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As Ethiopia expands nuclear power, IAEA warns Africa against becoming a Radioactive Waste dumping ground

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|Austria, Vienna

Ethiopia is moving rapidly to construct its first nuclear power plant and expand cancer treatment facilities. At the same time, a former senior official of the International Atomic Energy Agency (IAEA) has warned that corrupt foreign contractors are targeting Africa’s weak regulatory systems by disguising deadly radioactive waste as ordinary cargo.

The IAEA has urged African countries to significantly strengthen their regulatory systems so that foreign waste-disposal companies cannot exploit governance gaps to deceive them. The warning comes at a critical time, as countries such as Ethiopia, Kenya and Liberia are expanding peaceful nuclear programs in the medical, agricultural and power generation sectors.

Tariq Rauf, former Head of Verification and Security Policy at the IAEA, current Director of Atomic Reporters and a senior consultant on global nuclear affairs, told Capital that contractors from developed nations bribe local officials to pass off dangerous nuclear materials as harmless commercial cargo.

“Corrupt foreign contractors exploit weak infrastructure and governance gaps in developing countries to transport hazardous radioactive waste by disguising it as ordinary commercial cargo,” Tariq said. He emphasized that because developed countries have enacted strict environmental laws, it is far cheaper for waste-disposal companies to ship hazardous materials to Africa than to dispose of them in their own countries. “No country should import waste from another country, period,” he added.

The strategy, he said, is highly insidious. Contractors allegedly collude with corrupt officials to alter customs declarations and manifests, allowing radioactive materials to pass through ports undetected.

This practice has already led several African countries to accept illegal shipments unwittingly, creating long-term environmental and public health crises that future generations will have to bear. Ethiopia is seen as a critical case study in this broader tension between nuclear ambition and regulatory vulnerability. Although the country is moving to expand nuclear science across several sectors, experts are urging the establishment of a robust legal framework.

In 2025, the agency facilitated the donation of a state-of-the-art linear accelerator (LINAC), supplied by Varian, to Black Lion Hospital in Addis Ababa. In addition, five more radiotherapy centers are planned or under construction in Gondar, Hawassa, Harar and Mekelle.

The IAEA has publicly praised Ethiopia’s commitment to establishing a new nuclear commission, describing it as a crucial step that provides a legal framework for the sector and helps put nuclear energy into practice for peaceful purposes.

The agency has also said nuclear power is a reliable energy source with low greenhouse-gas emissions and is vital to accelerating social and economic growth. It has reaffirmed its readiness to help Ethiopia achieve its nuclear energy goals.

However, Tariq Rauf warns that countries new to the sector face unique vulnerabilities. Speaking to Capital, he said, “For countries like Ethiopia that wish to build nuclear capacity, establishing an unshakeable regulatory framework is not just a bureaucratic prerequisite; it is a matter of national security.”

Rauf highlighted three critical regulatory red lines that governments must address to ensure safety standards are never compromised for short-term gains. These include enacting clear nuclear laws that strictly limit permissible radiation exposure for both professionals and the public; ensuring that regulatory bodies have robust enforcement powers to inspect facilities, issue licenses and monitor the full lifecycle of radioactive materials; and establishing national and regional training institutions to build a domestic workforce capable of safely managing complex technical systems.

“The country that produced the waste must dispose of it itself,” Rauf said, stressing that strict laws in developed countries make shipping waste to Africa cheaper for waste companies and that no country should import waste from another.

Beyond illegal waste imports, he said, one of the biggest internal challenges in developing countries is the failure to properly track medical or industrial radioactive materials that have reached the end of their service life.

Without a strong regulatory system, such spent materials could be discarded without proper disposal or enter the regular scrap-metal market, posing a severe radiation risk to the local population.

Ethiopia is currently studying its long-term energy options, balancing water, gas, solar and nuclear power for its rapidly growing population of more than 130 million people.

At the Second Nuclear Energy Summit in Paris on March 10, 2026, Ethiopia’s Minister of Irrigation and Lowlands, Abraham Belay, set out the country’s position on behalf of Prime Minister Abiy Ahmed.

