Must ReadThe National Bank of Ethiopia NBE has removed the credit growth cap for commercial banks, nearly three years after its introduction in August 2023. This decision follows a Monetary Policy Committee meeting, where regulators noted a successful transition to an interest-based policy framework. The cap, initially set at 14 percent to curb inflation, was later adjusted to 18 percent in December 2024 and 24 percent in September 2025. Although inflation has eased due to economic reforms and forex market liberalization from mid-2024, the NBE anticipates continued double-digit headline inflation for the next six months, partly due to the Middle East conflict. In response, the NBE is increasing its policy rate by one percentage point to 16 percent as a counter-tightening measure. Additionally, the central bank is reducing the forex surrender requirement for goods exports from 50 percent to 30 percent to boost export competitiveness and market confidence. The NBE's forex commission rate has also been lowered by one percentage point to 1.5 percent.
Must ReadThe Ethiopian Human Rights Council EHRCO issued an urgent appeal on July 12, 2026, demanding an immediate end to systemic rights violations as a mandatory military recruitment drive sweeps across the northern Tigray region. The Tigray regional council, an entity dissolved under the 2022 Pretoria peace deal and reinstated unilaterally earlier this year, passed a decree on June 24, 2026, mandating compulsory military service and enforcing the death penalty for those who object. EHRCO confirmed that local authorities are using the decree to conduct forced roundups, targeting "youth and children whose age is not even full 18 years." These developments occur amid escalating political and military friction between the Tigray People's Liberation Front TPLF and the federal government. EHRCO observed that the threat of a returning war is triggering widespread panic, forcing "a high number of residents and youth to leave their area and migrate." EHRCO's warning aligns with mounting apprehension from the international community. In its statement, EHRCO said that forced conscription directly violates the constitution and international treaties like the Convention on the Rights of the Child. The body implored both the federal government and the TPLF to de-escalate and "facilitate a condition where it is resolved in a peaceful way by talking around a table." EHRCO stated that the FDRE government must fulfill its constitutional obligation to maintain the peace and security of citizens of th

Wolwalo Adigrat University secured their first domestic knockout title, the Ethiopian Cup, by defeating Sidama Coffee 2-0 in the final at Addis Ababa Stadium. This victory also earned them a spot in the 2026/27 CAF Confederation Cup. The match was scoreless at halftime, largely due to Wolwalo goalkeeper Joel Mutakubwa's two crucial saves. Wolwalo broke the deadlock two minutes into the second half with a goal from Ghanaian striker Konkoni Hafiz. Despite sustained pressure from Sidama Coffee, Wolwalo's defense held firm. A potential equalizer for Sidama Coffee was disallowed for a handball violation during stoppage time, and moments later, substitute Beyene Banja sealed Wolwalo's win. This historic win makes Wolwalo Adigrat University the first football club from the Tigray Regional State to lift the Ethiopian Cup. The defeat ended Sidama Coffee's bid for a historic double, as they had recently won the 2025/26 Ethiopian Premier League title, marking their most successful season in club history under head coach Wondimagegn Teshome.
