Ethiopia to set time to phase out aging cars

• They are examining replacement or conversion options, including electric or natural gas-powered alternatives, but the plan still requires final approval.
• Replacing vehicles older than five years is suspected to be one of the options under consideration
• potential role of Compressed Natural Gas (CNG) is also considered 
• the number of EVs in Ethiopia could reach 1.15 million by 2040

• The move follows BEAKA’s import of 150 Shacman trucks, marking the first phase ahead of local assembly. Under the plan, the company aims to assemble 1,500 vehicles annually
• The project aligns with government measures introduced in October, which exempt fully gas-powered vehicles from customs duties and restricts petrol and diesel imports to pre-cleared consignments

• The new directive, officially enforced in March this year, requires all diesel and gasoline vehicles to undergo emissions testing and mandates either the installation of approved emission-reduction devices or proof of emission compliance through an official certificate
• Officially commissioned researches show that about 70% of the city’s fuel-based emissions originate from taxis alone
• Those who fall short of the new standards will be given two options. They will have to install a certified emission-reducing device or undertake a full engine overhaul to lower emissions.
• TBK Trading Plc has begun selling a device, GreenTech, imported from Taiwan’s Molotech Group.
• The company claims the device can reduce exhaust emissions by up to 97% and cut fuel consumption by 30%. It is installed inside the engine, boasts a 10-year lifespan, and costs between 15,000 Br and 50,000 Br, depending on the size of the fuel tank. 

• The Central Bank posted a bold buying rate of 152.576 Br on October 23, almost 8.3 Br higher than ZamZam Bank’s 142.65 Br low.
• On paper, a uniform two percent spread governs the market. In practice, a wide corridor, from 142.65 to 152.58 on the buy side, and from 145.51 to 153.81 Br on the sell side, betrays different appetites for risk and liquidity.
• Despite the range, averages remained stable at about 147.8 Br for buying and 150.7 Br for selling
• Without a fresh infusion of dollars, the rate could drift to 153 Br and 155 Br in the coming months

• The Ethiopian Capital Market Authority (ECMA) has introduced a new draft directive 
• The new guideline focuses on improving transparency and regulatory standards for Collective Investment Schemes (CIS), including Money Market Funds, Mutual Funds, and Real Estate Investment Funds.
• Under the directive, investment schemes must be registered as joint stock companies, private limited companies, limited partnerships, or investment companies recognized by ECMA
• A key feature of the policy is its emphasis on comprehensive information disclosure; Public funds offering units to investors are required to prepare a general promotional document approved by ECMA, which must provide clear, accurate details on the fund’s investment policy, capital structure, issued securities, dividend distribution policies, and methods for determining distributable profits.

• The standards focus on sustainability, climate-related disclosures, and governance, offering investors consistent and comparable information on environmental risks and opportunities.
• Financial institutions, including banks, insurers, and major state-owned enterprises, are preparing to integrate sustainability disclosures into their reporting. 

• The Ministry of Finance has introduced a new directive that extends value added tax (VAT) registration to professional service providers with annual turnover below two million birr
• For the first time, professionals outside the Category “B” classification under the income tax law must register regardless of their turnover.
• Entities covered by the directive must complete registration within 30 days of its entry into force.

• The 392-km Awash–Kombolcha–Hara Gebeya line was designed to connect central Ethiopia with the north,
• while the 268-km Hara Gebeya–Mekele line was intended to extend the network into Tigray.
• Both projects were financed largely through external loans

• A 2025 report by the European Commission’s Joint Research Centre ranks the corridor among eleven African routes considered most attractive for infrastructure funding under Global Gateway, the EU’s 300 billion euro programme to reinforce global supply chains.
• The proposed corridor would lower costs, ease congestion and provide alternative outlets through Berbera in Somaliland and Dar es Salaam in Tanzania

• Withdrawals of any authorized amount remained free, but mobile money transfers that were once complimentary began incurring fees.
• Digital Banking account-to-account transfers now carry fees ranging from 3 birr for transactions up to 10,000 birr to 20 birr for transfers exceeding 300,000 birr.
• Mobile transfers to Telebirr and other wallets also attract charges, with a maximum fee of 15 birr for transfers above 10,000 birr, while internet banking to other banks largely remained unchanged.

• The losses were caused by 197 vehicle collisions, of which 53 occurred on ring roads and 144 outside ring roads
• The city has expanded its road network rapidly in the past two decades, with more than 2,700 kilometers of asphalt and cobblestone roads.
• Heavy traffic volumes, estimated at over 500,000 registered vehicles in Addis Ababa alone, continue to put pressure on infrastructure.

• Established in 2023 with more than 500 million birr in capital, Suweys Motors started with 30 assembled cars and has since become a leading player in the Somali Region’s automotive industry
• Suweys Motors manages both CKD and SKD operations, assembling models including Jetour, Suzuki Desire, Hyundai, Toyota, and TATA
• Its facility can produce up to 10 vehicles a day, with capacity to assemble eight Jetour cars from start to finish daily

• ESLSE, which currently operates in vessel operations, inland transport, and freight forwarding, is exploring the addition of a new division focused on rail transport.
• ESL aims to create a seamless, multi-modal network that enhances efficiency, lowers costs, and strengthens supply chain resilience
• ESL plans to operate on the railway line connecting Ethiopia and Djibouti
• ESL invested 750 million birr to acquire 100 Sinotruk trucks. This investment is part of a broader plan to grow its truck fleet to 1,000 vehicles within two years

• Ethiopia and Djibouti have signed an agreement to advance the DESSU Corridor project, a new regional transport route linking Djibouti, Ethiopia, South Sudan and Uganda.
• Ministers from both countries met to finalize plans for the completion of the Dekahil–Galafi road project and the establishment of the DESSU corridor
• DESSU is designed to improve trade flows, lower logistics costs and expand cross-border connectivity

• Ethiopia and Somaliland have agreed to explore closer financial cooperation, including the possible establishment of a branch of Ethiopia’s state-owned Commercial Bank in Somaliland
• Officials also discussed formalizing financial flows, regulating khat trade across the border, and enhancing banking access for regional businesses

The Ethiopian Ministry of Transport and Logistics (MoTL) has introduced stricter requirements for truck importers to address low-quality imports and poor after-sales service. Following a survey revealing importers’ limited capacity to handle sales and maintenance of heavy-duty vehicles, MoTL now mandates a qualification certificate for importers.

Key requirements include:

• Dedicated Repair Garage: Importers must operate a comprehensive repair facility for medium and heavy vehicles they sell.

• Reliable Spare Parts Store: Importers must ensure a steady supply of spare parts for their vehicles.

• Qualified Operations: Importers must maintain trained staff, proper office organization, technical training programs, and vehicle display/parking facilities meeting MoTL standards.

These measures aim to improve vehicle quality and after-sales support in Ethiopia’s trucking industry.

If you want to read all the rules set by MoTL, click the link below and download the file. 

 https://wahidbusinessnews.com/media/resources/2-New_requirements_for_heavy-duty_vehicle_importers_5-8.pdf

• A recent memo from the Industry Minister to the central bank, Customs Commission, and the Transport and Finance ministries declares that components for the local assembly of combustion engine vehicles will no longer be allowed to enter the country.
• the Ministry want to see Ethiopia’s fledgling vehicle assembly industry shift towards electric vehicles (EVs) and hybrids
• Since the government enacted its ban on the import of combustion engine vehicles last year, the number of EVs on the country’s roads has surged, with a report from the Transport Ministry putting the total at more than 42,000 as of March 2025.

• 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