Wegagen Capital Investment Bank (WCIB), Ethiopia’s first licensed private investment bank, announced plans to expand its services into wealth and portfolio management, alongside launching environmental, social, and governance (ESG)-aligned and Shariah-compliant financial products. This strategic move marks a new phase in WCIB’s commitment to fostering a diverse, modern, and inclusive capital market in Ethiopia.

In its first public performance report for the financial year ending June 30, 2025, WCIB highlighted its rapid development since launching operations in March 2025 with a paid-up capital of 385 million birr. The bank has already established itself as a key player in Ethiopia’s financial transformation, notably playing an instrumental role as the inaugural trading member of the Ethiopian Securities Exchange (ESX) during its live trading launch.

Aklilu Wubet, Chairperson of WCIB’s Board, described the initial period as a testament to the bank’s institutional strength and its foundational role in Ethiopia’s emerging capital market. The bank’s opening services include facilitating private placements for growth-oriented companies, offering advisory services for public share sales, and corporate advisory on share registration and restructuring.

To date, WCIB has opened 37 investment accounts serving clients across banking, real estate, and insurance sectors, signaling strong market acceptance. CEO Brutawit Dawit noted the bank’s focus on building sustainable, long-term growth foundations, reflected in a revenue of 7.9 million birr against operational costs of 22.4 million birr during this early phase.

Strategic investments include fixed assets, comprehensive staff training, and the recruitment of experienced foreign professionals to address Ethiopia’s limited domestic expertise. Robust internal compliance and risk management frameworks have been established, aligned with national regulations.

Looking ahead, WCIB’s management expressed confidence in achieving profitability next financial year, buoyed by strong initial performance and an expanding client base. The bank’s strategic priorities are well positioned to leverage Ethiopia’s promising economic growth, projected at 6.6% for 2024/25 and 8.4% for 2025/26, which drives demand for innovative financing solutions.

Aligned with market forecasts indicating capital market growth from 537 billion birr to over 959 billion birr by 2028—and over 500 million birr mobilized for climate investment in 2024 alone—WCIB plans to capitalize on domestic and diaspora savings. This includes developing institutional investment products, bringing international expertise to local markets, and forging strategic partnerships regionally and internationally.

Brutawit emphasized, “WCIB is more than a financial institution; it is committed to unlocking opportunities, shaping a vibrant capital market, and laying the foundation for inclusive and sustainable economic growth.” Despite challenges inherent to an emerging sector, the bank’s trajectory is vital to Ethiopia’s broader economic transformation.

WCIB’s paid-up capital stood at 385 million birr at licensing in March 2025, with current assets reported at approximately 387.8 million birr and liabilities of 374.8 million birr, underscoring a solid financial base for future expansion.

The Ministry of Finance (MoF) has suspended a tax authority decision that would have required fruit drink manufacturers to settle years of unpaid excise tax, stemming from a regulation enacted six years ago.

This issue emerged two years ago when the Ethiopian Food and Drug Authority clarified to the Ministry of Revenue (MoR) that a packaged beverage must contain at least 30 percent fruit concentrate or pulp to qualify as fruit juice. As a result, the MoR mandated that manufacturers register for excise tax and pay the amounts that had not been collected from consumers over the previous four years, dating back to the 1186/2020 excise proclamation. The directive also required manufacturers to pay penalties and interest on these outstanding tax amounts.

In a letter issued last week, the MoF expressed concern that the MoR’s decision had severely impacted manufacturers, creating significant financial strain. The letter stated, “It forced several producers to close their businesses, while similar imported products are not subject to the same tax, harming the competitiveness of local manufacturers.” This action followed a formal complaint from the Ministry of Industry (MoI) received by the MoF in April.

Dated September 22 and signed by former State Minister Eyob Tekalign (now Governor of the National Bank of Ethiopia), the MoF letter emphasized that it was unfair to burden manufacturers with accrued taxes that had not been collected from consumers due to ambiguous legal language. The letter indicated, “Pending a permanent solution by the relevant authorized body, the enforcement of this decision has been temporarily halted.”