Must ReadEthiopia's Afar Mada’a and Mablo customary legal systems, which emphasize restorative justice and communal harmony, are being considered for inscription on UNESCO's Representative List of the Intangible Cultural Heritage of Humanity. This nomination was finalized during a workshop in Semera, Afar Regional State, and combines dossiers from Ethiopia and Djibouti, highlighting the system's multinational significance for Afar communities in both countries. Omer Nur Arba, vice president of the Afar Regional Government, and Elias Shukur, deputy director general of the Ethiopian Heritage Authority, both underscored the system's role in guiding community governance, fostering peace, and strengthening cross-border ties. Political scientist Mu’uz Gidey Alemu's study indicates the Mada’a system has been maintained for over 350 years by the predominantly Muslim pastoralist Afar people, spanning parts of Ethiopia, Djibouti, and Eritrea. The system, comprising the Mada’a customary law, Mablo arbitration/mediation, and Qadda moral code, handles over 95 percent of local criminal cases where state institutions have limited reach. It focuses on conflict transformation, distinguishing between intentional and unintentional harm, and uses mechanisms like Meglo to prevent revenge cycles. The study also notes the system's institutions, Adanle and Xinto, manage relations with neighboring groups. While acknowledging structural limitations, such as gender provisions, the study suggests reforms to alig
A recent demographic and health survey by the Ethiopian Statistical Service ESS highlights significant shifts in Ethiopia's health, fertility, education, employment, and socio-economic status. The survey, conducted from August 2024 with support from various international organizations, covered 797 Enumeration Areas across the country. It found that 42 percent of Ethiopians are under 14, and many lack basic services, with only 57 percent having access to clean drinking water and 40 percent to electricity. Access to hygiene, clean fuel, and technology remains even lower. While 62.5 percent own farmland, only 10 percent have refrigerators and 3.8 percent own a vehicle. Sanitation has improved, but over a quarter of Ethiopians still practice open defecation. The national total fertility rate has dramatically fallen from nearly six children per woman a quarter-century ago to under four today, driven by increased availability and acceptance of modern family planning methods. However, a stark urban-rural divide persists, with Addis Ababa's fertility rate below replacement level around two children per woman compared to nearly five in rural areas. Childhood survival indicators show progress, with under-five mortality plummeting from 166 to 51 deaths per 1,000 live births, largely due to decentralized immunization and disease management. Neonatal mortality, however, remains stubbornly high, accounting for nearly half of all under-five deaths, with 68 percent of newborns receiving no p
Must ReadThe embassies of Canada, France, Germany, Japan, the Netherlands, Norway, Switzerland, the United Kingdom, the United States, and the European Union Delegation to South Sudan issued a joint statement expressing grave concern over amendments to the Peace Agreement adopted by South Sudan's Transitional National Legislative Assembly. The TNLA's July 1 decision approved amendments to the 2018 Revitalized Agreement on the Resolution of the Conflict in the Republic of South Sudan, revising the transition timeline by removing and deferring key pre-election requirements such as a national population census and the completion of a permanent constitution. South Sudan is scheduled to hold its first general elections in December 2026. Observers note that these amendments were adopted without the full consensus of all original signatories to the peace agreement, raising warnings that the move could lead the country back into conflict. The joint statement called on all parties to commit to an immediate cessation of hostilities.
Must ReadDesalegn Chane, an opposition leader and outgoing Member of Parliament from the National Movement of Amhara NaMA party, stated that protracted conflicts in Tigray, Amhara, Oromia, and Gambella are impacting public safety and national stability. He also warned that rising tensions with Eritrea could lead to another war. Desalegn attributed these issues, along with the rising cost of living, debt distress, education failures, insecurity, and widening ethnic and religious tensions, to shortcomings of the ruling Prosperity Party. He noted that 92% of students failed national exams, indicating a failure by the Ministry of Education, and accused the Prosperity Party of concealing the extent of Ethiopia’s debts. In response, Prime Minister Abiy Ahmed said his party is working to address inherited problems and has established a National Dialogue to resolve them.
Must ReadThe African Union and Russia have agreed to establish annual high-level political consultations, aiming for deeper collaboration on security, trade, and global governance. This commitment follows discussions at the AU Commission headquarters between AUC Chairperson Mahmoud Ali Youssouf and Russian Foreign Minister Sergey Lavrov. They reviewed progress since 2019 and began drafting a new three-year action plan for 2027–2029, to be adopted at the third Russia–Africa Summit in Moscow this October. Both parties emphasized a partnership based on sovereign equality and mutual respect, addressing crises in regions like the Sahel and the Horn of Africa. Russia supported the principle of "African solutions to African problems" and UN-financed frameworks for AU-led peace missions. Russia also reaffirmed its support for Africa's bid for permanent representation on the UN Security Council, and both sides called for reforms to the international financial system to alleviate debt burdens for African nations. They pledged uninterrupted supplies of Russian food and fertilizers and agreed to collaborate with the Africa CDC on Ebola outbreaks. The discussions also highlighted mutual support for Agenda 2063 and the African Continental Free Trade Area. The next high-level consultation is planned for 2027.
