Ethiopia’s mining sector faces an “existential threat” unless companies immediately prioritize environmental protection and community safety, Mines Minister Habtamu Tegegn warned at a major workshop on gold extraction standards.

Speaking at an International Cyanide Management Code (ICMC) forum in the capital, the Minister described the country’s vast mineral wealth — particularly gold and silver — as a “strategic pillar” for economic growth and foreign exchange earnings. However, he cautioned that unchecked operations could trigger environmental disasters and social crises.

“The mining sector can only be sustainable when the environment and people’s safety are protected,” Habtamu stated. “Otherwise, mining will leave behind a dark history that threatens everything nearby.”

Ethiopia is aggressively scaling up gold production to boost exports and reduce import dependency, but the government is determined to avoid the pollution scandals that have plagued other nations. As the sector’s economic footprint expands, so does its responsibility, the Minister emphasized.

The workshop centered on the ICMC, a globally recognized protocol for safely managing cyanide — a highly toxic chemical used for over 130 years to extract gold from ore. While effective, cyanide poses severe risks to humans and aquatic life if mishandled.

Paul Bateman, Chairman and CEO of the International Cyanide Management Institute, joined the Minister in urging Ethiopian firms to adopt the code. He highlighted its flawless safety record: in 20 years, no fatalities from cyanide exposure have occurred at certified international operations.

A milestone was announced: MIDROC Gold Mine PLC has become Ethiopia’s first recipient of full ICMC certification, covering both mining and chemical transport operations. The Minister hailed it as an industry “benchmark,” urging others to follow suit.

ICMC-certified companies distinguish themselves through mandatory public disclosure. Unlike opaque operations, they publish detailed audit reports online for scrutiny by NGOs, communities, and regulators.

“Transparency is what sets us apart,” Bateman said. Over 1,200 audit reports are now publicly accessible, allowing stakeholders to independently verify compliance with rigorous safety standards.

Habtamu praised MIDROC’s leadership, noting that visible accountability builds trust and protects Ethiopia’s reputation as a responsible mining destination.

The Ethiopian Electric Utility (EEU) has reported a sharp 75% rise in regular operating expenses over the past six months, driven by intensified efforts to modernize aging infrastructure and meet surging national electricity demand.

In its half-year performance review, the state-owned utility attributed the cost increase primarily to investments in smart meters, digital power control systems, and extensive repairs to inefficient low-voltage lines. Additional spending went toward network equipment, including transformers essential for reliable power distribution.

Despite the expenditure jump, EEU achieved strong revenue growth, collecting 52.26 billion birr — 96% of its six-month target. Energy sales formed the largest share at 34.34 billion birr, hitting 98.4% of plan, supplemented by 16.6 billion birr from new customer connections and 1.2 billion birr from property sales and other sources.

EEU CEO Getu Geremew highlighted bill collection efficiency at 99.5%, crediting widespread smart meter deployment and digital payment systems for minimizing losses and improving revenue recovery.

“We’re pursuing an integrated energy supply model,” Getu said. Of new connections, 74.6% used the traditional on-grid national power network, while 24.4% relied on off-grid solar projects — a balanced approach to rapid electrification.

Ethiopia faces ambitious targets under the new Compact Program, aiming to electrify 300 million people across sub-Saharan Africa by 2030. With roughly 600 million people in the region still off-grid — half in underserved rural areas — the country has significant work ahead.

“Creating access isn’t just about laying wires; it requires strengthening the infrastructure behind it,” Getu noted. EEU exceeded its rural kebele connection goals, energizing 63 sites against a plan of 61, but millions of individual households remain to be connected.

External financing remains critical. World Bank and African Development Bank programs like ADELE and PRIME are channeling over $638 million into expansion projects, supporting both grid upgrades and off-grid solar rollout.

On the capital front, EEU utilized 20.8 billion birr — 90% of its 23 billion birr project budget. Funds primarily supported access expansion, line rehabilitation, and service quality improvements, addressing chronic issues like power theft and outages.

