Ethiopian Airlines, Africa’s largest and fastest-growing carrier, is in advanced discussions with Brazil’s Embraer for the potential acquisition of new regional jets, signaling a significant expansion of its fleet and a possible new chapter in its aircraft procurement strategy. If finalized, this would mark the first time the airline operates Embraer-manufactured aircraft, complementing its existing Airbus and Boeing fleets.

The talks, which have intensified in recent months, reflect Ethiopian Airlines’ ambition to further strengthen its domestic and regional connectivity. Stephan Hannemann, Senior Vice President Sales and Head of Africa & Middle East Region for Embraer Commercial Aviation, confirmed to Capital that the African market is a strategic priority for Embraer, which already has 70 of its aircraft in service with 70 airlines across the continent. Globally, the company boasts over 2,000 aircraft flying with 140 airlines, underscoring its established presence and reliability.

Embraer’s E2 family of jets, seating between 100 and 120 passengers, is being positioned as an ideal solution for the African market. The aircraft’s size, fuel efficiency, and lower maintenance costs offer a compelling value proposition for airlines seeking to optimize route networks and replace less efficient planes. Hannemann emphasized that the E2’s operating economics and passenger comfort make it particularly well-suited for the growing demand for regional air travel in Africa.

Ethiopian Airlines’ interest in Embraer jets comes as the airline seeks to introduce a new capacity segment focused on domestic and regional routes. The carrier’s CEO, Mesfin Tasew Bekele, has previously indicated the need for regional jets to replace part of the airline’s turboprop fleet, with both Embraer’s E2 and the Airbus A220 under consideration. However, decisions have been delayed pending resolution of engine issues affecting both aircraft types.

Hannemann noted that Embraer is keen to establish a long-term partnership with Ethiopian Airlines, building on the country’s strong aviation ecosystem and skilled workforce. “We see Ethiopia as an attractive market for cooperation, not only in aircraft supply but also in areas such as maintenance, training, and parts production,” he said. Embraer’s global maintenance and training network could provide customized solutions to support Ethiopian Airlines’ growth plans, aligning aircraft delivery and entry into service with the airline’s strategic objectives.

Ethiopia’s aviation sector has become a magnet for international investment, with both Boeing and Embraer expressing strong interest in expanding their presence in the country. The government’s commitment to developing Addis Ababa as a regional air transport hub, including the construction of a new international airport in Bishoftu, has created new opportunities for collaboration in aircraft maintenance, manufacturing, and training.

Recent infrastructure developments, such as the new airport designed to handle up to 60 million passengers, further enhance Ethiopia’s appeal as a gateway for African and international air travel. Embraer executives have praised Ethiopian Airlines for its adoption of new technologies and its exemplary role in the continent’s aviation industry.

Embraer’s E2 jets are already making inroads in Africa, with airlines such as Nigeria’s Air Peace and Madagascar Airlines operating or planning to operate the type. The E2 Profit Hunter series is lauded for its fuel efficiency, reduced maintenance costs, and ability to serve smaller markets profitably—key advantages in a region where many national carriers struggle with profitability and market volatility.

Industry analysts predict that Embraer will continue to expand its footprint in Africa as demand for regional air travel grows. The company’s focus on right-sizing aircraft for specific markets and offering widebody comfort in a single-aisle jet has resonated with African airlines seeking to maximize efficiency and passenger experience.

Ethiopia’s escalating housing shortage has reached a critical juncture, prompting lawmakers and experts to call for the urgent establishment and implementation of a national housing bank. The proposed institution is seen as a vital step toward providing sustainable financial solutions for millions of Ethiopians struggling to access affordable homes.

With Ethiopia’s urban population projected to exceed 42 million by 2037, the demand for new housing is staggering. Estimates indicate the country needs to build nearly 486,000 urban homes annually from 2025 to 2035 to keep pace with population growth and urbanization. Yet, the current supply falls far short, with a backlog of more than 1.2 million homes in Addis Ababa alone and an annual nationwide supply that meets only a fraction of the need.

The housing deficit has led to the proliferation of informal settlements, overcrowding, and substandard living conditions, particularly in urban centers. More than 70% of Ethiopia’s housing stock is considered in need of complete replacement or significant upgrades. High land and construction costs, coupled with limited access to affordable finance, further exacerbate the crisis.

The urgency of the situation was underscored during the Urban and Infrastructure Development Ministry’s nine-month budget performance report to the House of Peoples’ Representatives. Members of parliament’s standing committee on urban, infrastructure, and transport affairs stressed that a dedicated housing bank—similar to development banks seen in other countries—would play a crucial role in providing long-term, low-interest loans for home construction.

Deputy Chairperson Eshetu Temesgen warned that without such an institution, it would be difficult to find a sustainable and effective solution to the housing shortage. “The establishment of a national housing bank is not just necessary, it is urgent,” he said, urging the Ministry of Urban and Infrastructure to prioritize the issue and move quickly toward implementation.

