Ethiopian Business Review

11/09/2026

: WHEN MORE DOESN’T ALWAYS MEAN BETTER

The latest Ethiopian Business Review EBR is out now.

As Ethiopia welcomes a new year, the economy is celebrating remarkable gains, but beneath the optimism are contradictions worth examining. Why are food prices rising when production is surging? Why does ETB 5.6 trillion sit within financial institutions while equity trading remains tiny? How did exports reach USD 11.2 billion while gold and coffee generated around USD 8.5 billion? And why is Ethiopia importing thousands of tonnes of packaging while local factories operate below capacity?

: Egg production has nearly quadrupled and chick distribution has increased sevenfold, yet livestock and meat prices remain 19.2% higher year-on-year. Chick mortality has reached 46.7%, while feed costs have climbed to around ETB 10,000 per 100kg.

: Ethiopia has more than ETB 5.6 trillion in financial assets, yet secondary trading on the Ethiopian Securities Exchange reached only ETB 1.15 billion between May and July. Can Ethiopia turn traditional savers into active investors?

.2_Billion_Question: Export earnings surged 35% to USD 11.2 billion, but roughly USD 8.5 billion came from gold and coffee. How durable is an export boom so heavily concentrated in two commodities?

: Domestic flexible packaging factories operate at roughly 60% capacity, while Ethiopia imports more than 6,800 tonnes of packaging. With the market potentially reaching USD 1.05 billion, why import what could potentially be produced at home?

Commentary Section:

by Nessebho Hailu (BA, MA, MSc): Ethiopian Airlines carried 20.7 million passengers, including around 13 million transit passengers through Bole. Could turning even a fraction of them into visitors unlock hundreds of millions of dollars in tourism revenue?

by Aschalew Tamiru አስቻለው ታምሩ: As markets open and competition intensifies, products will become easier to replicate. Could customer experience become Ethiopia’s ultimate competitive advantage?

From food prices and capital markets to exports, manufacturing, tourism and customer experience, the Enkutatash Edition of EBR looks beyond the headline numbers to the forces shaping Ethiopia’s next economic chapter.

The numbers tell one story. The reality behind them tells another.

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Read the full stories and commentaries in the latest issue of Ethiopian Business Review.

10/09/2026

Happy Ethiopian New Year! 🌼✨

Rooted in legacy and driven by industry, East African Holding welcomes the New Year with renewed purpose. As we begin this new chapter, we remain committed to building with vision, creating lasting value, and driving sustainable economic progress for generations to come.

Wishing Ethiopia prosperity, progress, and a bright New Year!

10/09/2026

FC Commits $10 Million Loan to Expand Alema Koudijs Feed Mill in Bishoftu

Sep 10, 2026

The International Finance Corporation has committed a $10 million equivalent local-currency loan to Alema Koudijs Feed PLC to expand its feed mill in Bishoftu and deepen commercial linkages with feed-crop supplier farmers, according to a social media post by IFC Africa.

According to IFC, the project is aimed at promoting local value addition, supporting economic diversification, and contributing to job creation. The financing is structured through the IDA Private Sector Window Local Currency Facility, which IFC said is designed to mobilise private investment in areas of broad development impact.

According to reports published in April 2026, when the loan was first proposed, the total project cost stands at $12.3 million, with IFC's contribution structured as a long-term A loan denominated in Ethiopian birr and backed by a cross-currency swap under the IDA Private Sector Window Local Currency Facility.

The reports said the financing also includes blended concessional support covering an estimated 24 per cent of total project cost, structured to mitigate currency risk and unlock long-term capital for Ethiopia's agribusiness sector. The project had been scheduled for IFC board approval on May 30, 2026.

Alema Koudijs Feed PLC is a joint venture between De Heus Animal Nutrition BV, which holds a 51 per cent stake, and Alema Farms PLC, which holds the remaining 49 per cent, according to the April reports. The expansion is intended to increase domestic production of compound animal feed to address supply gaps affecting Ethiopia's poultry and livestock industries and reduce reliance on imported feed inputs.

Beyond financing, the April reports said IFC is also providing advisory support focused on environmental and social governance standards, sustainable sourcing practices, and digital traceability across the feed value chain.

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10/09/2026

🌼 Happy Ethiopian New Year 2019 E.C. | Awash Bank 🌼

New Year, New Hope, New Success!
Awash Bank wishes everyone a peaceful, joyful, and prosperous 2019 E.C.

10/09/2026

Jazeera Airways Launches Three Weekly Flights Between Kuwait and Addis Ababa

Sep10, 2026

Kuwaiti low-cost carrier Jazeera Airways has launched direct flights between Kuwait and Addis Ababa, adding a new connection between the two countries and expanding the airline’s presence in Africa.

The new service will operate three times a week, providing direct air connectivity for travelers between the two cities.

The inaugural flight was marked by a ceremony at Jazeera Terminal 5 in Kuwait attended by Ethiopian Ambassador to Kuwait Sied Jibril and Jazeera Airways executives.

The new route is expected to improve travel options for the more than 70,000 Ethiopian nationals living in Kuwait, according to the airline. It also provides another direct link between Ethiopia and Kuwait for business and leisure travelers.

Sied said the new service could support tourism, trade, investment and cultural exchanges between the two countries, while making travel more convenient for the Ethiopian community in Kuwait.

