A major new partnership between international water and sanitation organization Aqua for All and Bunna Bank aims to transform access to clean water and sanitation services by addressing Ethiopia’s significant financing gap in the WASH sector. The joint initiative introduces a consolidated lending facility designed to accelerate progress toward Sustainable Development Goal 6 by mobilizing more than 330 million birr in blended finance.
This strategic move signifies a shift from prior programs focused mainly on micro and small financial institutions to engaging commercial banks, enabling the attraction of large-scale private capital. Aqua for All’s capital, combined with 75% of Bunna Bank’s resources, underpins this innovative financing model that reduces investment risks and empowers local micro, small, and medium enterprises (MSMEs) to expand and attract further investment.
Scheduled to run until 2029, the partnership seeks to transition WASH service provision from being solely a government or charity responsibility into a sustainable business opportunity. Empowerment of women and girls forms a core focus area, integrating gender equality with climate change mitigation and adaptation efforts to maximize impact.
Since 2019, Aqua for All has successfully expanded improved water and sanitation access across Africa and Asia, with Ethiopia as a critical focus. The new blended finance program builds on this experience, strengthening the capacity of financial institutions to develop specialized lending products that cater to the unique challenges of the WASH sector.
Access to agricultural advisory services plunged after the phase-out of the Major Agricultural Growth Programme (AGP), posing a significant threat to Ethiopia’s agricultural transformation and climate resilience efforts, according to a recent four-year study.
The research, conducted among 1,964 rural households and presented at a workshop organized by the Policy Studies Institute (PSI), highlighted a drop in farm counseling access from 1,186 to 926 households following AGP’s conclusion in 2022. This decline has impeded the adoption of modern agricultural technologies such as improved seeds, fertilizers, and agrochemicals, with projections indicating 30% of households will not use any key technology by 2025—up from 22% in 2021.
Senior PSI researchers attribute the setback to insufficient follow-up programs after AGP ended, leaving longstanding challenges unresolved. Reliance on local seed varieties persists, and without adequate advisory services for sharing modern inputs, crop yields remain modest.
The study also exposed critical intra-household gender disparities. Despite more families obtaining land certificates, men’s control over land increased significantly, and women, despite working longer hours, continue to have limited involvement in agricultural decisions and access to advisory services. Social norms particularly restrict women’s participation, especially in areas covered by the Product Safety Net Program (PSNP).
Alarmingly, women’s roles in land management and production control have sharply declined since 2021, coinciding with high levels of female illiteracy among rural female heads of households. Climate change vulnerability is rising, with drought-affected households increasing from 24% in 2021 to 28% in 2023, and nearly all households in the most vulnerable Somali region experiencing hardship.
While government programs such as AGP and PSNP have delivered benefits, the study underscores their failure to address deep-rooted gender inequalities that undermine agricultural resilience to climate shocks.
Researchers recommend that future policies explicitly confront social norms limiting women’s engagement and ensure agricultural advisory services are accessible to female farmers, vital steps towards sustainable transformation amidst escalating climate challenges.
Wegagen Capital Investment Bank (WCIB), Ethiopia’s first licensed private investment bank, announced plans to expand its services into wealth and portfolio management, alongside launching environmental, social, and governance (ESG)-aligned and Shariah-compliant financial products. This strategic move marks a new phase in WCIB’s commitment to fostering a diverse, modern, and inclusive capital market in Ethiopia.
In its first public performance report for the financial year ending June 30, 2025, WCIB highlighted its rapid development since launching operations in March 2025 with a paid-up capital of 385 million birr. The bank has already established itself as a key player in Ethiopia’s financial transformation, notably playing an instrumental role as the inaugural trading member of the Ethiopian Securities Exchange (ESX) during its live trading launch.
Aklilu Wubet, Chairperson of WCIB’s Board, described the initial period as a testament to the bank’s institutional strength and its foundational role in Ethiopia’s emerging capital market. The bank’s opening services include facilitating private placements for growth-oriented companies, offering advisory services for public share sales, and corporate advisory on share registration and restructuring.
