Ethiopia Launches Green Legacy Initiative 2025 Under the Theme “Renewal Through Planting”
Ethiopia Opens Financial Sector to Foreign Banks with New NBE Directive
NEWS IN BRIEF
Ethiopia
President Taye Atske Selassie bade farewell to the Ambassadors of Canada, Sweden, and the Kingdom of Saudi Arabia, commending them for their contributions to strengthening relations between their respective countries and Ethiopia during their tenure.
Prime Minister Abiy Ahmed addressed members of the House of People’s Representatives on Thursday (July 3), responding to questions raised from Members of Parliament regarding the government’s 2024/25 budget execution and the national development priorities for the next fiscal year. His remarks covered key economic sectors, major national initiatives, sectoral reforms, the broader political landscape and Ethiopia’s relations with neighboring countries. (See article)
Ethiopia launched the Green Legacy Initiative 2025 under the theme “Renewal Through Planting” in a ceremony held on Friday (June 27), at the Addis International Convention Center. The event marked the beginning of the seventh annual tree-planting season of the national campaign, which began in 2019, with the goal of planting 7.5 billion seedlings this rainy season to reach a cumulative total of 47.5 billion. (See article)
Prime Minister Abiy received the Director General of the International Atomic Energy Agency (IAEA), Rafael Mariano Grossi, on Wednesday (June 30) at his office. Discussions focused on ongoing assistance and opportunities for future collaboration. The cooperation between Ethiopia and the IAEA covers a wide range of areas, including cancer care, veterinary health, tsetse eradication, nuclear engineering, and regulatory frameworks.
In his remarks at the Fourth International Conference on Financing for Development held in Sevilla, Spain, on Tuesday (July 1), Minister of Agriculture, Girma Amente, called on the international community to fulfill the commitments made under the Addis Ababa Action Agenda, adopted during the FfD3 conference. He welcomed the broad consensus reflected in the new Sevilla Commitment, describing it as a timely and necessary continuation of the Addis Agenda. (See article)
On Thursday (July 3), State Minister of Foreign Affairs, Ambassador Hadera Abera held talks with the Ambassador of the State of Qatar to Ethiopia, Ambassador Saad Bin Mubarak Al- naimi on ways of further solidifying bilateral relations between the two countries across economic, political and social sectors. The State Minister called on Qatari companies to take advantage of the favorable business and investment climate in Ethiopia brought forth by the ongoing economic reforms. The two sides also discussed regional peace and security issues of mutual interest.
On the same day, Ambassador Hadera conferred with the Ambassador of France to Ethiopia, Alexis Lamek. They discussed ways of further enhancing the longstanding and strategic cooperation between the two countries in bilateral, regional and multilateral platforms. The two sides particularly agreed to boost economic cooperation in the areas of trade, investment, tourism, and capital market.
State Minister of Foreign Affairs, Ambassador Berhanu Tsegaye met with Chief of Mission at the International Organization for Migration (IOM) in Ethiopia, Abibatou Wane on Wednesday (July 2). The State Minister underlined that Ethiopia remains steadfast in its efforts to strengthen cooperation with international partners to combat illegal migration and human trafficking. Ambassador Berhanu highlighted the importance of deepening strategic collaboration. The discussions focused on enhancing joint efforts in the repatriation and resettlement of citizens, reaffirming the shared commitment of both sides to address migration issues.
The National Committee, composed of representatives from various federal, regional, and Addis Ababa city administration offices, on Tuesday (July 1) deliberated on the ongoing preparations for international events scheduled to take place in Addis Ababa in the coming months. During the discussions, State Minister of Foreign Affairs and Chair of the National Committee, Ambassador Berhanu Tsegaye, emphasized the need for concerted efforts among stakeholders to ensure the successful execution of the upcoming international conferences in the capital. He also underlined that leveraging these annual global events can play a key role in enhancing Ethiopia’s visibility and promoting the country through conference tourism.
Ethiopia’s Permanent Representative to the African Union (AU) and the United Nations Economic Commission for Africa (UNECA), Ambassador Hirut Zemene, paid a courtesy call on the Deputy Chairperson of the African Union Commission (AUC), Selma Malika Haddadi on Thursday (July 3). The two sides exchanged views on ways of enhancing cooperation between Ethiopia and the AUC in the areas of service and headquarter responsibility as a host country to the Commission. Ambassador Hirut assured the Deputy Chairperson of the full support of the Government of Ethiopia to the newly elected senior leadership of the Commission in the discharge of their mandate.
