Thursday, April 23, 2026
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UAE, Ethiopia deepen trade ties to protect supply chains

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The United Arab Emirates (UAE) has unveiled a series of regional logistics and customs reforms aimed at protecting African markets, including Ethiopia, from the current maritime instability.

​A high-level coordination meeting held this week in Dubai, led by the Emirates and involving the country’s maritime authorities as well as international shipping organizations, resulted in a strategy specifically designed to ensure the continuity of import and export trade for corridor-dependent African economies amid disruptions in the Red Sea. ​This high-level coordination meeting was hosted at the headquarters of the Ports, Customs and Free Zone Corporation (PCFC) in Dubai.

The meeting brought together officials from the UAE, shipping companies and maritime authorities to address bottlenecks affecting cargo movement across the Gulf and the Horn of Africa. UAE officials described the relationship with Ethiopia as extending beyond diplomacy into a strategic economic partnership with direct implications for trade resilience.

The UAE has become one of Ethiopia’s most important economic partners in recent years. Since 2018, it has provided close to $3 billion in loan and investment support, while more than 113 UAE-backed projects are currently active in Ethiopia, with an estimated value of $2.9 billion. Trade between the two countries also exceeded $6 billion in 2023, underscoring the scale of their commercial links.

Officials said the 2024 currency swap agreement between the National Bank of Ethiopia and the Central Bank of the UAE helped ease foreign exchange pressures, but stressed that maintaining the physical flow of goods remains just as important for economic stability. Trade resilience, they said, now depends on both financial cooperation and secure logistics.

At the center of the discussion was the UAE’s “Green Corridor,” a fast-track customs and logistics channel designed to speed up cargo clearance and reduce delays. Dubai Customs Director General Abdullah Busenad said the Emirates is expanding the system to Saudi Arabia and Oman as part of broader efforts to improve regional supply chain efficiency.

The UAE is also relying on alternative maritime gateways, including the ports of Fujairah and Khor Fakkan, to reduce exposure to disruptions in sensitive sea routes. Officials said integrating these ports with land and rail transport has helped create more flexible and reliable trade routes for partners such as Ethiopia.

Executives from international maritime organizations said the UAE’s policy flexibility has helped offset rising transport costs and keep goods moving in a difficult global environment. UAE Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi said the goal is to build a more connected and resilient trade system that ensures strategic commodities reach Ethiopia without interruption.

Ethiopia, Russia plan local satellite assembly and testing center

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Ethiopia is planning to build a local satellite assembly, integration and testing center with Russian support in a move officials say could help shift the country from relying on foreign technology to becoming a regional space hub.

The Ethiopian Space Science and Geospatial Institute said the proposed facility would enable Ethiopian engineers to design, assemble and test satellites on home soil, reducing the need to send equipment abroad for critical technical work. The announcement was made during a Cosmonautics Day commemoration held with the Russian Embassy in Addis Ababa.

Institute Director General Abdisa Yilma said the project forms part of Ethiopia’s wider ambition to expand its role in space science and aerospace technology over the next decade. He said the country does not want only to use satellites, but to build and verify them locally.

Ethiopia has already entered the space sector with its first satellite, ETRSS-1, launched in 2019. But officials say the next phase of the program will focus on local capacity-building and the development of domestic expertise in satellite technology.

The planned center is expected to be developed in cooperation with the Russian government, with discussions ongoing between the Ethiopian institute and Russia’s state space corporation, Roscosmos, on technical and financial arrangements. Officials say the facility would combine Russian technical experience with Ethiopian scientific capacity.

Russian Ambassador to Ethiopia Evgeny Terekhin said Moscow is ready to share its experience in space science and technology. He said the partnership reflects a broader spirit of cooperation and pointed to Russia’s long history in space exploration as a source of expertise for Ethiopia.

Officials said the proposed center could deliver both scientific and economic benefits. Ethiopia plans to launch ten new satellites by 2035, and local assembly would reduce foreign currency spending while strengthening national capabilities in areas such as crop monitoring, disaster prevention, climate data and communication systems.

The facility could also open a new revenue stream by offering satellite services and testing capacity to neighboring countries. In addition, Russia has pledged support for training Ethiopian professionals in advanced scientific and technical fields.

The event was held to mark Cosmonautics Day, which commemorates Yuri Gagarin’s historic 1961 flight as the first human in space. Officials said the anniversary serves as an inspiration for younger generations and reflects the ambition behind the proposed Ethio-Russian partnership in space technology.

Asella Wind Farm inaugurated, €145 million project will pay back in two years

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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 urged to strengthen resilience, attract private capital as regional shocks intensify

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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.