M-Pesa Ethiopia and Gebeya Launch “Dala AI Bundle”

• M-Pesa Ethiopia and Gebeya Inc launched the “Dala AI Bundle” in Ethiopia.

• The bundle integrates AI-powered digital services with M-Pesa’s mobile money platform.

• Dala AI provides business tools for digital marketing, customer engagement, and analytics.

• The service targets SMEs and digital entrepreneurs using M-Pesa payments.

• The partnership aims to expand digital commerce and AI adoption in Ethiopia.

• Launch supports broader fintech and digital transformation initiatives in the market.

Why it matters?

• Expands AI-enabled services for Ethiopian SMEs.

• Strengthens M-Pesa ecosystem beyond payments into business tools.

• Supports digital economy growth and local tech sector development.

• Ethiopian Airlines signed import document for food waste conversion project.

• Project aims to process organic waste into sustainable products.

• Initiative targets waste from airline catering and related operations.

• Equipment to be imported for waste processing and value-added production.

• Project supports circular economy and resource efficiency objectives.

• Implementation expected to reduce waste disposal volumes.

Why it matters?

• Reduces operational waste costs and supports industrial recycling value chains.

• Development Bank of Ethiopia and African Development Bank discuss new external financing for agro-industry and job creation.

• Talks focus on mobilizing concessional and blended finance for industrial and agricultural projects.

• Financing targets agro-processing, manufacturing, and employment-generating sectors.

• DBE seeks foreign currency funding to support private sector investment.

• AfDB engagement aligns with Ethiopia’s industrialization and job creation agenda.

• Discussions include structuring facilities to improve project bankability and disbursement capacity.

Why it matters?

• External financing can ease foreign currency constraints and expand credit to agro-industrial investors.

• Oil and Energy Authority to supply Kalub LNG through three distribution stations in Somali Region and major cities.

• First phase capacity: 111 million liters LNG annually; distribution to start within one month.

• Second phase capacity: 1.33 billion liters LNG annually; additional stations planned nationwide.

• Three stations under final construction in Qaliti, Adama, and Dire Dawa by private companies.

• Poly Golden Concord Group (GCL) leading LNG project; Qaliti station built in partnership.

• LNG stored at -161°C; tankers arriving via Djibouti within five days for installation.

• Government fuel subsidies exceeded ETB 33 billion in recent years.

Why it matters?
Kalub LNG rollout may reduce fuel subsidy burden and reallocate fuel supply across regions.

• Ministry of Finance maintains 150% export tax on raw hides and skins.

• Semi-processed hides face 10% export tax; finished leather exports taxed at 0%.

• Policy supports domestic leather processing and manufacturing industries.

• Government preparing legal reform to revise export tax framework.

• Reform process underway; no implementation date announced.

• Leather industry stakeholders awaiting clarification on regulatory changes.

why it matters?
Export tax structure directly affects Ethiopia’s leather value chain, export revenues, and raw material supply for domestic manufacturers.

• EVs exceeded 60 % of new car sales in Ethiopia in 2024, ranking among top global shares. 

• Ethiopia now has ~115,000 electric vehicles on the road of ~1.5 million total fleet. 

• Government banned imports of fossil-fuel private cars in January 2024. 

• EV tariffs cut to 15 % for complete, 5 % for parts, zero for CKD kits. 

• Local EV assembly underway; 9 firms assemble vehicles from SKD kits. 

• China-brand EVs form majority of imports and sales in Ethiopian market. 

• Ethiopia aims for 500,000 EVs by 2030 under national transition targets. 

  
  

Chart source: X -  @AssaadRazzouk

Ethiopia’s automotive market is being reshaped by a fuel-vehicle policy pivot that has accelerated EV adoption, reduced reliance on imported petrol/diesel cars, and spurred duty-driven cost advantages for imported EVs and locally assembled units.

• MIDROC Investment Group opened a 1 billion ETB coal processing facility in western Ethiopia. 

