The Ethiopian Human Rights Commission (EHRC) has issued a stern warning to Ethiopian companies aiming to access the European Union (EU) market, emphasizing that respect for human rights will be a mandatory requirement for international trade.

Chief Commissioner Berhanu Adello stated that companies engaging in human rights violations—such as denying workers’ rights to organize or employing underage children—will face significant barriers to entering global markets, particularly the EU. “It will be difficult for such companies to move freely on the international market,” he cautioned.

The EHRC highlighted that “Business and Human Rights” is an increasingly critical global issue and announced plans to conduct its own research in this area to align with mounting international expectations.

This warning follows new EU regulations set to take full effect by 2026, which impose stricter checks on companies’ human rights records. Key among them is the Corporate Sustainability Due Diligence Directive (CSDDD), effective since July 2024, requiring large companies to identify and mitigate human rights and environmental harms in their operations and supply chains. The EU Forced Labor Regulation (FLR), effective from December 2027, will prohibit products made with forced labor from entering the EU market.

Ethiopian businesses, especially those in the coffee sector—the country’s major export to Europe—must therefore ensure full compliance with these human rights standards to maintain market access.

The EHRC’s warning is underscored by its recent Human Rights Situation Report 2024/25, which details ongoing concerns in Ethiopia. These include frequent violations of the right to life, restricted operations of civil society organizations, and conflict-driven disruptions affecting property, infrastructure, and economic activities. Natural disasters and food insecurity, exacerbated by conflicts and rising prices, further threaten social and economic rights. The report also highlights educational challenges, with over 4.5 million children out of school in Amhara and 1.2 million in Tigray due to conflict and insecurity.

As the EU deepens its commitment to ethical and sustainable trade, Ethiopian companies face growing pressure to respect human rights both at home and in their international dealings. The EHRC’s call thus signals a pivotal moment for Ethiopian businesses to prioritize human rights as essential to sustaining and expanding access to key global markets.

UNICEF’s Humanitarian Action for Children (HAC) plan for Ethiopia in 2025 is facing a critical funding deficit, placing the delivery of crucial humanitarian aid at risk. As of June 2025, only $77.3 million has been received against an urgent requirement of $493.3 million, leaving a staggering budget gap of over $415 million — about 84% of the plan’s total financing not yet secured.

This shortfall impacts all sectors of humanitarian aid with devastating consequences for vulnerable populations, particularly children, women, and youth. The Water, Sanitation, and Hygiene (WASH) sector is gravely underfunded, needing $142.9 million but experiencing an 89% funding gap. Similarly, the nutrition sector, vital to combating malnutrition and safeguarding child health, requires $125.7 million but faces an 83% deficit. Child protection programs, which safeguard children in conflict and disaster settings, have a funding shortfall of 90%, with about $56 million urgently needed to maintain lifesaving services. Other critical sectors including health, education, and social policy are underfunded by approximately 71%, 88%, and 83%, respectively.

The funding crisis coincides with a worsening public health landscape in Ethiopia, where multiple epidemics compound humanitarian challenges. Cholera outbreaks remain active, with 4,373 reported cases and 42 deaths between January and May 2025 in the Amhara and Gambella regions alone. Authorities have identified holy water pilgrimage sites in Amhara as epicenters of transmission, where thousands gather, heightening infection risks. Malaria continues to be a major health burden, recording more than 2.4 million cases and 103 deaths in the same period, predominantly concentrated in four regions, while measles and mpox outbreaks add to the strain on fragile health systems.

Further compounding the situation, ongoing conflict and natural disasters have caused widespread internal displacement, severing access to essential services in many hard-to-reach areas. This displacement exacerbates vulnerabilities, particularly for children, whose survival and development depend heavily on uninterrupted humanitarian assistance.

Despite these challenges and the funding shortfall, UNICEF’s efforts have positively impacted millions. From January to June 2025, UNICEF reached over 35 million people across Ethiopia through community engagement, health services, education programs, and social protection activities. This outreach includes more than 31,000 children with disabilities, ensuring they receive specialized support. Additionally, over 3,200 health professionals and religious leaders have been trained to improve communication and education on health issues—helping reach approximately 3.7 million individuals with vital information.

UNICEF expressed deep appreciation to generous donors who have contributed to the 2025 HAC appeal, including the Central Emergency Relief Fund (CERF), the European Commission’s Directorate-General for Humanitarian Aid and Civil Protection (ECHO), the German Federal Foreign Office, Japan, Sweden, the U.S. Office for Population, Refugees and Migration (PRM), Global Affairs Canada, and the Republic of Korea. However, UNICEF emphasized that without sustained and increased funding, the agency’s ability to deliver timely and effective aid will be compromised, jeopardizing the wellbeing of millions of Ethiopia’s most vulnerable.

Habesha Breweries S.C. has officially extended an offer to its shareholders to sell their shares at 5,900 birr each, a move that comes amidst ongoing controversy over the company’s management decisions and its registration process on the Ethiopian Securities Exchange (ESX).

