Despite facing significant macroeconomic and operational hurdles, Ethio Telecom has reported robust financial performance in the last fiscal year, demonstrating resilience amid adversity.

The state-owned telecom giant recorded Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of 76 billion birr, achieving 104% of its annual target. This figure marks an impressive 84% increase compared to the 34.8 billion birr registered at the conclusion of its previous BRIDGE strategy.

Ethio Telecom’s success comes despite numerous challenges, including the weakening of purchasing power due to macroeconomic fluctuations, foreign exchange shortages, infrastructure damages, security problems, cable theft, and operational interruptions. The company also confronted limitations arising from the constrained capacity of domestic contractors, recurrent power outages, and fuel scarcity.

Speaking about the company’s growth, Ethio Telecom CEO Frehiwot Tamiru highlighted the pivotal role played by the company’s digital finance platform, Telebirr. The service registered 7.29 million new users in the fiscal year, pushing the total subscriber count to 54.84 million—achieving 99.7% of its target and representing a 15.3% growth compared to the previous year.

However, Telebirr’s expansion was not without challenges. The platform encountered fraudulent activities related to digital transactions, limitations on bank fund availability, and delays in implementing standardized national procedures for customer verification.

Ethio Telecom said it has collaborated closely with federal and regional authorities to tackle these issues, including increasing reliance on local providers for telecom inputs. Ongoing dialogue with legislators has yielded positive results, accompanied by broad customer awareness campaigns aimed at strengthening protections against fraud.

The company reported paying 43.8 billion birr in taxes to the government during the fiscal year. Additionally, $23.5 million (approximately 2.41 billion birr) was allocated for loan repayments, and 12.6 billion birr was distributed as dividends to the government.

Telebirr’s contribution goes beyond facilitating digital money transfers; it fills a critical gap in financial inclusion by offering accessible mobile money services. Its extensive network of self-help channels, agents, and service centers across Ethiopia enables citizens to conduct transactions securely and conveniently, even in areas underserved by traditional banking infrastructure.

According to the company’s reference to the GSMA Global Mobile Money Report (April 2025), money transfers constitute 28% of the global mobile money transaction value. Telebirr has outperformed this global benchmark, with money transfer transactions representing 35.8% of its total transaction volume in 2024/25.

Ethio Telecom’s solid financial performance coupled with Telebirr’s sustained growth reaffirms the company’s vital role in Ethiopia’s digital transformation agenda. These achievements align with its ambitious three-year lead growth strategy focused on expanding digital services and financial inclusion nationwide.

Nyala Insurance S.C. (NISCO) has signed a memorandum of understanding with Global Bank Ethiopia and Kacha Digital Financial Service to provide digital insurance premium financing services at an event held at Check-Inn Hotel on July 22, 2025.

With over 30 years of experience in the Ethiopian insurance sector, Nyala Insurance is now pioneering a digital transformation that allows customers to purchase car insurance coverage directly from their mobile devices eliminating the need to visit a physical branch. Through this service, users can buy policies anytime, anywhere, via their phones.

Kacha Digital Financial Service provides the technology and application platform for the service, with Global Bank Ethiopia offering access to premium loans for customers who choose to pay in installments. The Kacha app can be downloaded from the Google Play Store or Apple App Store for access to the service. Flexible loan repayment terms are available, with choices of 1, 3, 6, or 9 months based on customer preferences.

During the signing ceremony, Tegegn Masresha, Chief Customer Management Officer at Nyala Insurance, emphasized the company’s continuous initiatives to improve customer access and service delivery.

“Nyala Insurance is dedicated to collaborating with strategic partners to enhance and innovate its services for broader customer access. The Memorandum of Understanding signed today reflects this dedication. The introduction of the premium loan service is a major step towards increasing accessibility and affordability of insurance for our clients.”