“Ethiopia has made a sovereign choice to use the atom for the peaceful development of our country’s energy and the peaceful growth of our people,” he said.

Abraham acknowledged the country’s energy vulnerability. “Our hydropower fluctuates with the climate, and we cannot rely solely on rain. Soon, our demand will exceed our supply,” he warned. Explaining that Ethiopia’s ambition is purely civilian, he added, “Our demand is for kilowatts, not nuclear weapons.”

The country has already taken tangible steps toward that goal. In January 2026, the Ethiopian Nuclear Energy Commission, in collaboration with the Ethiopian Academy of Sciences, organized a workshop in Addis Ababa to review the initial report on the site study for the nuclear power plant. The workshop examined methodologies for assessing seismic hazards, hydrology and environmental impacts, and explicitly benchmarked the process against IAEA Safety Standards Series No. SSG-35.

This is especially important because Ethiopia lies within the East African Rift Valley, a geologically active region. A strong seismic hazard analysis is essential to ensure that any nuclear facility can withstand earthquake risks. Technical teams are using Geographic Information Systems (GIS) together with Multi-Criteria Decision Analysis to classify potential sites.

While nuclear power plant construction remains a long-term goal, the immediate use of peaceful nuclear technology is already generating investment returns across Ethiopia’s health, agriculture and industrial sectors.

In agriculture, nuclear techniques are being used to develop drought-resistant crops and pest-control methods. Studies are also under way to use radiation-induced mutation breeding to develop improved seed varieties that require minimal moisture — an innovation considered critical in regions facing increasingly unpredictable rainfall patterns.

The IAEA laboratory in Austria also plays a critical role in calibrating equipment and determining precise radiation doses. As Tariq Rauf noted, if radiation is not properly managed during cancer treatment, it can harm patients. “The dose must be absolutely precise to kill the cancer and prevent further damage to healthy cells,” he said.

​Continuity and consolidation: Assessing the post-election business environment

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​As Ethiopia concludes its national election cycle this weekend, the domestic business community is closely analyzing the implications for the country’s economic trajectory. In an environment where the ruling Prosperity Party maintains a dominant political presence, the primary takeaway for corporate strategists, financial institutions, and foreign direct investors is a strong expectation of macro-policy predictability.
​For the private sector, the Monday’s vote is viewed less through a political lens and more as an indicator of administrative stability. The expected electoral outcome ensures that the sweeping economic reforms initiated under Prime Minister Abiy Ahmed’s administration will continue without disruption.
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Policy predictability and liberalization

The current administration has committed to a sweeping economic modernization agenda. By prioritizing the liberalization of telecommunications, opening up the banking sector to foreign competition, floating the Birr, and advancing negotiations for World Trade Organization (WTO) accession, the government has established a clear roadmap for private sector-led growth.
​According to regional economic forecasts, Ethiopia’s GDP growth is projected to remain highly competitive, driven by major state-backed infrastructure projects and newly attracted industrial investments. A definitive mandate for the Prosperity Party ensures that these foundational policies—including long-term investment frameworks and public-private partnerships—will proceed on their current schedule, minimizing the risk of regulatory gridlock or sudden legislative shifts.
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Operational realities and structural headwinds
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While policy continuity provides a reliable framework for corporate planning, businesses must continue to navigate existing structural and regional challenges. Achieving sustained long-term economic expansion will depend on addressing several key operational factors.
​Logistics and Supply Chain Continuity: Ongoing security adjustments in parts of the Amhara, Oromia, and Tigray regions continue to impact transportation corridors. Businesses operating outside the capital remain focused on restoring full logistical efficiency and supply chain predictability.
​Fiscal Management and Debt Servicing: The government’s ongoing efforts to restructure external debt and manage fiscal balances remain a focal point for macro-analysts. Stabilizing domestic inflation, which currently affects consumer purchasing power, is a shared priority for both public policy and private retail sectors.
​Domestic Production: Revitalizing the manufacturing and agricultural sectors remains essential to rebalancing the economy, reducing import dependence, and creating employment for a rapidly growing population.
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The strategic outlook

​Ultimately, the corporate sector interprets this election cycle as a confirmation of the current economic status quo. The preservation of the existing governance framework provides international markets and domestic enterprises with the institutional certainty required to execute multi-year investment plans.
​Moving forward, the primary objective for both policymakers and the business community will be ensuring that this period of policy stability translates into broader macroeconomic resilience, secure trade networks, and inclusive economic growth across all regions of the country.

