Insights

Ethiopia Update April 2025

While regional tensions in the country continue, the IMF has given its support to Ethiopia’s progress. There remain things to be done for the economy to open up fully but Ethiopia appears to be on the right track.

Ethiopia Update April 2025

While Ethiopia continues to face internal ethnic strife and there is a risk of this escalating, the country is opening up to foreign investment and its economy is on a growth trend.

Ethiopia Update March 2025

Ethiopia continues to manage the stabilisation of the conflict regions in the country although this will not be an overnight fix. The economy is performing well despite the reduction in aid by the US and the fact that Ethiopia has not be reinstated to the AGOA scheme.

Ethiopia Update January 2025

Ethiopia is ramping up its plans to reform the economy and make it easier for foreign investors. The establishment of the Ethiopian Securities Exchange is a step in the right direction.

Ethiopia Update December 2024

Internal and external tensions continue to plague Ethiopia. The economy is benefitting from the Foreign Exchange reforms.

Ethiopia Update October 2024

Ethiopia’s current political and economic landscape is fraught with challenges. However, proactive engagement with international partners and strategic domestic reforms, presents opportunities for recovery and stability. As the nation strives to stabilise its economy and manage public discontent, the collaboration with the regional and international actors such as the IMF provides an important lifeline.

Ethiopia Update September 2024

Positive economic reforms, particularly the flotation of the Birr, continue to increase Ethiopia’s attractiveness as an investment destination, all while, concerns remain about the speed of implementation of these changes. The security situation in various parts of the country remain tense and new splits in the Tigray region threaten a return of instability there.

Ethiopia Update July 2024

The conflicts in Ethiopia are continuing with no obvious end in sight. A number of economic reforms are ongoing and the economy is growing despite challenges.

Ethiopia Update June 2024

Anxieties are rising over an apparent proliferation of new inter-regional and communal conflicts across different parts of the country, as well as a deterioration of long-running ones. This is having a detrimental effect on Ethiopia’s fiscal stability, exacerbated by a growing debt problem. However, the economy is showing robust growth and a National Dialogue process aimed at achieving settlement of various conflicts is finally underway.

Ethiopia Update April 2024

Concerns remain high about Ethiopia’s lingering internal conflicts, which threaten political stability and economic progress. Continued but slow progress continues on the economic front with the launch of the country’s securities exchange, and growth forecasts are down.

Ethiopia Update March 2024

Ethiopia continues to pursue its ambition to achieve access to the sea through its MoU with Somaliland, all while dialling down the rhetoric and pursuing a more diplomatic approach, which could open a path to talks with Somalia. A Cabinet reshuffle continues to consolidate Prime Minister Abiy’s hold on the administration. On international trade, the country made significant progress on economic cooperation with Kenya and compliance with a number of AfCFTA commitments.

Ethiopia Update January 2024

Ethiopia’s deal with Somaliland has cast the country into yet another high stakes dispute, with potential to drag it into conflict with its neighbors and affecting stability in the wider Horn of Africa region, and potentially beyond. Currently no efforts to begin mediation have been successful, so where the dispute goes from here is highly uncertain.

Ethiopia Update December 2023

Ethiopia still faces difficulties bringing its Amhara and Oromia conflicts to an end, which continue to impact investor perceptions of the market, and remain a drain on Government resources. New investment is still only trickling in. An investment grade downgrade by Fitch spelt bad news for the economy but debt relief from international institutions is on the horizon.

Ethiopia Update October 2023

Nervousness remains over Ethiopia’s ability to hold the peace in Tigray and re-establish order over other restive provinces, particularly Amhara. However, Ethiopia’s international partners are eager to normalise relations, and the Government is stepping up efforts to liberalise aspects of the economy, with signs that economic growth is picking up.

Ethiopia Update September 2023

Just as Ethiopia was righting itself after the Tigray conflict, a new outbreak of violence between the Federal Government and local militias in Amhara threatens to derail the restoration of peace and prosperity in the country. While international bodies and investors are concerned, the Government seeks to restore control through a State of Emergency. The renewed conflict is a reminder of the broader constitutional complexities in Ethiopia which still need to be resolved. Nonetheless, the economy continues to grow, and IMF/WB talks with the Government are progressing well.

