To tackle the disproportionate effects of environmental crises on vulnerable populations, the Ministry of Planning and Development (MoPD) has underscored the urgent need for gender-responsive budgeting in national climate strategies.

Rahima Mohammed, a Senior Expert in Environment and Climate Change Agreements and Partnerships at the MoPD, noted that while Ethiopia has strong policy frameworks, a significant gap exists in the practical implementation and funding of gender-inclusive climate programs.

Ethiopia has been a proactive leader in climate policy since the establishment of the Climate Resilient Green Economy (CRGE) strategy in 2011.

This commitment was further solidified by the 2019 National Adaptation Plan (NAP) and the updated Nationally Determined Contributions (NDC) document.

According to Rahima, these foundational documents are not gender-blind; they include gender analyses that acknowledge the disproportionate impact of climate extremes on women.

“Climate change affects biodiversity and the economy, but the damage ultimately impacts human lives,” Rahima emphasized during a panel discussion.

She highlighted that women often shoulder the burden of unpaid domestic work and reproductive responsibilities, facing significant obstacles in accessing climate information and resources.

This call to action emerged during a recent research validation workshop organized by the Forum for Social Studies (FSS), where experts and policymakers examined the intricate connections between gender equality, climate change, and nutrition.

The Ministry’s analysis indicates that climate change diminishes agricultural productivity, leading to increased food insecurity—a situation that heavily impacts women, who are the primary providers in rural households.

Despite most government offices having gender departments or desks, these often function without independent or adequate budgets.

Rahima revealed that the MoPD, in partnership with the Ministry of Finance and the Ministry of Women and Social Affairs, is exploring the development of “Gender Budgeting” models.

“To achieve gender equality, we must first ensure gender equity,” she explained. “This requires affirmative action and specific budget allocations to prioritize women in climate resilience efforts. We are currently studying pilot programs to provide targeted financial support.”

Selam Esayas, representing the GCAN Project, presented a paper at the workshop that highlighted various challenges faced by Civil Society Organizations (CSOs) and government agencies.

A primary concern is the “awareness gap” among leaders, as many struggle to grasp the practical intersections of climate change, gender, and nutrition.

Selam also noted a decline in “gender expertise.” Although “gender mainstreaming” was a prominent topic in recent years, the technical capacity to coordinate, implement, and evaluate these initiatives has waned. Additionally, there is a shortage of professionals who can integrate health, agriculture, and environmental sciences. “We need not just gender or climate experts, but professionals capable of bridging these sectors,” Selam stated.

This is especially crucial as Ethiopia works to implement “Climate-Smart Agriculture,” which necessitates a comprehensive understanding of environmental science and social dynamics.

The researcher also raised the issue of translating evidence into practice. Despite the existence of high-quality studies, there is no central plan or platform to collectively share these findings, leading to institutions operating in silos and duplicating efforts instead of learning from one another.

As Ethiopia prepares to host the 32nd United Nations Climate Change Conference (COP 32), the need for gender-inclusive climate action is more pressing than ever.

The Ministry has confirmed that committees have been established to oversee the preparations, with a significant agenda item being the “Gender Action Plan” (GAP). Ethiopia previously launched its own National Climate and Gender Action Plan during the second Africa Climate Summit. Participants emphasized the importance of standardized toolkits and awareness programs to help decision-makers understand the practical links between gender, nutrition, and climate.

The Association of Ethiopian Microfinance Institutions (AEMFI) has requested additional time for its member institutions to comply with share registration requirements under Ethiopia’s new capital market framework.

The request was submitted in response to registration obligations introduced under the country’s Capital Market Proclamation and related directives, which require companies with publicly held securities to register them with the Ethiopian Capital Market Authority (ECMA).

AEMFI officials say many microfinance institutions are still completing the legal and technical preparations necessary to meet the requirements.

Teshome Kebede, Executive Director of AEMFI, told Capital that although the capital market framework applies to all share companies, several microfinance institutions are still finalizing prospectuses and other documentation required for registration.

“Because sufficient preparations had not been completed, we submitted a request for an extension of the deadline,” he said.

According to Teshome, the Association has taken steps to support member institutions through the process. Under its coordination, transaction advisors have been competitively selected and engaged to assist microfinance institutions in preparing the necessary legal and financial documentation.

As an umbrella body representing the sector, AEMFI is also helping institutions work with consultants specializing in capital market readiness to ensure compliance with regulatory requirements.

Several institutions are currently submitting draft documents for review by consulting firms, with the expectation that final submissions will be made to the ECMA once the documentation process is completed.

Under Article 29 of the Public Offering and Trading of Securities Directive (No. 1030/2024), companies with publicly held securities issued before the directive came into force are required to register those securities with the ECMA. The original deadline for registration expired on November 25, 2025.

