mineral exploration pipeline.
• Gold exploration activity may support future export revenue and foreign exchange inflows.
• Alecto’s program strengthens mining-sector investment signals in Ethiopia’s resource economy.
• Project development may affect supply chains linked to drilling services and mining inputs.
• Exploration results remain a resource-risk indicator for future commercial development.

Why It Matters:

Key Numbers:

• First diamond drilling program launched

• Wayu Boda gold project targeted

• 2021 Capital Markets Proclamation underpins CIS directive finalized by Ethiopian Capital Market Authority. 
• Directive includes Real Estate Investment Funds structure within Ethiopia’s collective investment framework. 
• ECMA completed consultation process after September 16, 2025 stakeholder review process.
• Directive establishes rules for pooled investment products, fund governance and investor participation. 
• Capital market framework may expand domestic savings mobilization and support new financial intermediation channels. 
• Real estate funds create institutional pathway for property-linked capital formation in Ethiopia. 
• Directive signals pipeline opportunity for asset managers, issuers and future market product expansion. 

Why It Matters:

Key Numbers:

• 2021 Capital Markets Proclamation

• September 16, 2025 public consultation

• 1 finalized CIS Directive

• 1 Real Estate Investment Fund structure included

• Three-year WTO programme covers 5 African countries through ePing SPS & TBT platform. 
• Standards and Trade Development Facility funds regulatory transparency programme for governments, exporters and development partners. 
• Kenya, Namibia, South Africa, Tanzania and Uganda participate; Ethiopia excluded from initial rollout. 
• Platform expands access to real-time sanitary, phytosanitary and technical trade regulations. 
• Export compliance visibility may reduce border delays, documentation frictions and trade costs. 
• Digital regulatory transparency may support customs modernization and strengthen regional trade systems.
• Ethiopia faces opportunity to align exporters with emerging digital compliance infrastructure. 

Why It Matters:
The initiative signals growing institutional emphasis on digital trade governance as a competitiveness tool, not merely a compliance function. For Ethiopia, where export diversification and trade facilitation remain strategic priorities, the spread of digital notification systems could raise pressure to modernize regulatory transparency infrastructure. Over time, such systems may affect border efficiency, exporter costs and participation in digitally enabled regional trade.

Key Numbers:

• 3-year programme

• 5 African countries

• 1 WTO ePing SPS & TBT platform

• 17 African countries received over $3.2 billion digital commitments under related World Bank support framework 

• Dodai secured $13 million Series A, including $8 million equity and $5 million debt. 
• British International Investment and seven investors backed Dodai’s electric mobility expansion in Ethiopia. 
• Dodai deployed 2,000 electric motorbikes and built a workforce of around 100 employees. 
• Company targets 3,000 users and 30 battery-swapping stations in Addis Ababa within 12 months. 
• Three-year plan targets 30,000 users and 1,000 battery-swapping stations, expanding urban logistics capacity. 
• Funding supports local assembly, financing, and energy infrastructure, with implications for import substitution and FX demand. 
• Expansion into Abidjan, Kinshasa and Accra signals exportable Ethiopian electric mobility platform potential. 

Why It Matters:

Key Numbers:

• $13 million Series A financing

• $8 million equity; $5 million debt

• 2,000 electric motorbikes deployed

• 3,000 users and 30 swap stations (12-month target)

• 30,000 users and 1,000 swap stations (three-year target)

• €190 million new financing secured for economic reform and microfinance support.
• Financing package supports reform implementation and expanded microfinance sector funding.
• Funds target institutional strengthening in Ethiopia’s financial system.
• Microfinance support may expand credit access for small businesses and households.
• Financing supports broader economic reform priorities under ongoing policy transition.
• External funding may support liquidity and improve financing capacity.
• Reform execution depends on effective deployment and institutional absorption.

Why It Matters:
The financing combines reform support with credit system strengthening, linking macroeconomic adjustment to financial inclusion. If deployed effectively, it could support implementation capacity while improving financing access for smaller economic actors.

