Ethiopian Shipping and Logistics (ESL), the state-owned logistics giant, has reported impressive financial results for the first half of the 2024/25 budget year, exceeding its revenue targets and achieving significant operational milestones.

Despite having to concentrate on feeder services for Ethiopian cargoes stored at nearby ports, ESL generated over a quarter of a billion dollars in foreign currency earnings from its cross-trade operations during this reporting period.

In a further demonstration of its strong financial health, the company paid a dividend of three billion birr to its parent organization, Ethiopian Investment Holdings (EIH).

According to the report, ESL recorded total income of 46.8 billion birr, surpassing its target of 44 billion birr by 106%. Expenses for the period were 37.5 billion birr, closely aligning with projections.

The company’s gross profit for the six months exceeded expectations by 50%, while its pre-tax profit reached 9.3 billion birr, significantly higher than the anticipated 6.2 billion birr.

Berisso Amallo, CEO of ESL, attributed this success to macroeconomic reforms that established a market-based exchange system, as well as growing revenues from cross-trade activities. He also noted that resolving challenges in the Red Sea region could further enhance cross-trade commerce.

One of ESL’s notable achievements was its performance in cross-trade operations, generating USD 271 million—16% more than its goal of USD 234 million for the specified time frame.

The logistics company prioritizes the cross-trade sector due to its capacity to generate substantial hard currency revenue. Over the fiscal year ending July 7, 2024, ESL secured USD 421 million from this business segment.

As the only deep-sea vessel operator on the African continent, ESL primarily focused on feeder services for Ethiopian cargoes during this period, as its partner vessel operators avoided the Red Sea for security reasons.

ESL’s vessels transported goods from ports such as King Abdullah in Saudi Arabia and Salalah in Oman to Djibouti, Ethiopia’s main maritime outlet. The company currently operates a fleet of ten vessels.

Experts note that ESL’s ability to achieve significant foreign currency earnings underscores its strategic adaptability and operational efficiency, even amid the constraints of focusing on feeder services. ESL’s cross-trade business, which involves transporting goods between foreign ports, has become a key revenue driver, significantly contributing to its overall financial success.

However, ESL has faced operational challenges due to the ongoing Ukraine-Russia crisis and hostilities in the Red Sea region involving Ansar Allah, also known as the Houthi militants of Yemen.

Despite facing obstacles, the company has successfully maintained its operations and achieved significant milestones.

One of the key accomplishments during the reporting period was the completion of audit reports for the past five years, a task that had previously been challenging for the corporate division. “We have completed the four-year audit report, starting with the 2019/20 fiscal year. We are now finalizing the audit report for the previous fiscal year in accordance with international standards,” said Berisso.

He emphasized that these audit reports would allow the company to expand into various sectors and uphold its global standing.

In addition to its financial achievements, ESL transferred three billion birr to its parent company, EIH, during the review period. EIH, a sovereign wealth fund, owns 34 large and strategically important public enterprises. This dividend payment follows a similar payout of three billion birr in the previous fiscal year.

Operationally, ESL transported over two million tons of freight in the first half of the budget year and successfully moved approximately 60,000 TEU containers using multimodal transportation.

Looking ahead, the company aims to handle 819,877 tons of cross-border freight and 4.3 million tons of import marine freight by the end of the fiscal year, as announced by the CEO in July of last year.

ESL’s strong performance underscores its critical role in Ethiopia’s logistics and trade sectors, even amidst regional and global challenges. With its continued focus on operational efficiency and strategic growth, the company is well-positioned to maintain its leadership in the maritime industry.

Global Bank Ethiopia has officially launched a state-of-the-art digital banking service center aimed at enhancing customer experience and streamlining operations. The new center will offer 24/7 banking services, including account openings, deposits, withdrawals, foreign exchange transactions, and bill payments. Additionally, it features a video conferencing room for enterprise customers to access remote video banking services.

