Ethiopia will ease several foreign currency restrictions while maintaining key controls on businesses, the International Monetary Fund said Thursday in its latest review of the country’s economic reform program.
The announcement comes ahead of an expected visit by IMF Managing Director Kristalina Georgieva, her first trip to Ethiopia since assuming the role in 2019.
The IMF said the National Bank of Ethiopia (NBE) committed to removing limits on foreign currency for travelers and reducing restrictions on family remittances.
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The timing will be determined in a study before the next program review. A backlog of dividend payments will be cleared over 18 months under a September directive.
Ethiopian authorities pledged to eliminate a 2.5 percent commission on government foreign exchange transactions that had created multiple exchange rates, according to the IMF report.
Two major restrictions remain: Businesses must still obtain tax clearance to send profits abroad and get central bank approval before accessing foreign currency for imports.
The IMF said Ethiopia’s central bank will limit currency market intervention to controlling volatility through public auctions, with results published immediately.
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The Ethiopian birr has lost over 100 percent of its value against the dollar in the last six months in official trading after the country adopted a floating exchange rate regime.
(BirrMetrics)
Federal Court sentences senior clergyman to 5 years in prison, 10,000 birr fine for attempting to withdraw over $6 mln from AU account
The Federal High Court has sentenced kesis Belay Mekonnen, A Senior Ethiopian Orthodox Tewahedo Church (EOTC) Clergyman, To Five Years of Rigorous Implive for his involvement in an attempted targeting au).
The court also sentenced the second and third defendants, Eyasu Endale and Bereket Mulatu, to three years and three months in prison, with a 3,000 birr fine each.
The case involved allegations that kesis Belay Mekonnen and four others attempted to withdraw over “USD six million” from an AU account at the Commercial Bank of Ethiopia. The AU previously stated that “a series of Payment Transfer Orders were submitted” at its headquarters branch in Addis Ababa by “an individual who is not an employee of the African Union.” The funds were purportedly designated for “construction and water drilling projects.”
Following a review of witness testimonies and material evidence, the court had issued a guilty verdict on 15 January and scheduled today’s sentencing.
During today’s hearing on 30 January 2025, the court ruled that the defendants engaged in a “coordinated and organized criminal act.” Prosecutors cited violations of multiple provisions of the Criminal Code related to corruption offenses, while police had previously described the scheme as an “act that tarnishes our good relations with African countries.”
Kesis Belay Mekonnen, Who was shirving as deputy general manerer at the EOTC Patriarchate at the time of his arrest, was acused of leading the fraudulent scheme the scheme of the second defenant, Eyasu endede, an agricultural investor; The third defenant, bereket mustu, a commission agent; Alemgengena Samuel, a commission agent; and abara merga, manager of Nimona Trading Business Enterprise.
The fourth and fifth defendants’ cases were temporarily suspended due to their repeated failure to appear in court.
The court ordered that the sentences be enforced by the Addis Abeba Correctional Facility, taking into account the time already served in detention.
(Addis Standard)
Media houses raided, 9 media workers arrested
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The International Federation of Journalists (IFJ) condemned in the strongest terms possible these acts of harassment and intimidation of journalists and media workers who were simply doing their job.
According to local reports, the offices of media outlets Nisir International Corporation and Ashara were raided because of their reports on the activities of a local volunteer militia known as Fano. Four employees from Nisir, mainly journalists and media workers were arrested by security forces and local police and two of them are believed to be detained in a prison in Bahir Dar, while the other two are believed to be held in the town of Gayint, about 160 Kilometers from Bahir Dar.
On the other hand, five journalists and media workers from Ashara media outlet who were arrested at their studio in Bahir Dar on 26 May are held in a detention centre outside of the city. Local media reported that over 4000 people suspected of crimes have been arrested in an “ongoing enforcement operation”.
The Head of the Amhara’s Peace and Security Bureau said in a statement, “The Government will continue in a reinvigorated manner this peacekeeping work.”
The Ethiopian Human Rights Commission (EHRC) expressed concern about the spate of arrests that had “netted “ journalists and other social activists and lamented that these arrests were unlawful as they did not follow basic human rights principles.
IFJ General Secretary Anthony Bellanger, said that since the crisis erupted in the Tigray region in 2020, there has been a systematic pattern of repression by the Ethiopian Government to silence the media. “Journalists have been killed with impunity, tortured and harassed in the region in other to stop them from doing their work and to deny the Ethiopian public from receiving the terrible news of killings, plunder and rape from the frontlines. We call on the Ethiopian Government to release the nine media workers arrested on 26-27 May unconditionally, return every equipment that was seized from Nisir and Ashara and to compensate them for any damage to their studios.”
