Ethiopian Business Review

African Development Fund Approves $9.3 Million Grant for Ethiopia, South Sudan Climate Resilience Project #EBR_News Jul 23, 2026 The African Development Fund (ADF) has approved a $9.3 million grant to strengthen climate resilience, improve water security and enhance food production in vulnerable communities across Ethiopia and South Sudan through a cross-border development project targeting flood-prone regions. Approved by the Fund's Board of Directors on July 15, the Climate Proof Water4Food Project will focus on Ethiopia's Gambella Region and South Sudan's Unity State, where recurring floods and climate shocks continue to undermine agricultural production, food security and livelihoods. The project will finance the construction and rehabilitation of seven solar-powered water supply systems, providing reliable access to safe drinking water for nearly 80,000 people. It will also deliver climate-smart agriculture training to more than 100,000 farmers, while around 19,300 young people will receive skills development in agriculture, entrepreneurship and climate-resilient value chains. According to the African Development Bank Group, the programme will improve sanitation in schools and public institutions, strengthen hygiene services and establish women-led community water management committees. Farmers, most of them women, will receive improved seeds, agricultural extension services, demonstration farms and climate-resilient technologies to increase productivity while protecting natural resources. The initiative also includes large-scale tree planting, watershed rehabilitation and ecosystem restoration to reduce climate risks and improve long-term environmental sustainability across the two neighbouring countries. The Bank said improved access to safe water is expected to reduce waterborne diseases, improve school attendance particularly among girls and strengthen household food security through higher agricultural productivity and new income opportunities for farming communities. The multinational initiative is also designed to promote regional cooperation by introducing shared technical standards, strengthening cross-border knowledge exchange and improving coordinated responses to climate risks affecting communities in both Ethiopia and South Sudan. The grant adds to the African Development Bank's growing portfolio of climate adaptation and food security investments across the Horn of Africa, where extreme weather events, conflict and displacement continue to place increasing pressure on water resources and agricultural production. Follow EBR for the latest business news, trends, and expert analysis: Telegram (https://t.me/ebr_news) Facebook (https://bit.ly/3OodjMF) LinkedIn (https://lnkd.in/eAVk65Xv) WhatsApp (https://bit.ly/4tH4NIR

NBE Allocates $500 Million for Q1 FX Auctions as Regular Bi-Weekly Sales Resume #EBR_News Jul 22, 2026 The National Bank of Ethiopia (NBE) has allocated USD 500 million for its first-quarter foreign exchange auction programme for the 2026/27 fiscal year, quadrupling the amount offered in the previous quarter as the central bank continues efforts to improve the predictability of foreign currency supply through scheduled market interventions. According to a statement issued on Wednesday, the central bank will conduct four bi-weekly auctions of USD 125 million each on August 12, August 26, September 9 and September 23, bringing the total first-quarter allocation to USD 500 million. The announcement marks a significant increase from the fourth quarter of the 2025/26 fiscal year, when the NBE allocated a total of USD 200 million through two auctions of USD 100 million each in June as it gradually transitioned from a series of large-scale special interventions back to its regular auction framework. The move follows the central bank's final fourth-quarter auction held on June 24, which cleared at a weighted average exchange rate of 157.00 Birr per US dollar. Total bids reached USD 160.5 million against the USD 100 million offered, with 14 commercial banks participating and nine securing allocations. The outcome also marked the second consecutive appreciation of the Birr after the June auction series, following months of sustained depreciation. Earlier in the fiscal year, the NBE conducted three special foreign exchange auctions of USD 500 million each between January and May 2026, injecting a combined USD 1.5 billion into the market in response to persistent foreign currency shortages and heavy oversubscription in regular auction sessions. Follow EBR for the latest business news, trends, and expert analysis: Telegram (https://t.me/ebr_news) Facebook (https://bit.ly/3OodjMF) LinkedIn (https://lnkd.in/eAVk65Xv) WhatsApp (https://bit.ly/4tH4NIR

