By Staff writer What the 2nd Ethiopian Finance Forum 2026 Signals for Ethiopia’s Reform Path Ethiopia is advancing its economic transformation through broad structural reforms aimed at strengthening financial stability, expanding investment, boosting domestic production, and building stronger institutions. These reforms are designed to create a more resilient and self-reliant economy capable of generating employment, attracting investment, and supporting sustainable development. The opening of the Second Ethiopian Finance Forum 2026 on Tuesday at the Adwa Victory Memorial Museum highlighted this strategic direction, bringing together key priorities in economic reform, financial sector development, and private sector participation. The forum also focused on ways to transform the country’s human, natural, and institutional resources into powerful drivers of growth and prosperity. Running through October 1, the forum provides a platform to highlight progress in macroeconomic management, expand financing for private enterprises, strengthen agricultural production, and modernize financial services. The key contributors to this progress include ongoing economic reforms, an expanded role for the private sector, enhanced agricultural financing, a declining inflation rate and digitalizing finance. National Economic Reform Ethiopia’s macroeconomic reform program represents a major step toward building an economy aligned with national development priorities while strengthening the state’s capacity to mobilize resources, expand employment and improve citizens’ living standards. Deputy Prime Minister Temesgen Tiruneh said Ethiopia is implementing economic and financial reforms aimed at moving the country from stabilization toward economic transformation. The measures include reforms to the foreign exchange market, monetary policy and financial sector regulation, as well as opening sectors to greater competition and investment. As part of efforts to strengthen national institutions, Ethiopia established Ethiopian Investment Holdings to improve the performance of strategic national assets and institutions, including Ethiopian Airlines, the Commercial Bank of Ethiopia and Ethio Telecom. These institutions have a significant role in expanding services, supporting economic growth and strengthening Ethiopia’s participation in regional and international markets. Ethiopia has also strengthened cooperation with development partners while implementing an economic reform program designed around its national priorities. The program has enabled the country to secure support from the International Monetary Fund to address balance of payments pressures, ease economic imbalances and sustain the reform process. Expanding Private Sector Expanding the role of the private sector has emerged as a major component of Ethiopia’s financial sector reforms, particularly through changes in lending policies that have enabled more resources to reach productive enterprises. The Commercial Bank of Ethiopia increased its annual lending to the private sector from about 30 billion Birr to nearly 300 billion Birr. The number of small and medium sized enterprises benefiting from financing also increased from around 5,000 to 35,000, strengthening their capacity to expand operations, invest and create employment. The bank has also provided financing for home and vehicle purchases by reducing the required down payment to 10 percent and allowing repayment periods of up to 20 years at an interest rate of 14 percent. To support innovation and entrepreneurship, the bank allocated five billion Birr for loans of up to 10 million Birr to emerging entrepreneurs without requiring collateral or an initial contribution. The initiative is intended to create additional opportunities for new businesses and emerging enterprises. These measures reflect efforts to create a financial system that responds more effectively to the needs of the productive economy and enables individuals and institutions to turn ideas into viable economic activities. Agricultural Financing Expanding agricultural financing is another important element of Ethiopia’s economic transformation, given the sector’s contribution to food security, employment, production and trade. The volume of loans extended to agriculture and related sectors increased from 28 billion birr last year to 189 billion Birr. The government is also investing in irrigation development, agricultural mechanization, improved land use and productivity enhancement. Minister of Planning and Development Fitsum Assefa said reform measures have contributed to easing inflationary pressures. She noted that average annual inflation declined from more than 26 percent before the reforms to slightly above 16 percent one year after their implementation, attributing the improvement to coordinated monetary and fiscal measures. Wheat production has emerged as one example of the transformation Ethiopia is seeking to consolidate. According to data presented at the forum, increased domestic wheat production has enabled the country to reduce its dependence on imports and move toward self-sufficiency. The Green Legacy initiative has also contributed to efforts to strengthen agricultural resources and food production while linking environmental protection with long term economic development. Declining of Inflation The decline in average annual headline inflation from about 26 percent in 2024 to nearly 16 percent during the 12 months following the reform reflects progress in efforts to address economic pressures and create a more stable environment for businesses and investors. The reforms included gradual adjustments to the ceiling on bank credit growth, which rose from 14 percent to 18 percent and then 24 percent before the ceiling was abolished. The government also shifted toward instruments such as securities sales to finance budget deficits rather than relying on direct borrowing from the National Bank of Ethiopia. Tax