The National Bank of Ethiopia (NBE) has introduced a sweeping new directive requiring all banks operating in the country to develop and implement robust recovery plans, marking a significant shift in Ethiopia’s approach to banking sector risk management and crisis preparedness.The directive, officially titled “Banking Recovery Plan Directive No. SBB/93/2025,” came into effect on May 13, 2025, and aims to ensure that banks are equipped to restore their financial health during periods of severe stress—without relying on special intervention from the central bank or government.
This move aligns Ethiopia with international best practices and recommendations from the Financial Stability Board, underscoring NBE’s commitment to enhancing the stability and resilience of the nation’s financial sector.Under the new rules, all banks must submit their initial recovery plans to the NBE within eight months of the directive’s effective date. These plans must outline in detail how each bank would regain financial viability during institution-specific or market-wide crises, including scenario analyses, stress tests, and clear strategies for maintaining critical operations.A cornerstone of the directive is the explicit requirement that recovery options “should not take into account extraordinary government policy intervention from a national bank or access to special financing from public funds.”
This provision is designed to foster a culture of self-sufficiency and resilience in the financial sector, ensuring that banks are accountable for their own stability and can address crises independently.The directive also mandates that banks establish sophisticated monitoring systems to detect early warning signs of financial deterioration. When a recovery indicator is breached, banks must notify the NBE within five working days, providing analysis and proposed corrective measures.The directive places significant responsibility on bank boards, requiring them to approve and regularly review recovery plans and to ensure clear lines of accountability for crisis decision-making.
For foreign bank branches, the rules mandate close coordination with parent institutions, while ensuring that local obligations are fully safeguarded.Non-interest banks are required to ensure their recovery plans comply with Sharia principles, and foreign bank branches must integrate their domestic activities into the broader recovery frameworks of their headquarters. Ongoing compliance will involve annual updates, with banks required to submit revised plans within three months of the end of each financial year.
The NBE has introduced strict penalties for non-compliance, including fines of ETB 100,000 for missing the initial submission deadline and ETB 50,000 for delayed annual updates. Persistent non-compliance could result in further administrative actions under the Banking Business Proclamation.Financial sector experts have welcomed the directive as a timely and necessary reform. Dr. Almaz Gebre, a prominent financial sector analyst, described it as “a timely and necessary step to strengthen the financial resilience of Ethiopian banks,” emphasizing that it will foster a culture of forward planning and reduce pressure on public funds during crises.Experts also highlight the directive’s impact on management practices, noting that requirements for robust governance structures, clear division of responsibilities, and integration with comprehensive risk management frameworks will significantly improve banks’ ability to manage and respond to stress. “It encourages accountability and ensures that recovery plans are not just concept-based documents, but strategies that can be implemented,” noted one sector specialist.
China has emerged as the most admired country in Ethiopia, surpassing even Ethiopia itself, according to the newly released 2025 Brand Africa 100 | Africa’s Best Brands report. The findings, announced at the historic Africa Hall in Addis Ababa, paint a complex picture of optimism, foreign influence, and the ongoing challenges facing African brands and institutions.
The Brand Africa survey, conducted across 31 countries and in eight languages, reveals that only 32% of Ethiopians believe Africa itself contributes to a better Africa. When asked which countries they most admire, Ethiopians ranked China first, followed by Ethiopia, Russia, the United States, and the United Arab Emirates. This ranking places China ahead of traditional Western powers and even Ethiopia’s own national identity, reflecting the deep and growing ties between China and Ethiopia.
Ethiopian officials have consistently praised China’s role in the country’s development, highlighting initiatives such as the Belt and Road Initiative (BRI) and the Forum on China-Africa Cooperation (FOCAC). China is Ethiopia’s largest trading partner and a major investor in infrastructure, manufacturing, and technology. Projects like the Ethiopia-Djibouti Railway and the China-Africa-UNIDO Center of Excellence have become symbols of this partnership, generating jobs and fostering skills development across the country.Despite a surge in optimism—68% of Ethiopians express hope for Africa’s future—local brands continue to struggle for recognition.
Only 6% of the Top 100 most admired brands in Ethiopia are Ethiopian, and just 13% of the most admired brands in the country overall are local. This mirrors a broader continental trend: only 11% of Africa’s most admired brands are African, a historic low that underscores the dominance of foreign brands and the urgent need for homegrown companies to convert optimism into loyalty.Nike, Adidas, Samsung, Coca-Cola, and Apple remain the top five most admired brands in Africa for the fifth consecutive year, while Coca-Cola is also recognized as the most admired non-African organization. In Ethiopia, Mekedonia (a non-profit), Ethio Telecom (Ethiopian), and Coca-Cola (non-African) are the top three brands most admired for “Doing Good For Society,” highlighting the continued influence of global companies even in the realm of social responsibility.