Pitron Launches FinOS to Accelerate Digital Transformation for Ethiopia’s SACCOs and MFIs #EBR_News Jul 22, 2026 Ethiopian technology firm Pitron Technology Solutions has launched Pitron FinOS, a financial management platform designed to help Savings and Credit Cooperative Organizations (SACCOs) and Microfinance Institutions (MFIs) digitize their operations and reduce reliance on manual, paper-based systems. Unveiled during a launch event held at the Hyatt Regency Addis Ababa, the platform targets one of the country's most underserved segments of the financial sector. Ethiopia has more than 18,000 SACCOs, many of which continue to depend on paper-based recordkeeping, creating operational inefficiencies, increasing administrative costs, and limiting access to financial services. Pitron said its FinOS platform is designed to automate core financial operations, improve institutional efficiency, strengthen operational transparency, and expand access to financial services for cooperative members. Speaking at the launch, Mailaf Tewodros, Chief Technology Officer of Pitron Technology Solutions, said the software was developed to address long-standing operational challenges in the cooperative and microfinance sectors. He noted that the platform enables institutions to monitor employee performance, streamline day-to-day operations, and provide customers with faster and more convenient digital services. The company said FinOS is available for immediate deployment and can be customized to meet the operational requirements of individual financial institutions, with implementation and technical support services included. The launch event brought together participants, including representatives from the Ethiopian Cooperative Commission, Addis Ababa City Administration, Ethio Telecom, as well as executives from microfinance institutions, SACCOs, and fintech companies. Follow EBR for the latest business news, trends, and expert analysis: Telegram (https://t.me/ebr_news) Facebook (https://bit.ly/3OodjMF) LinkedIn (https://lnkd.in/eAVk65Xv) WhatsApp (https://bit.ly/4tH4NIR

South Africa-Backed AI Fintech Optasia Plans Entry into Ethiopia #EBR_News Jul 22, 2026 Artificial intelligence-driven digital lender Optasia plans to expand into Ethiopia, marking another sign of growing international interest in the country's newly liberalized financial sector as technology firms seek to tap one of Africa's largest underserved credit markets, Semafor reported. Speaking to Semafor, Optasia Chief Executive Officer Salvador Anglada said the company is preparing to enter both Ethiopia and Egypt after facilitating approximately US$6 billion in digital credit across 38 emerging markets last year. The planned expansion comes as Ethiopia gradually opens its financial sector to foreign participation following reforms introduced in 2024, ending nearly five decades of restrictions on overseas banking investment. Despite rapid economic growth, private sector credit remains among the lowest in the world at less than 10 percent of gross domestic product (GDP), reflecting years of state-led financing that prioritized public infrastructure over private lending. Optasia uses artificial intelligence, machine learning and mobile phone data to provide instant microloans, working capital financing and airtime advances to consumers and small businesses that often lack formal banking histories or access to conventional credit. According to Anglada, the company maintains a group-wide default rate of about 1.2 percent despite operating in markets where traditional lenders often struggle to manage unsecured lending risk. He attributed the performance to AI models that analyze thousands of alternative data points to assess borrowers who would otherwise be excluded from formal financial services. The company said around one-third of its lending supports informal businesses, including street vendors and neighborhood retailers, highlighting the growing role of digital finance in serving Africa's largely informal economy. Unlike conventional banks, which often find small-value lending uneconomical, Optasia says its automated credit assessment systems enable it to profitably issue loans worth as little as US$20 while managing risk through more than 200 machine-learning models that process millions of lending decisions every day. South African banking giant FirstRand, through its subsidiary FirstRand Bank, holds a 26 percent stake in Optasia, making it the fintech firm's second-largest shareholder after private equity investor Chronos Capital. The partnership gives the bank exposure to more than 400 million users served by Optasia's digital platform without expanding its physical branch network. Follow EBR for the latest business news, trends, and expert analysis: Telegram (https://t.me/ebr_news) Facebook (https://bit.ly/3OodjMF) LinkedIn (https://lnkd.in/eAVk65Xv) WhatsApp (https://bit.ly/4tH4NIR

