Issue 148:

Hello

This week, the Ethiopian Capital Market Authority is set to launch a regulatory sandbox, paving the way for innovative fintech solutions. Additionally, we explore significant updates on the Megenagna CMC light railway, advancements in Ethiopia's securities exchange, and the launch of new digital financial services.

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The Ethiopian Capital Market Authority (ECMA) is set to introduce a regulatory sandbox in two weeks, opening the door for financial technologies with disruptive business models. In February the Ethiopia Launches Regulatory Sandbox to Accelerate Financial Innovation. The Innovative Finance Lab (IFL) has officially launched Ethiopia’s Regulatory Sandbox, which will allow innovative firms to test their products and services in a controlled environment before market launch. Read more.  

A study to determine the fate of the Megenagna CMC light railway has been completed. The results from the Addis Ababa Light Rail Company will be submitted to the mayor’s office, presenting options that may include either demolition or alternative solutions. The light rail is among 70 mega projects that Ethiopia undertook with a $14.8 billion loan from the Chinese government and related financial institutions between 2006 and 2018, data from the Ministry of Finance show. Read more.  

Ethiopia’s securities exchange is set to receive a major technological upgrade, having signed two landmark agreements for an Electronic Trading Platform (ETP) and a Broker Back Office and Order Management System (BBOMS). Read more.  

Ethiopia’s second-biggest private commercial bank has launched a Sharia-compliant digital financial service through a modified version of Dube Ale, a buy now, pay later scheme kicked off last year. Read more.

Equb Financial Technology has teamed up with Awash Bank to offer customers interest-free savings and loan options through digital platforms. Read more.

Ethiopia has officially signed a landmark agreement with UAE's AMEA Power to develop the Aysha-1 wind project, a 300 MW initiative that will become the largest wind energy project in the Horn of Africa. The deal, valued at $600 million, was finalized on August 17, 2024, during a ceremony attended by Ethiopian Minister of Finance Ahmed Shide and AMEA Power Chairman Hussain Al Nowais. Read more.  

Cash Go, one of Ethiopia’s premier digital remittance platforms, has returned with features suited to the floated currency. Read more.

The National Bank of Ethiopia (NBE) has introduced a new system to monitor commercial banks on a daily basis as part of a broader set of financial reforms the country is undertaking, which includes the adoption of a free-floating exchange rate system. Read more.

As second-hand 'Bonda' clothing takes over the streets and social media of Addis, local textile manufacturers are struggling in the shadow of a booming contraband trade. Is this the dawn of affordable fashion or a crisis in the making?  Read more.

Jamii is leveraging traditional Edir institutions to deliver microinsurance to the financially underserved. With an impressive 1 million people onboard, this Insurtech startup is bringing financial protection to those who need it most. Read more.