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Fx auction records higher demand after September undersubscription

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Ethiopia’s foreign exchange auction recorded stronger demand in October, with bids exceeding the amount offered by the National Bank of Ethiopia (NBE), reversing the undersubscription recorded in the previous auction in September.

The central bank allocated 140 million US dollars in its 30th foreign exchange auction, held on October 13, 2026, and received bids totaling 152.09 million dollars, according to the results published by the NBE.

The total bids exceeded the allocated amount by 12.09 million dollars, indicating increased demand for foreign currency among participating banks.

The latest auction attracted 29 banks, of which 26 secured foreign exchange allocations. This compared with the September 23 auction, when 27 banks participated and all received allocations.

In the previous auction, the central bank offered 125 million dollars but received bids worth only 123.49 million dollars, leaving the auction undersubscribed by 1.51 million dollars.

The October allocation represented an increase of 15 million dollars, or 12 percent, compared with the September auction. Meanwhile, the total value of bids rose by 28.60 million dollars, reflecting a notable shift in demand between the two rounds.

The NBE reported that the marginal exchange rate, also known as the cut-off rate, reached 158.1724 birr per dollar in the latest auction, compared with 158.0715 birr in September.

The weighted average rate of successful bids stood at 160.1072 birr per dollar, slightly lower than the 160.2297 birr recorded in the previous auction.

The highest bid in October reached 160.9878 birr per dollar, while the lowest stood at 153 birr. In September, the highest bid was 160.8869 birr per dollar, and the lowest was 158.0715 birr.

The Russian-Ethiopian Agro-Industrial Partnership: Investment, Technology, Food Security

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Ethiopia is experiencing one of the most remarkable agricultural booms on the continent: the country’s wheat production has more than tripled over the past twenty years and continues to break records. However, a rapidly growing population and a dynamically developing economy present new challenges – ensuring the stability of the food market, modernising the processing of agricultural raw materials and adapting farming to climate-related risks. In each of these areas, Russian-Ethiopian cooperation offers practical solutions.

Agricultural progress and sustained demand

In 2005, Ethiopia’s wheat harvest stood at around 2.2 million tonnes; in the 2025/26 season, it reached a record 6.5 million tonnes, and in the 2026/27 season, 6.8 million tonnes are expected – an all-time record in the country’s history. This result stems from a consistent government policy to reduce dependence on imports, primarily through the expansion of irrigated agriculture.

At the same time, consumption is growing even faster: 7.95 million tonnes in the 2025/26 season and 8.2 million tonnes forecast for 2026/27. Consequently, the need for wheat imports remains at 1.4–1.5 million tonnes per year. For a landlocked country, this is a logistically challenging task: grain arrives via the port of Djibouti, where a separate complex has been allocated for Ethiopian transit, complete with a customs office and a warehouse with a capacity of 30,000 tonnes. Since November 2024, all imports have required authorisation from the National Bank, which increases the importance of reliable and predictable suppliers.

Core stability: grain and fertilisers from Russia

In recent years, Russia has been one of the two largest suppliers of wheat to Ethiopia. Since the 2021/22 season, Russian exporters have supplied the country with around 891,000 tonnes of wheat, including 178,000 tonnes in the 2025/26 season; in 2024, the volume of supplies exceeded 400,000 tonnes. In the first nine months of 2025 Russia exported around 200,000 tonnes of agricultural products to Ethiopia, worth more than $48 million, with wheat accounting for 99.9 per cent of this volume. Such supplies help to stabilise retail prices and ensure the availability of staple foods.

Mineral fertilisers play an equally significant role: in 2025, they accounted for the bulk of bilateral trade. Stable access to fertilisers is one of the factors that has made Ethiopia’s agricultural boom possible. At the same time, trade is becoming increasingly balanced: in 2025, supplies of Ethiopian coffee to Russia increased 2.6-fold – to $123.3 million, or 18,300 tonnes. Russia supplies fertilisers, grain, agricultural machinery and energy equipment, whilst Ethiopia supplies coffee, flowers and textiles.

Modernisation of agricultural processing

The next stage of development involves a shift from supplying raw materials to their deep processing within the country. This requires a comprehensive modernisation of the agricultural processing sector: the supply of modern equipment for flour milling, animal feed and food production facilities; storage technologies; quality control systems; and the development of logistics infrastructure – grain silos, warehouses and transport networks. Uninterrupted supplies of equipment and after-sales support enable enterprises to operate consistently, whilst the establishment of joint ventures allows them to produce goods with high added value.

The economic impact of such a transition is significant. Given that the majority of Ethiopia’s population consists of young people, local agricultural processing is becoming one of the main tools for creating skilled jobs. The development of a national processing industry broadens the tax base and enables capital to remain within the country, rather than being transferred to foreign manufacturers of finished products. Genuine food self-sufficiency is achieved not only by growing or importing grain, but also by the ability to independently transform it into end products.

Agricultural technologies as a response to climate challenges

Ethiopian agriculture is heavily dependent on weather conditions, and seasonal droughts remain one of the main risks for farmers. The introduction of advanced Russian agricultural technologies and drought-resistant wheat varieties is a practical response to these challenges. Joint research and the exchange of genetic resources make it possible to select varieties adapted to local soils and climates, and to increase yields even during unfavourable seasons. This is a tool for unlocking the potential of the food system not only in Ethiopia, but across the entire region.