Must ReadPrime Minister Abiy Ahmed PhD informed lawmakers that the Ethiopian National Defense Force ENDF is capable of defending Ethiopia's sovereignty against both internal and external threats. He accused the TPLF of conspiring with external actors and engaging in forced conscription in Tigray, sending youth to fight in Sudan. The Prime Minister stated that the federal government is avoiding another conflict in the north despite significant provocation. These comments were made during a parliamentary session convened to review the past year and discuss the 2.34 federal budget proposal for 2026/27.
Must ReadPrime Minister Abiy Ahmed stated that Ethiopia's Prosperity Party intentionally did not field candidates in 15 percent of electoral constituencies in the recent elections. This decision, according to Abiy, was made to encourage broader opposition involvement in governance. He informed lawmakers that the ruling party chose earlier this year to create space for opposition parties, a trend he described as unprecedented in Ethiopia, Africa, or other democratic nations. Despite this, the incumbent party secured a landslide victory, winning 438 out of 486 possible parliamentary seats, representing over 90 percent. The House of Peoples' Representatives has a total of 547 seats, with more than 60 remaining vacant.
Must ReadEthiopia recorded a foreign exchange inflow exceeding USD 38 billion over the past 12 months, according to the Prime Minister. Speaking before Parliament, the Prime Minister attributed this achievement to his administration's economic reforms. Exports contributed USD 11 billion to this total, with gold and coffee collectively generating USD 8.7 billion. The remaining inflow was comprised of remittances, foreign direct investment, and grants.

The Commercial Bank of Ethiopia CBE holds a 70 percent market share in the country's digital finance landscape, according to a report by bank President Abe Sano. Over the past fiscal year, which ended on June 30, CBE facilitated 3.48 billion digital transactions valued at over 22 trillion Birr. The bank also mobilized 707.4 billion Birr in deposits during this period, increasing its total outstanding deposits to 2.4 trillion Birr. This marks the first time a single bank has mobilized such a large amount of deposits in one year, with CBE's total deposits quadrupling in six years. CBE provided 648 billion Birr in credit, with nearly 91 percent directed to the private sector, a significant increase from 10 percent in 2019/20. The bank's total outstanding credit stands at 1.64 trillion Birr, and its non-performing loan ratio is 1.4 percent. CBE's market share is 50.1 percent in deposits, 48.3 percent in credit, 50.1 percent in assets, and 45.4 percent in capital. The National Bank of Ethiopia's Financial Stability Report for 2024/25 highlighted CBE's continued dominance and suggested mergers and acquisitions for other commercial banks, noting that 25 of the 31 banks collectively hold less than 22 percent market share. In comparison, Awash Bank, the largest private commercial bank, reported 467.8 billion Birr in outstanding deposits and 40.7 billion Birr in revenue for 2025/26.
Must ReadEthiopia was omitted from the latest Global Report on Food Crises GRFC because it did not provide acute food insecurity data that met the report's technical requirements. This raises concerns about the country's ability to accurately assess hunger and inform humanitarian responses. The 2026 report, produced by the FAO, WFP, and partners, noted that Ethiopia was among 18 countries where data was either unavailable or did not meet standards. Ethiopia remains vulnerable to food crises, but unlike previous editions, the report does not include estimates for 2025. The report cautions that this omission does not indicate improved food security but rather a decline in global monitoring due to funding shortfalls, access constraints, and difficulties in data collection authorization. The GRFC states that Ethiopia had data in the 2025 report, showing over 27 million people facing high levels of acute food insecurity in 2024, but no updated estimates were available for 2025. The report warns that weakening food security information systems are becoming a humanitarian concern, with shrinking donor funding reducing assessment frequency and coverage. This leaves policymakers and humanitarian agencies without an internationally comparable assessment of Ethiopia's food insecurity, highlighting the need for greater investment in monitoring and restoring regular, consensus-based food security analyses.
