Wednesday, October 14, 2026
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Agricultural bank set to begin operations within three months

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Ethiopia’s planned Agricultural Bank is expected to begin operations within the next three months, providing a dedicated source of financing for farmers and businesses in the agricultural sector, according to the Ministry of Agriculture.

Shimelis Tsegaye, Executive Director of Agricultural Mechanization at the ministry, told Capital that the lack of a specialised financial institution remains one of the major obstacles to modernising the country’s agriculture.

Agriculture contributes about 33 per cent of Ethiopia’s gross domestic product (GDP), but banks provide only around two per cent of the estimated 2.5 trillion birr needed each year to finance the sector, according to figures cited by the ministry.

Under the 10-year National Agricultural Finance Implementation Roadmap, the government plans to mobilise up to one trillion birr to expand agricultural financing.

Farmers and agricultural businesses have struggled to secure loans from existing financial institutions because of collateral requirements and demands for advance payments. The planned bank is expected to improve access to finance by allowing borrowers to use assets such as crops, livestock and other property as collateral.

Shimelis said financing was particularly important because of the high cost of agricultural machinery. Dairy mechanisation equipment can cost between 4 million and 15 million birr, while combine harvesters can cost as much as 30 million birr. Many farmers and agricultural businesses cannot afford such equipment without financial support, he added.

The Agricultural Bank is in the final stages of preparation and is being established as a state-owned institution under the guidance of the National Bank of Ethiopia. Shimelis declined to provide further details about its name, initial capital or planned service-delivery arrangements.

Meanwhile, preparations are under way to establish six agricultural mechanisation service centres in high-potential farming areas, with financial support from the African Development Bank.

According to Shimelis, the centres will be located in Bale and Salale in Oromia; areas around Bahir Dar and Erikum in Amhara; and sites in the Afar and Somali regions. The six centres are expected to cost a total of one billion birr.

The centres are intended to help young people establish businesses focused on agricultural machinery assembly and services. They are also expected to provide farmers with training in equipment use, maintenance and repair, as well as access to spare parts.

The ministry plans to establish 250 agricultural mechanisation service centres over the next decade. Nine are currently operational, while six others are reportedly under construction.

The planned Agricultural Bank and mechanisation service centres form part of broader efforts to improve farmers’ access to agricultural technology and finance—two longstanding challenges to raising productivity and modernising production.

Zemen Bank reports 31.9% asset growth, 15% rise in profit

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Zemen Bank S.C. reported a 31.9 per cent increase in total assets to 116.5 billion birr and a 15 per cent rise in net profit to 6.75 billion birr for the fiscal year ended June 30, 2026.

The bank said the results came amid tight monetary conditions and wide-ranging regulatory reforms.

The National Bank of Ethiopia maintained a policy interest rate of 15 per cent and a 24 per cent cap on credit growth. Zemen Bank’s credit volume nevertheless rose by 24.6 per cent to 51.7 billion birr.

The bank’s non-performing loan ratio stood at 2.48 per cent, below the regulatory limit of 5 per cent and its own internal threshold of 4 per cent.

Chief Executive Officer Dereje Zebene said operating income increased to 14.24 billion birr from 12.13 billion birr in the previous fiscal year. Net interest income contributed 6.57 billion birr, while service charges and commissions generated 5.04 billion birr.

The bank reported gross profit of 9.97 billion birr, an increase of 9.7 per cent, and net profit after tax of 6.75 billion birr.

Zemen Bank recorded a return on average equity of 37.8 per cent and a return on average assets of 6.6 per cent. Earnings per share reached 539 birr.

Paid-up capital rose by 52 per cent to 14.29 billion birr, while total capital increased by 40.8 per cent to 25.9 billion birr. The bank’s capital adequacy ratio reached 40 per cent, well above the minimum regulatory requirement of 8 per cent.

Total deposits grew by 32 per cent to 85 billion birr. The bank said the removal of the mandatory 7 per cent minimum deposit-interest rate had allowed interest rates to be set according to market conditions.

Zemen Bank expanded its physical network to 142 branches and increased its customer base to nearly 395,000.

The bank reported 256,249 internet and mobile banking subscribers, who completed more than 1.45 million transactions worth over 22.2 billion birr. Under its omni-channel strategy, the bank expanded its ATM network to 385 terminals. These processed 2.44 million domestic transactions valued at 4.61 billion birr, as well as more than 109,000 international transactions.

At its annual general shareholders’ meeting last week, the bank also reported mobilising US$698 million in foreign-exchange revenue during the fiscal year.

The board and executive management are using an agile framework to prepare the bank’s next strategic plan. The bank identified human-capital development, cybersecurity, digital trust and readiness for a more open and competitive financial sector as key priorities.