EAA Business Briefing Ethiopia

The Eastern African Association (EAA), in collaboration with the Ethiopia Embassy, London and Ethiopia Investment Commission (EIC), organised a hybrid business roundtable to brief UK investors on Ethiopia’s Economic and Political Reforms. This report provides an overview of the event’s discussion on the significant reforms implemented by the Ethiopian federal government to attract international investment and strengthen its economic and political systems.

Ethiopia Update July 2023

With improving international relations, particularly with key Western partner the United States, and an economic peace dividend from the end of the Tigray conflict emerging, Ethiopia’s prospects are improving. The Government is forging ahead with economic reform programmes, and actively seeking foreign investment.

Ethiopia Update June 2023

Progress continues to be made on implementing the Tigray Peace Agreement, drawing a line under the bloody two-year-old conflict, though the lingering presence of Eritrean troops poses a potential threat to its success. The Government seems intent on reaping a peace dividend as it presses ahead with its reform programme, focusing on liberalising the banking, telecoms and logistics sectors.

Ethiopia Update Apr 2023

2023 is looking to be a considerably brighter year for Ethiopia as the peace in Tigray appears to be holding and both sides implement terms of the Peace Accord. While rebuilding costs are very considerable, and instability continues to plague parts of the country, the Government appears intent on restoring an attractive environment for international investors and is driving a number of initiatives to increase FDI.

Ethiopia Update Mar 2023

Ethiopia’s prospects have brightened considerably since the ceasefire in the Tigray war and the apparently successful peace accords. While there will still be obstacles to a lasting peace and constitutional settlement, most observers agree that the war is now over. Economic activity is picking up and the Government is pursuing a variety of valuable economic reform measures.

Ethiopia Update Jan 2023

The peace deal between Ethiopia’s Federal Government and the Tigray region’s rebel leadership appears to be sticking, with concrete measures taken to implement its conditions, including the disarmament of rebel forces and resumption of supplies of goods and services to Tigray. Unresolved points remain the continued presence of Eritrean troops and uncertainty about the long-term constitutional arrangements for Ethiopia. However, the improved environment means investor sentiment is lifting and conditions for a rise in FDI are emerging.

Ethiopia Update Dec 2022

The signing of a Peace Agreement between the rebel Tigrayan leadership and the Federal Government, after a two-year civil war, if upheld, will provide significant respite to a battered population, and open up investor appetite in the country again. Obstacles remain, including the status of Eritrean forces and Amharan militias, but it appears the will is there to address these.

Ethiopia Update Oct 2022

There are tentative hopes that a renewed peace push may dampen the Tigray conflict and pave the way to a peaceful resolution; however, given the volatility displayed on both sides and the yawning gap in their demands, this is still far from assured. While the conflict rages in the North, large parts of the country remain open for business and some encouraging reforms in the financial and telecoms sector begin to bear fruit.

Ethiopia Update. July 2022

The prospects for a negotiated settlement of the Tigrayan conflict are looking more hopeful, with the outline of a process in place. There are still mountains to climb as the differences between the two sides remain significant. Other ethnic conflicts continue to batter other parts of the country. That the Tigray war may be drawing to a close has buoyed economic sentiment, though the war and global economic pressures continue to weigh on the economy.

Ethiopia Update. June 2022

The ceasefire in Tigray largely continues to hold, and aid flows have begun to arrive in greater quantities in the region. However, separatist and nationalist movements continue to arise in other parts of the country leading to continued security uncertainty and concerns over civil liberties in the country as a whole. Meanwhile, costs to the economy from the war at home and in Ukraine continue to rise.

Ethiopia Update. April 2022

The Conflict in Tigray continues to dampen with the announcement of a truce and ceasefire by the sides. The peace process is still not defined but rhetoric from both sides indicates a desire to find a solution.

