The National Bank of Ethiopia (NBE) has indicated that while the banking sector is reopening to international competitors, domestic banks will maintain a dominant position.

On Tuesday, December 17, 2024, Parliament made a significant decision to limit government financing from the NBE and to allow foreign firms back into the banking sector.

“After extensive discussions, processes, and debates, we have reached this point. With the amendment of the two proclamations, it marks a significant milestone for us,” stated NBE Governor Mamo Esmelealem Mihretu.

He mentioned to Capital that the NBE founding proclamation is a vital piece of legislation that will tackle several past issues, as it will clarify NBE’s mission and strategy.

“The new proclamation aligns the central bank with other similar institutions in terms of governance, structure, vision, cooperation, and capital,” Mamo added.

He described this development as a historic step for Ethiopia’s financial industry, granting enhanced authority to effectively regulate the sector.

According to Mamo, the banking business proclamation has provided the regulatory body with additional jurisdiction and resolution authority, while also opening the financial sector to foreign companies.

“It has outlined the process for addressing crises at individual banks,” he noted.

While the proclamation mentions the establishment of new banks, the governor indicated that a forthcoming directive will impose further licensing criteria.

“We believe that through cooperation, the new proclamation will strengthen domestic banks,” he stated.

He also informed Capital that the banking business declaration, which will be supported by various rules and directives, aims to address merger and acquisition issues.

“It is true that unless foreign banks introduce new business practices and products, the Ethiopian financial industry will remain dominated by domestic institutions,” Mamo asserted.

He emphasized that the main focus for both proclamations in the near future will be the implementation of supporting laws.

According to the new NBE establishment proclamation, individuals who use cryptocurrency or other digital currencies for payments without NBE approval could face up to three years in prison.

Furthermore, the proclamation includes penalties for violators, with a maximum sentence of three years for those who fail to comply with the new laws.

Desalegn Wedajo, chair of the parliament’s Plan, Budget, and Finance Standing Committee, explained that a new subarticle was introduced to penalize individuals who misapply laws related to the forex market.

A new transitional clause requiring the government to repay any loans received from the central bank was added to the proclamation.

The NBE is authorized to provide temporary overdraft facilities to the central government, which shall not exceed fifteen percent of the average annual domestic revenue of the general government from the previous three fiscal years.

Although this provision is not new, it was revoked in the 591 proclamation issued 17 years ago.

Ethiopia is stepping up its fight against mycetoma, a neglected tropical disease (NTD) that poses significant health challenges for many individuals, particularly in rural areas. Characterized by chronic deformities and tissue destruction, mycetoma has largely been overlooked in terms of research and treatment, leaving countless patients without the care they need.

Mycetoma, often referred to as “Madura foot,” is caused by either bacterial or fungal infections, with the latter being more prevalent in Africa. The disease primarily affects populations engaged in agriculture and livestock herding, where exposure to contaminated soil and animal dung is common. It manifests as large, tumor-like swellings on the skin, typically on the feet, which can develop into chronic wounds and may ultimately require amputation.

Ethiopia lies within the “mycetoma belt,” a region extending between latitudes 15° S and 30° N where the disease is endemic. Common pathogens include *Madurella mycetomatis* and various actinomycetes. Despite its serious consequences, basic epidemiological data on mycetoma remains scarce, leading to an underestimation of its global burden.

The story of Meles, a patient from the Amhara Region diagnosed with mycetoma at the age of seven, illustrates the profound impact of this disease. After enduring over 20 years of suffering and multiple surgeries, Meles is now unable to support his family. His experience highlights not only the physical pain associated with mycetoma but also the significant social and economic burdens faced by patients.

One of the critical issues surrounding mycetoma in Ethiopia is its under-diagnosis. Many patients present late to healthcare facilities after years of suffering due to a lack of awareness and limited access to medical care. This delay can lead to severe complications, including chronic osteomyelitis, complicating treatment and recovery efforts. Diagnostic facilities capable of differentiating between bacterial and fungal origins are limited, resulting in many patients receiving inadequate treatment.

To effectively address the burden of mycetoma, experts advocate for a comprehensive national strategy that includes improved reporting, diagnosis, and management of the disease. Establishing a routine program to document cases and developing clear treatment guidelines are crucial steps towards effective management. Additionally, systematic studies are needed to determine the exact prevalence and impact of mycetoma across Ethiopia.

Advocacy efforts have gained momentum since the World Health Organization recognized mycetoma as a neglected tropical disease in 2016. Collaborative initiatives led by organizations such as the Drugs for Neglected Diseases initiative (DNDi) aim to raise awareness and invest in research to develop safe and effective treatments that can prevent disability and improve patients’ quality of life.

Recent clinical trials have shown promise in treating mycetoma with drugs like fosravuconazole and itraconazole. These findings could pave the way for more effective treatment regimens that are easier for patients to manage. Ongoing efforts to register these treatments in Ethiopia and expand access are vital for ensuring that patients receive necessary care.

