Ethiopian Business Review

28 of 30 Banks Win Dollars as NBE’s 31st FX Auction Is Oversubscribed #EBR_News Oct 27, 2026 The National Bank of Ethiopia (NBE) allotted USD 140 million in its 31st foreign exchange auction held today, as banks submitted bids totalling USD 150.83 million, according to results announced by the central bank. The total bids exceeded the amount on offer by USD 10.83 million, extending the oversubscription recorded in the previous round. In Auction No. 30 on October 13, lenders had bid USD 152.09 million against the same USD 140 million allocation. The latest outcome suggests that the stronger demand seen in that round has carried over, after two earlier auctions, Nos. 28 and 29, were undersubscribed. According to the results, the marginal, or cut-off, rate stood at 158.1820 birr per US dollar, marginally higher than the 158.1724 birr recorded in the previous auction. The weighted average rate of successful bids, however, eased to 159.7014 birr per dollar from 160.1072 birr, a decline of roughly 0.41 birr. The bids ranged from a high of 160.9994 birr to a low of 158.1816 birr per dollar. The lowest bid was close to the cut-off rate, whereas the previous auction saw bids as low as 153 birr per dollar. This points to a much narrower spread in banks' offers, which suggests lenders are bidding with greater confidence about where the market is likely to clear. Participation also increased. Thirty banks took part in the auction, up from 29 in the previous round, and 28 of them secured foreign currency, compared with 26 earlier. The marginal rate is the lowest rate at which bids were accepted, while the weighted average reflects the average price paid across all successful bids. Follow EBR for the latest business news, trends, and expert analysis: Telegram (https://t.me/ebr_news) Facebook (https://www.facebook.com/share/1DAKyvnWSN/?mibextid=wwXIfr) LinkedIn (https://lnkd.in/eAVk65Xv) WhatsApp (https://whatsapp.com/channel/0029Vb7VyjjADTOJXYi7bN35)

Ethiopian Investment Commission wins 2026 UN award for digital economy investment #EBR_News Oct 27, 2026 The Ethiopian Investment Commission (EIC) has won a 2026 United Nations Investment Promotion Award for its work in attracting investment into the country's digital economy, according to a statement from UN Trade and Development (UNCTAD). The award was presented at the 9th World Investment Forum in Doha, Qatar, on 25 October 2026. UNCTAD said the commission was selected from 48 entries submitted by 40 countries. Four other bodies were also honoured: the Caribbean Export Development Agency, Invest KOREA, Invest Qatar and Morocco's Tanger Med Zones. UNCTAD said the winners were recognised for innovative approaches to investment promotion, their effectiveness in mobilising sustainable foreign direct investment, and their contributions to digital transformation and sustainable development. According to UNCTAD, Ethiopia's award was linked to the commission's role in facilitating investment in digital connectivity and financial inclusion, particularly through its support for Safaricom Ethiopia and the expansion of the M-PESA mobile financial services platform. UNCTAD said that, as of 31 March 2026, Safaricom Ethiopia had 13.6 million active subscribers and 3,504 network sites, with 4G coverage reaching 59 percent of the population. M-PESA, it added, had attracted 5.2 million customers. UNCTAD said the project helps strengthen competition, expand broadband access and digital payments, and supports the development of e-commerce, fintech and digital public services. The telecom market opened to private operators only recently, so the figures offer an early indication of how quickly new entrants can build scale. In its own statement, the EIC described the award as recognition of its contribution to promoting investment, accelerating digital transformation and fostering sustainable development. The commission said the honour reflects Ethiopia's effort to build an investment ecosystem conducive to technology and innovation, one that creates new opportunities and ensures sustainable economic growth. Follow EBR for the latest business news, trends, and expert analysis: Telegram (https://t.me/ebr_news) Facebook (https://www.facebook.com/share/1DAKyvnWSN/?mibextid=wwXIfr) LinkedIn (https://lnkd.in/eAVk65Xv) WhatsApp (https://whatsapp.com/channel/0029Vb7VyjjADTOJXYi7bN35)

