EIB Global, the financial arm of the European Investment Bank, has signed a €20 million financing facility with Dashen Bank to expand long-term credit access for Ethiopian small and medium-sized enterprises (SMEs).

The agreement prioritizes high-impact sectors, allocating at least 70% of the funds to agricultural value chains, including coffee, grains, fruits, and vegetables. Additionally, the portfolio mandates minimum 30% targets for climate action projects and 30% for women-owned or women-led businesses.

Dashen Bank CEO Asfaw Alemu emphasized that the facility aligns with the institution’s strategy to diversify funding channels for high-growth sectors. “This partnership with EIB Global allows us to provide patient, long-term capital to agricultural and export-oriented enterprises that serve as the backbone of our economy,” Alemu said.

EIB Global Director General Andrew McDowell noted that the facility aims to convert development finance into sustainable local enterprise growth. “By linking target funding to agriculture, climate resilience, and gender equity, this initiative will help Ethiopian businesses expand operations and access international markets,” McDowell stated.

The credit facility arrives at a crucial juncture for Ethiopia’s economy. Agriculture contributes over one-third of the nation’s gross domestic product and generates the bulk of its export earnings. However, agricultural SMEs frequently struggle to secure affordable, long-term financing due to strict collateral requirements, perceived seasonal risks, and broader structural liquidity constraints within the domestic banking sector.

While recent financial sector reforms—including the transition to a market-based exchange rate in July 2024—have helped ease foreign exchange bottlenecks and bolster export competitiveness, commercial banks continue to navigate tight liquidity conditions. Long-term international credit lines provide a critical buffer to sustain private sector investment.

This agreement marks another step in Dashen Bank’s expanded international partner strategy. In February 2026, the bank secured a $10 million risk-sharing agreement with the International Finance Corporation (IFC) to support a $20 million SME portfolio focused on agricultural and female-led enterprises.

For EIB Global, the transaction falls under its broader “Green African Agricultural Value Chains” framework. It follows a similar €20 million credit line extended to Zemen Bank in April 2026, which was matched locally to unlock €40 million in targeted agricultural and climate financing.

Specific interest rates, loan tenors, and application procedures for Ethiopian businesses will be released by Dashen Bank as the facility moves to the disbursement phase.

An estimated 50,000 people have fled renewed intercommunal violence in southern Ethiopia and crossed into northern Kenya, triggering an escalating humanitarian crisis in Moyale, where displaced families urgently need food, clean water, shelter and medical assistance.

According the United Nations Office for the Coordination of Humanitarian Affairs (OCHA), the arrivals have placed mounting pressure on host communities and essential services in Moyale, located in Kenya’s Marsabit County.

The latest displacement followed clashes that erupted on October 18 in Moyale, Ethiopia. Humanitarian partners and Kenyan authorities report that women and children make up a substantial proportion of those seeking refuge across the border.

The displaced population is spread across six temporary sites incuding Oriental Mission Church, Arosa Mixed, Sessi and Taqwa. Many others are staying with relatives and host families, while approximately 200 people have reportedly sought refuge at a police station in neighboring Mandera County.

Humanitarian agencies cautioned that the estimated 50,000 arrivals remain preliminary, with further assessments and verification underway as cross-border movements continue.

The influx is intensifying pressure on communities already facing economic and environmental challenges. Marsabit is among Kenya’s arid and semi-arid regions, where food insecurity and limited resources have left households vulnerable to additional shocks.

Food assistance is among the most urgent priorities. OCHA estimates that approximately 100 metric tons of dry food rations are required to meet the immediate needs of displaced households and host communities over two months.

Local authorities have also reported shortages of supplies used to treat moderate acute malnutrition, while efforts are underway to increase stocks for treating severe acute malnutrition.

Overcrowding at temporary sites has raised concerns about access to safe drinking water, sanitation facilities and hygiene supplies, increasing the risk of waterborne diseases. Displaced families also require emergency shelter and essential household items, including blankets, sleeping mats, tarpaulins and cooking utensils.

Health services have been established in coordination with county authorities to assist people suffering from exhaustion, acute illnesses and other medical conditions. Humanitarian partners have highlighted the need for additional protection services, particularly for pregnant women, nursing mothers, unaccompanied children and other vulnerable people.

The Kenya Red Cross Society, local authorities and humanitarian organizations are scaling up emergency assistance. Initial food distributions have begun in major temporary settlements, including fortified cereal flour, maize meal, pulses and cooking oil.

Relief partners have also mobilized supplies to provide dry food rations to more than 15,000 people in the coming days. Meanwhile, government authorities and humanitarian agencies are conducting a joint, rapid multisectoral assessment to establish the needs of people living in temporary camps and those accommodated by host communities.

The latest displacement highlights the recurring impact of insecurity along the Kenya-Ethiopia border. Similar episodes of violence in the region forced approximately 20,000 people to flee into Kenya in 2012, with another 20,000 displaced during clashes in 2018.