This new decision follows a year of negotiations. Initially, the MoF insisted that manufacturers settle the tax, albeit without penalties or interest, but manufacturers cited their inability to pay. The government also provided an option for installment payments.

With support from the MoI, the regulatory body’s latest decision has pleased manufacturers. The MoF clarified that manufacturers are now only required to pay excise tax on products sold after the MoR’s implementation letter was released in November 2023.

Ashenafi Merid, General Manager of the Ethiopian Beverages Manufacturing Industries Association, expressed gratitude for the understanding and support from the Industry and Finance ministers in making this significant decision. He reflected on the nearly two-year struggle, stating, “It is a big relief for the sector.”

Ashenafi noted that the demand for payment of the accrued tax had severely impacted domestic juice producers, forcing nearly all to halt production. He pointed out that only a few foreign-based investors managed to continue operations.

Reports indicated that manufacturers were, on average, being asked to pay approximately 70 million birr in back taxes.

“We hope that the manufacturers will rehire their employees and resume operations soon,” the association head added with optimism.

The Ministry of Water and Energy (MoWE) has strongly dismissed recent accusations from Egypt concerning the Grand Ethiopian Renaissance Dam (GERD), labeling them as baseless and full of contradictions.

The Ministry underscored that historical data on the Blue Nile’s flow before the dam’s construction compared to the current regulated flow clearly disproves Egypt’s assertions.In an official statement released today, the MoWE highlighted that falsehoods have become a persistent trait in Egyptian institutional communications about the GERD and the Nile River.

It criticized the latest statement from Egypt’s Ministry of Water Resources and Irrigation as being filled with misrepresentations easily refuted by factual analysis.The Ministry pointed to 93 years of flow data from Sudan, noting that prior to the GERD, peak flood volumes could exceed 800 million cubic meters per day in August and 750 million cubic meters per day in September. In contrast, the dam’s regulated daily releases in August and September 2025 were significantly lower at 154.7 million and 472 million cubic meters respectively.

MoWE emphasized that the GERD has thus substantially reduced peak flood magnitudes, protecting communities downstream from the severe damage historically caused by these floods. The regulated flow from the dam, the Ministry explained, benefits lower riparian countries by mitigating catastrophic flooding during the heavy rainy season.

The Ministry also argued that without the GERD, recent heavy rains in Ethiopia’s highlands would have caused historic destruction in Sudan and Egypt. It stressed that these countries now benefit from more stable water flows year-round thanks to the dam.Notably, the Ministry criticized Egypt’s “patronizing tone” and its attempt to speak on behalf of other countries, which it said is contradicted by Sudanese officials.

Sudan’s Ministry of Agriculture and Irrigation has attributed recent floods primarily to increased flows from the White Nile—unconnected to Ethiopia—and to damage from ongoing conflict worsening flood impacts.By disregarding these facts, Ethiopia said, Egypt unfairly blames Ethiopia in a bid to mislead the international community and craft a false narrative of victimhood.

The Ministry reiterated Ethiopia’s commitment to pursuing its development goals while maintaining cooperation frameworks with Sudan for data sharing and expert collaboration.Ethiopia underlined that the GERD has prevented what could have been catastrophic floods in Sudan amid this year’s heavy rainfall.

The country vowed to continue upholding professional standards in the dam’s operation and rejected the “false accusations and defamatory” claims from Egypt.The statement concluded by urging Egyptian authorities to abandon their outdated notions of hydro-hegemony over the Nile and embrace cooperative approaches for shared prosperity among Nile Basin countries.

It hailed the GERD as a source of pride for Ethiopia, the Nile Basin, and continental African development, asserting that Africa’s rise will not be hindered by clinging to “historic rights” rooted in colonial-era thinking.This response from Ethiopia comes amid ongoing tensions over the GERD’s impact on downstream nations, highlighting deep divisions but also opportunities for dialogue and cooperation on Nile water management.