African Development Bank Raises $2.5 Billion Through Dollar Bond Issuance #EBR_News Oct, 2026 The African Development Bank (AfDB) has raised $2.5 billion through a US dollar bond issuance, attracting investor orders worth $4.8 billion, according to an announcement published by the Bank on October 23, 2026. The three-year global benchmark bond was priced on October 21, 2026, and is scheduled to mature on January 18, 2030. The transaction marks the Bank’s third US dollar benchmark bond issuance of 2026, following a $1 billion 10-year bond in January and a $2 billion five-year bond in February. The bond carries a fixed annual coupon of 4.875%, with interest payable every six months. The Bank reported a re-offer yield of 4.933% and a re-offer price of 99.837% of the bond’s face value. According to the Bank, the final order book closed at $4.8 billion, including $50 million in interest from the joint lead managers. The Bank said indications of interest had exceeded $3.7 billion by the time the order book formally opened on October 21. Following investor demand, the final spread was set at 28 basis points above SOFR mid-swaps, compared with initial guidance of approximately 30 basis points. In simple terms, this spread is the additional interest investors receive above a reference market rate for lending their money through the bond. The Bank reported that investors in Europe, the Middle East and Africa accounted for 54% of allocations, while investors in the Americas received 40% and those in Asia received 6%. By investor category, banks accounted for 48% of allocations, central banks and official institutions received 39%, and asset managers accounted for 13%. The transaction attracted more than 80 orders, with 71 orders receiving allocations. The settlement date is scheduled for November 2, 2026. The African Development Bank said the transaction forms part of its international borrowing programme, which raises funds to support the Bank’s operations and development priorities across Africa. Follow EBR for the latest business news, trends, and expert analysis: Telegram (https://t.me/ebr_news) Facebook (https://www.facebook.com/share/1DAKyvnWSN/?mibextid=wwXIfr) LinkedIn (https://lnkd.in/eAVk65Xv) WhatsApp (https://whatsapp.com/channel/0029Vb7VyjjADTOJXYi7bN35)

Ethiopian Airlines Launches Thrice-Weekly Nacala Service, Its Third Mozambique Destination #EBR_News Oct 27, 2026 Ethiopian Airlines has launched a new passenger service to Nacala, Mozambique, operating three times a week and making the coastal city its third destination in the country after Maputo and Beira. The service was officially inaugurated on October 27, 2026, with flights scheduled three times a week. The airline said the new route will strengthen connectivity between Ethiopia and Mozambique while supporting tourism and business activity in Nacala. The launch makes Nacala the latest addition to Ethiopian Airlines’ network in Mozambique, following its existing services to Maputo and Beira. The airline had previously announced that the Nacala service would begin on October 27, after postponing an earlier launch schedule. The route was initially expected to start in July 2026. Earlier reports indicated that the service would operate as a triangular route linking Addis Ababa with Blantyre, Malawi, before continuing to Nacala and returning to Addis Ababa. The route was expected to be operated using a Boeing 737-800 aircraft. The Nacala service follows discussions between Ethiopian Airlines and the Mozambican government over expanding air connectivity between the two countries. During Mozambican President Daniel Chapo’s visit to Ethiopia in April 2026, he said his government was negotiating with the airline to increase services to Mozambique, including additional flights to Beira and a new route to Nacala. Nacala, located in Mozambique’s northern Nampula Province, is a major commercial and port centre. The expansion of air links could provide additional access for business travellers and tourists while connecting the city more directly to Ethiopian Airlines’ wider international network through Addis Ababa. The airline said the new service is expected to contribute to the growth of tourism and business while strengthening continental connectivity. Follow EBR for the latest business news, trends, and expert analysis: Telegram (https://t.me/ebr_news) Facebook (https://www.facebook.com/share/1DAKyvnWSN/?mibextid=wwXIfr) LinkedIn (https://lnkd.in/eAVk65Xv) WhatsApp (https://whatsapp.com/channel/0029Vb7VyjjADTOJXYi7bN35)