Must ReadA new assessment reveals that Europe's coffee sector generated over half a trillion euro in economic output and 251.5 billion euro in Gross Value Added in 2025, despite producing almost no coffee. This contrasts with Ethiopia, which continues to export predominantly unprocessed green beans. The study, titled "Economic Impact of Coffee in Europe," shows that while producing countries like Ethiopia supply the raw agricultural input, the majority of economic activity, employment, and tax revenue is generated after the coffee reaches Europe. In 2025, the EU27 imported 2.9 million tonnes of coffee worth 18.7 billion euro from non-EU countries, with over 97 percent being green coffee. The report indicates Ethiopia's significant reliance on the European market, with 34 percent of its coffee exports destined for the EU plus market, making it one of Ethiopia's largest export destinations for this product. Coffee exports to the EU+ account for 11.8 percent of Ethiopia’s total merchandise exports, underscoring its importance for foreign exchange earnings. The assessment highlights an imbalance, as Ethiopia is one of several coffee suppliers for Europe, but access to the European market is economically crucial for Ethiopia. The study notes that Europe imports almost all its coffee as green beans, with roasting and further processing occurring close to consumer markets. Germany is identified as the largest entry point for extra-EU coffee imports. The report concludes that coffee's economi
Must ReadThe International Monetary Fund's Executive Board recently approved a USD 664 million disbursement for Ethiopia, bringing total support to USD 2.65 billion. This aid package, which includes funds to absorb Middle East conflict shocks, came with a directive for the National Bank of Ethiopia NBE to maintain a tight monetary policy to control inflation. Ethiopia's annual inflation rebounded to 11.7 percent by April 2026, driven by transport and food price increases, after reaching 9.7 percent in February. However, the article argues that relying solely on monetary policy, such as restricting bank loans and raising interest rates, is insufficient to address the country's cost of living crisis. It highlights structural imbalances, including the impact of Birr devaluation on import costs, and severe supply-side bottlenecks in agriculture due to conflict, fragmented trade routes, and inefficient logistics. The author suggests that credit caps harm local manufacturers and SMEs by limiting liquidity needed for production. The article proposes a dual-track approach: the federal government should scale down capital-intensive projects, redirect savings to targeted investments in domestic food productivity, subsidize high-yield seeds and fertilizers for smallholder farmers, streamline transport regulations, ensure security of trade routes, and use increased tax revenues for direct food-security interventions like subsidized state-run grocery depots.
Must ReadThe United States Mission to the African Union USAU announced Washington's intention to cease support for the continuation of United Nations logistical and operational assistance to the African Union Support and Stabilization Mission in Somalia AUSSOM beyond December 2026. In a diplomatic note to the AU Commission, US officials stated that any renewal of AUSSOM's mandate by the UN Security Council must exclude the UN Support Office in Somalia UNSOS. The US argues that billions of dollars in financial contributions over a decade have yielded limited results due to internal rivalries, political infighting, and a failure by Somali leaders to sustain progress against Al-Shabaab and assume ownership of security functions. Since 2007, the US has provided USD two billion to UNSOS and USD 1.6 billion in bilateral support to troop-contributing countries. The USAU emphasized that the US will not support a UNSC renewal of AUSSOM if it includes UNSOS or any UN logistical or operational support. Washington will maintain vigilance regarding threats from Somalia affecting US interests and pledges to uphold bilateral security relationships with regional partners. The communication also directs the federal government of Somalia, federal member states, and clans to coordinate actions against terrorism and for peace. Separately, the European Union has temporarily tightened visa rules for Somali nationals due to insufficient cooperation on repatriation, effective June 25, 2026. This decision mea
Must ReadEthiopia is set to purchase 2,945 shares in the BRICS New Development Bank NDB at a par value of $100,000 per share, totaling $294.5 million, pending parliamentary approval. The Council of Ministers has already endorsed a draft proclamation for Ethiopia's membership. This move aims to integrate Ethiopia into South-South financial mechanisms, securing alternative avenues for development financing, infrastructure support, and macroeconomic stabilization. The NDB, headquartered in Shanghai, was established in 2015 by Brazil, China, Russia, India, and South Africa, and has since expanded to include Algeria, Bangladesh, Egypt, the United Arab Emirates, and Uzbekistan. Ethiopia's membership would grant it a seat on the NDB board. The country would pay 20 percent of its share purchase, or $58.9 million, upfront, with the remainder paid in 14 installments over 13.5 years. Officials indicate that Ethiopia's priority projects in agriculture, energy, and industry, as well as climate finance and renewable energy, will receive attention from the bank's funding systems. Membership would also enable Ethiopia to transact with BRICS members using local currencies, aligning with the NDB's goal to provide 30 percent of its loans in local currencies. By the end of 2024, the NDB had approved $39 billion for 120 projects in member countries.

