The National Bank of Ethiopia (NBE) has kept its benchmark policy rate unchanged at 16 percent, maintaining a tight monetary policy stance as inflation remains in double digits.

The decision followed the eighth regular meeting of the central bank’s Monetary Policy Committee (MPC), held on November 3, 2026. The committee reviewed recent economic developments, inflation trends, external-sector performance, and conditions in the monetary, financial and fiscal sectors.

The NBE also retained its interest rate corridor at plus or minus 300 basis points around the policy rate. The central bank said maintaining tight monetary conditions remains essential to achieving its medium-term goal of reducing inflation to single digits.

According to the MPC, recent monetary and financial conditions point to moderate looseness, while short-term inflation forecasts remain in double digits. It said this justified keeping the current policy direction unchanged.

The committee also signalled closer monitoring of commercial banks’ loan-to-deposit ratios. It warned that additional targeted reserve requirements could be introduced if rapid credit expansion threatens the inflation outlook.

The NBE said it would continue to rely on indirect monetary policy tools, particularly open market operations, to absorb excess liquidity from the financial system. The measures are intended to restrain excessive money supply and credit growth, which can add to inflationary pressure, while supporting broader macroeconomic stability.

The MPC is scheduled to meet again at the end of January 2027, though it may convene earlier if economic conditions require further policy action. The 16 percent policy rate was set in July 2026, when the NBE raised it by one percentage point while removing its annual bank credit-growth cap.

Zhejiang’s Jinhua steps up efforts to become a leading hub for cooperation with Africa

Growing trade, sustained educational partnerships and closer cultural ties are strengthening cooperation between Africa and Jinhua, a city in China’s Zhejiang Province.

Jinhua’s trade and economic ties with Africa continue to expand, reflecting the mutual benefits that have long underpinned China-Africa cooperation. From January through September, the city’s trade with Africa totaled 161.41 billion yuan, up 35.3% from a year earlier. Exports rose 29.6% to 144.51 billion yuan, the highest value of any Chinese city and 10.3% of China’s total exports to Africa.

Jinhua is capitalizing on the global transition to green energy, with a growing competitive edge in lithium batteries, photovoltaic products and electric passenger vehicles, China’s “new trio” export categories. These products continue to sell well in African markets. Zhejiang Jujiang New Energy Technology Co., Ltd. specializes in developing and manufacturing battery packs for home energy storage and batteries for specialized power applications. “Africa is one of the world’s fastest-growing green energy markets. Our energy storage products, designed to address limited grid coverage, frequent outages and the high cost of diesel power generation, have been well received,” said Lin Wancheng, director of the company’s international sales and marketing center.

As goods made in Jinhua gain popularity in Africa, African products are also flowing into the city. Trade between Jinhua and Africa is thriving, supported by the city’s pilot free trade zone, comprehensive bonded zone, specialized markets and logistics hubs. These strengths are helping Jinhua become a distribution center for African goods in China. The import cost of copper and other raw metals has fallen significantly since May 1, 2026, when China extended zero-tariff treatment to all 53 African countries with which it has diplomatic relations. From January through September, the Jinyi Comprehensive Bonded Zone imported 2.81 billion yuan worth of goods from Africa, up 253.4% year over year.

Industrial cooperation between China and Africa is evolving. Jinhua companies are moving beyond conventional trade in goods to take a more active role in Africa’s industrialization. “Economic and trade cooperation between Jinhua and Africa continues to deepen, expanding from an initial focus on trade in goods into green industries, digital economy, agricultural technology and industrial park development,” said Jiang Zhenlei, president of the China Council for the Promotion of International Trade Jinhua Sub-Council.

Agricultural technology from Jinhua is opening up new possibilities for farming in Africa. “Africa has vast stretches of land and enormous demand for agricultural machinery,” said Mao Keqiang, president of the Machinery and Equipment Chamber of Commerce at China Commodity City. Jinhua is also expanding international cooperation through the China-Africa (Jinhua) Agricultural Science and Technology Innovation Park and the China-Mozambique “Belt and Road” Joint Laboratory on Smart Agriculture. These efforts include supplying machinery suited to local conditions, sharing standardized crop-growing techniques and offering regular agricultural training to develop a cohort of 100 African agricultural specialists.

According to available figures, about 30,000 businesspeople from Jinhua are engaged in long-term trade and business operations in Africa. Jinhua is also home to 2,675 African-invested enterprises, the most of any city in Zhejiang. On Shangcheng Avenue in Yiwu, the China-Africa Building houses 120 companies, including 90 African businesses.

Alongside their growing trade ties, Jinhua and Africa are strengthening cooperation in education and culture. Local institutions, including Zhejiang Normal University, Jinhua University of Vocational Technology and Yiwu Industrial & Commercial College, have provided opportunities to more than 15,000 students from over 50 African countries and regions, creating a cross-continental pathway for education and skills development.

Yiwu Industrial & Commercial College, for example, has enrolled 1,190 international students from 38 African countries since 2007. Its African graduates combine Chinese-language skills and cross-cultural understanding with practical skills and entrepreneurial abilities, helping connect China and Africa through trade and cultural exchanges.

