The International Monetary Fund (IMF) has urged the National Bank of Ethiopia (NBE) to remain prepared to tighten monetary policy further if a second round of inflationary pressures emerges, emphasizing the need to preserve the macroeconomic gains achieved under Ethiopia’s economic reform program.

The IMF’s warning comes as inflation, which briefly fell to single digits in February, has accelerated again since April. The Ethiopian government has attributed the renewed price pressures largely to external shocks, particularly the conflict in the Middle East and concerns over disruptions to shipping through the Strait of Hormuz, which have driven up imported fuel costs.

The recommendation followed the IMF Executive Board’s completion of the fifth review of Ethiopia’s 48-month Extended Credit Facility (ECF), unlocking an immediate disbursement of about US$464 million to support the country’s balance of payments and fiscal financing needs.

According to the IMF, maintaining a tight monetary stance remains appropriate to anchor inflation expectations. However, the Fund stressed that the NBE should stand ready to tighten policy further if higher fuel prices and other external shocks trigger broader, second-round inflationary effects.

The IMF also encouraged the central bank to continue modernizing its monetary policy framework and deepen reforms in the foreign exchange market, including expanding the interbank FX market, easing selected exchange restrictions, enforcing net open FX position limits, and strengthening competition among banks.

Since August 2023, the NBE has maintained a credit growth cap on banks, which currently stands at 24 percent. The central bank had previously indicated it would begin lifting the cap by September 2025, while it was not happened. Although officials had signaled further adjustments by the end of last month, no changes have yet been announced.

Awash Bank, a renowned institution in Ethiopia, has officially announced its intention to expand beyond national borders into other regional markets. The bank has confirmed that it has submitted a formal request to the National Bank of Ethiopia (NBE) to realize this goal.

Tsehay Shiferaw, CEO of Awash Bank, explained that the request is currently in process, and a response is expected within the coming days. This effort toward regional expansion comes at a critical time for Ethiopia’s financial sector. Following a policy shift by the federal government allowing foreign banks to operate domestically, Awash Bank is moving to expand into neighboring countries that have strong trade ties with Ethiopia.

Although the bank did not specify by name which neighboring countries it plans to expand into, the CEO explained that its focus is on countries in the region with strong commercial relationships with Ethiopia.

While awaiting a response from the National Bank, the bank is focusing on its ongoing domestic transformation projects. Tsehay noted that the bank is working on digital integration and branch expansion—including the opening of 25 new branches recently—which will enable it to remain competitive and profitable in the changing economic landscape.

These details were disclosed during a statement regarding the bank’s performance for the 2025/26 fiscal year. As reported, the bank’s total deposits reached 467.8 billion Birr as of June 30, 2026.

Tsehay stated that the bank’s total assets reached 622 billion Birr, and the paid-up capital grew by 38 percent from 27.9 billion Birr last year, reaching 38.5 billion Birr as of June 30—an increase of 10.6 billion Birr.

The bank also indicated that its total revenue for the 2018 fiscal year exceeded 85.37 billion Birr, while its total expenditure reached 44.62 billion Birr.

The Libyan OLA Energy Group has signed a full acquisition agreement for the Ethiopian assets of the French-owned TotalEnergies. This agreement, finalized in Paris, transfers ownership of nearly 120 fuel stations and a critical 13,000-cubic-meter fuel storage terminal. This move has enabled the Libyan government-backed company to become the largest foreign operator in Ethiopia’s retail fuel market.

This transaction has been described as a major milestone for OLA Energy, a branch of the Libya Africa Investment Portfolio (LAIP), as it continues to expand its influence across the continent.
Similarly, this agreement, concluded on Tuesday, June 30, 2026, marks the end of a 76-year presence for the French energy giant, TotalEnergies, in one of Africa’s most populous and fastest-growing economies.

The signing ceremony was attended by high-ranking government officials, including Libya’s Minister of Oil and Gas, Khalifa Abdulsadiq, and TotalEnergies CEO Patrick Pouyanné, though it was noted at the time that this did not necessarily reflect the full strategic significance of the agreement.

Formerly known as Oil Libya Holdings and rebranded in 2018, OLA Energy is fully owned by the Libya Africa Investment Portfolio (LAIP), a sovereign wealth fund established to manage Libya’s domestic and international investments. The company is building a massive energy network across Africa, operating over 1,300 fuel stations in 17 countries, 60 fuel terminals, and aviation refueling services at 55 airports.

This expansion in Ethiopia is part of a series of strategic acquisitions. Over the past two decades, OLA Energy has grown by acquiring retail networks in various African markets that were previously managed by global companies such as Shell and ExxonMobil. Despite various challenges, the company remains on a consistent growth trajectory, including a reported net profit of 34.5 million euros for 2024.

TotalEnergies’ decision to sell its Ethiopian assets comes after nearly eight decades of operations in the country.

TotalEnergies began operations in Ethiopia in 1950 and has remained one of the country’s most recognized fuel brands, operating over 160 stations nationwide. The company operated a major fuel and LPG storage depot in Dukem, which was critical for industrial supply. Additionally, it was actively involved in social initiatives, including road safety campaigns and entrepreneurial programs such as the “Total Startupper of the Year.”

Capital made repeated attempts to obtain a response from TotalEnergies regarding its exit from the market but was unsuccessful.

This agreement comes at a time when Ethiopia is implementing broad reforms to improve its fuel distribution sector. The Ethiopian Petroleum and Energy Authority recently introduced a new market share formula aimed at ensuring fair allocation and increasing efficiency.

Industry experts have suggested that these reforms are likely aimed at addressing supply chain disruptions—exacerbated by regional geopolitical tensions—and curbing illegal cross-border fuel smuggling.