The National Bank of Ethiopia (NBE) has taken decisive action to protect the nation’s dwindling foreign exchange reserves by banning the use of Cash Against Documents (CAD) as a payment method for exports to Egypt. The directive, issued on May 8, 2025, comes amid mounting concerns over exporters’ repeated failures to repatriate foreign currency earnings, a critical issue for Ethiopia’s import-dependent economy.Under the new directive, all Ethiopian exporters shipping coffee and other products to Egypt must now use advance payment or Letters of Credit (LC) instead of CAD.
These alternative payment methods are considered more reliable in ensuring that foreign currency enters Ethiopia’s financial system promptly.CAD, a common international trade payment system, allows importers to pay only after receiving shipping documents, providing flexibility for buyers but sometimes delaying or jeopardizing the inflow of foreign currency for the exporting country. According to the NBE, Ethiopian exporters using CAD for shipments to Egypt have consistently failed to deposit their foreign currency earnings in domestic banks within the required timeframe, depriving the country of much-needed reserves.
The central bank’s move comes as Ethiopia faces persistent foreign currency shortages and ongoing market volatility. Recent reforms aimed at liberalizing the foreign exchange market and boosting reserves have been partially reversed in response to the crisis. The NBE has instructed all customs offices to strictly enforce the ban, while the Ethiopian Customs Commission will monitor compliance and report violations directly to the central bank. Exporters who fail to comply risk shipment delays or even confiscation of goods.Ethiopia is a major exporter of agricultural products to Egypt, with coffee, oilseeds, and pulses among the top commodities.
Many traders had preferred CAD for its convenience, but the NBE argues that the system has failed to deliver timely and reliable foreign currency inflows. “This decision is necessary to protect Ethiopia’s economic interests,” said Tsegaye Ayalew, a financial sector expert with over 15 years of experience. He explained that delays in CAD transactions have not only hurt government revenues but also caused significant losses for exporters.While the move is expected to strengthen Ethiopia’s foreign exchange position, it could complicate trade relations with Egyptian importers, who may be reluctant to shift to advance payment or LC, as these require funds to be deposited before goods are received. However, experts believe the directive aligns with broader efforts to stabilize the economy and could help boost reserves if implemented effectively.
The NBE’s clampdown on CAD is not unprecedented. Similar restrictions have previously been imposed on exports to Sudan and Somalia after authorities identified discrepancies between the value of exported goods and the foreign currency repatriated. The central bank has also tightened controls on foreign currency retention and utilization for exporters in recent years, further underscoring the urgency of safeguarding reserves
In the heart of Anji, where the bamboo sea sways in the wind, lies Yucun Village—a serene blend of earth, sky, and centuries-old traditions.The story begins 20 years ago when Xi Jinping, then the secretary of the CPC Zhejiang provincial committee, expressed his vision for the future prosperity of the severely degraded Anji County in southeastern China. Jinping was seated in a small hall in Yucun Village, part of Tianhuangping Town.During his August 2005 visit to Anji, Xi Jinping introduced a new developmental model aimed at benefiting the local population.
He emphasized that the community would thrive through harmony with ecological civilization.With his concept that “Lucid waters and lush mountains are invaluable assets,” the CPC leadership in the area achieved remarkable success through this philosophy. The village committee and party branch embraced their leaders’ vision and worked diligently to create a more harmonious, green, and vibrant community.
The 280-household settlement spans 348 hectares of bamboo forest and 39 hectares of rice fields, now reaping profits from environmentally sustainable business ventures.In 2024, the region generated 22 million RMB and recorded a per capita income of 74,000 RMB for villagers.Yucun Village has also attracted 1.2 million tourists eager to witness Anji’s unique growth story, earning recognition from the United Nations Tourism Organization as the Best Tourism Village.As they embark on a new journey, the people of Yucun remain committed to upholding Xi Jinping’s important instructions and aspirations. They are dedicated to the belief that “lucid waters and lush mountains are invaluable assets,” focusing on building a modern, high-standard, internationally recognized Yucun.With unwavering dedication to high-quality and sustainable development, they continually strive to transform ecological benefits into economic and social gains, pursuing comprehensive progress in the rural economy, eco-environment, governance, culture, rule of law, and Party building—thus following a distinctly Chinese path to rural modernization.