The Ethiopia Women’s Under-17 National Team has arrived in Ndola, Zambia, for their 2026 FIFA U-17 Women’s World Cup qualifier match against Zambia’s Copper Princesses. The 36-member delegation landed at Simon Mwansa Kapwepwe International Airport at 12h00 and was welcomed by FAZ Competitions Manager Loreen Mulomba. This Saturday's match is the first leg of the third and final round of the CAF qualifiers, with a spot in the 2026 FIFA U-17 Women’s World Cup at stake. Zambia advanced to this stage after defeating DR Congo 7-0 on aggregate, while Ethiopia secured their place by beating Burundi 4-2. The Copper Princesses are aiming for their third World Cup qualification, having previously participated in the 2024 and 2025 editions. The 2026 FIFA U-17 Women’s World Cup, featuring 24 teams, will be held in Morocco from October 17 to November 7, 2026.

Professor Donald Johanson, the paleoanthropologist who discovered "Lucy" Australopithecus afarensis in 1974, recently received an Honorary Doctor of Science Degree from Gondar University. The discovery of Lucy, a three-million-year-old human ancestor, transformed the understanding of early human evolution and highlighted Ethiopia's significance in paleoanthropological research. Johanson, now 83, founded the Institute of Human Origins, currently at Arizona State University. He discussed the honor from Gondar University, acknowledging the blend of religious belief and scientific study in Ethiopia. He emphasized Ethiopia's extraordinary record in human origins research, spanning the last 5 million years. Recalling the moment of discovery on November 24, 1974, in Hadar, Afar, Johanson described finding bone fragments that indicated a partial skeleton of a human ancestor. The skeleton was named "Lucy" after the Beatles song "Lucy in the Sky with Diamonds" and also given the Amharic name "Dinknesh." Johanson highlighted the challenges faced during early expeditions in the Afar region, including logistical difficulties, and praised the crucial support and protection provided by the local Afar people. Lucy provided strong evidence of bipedalism, showing that early ancestors walked upright before developing a large brain. Subsequent discoveries in Ethiopia have continued to refine the human family tree. Johanson noted that while public understanding of human origins was once Eurocentr
Must ReadThe IMF Executive Board completed its fifth review of Ethiopia's Extended Credit Facility ECF arrangement, enabling the country to draw USD 464 million. This marks the halfway point of the four-year program, which aligns with the federal government’s Homegrown Economic Reform program, projected to require USD 10 billion by mid-2028. The IMF's total contributions now stand at nearly USD 2.65 billion, with an additional USD 200 million for Middle East war-related pressures. This approval provides crucial support as Ethiopia prepares for the 2026/27 fiscal year, with a proposed federal budget of 2.34 trillion Birr, a significant increase from the 1.55 trillion Birr budget when the IMF program began in July 2024. The IMF stressed the importance of maintaining a tight monetary stance to control inflation, prudent expenditure management, and sustained revenue mobilization. It also praised efforts to grow tax revenue while cautioning about the impact of the growing tax burden on businesses. Furthermore, the IMF board acknowledged progress in debt restructuring, including an agreement-in-principle with Eurobond holders. This agreement, which includes subscription rights for a new international bond, follows a previous rejection in January and is crucial for Ethiopia's debt treatment under the G20 Common Framework. Nigel Clarke, deputy managing director and chairman of the board, emphasized the importance of completing the debt restructuring process and prudent new debt contraction. H

Alemayehu Sisay, Country Director of Orbis International in Ethiopia, discusses the organization's two decades of work in combating trachoma, the world's leading infectious cause of blindness. Orbis, in partnership with the Ministry of Health and other organizations, has significantly reduced trachoma prevalence in Ethiopia through the implementation of the WHO's SAFE strategy Surgery, Antibiotics, Facial Cleanliness, Environmental Improvement. The organization has distributed over 125 million doses of azithromycin and provided thousands of trichiasis surgeries, leading to a 74 percent reduction in active infections and a 56.5 percent reduction in the blinding form of trachoma. Seventy-two districts in southern Ethiopia have reached the WHO-recommended elimination threshold. Sisay highlights challenges such as sustaining gains, ensuring continuous funding, and maintaining administrative continuity amidst regional restructuring. He emphasizes the critical role of health extension workers and community engagement, particularly in reaching women who are disproportionately affected by the blinding form of the disease. Orbis also focuses on integrating specialized surgical training into existing curricula for ophthalmic professionals and collaborating with WASH organizations to improve facial cleanliness and environmental conditions, which are crucial for long-term elimination.