Humanitarian agencies warn that continued fighting in southern Ethiopia could trigger further cross-border movements, placing additional pressure on already stretched local services. Sustained funding and coordinated assistance will be critical to meeting immediate needs and preventing the crisis from deepening.

A legal case challenging the election of the Ethiopian Sectoral Associations Council’s leadership has been withdrawn following an agreement with the Ministry of Industry to pave the way for a new election, according to the plaintiffs.

The lawsuit, involving Jamal Ahmed, chief executive officer of MIDROC Investment Group, and prominent businessman Belayneh Kinde, emerged amid growing concerns over governance and institutional functioning. The two were elected president and vice president of the council, respectively, alongside 10 new board members during a contested election held in March 2026. Although that election was supervised by the Ministry of Industry, procedural disagreements quickly escalated into formal litigation.

Abebeyahu Girma, the council’s former vice president and one of the plaintiffs, confirmed to Capital that the plaintiffs fully withdrew the case after constructive discussions with the ministry established a clear path toward a fresh vote. He commended the ministry’s new leadership for taking responsibility to resolve the dispute peacefully and facilitate an agreement between the opposing factions.

The lawsuit, filed with the Fifth Commercial Bench of the Federal First Instance Court’s Commercial and Investment Division, argued that the March election failed to comply with legal and procedural requirements. The plaintiffs sought to annul the meeting and compel a fresh election.

Before proceeding to a full hearing, the matter was referred to the court’s mediation centre under Federal Courts Proclamation No. 1234/2021 and Federal Supreme Court Directive No. 12/2021. The court had scheduled a hearing for November 2, 2026, to review any settlement, but the ministry-facilitated agreement rendered further court proceedings unnecessary.

The move toward a new election follows an internal assessment by senior Ministry of Industry officials, experts, and the legal department, which identified serious administrative shortcomings. Among the primary concerns cited was the failure of the newly elected president and vice president to attend their offices for roughly six months following the vote. The assessment also highlighted a complete breakdown in communication with the secretariat, alongside the suspension of vital planning and performance-review activities.

To resolve the impasse, Under Article 3 of the council’s governing rules, one-third of member councils can request the convening of an extraordinary general assembly. According to Abebayehu, more than half of the constituent councils submitted signed written requests calling for an urgent session.

This extraordinary general assembly, anticipated in the coming days, will provide member associations with an opportunity to elect new leadership through an agreed process and restore normal operations.

​Nyala Insurance Company S.C. has reported total assets exceeding 7 billion Birr and paid-up capital of more than 2 billion Birr as it marks its 30th anniversary and launches a rebranding initiative aimed at strengthening its competitiveness and modernizing operations.

​The company also announced that it recorded more than 1 billion Birr in profit during the last financial year, although this figure remains subject to confirmation via an audited report.

​According to Yared Molla, CEO of Nyala Insurance, the anniversary celebration marked the unveiling of a new corporate logo under the initiative “NISCO Reimagined.” The company describes this as a broader transformation strategy extending beyond visual identity to encompass customer service, technology, workforce development, and core business operations.

​Established three decades ago with an initial paid-up capital of 7 million Birr, Nyala Insurance has expanded to more than 50 branches nationwide, which it now designates as “customer experience hubs.” The company was originally founded by investors seeking to contribute to Ethiopia’s financial sector following the opening of the economy to private investment.

​Yared noted that the company’s growth has been driven by customer trust, shareholder support, and employee commitment, despite evolving market conditions, rapid technological developments, and increasing competition in the insurance industry.

​Over the years, Nyala has introduced innovative products and updated existing policies to align with changing customer needs. Its latest strategy places a strong emphasis on the customer experience, introducing a claims concierge service designed to streamline processing and alleviate frustrations with complex procedures.

​As part of this shift, the company is moving away from traditional branch-based service models, aiming to make its locations more accessible and client-focused.

​Digitalization is another core pillar of the new strategy. Nyala plans to modernize its digital infrastructure and service delivery to keep pace with shifting customer expectations and industry trends.

​To address skill shortages in the sector, Nyala has also invested heavily in workforce development. Through its Graduate Trainee Program—launched nine years ago—the company has trained over 200 insurance professionals, many of whom have gone on to serve the broader financial industry.

​Nyala’s workforce now exceeds 400 employees. According to the CEO’s address, the company has built key partnerships with international insurers and reinsurers and acquired strategic ownership stakes in several businesses.

​Additionally, the company reported paying more than 1.7 billion Birr in taxes to the government over the past 15 years.

​This strategic refresh comes at a time when Ethiopia’s insurance industry faces mounting pressure to enhance service delivery, boost operational efficiency, and accelerate tech adoption.

​Looking ahead, Yared emphasized that the next phase will focus on improving service quality, strengthening financial capacity, and expanding the brand’s footprint in both domestic and international markets.

​He added that the new logo is only one aspect of the transformation; the company’s long-term success will ultimately depend on delivering measurable improvements in customer satisfaction, operational efficiency, and contributions to the broader economy.