policy reforms have further strengthened the government’s capacity to mobilize and manage domestic revenue, supporting public expenditure and improving coordination between fiscal and monetary policies. Minister of Finance Ahmed Shide said the comprehensive macroeconomic reform has produced tangible results in easing the national debt burden and reducing inflation. He added that completing debt restructuring agreements would help ease pressure on public finances and reduce foreign exchange constraints. At the same time, direct and indirect fuel subsidies have exceeded 600 billion Birr over the past eight years. The government allocated 130 billion Birr for petroleum products during the current fiscal year, in addition to 100 billion birr to support fertilizer supplies, with the stated objective of protecting consumers and maintaining the productive capacity of farmers and businesses. Digitalizing Finance The digital transformation of banking services is another important component of Ethiopia’s financial sector modernization, expanding access to financial services, facilitating transactions and creating new financing opportunities. Services such as CBE Birr and CBE Fast Loan have expanded digital financial services to millions of customers, contributing to financial inclusion and facilitating access to banking services, particularly for small and medium sized enterprises. The forum also witnessed the official launch of the Ethiopian Finance Academy, formerly known as the Ethiopian Financial Studies Institute, following the expansion of its capabilities and the adoption of a new organizational structure. The academy is expected to prepare professionals capable of responding to developments in banking, capital markets and digital finance through training programs, professional certifications and specialized research on financial policy. It will also provide capacity building programs for leaders of financial institutions. The launch was attended by National Bank of Ethiopia Governor Eyob Tekalign, senior bank officials, heads of banking and insurance institutions and other invited guests. Governor Eyob said Ethiopia is working to build a strong and dynamic financial sector capable of supporting the country’s development ambitions and sustainable economic growth. He said strengthening the banking sector includes increasing capital, encouraging mergers and acquisitions, expanding financing and facilitating the participation of foreign banks. Conclusion The discussions at the Second Ethiopian Finance Forum demonstrate an integrated approach to economic transformation that combines macroeconomic stability, institutional development, private investment, increased production and financial modernization. The expansion of private sector lending, the growing number of small and medium sized enterprises accessing finance, increased agricultural financing and the expansion of digital financial services are contributing to a broader economic base and greater participation in national development. The decline in inflation, the development of alternative instruments for budget financing, improved domestic revenue mobilization and progress in debt restructuring are also important components of efforts to create a more stable economic environment. As Ethiopia continues implementing its reform program, greater integration of finance, production, technology and human capital development will be important to ensure that macroeconomic improvements translate into increased employment, higher productivity and improved living standards. The Second Ethiopian Finance Forum therefore provides a platform for assessing the progress of the country’s economic reforms while highlighting the financial sector’s role in mobilizing resources, supporting productive investment and strengthening the foundations for long term economic development.

Addis Ababa, October 1, 2026 (ENA)—Ethiopia and the World Bank have agreed to deepen their strategic partnership and accelerate cooperation aimed at driving private sector-led growth, creating jobs and strengthening the country’s economic resilience. Minister of Finance Ahmed Shide and National Bank of Ethiopia Governor Eyob Tekalign held discussions today with World Bank Managing Director of Operations Anna Bjerde and Regional Vice President for Eastern and Southern Africa Ndiamé Diop. In its press release sent to ENA, the Ministry of Finance said the minister highlighted the government’s ongoing economic reform agenda, including efforts to boost domestic revenue mobilization, improve the business environment and expand opportunities for private sector development. Ahmed also expressed appreciation for the World Bank’s continued support to Ethiopia, including through budget support operations. Bjerde welcomed the progress made under Ethiopia’s reform program, noting the government’s commitment to private sector-led growth and job creation.   She reaffirmed the World Bank’s commitment to further strengthening its partnership with Ethiopia and supporting the country’s development priorities, particularly its transition toward a stronger private sector-led economy under the new Country Partnership Framework. The two sides agreed to expand cooperation in key areas, including Mission 300, the AgriConnect Compact, the E-Mobility Program and the Water Forward Initiative. They also discussed expanding Ethiopia’s access to additional financing windows to strengthen the country’s resilience to climate-related and external shocks.   Both sides emphasized the need to improve implementation efficiency and accelerate development outcomes through the Development Ready Initiative, with a focus on delivering timely and tangible benefits to the Ethiopian people. The discussions reaffirmed Ethiopia and the World Bank’s shared commitment to advancing the country’s economic transformation, strengthening resilience and fostering sustainable and inclusive private sector-led growth.