Djibouti seeks Ethiopia’s backing to build Damerjog Oil Depot

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The Djibouti Ports and Free Zones Authority (DPFZA) has announced that it is awaiting Ethiopia’s participation in the upcoming budget year to begin construction of an oil depot at the new Damerjog Liquid Bulk Port (DLBP), located in the southeastern part of the country near the border with Somaliland.

The facility, whose ultramodern jetty is currently in the final stages of completion, is awaiting construction of the large-scale depot before it can begin operations in the near future.

Aboubaker Hadi Omar, chairman of the DPFZA, recently told Capital at his office in Djibouti City that the authority is expecting the Ethiopian government to provide the necessary financing for the intake terminal, which is situated about 13 kilometers from the Ethio-Djibouti railway network.

“We are discussing with the Ethiopian government’s investment arm, Ethiopian Investment Holdings (EIH) — one of the continent’s leading sovereign wealth funds (SWF),” the chairman said. He added that EIH intends to invest in a storage farm. “So we are discussing with them,” Hadi noted, expressing hope that the SWF would secure funding by the start of the budget year on July 8.

When asked about the inauguration of the new jetty, which will serve as an alternative to the existing oil terminal at Doraleh, west of Djibouti, the chairman replied, “We have to build the storage first. The Ethiopian side is expected to come forward with that in the near future.”

In late 2022, it was reported that the investment holding company would acquire a stake through EPSE, one of EIH’s major public companies under the SWF’s ownership.

A memorandum of understanding (MoU) was signed in May of that year between the then-CEO of EIH, Mamo Esmelalem Mihretu, and the chairman of the DPFZA, which oversees Great Horn Investment Holding, to explore potential opportunities in oil storage facilities.

However, the project remained stalled until the chairman recently revealed that the Ethiopian government would construct and operate the terminal on the jetty’s onshore section, which was installed by Moroccan industry expert SOMAGEC.

Ethiopia currently relies almost exclusively on Dubai Emirates National Oil Company’s Horizon Djibouti Terminal (HDTL), located near Doraleh, for its energy imports. That facility replaced the older terminal in downtown Djibouti City and was established in 2003 before commencing operations in 2005.

With an annual capacity of 4.5 million tons, the terminal is widely considered insufficient to meet Ethiopia’s rapidly growing demand. According to the Djibouti Ports Authority, the DLBP oil jetty will have an annual capacity of 25 million tons and support up to 12 vessel rotations.

The port will serve multiple storage terminals with a combined static storage capacity of about two million cubic meters, providing the scale needed to support Ethiopia’s expanding energy logistics. The jetty is located about three kilometers from land and is connected by a causeway that provides vehicle access and pipeline services.

Both governments have demonstrated strong political commitment to operationalizing the oil terminal at the new southeastern port facility.

During the most recent meeting of the Ethio-Djibouti Joint Railway Commission (JRC) — a ministerial platform established under the 2016 bilateral railway agreement — the two sides discussed the Djibouti Damerjog Industrial Development (DDID) project, a major port and industrial complex located about 20 kilometers southeast of Djibouti City near the Somaliland border.

The meeting, held in Djibouti in February, acknowledged that Djibouti is finalizing construction of the DLBP jetty, which Ethiopian officials view as critical to meeting the country’s growing fuel demand.