• Facility processes 200 tonnes of coal per hour. 

• Plant created 250 permanent jobs. 

• Ethiopia previously spent up to $300 million on imported coal. 

• Processed coal intended for domestic cement, steel, construction industries. 

• Plant inaugurated in Arjo, East Wollega, Oromia Region. 

why it matters?
The facility replaces a portion of Ethiopia’s imported coal demand, potentially reducing foreign exchange outflows tied to industrial fuel imports.

• IFC will provide a $10 million unfunded risk-sharing facility to Dashen Bank for SME loans. 

• Dashen Bank can extend up to $20 million in SME lending under the facility. 

• Facility will cover 50% of credit risk on targeted SME loan portfolio. 

• Priority sectors include agribusiness and women-led enterprises in Ethiopia. 

• Support comes via IDA18 IFC-MIGA Private Sector Window first-loss guarantee. 

• Dashen Bank builds on ongoing IFC advisory partnership on SME operations. 

Why it matters?
The risk-sharing facility increases Dashen Bank’s capacity to lend SMEs, emphasizing finance access for agribusiness and women-led enterprises, directly affecting credit availability for small enterprises in Ethiopia. 

• NBE FX Auction No. 18 cleared at 155.12 ETB per USD on latest auction date. 

• National Bank of Ethiopia offered USD 70 million in the auction. 

• Total bids reached USD 145.31 million, more than double supply. 

• 31 commercial banks participated in the auction. 

• 21 banks secured foreign exchange allocations. 

• Marginal cut-off rate set at 155.1200 ETB per USD. 

• Weighted average rate settled at 155.1223 ETB per USD. 

Why it matters?

• National Bank of Ethiopia to conduct USD 70 million FX auction on February 17.

• Bids accepted from commercial banks between 10:00 AM and 12:00 noon.

• Results announced at 3:00 PM; settlement scheduled end of trading day.

• Notice issued in Addis Ababa on February 16.

• Auction part of standing bi-weekly foreign exchange programme.

• Policy aligns with macroeconomic reforms launched in 2024.

Why it matters?
The USD 70 million auction continues NBE’s bi-weekly FX allocation mechanism. The programme supports market-based currency pricing and liquidity management under ongoing macroeconomic reforms.

• Finance Minister Ahmed Shide met AfDB, IFAD, and BADEA leaders during the African Union Summit in Addis Ababa.

• BADEA discussions covered financing for Bishoftu International Airport and Koysha Hydropower Project.

• Talks included road development, trade finance, co-financing, and climate-related infrastructure for COP32.

• AfDB discussions addressed energy sector reforms and scaling support under Mission 300.

• IFAD discussions covered climate-smart agriculture and Farmer-Led Irrigation Development program.

• Meetings focused on aligning climate and investment programs with Ethiopia’s COP32 preparations.

Why it matters?
Ethiopia is advancing financing discussions for infrastructure, energy, and agriculture projects. Engagements with AfDB, IFAD, and BADEA support reform priorities and COP32-related climate investments.

• Ethiopian Airlines confirmed 35 international firms expressed interest in constructing the Bishoftu mega-airport.

• Detailed design completion targeted by end of February 2026.

• Formal tenders scheduled for March 3; four construction contracts to be signed by August.

• Project cost estimated at USD 9 billion.

• Financing structured through a Special Purpose Vehicle, using project assets as collateral.

• African Development Bank coordinates the project; KPMG serves as financial advisor.

• Final financing agreements expected by December 2026.

Why it matters?
The USD 9 billion airport project is advancing toward tendering and financing closure. SPV-based funding and multilateral coordination shape execution of Ethiopia’s largest aviation infrastructure development.

• ESX granted Approval in Principle to several major banks for Main Market listing.

• Banks include Awash, Dashen, Bank of Abyssinia, Abay, Anbesa, and Amhara.

