Ethiopia has inaugurated the 100-megawatt Asella Wind Farm in the Oromia Region, with Prime Minister Abiy Ahmed saying the €145 million project is expected to recover its cost within two years through power sales and savings on fuel imports. The government described the project as a model of “smart borrowing” and a key step in the country’s push toward a climate-resilient green economy.

Located in Arsi Zone, the wind farm was built by a consortium of Spanish and Danish companies, with UAE-based Dar Al-Handasah Shair and Partners serving as consultant. Officials said the project strengthens Ethiopia’s renewable energy mix and supports the country’s ambition to become a regional clean energy hub.

At the inauguration, Abiy said the project reflects a shift toward infrastructure investments that deliver faster economic returns. He contrasted it with previous large-scale projects that often took years to generate visible financial benefits.

The government said the project was financed through a mix of soft loans and grants, including significant support from Denmark. Officials praised the Danish contribution as an example of development cooperation that reduces debt pressure while helping expand clean power in Africa.

Ethiopian Electric Power CEO Ashebir Balcha said the Asella facility features 29 turbines and brings Ethiopia’s total wind power capacity to 504 megawatts. He said the project adds to a rapid expansion in national generation capacity, which has grown from about 4,000 megawatts to nearly 10,000 megawatts over the past seven years.

Beyond electricity generation, the project includes more than 27 kilometers of internal roads, which officials said will also improve access for local farmers to market their produce. Danish Ambassador to Ethiopia Sune Krogstrup said the project demonstrates the depth of the Ethiopia-Denmark partnership and its focus on delivering clean, reliable energy.

Ethiopia is being encouraged to deepen reforms, protect food security and attract more private capital as global shocks continue to squeeze Sub-Saharan Africa’s economic outlook, according to a new Africa Group 1 interim report from the World Bank Group constituency. The report says the region has benefited from stabilization gains, but mounting pressure from conflict, higher import costs and tighter financing conditions is testing those gains.

The April 2026 report places Ethiopia among the constituency countries most exposed to the spillovers from the Middle East conflict, which has disrupted supply routes, increased fuel and fertilizer prices and added pressure to inflation across the region. It says the shock is feeding through to food systems, external balances and fiscal space at a time when many governments already face debt and financing constraints.

For Ethiopia, the report underscores the need to build stronger resilience in agriculture, energy and public finances. It calls for targeted social protection, improved agricultural productivity and more efficient supply chains to protect food availability and affordability.

The report also says Ethiopia and other African economies should prioritize reforms in energy, logistics and business regulation to improve efficiency and support growth. It argues that streamlined rules and better governance are essential if public spending is to deliver more value and if private investors are to gain confidence.

Another priority highlighted in the report is deeper regional integration through initiatives such as the African Continental Free Trade Area. The report says stronger cross-border trade and cooperation can help countries diversify markets, reduce vulnerability and improve economic resilience in a more volatile global environment.

The World Bank Group’s constituency report also points to the need for concessional financing, technical assistance and coordinated support from international partners. It says these tools will be especially important for countries like Ethiopia that must manage immediate shocks while continuing medium-term reforms.

The report further notes that countries in the region should invest in digital infrastructure, climate adaptation and disaster risk management, particularly in agriculture and energy. It says these investments can help economies absorb external shocks more effectively and sustain development gains.

Ethiopia has completed its first legal framework for geographical indications (GI), a move expected to help the country turn distinctive farm products into premium brands and expand earnings from global and regional markets.

The Ethiopian Intellectual Property Authority says the framework will give legal protection to products whose quality, reputation or characteristics are tied to their place of origin. Officials say the new system could help Ethiopian producers capture more value from products such as Sidama coffee, Yirgacheffe coffee and Tigray white honey, which have long lacked strong legal protection.

Deputy Director General Endalew Mosisa said the reform is designed to ensure that products with unique qualities are recognized and protected in the market. He said Ethiopia should be able to market such goods with the same level of recognition enjoyed by products like Champagne or Scotch whisky.

Under the framework, producers outside a designated area would not be allowed to sell products using protected geographical names. Officials say that should help safeguard the reputation of authentic local producers and prevent misuse by traders or competitors.

The legal reform also comes at a strategic time, as Ethiopia continues efforts to join the World Trade Organization and deepen its participation in the African Continental Free Trade Area. According to the authority, stronger intellectual property protection is now a key requirement in those broader trade and integration processes.

Ethiopia has already signed international agreements including the Paris Convention and the Madrid Protocol, which officials describe as important steps toward aligning the country’s trade and intellectual property systems with global standards. An amendment to the establishment proclamation of the Intellectual Property Authority is also being prepared to expand its mandate.

In addition to the GI framework, Ethiopia has finalized preparations to join the Patent Cooperation Treaty, with a draft agreement already submitted to government. Officials say this would make it easier for Ethiopian inventors to seek protection in multiple countries after registering their inventions locally.

The country is also revising its trademark law to reflect current international requirements. At the continental level, Ethiopia is taking part in ongoing efforts under the AfCFTA to harmonize intellectual property rules across Africa.

The Intellectual Property Authority says registration and protection work on geographical indications will begin soon in cooperation with research institutions and universities. Officials expect the initiative to help close quality and pricing gaps in export products such as coffee, sesame, honey and spices, while improving foreign currency earnings.