Ethiopia’s bold experiment with exchange rate liberalisation is yielding mixed results, as the Ethiopian Birr weakens and inflation pressures mount, according to a new report from the Ethiopian Economics Association (EEA).
The shift to a floating exchange rate regime in July 2024 has seen the ETB slide 11.5 percent against the US dollar between mid-September and December, hitting 127.92 birr/USD by year-end.
While the move aims to align the currency with market forces, it has stoked inflationary fires and exposed structural frailties in east Africa’s second-most populous nation.
The EEA’s Quarterly Macroeconomic Updates, released in February, tracks the birr’s depreciation alongside a narrowing gap between official and parallel market rates—from 65 ETB in July to 14 birr by December.
Policy shifts, including a National Bank of Ethiopia (NBE) cap on bank bid-ask spreads at two percent in October, have bolstered market efficiency.
Yet, volatility persists: a November ban on the Franco Valuta system, an informal forex workaround for importers, triggered a 3.7 percent drop in the birr’s value that month, with subsequent analysis suggesting only a fleeting stabilisation.
For investors, the currency’s trajectory signals both risk and opportunity. A weaker ETB could enhance export competitiveness—coffee and sesame are key earners—but it inflates the cost of imports critical to Ethiopia’s 28.9 billion US dollars external debt and consumer staples like fuel and wheat.
“The depreciation is a double-edged sword,” notes an expert. “It’s necessary for long-term adjustment, but short-term shocks are testing resilience.”
Inflation, meanwhile, remains a thornier issue. Headline rates hit 2.4 percent month-to-month in September 2024, with food inflation—spiking at 5.59 percent for vegetables—outpacing non-food at 11.58 percent for education.
Regional disparities are stark: Benishangul-Gumuz and Amhara logged quarterly averages above 30 percent, driven by conflict-disrupted supply chains, while Harari held at 17.2 percent.
The report ties this to exchange rate pass-through, with a correlation of 0.71 between non-food inflation and the birr/USD rate. Beyond a 100 birr/USD threshold, food price rises accelerate, portraying Ethiopia’s import reliance.
The NBE’s tight monetary stance since August 2023 has tempered demand-side pressures, but supply-side bottlenecks—poor infrastructure, low export diversity, and insecurity—keep inflation volatile.
The EEA urges a multi-pronged fix: bolster forex reserves via exports and remittances, streamline logistics, and diversify beyond commodities. “Without structural reform, stability will remain elusive,” warns the expert.
(BIRRMETRICS)
Ethiopian Airlines selects Safran’s Z400 Economy seats
Ethiopian Airlines has signed an MoU with Safran for the provision of Z400 economy class seats for eight Boeing 777-9 aircraft. Delivery of these aircraft is set for mid-2027.
Each aircraft will be equipped with 383 passenger seats in economy class showcasing Ethiopian Airlines’ commitment to expand its fleet and support it growth trajectory.
The Z400 seats chosen by Ethiopian Airlines represent the ultimate choice for long-range operations, offering passengers an improved inflight entertainment experience with the latest generation 13-inch screens, a notable upgrade from the previous 11.6-inch displays. Furthermore, the seats are 12.5% lighter than the previous generation seats due to fewer components and the use of advanced lightweight materials, ensuring cost efficient operation and sustainability.
Ethiopian Airlines and Safran have cultivated a strong, long-standing partnership over the years, highlighted by the ongoing collaboration to equip their A350 aircraft with business and economy class seatings.
Ethiopian Airlines Group CEO Mesfin Tasew said: “We are pleased to have signed this MoU with Safran for the provision of the Z400 seats for our 777-9 aircraft. As a technology driven airline, we are committed to enhancing our passengers’ onboard experience through state-of-the-art technology that offer passenger comfort while also ensuring operational efficiency and sustainability.”
Victoria Foy, CEO of Safran Seats, added: “We are delighted to deepen our partnership with Ethiopian Airlines by providing our advanced Z400 seats for their B777- 9 fleet. This collaboration reflects our shared commitment to innovation and excellence in passenger comfort, supporting Ethiopian Airlines as it expands its horizons and enhances its inflight services.”
(Timesaerospace)
Cholera cases in Europe linked to holy water imported from Ethiopia
Consumption of holy water from Ethiopia has recently led to several cases of cholera in Germany and the United Kingdom (UK) with a multidrug-resistant Vibrio cholerae strain, according to a study published in Eurosurveillance. Four patients were infected through imported water, while three patients had travelled in Ethiopia. Researchers detected multidrug-resistant Vibrio cholerae O1 linked to recent outbreaks in Eastern and Middle Africa in clinical specimens and the holy water.