Key Numbers:

• €190 million

• 1 financing package

• 2 focus areas: economic reform and microfinance

• 87% growth lifted mineral export earnings to nearly $4 billion.
• Gold led export performance, driving the increase in mineral receipts.
• Mineral exports gained larger weight in Ethiopia’s export revenue structure.
• Higher mineral shipments increased foreign exchange earnings from merchandise exports.
• Export growth signaled stronger mining-sector contribution to structural transformation.
• Rising mineral receipts may support import financing capacity and trade balances.
• Sustaining growth depends on expanding production beyond concentrated mineral sources.

Why It Matters:
The scale of growth suggests mining is becoming a more important pillar in Ethiopia’s export structure. If sustained, higher mineral earnings could strengthen foreign exchange generation and support broader structural transformation objectives tied to external balances and industrial development.

Key Numbers:

• 87% export growth

• Nearly $4 billion export earnings

• 1 major leading mineral: gold

• $4.85 billion in imports replaced by local manufacturing in nine months.
• 754 industries entered production under the Made in Ethiopia initiative.
• Manufacturing sector growth rose from 4.8% to over 13%.
• $433 million industrial exports recorded, supporting external market engagement.
• Import substitution reduced pressure on foreign currency reserves.
• Ministry of Industry plans support through finance, raw materials, and energy access.
• Higher energy consumption signals expanding factory output and production capacity.

Why It Matters:
The $4.85 billion import substitution figure signals domestic manufacturing is becoming a material tool in easing Ethiopia’s external balance constraints. If sustained, rising factory output, export growth, and lower import dependence could strengthen FX resilience while supporting industrial-led growth.

Key Numbers:

• $4.85 billion import substitution

• 754 industries in production

• 4.8% to 13% manufacturing growth

• $433 million industrial exports

• 3 billion yuan facility launched by Luckin Coffee to expand coffee processing capacity. 
• More than 55,000 tonnes annual processing capacity added through the new facility. 
• Ethiopian green coffee beans named among core supply origins alongside Brazil and Colombia. 
• Facility strengthens direct sourcing links between Ethiopia and China’s coffee demand chain. 
• Expanded processing may support higher export volumes and foreign exchange inflows tied to Ethiopian coffee shipments. 
• Qingdao port integration improves logistics efficiency for imported beans moving through Luckin’s roasting network. 
• China demand diversification reduces concentration risk for Ethiopian coffee exports reliant on traditional Western markets. 

Why It Matters?

Key Numbers:

• 3 billion yuan facility investment

• US$415 million equivalent

• 55,000 tonnes annual processing capacity

• 3 origin countries cited: Ethiopia, Brazil, Colombia

• Discussions centered on African economic self-reliance, regional integration, and expanded intra-African trade. 

• Officials identified industrialization and infrastructure financing as priority cooperation areas. 

• Talks included collaboration on financial-sector initiatives involving the National Bank of Ethiopia. 

• Regional payment and settlement systems were highlighted as a strategic cooperation focus. 

• Both sides discussed coordinated responses to supply-chain disruptions and essential commodity stability risks. 

• Ethiopia and African Export-Import Bank agreed to continue close collaboration on priority initiatives. 

Why It Matters?

The focus on regional payment systems and infrastructure financing matters for Ethiopian trade settlement, import financing, and logistics flows. For exporters and manufacturers, deeper cooperation with African Export-Import Bank could support trade facilitation and industrial financing channels. The emphasis on supply-chain resilience is relevant for essential commodity stability and business cost management in Ethiopia.

• Green Motion and Ethiopian Airlines signed a strategic partnership announced April 14, 2026. 

• ShebaMiles members earn 1 mile for every $1 spent on Green Motion rentals in Ethiopia and abroad. 

• Green Motion Ethiopia says 70% to 80% of its fleet is fully electric, aligning the deal with Ethiopia’s EV transition. 

• Partnership follows Ethiopia’s 2024 internal combustion engine vehicle import ban, a policy accelerating demand for electric mobility. 

• ShebaMiles members can also access 10% discounts for Silver and 15% discounts for Gold and Platinum members. 

• Green Motion operates in over 600 locations across more than 80 countries, extending international relevance of the partnership. 

• The agreement links aviation loyalty programs with ground transportation, expanding non-flight earning opportunities for travelers. 