Moreover, initiatives like the Mycetoma Open Source project (MycetOS) aim to foster collaborative research efforts globally, focusing on discovering new treatments for mycetoma. By engaging researchers from various backgrounds, this project seeks to accelerate drug discovery and provide innovative solutions to combat this neglected disease.

Mycetoma remains a significant public health challenge in Ethiopia, affecting countless lives and communities. Addressing this disease requires concerted efforts from healthcare providers, policymakers, and researchers to develop effective strategies for diagnosis, treatment, and awareness. By shedding light on mycetoma and advocating for those affected, Ethiopia can take critical steps toward alleviating the burden of this devastating disease and improving the lives of its patients.

As Ethiopia continues its proactive approach to tackling mycetoma through comprehensive strategies and collaborative initiatives, there is hope for better treatment options and support systems for individuals living with this debilitating condition. The commitment to addressing this neglected tropical disease reflects a growing recognition of the need for improved healthcare infrastructure and resources dedicated to public health challenges in the region.

Lion Insurance, a prominent player in Ethiopia’s insurance industry for the past 17 years, has announced a historic achievement: for the first time, the company has raised over 1 billion birr in premiums revenue. This milestone positions Lion Insurance among the leading firms in the sector, reflecting a significant growth trajectory.

In a recent report, Lion Insurance revealed that its total premiums revenue reached 1.173 billion birr, marking a remarkable 41 percent increase from the previous year. This growth underscores the company’s resilience and ability to adapt to the evolving insurance landscape in Ethiopia.

Abrham Gebreamlak, Chairperson of the Board of Directors at Lion Insurance, acknowledged the challenges facing the sector, particularly the shortage of skilled personnel. He noted that this lack of expertise has led to inadequate wages and benefits for employees, putting pressure on workforce stability. “We are actively working to build the professional capacity of our employees and develop future leaders within the organization,” he stated.

The annual report also highlighted that Lion Insurance incurred total compensation costs of 42 million birr this fiscal year, with a compensation ratio of 63.8 percent. The company’s net profit stood at 185 million birr, with an average dividend share of 57.6 percent.

Notably, the life insurance sector, which is still in its second fiscal year, collected premium revenue of 23.1 million birr—an impressive increase from 4.4 million birr recorded in the previous fiscal year. This growth has contributed to an increase in the company’s market share to 1.2 percent.

By the end of the fiscal year, Lion Insurance’s Company’s  assets increased by 33.9 percent  from the previous year, reaching 2.78 billion birr .

During its 17th General Meeting of Shareholders, Lion Insurance reported total compensation payments amounting to 421.9 million birr and a result from insurance contract operations of 280.6 million birr—an increase of 126.8 million birr or 82.4 percent compared to the prior year.

Additionally, the company earned 143.9 million birr before tax from various investment sources, culminating in a total profit of 211.2 million birr for the fiscal year—a significant increase of 135.6 million birr or 179.3 percent compared to the previous fiscal year.

Lion Insurance has received approval from the National Bank of Ethiopia to offer inclusive Takaful insurance products to its customers and is preparing to launch this service soon. This initiative reflects the company’s commitment to expanding its product offerings and meeting diverse customer needs.

Ethiopia has convened its first annual climate finance summit, bringing together government officials, private sector leaders, financial institutions, and international partners to develop innovative solutions for climate finance and address pressing climate issues facing the nation. The summit aims to mobilize resources for climate action, identify financial gaps, and forge partnerships that promote sustainability amid the country’s ongoing struggles with erratic rainfall, drought, and rising temperatures.

During the summit, Ahmed Shide, Minister of Finance, emphasized the urgent need for international attention on Ethiopia’s efforts to reduce carbon emissions and restore land. He highlighted the significant challenges posed by climate change, stating that the impacts are being felt acutely by communities across the country. “The challenge we are facing in Ethiopia is clear and undeniable,” said Hikmet Abdella, CEO of FSD Ethiopia. “From devastating droughts to rainfall disturbances, our communities are bearing the brunt of the climate crisis.”

Despite these challenges, Ethiopia remains committed to transitioning to a green economy resilient to climate change by 2030. The summit served as a critical platform for exploring financing mechanisms necessary to achieve the country’s ambitious climate resilience goals.

One of the key highlights of the summit was Ethiopia’s updated climate finance strategy, which includes a target to reduce greenhouse gas emissions by 68.8 percent by 2030 as outlined in its Nationally Determined Contributions (NDCs). The discussions at the summit underscored the importance of establishing new partnerships and formulating policy recommendations aimed at accelerating Ethiopia’s transition to a low-carbon and climate-resilient economy.

“This summit is an important opportunity for all stakeholders to come together and chart a clear path forward for climate finance in Ethiopia,” Hikmet noted, emphasizing inclusivity and sustainability as central themes.

The one-day summit featured panel discussions with industry experts, government officials, financial leaders, and representatives from international organizations. Participants explored a wide range of issues related to innovative financial mechanisms and the role of the private sector in leading climate action.

The event also provided an opportunity for stakeholders to share insights on best practices and successful initiatives that can be replicated in Ethiopia to enhance its climate resilience efforts.