The offer—which includes a generous 34% premium above an earlier Deloitte valuation—is part of the majority shareholder Bavaria Overseas Breweries’ (BOB) request to purchase shares from local Ethiopian shareholders. According to company communications, the sale period has been extended until August 31, 2025, to allow interested shareholders more time to participate. Shareholders are urged to visit the company’s Shareholder Relations Division to sign sale and purchase agreements under the terms outlined.

This buyout offer follows sharp disagreements among shareholders about company actions during this transitional period. Local shareholders holding roughly 63.41% of the shares have signed contracts agreeing to the sale, but some Ethiopian shareholders have expressed serious concerns. Previously, shareholders were told that share transactions would be suspended until the company’s ESX listing—expected to be completed by November 2025 under the oversight of CBE Capital Investment Bank—is finalized.

The core of the dispute arises from allegations that while minority shareholders are restricted from converting dividends into capital or accessing the stock market, the majority owner Bavaria is being afforded a special opportunity to increase its stake. Some shareholders argue that these actions lack legal basis and unfairly disadvantage local investors by locking their funds into low-yield assets while Bavaria expands control.

Eng. Mesfin Abi, Chairman of Habesha Breweries’ Board, responded to the controversy by attributing much of the tension to misunderstandings about the registration process. He explained that share sales must be conducted through formal capital market channels once registration is complete. Until then, shareholders have two options: wait until the ESX listing enables share trading or accept a 20% cash dividend approved by the General Assembly. The company has already distributed such dividends to shareholders, recognizing their rights.

Recent financial data underscores the brewery’s strong market position. As of December 31, 2024, Bavaria Overseas Breweries owns 64.02% of shares, local shareholders—numbering over 8,300 individuals—hold 25.97%, and Linssen Participation B.V. owns 10.01%. The company’s fully paid-up capital totals approximately 3.517 billion birr.

This episode unfolds as Habesha Breweries prepares for its significant transition onto Ethiopia’s emerging capital market structure. The registration and listing process aims to modernize share management through practices such as dematerialized (paperless) share issuance and enhanced regulatory oversight.

Despite the heated debates, shareholders will soon face a decisive period that could reshape ownership and influence the company’s future trajectory. Capital’s repeated efforts to elicit further detailed comments from Habesha Breweries have not yet been successful.

The National Bank of Ethiopia (NBE) has announced its readiness to license foreign banks wishing to operate in the country, with approvals anticipated within three months of application submission.

This initiative follows the central bank’s efforts to open Ethiopia’s financial sector to global players, including the issuance of a new licensing directive five weeks ago.

This directive aligns with the financial sector liberalization policy introduced in 2023, which facilitates the establishment of international banks in Ethiopia.

Solomon Desta, Vice Governor for Financial Institutions Supervision at NBE, confirmed that the central bank is fully prepared to grant licenses to foreign financial firms, enabling them to operate independently in the country.

He noted strong interest from international investors, particularly from Africa, in Ethiopia’s banking sector.

“Ethiopia provides a favorable environment for foreign investors,” Solomon told Capital, adding that potential financial firms are evaluating the country’s risk factors, including infrastructure, to determine their capacity to mobilize deposits.

He emphasized that Ethiopia has established key financial safety nets, such as robust supervision frameworks, a lender-of-last-resort function, deposit insurance, and resolution mechanisms, which enhance investor confidence.

According to Solomon, financial institutions from Morocco, Zambia, South Africa, Kenya, and Djibouti have shown significant interest in entering the Ethiopian market. “Some of these firms may have backing from American or European companies,” he noted.

The Vice Governor highlighted that the NBE has streamlined the licensing process, ensuring that foreign banks encounter no additional hurdles compared to domestic applicants. “We recently issued the licensing directive, and since foreign firms have been preparing for market entry for over three years, we expect swift applications,” he stated.

Some of these institutions already have representative offices in Ethiopia. “We are prepared to accept applications, and by law, licenses will be issued within 90 days,” Solomon affirmed.

He cited the recent approval of M-Pesa’s license as indicative of the NBE’s experience in managing foreign financial firms.

While acknowledging potential complexities in screening applicants, Solomon expressed confidence in the NBE’s readiness.

“We are also enhancing skilled labor, operational procedures, and technology, although we anticipate issuing only a limited number of new bank licenses,” he added, emphasizing that the regulatory body will provide very few licenses.

In accordance with government policy, Ethiopia aims to issue up to five foreign banking licenses over the next five years.

Foreign investors have various options to enter the market, including establishing local subsidiaries or branches, with a foreign currency paid-up capital requirement of five billion birr.

Forming joint ventures with domestic banks or acquiring stakes in new or existing local banks are also viable options for foreign investors.

This move represents a significant step in Ethiopia’s financial sector liberalization, positioning the country as an appealing destination for global banking investment.

Experts anticipate that Ethiopia could welcome foreign banks in the upcoming Ethiopian New Year after a hiatus of half a century. However, some analysts remain skeptical about whether investors will be willing to operate independently in the market.

Solomon did not disclose whether any companies had submitted license applications but noted, “Some international financial firms may prefer to partner with local banks rather than establishing standalone operations.”