Similarly, Mekdes Bekele, Director of Digital Banking at Global Bank Ethiopia, emphasized that the bank is dedicated to providing efficient, user-friendly, and trustworthy services using cutting-edge digital solutions. She highlighted that the partnership on the digital insurance project aligns with the bank’s strategic focus on digital financial services and expressed pride in contributing to enhancing insurance accessibility nationwide.

Ato Abraham Tilahun, CEO of Kacha Digital Financial Service, emphasized on his part that that Kacha is dedicated to ensuring that digital financial services are available to everyone. The collaboration with Nyala Insurance tackles a significant obstacle by providing customers with easier access to insurance coverage through digital solutions.

The increasing costs of insurance premiums in Ethiopia have created challenges for individuals seeking coverage, leaving them vulnerable to financial risks in unforeseen circumstances. The introduction of this digital insurance and premium loan service aims to bridge this gap by providing cost-effective and convenient protection through mobile platforms. This initiative allows customers to easily obtain insurance coverage without the need for in-person visits to branches, representing a significant advancement in expanding insurance accessibility across the country.

Nyala Insurance S.C. (NISCO) is one of the best-performing companies in the Ethiopian insurance industry and is known for providing insurance products tailored to customer needs and wants.

NISCO currently operates around 50 customer experience hubs (branches) across the nation, with a paid-up capital and assets of Birr 1.2 billion and Birr 4.5 billion, respectively.

The inaugural “Moroccan-Ethiopian Social and Solidarity Economy Week” recently concluded in Addis Ababa, highlighting the expanding partnership between Morocco and Ethiopia focused on enhancing women’s participation in agriculture. Held under the theme “Sustainable Entrepreneurship in Agriculture: Cooperation by Women,” the weeklong event served as a dynamic platform for collaboration, showcasing a shared vision of empowering female entrepreneurs across both nations.

Jointly organized by Ethiopia’s Ministry of Women and Social Affairs and the Embassy of the Government of Morocco in Ethiopia, the event brought together women’s cooperatives and businesses from both countries to exchange experiences, build networks, and forge lasting partnerships. A key highlight of the week was an exhibition featuring a wide array of agricultural products produced exclusively by women entrepreneurs, demonstrating their creativity and economic potential.

At the opening ceremony, Ergoge Tesfaye, Ethiopian Minister of Women and Social Affairs, underscored the deep cultural and historical ties between the two countries while emphasizing Ethiopia’s commitment to women’s economic empowerment. She highlighted that over 8 million Ethiopian women are organized into various cooperatives, collectively mobilizing more than 26 billion birr, thereby making a significant contribution to the national economy. Minister Tesfaye called for continued support in technology transfer and financial resources to further amplify these achievements.

Moroccan Ambassador Nezha Alaoui M’hammadi praised the initiative for bringing the two countries closer, focusing particularly on advancing women’s economic roles. She announced that eight Moroccan cooperatives and two prominent start-ups have committed to engaging in meaningful exchanges with Ethiopian counterparts to strengthen joint efforts.

Sara Yirga, founder and CEO of YA Coffee & Cherish Addis Women in Coffee, emphasized that the Social and Solidarity Economy (SSE) is not a fleeting trend but a transformative movement fostering equity, inclusivity, and dignity—especially for women, youth, and marginalized groups. She lauded Morocco as a continental leader in SSE and acknowledged Ethiopia’s recent strides in economic reforms that have empowered women entrepreneurs, particularly in the coffee sector. Yirga stressed the importance of collective investment and co-design to build inclusive economies where women become “architects of change.”

Nabila Tebur, General Director of BADEE, Innovx Branch of OCP Group, thanked the Ethiopian and Moroccan authorities for their collaborative support. She described BADEE as an institution dedicated to social business investment, blending profitability with social influence and prestige. Through a “co-create” approach, BADEE partners with female-led cooperatives, small businesses, and startups to develop flexible financing solutions, broaden market access, and build strong branding.

Tebur emphasized that women are “not just users, but leaders,” highlighting the creativity and courage they bring to agriculture, a sector that she described as fertile ground to “sow the seeds of change.”

