Ethiopia is sounding the alarm on persistent obstacles hindering its skilled seafarers from achieving full international recognition, as the country aims to become a major hub for the world’s maritime workforce. The urgent appeal was made at the African Maritime Conference 2025, held in Ethiopia under the banner “Africa, the Next Frontier of Global Crewing.”

Despite Ethiopia’s growing reputation for robust maritime training, the conference exposed critical gaps between local qualification systems and international employment structures. These mismatches, particularly regarding required ‘Sea Time’ internships and global ‘Certification Visas,’ are stalling the careers of thousands of Ethiopian and African maritime graduates, even as the world faces a shortage of qualified ship officers.

Francois Joubert, CEO of YCF Manning Limited, highlighted the problem: while over 150 maritime academies operate across Africa and student enrollment is rising, gaining essential sea time remains a bottleneck. “Countless young people are ready to graduate today but cannot find ships willing to take them on their first voyage,” Joubert said, urging shipowners worldwide to provide two training berths per vessel for African students—a move he believes would trigger unprecedented labor turnover in the international shipping industry.

Obtaining internationally recognized certification presents a second major hurdle. With only about half of African countries appearing on the International Maritime Organization (IMO) whitelist, many graduates lack the formal accreditation required for global employment. This recognition gap is exacerbated by difficulties in securing certification visas needed for placement on international ships.

Currently, Ethiopia—despite lacking a direct seaport—boasts more than 7,000 active seafarers in global fleets and aspires to be ranked among the world’s top five shipping nations. Fraol Tafa, Deputy Director General of the Ethiopian Maritime Authority, stressed Ethiopia’s commitment to “maritime awareness that isn’t blinded by the lack of sea access.” He pointed to the country’s two maritime training institutes and oversight by the European Maritime Safety Agency (EMSA) as evidence of Ethiopia’s high-caliber training and management standards.

The conference concluded with calls for enhanced international partnerships and practical solutions to bridge the gap between African maritime training and the global crewing market, allowing both Ethiopia and the continent at large to respond to escalating global maritime labor demands.

A major Chinese energy firm is set to transform the Horn of Africa’s energy landscape, positioning the region as a new natural gas hub. Central to this ambitious vision is an innovative floating facility in Djibouti that will liquefy and export hundreds of thousands of cubic meters of Ethiopian gas daily.

This landmark export project is a vital part of Ethiopia’s comprehensive $6.4 billion investment in its emerging hydrocarbon sector. In a significant effort to harness its vast natural resources, the Ethiopian government has launched four integrated hydrocarbon projects, marking a historic milestone in exploration and development that began nearly a century ago.

The official inauguration ceremony took place in Calub, located 113 km from Gode town in the Somali Region, symbolizing the start of a new era for the nation’s energy and industrial capabilities.

At the heart of this national initiative is a new natural gas industrial complex in Calub, which will begin production with an initial capacity of 200,000 cubic meters of refined gas per day. A planned second phase will significantly boost this output to 600,000 cubic meters daily.

A strategic partnership with Djibouti is crucial to the export strategy. Following a recent high-level meeting between the Djibouti Ports and Free Zones Authority (DPFZA) and a delegation from the Chinese GCL Group, plans were finalized to transport natural gas from Ethiopia’s Ogaden region to the coast via the Damerjog Port.

A dedicated floating storage barge (FSB) will be installed at Damerjog for the liquefaction and storage of natural gas before export, enabling large-scale international shipments. GCL expects production from its project to reach 220,000 cubic meters per day.

To generate immediate export revenue, a sophisticated logistics operation involving a fleet of 120 trucks will manage gas transportation between the production site and Damerjog port.

The DPFZA confirmed that most of these trucks are already in place and will soon be operational, providing a critical revenue stream during the estimated one-year construction period required for a permanent pipeline.

The Damerjog Industrial Park, featuring a common-user oil jetty capable of accommodating Aframax-class vessels, is a cornerstone of this strategy, solidifying Djibouti’s role as a burgeoning regional energy and logistics hub.

The projects are supported by significant hydrocarbon reserves in the Calub and Hilala gas fields, first discovered in 1972. Following a major discovery in 2018, GCL Group appraised the recoverable gas reserves in the Calub field to be between 6 and 8 trillion cubic feet (TCF). Additionally, a substantial oil field near Hilala is estimated to contain approximately 323 million barrels. After a previous license was revoked, a new agreement signed in April 2024 commits GCL to develop these resources within a strict 14-month timeframe.

The overarching project design extends beyond raw material export, envisioning comprehensive industrial integration within Ethiopia, including the establishment of power generation facilities with a capacity of 1,000 megawatts.

An oil refinery will be constructed at the Gode Industrial Park in two phases over three years, ultimately achieving a processing capacity of 2.5 million metric tons per annum.