(Ifj.org)
Ethiopian government to call on Cambridge to return artefacts
Ethiopia will demand the return of artefacts currently held by the University of Cambridge next year, according to reports by The Times.
The Ethiopian government will request the return of multiple artefacts from both the Universities of Cambridge and Oxford. It is looking to reclaim several items which were seized by British forces after the Battle of Magdala in 1868 as part of a major reparation effort.
The artefacts taken include rare items of clothing, medieval bibles, parchment, swords and shields. The Ethiopian Heritage Authority (EHA) is planning to push for the return of the items next year.
One of the items the EHA hope to reclaim is a cloak worn by former Empress consort of Ethiopia Queen Terunesh, which is currently at the Museum of Archaeology and Anthropology (MAA) in Cambridge.
The MAA is also in possession of several other garments originating from Ethiopian royalty, while Cambridge University Library is in possession of medieval bibles created for the Ethiopian Orthodox Church, according to The Telegraph.
Abebaw Ayalew Gella, the director general of the EHA, described the artefacts from Magdala as “some of the most important things in the political and cultural history of Ethiopia”. While the British government will be asked to support the return of items, Oxford and Cambridge, in addition to the Charity Commission, will ultimately be responsible for the final decision.
Prince Ermias Sahle-Selassie, grandson of Haile Selassie, the last emperor of Ethiopia, told The Telegraph that the “items have a lot in terms of inherent identity”. He continued: “The younger generation would get pride back by having them return home.”
Last month, a Cambridge researcher revealed that there are around 350,000 African artefacts in University storage, the majority of which were found to have been acquired during British colonial rule. This came after both the MAA’s return of 39 artefacts to Uganda, and Trinity College’s return of four aboriginal spears in a reparation ceremony last year.
In 2022, Cambridge was also granted permission by the Charity Commission to return 116 Benin Bronzes displayed at the MAA. However, the return was delayed last year when it emerged that the bronzes were to become the property of the King of Benin, rather than of the Nigerian government.
(Varsity)
AfDB, KPMG Propose Resource-Backed Currency to Ditch Dollar in Africa’s Energy Financing
The African Development Bank (AfDB) and KPMG South Africa have unveiled an ambitious plan to reduce Africa’s dependence on the US dollar and euro in financing energy projects, proposing a new mechanism backed by the continent’s vast mineral wealth.
Launched at the Africa Energy Summit in Dar es Salaam, Tanzania, the report, “New Mechanism for Mitigating Currency Risk to Support Africa’s Energy Transition,” advocates for a “non-circulating currency” underpinned by a diversified basket of critical commodities.
This currency aims to mitigate foreign exchange volatility, reduce financing costs, and ensure the affordability of Independent Power Projects (IPPs) across Africa.
“Africa’s green energy future depends on unlocking innovative financial solutions that empower the continent to harness its vast mineral wealth,” said Wale Shonibare, Director of Energy Financial Solutions at AfDB.
“The proposed currency convertibility mechanism will play a crucial role in stabilising investment flows and accelerating sustainable development,” adds Shonibare.
Africa holds roughly one-third of the global supply of critical minerals essential for the energy transition, including cobalt, lithium, and rare earths.
The proposed currency would pool these resources, providing a stable alternative to traditional dollar or euro-denominated financing, which often exposes projects to currency volatility and higher costs.
The initiative is part of a broader move toward de-dollarization in Africa, aimed at reducing reliance on foreign currencies and strengthening regional financial integration.
According to the report, this approach could lower capital costs for clean energy projects, enhance Africa’s bargaining power in global markets, and unlock investment opportunities.
“The demand for critical minerals will grow exponentially over the next 30 years,” said Auguste Claude-Nguetsop, Partner at KPMG Southern Africa. “Africa’s role in the global energy transition cannot be overstated. This mechanism addresses currency risks and creates an environment for lower-cost investment.”
The report emphasizes that successful implementation could narrow Africa’s USD 400 billion annual funding gap for infrastructure, support sustainable development goals, and drive long-term economic growth.
Frank Blackmore, Lead Economist at KPMG South Africa, highlighted the transformative potential: “By addressing currency risks, we can unlock industrialization and enhance Africa’s economic sovereignty.”
The AfDB and KPMG are calling for immediate steps to establish governance frameworks, secure partnerships, and pilot the mechanism to demonstrate its effectiveness.
During his presidential campaign, current US President Donald Trump vowed to make de-dollarization efforts—aimed at reducing global reliance on the U.S. dollar—prohibitively expensive, pledging to impose 100 percent tariffs on nations that move away from the currency.
(BirrMetrics)
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