The Ethiopian Electric Power (EEP) has announced that the second phase of the Aysha II Wind Farm is expected to be completed in less than a year, marking a significant milestone for one of the country’s most efficient renewable energy projects.

The first phase of the project was inaugurated recently in the presence of regional leaders, including Prime Minister Abiy Ahmed, Somali President Hassan Sheikh Mohamud, and Djibouti President Ismail Omar Guelleh.

Samson Tadesse, Project Manager for Aysha II at EEP, said most preparations for the second phase are already in place. The wind turbines have arrived at the site, while towers and other essential equipment are currently being shipped from China. Transporting the materials and completing installation at the site—located less than 40 kilometers from Djibouti and 30 kilometers from the Somaliland border—will be the main tasks remaining. Once complete, the second phase will contribute an additional 40 megawatts to the national grid. Foundation work for the turbine towers has already been finalized.

The Aysha II project, designed entirely by EEP, initially secured financing from the Export-Import Bank of China. However, disbursements were suspended over concerns about Ethiopia’s rising debt levels, prompting EEP to fund and complete the project using its own resources.

Located about 670 kilometers east of Addis Ababa near an international transmission line connected to Djibouti, the wind farm is considered a strategic asset with strong potential for regional energy exports. The original financing agreement, signed nearly a decade ago, had the Chinese Exim Bank covering 85 percent of costs, with the Ethiopian government responsible for the remaining 15 percent. According to Moges Mekonnen, Head of Corporate Communication at EEP, only 40 percent of the promised funds were ever released.

Despite these financial challenges, the wind farm began generating power three years ago. The first phase, now fully operational, contributes 80 MW toward the total installed capacity of 120 MW. The funding delays left the Chinese contractor, Dongfang Electric Corporation, to continue work without consistent payment, until EEP stepped in to complete the project independently.

The facility comprises 48 turbines, each with a 2.5 MW capacity, at an estimated total cost of USD 257.3 million. Situated in the Sitty Zone of the Somali Region, about 170 kilometers east of Dire Dawa, the wind farm is expected to generate significant foreign currency through energy exports to Djibouti, which already imports Ethiopian renewable energy.

Dongfang Electric Corporation brought extensive experience to the project, having previously contributed to multiple electromechanical and hydropower initiatives across Ethiopia. The official inauguration of the first phase held on January 31 underscored the project’s regional significance and Ethiopia’s commitment to expanding its renewable energy capacity.

In a related development, Ethiopian Investment Holdings, the parent company of the EEP, reviewed the power generator’s performance for the first half of the fiscal year at the end of last week.

During the six-month period, EEP reported a profit of 7.1 billion birr, while its foreign currency earnings surged by 138 percent.

The company supplied 20.6 billion birr worth of electricity to the Ethiopian Electric Utility, along with two billion birr to large industries, 220 million birr to the Railway Corporation, and 180.2 million dollars to the data mining sector.

According to EEP CEO Ashebir Balcha, the company’s total foreign currency earnings during the period amounted to 248 million dollars, generated from both electricity exports and data mining services.

In the first half of the budget year, power production reached 18.3 terawatt-hours, marking a 35 percent increase compared to the same period last year and achieving 90.4 percent of the target.

The Grand Ethiopian Renaissance Dam contributed 51 percent of the total electricity generated during this period.

Amhara Bank reported strong financial performance during the first eight months of the 2025/26 fiscal year, posting a profit before tax of 1.82 billion birr—a 178 percent increase compared with the 655 million birr it recorded during the entire previous fiscal year.

In a press statement issued Thursday, the Bank attributed the performance to steady operational growth and expanding market presence in Ethiopia’s increasingly competitive banking sector.

Total assets climbed to 53 billion birr, rising by nearly 10 billion birr from the 43.4 billion birr reported on June 30, 2025. Customer deposits also expanded significantly, reaching 37.9 billion birr as of February 28, 2026, up from 31.5 billion birr eight months earlier.

The Bank also reported improvements in the quality of its loan portfolio. Its non-performing loan (NPL) ratio declined to 4.9 percent, aligning with regulatory requirements and broadly reflecting industry averages. Over the same period, strengthened credit monitoring and recovery measures enabled the Bank to collect more than 9.9 billion birr in outstanding loans.

Digital financial services have also expanded. According to the statement, the Bank has disbursed over 5.1 billion birr in microloans through its digital platforms, benefiting more than 240,000 customers. Nearly 90 percent of the borrowers are women, highlighting the Bank’s efforts to promote financial inclusion.