Ethiopia’s growth outlook strengthens, but jobs and living costs remain key challenges

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Ethiopia’s economic growth outlook has improved as reforms, investment and a stronger business environment support activity beyond traditional sectors, but the country still faces major challenges in translating growth into jobs, lower living costs and broader improvements in household welfare.

According to the 2026 African Economic Update ‘Building AI Readiness’ report by the World Bank, it is expected that growth in Sub-Saharan Africa to rise to 4.3 per cent in 2026, with Ethiopia among the countries receiving an upward revision to its growth forecast. The World Bank attributes the stronger outlook to improved macroeconomic conditions and reforms intended to strengthen the business climate, expand infrastructure, deepen market integration and attract private investment.

Ethiopia has pursued a wide-ranging reform programme in recent years, including exchange-rate changes, fiscal adjustment, efforts to improve foreign-exchange market functioning and measures to encourage private-sector participation in the economy. Supporters of the reforms argue that they can help address long-standing constraints on investment, exports and access to foreign currency.

However, the benefits of growth may not be felt evenly across the economy. Across Sub-Saharan Africa, the World Bank warns that stronger output alone is unlikely to produce substantial poverty reduction where growth is concentrated in capital-intensive sectors or activities with weak links to employment and household incomes. The report says that high food, fuel and transport costs continue to place pressure on vulnerable households.

Ethiopia remains exposed to global price movements because of its dependence on imports of fuel, food, fertilizers and industrial inputs. Higher energy and shipping costs have raised production and transport expenses across the region, placing additional pressure on consumer prices.

The World Bank notes that conflict-related disruptions in the Middle East have raised the cost of fuel, fertilizer and food imports across many African economies. Such shocks can weaken household purchasing power, increase business costs and complicate efforts by governments and central banks to maintain price stability.

For Ethiopia, exchange-rate movements remain another important factor. Currency depreciation can make imports more expensive, although reforms aimed at improving the availability and allocation of foreign currency could support exporters and reduce distortions over time.

The central challenge will be to maintain macroeconomic discipline while ensuring that reforms do not deepen the burden on low-income households. Measures to improve social protection, support food security and protect essential public services will remain important as the country adjusts to higher market-based prices.

Creating enough productive jobs for Ethiopia’s growing labour force remains one of the country’s biggest economic priorities.

Manufacturing, agriculture, construction, logistics, tourism, digital services and renewable energy all have the potential to create employment. But attracting investment alone will not be enough. Businesses need reliable electricity, access to finance, skilled workers, efficient transport links and predictable regulations to grow.

The World Bank argues that reforms to improve domestic financial markets could expand access to credit for businesses, particularly small and micro enterprises. Better access to finance can allow firms to invest, raise productivity and create jobs.

Digital connectivity is also becoming more important. The report warns that access to technology remains uneven across Africa, with poorer households often unable to afford devices, data or reliable electricity. In Ethiopia, only a limited share of low-income households have both a mobile phone and an electricity connection, restricting access to digital services, education and emerging technologies.

Ethiopia’s improved growth outlook offers an opportunity to strengthen exports, attract investment and widen economic activity. Yet the durability of that progress will depend on whether reforms produce visible improvements in people’s lives.

The World Bank warns that reform momentum can weaken when households face rising living costs without seeing tangible gains in employment, incomes and public services.

Where Have All the Ethiopian Intellectuals Gone?

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Philistinism, Political Fear, and the Slow Erosion of a Nation’s Mind

Ethiopia: The Silence Beneath the Noise

Ethiopia is living through a strange moment. A moment where the country feels louder than ever, yet its intellectual life is quieter than at any point in recent memory. After eight months in Addis Ababa and now stepping outside for a few weeks, the contrast is jarring. Addis dazzles with its glittering skyline, its glass towers, its new roads and cafés. But beneath the shine, there are cracks -deep ones. The most troubling of all is the disappearance of Ethiopia’s intellectual backbone.

The answer lies not only in economics or institutions, but in the shrinking of political space itself. As pressure from government intensifies, apathy has set in. Fear and fatigue have narrowed the room for debate. In this climate, a cultural disposition has emerged that treats intellectual curiosity, scholarship, artistic depth, and the pursuit of truth as irrelevant, elitist, or even suspicious. This is what Frank Furedi calls philistinism.

Philistinism: The Cultural War Against Thinking

Philistinism is not mere anti‑intellectualism. It is deeper, more corrosive. It is a worldview that sees intellectual labour as “bizarre, self‑indulgent, and disconnected from real life.” In Ethiopia today, this attitude is not marginal – it is pervasive. It thrives in the narrowing of political space, in the exhaustion of citizens, and in the suspicion of ideas.