For Jazeera Airways, Addis Ababa becomes its first destination in Eastern Africa, according to Paul Carroll, the airline’s Chief Commercial Officer.

He said the route will serve the Ethiopian community in Kuwait while supporting business, trade and leisure travel between the two countries.

The airline also sees Africa as a growth market and plans to use its Kuwait hub to connect passengers travelling between Ethiopia and other destinations on its network.

The launch adds another international airline to Addis Ababa’s growing aviation market and provides passengers with an alternative direct connection to Kuwait, a key Gulf travel and business destination for Ethiopian travelers.

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10/09/2026

Happy Ethiopian New Year! 🌼✨

As we step into 2019 E.C., Royal Foam wishes you and your loved ones a joyful, peaceful, and prosperous New Year. May the year ahead bring ultimate comfort, rest, and success to your home!

10/09/2026

Inflation Eases to 15.1% in August, Education Costs Surge to 25.3%

Sep 10, 2026

Ethiopia's general inflation rate eased slightly to 15.1 percent in August 2026, down from 15.3 percent in July, according to data released by the Ethiopian Statistical Service. The August figure nonetheless remains well above the 13.6 percent recorded in the same month last year, a year-on-year increase of 1.5 percentage points.

The month-on-month dip of 0.2 percentage points marks the first deceleration in general inflation after a sharp jump the previous month, when inflation rose 1.4 percentage points from June to July.

The easing was driven primarily by food prices, which slowed to 14.9 percent in August from 15.7 percent in July, a decline of 0.8 percentage points. Non-food inflation, however, moved in the opposite direction, climbing from 14.8 percent in July to 15.4 percent in August, a rise of 0.6 percentage points.

Within the food basket, most categories cooled slightly month-on-month. Sugar, honey, and chocolate remained the highest-inflation food category at 38.3 percent in August, though down from 39.4 percent in July.

Vegetables fell from 13.6 percent to 12.1 percent, oil and butter eased from 20.34 percent to 18.8 percent, dairy products and eggs dipped slightly from 18.9 percent to 18.7 percent, and fruits held nearly steady at 19.1 percent, down from 19.2 percent. Meat was the exception, rising from 21.6 percent in July to 22.6 percent in August.

The statistical service also reported, for the first time in this comparison, inflation of 8.1 percent for bread and injera and 16.8 percent for other food products.

The standout figure in August's data comes from the non-food side. Education recorded inflation of 25.3 percent, the highest rate of any category in the entire release and a figure not previously broken out in the July report.

Other goods and services held steady at 19.3 percent, alcoholic beverages and to***co remained unchanged at 16.0 percent, transport held flat at 15.6 percent, and communication was unchanged at 8.0 percent.

Restaurants and hotels eased slightly from 15.6 percent to 15.3 percent. Health inflation was recorded at 12.8 percent, also newly broken out in this release.

The net effect is a general inflation rate that has essentially plateaued at an elevated level rather than reversing course. While the modest month-on-month dip offers some relief after July's sharp acceleration, the shift in pressure from food to non-food categories.

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10/09/2026

09/09/2026

Happy Ethiopian New Year! 🌼✨

Nyala Motors wishes all its valued clients, partners, and the entire public a prosperous and peaceful New Year.

Drive your business forward in 2017 with our 61-seater Eicher buses, now available on the market!

09/09/2026

NBE’s $125 Million FX Auction Undersubscribed as Bank Demand Falls Below Supply

Sep 9, 2026

The National Bank of Ethiopia’s latest $125 million foreign exchange auction was undersubscribed by $5 million, marking a sharp shift from the heavy excess demand recorded in its previous regular auctions.

Banks submitted a combined $120 million in bids at Foreign Exchange Auction No. 28 held on September 9, against the $125 million offered by the central bank. NBE said all 20 participating banks were successful, with the full amount of their bids allocated.

The weighted average exchange rate of successful bids stood at 160.5357 Birr per US dollar, while the marginal, or cut-off, rate was 158.3500 Birr. The highest bid reached 160.7556 Birr per dollar, compared with the lowest bid of 158.3500 Birr.

The latest result represents a modest weakening of the Birr at the auction compared with the previous regular auction on August 26, when the weighted average stood at 160.2070 Birr per dollar. The latest rate was 0.3287 Birr higher, equivalent to an increase of about 0.2 percent.

Despite the slight movement in the exchange rate, the more notable change was in demand. On August 26, banks submitted $170.51 million in bids for the $125 million on offer, meaning demand exceeded supply by $45.51 million. On September 9, however, bids fell $5 million short of the amount offered.

The shift is even more pronounced compared with NBE’s August 12 regular auction, when banks submitted about $470 million in bids against the same $125 million allocation. The weighted average rate at that auction was 161.7994 Birr per dollar.

The September 9 auction was the third of four regular $125 million foreign exchange auctions planned under NBE’s $500 million allocation for the first quarter of the 2026/27 fiscal year. Following the latest auction, the final $125 million tranche is scheduled for September 23.

The latest auction also recorded a substantial increase in participation. Twenty banks took part, and all 20 received allocations, compared with five participating banks in the August 26 auction, of which two were successful.

With the September 9 auction clearing at 160.5357 Birr per dollar, the rate remains close to the 160-Birr level reached in the previous two regular auctions, even as demand for the latest $125 million allocation fell below the amount supplied.

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