Council of Ministers Approves, Refers Agreements and Bills on Wide Ranging Issues

Addis Ababa, May 26, 2026 —The Council of Ministers passed today decisions on loan agreements spanning agriculture, energy, trade, and climate finance as well as wide ranging legislative frameworks.

The Council of Ministers initially examined two loan agreements. First on the agenda was a 46.3-million USD loan agreement secured from the African Development Bank for the execution of the Pastoral Food and Livelihood Improvement Project.

The second is a loan agreement of 146.1 million SDR from the International Development Association to finance the sixth phase of the Productive Safety Net Program.

Ascertaining that both loan agreements align with the nation’s debt management policy, the Council unanimously decided to forward the respective draft ratification proclamations to the House of People's Representatives.

The Council then reviewed a draft proclamation tabled to amend the Federal Tax Administration Proclamation.

While the Tax Administration Proclamation No. 983/2016 has served as the governing legal framework, the far-reaching macroeconomic transformations witnessed across the country over recent years have necessitated an overhaul to harmonize the system with contemporary global benchmarks, settle tax disputes in a fair, amicable, and efficient manner, institute a culture of transparency and accountability, and ensure robust enforcement of tax laws.

Following deliberations, the Council integrated key inputs and unanimously voted to refer the draft proclamation to the House of People's Representatives.

The Council also discussed the draft proclamation on the Ethiopian Carbon Market.

The bill sets the legal foundation to operationalize the national carbon market strategy, attract green investments, facilitate technology transfer, establish clear regulations for carbon trading mechanisms, and implement safeguards to protect local communities and environments hosting carbon projects, while introducing an equitable framework for revenue sharing among the government, developers, local communities, and key stakeholders, ensuring that Ethiopia honors its commitments under international climate treaties and greenhouse gas emission reduction pledges.

The Council unanimously approved the draft proclamation and referred it to the House of People's Representatives.

The draft Ethiopian Statistics Proclamation was the other agenda item tabled for discussion.

The bill seeks to ensure the professional independence of the Ethiopian Statistical Service, clearly delineates the regulatory and executive roles of oversight and implementing bodies, strengthens coordination among all producers of official statistics, uphold data confidentiality, elevate the quality and accessibility of statistical outputs, and align domestic statistical methodologies with international principles and standards.

The Council enriched the draft and unanimously voted to forward it to the House of People's Representatives.

Furthermore, the Council deliberated on the draft National Energy Policy.

Harmonized with the Homegrown Economic Reform, the Ten-Year Development Plan, the Green Economy Strategy, and the Sustainable Development Goals, the policy outlines a framework to harness the nation's energy resources affordably, guaranteeing a sustainable, reliable, secure, cost-effective, and competitive energy supply while maximizing benefits for all citizens.

After comprehensive deliberations, the Council enriched the document and unanimously decreed its immediate implementation from the date of its adoption.

The Council then turned its attention to the draft National Policy on Women’s Empowerment and Gender Equality.

The policy is structured to confront the root causes of systemic gender disparities, fortify mechanisms for the prevention of, protection from, and response to gender-based violence, and address the specific needs of women with disabilities and other highly vulnerable segments of the population, aligned with international and continental gender equality treaties ratified by Ethiopia.

 

The policy was unanimously approved for immediate implementation.

The Council also appraised the draft Insurance Proclamation.

It is designed to serve as a robust legal framework to govern and guide the insurance sector, bolster market credibility, foster a fair, safe, and stable insurance ecosystem, and protect the interests of policyholders and insurance clients.

Following review, the Council unanimously decided to forward it to the House of People's Representatives.

The Council proceeded to deliberate on the draft Ethiopian Trade Policy.

The policy is structured to effectively steer domestic and international trade systems, reinforce interventions designed to bridge specific market gaps, diversify export commodities and services to reduce the historical over-reliance on primary agricultural products, establish rigorous product safety standards and fair trade practices, and offer strategic support to domestic industries to build competitive capacity and enhance productivity.

The Council debated on the policy and unanimously approved its implementation starting from the date of its adoption.

It then reviewed a draft amendment regulation introduced to redefine the organizational structure, mandates, and duties of the Petroleum and Energy Authority.

The regulation seeks to empower the Authority to discharge its statutory responsibilities with heightened efficiency and competence.

Following extensive deliberations on the text, the Council incorporated key inputs and unanimously decreed that the regulation shall enter into force upon its publication in the Federal Negarit Gazette.

The Council further considered a draft regulation aimed at establishing clear rules for the transparency of beneficial ownership information concerning entities endowed with legal personality.

This regulation provides the necessary enforcement mechanisms for effective execution of the existing proclamation on the Prevention and Suppression of Money Laundering and the Financing of Terrorism.

Following a comprehensive review, the Council incorporated inputs and unanimously decided that the regulation be effective upon its publication in the Federal Negarit Gazette.

The draft Food System and Nutrition Proclamation was the other issued discussed by   the Council.

The bill provides a legal foundation to execute interventions meant to mitigate and eliminate the adverse impacts of malnutrition on public health, education, the environment, productivity, social cohesion, and the national economy, establishing a coordinated national oversight structure, securing sustainable resource allocation, and enhancing community ownership, thereby steering the nation toward achieving its global food system commitments and domestic nutritional targets.

The Council thoroughly reviewed the draft and unanimously resolved to forward it to the House of People's Representatives.

Finally, the Council deliberated on a draft regulation brought forward to govern the allocation of government budgetary support to autonomous universities.

The regulation aims to transition state funding for autonomous institutions toward a transparent, block-grant system that ensures financial accountability, equity, and efficiency, while encouraging higher learning institutions to gradually increase cost-sharing capabilities and maintain standard educational outcomes under a framework of mutual responsibility.

Following discussion, the Council enriched the draft and unanimously ratified the regulation, decreeing its enforcement upon publication in the Federal Negarit Gazette.

In addition, the Council discussed a legislative framework designed to transition the agricultural sector from traditional practices to a business-driven model, amplify the market bargaining power of smallholder producers, foster value addition and integrated industrial input linkages, legally support the transition of capable smallholders into medium-scale developers, reinforce national food security, and stimulate job creation.

The draft proclamation on establishment of Agricultural Business Company was then referred to the House of People's Representatives.