• Afreximbank terminated its credit rating relationship with Fitch on January 23, 2026. 

• The decision followed a review finding Fitch’s ratings didn’t reflect Afreximbank’s mandate and legal framework. 

• Fitch had downgraded Afreximbank to one notch above “junk” status with a negative outlook. 

• Afreximbank reported assets and contingencies over US$40.1 billion at end-2024. 

• It retains investment-grade ratings from Moody’s, GCR, CCXI, and JCR. 

Why it matters: This decision highlights debates on how global credit agencies assess multilateral African lenders and may influence future financing and risk perception. 

1. Ethiopia generated over USD 5.1 billion in export earnings over the past six months, surpassing official targets. 

2. The export performance exceeded government expectations, indicating stronger external demand and improved export activity. 

3. Export growth was broad-based across key sectors (not detailed in snippet but implied in reporting). 

4. The six-month revenue achievement signals a possible upward revision of full-year targets. 

5. The export result contributes to foreign exchange inflows, helping ease external balances. 

   
   

Implications for the market

• Foreign Exchange & Banking: Higher export earnings bolster foreign currency reserves, easing pressure on the birr and supporting financial sector liquidity.

• Trade & Industry: Stronger export performance can attract investment in export-oriented sectors (agriculture, manufacturing), potentially expanding jobs and output.

• Logistics & Transport: Increased exports drive demand for freight, shipping, and transport services, benefiting related enterprises and infrastructure development.

1. The Ethiopian Capital Market Authority (ECMA) set the maximum investor compensation at 100,000 birr (~$640 USD) for losses covered by the Capital Market Compensation Fund. 

2. The compensation fund is designed to cover fraud or default losses when licensed providers fail to meet obligations. 

3. A dedicated committee will oversee the fund’s operations and ensure fair distribution of payouts to eligible investors. 

4. The compensation limit corresponds to a relatively low ceiling compared with potential capital market losses, given market volatility and fraud risk. 

5. The decision comes amid broader moves to strengthen investor confidence as Ethiopia’s capital market begins operations and the birr continues to slip against foreign currencies. 

Market Implications

• Investor confidence: A compensation cap of 100,000 birr (~$640) may be seen as modest, possibly limiting its reassurance value for larger investors and high-net-worth participants. › This could slow institutional participation. 

• Retail protection: While a formal mechanism exists, the low cap may mainly benefit small, retail investors, leaving larger claimants exposed. 

• Market attraction: Regulatory clarity may attract cautious investors seeking a structured market, but the compensation cap may need future adjustment to entice deeper liquidity and foreign capital. 

• Risk pricing: Brokers and issuers may price risk premiums into products if the compensation threshold is perceived as insufficient, potentially raising cost of capital. 

• Capital market development: The establishment of governance structures like this, even with low limits, is a step toward formal capital market infrastructure in Ethiopia, laying groundwork for expansion. 

1. The International Finance Corporation (IFC) is considering up to $80 million A-loan to support MIDROC Ethiopia Plc’s Sheraton Addis project. 

2. The financing would cover the refurbishment of the existing 294-room Sheraton Addis and construction of a new 200-key hotel + private villas on 2.5 acres. 

3. The Sheraton Addis renovation has been underway since 2023 and is expected to complete in 2026. 

4. IFC classifies the investment as Environmental Category B (limited risk) after due diligence and consultations. 

5. The project is still pending IFC Board approval, meaning the $80m financing is not yet finalized. 

Market Implications

• Hospitality sector boost: An $80m potential IFC loan signals confidence and can catalyze further foreign investment in Ethiopia’s hospitality infrastructure, especially in luxury segments.

• Construction and jobs: The refurbishment and new build expand demand for construction services, skilled labor, and local suppliers during the multi-year project.

• Tourism positioning: Enhancing a flagship property like Sheraton Addis supports Ethiopia’s strategy to attract international business, conferences, and tourism ahead of global events.

• Financing precedent: IFC’s involvement may lower perceived risk for other lenders to fund large multipurpose real-estate projects in Ethiopia.

• Currency and capital flows: Large USD-denominated financing, if approved, affects capital account activity and may help leverage further international capital inflows into service sectors.

1. Launch of StarPay: The Commercial Bank of Ethiopia (CBE) has launched a new digital payment platform called StarPay to integrate banking and payment services. 

2. Online and Offline Integration: StarPay is designed to work both online and offline, enabling payments and banking functions without network constraints. 

3. Single Platform Access: Customers can access a wide range of banking and digital payment services through one unified interface. 

