Passenger flights between Addis Ababa and northern Ethiopia’s Tigray region have been cancelled, disrupting air travel and trade flows. Ethiopian Airlines cited “unplanned circumstances” in notices to passengers, while operations at Mekelle airport were halted for the day. The suspension affects passenger movement, cargo logistics, and regional commerce, adding operational pressure to Ethiopia’s aviation sector amid ongoing foreign exchange constraints and heightened transport risk.

The National Bank of Ethiopia has directed commercial banks to apply import price references issued by the Ethiopian Customs Commission when opening letters of credit and processing import-related foreign exchange requests, effective January 27, 2026. The central bank said the move aims to reduce valuation discrepancies, align banking and customs practices, and strengthen balance-of-payments data following Ethiopia’s shift to a market-based foreign exchange system.

The Commercial Bank of Ethiopia reported that transactions conducted through its digital banking platforms exceeded nine trillion birr in the first half of the 2025/26 fiscal year, accounting for nearly 88% of total transfers and payments. The bank also posted a gross profit of 36.19 billion birr, driven by digital adoption, economic reforms, and growth in its interest-free banking arm, CBE Noor, which expanded deposits and lending significantly.

The National Bank of Ethiopia completed a $500 million foreign exchange auction, the largest since Ethiopia adopted market-based FX reforms. Bids totalled $592.3 million, signalling continued demand for hard currency among banks. The auction cleared at a weighted average rate of 154.82 birr per dollar, with settlement completed the same day. Officials said the intervention supports liquidity management and price discovery as foreign exchange reforms deepen.

Ethiopia’s state-owned Ethio Telecom reported 85.02 billion birr ($548 million) in revenue for the six months to December 2025, a 37% increase from the previous year. The growth came from higher data usage, mobile money transactions, and an 8.2% rise in subscribers to 87.1 million. The company posted a net profit of 42.36 billion birr, expanded its mobile network, and highlighted ongoing challenges from foreign currency shortages and regulatory requirements.

Ethiopia will reopen talks to restructure its $1 billion international bond after official creditors said a proposed deal offered insufficient relief. Creditors represented by the Official Creditor Committee, co-chaired by China and France, objected to a draft agreement that included a contingent instrument linked to export performance. The finance ministry said negotiations with bondholders would resume under the G20 Common Framework.

Russia’s supply of Yak-130 trainer aircraft and Orion strike drones is expanding Ethiopia’s strike and surveillance capabilities while reducing reliance on Western military channels. Analysts say the systems enhance Addis Ababa’s operational autonomy and complicate US risk management in the Horn of Africa. The move strengthens Russia’s long-term influence through training, maintenance, and logistics, while limiting Washington’s ability to shape military practices, monitor escalation risks, and enforce conditionality in a strategically sensitive region.

Ethiopian federal forces and Tigrayan fighters clashed in western Tigray, prompting flight suspensions and raising security concerns, according to diplomatic and security sources cited by Agence France-Presse. Reports say fighting erupted in Tsemlet, a disputed area also claimed by Amhara forces. The clashes occur amid severe humanitarian shortages, following cuts in international aid. Agencies warn that most residents still need emergency assistance.

Italy will host the second Italia-Africa Summit in Addis Ababa on February 13, the first time the event takes place in Africa. Italian Prime Minister Giorgia Meloni announced the summit, which aligns with African Union meetings. The summit advances the Mattei Plan, launched in 2024. The initiative aims to strengthen political and economic cooperation between Italy and African countries in energy, infrastructure, health, education, and agriculture.