While a handful of private sector institutions and cooperatives offer limited housing finance, experts say these are insufficient to meet the needs of Ethiopia’s large and growing population. More than half of housing purchases are financed informally through relatives, friends, and savings groups, with only about 23% of the market relying on mortgages. High interest rates, low incomes, and regulatory barriers have kept mortgage uptake low, and the proportion of bank loans directed to housing remains small.

The government’s Integrated Housing Development Programme (IHDP) has provided some relief, supplying 280,000 subsidized condominium units between 2004 and 2016. However, this meets just 2% of market demand, and surging prices have put even these units out of reach for many low-income families.

Urban and Infrastructure Minister Chaltu Sani acknowledged the scale of the problem, noting that 37,314 homes were built in the past nine months through direct government and regional funding, as well as initiatives led by Prime Minister Abiy Ahmed. In the private sector, 210,184 of a planned 252,656 homes have been completed, representing an 83% completion rate. However, experts agree these achievements are still insufficient given the country’s rapid population growth and rising rates of homelessness.

To address the financial barriers, the government allocated 6.6 billion birr for public housing development and 9.77 billion birr for the private sector in the past nine months. A draft legal framework for improving home financing has been developed, and calls are mounting for its immediate implementation alongside the creation of a national housing bank.

Beyond financing, land supply issues continue to hinder housing development. Delays in land allocation, low prioritization of rural housing construction, and compensation disputes related to infrastructure projects have all slowed progress. The standing committee emphasized that without government leadership and targeted subsidies, the housing crisis will remain unresolved.

Analysts and industry observers say the establishment of a national housing bank could be transformative for Ethiopia’s housing sector. By providing long-term, affordable loans and supporting cooperative societies, government employees, and private individuals, such a bank could help bridge the gap between supply and demand and reduce reliance on informal financing.

“Affordable financing is the missing link in Ethiopia’s housing market,” said a local housing expert. “A dedicated housing bank would make it possible for more Ethiopians—especially low- and middle-income families—to own decent homes.”

Ethiopia has taken center stage in Africa’s rapidly evolving digital finance landscape, following the successful hosting of the Huawei Finance Summit 2025 in Addis Ababa. The high-profile event brought together finance leaders, government officials, and global technology experts to chart the future of financial services on the continent, with Ethiopia emerging as a model for digital transformation.

Under the theme “Driving Change in Financial Resilience in Africa through Digital Technology,” the summit explored how cutting-edge digital solutions are redefining Africa’s financial systems. Huawei, a global leader in ICT infrastructure, reaffirmed its commitment to technological innovation and its pivotal role in building Africa’s digital financial ecosystem.

At the summit, Huawei showcased how its cloud technology has already improved transaction efficiency in Ethiopia by 30% and reduced operating costs by 20% for local banks. The company also introduced an AI-powered security system capable of detecting fraudulent activity with 98% accuracy, alongside a mobile payment platform designed to serve rural populations. These advancements are part of a broader push to make financial services more accessible, secure, and inclusive for all Ethiopians.

The rapid rollout of Huawei’s digital finance solutions has enabled Ethiopian banks to launch new mobile lending products in just six months—a testament to the country’s growing capacity for fintech innovation. “Huawei’s end-to-end solutions have transformed our operational efficiency and security,” said Teferi Assefa, a representative from the Cooperative Bank of Oromia, during the summit’s testimonial session.

Huawei is investing heavily in Ethiopia’s digital infrastructure, constructing state-of-the-art data centers and supporting the development of sustainable systems for financial institutions. These investments align with Ethiopia’s Digital Strategy Country Action Plan (DSCAP) and the broader “Digital Ethiopia 2025” initiative, which aim to harness technology for inclusive economic growth.

Analysts at the summit noted that Ethiopia’s expanding 5G network and the surge in mobile phone usage have created fertile ground for a digital finance revolution. With more than 50 million mobile subscribers and a growing appetite for digital services, Ethiopia is poised to become a regional fintech powerhouse.

The summit’s discussions highlighted Africa’s unique opportunity to leapfrog traditional banking models and embrace digital-first financial services. Huawei executives emphasized that Africa’s financial sector is undergoing a “triple rebuild”—transforming service delivery models, infrastructure architecture, and risk management frameworks all at once.

Tim Liu, Vice President of Huawei North Africa Cloud Business Department, underscored the company’s vision: “We see a future where digital technology bridges the gap between financial institutions and the unbanked, providing secure, user-friendly, and accessible digital services to all Ethiopians and Africans.” Liu also stressed Huawei’s commitment to social responsibility, aiming to enhance people’s lives and drive sustainable development through digital inclusion.

The summit also spotlighted Huawei’s role in fostering partnerships with local banks, fintechs, and regulators to create an enabling environment for innovation. By offering tailored digital platforms and scenario-based solutions, Huawei is helping Ethiopian financial institutions modernize their operations and better serve diverse customer needs.

Joey Zhao, President of Huawei’s Northern Africa FSI Department, highlighted the company’s four-pronged strategy for the financial sector: accelerating application modernization, developing innovative service scenarios, building resilient infrastructure, and improving decision-making intelligence. “Our approach is about more than just technology—it’s about empowering Ethiopia’s workforce with the digital skills needed for the future,” Zhao said.