Must ReadThe Ethiopian Human Rights Council EHRCO released a statement on July 2, 2026, alleging that government armed forces committed human rights violations against residents in the Zayse Woreda of the South Ethiopia Regional State. The organization reported that attacks between June 18 and June 29, 2026, across ten kebeles in the woreda, resulted in ten deaths and three injuries. EHRCO also cited cases of sexual violence, mass arrests, and the looting and destruction of property. The Council stated that the ongoing violence has forced local residents to flee their homes and is a result of unresolved community issues. This follows a similar incident in February involving deaths, injuries, and property destruction, including the killing of local residents and members of the Ethiopian Citizens for Social Justice EZEMA party. EHRCO noted that previous appeals to regional and federal authorities were unsuccessful and has called upon regional authorities, Gamo Zone security forces, and federal stakeholders to halt the violations and initiate legal proceedings against those suspected of abuses. The Council plans to publish a detailed follow-up report.

Addis Ababa, like many rapidly expanding cities, faces challenges including mounting solid waste, air pollution, strained water systems, and increasing climate vulnerability. The city's growth necessitates intelligent solutions, with the circular economy emerging as a key strategy. This model moves beyond the traditional "take, make, use, and throw away" approach by keeping materials in use through reuse, repair, recycling, regeneration, and recovery. This is presented as an urban resilience strategy, enabling a city to withstand shocks and recover stronger. For instance, organic waste, a significant portion of municipal solid waste in many African cities, can be converted into biogas for energy and nutrient-rich digestate for agriculture, reducing harmful emissions and improving sanitation. Similarly, construction materials, often discarded as waste, can be re-used as inputs for new construction. Wastewater reuse and decentralized treatment systems can also enhance water security. Air quality, often linked to waste management, energy, transport, and industry, can be improved through circular economy interventions such as better waste management, biogas use, and recycling. Cleaner air is seen not just as an environmental benefit but as a resilience dividend, leading to healthier and more productive populations. Addis Ababa's urban transformation agenda, by embracing resilience thinking, has an opportunity to design urban systems that are efficient, adaptive, inclusive, and re
Must ReadEthiopia's Ministry of Finance announced an agreement in principle with an Ad Hoc Committee representing investors in its one-billion-dollar Eurobond. This deal, the second such agreement this year, follows the rejection of an earlier proposal in January. The terms, finalized after a month of negotiations, include a detachable warrant instrument, granting investors subscription rights for a new international bond that can be traded independently of the existing 2014 bond. The International Monetary Fund and the co-chairs of Ethiopia’s Official Creditors Committee, China and France, have approved the terms. However, the agreement still requires approval from the remaining members of the Official Creditors Committee. This development offers relief to Ethiopian officials, as the previous agreement was rejected for violating the Comparability of Treatment principle under the G20 Common Framework, where Ethiopia has sought debt treatment for over five years.