The Third Meeting of BRICS Sherpas and Sous Sherpas for 2025 commenced in Rio de Janeiro, Brazil on Tuesday (July 1). Head of the delegation and Special Policy Advisor to the Minister, Ambassador Menelik Alemu congratulated Brazil for successfully leading the activities of BRICS during the year of its chairmanship. Recognizing the year-long activities and achievements with regard to issues such as global governance, trade, investment and finance, climate change, artificial intelligence and global health, he expressed Ethiopia’s readiness to work towards consensus.
Chief of Protocol at the Ministry of Foreign Affairs, Aziza Geleta, received copies of credentials from Air Vice Marshal Sitwat Nayeem, Ambassador-Designate of the People’s Republic of Bangladesh to Ethiopia on Wednesday (July 2)
Ambassador Delil Kedir met with Minister of the Department of International Relations and Cooperation of the Republic of South Africa, Ronald Lamola on Sunday (June 27). Discussions covered ways of further strengthening the bilateral relations between the two countries. Ambassador Delil also conveyed a message from Minister of Foreign Affairs, Gedion Timothewos to Minister Lamola.
The National Bank of Ethiopia released a new directive on Wednesday (June 25), marking the final step in opening the country’s financial sector to foreign investors. Directive No. SBB/94/2025, issued following broad consultations and the recent Banking Business Proclamation, allows foreign banks and strategic investors to enter the Ethiopian market via subsidiaries, branches, or representative offices. (See article)
The Slovak Republic is set to re-establish diplomatic mission in Addis Ababa. It is to be recalled that Minister of Foreign Affairs, Gedion Timothiwos, met with his counterpart from Slovakia, Juraj Blanár and discussed ways of strengthening cooperation in areas of mutual interests on the margins of the 3rd AU-EU Ministerial Meeting in Brussels in May 2025.
Djibouti
Minister of Foreign Affairs and International Cooperation, Abdulkader Houssein Omar, met with his Saudi counterpart, Prince Faisal bin Farhan Al Saud in Riyadh on Sunday (June 30) and discussed ways of further strengthening bilateral ties between the two countries.
Kenya
President William Ruto met with Prime Minister Keir Starmer of the United Kingdom in London on Tuesday (July1). The two sides discussed ways of boosting bilateral trade and investment between the two countries.
Somalia
On Tuesday (July 1), President Hassan Sheikh Mohamud commemorated the 65th anniversary of Somalia’s Independence and Unification by laying a wreath at the Daljirka Dahsoon (Tomb of the Unknown Soldier) Monument in Mogadishu. The President was joined by Major General Asad Osman Abdullahi, the Commissioner General of the Somali Police Force.
Africa and the African Union
Speaking at the Fourth International Conference on Financing for Development in Seville, Spain on the theme “Leveraging Private Business and Finance,” Chairperson of the African Union Commission, Mahmoud Ali Youssouf stressed the need for urgent reforms to the global financial system to help unlock Africa’s full potential. He highlighted that private sector involvement and financial flows are not just supportive, but essential drivers of inclusive economic growth, employment, and the shift toward a green economy. He pointed to the African Continental Free Trade Area (AfCFTA) as a transformative initiative for the continent and called for increased backing for MSMEs, sustainable investment, and foreign direct capital. He said, “Africa is youthful, rich in resources, and prepared,” adding: “It’s time to align capital with Africa’s development goals and establish a fair, modern financial system that benefits everyone.”
Prime Minister Abiy Ahmed Responds to Questions Raised by MPs in a Session at the House of People’s Representatives
Prime Minister Abiy Ahmed addressed members of the House of People’s Representatives on Thursday (July 3), responding to questions raised from Members of Parliament regarding the government’s 2024/25 budget execution and the national development priorities for the next fiscal year. His remarks covered key economic sectors, major national initiatives, the broader political landscape and Ethiopia’s relations with neighboring countries.
Prime Minister Abiy said agriculture remains the backbone of Ethiopia’s economy and the foundation of its export earnings. He noted that a significant portion of the population is directly or indirectly engaged in the sector, highlighting its vital role in the country’s development. For the current year, agricultural growth is projected at 6.1 percent. Emphasising the importance of food sovereignty, he stated, “A country that cannot feed itself cannot fully secure its future.” He highlighted the transformation of the safety net program, under which 23 million of the 27 million previously dependent citizens have now achieved self-sufficiency. The government is now focusing on supporting the remaining 4 million beneficiaries to realise full national food sovereignty, an attainable goal, given Ethiopia’s abundant arable land and continued commitment.