Sudan Cites Suspension of Ethiopian Power Imports Among Causes of Worsening Electricity Crisis #EBR_News Jul 22, 2026 Sudan's Ministry of Energy and Oil says the suspension of electricity imports from Ethiopia is among several factors contributing to prolonged nationwide power outages, alongside surging electricity demand, maintenance at power plants, fuel shortages and extensive damage to electricity infrastructure caused by attacks and vandalism. In a press release issued on Tuesday, the Ministry said daily electricity demand has risen because of high summer temperatures, the return of residents to several areas, and increased consumption from the agricultural and industrial sectors. At the same time, several major generating stations remain offline for maintenance, while shortages of fuel and spare parts have constrained thermal power generation. The Ministry also cited the suspension of electricity supplied through the Ethiopia-Sudan power interconnection and extensive damage to generating plants, substations, transmission lines and distribution networks caused by repeated attacks, theft and sabotage, all of which have reduced the stability and operational capacity of the national grid. To improve supply, Sudan said it has restored more than 260 megawatts of generation capacity through maintenance work and expects available capacity to exceed 600 megawatts once ongoing rehabilitation projects are completed. Authorities have also repaired more than 20 substations and restored over 1,700 kilometers of damaged transmission lines despite security and logistical challenges. The Ministry said technical teams continue working to restore additional generating units and rehabilitate electricity infrastructure while managing load shedding to distribute available power as fairly as possible and prevent a complete collapse of the grid. The statement did not indicate when electricity imports from Ethiopia were suspended or specify the volume of electricity previously supplied through the cross-border interconnection. Ethiopia and Sudan have maintained a cross-border electricity interconnection since 2013, enabling Ethiopia to export hydropower to Sudan as part of broader regional efforts to strengthen electricity trade and energy integration in East Africa. Follow EBR for the latest business news, trends, and expert analysis: Telegram (https://t.me/ebr_news) Facebook (https://bit.ly/3OodjMF) LinkedIn (https://lnkd.in/eAVk65Xv) WhatsApp (https://bit.ly/4tH4NIR)

Kenya Accelerates Lamu Port Push to Capture Regional Trade Through LAPSSET Corridor #EBR_News Jul 22, 2026 Kenya is stepping up efforts to transform Lamu Port into a major regional maritime and logistics hub, as the Kenya Ports Authority (KPA) seeks to attract more global shipping lines and position the deep-sea facility as a key gateway for trade serving Ethiopia, South Sudan and other East and Central African markets. Dawan africa reported. The renewed strategy comes as Lamu Port records growing vessel traffic and cargo volumes, with KPA pursuing partnerships with international ports, investors and shipping companies to strengthen cargo handling, digital port systems and logistics services. During recent discussions with China's Nanjing Port, both sides explored cooperation in smart port technologies, automation and operational efficiency. Developed as the anchor project of the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) Corridor, the port is expected to provide Ethiopia and South Sudan with an alternative maritime gateway while reducing reliance on traditional regional routes. KPA says the port's naturally deep harbor, modern berths and proximity to international shipping lanes position it to accommodate larger vessels and expand regional trade. The facility has already demonstrated its capability by handling increasingly larger ships, including MV Baltimore Express, described by industry officials as the largest vessel ever to dock at a port in East and Central Africa. KPA believes this strengthens confidence among international shipping companies considering Lamu for deep-sea cargo operations. Kenya has invested about KES40 billion (approximately US$310 million) in constructing the first three berths of the planned 23-berth port. The berths measure 400 meters in length and have a natural depth of 17.5 meters, enabling the port to accommodate Post-Panamax container vessels carrying up to 12,000 twenty-foot equivalent units (TEUs), significantly larger than many ships currently calling at Mombasa. The authority has also expanded marine support services through the acquisition of new tugboats and other specialized equipment while seeking to reduce vessel turnaround times and improve operational efficiency. However, industry stakeholders argue that completing the wider LAPSSET transport corridor remains critical to unlocking the port's commercial potential. The Kenya Ships Agents Association said road, railway and logistics infrastructure linking Lamu to Kenya's hinterland, Ethiopia and South Sudan must be accelerated alongside investments in container handling equipment, warehouses, digital documentation systems and supporting urban infrastructure. The association noted that efficient inland transport and integrated logistics services will determine whether international shipping lines shift significant cargo volumes to Lamu, despite the port's modern facilities and strategic location. Follow EBR for the latest business news, trends, and expert analysis: Telegram (https://t.me/ebr_news) Facebook (https://bit.ly/3OodjMF) LinkedIn (https://lnkd.in/eAVk65Xv) WhatsApp (https://bit.ly/4tH4NIR)