In addition, customers can now transfer up to one million birr through the Bank’s mobile banking platform, reflecting ongoing upgrades to its digital service capabilities.

The latest figures underline Amhara Bank’s rapid growth as one of the newer entrants in Ethiopia’s banking industry, as it continues to expand its balance sheet, improve loan quality, and broaden access to digital financial services.

Amid escalating conflicts in the Middle East and the Red Sea region—disruptions that have severely affected global maritime transport corridors—Ethiopian Shipping and Logistics (ESL) says its fleet continues to operate at full capacity.

While many international shipping companies have resorted to cancelling routes and sharply increasing freight rates, Ethiopia’s national carrier is maintaining services by leveraging diplomatic relations and its strategic position to ensure the continuity of the country’s import and export trade.

A senior ESL official told Capital that while several global shipping giants have diverted vessels—leading to extended transit times of several months—Ethiopian vessels continue to navigate key trade routes, effectively filling the logistics gap created by the crisis.

The Red Sea and the Gulf of Aden have become high-risk zones, placing significant pressure on the maritime industry. Following the outbreak of conflict in the Middle East, major carriers such as Maersk have rerouted vessels around the Cape of Good Hope in South Africa—a detour that adds weeks to voyages and millions of dollars in additional costs.

For Ethiopia—which conducts more than 95 percent of its international trade through the Port of Djibouti—such disruptions pose significant risks. Yet ESL says it has adopted a different strategy.

“As a matter of policy, we do not operate in zones of direct active conflict,” the ESL source explained. “However, while many international carriers have suspended services on certain routes, we have not closed any. Our vessels remain operational, and there has been no interruption.”

The official added that the company is stepping into routes and markets vacated by other carriers to support Ethiopian exports. “Our objective is to bridge the gap, not to withdraw,” he said.

Ethiopia’s longstanding diplomatic ties have also helped safeguard its maritime operations. “Thanks to the strength of our diplomatic engagement, there is no direct threat of attack on our vessels,” the source said. “We are using this advantage to help fill the void in the market.”

According to the official, the company is also introducing new procedures to ensure the timely delivery of essential imports. As international shipping lines withdraw from regional routes, freight rates have surged globally while delivery times have lengthened considerably.

“Many Ethiopian importers continue to rely on other carriers largely due to a lack of information,” the official noted. “If they were fully aware of our services, many would opt for the national carrier.”

Under Ethiopia’s multimodal transport framework, most imports are required to be processed through the national system operated by ESL unless the Ministry of Transport and Logistics (Ethiopia) grants a waiver. Recently, however, six public and private enterprises received licenses to participate in multimodal transport operations, handling cargo from ports of entry to warehouses across the country.

“In the current environment, we are not only more cost-competitive but also significantly faster,” the official said. “While some carriers are taking three to four months due to rerouting, we are delivering cargo within 30 to 31 days.”

According to the International Monetary Fund, Ethiopia’s economy is projected to grow by around 7.2 percent in 2026. Efficient and reliable cargo movement plays a critical role in sustaining that growth by helping contain inflation, streamline supply chains, and strengthen export competitiveness.

ESL officials say the company is prioritizing domestic cargo despite rising global operational costs.

“This is not the time to turn customers away,” the source said. “Ethiopian cargo remains our top priority.” He added that the company is absorbing higher fuel and operating expenses internally in order to avoid passing steep price increases on to local traders.

Meanwhile, developments on land are also strengthening Ethiopia’s logistics network. In February 2026, Ethiopia and regional partners signed an agreement to establish the DESSU (Djibouti–Ethiopia–South Sudan–Uganda) Corridor Management Authority, a multilateral initiative backed by the African Development Bank. The project aims to connect the Red Sea to the Great Lakes region, reduce transport costs, and streamline trade procedures.

At the same time, Ethiopia is expanding the use of the Ethio‑Djibouti Railway to ease pressure on road transport and maritime logistics. In February, a pilot project launched by Abiy Ahmed saw 120,000 liters of diesel transported by rail for the first time.

The 753-kilometer railway corridor is increasingly viewed not only as transport infrastructure but also as a strategic backbone for Ethiopia’s economic growth.

By shifting fuel and other bulk cargo from road to rail, officials say the country is gradually reducing logistics costs while easing congestion at ports and border crossings.