CEO Tesfaye Boru emphasized the bank’s commitment to technological advancement and customer satisfaction, stating that this initiative is designed to increase efficiency and better serve its growing customer base of 1.7 million. The bank has experienced significant growth recently, reporting a pre-tax profit of 757.6 million birr this year, attributed to strategic branch expansion and technological innovation.

Global Bank is also focused on meeting the minimum capital requirements set by the National Bank of Ethiopia and expanding its reach across the nation. With total deposits exceeding 20.6 billion birr and total assets surpassing 26.6 billion birr, the bank is well-positioned for further growth.

In a move to solidify its status as a leading financial institution in Ethiopia, Global Bank plans to construct a new headquarters on a 5,550-square-meter site acquired from the Addis Ababa City Administration. This ambitious project is expected to enhance the bank’s operational capacity and service delivery.

Ethiopia’s tourism minister has emphasized the importance of reclaiming cultural assets, asserting that these resources are best protected in their countries of origin. Sileshi Girma, State Minister of Tourism, stated that African nations have a fundamental right to reclaim their cultural heritage, highlighting the deep connection between cultural resources and national identity.

During a recent forum hosted by UNESCO in Addis Ababa, Sileshi stressed the necessity of strong international cooperation to combat the trafficking of cultural heritage. He reaffirmed Ethiopia’s commitment to collaborating with the global community to facilitate the return of looted artifacts.

The forum was organized by the Economic Commission for Africa (ECA) and aimed to address the challenges surrounding the recovery of cultural heritage across the continent. Sileshi noted that while previous efforts under the 1970 agreement to recover artifacts have seen some success, more work is needed.

Ethiopia is taking a leading role in advocating for international cooperation to restore looted cultural heritage, which Sileshi described as essential for healing historical wounds and achieving sustainable development. He called for “new forms of cooperation and agreements” to enhance efforts in restoring African cultural property.

Rita Bissoonauth, UNESCO Liaison Office representative in Ethiopia, highlighted the critical role of culture in Africa’s sustainable development. She pointed out that the cultural and creative sector significantly contributes to the global economy, supporting over 48 million jobs and emphasizing youth job creation.

Bissoonauth acknowledged ongoing challenges, including looting and human trafficking, and outlined UNESCO’s strategic approach to promoting cultural diversity and preserving heritage. She urged stakeholders to intensify efforts to protect these invaluable resources.

The United States Agency for International Development (USAID), the largest foreign aid agency in Ethiopia, has suspended all foreign aid for 90 days, raising concerns about the impact on the country’s development across various sectors, including health, education, agriculture, and humanitarian assistance. This suspension has forced other international organizations to step in and manage projects previously initiated by USAID, creating challenges as they scramble to adapt and reallocate resources.

While organizations such as UNHCR, UNFPA, FAO, and the International Rescue Committee (IRC) continue to provide support during this review period, the absence of USAID’s significant contributions threatens the well-being of vulnerable populations in Ethiopia. A source from a relief organization expressed concern that this suspension could adversely affect those reliant on essential services like food aid and healthcare.

For instance, a project aimed at assisting displaced citizens in southern Ethiopia has been disrupted due to USAID’s withdrawal. This has left organizations dependent on USAID’s support in a precarious position regarding funding and resource allocation.

Following the suspension of U.S.-funded humanitarian aid, Action Against Hunger announced it had to cut food assistance to refugees in Gambella region. This organization has been a key player in addressing malnutrition in Ethiopia since 1985, but the funding freeze jeopardizes its ongoing efforts.

In response to the suspension, U.S. Secretary of State Marco Rubio has permitted U.S.-funded aid organizations to temporarily resume existing rescue operations but has restricted them from entering new aid supply agreements.

The implications of USAID’s suspension are dire for millions of Ethiopians who depend on food assistance amid ongoing crises exacerbated by drought and conflict. With over 20 million people in urgent need of support, the gap left by USAID’s absence could lead to increased suffering and instability in one of the world’s most vulnerable countries.