While progress is notable, the utility acknowledged it has reached only 71% of its full-year plan. “We will work hard to close the remaining 29% gap in the next six months,” Getu affirmed.

The International Federation of Freight Forwarders Associations (FIATA) has warned that the era of relying on a single dominant transport mode is over, arguing that the future of global trade will depend on fully integrated multimodal logistics systems. The message comes as Ethiopia seeks to reposition itself as a regional trade and logistics hub amid persistent global supply chain shocks.

In an interview with Capital, FIATA Director General Stéphane Graber said recent crises — from the COVID‑19 pandemic to the Suez Canal blockage and disruptions in the Red Sea — have exposed the vulnerability of supply chains built around narrow route and mode choices. For landlocked countries like Ethiopia, he noted, these shocks have underscored the cost of depending heavily on a single maritime corridor.

“The future of logistics depends on multimodality,” Stéphane said, stressing that seamless integration between sea, rail, road and air is now essential. “With the focus on environmental protection and the need to reduce carbon, modern systems must combine different modes of transport to ensure efficiency, reliability and optionality.”

Graber’s core argument is that “optionality” — having multiple viable routes and modes at hand — is the best defense against a world of overlapping disruptions. When a canal is closed, a sea lane is compromised, or political risk flares in one corridor, resilient systems can switch cargo to rail, road or air, or reroute via alternative ports and gateways.

For Ethiopia, which is working intensively to diversify port access and strengthen its logistics corridors, this perspective is timely. Ongoing investments in rail links to Djibouti, new dry ports, and enhanced air cargo capacity via Ethiopian Airlines align closely with FIATA’s emphasis on combining modes rather than privileging one over all others.

Stéphane cautioned that the shift to multimodality is not optional for countries hoping to compete in modern trade. It is driven both by risk management and by decarbonization pressures that favour rail and optimized routing over long, inefficient road hauls or poorly planned sea routes.

Beyond physical infrastructure, FIATA sees digitalization as the invisible backbone of multimodal logistics. But Stéphane warned that fragmented digital initiatives can become a new bottleneck if systems cannot “talk” to each other.

“One of the biggest barriers to efficient business is that digital systems are not interconnected,” he said. He urged adoption of UN/CEFACT data standards as a common language for trade and transport documentation, enabling freight forwarders, carriers, customs and banks to exchange data reliably across borders and platforms.

Legal frameworks are also evolving to support this shift. FIATA is actively promoting the UN Model Law on Electronic Transferable Records (MLETR), which gives electronic documents — such as e‑bills of lading — the same legal standing as paper. So far, only a limited number of countries have fully implemented MLETR, but momentum is building.

In parallel, a new UN convention on negotiable cargo documents, ratified at the end of 2025, is expected to transform trade finance by allowing goods transported by land and rail to be represented by secure digital documents that banks can accept as collateral. This could be particularly significant for African exporters, who often face high financing costs and documentation challenges.

Despite the surge of artificial intelligence and automation, FIATA’s chief is clear that logistics will remain a people‑centred business. Technology may accelerate processes and reduce routine errors, but it cannot replace the judgment, problem‑solving and coordination that freight forwarding requires.

“Cargo transfer work will still continue to be a people’s job,” Stéphane emphasized. The complexity of international regulations — from European security regimes such as ICS2 to emerging environmental and customs rules — demands better‑trained professionals, not fewer.

To this end, FIATA is working closely with the Ethiopian Freight Forwarders and Shipping Agents Association (EFFSAA) to expand high‑quality training. EFFSAA has rolled out FIATA diploma programmes, “train‑the‑trainer” schemes and targeted initiatives for women in logistics, with support from the Ministry of Transport. These programmes are designed to build a cadre of local professionals capable of navigating increasingly demanding global standards.

Ethiopia’s selection as host of the 64th FIATA World Congress in 2027 is being framed as both recognition and responsibility. Stéphane describes the event not as a one‑off showcase, but as the culmination of a “three‑year journey” of reform and capacity‑building in the region’s logistics sector.

