News

Ethiopian Banks Deliver Record Earnings as Deregulation Takes Hold

Six Ethiopian banks now appear in the African Business Top 100 African Banks table, up from five last year and two in 2022, as deregulation drives record profitability and digital payment adoption across the sector.

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Gulf Conflict Shockwaves Reach Ethiopia's Economy and Energy Security

The US-Israel-Iran conflict that began February 28, 2026, and the effective closure of the Strait of Hormuz sent oil prices from $70 to $140 per barrel, directly threatening Ethiopia's energy imports and food prices.

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16 Ethiopian Banks Fail Liquidity Stress Test, NBE Orders Recovery Plans

The NBE Financial Stability Report (March 2026) reveals 16 of 31 commercial banks failed the liquidity stress test for fiscal year ending June 2025, down from 20 in 2024. Affected banks must submit recovery plans.

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Ethiopia Export Earnings Reach $5.9 Billion as Mining Sector Surges

Ethiopia's total export earnings reached $5.9 billion in the current fiscal period, driven by gold exports exceeding 22 tonnes in eight months and strong coffee performance.

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NBE Financial Stability Report Highlights Resilient Banking Sector Amid Reforms

The NBE's Financial Stability Report, released March 17, 2026, indicates continued economic expansion, single-digit inflation, credit growth, and rising foreign exchange earnings supporting stability for the 2025/26 fiscal year.

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Ethiopia Inflation Falls to 9.7%, Maintaining Single-Digit Trend

Ethiopia's annual inflation rate dropped to 9.7% in February 2026, down from 15% a year earlier. Food prices, particularly vegetables, meat, and dairy, remain the primary driver at 10.8% year-on-year.

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Ethiopia Raises Fuel Prices Nationwide as Global Oil Costs Rise

Retail fuel prices rose across Ethiopia effective March 10, 2026. White diesel increased by about 10 birr per liter to 139.84 birr, benzene rose to 132.18 birr. The Ministry of Trade cited global oil market fluctuations.

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Ethiopia Nears Approval of Foreign Portfolio Investment Directive to Open Capital Markets

The Ethiopian Capital Market Authority is finalizing a landmark directive allowing foreign institutional and individual investors to trade in local equities and debt instruments for the first time.

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Ethiopia to Host 'Invest in Ethiopia 2026' Forum, Targeting $2.4 Billion in Commitments

The fourth 'Invest in Ethiopia' forum is scheduled for March 26–27, 2026, in Addis Ababa, targeting over $2.4 billion in new investment commitments with more than 800 investors and development partners expected.

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ESX Launches Neway Mobile Trading App to Expand Capital Market Access

The Ethiopian Securities Exchange launched the Neway web and mobile trading platform on March 5, 2026, allowing investors to open accounts, trade securities, and monitor portfolios remotely.

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NBE's Second-Generation Forex Reforms: Analysis of FXD/04/2026 Implications

Analysis of NBE's Directive FXD/04/2026 describes it as a second wave of liberalization with broad market implications, including new forward transaction rules, forex bureau working capital releases, and bank-level pricing authority.

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NBE Reaffirms Commitment to Market-Based FX Regime in Q1 2026 Review

NBE releases quarterly review affirming continued support for market-determined exchange rates and interest-rate-based monetary policy framework.

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Dashen Bank Reports Strong Q2 2025/26 Deposit Growth and Digital Banking Uptake

Dashen Bank announces Q2 results showing 18% deposit growth y-o-y and 42% increase in mobile banking transactions.

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Second NBE $500 Million FX Auction Undersubscribed, Signaling Easing Dollar Demand

The NBE's second $500 million special FX auction on February 21, 2026, drew bids from 30 banks but was undersubscribed by $44.71 million, suggesting that systemic foreign currency shortages are easing.

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Ethiopia: IMF Extended Credit Facility — Program Overview and Progress

The Ethiopian birr has shown relative stability in the second year of the IMF Extended Credit Facility program as reforms take hold and the parallel market premium narrows.

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Six Ethiopian Banks Receive Approval in Principle to List on ESX Main Market

Awash Bank, Dashen Bank, Bank of Abyssinia, Abay Bank, Anbesa Bank, and Amhara Bank have each received approval in principle to list on the ESX Main Market, with Dashen and Abyssinia the most advanced.

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NBE Amends FX Directive: Service Exporters Can Retain 100% of Proceeds, Lifts Multiple Restrictions

NBE lifts forex retention limits for service exporters, removes minimum FX account requirements, and allows banks to approve investor dividend remittances.

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Ethiopia and France Sign First Bilateral Debt Agreement Under G20 Common Framework

Ethiopia signed a bilateral debt restructuring agreement with France on February 11, 2026, the first such agreement between Ethiopia and a member of the Official Creditor Committee under the G20 Common Framework.

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NBE Sells $640 Million to Banks in January as FX Interventions Ramp Up

The NBE sold $640 million to commercial banks in January 2026 through regular and special auctions, accounting for 82% of the $780 million sold throughout all of 2025.

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