Earlier this year, the Authority issued a notice warning companies that had not yet completed the registration process to do so within a final grace period, cautioning that further delays could trigger administrative measures.

Meanwhile, AEMFI has also announced preparations for an international conference aimed at discussing the future of microfinance.

The event, titled “Next-Generation Microfinance: Unlocking Opportunities through Innovation, Inclusion, and Robust Financial Services,” will take place from March 24–26, 2026, at the United Nations Economic Commission for Africa Conference Center in Addis Ababa.

Teshome said the conference will examine how the sector can adapt to a rapidly changing financial environment shaped by digital transformation, climate-related risks, and global economic shifts.

“Over the past decades, microfinance has played a significant role in supporting low-income households, smallholder farmers, women, and youth,” he said. “But the sector now needs to evolve to meet new challenges.”

According to AEMFI, the discussions will focus on how technology and financial innovation can expand access to affordable financial services, particularly for rural communities.

The conference is being organized in collaboration with the European Union and the International Fund for Agricultural Development.

Policymakers, regulators, researchers, and financial sector leaders are expected to participate in the three-day event, which will address issues such as strengthening agricultural finance and building resilient financial institutions.

“Microfinance is not just about loans,” Teshome said. “It is about creating opportunities and building the capacity of communities.”

Ethiopian Airlines Group has announced plans to open four new domestic airports within the next two months. CEO Mesfin Tasew shared with Capital that this initiative aims to streamline domestic flights, enhance accessibility to regional cities, and boost Ethiopia’s socio-economic growth.

The airports under construction in Negele Borena, Gore Mettu, Mizan Aman (Mizan Teferi), and Debre Markos are nearing completion.

Once operational, the airline will increase its domestic destinations from 23 to 27.

Mesfin emphasized that this expansion is not just a commercial strategy but a national responsibility. As the only provider of regular domestic flight services in Ethiopia, millions depend on the airline for business, mobility, and emergency services.

The airline believes that air transport is a vital catalyst for socio-economic development, and expanding domestic operations is seen as a significant national obligation.

He highlighted that the new airports will create access for citizens who have previously lacked air transport options. The airline is making substantial investments in this sector, with efforts underway to modernize existing terminals, enhance security systems, and expand aircraft parking areas.

Additionally, Ethiopian Airlines plans to modernize its domestic fleet. The airline has primarily used approximately 28 Q400 turboprop aircraft for domestic flights but is now studying the acquisition of jet aircraft to gradually replace the existing fleet, aiming to improve passenger comfort, speed, and overall service quality to meet the growing demand in Ethiopian cities.

The new airports are strategically located to enhance the economic potential of their regions. Negele Borena airport is crucial for southern livestock resources and trade routes, while Debre Markos airport will serve as a key hub for agriculture and education in the Amhara region.

Gore Mettu and Mizan Aman airports will provide essential connectivity for high-altitude areas in the West and Southwest, where coffee production is prominent.

Under its “Vision 2035,” Ethiopian Airlines aims to double the number of domestic destinations in the next ten years. By investing its own capital in infrastructure, the airline seeks to ensure that geographical barriers do not hinder citizens’ growth. The opening of these new airports is anticipated to be a historic milestone for Ethiopian aviation.

Meanwhile, in response to escalating geopolitical tensions in the Middle East, which have caused airspace closures and instability in the international fuel market, Mesfin informed Capital that Ethiopian Airlines is implementing rigorous measures to maintain operations.

As Africa’s largest airline, it has begun using strategic fuel reserves and exploring alternative international suppliers to manage a 100% increase in jet fuel prices and disruptions to regional flight routes.

The conflict in the region has led the airline to suspend flights to eight countries and ten major cities in the Middle East and Gulf, including Lebanon, Israel, Jordan, Kuwait, Bahrain, Qatar, and the UAE.

The ongoing conflict has necessitated a temporary withdrawal from high-risk flight routes. Mesfin explained, “Many countries affected by the war have closed their airspace, causing most airlines to cancel regular flights to these destinations.”

Although conditions have slightly improved with limited “repatriation” flights resuming to Sharjah in the UAE and Dammam in Saudi Arabia, broader regional restrictions have affected passenger numbers.

However, the CEO remains confident in the airline’s overall safety, stating that while the current disruptions within its vast global network are “not insignificant,” they will not result in catastrophic damage.

In a historic milestone for Ethiopia’s export sector, Mohan Plc has successfully completed the nation’s first merchant trading transaction through the newly operational Dire Dawa Free Trade Zone (DDFTZ), a practice that was previously prohibited under the country’s regulatory framework.

Harsh Kothari, Chief Executive Officer of Mohan, a leading manufacturing and trading conglomerate in Ethiopia, described this achievement as transformative. He stated that it positions Ethiopia to engage in merchant trade as a service-based export activity, thereby diversifying the nation’s foreign exchange earning mechanisms.