“For FIATA, the 2027 congress is not an ordinary day to put on the calendar,” he said. “It’s an ongoing process, it’s a three‑year journey to get to Congress.” That journey involves coordinated work between FIATA, EFFSAA and Ethiopian authorities to modernize legal frameworks, promote digital standards, and strengthen multimodal infrastructure before delegates arrive.

EFFSAA President Dawit Woubishet noted that Ethiopia secured the congress after several unsuccessful attempts, finally winning against bids from the Czech Republic, Israel and Brazil with around 85 percent of the vote. Improved security, the transformation of Addis Ababa’s urban landscape, the presence of world‑class conference centres such as the AU headquarters, Adwa complex and UNECA, and the rapid expansion of quality hotels all contributed to the successful bid.

Roughly 2,000 logistics professionals are expected to attend the congress, which is projected to generate significant tourism and conference revenue for Ethiopia and support the broader development of its service sector. Importantly, organizers aim for 600–700 African participants, leveraging Ethiopian Airlines’ extensive network to deepen intra‑African trade ties in the era of the African Continental Free Trade Area (AfCFTA).

The National Bank of Ethiopia (NBE) has announced that foreign investors can now fully repatriate dividends and other payments, eliminating a significant barrier to Foreign Direct Investment (FDI) in the country.

Historically, the repatriation of profits and investment capital has presented considerable challenges for FDI in Ethiopia.

However, during a recent parliamentary session, NBE Governor Eyob Tekalegn confirmed that this issue has been effectively resolved, thanks to a series of economic reforms, particularly a comprehensive overhaul of the foreign exchange regime implemented in mid-2024.

“Foreign investors have often expressed concerns about Ethiopia’s foreign currency policy,” he noted. “Despite the country’s significant investment potential, the existing environment was not conducive to their needs.”

The Governor explained that investors previously faced difficulties in repatriating capital and earnings due to restrictive foreign exchange measures, which hindered further investment.

“The landscape has changed dramatically with the new reforms,” Eyob stated. “During a recent meeting with the American Chamber of Commerce in Ethiopia, I asked if any investor was currently facing repatriation issues—and none reported any challenges.”

He emphasized that both the NBE and commercial banks no longer view repatriation as a barrier, highlighting that “the new foreign exchange regime has strengthened confidence in the system.”

Analysts believe that if the Governor’s assessment is correct, easing foreign exchange repayment restrictions could lead to a significant increase in FDI.

The reforms introduced eighteen months ago are already credited with boosting the nation’s foreign currency revenue, particularly from exports.

The International Monetary Fund reports that the NBE has provided banks with guidance on settling dividends that accumulated prior to the foreign exchange reform, to be resolved over an 18-month period starting at the end of September 2024, with most issues already addressed.

Eyob indicated that the balance of payments has improved, shifting from a deficit of $1.3 billion two years ago to a current surplus of $2.8 billion.

In terms of international trade, while the deficit was $6.2 billion in the 2023/24 fiscal year, it has significantly narrowed to $189 million by the end of the first half of the 2025/26 fiscal year.

He noted substantial improvements in both commodity and service trade since the implementation of economic reforms.

New foreign investment registrations have reached $2.4 billion, reflecting a 26 percent year-on-year increase.

Two months ago, Eyob met with leading exporters’ associations to issue a final warning to those who have not repatriated foreign exchange earnings from commodity trade.

While presenting the NBE’s semi-annual performance to the Planning, Budget, and Finance Standing Committee of Parliament, he indicated that the central bank is employing a “carrot-and-stick” approach with exporters delaying the repatriation of foreign currency from exports.

“Some are complying; for others, we have provided an additional grace period. If they still fail to comply, we will implement strict measures,” he stated.

He acknowledged that there are challenges related to repatriation under the “cash against documents” export scheme, which the government is addressing through the Ministry of Foreign Affairs. However, he stressed that most of the unrepatriated foreign currency issues stem from internal problems within the exporting firms themselves.