• Listing requires securities registration with ECMA and prospectus publication.

• Dashen Bank and Bank of Abyssinia finalized securities registration and published prospectuses.

• ESX expects additional financial and non-financial listings before fiscal year end.

• Investors advised to open accounts through licensed market intermediaries and exchange members.

Why it matters?
Major banks are advancing toward listing on ESX’s Main Market. Securities registration and prospectus publication mark progress toward public trading and capital market expansion.

• ECMA requires more than 16 supporting documents for capital market licensing applications.

• Sixteen institutions have been licensed across investment banking, advisory, and brokerage services.

• Most licensed firms are subsidiaries of local banks, including CBE Capital and Wegagen Capital.

• BDO Consulting PLC received a corporate investment advisory license, raising advisory firms to nine.

• Total licensed capital market service providers now stand at 16.

• Transition from PLC to joint-stock company takes six to eighteen months.

• Interest spans more than 15 licensing categories, with demand expected after the Collective Investment Schemes Directive issuance.

Why it matters?
Sixteen institutions are now licensed under ECMA, including nine advisory firms. Licensing requirements and PLC-to-joint-stock transitions shape capital market participation and public fundraising capacity.

• Ethiopia generated USD 62 million from meat exports in the first six months of the fiscal year.

• Exporters shipped about 11,000 tons, below the 12,000-ton six-month target.

• Saudi Arabia and United Arab Emirates remained primary export destinations.

• Qatar agreed to resume meat imports starting during Ramadan after suspension.

• Industry reported USD 57 million earnings from 11,000 tons, below the USD 62 million target.

• Meat Producers and Exporters Association cited limited investment in feed and by-product processing.

• Endemic livestock diseases restrict access to United States and Asian markets due to certification requirements.

Why it matters?
Meat exports generated up to USD 62 million in six months but missed volume and revenue targets. Feed instability, disease control gaps, and market access barriers continue affecting export performance and foreign currency earnings.

• Ethiopian Airlines Group generated USD 4.4 billion in revenue in the first half of its current fiscal year. 

• Half-year revenue increased 14% versus last year’s record. 

• The airline added seven aircraft during the six-month period.

• Total fleet reached 147 aircraft over the period. 

• Ethiopian logged nearly 334,000 flight hours and carried 10.64 million passengers. 

• Cargo transported was 451,000 tons, up 19% year-on-year.

Why it matters?
Half-year revenue growth signals expansion of Ethiopian Airlines’ operations, including fleet size, passenger volumes, and cargo throughput, affecting airline industry performance metrics. 

• Ethiopia’s banking sector posted a combined profit of 91.06 billion birr in the first half of the fiscal year. 

• Profits followed currency liberalisation that lifted sector earnings. 

• Some banks incurred foreign exchange losses due to high FX exposure. 

• Results varied widely by risk profile and balance sheet position. 

Why it matters?
Bank profitability aggregates indicate overall sector performance mid-year 2026, while foreign exchange losses signal risk exposures tied to recent currency reforms, affecting banks’ balance sheets and financial stability. 

• National Bank of Ethiopia will open four new regional branches.

• Branches planned in Bahir Dar, Hawassa, Jimma, and Dire Dawa.

• Project aims to strengthen regional supervision and service delivery.

• Construction and preparatory works have already started.

• Implementation has faced delays from material shortages and site issues.

• National Bank of Ethiopia is coordinating with regional administrations.

Why it matters?
The expansion increases National Bank of Ethiopia’s regional presence, affecting banks, microfinance institutions, and financial supervision across major commercial centers.

• FIATA says future global trade depends on integrated multimodal logistics systems. 

• Multimodal logistics integrates sea, rail, road and air transport. 

• FIATA promoting UN Model Law on Electronic Transferable Records (MLETR) for digital documents. 

• UN convention on negotiable cargo documents ratified end of 2025 supports e-documents use. 