Uganda Airlines Finalizes First Boeing Aircraft Order as Fleet Expansion Moves Ahead #EBR_News Jul 22, 2026 Uganda Airlines has placed its first direct aircraft order with Boeing, confirming the purchase of eight jets as the state-owned carrier moves ahead with a major fleet expansion aimed at strengthening regional and long-haul operations. Announced at the Farnborough International Airshow, the order comprises four Boeing 737-8 aircraft for regional routes and four Boeing 787-9 Dreamliner's for long-haul services. The aircraft will support the airline's plans to expand operations across Africa while increasing services to the Middle East, Asia and Europe. Chief Executive Officer Girma Wake described the agreement as a defining milestone in the airline's growth strategy, saying the new aircraft will strengthen Uganda Airlines' ability to connect the country with regional and international markets while supporting trade, tourism, investment and cargo development. Boeing said the combination of 737 MAX and 787 Dreamliner aircraft will also improve fuel efficiency by between 20% and 25% compared with the aircraft they replace. Uganda Airlines currently operates flights to 17 destinations in 13 countries from its hub at Entebbe International Airport. The airline said the new aircraft will provide additional capacity, improve fleet resilience and support its ambition to position Entebbe as a regional aviation hub. The announcement follows the airline's earlier aircraft acquisition agreement with Boeing unveiled in June, which included plans to acquire ten passenger and cargo aircraft as part of its long-term fleet renewal programme. At the time, Uganda Airlines said the broader agreement covered four Boeing 787-9 Dreamliner's, four Boeing 737 MAX passenger aircraft, one Boeing 767 converted freighter and one Boeing 737 converted freighter, representing a fleet investment valued at approximately $982 million. The latest order marks Uganda Airlines' first direct purchase from Boeing since the carrier resumed operations in 2019, reinforcing its strategy to expand capacity and compete more aggressively in the East African aviation market. Follow EBR for the latest business news, trends, and expert analysis: Telegram (https://t.me/ebr_news) Facebook (https://bit.ly/3OodjMF) LinkedIn (https://lnkd.in/eAVk65Xv) WhatsApp (https://bit.ly/4tH4NIR)

Inflation Holds at 13.9% in June as Food Prices Continue to Outpace Non-Food Costs #EBR_News Jul 22, 2026 Ethiopia's annual inflation rate remained unchanged at 13.9% in June 2026, as continued increases in food prices offset relatively lower growth in non-food costs, according to the Ethiopian Statistics Service. The latest data show that headline inflation matched the 13.9% recorded during the same month a year earlier, indicating that overall price growth has stabilized compared with previous years, although household spending continues to face pressure from rising food costs. Food and non-alcoholic beverage prices increased by 15.1% year-on-year, remaining above the national inflation average. The Ethiopian Statistics Service attributed the increase mainly to higher prices for vegetables, meat, dairy products, eggs, fruits, edible oils and sugar. Non-food inflation stood at 12.2%, reflecting more moderate price increases across other sectors of the economy. Among major expenditure categories, transportation costs rose by 14.3%, while prices for alcoholic beverages and tobacco increased by 14.5%. Communication services recorded an 8.9% increase, restaurant and hotel prices rose by 12.0%, and miscellaneous goods and services registered the highest increase among the reported categories at 17.9%. The latest figures suggest that food prices continue to be the primary driver of inflation, highlighting the ongoing cost pressures facing Ethiopian households despite the overall stabilization in headline inflation. The inflation data were released by the Ethiopian Statistics Service as part of its monthly Consumer Price Index update. Follow EBR for the latest business news, trends, and expert analysis: Telegram (https://t.me/ebr_news) Facebook (https://bit.ly/3OodjMF) LinkedIn (https://lnkd.in/eAVk65Xv) WhatsApp (https://bit.ly/4tH4NIR)