National Bank Offers USD 140 Million at 31st Foreign Exchange Auction #EBR_News Oct 26, 2026 The National Bank of Ethiopia (NBE) has announced that it will offer USD 140 million to commercial banks in its 31st foreign exchange auction, scheduled for tomorrow, Tuesday, October 27, 2026. According to the notice, interested banks will submit their bids through the Central Securities Depository (CSD)-based FX auction system between 10:00 AM and 12:00 noon. The central bank will announce the results at 3:00 PM, with settlement due by the end of the day on October 27. The allocation matches the USD 140 million offered in the previous auction, held on October 13, 2026. That round was USD 15 million higher than the USD 125 million that had been offered in each of the earlier regular auctions. The previous auction drew strong interest from lenders. Banks submitted bids totalling USD 152.09 million, exceeding the amount on offer by USD 12.09 million, according to the results of Auction No. 30. The outcome reversed the trend of the two preceding rounds, both of which were undersubscribed, with bids of USD 123.49 million in Auction No. 29 and USD 120 million in Auction No. 28. In that auction, the marginal, or cut-off, rate was 158.1724 birr per US dollar, while the weighted average rate of successful bids stood at 160.1072 birr per dollar. A total of 29 banks participated, and 26 of them secured foreign currency. Follow EBR for the latest business news, trends, and expert analysis: Telegram (https://t.me/ebr_news) Facebook (https://www.facebook.com/share/1DAKyvnWSN/?mibextid=wwXIfr) LinkedIn (https://lnkd.in/eAVk65Xv) WhatsApp (https://whatsapp.com/channel/0029Vb7VyjjADTOJXYi7bN35)

WFP Faces $251 Million Funding Gap, Keeps Food Rations at 60% #EBR_News Oct 26, 2026 The World Food Programme (WFP) says its Ethiopia operation faces a $251 million funding gap for the six months from November 2026 to April 2027, at a time when El Niño-related weather shocks, insecurity and displacement are raising food needs. According to the agency's October 2026 Ethiopia Country Brief, requirements for the period are only 46 percent funded. The brief adds that humanitarian needs are expected to stay elevated into early 2027, while funding shortfalls continue to constrain the response. The scale of the work is already large. The brief says WFP reached around 2.1 million food-insecure people in September, up from 1.9 million in August, delivering 14,212 metric tonnes of food and $4.5 million in cash assistance. Women made up 45 percent of those assisted. Within that total, the agency reported helping 407,000 crisis-affected people in the Somali and Gambella regions, equal to 80 percent of its monthly target there, and 762,335 refugees across 30 camps. Limited resources are already forcing hard choices. According to the brief, WFP kept cereal distributions at 60 percent of the standard ration, equivalent to 9 kg per person, while preserving full rations of pulses and vegetable oil. Refugees who have lived in the country for long periods also receive 60 percent rations because of funding limitations, while newly arrived Sudanese and South Sudanese refugees continue to receive full rations given their greater vulnerability. Ethiopia hosts over 1.13 million refugees and asylum-seekers, the brief notes. The agricultural outlook adds to the pressure. The report says El Niño-related rainfall deficits have made the Kiremt rains uneven, helping crop development in western areas but hurting production, pasture and water availability in parts of Tigray, Amhara, Afar and eastern Oromia The Meher harvest is expected to improve food availability in surplus areas, the brief states, but drought-affected households are likely to face reduced harvests, earlier depletion of stocks and continued dependence on markets. Food inflation, which the report lists among the factors heightening food security concerns, makes that dependence more costly. In the south and southeast, the brief says above-normal October to December rainfall may improve pasture and water, but also raises the risk of flooding, displacement, infrastructure damage and disease outbreaks. WFP said it is preparing for El Niño-related flooding in the Somali Region, either through anticipatory