• FIATA collaborating with Ethiopian Freight Forwarders and Shipping Agents Association (EFFSAA) on training programmes. 

• Ethiopia is host of the 64th FIATA World Congress in 2027 with ~2,000 expected attendees. 

• Logistics digitalization and legal standards alignment highlighted as priorities. 

Why it matters?

• IMF extends deadline for Commercial Bank of Ethiopia (CBE) to cut net open position (NOP) to March 2026 from end-2025.

• CBE must reduce on-balance sheet NOP by at least 50 % under extended compliance timeframe.

• CBE’s short FX position worsened to about -$500 m from -$200 m year-on-year.

• National Bank of Ethiopia (NBE) and CBE hold weekly consultations on revised NOP plan.

• CBE launches diaspora remittance campaigns and tailored loan products to boost FX inflows.

• Asset Quality Review of CBE lending portfolio due by end-June 2026.

• NBE’s updated NOP directive sets FX exposure limit at ±18 % of a bank’s Tier 1 capital.

Why it matters?
Ethiopia’s largest bank must meet IMF-agreed FX risk limits by March 2026, reflecting weaker remittances and private sector FX demand. Progress influences foreign exchange market functioning and CBE balance sheet risk compliance.

• National Bank of Ethiopia targets full removal of the bank credit growth cap by December 2026.

• Credit cap currently limits annual bank lending growth to 24 percent.

• Policy shift follows improved macroeconomic conditions and ongoing monetary policy reforms.

• NBE plans a gradual and sequenced exit from the credit cap framework.

• Reform aligns with transition toward market-based monetary policy tools.

• Credit cap was introduced to control inflation and manage excess liquidity.

Why it matters?
The timeline signals regulatory predictability for banks and borrowers. It clarifies when credit allocation will fully shift to market-based mechanisms under NBE oversight.

• Imports may rise through expanded trade finance and letters of credit, conditional on foreign exchange availability.

• Exports may increase via improved pre- and post-shipment financing for exporters.

• Deal focuses on coffee development in Debeka, Abaya Woreda, West Guji Zone, Oromia region.

• Agreement includes quality systems, workforce capacity-building, and technical support for coffee value chain.

• Signed one day after Ethiopia–Brazil Trade and Investment Forum in Addis Ababa on Feb 6, 2026.

• Ethiopian government will follow up and support effective implementation of the partnership.

• Presence at signing included Brazilian ambassador and Embrapa president.

• Kerchanshe currently exports coffee seedlings to over 20 countries.

  
  

Why it matters?

The agreement establishes a formal technology and research cooperation framework between Ethiopian coffee sector firms and a major Brazilian agricultural research institution, potentially influencing coffee production quality and productivity in Ethiopia’s flagship export sector.

• Ethiopia and Qatar finalized talks to restart meat exports after a prolonged suspension. 

• Restart of meat exports is scheduled ahead of the holy period (Ramadan). 

• The export suspension preceded the new agreement. 

• Qatar is confirmed as a destination market for Ethiopian meat trade. 

• No export volumes, values, or dates were disclosed in the announcement. 

Why it matters?
Resumption of bilateral meat trade restores a previously halted export channel. Timing aligns with an upcoming high-demand period, potentially affecting Ethiopian livestock exporters.

• Ethiopian government plans new excise taxes on alcohol, tobacco, fuel, and vehicles under IMF-linked fiscal reforms. 

• Broad fuel subsidies are to be phased out as part of the tax changes. 

• Digital excise stamp system to be strengthened for tax collection (vehicle, alcohol, tobacco). 

• Vehicle circulation taxes will be introduced under the new tax regime. 

• Value-added tax and excise on fuel are included in the proposed tax package. 

• Reforms form part of broader measures to expand the fiscal revenue base. 

Why it matters?
New tax measures on fuel, vehicles, alcohol, and tobacco adjust Ethiopia’s revenue structure and fiscal policy. Digital excise systems affect tax administration and collection efficiency.