At the recently concluded 2026 World Vocational College Skills Competition, all 10 teams jointly fielded by Jinhua University of Vocational Technology and Rwanda Polytechnic’s Musanze College won awards. Their success highlights the results of joint training under the “Future of Africa” China-Africa Vocational Education Cooperation Plan.

As these graduates move between the two regions and establish themselves professionally, they are strengthening not only trade ties but also cultural connections. The year 2026 marks the 70th anniversary of the establishment of diplomatic relations between China and African countries and has been designated the China-Africa Year of People-to-People Exchanges. Jinhua is exploring new approaches to such exchanges with Africa through signature events, international communications and cooperation in culture and tourism.

From October 7 to 15, performers from Zhejiang Wuju Opera Art Research Institute and its Wuyi branch, the Wuyi County Wuju Opera Art Heritage Center, toured Lesotho and Zimbabwe. Their four performances in the two countries drew repeated applause. To date, the Zhejiang Wuju Opera Art Research Institute has toured 17 African countries, giving 52 performances to a combined audience of more than 2 million.

Film and television cooperation is becoming another important part of Jinhua’s cultural exchanges with Africa. The 2026 China-Africa Film and Television Cooperation Event opened in Hengdian on October 23, with a theme of “Mutual learning between cultures, closer ties in film and television, and cooperation for shared benefits”. Drawing on Jinhua’s well-established film and television industry and Zhejiang Normal University’s expertise in African studies, the event provided a forum for in-depth dialogue, promoting cultural learning, the exchange of complementary technologies, joint industry development for shared benefit and stronger ties between people. Since 2018, Jinhua has organized more than 60 China-Africa cultural exchange and cooperation events, reaching over 40 African countries and more than 100 million people across the continent.

From facilitating trade and supporting industrial development to training skilled workers and fostering cultural understanding, Jinhua is taking practical steps to broaden and deepen its cooperation with Africa. The commitment on both sides is creating tangible opportunities for development while contributing to an all-weather China-Africa community with a shared future for the new era.

​The Food and Agriculture Organization of the United Nations (FAO) has called on Ethiopia to fundamentally transform its management of recurring climate disasters, urging the government and development partners to invest heavily in early warning systems, scientific forecasting, and anticipatory action rather than relying primarily on emergency assistance after communities suffer losses.

​Abebe Haile-Gabriel, Assistant Director-General and Regional Representative for Africa (RAF) at the FAO, told Capital that Ethiopia’s repeated exposure to climate shocks necessitates shifting from reactive humanitarian interventions to preventive measures that protect livelihoods before crises escalate into full-scale emergencies.

​While emergency assistance remains essential for communities already affected by drought, the representative argued that repeatedly responding after livestock perish, crops fail, and households lose their livelihoods offers no sustainable solution to the country’s long-standing climate vulnerability.

​”Ethiopia has become accustomed to recurring drought risks. Drought comes, people suffer, livestock are lost, and then assistance is provided. But this is not the solution we advocate for,” Abebe said.

​Instead, the FAO promotes an approach enabling authorities to anticipate climate threats and implement protective interventions based on scientific forecasts. Under this model, early warning data identifies high-risk communities and evaluates shock severity to deploy targeted support before households lose productive assets.

​Such proactive interventions include pre-positioning livestock feed, strengthening veterinary services, enhancing water access, distributing drought-resistant seeds, and providing timely aid to vulnerable farming and pastoralist households.

​”The long-term solution is to become anticipatory. These events recur; they are not isolated. We need early warning systems and scientific solutions that allow us to prepare in advance,” he added.

​The call comes as Ethiopia faces climate concerns linked to the strengthening El Niño phenomenon and the positive phase of the Indian Ocean Dipole (IOD), which heavily influence rainfall patterns across the Greater Horn of Africa.

​While drought remains a central priority, the immediate outlook for the October–December rainy season raises significant concerns over excessive rainfall, flash floods, and riverine flooding across several regions.

​According to the October El Niño Preparedness and Response Situation Update issued by the IMPAACT programme, Ethiopia has activated anticipatory action in four districts across the Somali and Oromia regions due to high probabilities of above-normal rainfall.

​The Ethiopian Disaster Risk Management Commission (EDRMC) estimates that approximately 9.3 million people reside in districts identified for early intervention. Over 163 districts are classified as vulnerable to climate hazards, with 114 triggered for anticipatory action. Among these, 84 woredas across Afar, Amhara, northern Somali, and Tigray fall under Priority Levels 1 and 2.

​Regional projections indicate a particularly high probability of enhanced rainfall across southern and southeastern Ethiopia. The IGAD Climate Prediction and Applications Centre (ICPAC) forecasts a 90 percent probability of above-normal rainfall in southern Ethiopia and central-southern Somalia. The combined influence of El Niño and a positive IOD increases the risk of heavy rainfall, potential flooding, displacement, and severe agricultural damage.

​Current preparedness measures build on initiatives started in September, focusing on early warning dissemination, community preparedness messaging, and the pre-positioning of essential supplies. Gode and Adadle districts in the Shebelle Zone of the Somali Region have received focused attention due to high flood exposure.