Ethiopia has launched a landmark digital system designed to overhaul governance and combat entrenched corruption in its construction industry. The Ethiopian Construction Authority (ECA) on Friday inaugurated the Construction Regulation Information System (CRIS), a comprehensive platform aimed at replacing the fragmented, opaque, and manual processes that have long hindered efficiency and fueled malpractice in the sector.

The platform targets critical pain points such as building permit approvals, compliance certifications, and project registrations—procedures that were previously handled through disconnected paper-based systems. According to officials, this outdated approach created fertile ground for delays, inflated costs, poor oversight, and what ECA Director General Mesfin Negewo described as “catastrophic malfunctions.”

Developed in collaboration with the Information Network Security Administration (INSA), CRIS was unveiled in a ceremony that underscored its strategic importance. Mesfin compared the initiative to national milestones like the Grand Ethiopian Renaissance Dam, framing it as a structural reform with far-reaching economic impact. “CRIS will enable the Authority to execute its mandate with clarity, efficiency, and accountability,” he said, adding that it would help catalyze national economic growth through transparent and fast service delivery.

Ten months of preparatory work went into the platform’s design, with ECA citing the need to eliminate double registrations, inconsistent records, and reliance on informal information exchanges between departments. One of CRIS’s cornerstone features is the Project Registration Management System (PRMS) module, which serves as a centralized digital hub for managing all registered construction projects. This module offers a single entry point for stakeholders—ranging from project owners to regulatory officers—ensuring that compliance and accountability are embedded from the start.

Officials say the system will automate basic processes, cut administrative burdens, and reduce opportunities for bribery or procedural manipulation. It also has potential to integrate with Ethiopia’s education, tax, and national identification databases, enabling a complete, real-time view of sector activity.

Minister of Urban and Infrastructure Development Chaltu Sani said the new system represents a critical step toward “a sustainable, complete, transparent, and unified digital management framework” for construction oversight nationwide. She emphasized that CRIS will help ensure projects are delivered on time and within budget, enhancing the sector’s role in driving GDP growth.

By consolidating records of projects, registered professionals, consultants, and contractors, the ECA anticipates improved data-driven policymaking and sector regulation. The authority maintains that CRIS will not only solve historical inefficiencies but also serve as a long-term driver for sustainable development, accountability, and modernized infrastructure delivery in Ethiopia’s rapidly expanding construction landscape.

Ethiopia, one of Africa’s fastest-growing economies, is facing structural barriers that threaten its long-term export ambitions, according to the newly released African Export Competitiveness Report 2024 (AEC). The study identifies the lack of “demand sophistication” in the domestic market as a central factor hindering the country’s ability to develop high-value, diversified exports.

Measured under the African Export Competitiveness Index (AECI), demand sophistication reflects the extent to which local consumers drive innovation by requiring more complex, higher-quality goods. Ethiopia scored just 12.06, placing it among the continent’s lowest performers—above only Mauritania (10.13) and Niger (9.70). Analysts warn these figures signal insufficient pressure on manufacturers to innovate for both domestic and global markets.

By contrast, countries such as South Africa (94.76) and Namibia (65.74) lead the index, driven by strong, high-income urban markets that demand advanced goods and services. Experts note that meeting such domestic demand equips local producers with the skills, technology, and production standards needed to compete internationally. In Ethiopia, however, the report finds “opposite trends” in urbanization and income concentration, limiting the emergence of such markets.

Development economist Kidane Tekeste (PhD) said the lack of a sophisticated domestic market structure undermines Ethiopia’s export competitiveness and could weaken economic security in the long term. “If the domestic market does not demand high-value products, firms have no strong incentive to innovate, and the export basket remains limited,” he noted.

The AEC 2024 report also highlights Africa’s underperformance in global trade, with the continent’s goods exports accounting for only 2.67% of the global total. Among the 40 countries assessed, only 17 scored above the average index score of 34.65. South Africa tops the continent at 70.79, followed by Morocco and Mauritius, while Ethiopia remains well below the median.

The study stresses that export challenges in Africa are not solely external. Structural and internal obstacles—such as poor transport and logistics networks, complex regulatory systems, and bureaucratic inefficiencies—raise the cost of doing business and reduce competitiveness. The report proposes a dual approach: accelerating regional integration through frameworks like the African Continental Free Trade Area (AfCFTA) and implementing gender-responsive policy reforms to widen participation.

Ethiopia is identified as a critical player in realizing the AfCFTA’s vision of a unified continental market. The report urges investments in infrastructure, improved governance, and stronger export promotion policies to unlock its potential. Gender inclusion is also emphasized, with data showing women make up 60–70% of Africa’s cross-border informal traders but contribute only 20% to total export value.

According to the AEC, bridging this participation gap is both a social equality goal and an economic imperative. Implementing protocols such as the AfCFTA’s Trafficking in Women and Youth provision could expand opportunities for women traders, strengthen value chains, and boost overall export capacity.

The findings present Ethiopia with a clear challenge: without cultivating a more sophisticated and innovative domestic market, the path to competitive, high-value exports will remain elusive—limiting the country’s role in Africa’s broader trade transformation.