As part of the rail expansion, the Ethio-Djibouti Railway (EDR) plans to build a 17-kilometer line connecting the Damerjog oil terminal to Nagad Railway Station in Djibouti, enabling direct fuel transport to Ethiopia. A feasibility study conducted by Great Horn Investment Holding, a subsidiary of DPFZA, estimates the project’s capital expenditure at $90 million, or about $5 million per kilometer.

Recent sources told Capital that EDR, which is jointly owned by the Ethiopian and Djiboutian governments, has also expressed interest in acquiring a 49% stake in the Damerjog fuel storage project — including infrastructure for jet fuel handling — signaling its ambition to expand its role beyond rail operations.

Earlier in January, Prime Minister Abiy Ahmed toured both HDTL and the Doraleh Multipurpose Port during his visit to Djibouti. During the visit, the Prime Minister underscored his government’s urgent interest in transporting strategic commodities by rail, emphasizing that the two ports should be connected to the Ethio-Djibouti railway system as soon as possible.

This priority was also reflected in the February JRC meeting. It is worth recalling that EIH CEO Brook Taye met with Djibouti President Ismail Omar Guelleh last week in Djibouti to discuss the pipeline project, which Ethiopia intends to modernize its energy transportation through.

The plan envisions implementation in strategic partnership with Dangote Group, an industrial conglomerate. The first phase involves installing a pipeline for refined petroleum products from the port of Djibouti to Daweleh, a border town in Ethiopia.

The second phase will involve establishing a gas pipeline and an oil pipeline to export Ethiopian natural gas and crude oil from oil and gas fields in Ethiopia’s Somali region to external markets via the Djibouti corridor.

Capital’s efforts to obtain further information about the Damerjog depot project from EIH were unsuccessful.

Ethiopia opens Franco Valuta to investors and diaspora traders under new rules

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The National Bank of Ethiopia (NBE) has officially enacted a comprehensive new legal framework governing “Franco Valuta” import arrangements, significantly shifting how foreign investors, diaspora traders, and domestic economic zones utilize alternative foreign exchange channels.
Signed into law by NBE Governor Eyob Tekalign, the Import on Franco Valuta Directive No. FVD/01/2026 officially took effect on May 29, 2026.

This policy effectively repeals the previous, broad provision under Article 8 of the 2024 Foreign Exchange Directive, replacing it with a heavily regulated, centralized framework designed to boost investment while aggressively curbing illicit financial flows.

The Franco Valuta arrangement allows entities to import goods into Ethiopia without drawing foreign exchange from the country’s heavily constrained domestic banking system. Under the new directive, the NBE has explicitly designated specific “Eligible Users” permitted to leverage this system to stimulate economic growth.

These include licensed domestic economic zones, diaspora investors, foreign investors, manufacturing and industrial enterprises owned by foreign investors, development projects of strategic national importance, as well as the diplomatic corps, regional or international non-governmental organizations (NGOs), and religious institutions.

For medium and large-scale manufacturing, as well as investment sectors, the directive permits the import of critical capital goods, industrial machinery, raw materials, agricultural inputs, and renewable energy equipment.

Crucially, the policy opens doors for trading purposes, explicitly allowing the wholesale or retail import of commercial goods by eligible Foreign Direct Investment (FDI) and diaspora traders, alongside specialized clearances for free trade zones.

While the NBE acknowledged that Franco Valuta is vital for facilitating trade without depleting national foreign currency reserves, bank officials emphasized that the previous regulatory vacuum posed substantial economic threats.

To eliminate risks like misreporting and the circumvention of foreign exchange regulations, the Ethiopian Customs Commission has been ordered to integrate all transactions into the digital system known as the Foreign Exchange Monitoring and Orchestration Unified System (FEMoUS).

The directive features strict provisions capping Free-on-Board (FOB) dollar values across 24 distinct categories of goods. For instance, diaspora investors or returning nationals holding an investment license can import raw materials for pilot production and personal effects capped at a value of $10,000 FOB.

Meanwhile, individual personal effects for first-time movers to the country are capped at $5,000 FOB. The National Bank has warned that any attempt to circumvent these digital controls or make false customs declarations will result in severe administrative and legal consequences.