action or by expanding its support to the government's Productive Safety Net Programme (PSNP). Supporting an estimated 100,000 people with three rounds of multipurpose cash transfers would cost about $1.3 million, according to the document. Operations are also being hampered on the ground. The brief reports that hostilities have disrupted supply routes and delayed food assistance in some regions, while insecurity, transport constraints and fuel shortages have interrupted distributions. In Amhara, insecurity disrupted teaching and school feeding in 45 schools. WFP is nonetheless preparing to launch distributions for 223,100 people in Afar, Amhara and Tigray once cooperating partners are onboarded, focusing on districts with acute needs linked to El Niño. It also says targeting for the sixth phase of the PSNP remains delayed in all regions because updated poverty data is unavailable. Follow EBR for the latest business news, trends, and expert analysis: Telegram (https://t.me/ebr_news) Facebook (https://www.facebook.com/share/1DAKyvnWSN/?mibextid=wwXIfr) LinkedIn (https://lnkd.in/eAVk65Xv) WhatsApp (https://whatsapp.com/channel/0029Vb7VyjjADTOJXYi7bN35)

Afreximbank's Nine-Month Net Income Jumps 24% to $813.5 Million as Lending Expands #EBR_News Oct 26, 2026 The African Export-Import Bank (Afreximbank) has reported a 24% rise in net income to $813.5 million for the nine months ended 30 September 2026, up from $654.3 million in the same period last year. According to a press release issued by the Cairo-based lender on Monday. The bank's total assets and contingencies rose by 12% to $54.1 billion, from $48.5 billion at the end of 2025, the press release states. Net loans and advances grew by 8% to $36.2 billion, compared with $33.5 billion at year end. Average loan balances climbed from $28.9 billion in the first nine months of 2025 to $34.8 billion this year, which the bank attributed to sustained demand for trade and project finance among its member countries. Gross income increased by 11% to $2.7 billion, according to the release, with interest income up 9.1% to $2.4 billion. Net interest income, which is the gap between what the bank earns on loans and what it pays on funding, strengthened by 15% to $1.5 billion. Fees and commissions from unfunded activities such as guarantees, letters of credit and advisory services rose to $136.9 million from $117.2 million a year earlier. On efficiency and asset quality, the bank said its cost-to-income ratio improved to 20% from 21%, well within its internal ceiling of 30%. Return on average assets improved to 2.48% from 2.34%, while return on average equity held at 12%. The non-performing loan ratio edged up to 2.48% from 2.43% at the end of last year, and provisions for expected credit losses rose to $537.6 million from $481.3 million, the bank disclosed. Afreximbank also reported a stable funding and capital position. Liquid assets stood at $6.1 billion, or 13% of total assets, down from 15% at the end of 2025, while the capital adequacy ratio eased to 22% from 23%. Shareholders' funds rose to $9.0 billion from $8.4 billion, supported by retained profits and $195.2 million in new equity contributions under its General Capital Increase programme. In July, the bank completed a $1.5 billion dual-tranche bond, split equally between 5.5-year and 10-year notes, which it said was about two times oversubscribed, lifting debt securities in issue to $4.4 billion from $3.4 billion. The lender said it continued to play a countercyclical role during geopolitical and economic disruption, pointing to its $10 billion Gulf Crisis Response Programme, designed to provide liquidity support, facilitate trade and payment flows, and help member countries keep access to imports such as energy, fertilisers and food. High-impact investments increased by 23% to $1.6 billion. "This performance underscores Afreximbank's ability to deliver strong and sustainable performance while continuing to fulfil its development mandate," Denys Denya, the bank's Senior Executive Vice President, said in the release. Follow EBR for the latest business news, trends, and expert analysis: Telegram (https://t.me/ebr_news) Facebook (https://www.facebook.com/share/1DAKyvnWSN/?mibextid=wwXIfr) LinkedIn (https://lnkd.in/eAVk65Xv) WhatsApp (https://whatsapp.com/channel/0029Vb7VyjjADTOJXYi7bN35)