Wegagen Bank has reported strong financial performance for the 2024/25 fiscal year, posting a pre-tax profit of 3.85 billion birr while maintaining its Non-Performing Loan (NPL) ratio within the National Bank of Ethiopia’s (NBE) regulatory threshold of below 5 percent. The results were released during the Bank’s 32nd Ordinary General Meeting of Shareholders held on October 7, 2025.

According to its annual report, Wegagen’s total assets increased by 29 percent, climbing from 65.7 billion birr in the previous year to 84.7 billion birr. The bank, which is owned by 14,871 shareholders, also reported robust loan portfolio expansion, with total loans and prepayments rising by 18 percent to reach 53.5 billion birr.

Board Chairperson Abdishu Hussein attributed the performance to the strategic focus on the bank’s core lending activities, achieved while maintaining disciplined risk management. “Our steady credit growth has been guided by prudent lending practices that align with the NBE’s regulatory standards,” Abdishu said. He added that the low NPL ratio demonstrates Wegagen’s ability to manage growth effectively while preserving portfolio quality.

The continued profitability also boosted returns for shareholders, with earnings per share rising to 46.10 percent and Return on Average Equity (ROE) reaching 25.3 percent. Capital adequacy remained strong, with a ratio of 14.97 percent—nearly double the central bank’s minimum requirement of 8 percent.

The detailed breakdown of the bank’s 53.5 billion birr lending portfolio shows diversified exposure across key economic sectors. The import sector led with a 25 percent share, followed by domestic trade and services (18 percent), export trade (16 percent), manufacturing (15 percent), and construction (15 percent). This portfolio composition underscores Wegagen’s alignment with Ethiopia’s broader economic development priorities.

Wegagen’s deposit base also surged by 28 percent to 66.5 billion birr, supported by a 20 percent increase in its customer base. The bank added 737,712 new customers during the year, bringing its total account holders to over 4.37 million. International banking operations performed strongly despite global trade challenges, generating 273 million U.S. dollars in revenue.

The bank’s total capital grew by 39 percent to 12.8 billion birr, driven primarily by a 2-billion-birr increase in paid-up capital, which brought total paid-up capital to 7 billion birr. Wegagen continues to make strides as a pioneer in Ethiopia’s financial sector, having been the first company listed on the Ethiopian Securities Exchange (ESX).

Wegagen also expanded its presence through the launch of Wegagen Capital Investment Bank S.C., the country’s first licensed investment bank. The report noted steady growth across digital and branch networks: mobile banking subscribers reached 3.4 million, cardholders increased by 29 percent to 369,872, and the physical branch network expanded to 455 locations, supported by 398 ATMs and 467 sales terminals.

The Addis Ababa Environmental Protection Authority (EPA) is set to begin enforcing a new federal directive targeting emissions from aging vehicles, in a move aimed at curbing pollution in Ethiopia’s capital. The directive, issued by the Ministry of Transport and Logistics (MoTL) under the title Directive on Vehicle Emission Pollutant Control, introduces stricter environmental standards and penalties for non-compliance, including the possible permanent suspension of vehicles that fail to meet requirements after an initial grace period.

Dida Diriba, General Manager of the city’s EPA, confirmed that the authority is fully prepared to implement the regulation in coordination with the Transport Bureau, Traffic Police, and traffic management agencies. “Gas emission is a key challenge we are now prioritizing,” Dida told Capital. “A standard has been set, and every vehicle must now possess a certificate of verification. We will also conduct instant inspections, similar to alcohol tests, to ensure compliance.”

As part of the broader campaign, the government has also halted the importation of used cars, a measure intended to reduce the number of high-emission vehicles on the roads. Authorities plan to work closely with garages to carry out the necessary mechanical and technological upgrades needed to meet the new standards. The directive is expected to take effect this week.

In line with the government’s push for cleaner transportation, local company Eco Tech Solution plc has introduced the “Combustion Optimizer,” a fuel efficiency and emissions reduction device manufactured by Italy-based Supertech. The aftermarket device is designed for both gasoline and diesel engines, improving fuel combustion efficiency by using detergents to clean critical engine components. This process, according to the manufacturer, enhances fuel burn, cuts unburned hydrocarbon emissions, and improves fuel economy.

Supertech’s Commercial Director, Luigi Salemi, said the device has been available for a decade in overseas markets and has been particularly effective in countries with older vehicle fleets. “We see significant potential in growing economies like Ethiopia, where cars are typically older than in Europe or North America,” Salemi told Capital. He confirmed the company had engaged with Ethiopian authorities and chosen Eco Tech Solution as its local partner based on its capability to oversee a project-based rollout.

Eco Tech Solution’s Marketing Manager, Nahom Mesfin, said the device can reduce carbon emissions by up to 80% and cut fuel consumption by around 20%, aligning with the government’s new environmental requirements. To ensure both reliability and efficacy, the company will avoid direct-to-consumer sales. Instead, products will be distributed exclusively through a network of trained agents and licensed garages.

“We are providing specialized training for technicians at garages and vehicle inspection centers to ensure the device is installed correctly,” Nahom said. “This controlled distribution model is crucial for guaranteeing the technology’s effectiveness for consumers and for delivering the intended environmental impact.”

With both regulatory enforcement and technological solutions moving in tandem, officials and market players hope the combined effort will accelerate Addis Ababa’s transition toward cleaner, more sustainable urban transportation.