Issue 210: New Perimeters

October 27, 2025

Top Stories of the Week

  1. Ethiopia’s New Railway Plan Envisions Direct Line to the Red Sea

  2. NBE Turns Attention to Third-Party Bank Accounts, Unlawful Remittances

  3. Ethio Telecom to Link SIM Cards and Telebirr Loans with Fayda National ID in New Enforcement

  4. Spiro Secures $100 M in Africa’s Largest-Ever E-Mobility Investment

  5. Ethiopian Entrepreneur Gives Araba Minch’s Forgotten Bananas Second Life

Ethiopia’s New Railway Plan Envisions Direct Line to the Red Sea

The Ethiopian Railway Corporation (ERC) has unveiled plans for a $1.58 billion standard-gauge railway intended to connect northern Ethiopia with the Red Sea ports of Tadjourah, Assab, and Massawa.

The infrastructural ambitions were laid out in a 21-page company report presented on Tuesday, October 21, 2025, during the National Railway Business and Investment Summit. Read more.

Can Trust Scale? Dantel’s Big Bet on Social Commerce in Ethiopia

In Ethiopia’s Mercato, trust moves goods across the country. Dantel, a socio-ecommerce platform, is bringing that trust online, linking traders, affiliates and buyers. Read more.

NBE Turns Attention to Third-Party Bank Accounts, Unlawful Remittances

The National Bank of Ethiopia (NBE) warned on Friday that it will be taking action against businesses and individuals who conduct official transactions through personal or third-party bank accounts, alleging the practice “appears to be intended to evade oversight by tax authorities” and could involve proceeds from criminal activity. Read more.

Russia Eyes Expanded Automotive Presence in Ethiopia

Following the successful shipment of a batch of tractors from production lines in Russia, automakers UAZ and AvtoVAZ are eager to establish a wider footprint in Ethiopia, including potential local assembly ventures. Read More.

Ethio Telcom to Link SIM Cards and Telebirr Loans with Fayda National ID in New Enforcement

Ethiopia’s National ID Program has announced plans to integrate its mobile SIM cards and related telecom services with the Fayda National ID system, a move aimed at tightening loan repayment compliance for telebirr users.

The new enforcement aims to curb practices where individuals abandon SIM cards, change numbers, or discontinue services to avoid repaying telebirr loans. Read more.

This Ethiopian Startup is Developing Amharic Voice-Guided Smart Cane for the Visually Impaired

Nigus Amare, creator of Bright Cane, is developing an Amharic voice-guided smart cane to support Ethiopia’s visually impaired. The device merges ultrasonic sensors with voice feedback to alert users of obstacles and guide them safely through uneven roads and crowded streets. Read more.

Nib International Bank Faces Heavy Hit from Forex Revaluation, Pays 348 million Birr in Penalties

Nib International Bank S.C. (NIB) has reported a significant loss of 2.9 billion Birr, primarily due to extraordinary foreign exchange revaluation losses, during its annual shareholders meeting. The bank also faced substantial penalties amounting to 348.4 million Br.

These penalties included a 251 million Birr fine for liquidity shortages and a 97.4 million Birr charge for violations related to Real-Time Gross Settlement (RTGS) payments. The bank has already settled these penalties.

The previous management of the bank issued Letters of Credit (LCs) totaling over $80 million without having sufficient foreign currency reserves. Read more.

What’s on Our Mind

In Pursuit of Reform, Ethiopia Maybe Squeezing Its Small Businesses Dry

Last week, the National Bank of Ethiopia ordered commercial banks to identify and report businesses using personal or third-party accounts for commercial transactions. The directive, issued in coordination with the Revenues Ministry and intelligence services, is part of a sweeping campaign against tax evasion and illicit financial flows.

It’s an ambitious move by the newly appointed central bank governor, Eyob Tekalign(PhD), who has vowed to tighten oversight of remittances and bring transparency to Ethiopia’s murky financial system. The effort fits within the government’s larger economic reform agenda, which aims to double the country’s tax-to-GDP ratio currently hovering around 8%, and bring informal trade into the light.

On paper, this is progress. Digital IDs are now mandatory for most financial and public services. New laws target money laundering and unexplained wealth. The reforms align with global standards, signaling Ethiopia’s determination to modernize its economy and reassure international lenders.

But beneath the rhetoric of reform lies a more complicated reality. In an economy still reeling from conflict, inflation, and currency shortages, the rapid formalization push risks strangling the very actors that keep commerce alive, small and informal traders.

In Addis Ababa’s sprawling markets, many businesses rely on personal accounts because the alternative, navigating Ethiopia’s labyrinthine bureaucracy, is simply too costly. A corner shop that deposits earnings in a cousin’s account is hardly a front for terrorism financing. Yet under the new regime, such transactions could invite scrutiny, fines, or even closure.

The urban elite, meanwhile, will find ways around the system. Capital flight already drains billions annually. But Ethiopia’s shrinking middle class and millions of informal workers, the real engine of its urban economy, have little recourse. To them, “formalization” often means another layer of paperwork, another official demanding a bribe.

The government’s desire for accountability is understandable. Yet reform without sensitivity risks hollowing out what remains of the productive sector. Ethiopia doesn’t need a financial inquisition; it needs gradual, inclusive modernization, one that builds trust rather than fear in its economy’s beating heart.

Munir Shemsu, Deputy Editor in Chief, Shega

Spiro Secures $100 M in Africa’s Largest-Ever E-Mobility Investment

Africa’s electric mobility story has often been one of promise over progress. Infrastructure is scarce, power grids are unreliable, and most markets still run on cheap imported motorcycles. But Dubai-headquartered Spiro has spent the past two years trying to rewrite that narrative.

The company last week announced a $100 million investment round led by the Fund for Export Development in Africa (FEDA), the development arm of Afreximbank. The raise marks Africa’s largest-ever EV mobility investment and cements Spiro as the continent’s most aggressive electric motorbike company. Read more.

Passengers Jump from Windows in Fatal Ethiopia Train Crash

Fifteen people were killed in eastern Ethiopia after a train derailed and collided with a stationary carriage in the town of Shinile on Monday night, October 20. Read more.

Ethiopian Entrepreneur Gives Araba Minch’s Forgotten Bananas Second Life

Ephrem Debebe, founder of Efi-Lude, is giving an overlooked banana variety that often goes to waste in Arba Minch a second life.

With support from a $5,000 grant from the Bruh Ethiopia Entrepreneurship Competition, his enterprise has begun small-scale production, producing 10 to 20 kilograms a day using locally assembled slicing and frying machines. With global snack trends aligning in its favor, Efi-Lude aims to scale, reduce food waste, and compete with potato-based snacks. Read more.

Heads Up: What’s Coming & What to Catch

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