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Ethiopia
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for the 13 Oct - 19 Oct
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The Ethio-Djibouti Standard Gauge Railway Share Company (EDR) has launched its first privately financed expansion, linking AMG Industrial Park near Addis Ababa to the main railway line. The three-kilometer line will be completed in six months and is EDR’s first fully locally executed construction. Transport Minister Alemu Sime said the project advances Ethiopia’s self-reliance goals and strengthens regional integration under the African Continental Free Trade Area by improving trade transport links.
The African Capacity Building Foundation (ACBF) praised Ethiopia’s homegrown economic reforms as bold and visionary, calling them a model for inclusive growth in Africa. ACBF Economic and Social Governance Head Peguewinde Rodolphe Bance highlighted progress in fiscal management, market liberalization, and tax reforms that build trust and increase revenue. He also cited digital transformation under the Digital Ethiopia 2025 strategy as evidence of strong leadership driving the reforms.
Ethiopia earned $546 million from exporting 80,000 metric tonnes of coffee in the first two months of the fiscal year, according to the Ethiopian Coffee and Tea Authority. The surge follows supply chain reforms enabling direct sales to international buyers and new washing and grading centers. Improved inspection procedures have boosted quality. Ethiopia targets annual exports of 600,000 tonnes, aiming for $3 billion in coffee revenue.
The World Bank projected Ethiopia’s poverty rate to rise to 43% in 2025, reversing years of progress. The report cites conflict, drought, inflation, and economic shocks as key drivers. Poverty climbed from 33% in 2016 to 39% in 2021, with rural communities most affected. Despite reforms to stabilize the economy and expand safety nets, the Bank warned that Ethiopia faces debt distress and rising inequality.
Ethiopia began exporting goods under the African Continental Free Trade Area (AfCFTA), marking a milestone in its regional trade integration. The first shipments of meat, fruits, and other agricultural products went to Somalia, Kenya, and South Africa. Trade Minister Kassahun Goffe said the launch signals Ethiopia’s growing role in African trade. Officials said the initiative will boost intra-African trade, competitiveness, and economic cooperation across the continent.
Ethiopia announced tax exemptions for all public transport and cargo vehicles powered by natural gas to reduce fuel imports and support local energy use. The policy follows the launch of a gas processing facility in Callub, now supplying domestic markets. Officials said the initiative will strengthen energy security, cut carbon emissions, and support sustainable growth by shifting from petrol and diesel to cleaner, locally sourced fuels.
Ethiopia accused Eritrea of preparing for war and collaborating with the Tigray People’s Liberation Front (TPLF). In a letter to the UN, Ethiopian Foreign Minister Gedion Timothewos alleged that Eritrea and the TPLF were funding and mobilizing armed groups in Ethiopia’s Amhara region. Eritrea rejected the claims as “provocative saber-rattling,” while the TPLF called them “unfounded.” The accusations come amid renewed tension over Ethiopia’s bid for Red Sea access.
Ethiopia’s UN Ambassador in Geneva, Tsegab Kebebew, will serve as First Vice Chairperson of the UNHCR Executive Committee Bureau after his election at the 76th session. The African Group nominated him, and Norway seconded the nomination. Ethiopia plays a leading role in refugee protection and humanitarian work. The country hosts one of Africa’s largest refugee populations and promotes inclusion, durable solutions, and active participation in multilateral initiatives supporting refugees and humanitarian aid.
Prime Minister Abiy Ahmed met Somalia’s President Hassan Sheikh Mohamud in Addis Ababa on October 12 to discuss bilateral and regional cooperation. The talks emphasized peace, development, and counterterrorism in the Horn of Africa, and reaffirmed both nations’ sovereignty and shared interests. The meeting follows Mohamud’s visit to Jubaland and comes amid tensions over federal-regional relations in Somalia. Ethiopia continues to support diplomatic dialogue and regional stability initiatives.