Throughout the event, both Morocco and Ethiopia showcased their public policies aimed at promoting gender equality. These efforts include legal frameworks, awareness campaigns, vocational training initiatives, and direct support for women entrepreneurs. Special recognition was given to OCP Group—a global leader in soil fertility and plant nutrition—for its significant investments and land-based projects that specifically focus on empowering women and youth.

The “Moroccan-Ethiopian Social and Solidarity Economy Week” has thus not only celebrated the achievements of women in agriculture but has also paved the way for deeper bilateral cooperation and shared innovation, positioning women as key drivers of sustainable development in the region.

The government is preparing to launch a new strategy to enhance financing for agriculture and housing, part of a broader initiative to improve financial inclusion and tackle economic challenges at the household level.

At a financial forum on Tuesday, July 22, Central Bank Governor Mamo Esmelealem Mihretu announced that an initiative focused on agriculture and housing financing would be introduced in the coming week.

This announcement follows Prime Minister Abiy Ahmed’s recent statements in parliament, where he highlighted the necessity for government intervention in the housing sector, akin to the support provided for the Grand Ethiopian Renaissance Dam (GERD).

Governor Mamo explained that the Ministry of Agriculture (MoA) and the National Bank of Ethiopia (NBE) have devised a strategy to enhance financing for agriculture, which, along with manufacturing and small businesses, has historically received a limited share of total credit allocations.

“This strategy is part of our effort to expand financial inclusion,” Mamo said. “In the current fiscal year, we aim to improve access to finance for agriculture, housing, small and micro enterprises, fintech, and uncollateralized funding.” He noted that additional details about the new initiative will be shared in the coming weeks.

The recently amended banking business proclamation, ratified in December 2024, permits the establishment of specialized banks tailored to sectors such as agriculture, housing, exports, and small businesses. This regulatory change is expected to attract greater investment in niche financial services.

Financial institutions like Goh Betoch Bank, which operates as a commercial bank but focuses on specific sectors, have advocated for a more supportive regulatory framework.

Goh, the country’s only mortgage-oriented bank, has requested long-term financing options, resource mobilization mechanisms, and the ability to create subsidiaries dedicated to housing development.

Experts have long contended that agriculture, despite being a cornerstone of Ethiopia’s economy, receives inadequate financing—accounting for less than 10% of annual loan disbursements.

A few years ago, the MoA proposed establishing a dedicated agricultural bank, and discussions on this topic are ongoing at the macroeconomic level.

Additionally, the government has announced plans to create a Housing Finance Corporation and a Housing Fund to provide sustainable solutions for housing financing.

The corporation, managed by the NBE, will oversee the fund, which will be financed through a 1.5% deduction from employee and employer contributions, as well as 5% of annual capital budgets from central and regional governments. Cities will also play a crucial role by facilitating land access for development.

Experts assert that these initiatives demonstrate the government’s commitment to addressing critical financing gaps and promoting inclusive economic growth.

Finance Forum

The Ethiopian government has urged the private sector to take a leading role in significant economic activities as part of its ongoing macroeconomic reforms.

Finance Minister Ahmed Shide emphasized that the government will focus on key development areas while encouraging private investment in other sectors.

“We cannot engage in all economic areas, so the private sector should step in to drive economic development as part of the reforms initiated a year ago,” he stated during a discussion with private sector representatives.

This message was echoed at a finance forum, where Water and Energy Minister Habtamu Itefa encouraged private investors to capitalize on opportunities in the energy sector, which has become increasingly lucrative due to recent reforms.

Mamo expressed optimism about stabilizing inflation, predicting it will decline to single digits in the current fiscal year, which began two weeks ago.

The latest report indicates that inflation stands at 13.9 percent.

The government’s emphasis on private sector involvement reflects a continued shift toward market-oriented reforms aimed at stimulating growth and ensuring economic stability in response to demands from international partners. Additionally, international stakeholders have urged the government to incorporate the private sector into the policy-making process.