Turning to the industrial sector, Prime Minister Abiy outlined a 12 percent growth target for the year. Under the “Made in Ethiopia” initiative, industrial production capacity has increased from 59 percent last year to 65 percent this year. Energy demand from the sector has reached 40 percent, reflecting heightened activity and expansion. Cement and steel production have shown notable growth, with steel products rising by 18 percent. Significant investments are also underway, including the construction of a large-scale glass factory with a 600,000-ton annual capacity, expected to be completed by December or January. Solar panel production facilities are also in development, reinforcing the government’s commitment to revitalising and transforming the country’s industrial base.
In the mining and energy sectors, the Prime Minister noted that while Ethiopia possesses one of the richest mineral endowments in Africa, the sector has historically suffered from a lack of focused leadership and a clear vision. That, however, is changing. He said, “Last year, Ethiopia exported 37 tons of gold. This year, thanks to sustained effort and strategic attention, we achieved an unprecedented export value of 3.5 billion dollars. This marks a significant milestone in the country’s mineral development.” In the gas sector, operations that were previously delayed due to licensing issues are now progressing, with Ethiopia preparing to begin marketing its gas products soon. The construction of a major fertiliser factory is set to begin shortly and will become operational within 40 months, further strengthening agricultural productivity and reducing reliance on imports.
Prime Minister Abiy also highlighted the significant transformation within the financial sector. Reforms have led to healthy growth, with mobile money users reaching 55 million and digital transactions surpassing 12.5 trillion birr, outpacing traditional cash-based transactions. Virtual loan disbursements have reached 24.5 billion birr, reflecting the increased accessibility and efficiency of financial services. These developments, along with gains in other sectors, underpin the government’s projection of 8.4 percent economic growth this year.
On foreign trade, the Prime Minister celebrated the success of ongoing export reforms. Ethiopia earned over $8.1 billion in export revenue this year, exceeding the target by $3 billion and more than doubling last year’s performance. Inflows included $7 billion in remittances, $4 billion in foreign direct investment, and $8.3 billion from services. Altogether, Ethiopia generated $24 billion from foreign exchange sources excluding loans and grants. This year’s total foreign exchange earnings have reached $32 billion. These outcomes, he emphasised, reflect the positive impact of macroeconomic reforms and the growing resilience of Ethiopia’s economy.
Regarding the Grand Ethiopian Renaissance Dam (GERD), Prime Minister Abiy confirmed that the project is now complete and will soon be officially inaugurated. He said, “To our neighbors downstream—Egypt and Sudan—our message is clear: The Renaissance Dam is not a threat, but a shared opportunity. It is a symbol of regional cooperation and mutual benefit.” The Prime Minister underscored that Egypt’s Aswan Dam has never lost a single litre of water due to the GERD. Likewise, Ethiopia remains committed to ensuring that “our growth does not come at the expense of our Egyptian and Sudanese brothers and sisters,” he said. “We believe in shared progress, shared energy, and shared water. Prosperity for one should mean prosperity for all. Ethiopia remains ready and willing to engage constructively with downstream countries,” The Prime Minister added.
On peace and stability, the Prime Minister praised the recent calls for peace by the people of the Amhara region. He stressed that the public must hold leaders accountable and reject violence, obstruction of education, and disruptions to essential services. He noted that Ethiopia’s past conflicts have been resolved through effort, and relative peace has enabled growth in agriculture, mining, and tourism. The Prime Minister urged all communities to protect and build on this peace through collective effort and vigilance.
Addressing developments in the Tigray region, the Prime Minister described the Pretoria Agreement as a critical turning point that ended daily loss of life and opened a path to peace. Key services. including telecom, banking, and air travel have fully resumed. While displaced residents of Raya have returned, returns to Wolkait are still pending; the government remains committed to ensuring all displaced people go back to their homes. The Prime Minister noted that rehabilitating and reintegrating former fighters is a priority and supports the region’s interim administration. He added that the federal government continues to pursue peace, but misunderstandings and false hopes of foreign support have led some to wrongly push for renewed conflict. “What Tigray needs is peace and dialogue—not war,” he underlined, calling on religious leaders and elders to help prevent escalation. He said, “The government’s position is clear: we seek no conflict and aim to resolve issues without firing a single shot. All Ethiopians, including the people of Tigray, must contribute to national dialogue and lasting peace.”
