Issue 179: Debt Breakthrough & Salary Deductions

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Ethiopia's financial landscape has seen significant shifts this past week. The nation secured an $8.4 billion debt restructuring agreement with official creditors.

Meanwhile, a highly anticipated memorandum of understanding between Ethiopian Investment Holding and Dodai, aimed at deploying 100 battery swap stations in Addis Ababa within a year and expanding to 300 over three, fell through after five months.

A bill mandating monthly salary deductions for disaster relief has been submitted to Parliament. At Addis Ababa University (AAU), a group of students is preparing to take legal action against the institution.

On a brighter note, Better Auth, an Ethiopian authentication framework for TypeScript, joined Y Combinator and secured $500,000 in funding, though a US visa rejection casts a shadow over their progress. Other developments include the licensing of Ethiopia's first investment banks, a proposed mandatory salary deduction for disaster relief, and an analysis on onboarding MSMEs for digital financial.

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Ethiopia has reached an agreement in principle with its official creditors on restructuring $8.4 billion of debt, the finance ministry said on Friday, adding it hoped the deal could boost difficult talks with other creditors including bondholders. Read more.

Ethiopian Investment Holdings (EIH) has terminated its Memorandum of Understanding (MoU) with Addis Ababa-based electric vehicle (EV) startup Dodai Inc. five months after it was signed. Read more.  

Fuel prices in Ethiopia jumped today, with gasoline rising to 112.67 birr per liter, diesel and kerosene both reaching 107.93 birr, and jet fuel climbing to 113.20 birr, according to new rates effective immediately. Read more.

Better Auth, a 7-month-old open-source authentication framework for TypeScript, developed by two Ethiopians, has been selected for Y Combinator's Spring 2025 Cohort, securing $500,000 in seed funding. Read more. 

A bill requiring monthly salary deductions for disaster relief has been submitted to Parliament. Introduced to the House of Peoples’ Representatives on 18 March 2025, the draft proclamation seeks to establish the Ethiopian Disaster Risk Management Commission as an independent federal government body. Read more.

Caught between the old and new, MSMEs in Ethiopia are hindered by informality, vague definitions, and fractured finance. As digital financial services grow, true inclusion depends on building an ecosystem where digital tools meet informal grit, transforming overlooked entrepreneurs into powerful drivers of growth. Read more.  

Safaricom chief executive officer Peter Ndegwa says the firm is on course to transform from a telco to a technology company by 2030. Read more.  

A new task force under the city administration will enforce new regulations designed to restore order on the streets of Addis Ababa. Read more.

We're excited to welcome guest contributors to Shega Media! If you have insights on Ethiopia’s startup scene, innovation, SMEs, or economic developments, we want to hear from you. Your expertise can spark discussions, educate readers, and expand your professional reach. More info here. 

Ethiopia's Capital Market Authority has issued its first investment bank licenses to CBE Capital S.C. and Wegagen Capital S.C., which have been established as independent subsidiaries spun off from their respective commercial banks. Read more.

A group of students at Addis Ababa University (AAU) are gearing up to take legal action against the institution, accusing it of making “unfair,” “non-voluntary,” and “non-participatory” decisions in its plans for administrative restructuring. Read more.

The International Finance Corporation (IFC), the largest global development institution focused on the private sector in emerging markets, and Kifiya Financial Technology, signed a partnership to bring digital financial services to one million smallholder farmers. Read more.

A fintech, a commercial bank, and an insurance company have joined forces to launch an integrated digital credit and insurance service. Read more.