July 29- August 3, 2024 The government of Ethiopia announced that a market-based exchange rate will be implemented on July 28, 2024. On July 29, the Commercial Bank of Ethiopia announced its inaugural market-based exchange rate, setting the rate for 1 USD at 74.7 for buying and 76.23 for selling. The Ethiopian foreign exchange market […]
The Ministry of Water and Energy in Ethiopia is taking steps to facilitate private investment in renewable energy generation and distribution. To achieve this, the Ministry collaborated with the International Solar Alliance and organized a consultation in Addis Ababa this week. The primary objective of the event was to promote the widespread adoption of solar […]
The Ethiopian economy is projected to grow by 6.1 percent in 2023, after expanding by 6.1 percent in 2022 and 6.4 percent in 2021/22, according to the projections of the International Monetary Fund’s (IMF) World Economic Outlook report. The report attributes Ethiopia’s robust growth to the recovery of the agricultural sector, public infrastructure investment, and […]
Fitch Ratings, a prominent credit rating agency, has made a significant adjustment by downgrading Ethiopia’s Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) from ‘CCC-‘ to ‘CC’. Simultaneously, the agency has reaffirmed the Long-Term Local-Currency IDR (LTLC) at ‘CCC-‘. This downgrade underscores Fitch’s deepening concerns regarding Ethiopia’s diminishing external liquidity, escalating external financing gaps, and the […]
Following a public sector-led growth model, Ethiopia recorded robust real GDP growth, averaging 10.2% per annum during 2005-2019. However, by 2019, the model started showing its limits, even before the domestic conflict, the COVID-19 pandemic and the Russia-Ukrain war. Real GDP growth decelerated to 8.4% in 2019 and 6.4% in 2022; inflation rose from 5.2% […]
The Ethiopian government and the European Commission have jointly launched the EU’s Multiannual Indicative Programme (MIP) for the period 2024-2027. The MIP will provide EUR 650 million in grant funding to support development programs focused on three priority areas: Green Deal, Human Development, and Governance and Peace. The program is aimed at improving the living […]
The National Bank of Ethiopia (NBE) has announced a significant change in its forex policy to address the country’s rising inflation. The amount of forex that exporting firms can retain after exporting commodities has been increased from 30% to 50%. This measure is aimed at encouraging exporters, particularly those in the manufacturing sector, and is […]