Risks and Opportunities in East Africa: view of an investor

Kihara Maina, CEO, I & M Bank Kenya gave a presentation on Investment in East Africa: the risks and opportunities in the region as seen through the eyes of an investor, at the EAA’s global meeting on 28th July 2021. To view his presentation click on the link below: Risks and opportunities in East Africa:

Ethiopia Update November 2021

The future of the Tigray conflict is entirely dependent on concessions being made by both sides to allow talks to open up.

Ethiopia update January 2022

After 18 months of conflict, the new year has seen the first hopeful signs of a diplomatic process to solve the Tigray crisis, with steps towards National Dialogue.

Ethiopia Update March 2022

Chances for some form of negotiated settlement in Ethiopia’s bitter Tigray conflict are better than they have been at any time since hostilities broke out.

Ethiopia Update September 2021

The Tigray conflict appears to be escalating and spreading to other parts of the country, threatening a deteriorating security situation more broadly in the country.

Ethiopia Update October 2021

A new Government is in place and the inclusion of three opposition members in the Cabinet is positive.

Ethiopia Update April 2021

Ethiopia is faced with a number of challenges over the next few months that could well derail what had previously been quite a positive development prospect for the country. It is unlikely that the Government will be able to draw a line under the Tigray conflict, the elections are likely to be sub-optimal

Ethiopia Update June 2021

Covid-19 infections have shown a significant downturn during May 2021. Elections are due to be held later this month which, if not peaceful, may set the country back. Ethiopia continues to open up to foreign investors.

Ethiopia Update July 2021

An unsettled period lies ahead, with the ongoing conflict and an election yet to be completed. All in all, the Prime Minister’s Parliamentary mandate will be important for economic growth going forward.

Ethiopia update March 2021

The Covid-19 numbers are increasing and perhaps being fuelled by the civil unrest. Politically the country, while firmly under the control of the Central Government, is somewhat unstable and is likely to be so till the elections are held. 2021 will be a difficult year economically for the country.

Ethiopia update January 2021

Unrest is threatening Ethiopia’s gains, but the government remains upbeat about the economy

January 2020 Newsletter – Ethiopia

ETHIOPIA POLITICS He arrived with a great fanfare, bringing hope and optimism to a country that was riven with deep divides, civil unrest and soured relations with neighbouring countries. Initially, PM Abiy devoted his attention to regional matters, securing a peace deal with Eritrea, which earned him the Nobel Peace Prize, and cementing diplomatic ties

Eastern Africa Members’ Survey on Business Climate, risks & opportunities

Toby Latta, CEO, Eastern Africa Association, shared members’ views that were received from a survey on the business climate, risks and opportunities in the region at the July global meeting of members’ (28th July 2021). EAA Members Survey opportunities and risks (1)

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Ethiopia Update April 2025

Ethiopia Update April 2025

Ethiopia Update March 2025

Ethiopia Update January 2025

Ethiopia Update December 2024

Ethiopia Update October 2024

Ethiopia Update September 2024

Ethiopia Update July 2024

Ethiopia Update June 2024

Ethiopia Update April 2024

Ethiopia Update March 2024

Ethiopia Update January 2024

Ethiopia Update December 2023

Ethiopia Update October 2023

Ethiopia Update September 2023

EAA Business Briefing Ethiopia

Ethiopia Update July 2023

Ethiopia Update June 2023

Ethiopia Update Apr 2023

Ethiopia Update Mar 2023

Ethiopia Update Jan 2023

Ethiopia Update Dec 2022

Ethiopia Update Oct 2022

Ethiopia Update. July 2022

Ethiopia Update. June 2022

Ethiopia Update. April 2022

Risks and Opportunities in East Africa: view of an investor

Ethiopia Update November 2021

Ethiopia update January 2022

Ethiopia Update March 2022

Ethiopia Update September 2021

Ethiopia Update October 2021

Ethiopia Update April 2021

Ethiopia Update June 2021

Ethiopia Update July 2021

Ethiopia update March 2021

Ethiopia update January 2021

January 2020 Newsletter – Ethiopia

Eastern Africa Members’ Survey on Business Climate, risks & opportunities