
Germany and the African Union AU have initiated their first strategic dialogue on foreign and security policy at the AU Headquarters in Addis Ababa. The consultations, held on July 13 and 14, 2026, were led by German Federal Foreign Office State Secretary Dr. G茅za Andreas von Geyr and AU Commissioner for Political Affairs, Peace and Security, Bankole Adeoye. This new framework aims to address global security crises and strengthen multilateral collaboration. The dialogue's architecture was agreed upon in January 2026 by Foreign Minister Wadephul and AU Chairperson Youssouf, and endorsed by German Federal Chancellor Merz and Chairperson Youssouf in April 2026. Dr. von Geyr emphasized the AU's crucial role in maintaining peace and security. Discussions covered the humanitarian and political crisis in Sudan, transition architectures in Somalia, and stabilization efforts in the Sahel and Great Lakes regions, as well as the international implications of the war in Iran and Russia鈥檚 war against Ukraine. Germany, the AU鈥檚 largest individual bilateral partner with over 1 billion euros in investments since 2002, reaffirmed its commitment to supporting "African-led solutions to African problems." During his visit, Dr. von Geyr also met with Ethiopian Foreign Minister Dr. Gedion Timothewos to strengthen bilateral relations, focusing on increased foreign direct investment, private sector access, green energy transition, and qualified legal labor migration. Ethiopia is preparing to host th
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Must ReadOver 4,000 participants have convened in Addis Ababa for the final conference of Ethiopia's National Dialogue, set to continue for several weeks. This event follows years of input collection by the National Dialogue Commission NDC, established in 2021 to foster reconciliation, build consensus, and guide the country towards sustainable peace. The NDC identified eight primary agenda pillars, including Nation-Building, State Structure, Governance Form, Political System, and Socio-Economic Issues, which will be deliberated in closed sessions by the participants. The outcome of these discussions is expected to result in a binding consensus next month. The opening ceremony was attended by senior government officials and members of the diplomatic community, with Prime Minister Abiy Ahmed emphasizing that dialogue is crucial for safeguarding Ethiopia's stability from internal and external threats. He urged all nationalities to listen to each other's questions, particularly Oromo and Amhara, to resolve issues and put Ethiopia on a concrete path. AU Political Affairs, Peace and Security Commissioner Bankole Adeoye and IGAD Executive Secretary Workneh Gebeyehu also highlighted the significance of the dialogue for regional stability and peace. Commissioner Melaku Woldemariam stated that the process belongs to all Ethiopians and requires broad public ownership, with no decisions made in advance. Former Nigerian President and African Union Special Envoy for the Horn of Africa, Olusegun Oba
Must ReadThe Ethiopian Petroleum Supply Enterprise EPSE is set to undergo a significant recapitalization of 286 billion Birr, as detailed in the fifth review of the IMF program. This allocation was approved by the Ministry of Finance on June 12 and authorized by the board of Ethiopian Investment Holdings EIH, chaired by the Deputy Prime Minister, on June 23. Approximately 170 million Birr will come from World Bank funds by the end of the 2025/26 fiscal year, with the remaining 116 billion Birr drawn from this year鈥檚 2.3 trillion Birr budget before March 2027. A temporary surcharge at pumping stations is expected to generate nearly 80 billion Birr, intended to clear outstanding claims on the Fuel Price Stabilization Fund and build EPSE's liquid assets to cover trade credit liabilities. The government aims to collect 176 billion Birr from fuel taxes and an additional 90 billion Birr from motor vehicle and accessories taxes this year. This recapitalization, equivalent to 1.3 percent of GDP, is part of a plan to transition to lower-cost sight payments for fuel imports, reduce reliance on deferred Letters of Credit, and eventually implement an automatic fuel pricing mechanism. Challenges in fuel import include reliance on two suppliers, logistical constraints from Red Sea ports, and high costs associated with spot market purchases. Despite recent improvements in supply and a moderate fall in prices, the IMF document highlights acute short-term financing pressures due to high fuel and ferti
Must ReadThe International Monetary Fund's fifth review of its program with Ethiopia highlights a policy shift regarding the National Bank of Ethiopia's NBE role in gold purchases and foreign exchange sales. Contrary to previous recommendations for an immediate exit, the IMF now states that the NBE's withdrawal from gold purchases will be gradual, acknowledging the significant liquidity injections these purchases create, particularly for the Commercial Bank of Ethiopia. The NBE plans to discontinue premium payments to gold miners by September 2026, coinciding with its recapitalization plan, and will develop a long-term exit strategy from the gold market by December 2026. This phased approach is linked to concerns about the parallel forex market. The IMF report also notes that chartered flights transport raw gold to Dubai, the primary refiner and importer of Ethiopian gold. The NBE spent approximately 350 billion Birr on gold purchases in 2025/26, more than double the previous year, and uses gold exports and forex auctions to manage liquidity and stabilize the forex market. The report also indicates strong export performance in the first half of 2025/26, driven by gold and coffee, which is expected to help narrow the goods trade deficit.