To date, WCIB has opened 37 investment accounts serving clients across banking, real estate, and insurance sectors, signaling strong market acceptance. CEO Brutawit Dawit noted the bank’s focus on building sustainable, long-term growth foundations, reflected in a revenue of 7.9 million birr against operational costs of 22.4 million birr during this early phase.
Strategic investments include fixed assets, comprehensive staff training, and the recruitment of experienced foreign professionals to address Ethiopia’s limited domestic expertise. Robust internal compliance and risk management frameworks have been established, aligned with national regulations.
Looking ahead, WCIB’s management expressed confidence in achieving profitability next financial year, buoyed by strong initial performance and an expanding client base. The bank’s strategic priorities are well positioned to leverage Ethiopia’s promising economic growth, projected at 6.6% for 2024/25 and 8.4% for 2025/26, which drives demand for innovative financing solutions.
Aligned with market forecasts indicating capital market growth from 537 billion birr to over 959 billion birr by 2028—and over 500 million birr mobilized for climate investment in 2024 alone—WCIB plans to capitalize on domestic and diaspora savings. This includes developing institutional investment products, bringing international expertise to local markets, and forging strategic partnerships regionally and internationally.
Brutawit emphasized, “WCIB is more than a financial institution; it is committed to unlocking opportunities, shaping a vibrant capital market, and laying the foundation for inclusive and sustainable economic growth.” Despite challenges inherent to an emerging sector, the bank’s trajectory is vital to Ethiopia’s broader economic transformation.
WCIB’s paid-up capital stood at 385 million birr at licensing in March 2025, with current assets reported at approximately 387.8 million birr and liabilities of 374.8 million birr, underscoring a solid financial base for future expansion.
The Ministry of Finance (MoF) has suspended a tax authority decision that would have required fruit drink manufacturers to settle years of unpaid excise tax, stemming from a regulation enacted six years ago.
This issue emerged two years ago when the Ethiopian Food and Drug Authority clarified to the Ministry of Revenue (MoR) that a packaged beverage must contain at least 30 percent fruit concentrate or pulp to qualify as fruit juice. As a result, the MoR mandated that manufacturers register for excise tax and pay the amounts that had not been collected from consumers over the previous four years, dating back to the 1186/2020 excise proclamation. The directive also required manufacturers to pay penalties and interest on these outstanding tax amounts.
In a letter issued last week, the MoF expressed concern that the MoR’s decision had severely impacted manufacturers, creating significant financial strain. The letter stated, “It forced several producers to close their businesses, while similar imported products are not subject to the same tax, harming the competitiveness of local manufacturers.” This action followed a formal complaint from the Ministry of Industry (MoI) received by the MoF in April.
Dated September 22 and signed by former State Minister Eyob Tekalign (now Governor of the National Bank of Ethiopia), the MoF letter emphasized that it was unfair to burden manufacturers with accrued taxes that had not been collected from consumers due to ambiguous legal language. The letter indicated, “Pending a permanent solution by the relevant authorized body, the enforcement of this decision has been temporarily halted.”
This new decision follows a year of negotiations. Initially, the MoF insisted that manufacturers settle the tax, albeit without penalties or interest, but manufacturers cited their inability to pay. The government also provided an option for installment payments.
With support from the MoI, the regulatory body’s latest decision has pleased manufacturers. The MoF clarified that manufacturers are now only required to pay excise tax on products sold after the MoR’s implementation letter was released in November 2023.
Ashenafi Merid, General Manager of the Ethiopian Beverages Manufacturing Industries Association, expressed gratitude for the understanding and support from the Industry and Finance ministers in making this significant decision. He reflected on the nearly two-year struggle, stating, “It is a big relief for the sector.”
Ashenafi noted that the demand for payment of the accrued tax had severely impacted domestic juice producers, forcing nearly all to halt production. He pointed out that only a few foreign-based investors managed to continue operations.
Reports indicated that manufacturers were, on average, being asked to pay approximately 70 million birr in back taxes.
“We hope that the manufacturers will rehire their employees and resume operations soon,” the association head added with optimism.