Kenya opens $1.17 billion port concessions to private investors in Mombasa and Lamu #EBR_News Oct 26, 2026 Kenya is preparing to open some of its most strategic maritime assets to private operators under a concession programme expected to attract about $1.17 billion in investment, according to figures disclosed by the National Treasury. The programme covers terminals and cargo facilities at the ports of Mombasa and Lamu, as well as inland container depots, and marks a significant shift in how the country manages the gateways that serve much of East Africa. The Treasury said the first phase is estimated to cost about $615 million (KSh79.69 billion), with the state-owned Kenya Ports Authority (KPA) contributing $60 million (KSh7.79 billion), Business Daily reported. Private investors will provide the remaining capital and develop and operate the facilities through public-private partnerships, paying concession fees to the authority. The phase includes Mombasa berths 11 to 14, Mombasa Container Terminal I, Lamu Container Terminal berths one to three and the Lamu Special Economic Zone. A second phase, valued at about $618 million (KSh80 billion), is also being prepared, according to Business Insider Africa and Splash247, which cited the Treasury figures. It would cover Mombasa Container Terminal II, Mbaraki Wharf, several cargo berths and inland container depots in Embakasi and Naivasha. Together, the two phases are expected to draw KSh151.9 billion, or roughly $1.17 billion, in private capital, a figure that excludes the KPA contribution. The Treasury approved the feasibility report for the first phase in August, clearing the authority to begin competitive procurement. The concessions will follow a landlord port model, under which KPA retains ownership of the land and foundational infrastructure while private concessionaires finance, build and run individual terminals. The Treasury argued that the assets share access channels, yards and logistics systems, and should therefore be structured as a portfolio rather than through separate deals. Splash247 reported that redeveloping Mombasa's berths 11 to 14 could lift annual container capacity from about 300,000 twenty-foot equivalent units (TEU), the standard measure of container volume, to 900,000 TEU, with dredging and berth realignment allowing larger vessels to call. Lamu's first three berths have a combined design capacity of 1.2 million TEU. Mombasa is the main entry point for Kenya and landlocked neighbours including Uganda, Rwanda and South Sudan, while Lamu is central to Kenya's plan for a northern corridor linking its coast with Ethiopia and South Sudan. Follow EBR for the latest business news, trends, and expert analysis: Telegram (https://t.me/ebr_news) Facebook (https://www.facebook.com/share/1DAKyvnWSN/?mibextid=wwXIfr) LinkedIn (https://lnkd.in/eAVk65Xv) WhatsApp (https://whatsapp.com/channel/0029Vb7VyjjADTOJXYi7bN35)

Ethiopia Becomes Third-Largest Buyer of Russian Fertiliser, TASS Reports #EBR_News Oct 26, 2026 Ethiopia is now the third-largest importer of Russian fertilisers worldwide, Russia's Ambassador to Ethiopia, Yevgeny Terekhin, has said, according to Russian state news agency TASS. Terekhin made the remarks in an interview with TASS ahead of the Russia-Africa summit. TASS reported that diammonium phosphate (DAP) is the main item in Ethiopia's purchases from Russia. Terekhin said the state-owned procurement company has an annual demand of 1.2 million metric tonnes of the product. He attributed Ethiopia's ranking to Russian producers consistently meeting their contracted volumes this year, and added that Moscow is exploring ways to expand the presence of Russian companies in Ethiopia's agrochemical market. The rise appears sharp when set against earlier trade records. According to the United Nations COMTRADE database, Ethiopia imported fertilisers worth about $1.2 billion in 2023, with Morocco supplying $674.2 million (56.3 percent), Egypt $317.1 million (26.5 percent) and Oman $98.4 million (8.2 percent). China and Nigeria followed with $43.8 million and $35.4 million respectively. Russia's recorded sales to Ethiopia that year were only about $19,250, which suggests Russian shipments have grown considerably since then. Ethiopia's heavy reliance on imports explains why suppliers are competing for the market. A market analysis titled Ethiopia Fertilizers Market 2026 Analysis and Forecast to 2035 estimates