• The report links broader EV ecosystem momentum to financing support from Zemen Bank and Dashen Bank. 

Why It Matters?

This signals early integration of aviation, mobility, and loyalty ecosystems in Ethiopia’s transport market. It may support demand growth for EV rental fleets while strengthening commercialization opportunities in travel-linked services. For investors and mobility operators, it suggests new revenue models tied to green transport, tourism, and consumer rewards. It also shows private-sector alignment with Ethiopia’s post-2024 electric mobility policy shift.

• Ethio telecom opened its fourth public super-fast EV charging station in Adama, first expansion outside Addis Ababa. 

• The Adama site uses 180 kW chargers and helps raise network capacity to charge 60 vehicles simultaneously. 

• Since February 2025, the charging network has recorded more than 284,000 charging sessions. 

• The network has delivered over 7.1 million kWh of electricity through its EV charging infrastructure. 

• The rollout has avoided over 10 million kilograms of CO2 emissions, linked to an impact equivalent to planting 50,000 trees. 

• Integration with Telebirr enables NFC Tap-to-Charge payments, real-time monitoring, and automated charging transactions. 

• Ethio telecom launched a National EV Charging Platform to let third-party operators connect into a unified charging network.

• The expansion aligns with the “Next Horizon: Digital and Beyond 2028” strategy, linking telecom infrastructure, payments, and energy systems. 

  Why It Matters?

  This signals movement from pilot-stage EV infrastructure toward scalable national charging deployment in Ethiopia. It lowers infrastructure barriers for electric transport, while opening opportunities for private charging operators, equipment suppliers, and digital payment ecosystems. For logistics, energy, and mobility investors, the story is less telecom diversification than infrastructure platform creation.

• Djibouti offered Ethiopia a 60% equity stake in the Tadjoura Port, according to Finance Minister Ilyas Moussa Dawaleh.
• Ethiopian government declined the proposal, seeking corridor access in addition to the equity stake.
• The statement was made during a press conference in Djibouti.
• In October 2025, Djibouti entered a 30-year concession agreement with Red Sea Gateway Terminal International (RSGTI), a subsidiary of Saudi Arabia’s Jeddah-based Red Sea Gateway Terminal (RSGT), to operate port facilities on the Red Sea.
• Discussions aimed to deepen bilateral cooperation in port and logistics infrastructure.
• The development reflects ongoing negotiations over Ethiopia’s maritime trade access.
• On March 10, DPFZA issued a notice instructing shipping agents not to impose additional surcharges on cargo loaded prior to the onset of the Gulf crisis.

Why it matters?

The proposed 60% stake in Tadjoura Port highlights Djibouti’s willingness to deepen economic integration. Ethiopia’s preference for corridor access underscores its priority for guaranteed and efficient trade routes critical to its import-export activities.

• Sixteen Dutch companies visited Ethiopia to explore investment opportunities in the horticulture value chain.

• The mission focused on floriculture, fruits, vegetables, logistics, and agricultural technology.

• The visit was organized with support from the Embassy of the Kingdom of the Netherlands.

• Meetings were held with Ethiopian government institutions and private sector stakeholders.

• Ethiopia promoted investment incentives, including tax benefits and access to industrial parks.

• Discussions highlighted opportunities in cold-chain logistics and export-oriented production.

• The initiative aims to strengthen trade ties and attract foreign direct investment into Ethiopia’s agriculture sector.

Why it matters

The mission signals renewed European investor interest in Ethiopia’s horticulture sector, supporting export diversification, technology transfer, and foreign currency generation for the economy.

• New ship repair yard inaugurated in Djibouti to service regional and international vessels

• Facility developed to reduce reliance on foreign ship maintenance hubs

• Yard positioned near strategic Red Sea and Gulf shipping routes

• Targets servicing commercial vessels, tankers, and container ships

• Project strengthens Djibouti’s role as regional maritime logistics hub

• Supports growing traffic through East Africa–Asia–Europe trade corridor

Why it matters?
Expansion of ship repair capacity in Djibouti enhances regional logistics efficiency and could lower maintenance costs for vessels serving Ethiopia’s trade corridor.