Bamboo Innovation – Anji’s Green RevolutionIn the heart of China’s bamboo kingdom, Anji County, a quiet revolution is taking root. Here, amidst towering groves of bamboo, innovation meets sustainability at the Anji Exhibition Center for Bamboo as a Substitute for Plastic—a pioneering hub where nature’s oldest resource becomes the future’s most promising solution.Located in Dazhu Garden Village of Lingfeng Subdistrict and operated by Anji Agricultural Investment Hi-tech Group Co., Ltd., the Anji Exhibition Center serves as the core platform for the regional public brand “Anji Premium Products.” The center provides an integrated venue that combines displays of bamboo-based alternatives to plastics, showcases of local agricultural specialties, a digital agriculture management platform, and e-commerce operations.
Bamboo is more than just a plant; it’s a versatile alternative to plastic. At this groundbreaking center, bamboo is transformed into everyday essentials—cutlery, packaging, fabrics, and more—each item a testament to sustainability.But this center is more than a showcase—it’s an educational beacon. Bamboo’s environmental benefits are undeniable: it grows rapidly, absorbs carbon, and returns harmlessly to the earth. Here, visitors learn how choosing bamboo over plastic can reduce waste, combat pollution, and protect ecosystems for generations to come.
From forest to factory and from local tradition to global innovation—Anji’s bamboo story is one of hope, demonstrating that sustainability and progress can grow side by side.White Tea Cultural and Creative ComplexNestled in the lush, tea-covered hills of Anji County, the Anji White Tea Cultural and Creative Complex is transforming the region into a global hub for tea culture, creative design, and sustainable tourism. With a staggering investment of 6 billion RMB and spanning 533 hectares, this ambitious decade-long project (2020–2030) is redefining the future of China’s renowned white tea industry.Located in Xilong Township, the heart of Anji white tea production, the complex is more than just an industrial park; it’s a living ecosystem where agriculture, design, and digital innovation converge.
The project is organized into five key zones:Charming Tea Town – A picturesque district blending traditional tea culture with modern commerce.Creative Tea Valley – A hotspot for designers and artists crafting tea-inspired products.Vibrant Tea Village – A dynamic space celebrating rural revitalization and community life.The remaining two zones, Romantic Water Town and China Anji White Tea City (Phase II), feature an expanded marketplace for tea trade and innovation.Since its launch in 2020, the complex has already made significant strides. Digital Nomad Anji (DNA), China’s first comprehensive park for remote workers, has attracted freelancers, startups, and tech professionals who seek to blend work with the tranquility of tea country.Another achievement is the White Tea Living Room & Anji Creative Design Center (ACDC), which now hosts over 20 companies specializing in tea packaging, branding, and product development.The Eco-Tea Garden Viewing Platform & “Cottage Beneath the Trees” has also been successfully established.Beyond commerce, the complex serves as a blueprint for sustainable rural development.
By merging agriculture with creative industries and digital nomadism, it offers a new economic model for China’s countryside.”We’re not just building a tea park—we’re creating a lifestyle where tradition and modernity coexist,” says a project spokesperson. “From farmers to designers to remote workers, this is a place where everyone can thrive.”As the Anji White Tea Cultural and Creative Complex continues to grow, it’s clear: the future of tea lies not only in the leaves but also in the culture, creativity, and community it inspires.From Mines to Dreams: The Deep Blue X TransformationAnji—a name once synonymous with mining, its landscape scarred by decades of industrial activity. Today, however, the story is different.What was once an abandoned mine has been reborn as a breathtaking destination, transformed in just 18 days.
The Deep Blue X project is a vision brought to life by a team of ambitious university students, aiming to turn ecological scars into something extraordinary.At the site, the leadership of Deep Blue X reported to Capital that the company continues to achieve new successes and develop dynamic tourist attractions.A staggering 8,800 cups of coffee sold in a single day serves as proof that innovation and determination can rewrite history.As the current president noted, the area has attracted a significant number of tourists, including many Chinese nationals. President Xi Jinping remarked 20 years ago that the ecological potential of Anji would be a major source of revenue. Since becoming president of the rapidly developing nation in 2013, he has played a key role in the promising green revolution that has seen China make substantial progress over the past decade.His vision began to take shape even before he assumed the presidency, with Anji’s progress serving as a prime example.”Transforming scars into paradise requires visionary leadership, unwavering effort from local authorities, and the courage of a community willing to embrace change,” remarked visitors to the eastern Chinese county of Anji in Zhejiang province. Anji’s narrative has shifted from what was extracted from the earth to what has been restored.