Workforce for the agro-industrial sector

Technology only delivers results when used by trained specialists. The modern agro-processing sector requires engineers, process engineers, and specialists in equipment, storage, logistics and quality control. Educational cooperation between Russia and Ethiopia is developing rapidly: the Russian educational quota for Ethiopia has tripled over the past two years; more than 60 Ethiopian postgraduate students have studied at Russian universities in the fields of clinical medicine, construction, chemical technology, materials science and computer science; and in 2025, three new Russian educational centres opened in Addis Ababa. Aligning technology transfer with staff training ensures the systematic transfer of expertise to Ethiopian specialists.

Prospects for a strategic partnership

Russian-Ethiopian agro-industrial cooperation is structured as a coherent chain: stable supplies of grain and fertilisers ensure basic food security; investment and equipment establish domestic processing; agricultural technologies and drought-resistant varieties enhance the sustainability of farming; and staff training enables Ethiopia to manage new production facilities independently. The development of processing capacity, in turn, increases demand for a reliable energy supply and irrigation systems, opening up new avenues for cooperation in the water and energy sectors.

This approach is in line with Ethiopia’s own strategy – to reduce dependence on imports, increase added value and strengthen food sovereignty. Russia, whilst respecting the country’s right to determine its own path of development, offers not one-off supplies but a long-term partnership. On the eve of the Third Russia–Africa Summit, this makes Russian–Ethiopian relations one of the most substantial examples of strategic partnership on the continent.

China Southern Launches New Guangzhou–Addis Ababa Route

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China Southern Airlines has launched a new air route connecting Guangzhou and Addis Ababa, providing a direct air link between Ethiopia and one of China’s major commercial and manufacturing centres.

The airline’s inaugural flight, CZ8095, arrived at Addis Ababa Bole International Airport on October 12 carrying 224 passengers, marking the start of the Guangzhou–Changsha–Addis Ababa service.

The new route is currently the only service to Ethiopia operated by a Chinese airline, according to China Southern Airlines.

The inaugural flight was welcomed at Bole International Airport with a traditional water salute. Representatives of the Chinese Embassy in Ethiopia, Ethiopian government institutions, Ethiopian Airlines, the airport and Ethiopian media attended the welcoming ceremony.

The service will operate twice a week, on Mondays and Fridays, using Boeing 787 wide-body aircraft.

The return flight, CZ8096, is scheduled to depart Addis Ababa for Guangzhou, via Changsha. The airline said flight schedules are subject to change and passengers should check the latest information before travelling.

Airbus forecasts 150% rise in per capita Air travel in Ethiopia

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Ethiopia’s per capita air travel is projected to increase by 150 percent over the next two decades, while the country’s origin-and-destination passenger traffic is expected to grow nearly sixfold between 2025 and 2045, according to Airbus’s Global Market Forecast (GMF) 2026.

The projections highlight Ethiopia’s growing importance in Africa’s aviation industry, as rising demand for air connectivity, economic expansion and demographic changes are expected to reshape the continent’s air transport market.

Airbus forecasts that passenger traffic to, from and within Africa will nearly triple over the next 20 years, expanding at an annual compound growth rate of 4.9 percent. The continent is expected to require 1,640 new passenger aircraft by 2045, including 1,310 single-aisle and 330 widebody aircraft, reflecting the anticipated expansion of domestic, regional and international air travel.

Africa is projected to become the world’s second-fastest-growing aviation market after Asia.

The forecast identifies demographic and economic developments as major drivers of demand. Africa’s population is expected to increase by approximately 720 million over the forecast period, exceeding two billion by 2045. The continent’s middle class is projected to grow by 180 million, while its urban population is expected to expand by 450 million, reaching 47 percent of the total population.

These changes are expected to increase demand for business travel, tourism and connections between major commercial centres and emerging markets.

Ethiopia’s projected 150 percent increase in per capita air travel reflects the anticipated expansion of its aviation market. The country’s strategic location, growing urban centres and role in regional and international air transport could further strengthen its position within Africa’s aviation network.

“Aviation is one of the most powerful catalysts for Africa’s broader economic development,” said Gabriel Semelas, president of Airbus in Africa and the Middle East.

He said stronger cooperation across the aviation industry would help connect communities, facilitate regional trade and create opportunities for economic growth.

The forecast also points to the potential contribution of the African Continental Free Trade Area (AfCFTA), more flexible visa policies and expanded fifth-freedom traffic rights to the development of the continent’s aviation market. Together with investment in airport infrastructure, these measures could improve regional connectivity, facilitate trade and support tourism.

For Ethiopia, sustained growth in air travel would create opportunities for airlines, airports, tourism operators and other aviation-related businesses. However, meeting projected demand will require continued investment in airport capacity, fleet expansion, skilled personnel and efficient aviation services.

Airbus projects that newer-generation, fuel-efficient aircraft will account for 65 percent of Africa’s operational fleet by 2035, up from 30 percent in 2025.

The transition is expected to help airlines improve fuel efficiency and operational performance while responding to growing passenger demand.