that 85 to 90 percent of the country's fertiliser supply comes from international procurement. According to the report, urea and DAP blends account for roughly 60 to 70 percent of national volumes, while smallholder farmers make up 85 to 95 percent of end-use demand. It identifies foreign-exchange scarcity as the biggest supply bottleneck, noting that it delays import payments and causes periodic stockouts during planting seasons. The report also projects that demand will grow by 6 to 9 percent annually, which would amount to a 50 to 80 percent expansion by 2035 compared with the 2026 baseline. Ethiopia is, however, moving to reduce that exposure. Under a shareholders' agreement signed in August 2025, Dangote Group holds 60 percent of a planned urea plant in Gode, in the Somali Region, while Ethiopian Investment Holdings (EIH), the government's strategic investment arm, holds the remaining 40 percent. The plant is designed to produce 3 million tonnes of urea a year, using gas from the Calub and Hilala fields delivered through a dedicated pipeline. Construction officially began in October 2025, with commissioning targeted after about 40 months, which points to early 2029. Reports indicate that the cost has risen from an original estimate of $2.5 billion to more than $4 billion as the scope has widened to include a 110-kilometre pipeline, a 120 MW power plant and a 2-million-tonne NPK blending facility, though sources differ on the final figure. Follow EBR for the latest business news, trends, and expert analysis: Telegram (https://t.me/ebr_news) Facebook (https://www.facebook.com/share/1DAKyvnWSN/?mibextid=wwXIfr) LinkedIn (https://lnkd.in/eAVk65Xv) WhatsApp (https://whatsapp.com/channel/0029Vb7VyjjADTOJXYi7bN35)

Mesob One-Stop Service to Launch in IPDC-Managed Industrial Parks Within a Month #EBR_News Oct 26, 2026 The Mesob One-Stop Service is set to begin operating in Special Economic Zones and industrial parks managed by the Industrial Parks Development Corporation (IPDC) in less than a month, according to the corporation's Chief Executive Officer, Fitsum Ketema. Fitsum made the announcement during a meeting between an IPDC delegation and the leadership of the Federal Democratic Republic of Ethiopia's Mesob One-Stop Service, held to discuss preparations for the launch at Bole Lemi Special Economic Zone, according to the IPDC. Speaking at the meeting, Fitsum said the one-stop service arrangements currently operating in IPDC-managed investment hubs have not fully met investors' needs for comprehensive investment-related services. He pointed to the absence of some relevant government institutions from the service centres as a major challenge, which has meant investors cannot access all the essential services in one place. To close these gaps, IPDC has been consulting the Mesob One-Stop Service and other stakeholders to build a more comprehensive and efficient service delivery system across its hubs, the corporation said. The service is expected to improve access to government services for investors, employees working in the parks and zones, and surrounding communities, while also streamlining administrative procedures and improving the investment climate. IPDC currently administers 14 Special Economic Zones and industrial parks nationwide. According to the corporation, more than 320 investors operate within these hubs, which have created jobs for over 100,000 citizens. Mesob, short for Modern Ethiopian Services for Organized Benefit, is Ethiopia's integrated digital and physical public service centre, bringing services from several federal institutions under one roof. In its pilot phase, the platform integrates 12 federal institutions offering 41 services, including national ID issuance, immigration, tax registration, trade and investment facilitation, document authentication and banking services through the Commercial Bank of Ethiopia. The service operates under the Federal Civil Service Commission and is regulated by Council of Ministers Regulation No. 583/2026, which aims to improve speed, transparency and accountability, and to standardize service delivery. Follow EBR for the latest business news, trends, and expert analysis: Telegram (https://t.me/ebr_news) Facebook (https://www.facebook.com/share/1DAKyvnWSN/?mibextid=wwXIfr) LinkedIn (https://lnkd.in/eAVk65Xv) WhatsApp (https://whatsapp.com/channel/0029Vb7VyjjADTOJXYi7bN35)