USDA Mobilizes $235 Million in U.S. Food Aid for Ethiopia, Sudan #EBR_News Jul 22, 2026 The United States Department of Agriculture (USDA) has signed an agreement in principle with Catholic Relief Services (CRS) to provide up to US$235 million in emergency food and nutrition assistance for Ethiopia and Sudan, mobilizing more than 110,000 metric tones of U.S.-grown agricultural commodities for millions of people affected by hunger and malnutrition. According to the USDA, the assistance will be delivered through CRS's existing humanitarian operations in East Africa, including the Joint Emergency Operation in Ethiopia and the Sudan Emergency Project. The programme is authorized under Title II of the Food for Peace Act. The agreement comes as the USDA assumes responsibility for administering the Food for Peace Title II programme under the U.S. government's revised humanitarian assistance framework. The agency said all food commodities supplied under the initiative will be sourced entirely from American producers as part of its "Farmers First" strategy, which aims to support domestic agriculture while responding to international food emergencies. Michelle Bekkering, USDA Deputy Under Secretary for Trade and Foreign Agricultural Affairs, said the programme is designed to deliver lifesaving food assistance while ensuring the economic benefits of U.S. food aid continue to support American farmers, ranchers and producers. She added that stricter accountability measures will also be applied to ensure assistance reaches intended beneficiaries and promotes long-term self-reliance. Separately, a U.S.-flagged vessel carrying nearly 47,000 metric tones of American-grown wheat and sorghum is currently en route to Ethiopia under the Food for Peace programme. According to reports, the shipment includes approximately 37,700 metric tones of sorghum and 9,200 metric tonnes of wheat destined for humanitarian operations in the country. The latest assistance comes as Ethiopia and Sudan continue to face humanitarian pressures driven by conflict, displacement and food insecurity. CRS said the agreement arrives at a critical time for vulnerable communities across the two countries and will strengthen ongoing emergency food and nutrition programmes. Follow EBR for the latest business news, trends, and expert analysis: Telegram (https://t.me/ebr_news) Facebook (https://bit.ly/3OodjMF) LinkedIn (https://lnkd.in/eAVk65Xv) WhatsApp (https://bit.ly/4tH4NIR)

ECMA Registers Sidama Bank's Existing Shares Under Capital Market Framework #EBR_News Jul 21, 2026 The Ethiopian Capital Market Authority (ECMA) has registered 1,447,002 existing shares of Sidama Bank S.C.. According to a notice issued by the Authority, the registration was approved on July 20, 2026, in accordance with the Public Offer and Trading of Securities Directive No. 1030/2024. The registered shares are those already held by the bank's existing shareholders. ECMA said the registration forms part of the regulatory requirement that all securities offered or sold to the public be registered with the Authority. The directive also requires issuers to register securities already held by shareholders before the regulation came into force. The Authority clarified that the registration does not constitute a public offering or an invitation to buy or sell shares. It said the notice is intended solely to inform the public that Sidama Bank's securities have been registered under the applicable regulatory framework. Follow EBR for the latest business news, trends, and expert analysis: Telegram (https://t.me/ebr_news) Facebook (https://bit.ly/3OodjMF) LinkedIn (https://lnkd.in/eAVk65Xv) WhatsApp (https://bit.ly/4tH4NIR)