Ethiopia’s weighted average exchange rate for successful bids in the foreign exchange auction fell to 159.70 birr per US dollar in the latest round conducted by the National Bank of Ethiopia (NBE), down from 160.10 birr in the previous auction held two weeks earlier.

The 31st foreign exchange auction, conducted on October 27, 2026, attracted bids totaling USD 150.83 million against the USD 140 million allocated by the central bank, leaving demand USD 10.83 million above the available supply.

According to the NBE’s announcement, the latest weighted average rate declined by 0.4058 birr per dollar compared with the October 13 auction. The movement indicates a change in the rates offered by banks that successfully secured foreign currency, although the results alone do not establish a broader trend in the foreign exchange market.

The marginal exchange rate, also known as the cut-off rate, stood at 158.18 birr per dollar, slightly higher than the 158.17 birr recorded in the previous auction. The highest bid rate reached 160.99 birr per dollar, compared with 160.98 birr in the previous round.

The lowest bid rate increased from 153 birr per dollar in the October 13 auction to 158.18 birr in the latest round.

Participation also expanded, with 30 commercial banks submitting bids, compared with 29 in the previous auction. Of these, 28 banks secured foreign currency, up from 26 successful participants in the earlier round.

Despite the slight decline in total bids, demand continued to exceed the amount made available by the central bank. Total bids fell from USD 152.09 million in the previous auction to USD 150.83 million, a decrease of USD 1.26 million.

The NBE maintained its allocation at USD 140 million in both auctions, while the excess of bids over available foreign currency narrowed from USD 12.09 million to USD 10.83 million.

The United Nations Transitional Assistance Mission in Somalia (UNTMIS) will cease operations on October 31, ending more than three decades of direct UN mission engagement dedicated to peacebuilding, state-building, governance, and national reconciliation.

This marks a pivotal shift in the UN’s long-standing relationship with Somalia. Mandated responsibilities previously carried out by UNTMIS are being systematically transferred to Somali federal institutions and resident UN agencies, funds, and programmes under a joint roadmap established between the Federal Government of Somalia and the United Nations.

UNTMIS is concluding its two-year transition in accordance with UN Security Council resolutions 2753 (2024) and 2809 (2025). Established in October 2024 to restructure the UN’s footprint following an official request from Mogadishu for greater self-governance, the mission was designed to guide this transfer of authority directly to local institutions.

In a statement issued on October 26, UN Secretary-General António Guterres praised the resilience of the Somali people and commended the significant progress achieved toward peace and security over recent decades. He acknowledged the collective efforts of Somali authorities, international partners, and UN personnel in aiding the country’s recovery from prolonged conflict.

Guterres expressed deep gratitude to successive Special Representatives of the Secretary-General, as well as the national and international staff who served under demanding and often hazardous conditions. He also paid solemn tribute to UN personnel who lost their lives in the line of duty, honoring their service to international peace.

The UN confirmed that the mission’s closure does not signal a total withdrawal from the country. Instead, direct support will continue through specialized resident agencies working alongside Somali authorities, the African Union, and international stakeholders. Continued collaboration will center on advancing governance, human rights, economic stability, and sustainable development.

However, the UN chief cautioned that formidable political, security, humanitarian, and development hurdles remain, calling on the global community to maintain vital financial and diplomatic support to consolidate hard-won gains. Key priorities highlighted by Guterres include fostering inclusive political dialogue, deepening national reconciliation, reinforcing public institutions, and safeguarding fundamental rights.

Security remains a primary challenge, particularly the persistent threat posed by Al-Shabaab, an armed group responsible for decades of violent insurgency. Guterres underscored the urgent necessity of sustained international defense and security assistance to counter the insurgent network, ensuring a gradual, stable transition as national forces assume primary responsibility for domestic security.

As UNTMIS draws to a close, Somalia enters its next phase of state-building with increased national ownership over its political trajectory. Guterres reaffirmed the organization’s enduring commitment to helping the Somali people build a peaceful, stable, and prosperous future, emphasizing that strong, continued cooperation between Somalia and its international partners remains essential to preserving progress.

No African country met the overall agricultural development benchmark under the Malabo Declaration, highlighting persistent gaps in public investment, agricultural research, and the implementation of continental commitments, according to the fifth Comprehensive Africa Agriculture Development Programme (CAADP) Biennial Review.

Speaking at the Africa Science and Innovation Forum in Addis Ababa, Abebe Haile-Gabriel, Assistant Director-General and Regional Representative for Africa (RAF) at the Food and Agriculture Organization of the United Nations (FAO), said the review showed improvements in continental performance but underscored the urgent need to translate political commitments into measurable results.

Of the 45 countries that submitted reports, none achieved the overall Malabo benchmark. Only four countries met the target of allocating at least 10% of public expenditure to agriculture, while only five achieved agricultural research spending equivalent to at least 1% of agricultural gross domestic product (GDP).

The findings raise serious questions about Africa’s ability to accelerate agricultural productivity, improve food security, and strengthen resilience against climate shocks, conflict, and economic pressures.

Abebe called on governments to provide predictable financing, strengthen institutions, and ensure that agricultural development plans are backed by clear responsibilities, implementation timelines, and accountability mechanisms.

“Can we repeatedly announce transformation while failing to connect plans to budgets, budgets to disbursements, and disbursements to results?” he asked, stressing that political commitments must be reflected in actual spending and visible improvements for producers.