Addis Ababa, October 1, 2026 (ENA)—The rapid expansion of digital financial services, coupled with comprehensive macroeconomic reforms, is creating a major turning point for the growth and transformation of Ethiopia’s banking sector, according to the National Bank of Ethiopia (NBE). Speaking on the second day of the Ethiopia Finance Forum 2026, Gemechis Dugasa, Director of Regulation, Licensing and Approval at the NBE, said simultaneous structural changes in the economy and the emergence of capital markets are reshaping Ethiopia’s financial landscape.   Dugasa made the remarks while opening a session titled “Partnering for Growth: An Enabling Policy and Regulatory Environment for Banking Sector Investment.” He said the rapid expansion of mobile banking, digital payments, mobile money and agent based financial services is creating new business models while raising the standard of financial services available to customers across the country. “Digital finance is changing the way financial services are delivered in Ethiopia,” Dugasa said, noting the continued growth of mobile banking, mobile money, digital payments and agent-based services. Ethiopia recorded digital financial transactions worth 33 trillion birr during the 2025/26 fiscal year, reflecting the rapid expansion of digital financial services, particularly mobile money and digital banking. Dugasa, however, stressed that the rapid digitalization of the financial sector must be accompanied by strong cybersecurity, effective data protection, reliable digital infrastructure and strengthened operational governance. He said Ethiopia has also been modernizing its banking regulatory framework while establishing a legal basis for foreign participation in the financial sector. Developments in capital markets and digital financial infrastructure are further expanding opportunities for investment and innovation, he added. According to Dugasa, foreign investors entering Ethiopia’s financial sector are expected to bring more than capital.   They are expected to contribute long term investment commitments, advanced technologies, knowledge transfer, human capital development, sound governance practices and international financial connectivity. He also emphasized the need to adapt international financial practices to Ethiopia’s economic circumstances rather than adopting them without consideration of local realities. Such an approach, he said, would help support sustainable and responsible growth while strengthening the resilience and capacity of the national financial system. Ethiopia is undertaking broad economic reforms aimed at strengthening macroeconomic stability, expanding financial inclusion, mobilizing investment and accelerating digital transformation. The financial sector is at the center of these efforts, playing a critical role in mobilizing savings, financing investment, supporting innovation and expanding access to financial services. The NBE is hosting the Ethiopia Finance Forum 2026, which brings together policymakers, financial institutions, development partners, private sector representatives and financial sector experts to examine the modernization and structural transformation of Ethiopia’s financial system. The forum provides a platform for stakeholders to discuss policy and regulatory reforms, investment opportunities and the future direction of the financial sector while promoting collaboration among domestic and international actors. The discussions are also expected to help build greater alignment on the future of Ethiopia’s financial system and identify opportunities for investment and partnership as the country advances its broader economic transformation agenda.

Addis Ababa, October 1, 2026 (ENA)— Ethiopia has established a national committee to assess economic losses and foregone development opportunities linked to water projects that have been “blocked or obstructed by Egyptians” over the Nile River, Minister of Water and Energy Habtamu Itefa announced. In an exclusive interview with ENA, Habtamu said the committee has so far identified more than 22 development projects, including the Grand Ethiopian Renaissance Dam (GERD), that Ethiopia were obstructed by Egypt. “We have established a national committee. And as a {committee}, we counted more than 22 projects that have been blocked or obstructed by Egyptians, including the GERD project,” the Minister disclosed. Ethiopia’s longstanding concerns over Nile Basin development inequalities are gaining growing scholarly support, strengthening its case for redress over historical economic losses and foregone development opportunities. In that regard, Minister Habtamu said the newly established committee is compiling evidence on the projects and examining the basis for Ethiopia’s compensation claims. The assessment involves experts, former ministers, advisers and legal professionals who are examining the scale of the losses and possible approaches for addressing them, he pointed out. “We are already collecting the evidence. We have documented as many of the projects as possible that they (Egyptians) opposed, including the GERD, over which they even attempted to threaten Ethiopia, to say as if they have a giant military power and then come to exercise something, which is really a crime in front of the international community,” Habtamu stated. Habtamu further elaborated that the review will consider not only projects that were prevented from being implemented, but also Ethiopia’s environmental conservation efforts and the benefits its water-management infrastructure provides downstream. He cited the Green Legacy Initiative, under which more than 50 billion trees have reportedly been planted, noting that substantial activities have taken place in major river basins, including the Baro, Abay and Tekeze. Habtamu said this conservation efforts should be considered in assessing Ethiopia’s contribution to protecting water resources and addressing climate-related impacts across the Nile Basin. He also highlighted the GERD’s potential role in regulating river flows, saying its operation could help reduce downstream flooding and maintain water availability during periods of lower rainfall. The Minister pointed to current El Niño-related rainfall conditions as an example of the importance of coordinated water management, saying flow regulation could provide benefits to downstream countries, including Sudan and Egypt. Outlining possible scenarios for securing compensation, the Minister said Ethiopia’s approach would have clear milestones, with negotiation and mutual understanding as the preferred option, while other scenarios would involve Ethiopia taking further action.