As a pioneering investor in the DDFTZ, Mohan Plc is operating in what Harsh refers to as a dynamic commercial hub located outside Ethiopian customs jurisdiction.

“Technically, merchandise entering the zone does not constitute importation into Ethiopia, and businesses operating within the facility are treated as extraterritorial entities,” he explained.

The DDFTZ, which officially launched in August 2022, integrates banking, customs clearance, government services, and administrative operations within a single, coordinated framework, offering comprehensive operational freedoms supported by an enabling legal regime.

“Consequently, we have executed Ethiopia’s inaugural merchant trading transaction—a first in the nation’s commercial history,” Harsh stated.

He encouraged Ethiopian investors to take advantage of the facility, where administrative processes—including banking, customs clearance, licensing, and services from the Industrial Parks Development Corporation—are efficiently consolidated.

Historically, Ethiopia’s export portfolio has been limited to domestically produced agricultural commodities and manufactured goods.

“However, we can now export third-country products to international markets without utilizing local resources or importing goods into Ethiopian territory,” Harsh told Capital.

In this landmark shipment, Mohan facilitated the export of kitchenware from Spain to India, with all documentation and banking operations processed through the Dire Dawa Free Trade Zone. According to trade experts, the DDFTZ allows businesses to engage in international commerce beyond traditional domestic constraints.

“Leveraging my commercial networks, I connected a kitchenware buyer in India with a Spanish supplier. The merchandise was shipped directly from Spain to India, while all transactional documentation and financial flows were processed through Ethiopia,” Harsh explained, illustrating the merchant trade mechanism.

Through this transaction, Ethiopia effectively exported goods beyond its domestic production base. “We anticipate continuing such operations, as the government has institutionalized this framework through the DDFTZ,” he expressed with optimism.

Harsh noted that major global trading hubs—such as Dubai, Singapore, and Hong Kong—have achieved commercial prominence through merchant trade, often without relying on nearby seaports.

He characterized Ethiopia’s initiative as a significant strategic advancement, demonstrating that ongoing economic reforms are gaining momentum and positioning the nation for global competitiveness.

“This transaction carries symbolic significance as it showcases Ethiopia’s institutional capacity and its emerging global competitiveness,” he remarked.

He also highlighted the potential for expansion, including the bundling of Ethiopian commodities with foreign products. For instance, Ethiopian coffee exporters could combine beans from other regions with local production, generating revenue from products not cultivated domestically.

“Regardless of the availability of local resources, we can become suppliers of diverse products and respond to global demand across multiple categories,” the Mohan CEO asserted.

He emphasized that as recent economic reforms continue to demonstrate synergistic effects, the scope of such transactions will significantly expand.

“This achievement represents just one aspect of the extensive trading opportunities that lie ahead.” He acknowledged the crucial role of regulatory authorities, stating, “Without their institutional support and enlightened approach, this historic transaction would not have materialized.”

Ethiopian business leaders have long advocated for such trading mechanisms.

Addisu Alemayehu, a spices exporter and owner of Dabase Business Groups, recalled several instances where such schemes could have significantly benefited both his business and the national economy.

He described a past opportunity to supply a commodity that was unavailable in Ethiopia but accessible in other African nations to Asian buyers. Despite his extensive efforts, the National Bank of Ethiopia informed him that the country lacked the necessary policy for transferable letters of credit, a crucial tool for merchant trade.

“About five years ago, I secured three major contracts that required transferable letters of credit. Learning about this milestone at the free trade zone is momentous news for me and my fellow exporters,” Addisu told Capital.

He shared an example involving an Indian buyer looking for paradise seeds, a medicinal herb. After sourcing the product from Côte d’Ivoire and arranging a deal through his Addis Ababa-based company, he discovered that such transactions were prohibited under Ethiopian regulations at the time.

As a result, the transaction, which would have generated $3 per kilogram in revenue, was abandoned. A similar opportunity involving purple tea, which offered a $4 per kilogram margin, also fell through due to policy constraints.

Addisu praised the new development as a significant step forward for Ethiopia’s trade sector.

“Dubai has become a global trading hub, and Ethiopia could follow a similar path within Africa. We have built strong relationships with commodity buyers over the years, and with other African nations now producing goods that Ethiopia was historically known for—such as sesame seeds—we can leverage these networks for exports under this new framework,” he explained.

He urged government authorities to promote the new system widely, allowing exporters to use their international connections to generate foreign currency through service-based trade, managing documentation and transaction flows. “In my view, this scheme should not be limited to Dire Dawa,” he emphasized.

Merchant trade, also known as intermediary trade, involves a business purchasing goods from a supplier in one jurisdiction and selling them to a buyer in another, with the merchandise shipped directly from the supplier to the buyer—never entering the intermediary’s domestic territory. This business model enables companies to take advantage of global market opportunities without utilizing domestic resources.