On foreign relations, Prime Minister Abiy affirmed that Ethiopia’s relations with neighbouring countries are grounded in mutual coexistence and peaceful cooperation. He has made it abundantly clear that Ethiopia’s pursuit of port access is rooted in peaceful negotiation and respect for sovereignty; not force. “We have not engaged in conflict with any neighbour over the past seven years and remain committed to peace. We do not seek confrontation with Eritrea or any other country—and expect the same in return. Our vision is one of shared progress and stability,” he added.
In conclusion, the Prime Minister characterised Ethiopia’s current trajectory as a national revival, ushering in a new phase focused on realising the full results of the ongoing reforms. This year, he says, marks a period of remarkable progress and unprecedented achievements across sectors, reflecting the strength, resilience, and renewed spirit of the Ethiopian people.
Ethiopia Launches Green Legacy Initiative 2025 Under the Theme “Renewal Through Planting”
Ethiopia launched the Green Legacy Initiative 2025 under the theme “Renewal Through Planting” in a ceremony held on Friday (June 27), at the Addis International Convention Center. The event marked the beginning of the seventh annual tree-planting season of the national campaign, which began in 2019, with the goal of planting 7.5 billion seedlings this rainy season to reach a cumulative total of 47.5 billion.
The ceremony was attended by high-level dignitaries including Prime Minister Abiy Ahmed, Vice President of Nigeria Kashim Shettima, Speaker of the House Tagesse Chafo, Chief Administrators of Regional States, ministers, military leaders, ambassadors, and thousands of citizens from all walks of life.
In his keynote speech, Prime Minister Abiy emphasized Ethiopia’s vision of achieving food security and environmental restoration through grassroots participation. He stressed that the Green Legacy has not only improved agricultural productivity but also played a role in building national pride, economic resilience, and inspiring African unity.
The Prime Minister called on Ethiopians to continue embracing the campaign as a symbol of collective effort and national transformation. He noted that the Green Legacy is a vision for the future and has played an irreplaceable role in making our country a preferred destination for tourism and international conferences, beyond helping reduce dependence on food aid.
In his message, the Prime Minister called upon all Ethiopians to actively take part in this year’s Green Legacy campaign.
Vice President Kashim Shettima of Nigeria, speaking at the event, praised Ethiopia’s bold leadership and reaffirmed Nigeria’s solidarity with Ethiopia in attaining shared environmental and developmental goals. He noted that Nigeria and Ethiopia, as Africa’s most populous nations, carry a unique responsibility in addressing climate change, given the high cost of inaction. In fact, over the week, a shipment of 4,000 seedlings successfully arrived at Abuja International Airport, marking a tangible step towards fostering a more sustainable future for both nations. The gesture underscores the deepening bilateral relations and the shared commitment of Ethiopia and Nigeria to addressing climate change and promoting ecological restoration. It also exemplifies the spirit of Pan-African collaboration in environmental stewardship and is anticipated to further strengthen the bonds of friendship and cooperation between the two nations.
Launched in 2019 as part of Ethiopia’s Climate Resilient Green Economy strategy, the Green Legacy Initiative (GLI) aims to achieve food self-sufficiency, combat climate change, promote reforestation, and support economic development, addressing several national priorities. This year’s target of 7.5 billion seedlings is part of a broader goal to reach 54 billion by next year.
Ethiopia Calls for Seville Commitment to Build on Addis Ababa Action Agenda at the Fourth Financing for Development Conference in Sevilla, Spain
An Ethiopian delegation led by Minister of Agriculture, Girma Amente, participated in the Fourth International Conference on Financing for Development held in Sevilla, Spain, this week. In his address, Minister Girma urged the international community to honor the commitments outlined in the Addis Ababa Action Agenda, which was adopted at the Third International Conference on Financing for Development (FfD3) a decade ago. He welcomed the consensus emerging from the new Seville Commitment, describing it as a timely and essential continuation of the Addis Agenda. Emphasizing the importance of building on its gains, he expressed hope that the Seville Commitment would help overcome the challenges faced in implementing the Addis framework.
The Minister highlighted the staggering $4 trillion gap in financing the Sustainable Development Goals (SDGs) as evidence of a global failure to turn pledges into tangible results. He noted that this shortfall has left developing countries burdened by unsustainable debt, declining development finance, and increasing pressures from climate change and geopolitical tensions.