The ongoing cholera outbreak in Ethiopia began in 2022, and by 9 February 2025 a total of 58,381 cases and 726 deaths had been reported. There was a resurgence of the outbreak on 6 February 2025 reported in the Amhara region leading to 163 cases and 3 deaths, with more recent numbers being unavailable. One identified contamination source is the Bermel Giorgis holy well, which is located in the Quara district and is a site of pilgrimage attracting visitors worldwide. Pilgrims consume or bathe in the water for physical or spiritual healing, and often take it home.
In Germany, three people were initially reported via the European surveillance portal for infectious diseases (EpiPulse) as suspected of having cholera on 25 February 2025. All patients were identified as being of Ethiopian ethnicity. Two had travelled to Ethiopia in January, and acquired a small plastic bottle of water with water from the holy well in Bermel Giorgis. Upon their return to Germany, both people consumed the water. A third person received splashes of water to the face, including the lips, and possibly ingested some of it. In early February, all three individuals developed diarrhoea and vomiting, and were hospitalised. One patient required intensive care, but all recovered.
In the UK, the United Kingdom Health Security Agency (UKHSA) identified four patients, among which two reported recent travel to Ethiopia to the Amhara region, and one specifically mentioning a 9-day trip to Bermel Georgis. A third patient had not travelled to Ethiopia, but reported that they had drank holy water from the well that had been brought back by the fourth patient, who had also become ill after consuming the water in the UK. Three were admitted to hospital, with one requiring intensive care. One person who had also travelled to Ethiopia also had symptoms of cholera, but was not tested and recovered without medical treatment.
Genetic analysis of the bacteria in stool samples from the UK cases showed that they belonged to a multidrug-resistant clade of Vibrio cholerae O1 previously linked to outbreaks of cholera in Kenya and Sub-Saharan Africa, as well as in Eastern and Middle Africa. Ethiopian V. Cholerae isolates sequenced in Germany and the UK had the same antimicrobial resistance profile as the bacteria samples obtained recently from UK residents. The similarities in these isolates, as well as among the Kenyan and sub-Saharan African strains in England, indicated that multidrug-resistant V. Cholerae O1 circulating in Africa were transmitted into Europe.
Though surveillance has improved, support for prevention and control of outbreaks is needed in low-income countries
Consumption of holy water has been previously identified as a risk factor for cholera in Ethiopia. Public authorities have taken preventive measures during religious holidays, and the Ethiopian National Guideline for Cholera Surveillance and Outbreak response has also addressed the associated risks. However, the spread of cases into Europe related to a cholera outbreak in Africa is unusual.
While genetic data have improved surveillance and identification of cases, prevention requires investment in water, sanitation and hygiene. According to Frank et al.: “Low-income countries will continue to need overseas development aid support to control outbreaks and epidemics using effective WASH, surveillance, communications, diagnostics and countermeasure programmatic delivery.”
(News-medical.net)
At least 7 journalists detained in Ethiopia on terror allegations
Ethiopian authorities should drop terrorism investigations into at least seven journalists from the privately owned Ethiopian Broadcasting Service (EBS) who were detained over what authorities said was a fabricated documentary, the Committee to Protect Journalists said Wednesday.
Police arrested the journalists over a March 23 episode of “Addis Meiraf,” which has since been taken down, in which Birtukan Temesgen said she was abducted and raped by men in military uniforms when she was a student in 2020.
Birtukan recanted her claims on state-owned Ethiopian Broadcasting Corporation on March 27 and EBS founder Amman Fissehazion apologized on March 28, saying the station discovered the allegations were fabricated after the program aired.
On April 1, the regulatory Ethiopian Media Authority said it had suspended “Addis Meiraf”pending “corrective actions.” Birtukan and the journalists were remanded for 14 days while police investigate.
“Arresting journalists on terrorism allegations is a disproportionate response to concerns over lapses in journalistic ethics, particularly as EBS has already faced regulatory sanction,” said CPJ Africa Program Coordinator Muthoki Mumo.
Police said the journalists sought to incite conflict, threaten the constitutional order, and overthrow the government in coordination with “extremist” groups in Amhara region, according to court documents, reviewed by CPJ.
Nebiyu Tiumelissan, Tariku Haile, Hilina Tarekegn, and Niter Dereje were arrested on March 26, when police raided EBS and forced it off air for several hours, while Girma Tefera, Henok Abate, and Habtamu Alemayehu, were arrested on March 27 and March 28.
Birtukan did not name her university but observers suggested it was Dambi Dollo University in western Oromia state, where ethnic Amhara students were abducted in 2019. The university said Birtukan was never their student.
In restive Oromia, rebels are fighting the government and other groups and civilians have been massacred. In Amhara region, the government is fighting Fano militias, who it says have also carried out attacks in Oromia.
The journalists’ lawyers argue editorial lapses should be addressed under Ethiopia’s media law, which stipulates administrative and civil remedies, and a proclamation against hate speech, not antiterrorism legislation.
CPJ’s emails requesting comment from Ethiopia’s federal ministry of justice were unanswered.
(CPJ)