The FAO representative also warned that Africa risks falling behind in agricultural competitiveness as artificial intelligence, robotics, satellite monitoring, and data-driven systems increasingly reshape global food production and natural resource management.
Internet connectivity remains a major constraint.

Citing International Telecommunication Union figures, Abebe noted that internet usage in Africa stood at 36% in 2025, compared with approximately 75% globally. The disparity illustrates the massive challenge of ensuring digital agricultural technologies reach smallholder farmers across the continent.

He stressed that innovation should not be limited to sophisticated equipment. Improved seeds, healthier soils, animal health services, affordable water management, and safer food handling, storage, and processing are equally critical to transforming agrifood systems.
He cited an example of FAO-supported South-South and triangular cooperation in which farmers reported a fourfold increase in rice harvests on the same cultivated land following support that included improved drainage and seedling spacing.

Ethiopia’s State Minister of Agriculture, Sofia Kassa, also called for stronger investment, partnerships, and practical innovation to accelerate the transformation of Africa’s agrifood systems.

She highlighted Ethiopia’s wheat self-sufficiency efforts, the Green Legacy Initiative, and the Lema Trufat initiative as key examples of development programs intended to translate political commitment into coordinated action and investment.

However, she acknowledged that significant challenges remain in raising agricultural productivity, strengthening market connections, and expanding access to finance and technology—particularly for smallholder farmers in rural areas.

Sofia emphasized that innovation must encompass artificial intelligence, robotics, digital platforms, precision agriculture, and biotechnology, alongside institutional reforms that turn research and knowledge into practical, real-world benefits.

Ethiopia’s deployment of electrification is running ahead of the country’s policy and infrastructure enabling conditions, driven by abundant low-cost hydropower and rapid adoption of electric vehicles, according to the first Electrification Competitiveness Index.

Ethiopia records a 45% deployment score and a 38% enabler score, placing it in the index’s “early-stage adoption” category. The deployment score is at the sample median of 45%, while its enabling conditions remain significantly below the 67% median.

The assessment, which covers 16 countries, measures how effectively countries are creating the conditions for businesses and consumers to shift from fossil-fuel-based processes to electricity that is affordable, reliable and available at scale.

Ethiopia is described as a “striking outlier” because its current electrification deployment is ahead of the underlying enabling environment.

The country’s position is largely supported by its abundant low-cost hydropower and rapid electrification of road transport. A government ban on imports of internal-combustion-engine vehicles has helped electric vehicles gain significant market share, with EVs accounting for around 60% of new passenger-car sales in 2024, according to the assessment.

However, the report identifies basic electricity access as Ethiopia’s biggest constraint.

While the country has a major advantage in clean and relatively inexpensive electricity generation, limited access to electricity, grid expansion needs and reliability challenges could restrict the spread of electrification beyond transport.

“Grid expansion, reliability and workforce capacity” need to improve for Ethiopia to extend its clean-power advantage into sectors such as buildings and industry, the assessment says.

The findings highlight a significant contrast between Ethiopia’s progress in electric transport and the broader challenges facing its power system.

Rapid EV adoption demonstrates that demand for electrification can grow quickly when supportive measures and market conditions are in place.

But the benefits of electrification depend on the availability of reliable electricity infrastructure.
Ethiopia’s position in global comparison

The index separates Deployment from Enablers rather than producing a single country ranking. Deployment measures existing uptake, market conditions and the business case for electrification, while Enablers measure policies and other conditions that could support future deployment.

Countries are divided into four groups using sample medians of 45% for deployment and 67% for enablers.

Ethiopia therefore sits at the boundary of the deployment median but well below the median for enabling conditions.

China records one of the strongest performances in the assessment, with deployment at around 68% and enablers at approximately 78%, placing it in the “solid foundation” quadrant. South Korea also records relatively strong deployment.

Other emerging economies face different constraints. Indonesia has a 37% deployment score and 47% enabler score, while the Philippines scores 39% and 43%, respectively. South Africa records 38% deployment and 53% in enablers.

The comparison suggests that countries can reach similar stages of electrification through very different pathways and face different barriers to further progress.

Electricity access remains critical
For Ethiopia, the report’s findings underscore the importance of expanding electricity access and strengthening the grid if electrification is to move beyond electric vehicles.

The country’s hydropower resources provide a potentially significant competitive advantage as global economies increasingly shift transport, industry and buildings toward electricity. But without sufficient transmission and distribution infrastructure, reliable supply and a skilled workforce, that advantage may not translate into broader economic electrification.

The index’s wider findings point to the importance of electricity systems keeping pace with growing demand.

A 2026 survey by the We Mean Business Coalition found that 90% of business leaders across 18 markets expect their operations to be largely electrified by 2035, while 63% said their countries’ power systems were not keeping pace with their electrification needs.

The International Energy Agency has also identified faster electrification as a potential source of economic and energy-security benefits, including lower fossil-fuel import costs.

For Ethiopia, the challenge is therefore shifting from demonstrating that electrification can happen quickly in selected sectors to building the power infrastructure and enabling conditions needed to make electrification widespread.

The country’s strong hydropower base and rapidly expanding EV market provide a foundation. But expanding reliable electricity access, strengthening grids and developing the workforce needed to support electrification will be critical if Ethiopia is to convert its early advantage into broader industrial and economic competitiveness.