Your weekly shot of Ethiopia’s freshest business, tech, and finance news.

Before you sip your buna, catch up on the biggest shifts and smart plays shaking Ethiopia.

You can also watch the round up on youtube:

Policy & Governance

New Withholding Tax Rules Begin August 1

Get ready for tax rule changes. From August 1, businesses must withhold:

  • 3% on goods purchases above 20,000 birr
  • 3% on services above 10,000 birr

This replaces the previous 2% flat rate. The goal? Improve compliance and raise domestic revenue. Affected payments must be reported within 30 days. Businesses are urged to update procurement systems before August 6 enforcement.

Finance & Economy

Ethiopia Nets Record $32.1B in Foreign Revenues

Big win for the economy. Ethiopia earned $32.1B in foreign income in 2024/25, up from $24.7B last year. Key reforms driving this include:

  • Halved inflation rates
  • No central bank borrowing
  • New Forex bureaus
  • Private sector & infrastructure push

Finance Minister Ahmed Shide and NBE Governor Mamo Mihretu say it’s all about sustainable, inclusive growth.

Treasury Bill Auction Shows Strong Demand, But With Caution

On July 23, NBE received ETB 31.3B in bids, nearly 3x the ETB 11B on offer. However, demand was skewed:

  • 28-day bills = hotcake
  • 182- & 364-day bills = ice cold
  • Avg yield: 15.36%

The market is flush with short-term liquidity, but long-term confidence is still shy. 

Lipstick in a Crisis: What Beauty Buys Say About the Economy

Ethiopia’s cosmetics market hit $576M, proving the “lipstick effect” is real. As prices rise, small indulgences like lip balm and mini-makeup thrive.
It’s less about vanity and more about comfort, confidence, and emotional resilience. Read here

Banking & Digital Finance

Ethiopia’s First Domestic Credit Card Launches

SanuPay, in partnership with OpenWay and SantimPay, has launched Ethiopia’s first homegrown credit card.
Highlights:

  • Oromia Bank to issue first cards
  • 5,000 credit cards, 4M+ debit/prepaid cards in rollout
  • 200 ATMs, 10K POS terminals, Way4-powered tech
  • Future expansion: Kenya, Rwanda, digital wallets & remittances

Findex 2025: Mobile Growth, But Inclusion Gaps Remain

While mobile money accounts surged to 222 million, financial inclusion only rose slightly to 49%. Urban areas hit 73%, while rural and poorer groups still lag.
The message? Tech is growing, but inclusive impact is lagging. Source: Shega

Hibret Bank Picks New President

Negusu Gebregziabher, former Lion Bank president and senior advisor at Bank of Abyssinia, has been nominated as Hibret Bank’s new leader—pending NBE approval.
He brings 20+ years of experience as Hibret prepares for the next phase of competition and reform.  Read here

Tech & Digital Transformation

Ethio Telecom Hits 99% Revenue Target

The state telecom giant brought in 162B birr this year, just shy of its annual goal. Over the last 3 years:

  • 4G in 70.8% of the country
  • 5G now in 26 cities
  • 83.2M subscribers (29.4M on 4G)
  • 459 rural areas newly connected
  • Zemen Market: ETB 15M in 3 months. Read here

900+ Government Services Now Online

As part of Digital Ethiopia 2025, the government has digitized over 900 services.
What’s live:

  • 20.4M digital IDs issued
  • Unified digital platform
  • Telecom upgrades in 4G/5G
  • E-procurement & digital property systems 

Source: ENA

Enterprise & Infrastructure

Ethiopia Breaks Wheat Record with 290M Quintals

Through expanded irrigation and farming initiatives, Ethiopia produced 290M quintals of wheat in 2016/17 EC, up by 60M.
Rice farming and malting barley are also booming as Ethiopia eyes food self-sufficiency. 

Ethiopian Airlines Opens $150M MRO Hubs

Africa’s flagship carrier has opened:

  • New Component Maintenance Workshop
  • 2-Bay Hangar
  • Central Warehouse

CEO Mesfin Tasew says the investment cements Ethiopian Airlines’ place as Africa’s aviation hub.

Creative Hub Ethiopia Set to Launch

On July 28, the historic Arada Post Office will be reborn as Creative Hub Ethiopia, a space for entrepreneurship, tech, and design.
Supported by UNIDO and Italian Development Cooperation, it’ll support SMEs and youth in innovation. Source: Addis Insight

Geopolitics

GERD Tensions Resurface After Trump Comments

U.S. President Trump reignited GERD tensions by praising Egypt and calling the dam “incredible.”
In Ethiopia, the backlash was swift. The GERD remains a symbol of national pride and energy sovereignty, and Trump’s remarks brought back resentment over past U.S. mediation efforts.

This week’s headlines reflect a country in rapid transition: from tax reforms and credit card launches to wheat self-reliance and geopolitical nerves. Ethiopia is reforming on multiple fronts, but inclusion, stability, and public trust must keep pace with innovation and infrastructure.

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Stay curious, stay caffeinated

And as always, crush your week ahead!

— Written by the StockMarket.et Newsroom

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