Addressing the issue of debt sustainability, Girma called for the advancement of a fair global taxation system targeting multinational corporations and the establishment of a sovereign debt resolution mechanism under United Nations oversight. He also underscored the need to enhance access to grant-based and highly concessional financing, aligned with national development priorities, particularly for developing countries.
The Minister stressed the urgency of creating dedicated support mechanisms for countries vulnerable to external shocks, aimed at preventing sudden financing disruptions and preserving development gains. He further called for the prompt release and effective deployment of available development and climate finance, with a strong focus on infrastructure development and decent job creation, especially in Africa, where demographic potential remains significantly underutilized.
Describing the Seville Commitment as a critical opportunity to recalibrate global efforts, the Minister reaffirmed Ethiopia’s strong support for multilateralism. He expressed hope that future global forums will demonstrate measurable progress rather than persistent gaps between ambition and implementation.
On the margins of the conference, the Minister also addressed a high-level Ministerial Meeting held in parallel to the main plenary, under the theme “Revitalising International Development Cooperation.” In his intervention, he emphasized that strengthened international cooperation remains the only viable pathway to achieving the SDGs. He urged the global community to uphold the principles of shared responsibility and solidarity in addressing today’s complex development challenges.
Ethiopia Opens Financial Sector to Foreign Banks with New NBE Directive
The National Bank of Ethiopia (NBE) has issued a new directive, “Requirements for Licensing and Renewal of Banking Business and Representative Office Directive No. SBB/94/2025,” at the end of last week, signaling a significant step towards opening the nation’s financial sector to foreign banks. This move is principally aimed at fostering a robust and sustainable banking sector essential for macro-economic stability and growth. In a press release last Friday (June 25), the NBE stated that the new Directive marks the final regulatory milestone in opening up the Ethiopian financial sector to foreign participation. It is the result of extensive consultations conducted over the past year with a wide range of stakeholders, whose inputs have been given due consideration, the release added.
The directive underscores the importance of proper licensing and supervision of banking businesses and representative offices of foreign banks to ensure the safety and soundness of the financial system. It also establishes the necessary legal framework for licensing banks owned by foreign investors, including foreign banks, and brings the supervision of foreign bank representative offices under the National Bank’s regulatory purview. Furthermore, the directive emphasizes the need for effective coordination mechanisms with the home supervisory authorities of foreign banks operating in Ethiopia.
Under this new directive, foreign banks can establish their presence in Ethiopia through various forms:
· Foreign Bank Subsidiaries: Defined as subsidiaries controlled by a foreign bank strategic investor, incorporated under Ethiopian laws, and having their head office in Ethiopia.
· Foreign Bank Branches: These are deposit or non-deposit-taking branches of a foreign bank that do not have a separate legal existence.
· Representative Offices: These offices of foreign banks will engage in representational functions such as liaison, marketing, and research.
The Licensing Directive allows for the first time the participation of foreign investors, including banks or other strategic investors in the Ethiopian banking system. The Directive also provides for several modalities through which foreign entrants join the banking sector, including among others by setting up subsidiaries, foreign bank branches, or Representative Offices.
General Principles and Licensing Requirements
Prospective foreign banks and representative offices are required to submit a written application to the National Bank. The NBE’s assessment of a strategic investor will consider several key criteria, including:
- Governance and Financial Soundness: Evaluating the applicant’s overall financial health and operational governance.
- Compliance with Home Regulator Requirements: Ensuring the foreign bank adheres to the regulations of its home country.
- Approval and Cooperation by Home Regulator: Assessing the approval from the home regulator, including arrangements for cross-border supervision and the degree of cooperation provided.
- Strategic Value: Determining the extent to which the foreign bank can contribute strategically to the Ethiopian financial system.
The licensing process will proceed through three phases: a pre-application phase, an application phase, and a commencement of operation phase. Foreign bank subsidiaries and branches are mandated to comply with all relevant prudential requirements, on par with domestic banks. The National Bank reserves the authority to grant or deny a license based on its assessment and may impose a moratorium on new business licenses if deemed necessary.
This directive marks a pivotal moment for Ethiopia’s financial landscape, inviting foreign expertise and capital to enhance the banking sector’s competitiveness and efficiency. The NBE, as stipulated in the Press Release, expects that the opening up of the sector to foreign entrants will help bring increased capital, competition, service delivery, efficiency, and inclusivity to the sector, all of which should deepen Ethiopia’s financial sector and contribute to improved growth.
Leave Your Comments Here