4. Digital Ecosystem Support: The platform supports digital transaction growth and aligns with national digital transformation goals like Digital Ethiopia 2030. 

5. Bank–Fintech Collaboration: StarPay is developed through a strategic partnership between CBE and StarPay FinTech, highlighting tech–bank cooperation. 

   
   

   What it means for traders and users:

   For Traders (Merchants):

   • Lower cash dependence: Ability to accept digital payments online and offline, reducing cash handling risks and costs.

   • Faster settlements: Transactions are processed directly through CBE-linked accounts, improving cash flow.

   • Wider customer reach: Access to millions of CBE customers using one unified payment platform.

   For Users (Customers):

   • One platform convenience: Banking and payments handled in a single app, reducing the need for multiple wallets.

   • Offline usability: Ability to make payments even without internet, critical in low-connectivity areas.

   • Lower transaction friction: Faster, simpler payments for daily retail, transport, and service expenses.

1. Starting February 8, 2026, Ethiopia will impose a 5% levy on all mobile airtime and data purchases to fund the National Disaster Fund. 

2. The directive establishing the levy is dated January 16, 2025 and makes contributions to the disaster fund mandatory. 

3. Under the broader framework, banks and microfinance institutions will contribute 1% of the value of loans disbursed to the disaster fund. 

4. Insurance companies will remit 1% of total premiums collected, while digital banking services will incur an additional 5% surcharge. 

5. Other sector levies include 1 Birr per liter on fuel and 100 Birr fixed fee on domestic airline tickets as contributions to the disaster financing scheme. 

1. Ethiopia’s central bank allocated $70 million in foreign exchange at its latest auction. 

2. Total bids from commercial banks exceeded $94 million, indicating strong demand relative to supply. 

3. The marginal cut-off rate for successful bids was around Birr 154.78–154.92 per US dollar. 

4. 15 banks received foreign exchange allocations in this 15th auction under the current forex framework. 

5. Bid offers ranged from Birr 153 to Birr 155 per dollar, showing price variation within the auction. 

1. National Bank bans CAD payments for exports to certain African markets.
   The central bank barred the use of Cash Against Documents (CAD) for exports to five African countries to protect scarce foreign exchange. 

2. Policy aims to ensure timely foreign currency inflows.
   Officials cited repeated failures by exporters to repatriate forex earnings under CAD arrangements. 

3. Alternative payment methods required.
   Exporters must now use advance payments or Letters of Credit (LCs) to secure foreign currency receipts. 

4. Directive is linked to foreign exchange shortages.
   The clampdown reflects ongoing forex scarcity and volatility in Ethiopia’s external payments landscape. 

5. Enforcement will involve customs and penalties.
   Customs authorities will monitor compliance, and violations could delay shipments or risk goods confiscation. 

1. CBE plans to extend over 100 billion birr in loans this fiscal year.
   This funding targets the private sector, agriculture input suppliers, and public enterprises. 

2. The government’s temporary debt ban has been lifted.
   Ending the three-month ban allows banks to resume lending activity across sectors. 

3. 25 billion birr is allocated for private businesses.
   A further 30 billion birr will support agricultural inputs, with the remainder for public enterprises. 

4. CBE leadership says loans will stimulate the economy.
   Expanded credit access is expected to increase investment and job creation nationwide. 

5. Financing aims to restart suspended projects.
   Release of loan funds is intended to complete stalled initiatives and generate employment. 

• The new NBE directive cited as " Foreign Exchange Exposure Limits of Banks Directive No. SBB/96/2025" has entered into force starting today November, 10th , 2025.
• A key change links a bank’s maximum foreign exchange exposure to its core capital, enhancing financial stability by aligning risk capacity with a bank’s actual financial strength.
• This reform transitions from a static paid-up capital requirement to a dynamic system where capital must align with the risks a bank undertakes.
• For the first time, banks must calculate separate capital charges for market risk and operational risk, moving beyond the traditional focus on credit risk.
  
  
  

• African Export-Import Bank (Afreximbank) is set to pioneer Africa’s use of the Chinese renminbi (RMB) in project financing after becoming a direct participant in China’s Cross-Border Interbank Payment System (CIPS)
• With direct access to CIPS since June 2025, Afreximbank gains the ability to finance projects across Africa using RMB, streamlining transaction processes and cutting costs and currency exchange risks associated with cross-border trade and project finance.
• Afreximbank’s successful issuance of Panda bonds on China’s capital market has diversified its funding

• 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 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.