Simultaneously, an agreement with the Dangote Group will establish a major fertilizer complex in Gode for producing urea and ammonia, further supporting the agricultural sector. This facility will be supplied by a dedicated 108-kilometer pipeline from the Calub gas field and aims for an annual production output of 3 million metric tons. This initiative seeks to significantly reduce Ethiopia’s substantial foreign currency expenditure on fertilizer imports, thereby enhancing national economic security.

Zemen Bank leaders have revealed an ambitious strategic plan to expand into the investment banking and capital markets sector, marking a transformative step in Ethiopia’s evolving financial landscape. This announcement follows the bank’s historic performance for the 2024/2025 fiscal year, in which Zemen Bank posted a net profit of Birr 5.87 billion, showcasing formidable financial strength and asset quality.

Notably, the bank maintained a low non-performing loan (NPL) ratio at 2.81% as of June 30, 2025—well below the National Bank of Ethiopia’s 5% threshold and Zemen’s own internal benchmark of 4%. The total amount of non-performing loans stood at Birr 1.19 billion, reflecting the bank’s disciplined credit management and customer-focused approach, including door-to-door service delivery.

In a statement to shareholders, Enye Bemir, Chairperson of the Board of Directors, emphasized that the bank’s total income reached Birr 14.4 billion for the fiscal year, underscoring one of the strongest profit margins in the bank’s history. Total assets rose by nearly 50% to Birr 88.6 billion, and compiled deposits climbed to Birr 64.67 billion. The bank’s total capital increased by over 50%, reaching Birr 18.43 billion, with a capital adequacy ratio of 37%, significantly surpassing regulatory requirements.

Eradicating financial weaknesses has positioned Zemen Bank to capitalize on Ethiopia’s financial sector reforms, including the upcoming launch of securities trading and expanded regulatory frameworks. CEO Dereje Zebene noted the reforms present both opportunities and challenges, but Zemen Bank views these as chances not only for compliance but to lead innovation and growth in the market.

Dereje outlined three strategic priorities underpinning the bank’s growth: bolstering capital to support sustainable expansion and resilience; advancing digital transformation by enhancing infrastructure, integrating artificial intelligence solutions, and partnering with fintech firms; and strengthening customer-centric approaches by elevating service standards and building staff capacity through training and leadership development.

Zemen Bank’s preparation to enter investment banking complements Ethiopia’s broader modernization agenda, signaling a commitment to expanding financial services and ensuring long-term competitiveness in a rapidly changing economic environment. With its prudent management and forward-looking strategy, Zemen Bank is poised to become a key player in Ethiopia’s deepening financial sector transformation.

By Eyasu Zekarias

Ethiopian poultry and dairy producers are anxiously awaiting a government decision to lift taxes on animal feed, a move expected to be finalized by the end of October and seen as vital to curbing surging prices in the livestock sector. The anticipated tax relief, hinted at by top officials, could provide much-needed respite from crippling production costs that have driven prices for meat, milk, and eggs to unprecedented levels, making essential animal products unaffordable for many consumers.

Alemayehu Mekonnen, Senior Advisor at the Ministry of Agriculture, confirmed the urgency of the issue. “The main factor behind the doubling or even tripling of prices for milk, meat, eggs, and poultry is the price of animal feed,” he noted. Feed currently accounts for 70–75% of total operational expenses in the poultry and livestock industry, a strain sharply amplified by existing taxes on imported feed inputs.

The government’s proposal to exempt animal feed from taxes is expected to be placed on the Cabinet’s agenda by the end of October. Stakeholders hope the exemption, if approved, will ease the “capacity crisis” that has left consumers unable to access affordable animal products. Previous tax reform efforts have often faltered due to lack of continuity, making this round of policy change especially critical for sector stability.

The tax reform comes amid broader efforts to modernize Ethiopia’s vast livestock sector. The government is piloting the Animal Identification and Tracking System (LITS), a technology previously limited to foreign animals but now being rolled out domestically. LITS will allow registered animals to serve as security for bank loans and obtain insurance coverage, with pilot projects already underway in areas like Borena.

Recent macroeconomic reforms have also yielded positive results. Alemayehu highlighted record-breaking foreign exchange earnings from livestock exports, attributing the success to policy changes narrowing the gap between official and parallel market exchange rates. “Removing the incentive for smuggling by reducing price differences has made a big difference,” he explained.

Government data shows that Ethiopia exported 627,000 animals in the past year, far surpassing previous records. A shift toward public-private partnerships has unlocked new export markets, notably for heat-treated meat bound for China.

At the same time, the Ministry of Finance’s new Directive No. 1006/2024 is driving a comprehensive review of value-added tax (VAT) exemptions. While the VAT exemption for animal feed was temporarily removed, the government has reintroduced concessions on select agricultural and essential food products such as grains, agricultural chemicals, and bread.

Sector stakeholders remain focused on the imminent Cabinet decision, which they hope will bring the price stability needed to keep the poultry and dairy industries afloat. The upcoming African Animal Husbandry Exhibition and Congress, opening in Addis Ababa on October 30, will offer further opportunity for industry players from 14 countries to discuss the way forward for Ethiopia’s livestock sector.