Universities illustrate this vividly. Once engines of national debate, they now appear subdued. Lecturers avoid controversy, students retreat into silence, and research is often reduced to technical exercises stripped of critical engagement. Some may think intellectual life continues, but what emerges instead is a lack of intellectual fortitude and courage. Without courage, no amount of thinking amounts to much. Ideas remain inert, unable to challenge power or inspire change. In their place, opportunists flourish — individuals who adapt to the prevailing winds, perpetuating the status quo rather than questioning it.

This is the cost of philistinism: a society where intellectual energy is drained, where courage is replaced by caution, and where opportunism masquerades as wisdom.

Philistinism Is No Longer External – It Is Institutionalized

Philistine attitudes toward education, art, and culture are not new. Nineteenth‑century thinkers like Nietzsche, Goethe, and Marx warned that the impersonal force of the market could distort cultural development. But history shows us that philistinism can move beyond external pressures and become embedded in the very institutions meant to protect intellectual life.

Apartheid South Africa offers one stark example. Universities were deliberately constrained, curricula censored, and intellectuals who challenged the system were silenced, exiled, or co‑opted. Philistinism here was not simply a cultural mood; it was institutionalised through policy, turning higher education into a mechanism for reproducing conformity rather than cultivating critical thought.

Mobutu’s Zaire provides another. Under his “Authenticité” campaign, intellectual and cultural life was hollowed out, reduced to state propaganda. Independent thinkers were absorbed into the machinery of the regime or marginalised entirely. Universities became places where opportunists thrived, rewarded for loyalty rather than insight, while genuine scholarship was treated as dangerous.

Ethiopia today risks a similar trajectory, though in a different form. The narrowing of political space, the suspicion of dissent, and the pressure exerted on universities have created conditions where philistinism is no longer just an attitude from outside — it is becoming institutionalised at the highest levels of policy‑making. Universities, once engines of national debate, now appear subdued. Intellectual fortitude is scarce, and without it, thinking itself becomes inert. In this vacuum, opportunists flourish, perpetuating the status quo rather than challenging it.

A Historical Tradition Interrupted

Ethiopia once had a proud intellectual tradition. From Zera Yacob’s philosophical writings to the fiery debates of the 1960s student movement, intellectuals shaped national consciousness. They debated land reform, governance, identity, justice, and culture. They challenged power. They expanded the national imagination.

But over time, political sabotage, repression, and narrowing of political space eroded this tradition. Intellectuals were imprisoned, exiled, co‑opted, or silenced. Universities became battlegrounds rather than laboratories of ideas. The public sphere shrank. And the nation became poorer not only economically, but intellectually.

The Cost of Losing Intellectual Courage

A society without intellectual rigour becomes vulnerable to shallow thinking, emotional politics, and reactive governance. Without open discourse, national problems are misdiagnosed. Without critical debate, policy becomes improvisation. Without intellectual courage, society loses its ability to imagine alternatives.

Ethiopia today is paying this price. The absence of intellectual leadership has contributed to polarisation, institutional fragility, and a public sphere dominated by noise rather than insight. The country is full of educated people but starved of intellectual engagement.

The Emotional Climate: Apathy and Fear

The disappearance of intellectual life is happening alongside another troubling trend: a national emotional shutdown. Apathy has become Ethiopia’s default setting (read my article published on 27 September dedicated to this). People are tired, cautious, and withdrawn. The bureaucracy is defensive. Public services are transactional. Conversations are shallow. The emotional bandwidth of the nation feels depleted.

This emotional climate is not conducive to intellectual courage. Apathy suffocates curiosity. Fear silences dissent. Exhaustion kills imagination.

Why This Matters Now

Ethiopia is at a crossroads. Economic pressures, political fragmentation, cultural fatigue, and social apathy are converging. At such a moment, intellectual leadership is not a luxury but a necessity.

A nation cannot solve complex problems with simplistic thinking. It cannot build strong institutions without critical debate. It cannot heal without truth. It cannot innovate without imagination.

An African Example: Ghana’s Intellectual Reawakening

If Ethiopia feels stuck, consider Ghana. After periods of authoritarian rule and political instability, Ghana invested deliberately in academic freedom, media independence, and civic education. Universities became spaces for debate again. Journalists regained autonomy. Civil society organisations flourished. Today, Ghana’s public discourse is vibrant, and its intellectuals play an active role in shaping national policy.

This did not happen by accident. It happened because policymakers recognised that intellectual life is essential for democratic resilience. Ethiopia can do the same but only if it chooses to.

A Call to Action: Rebuild the Nation’s Mind

Ethiopia needs its intellectuals back not in hiding, not in exile, and not in silence. The country’s future depends on restoring the courage to think, to question, and to imagine alternatives. Policymakers must recognise that intellectual freedom is the foundation of stability, for fear of ideas signals weakness, not strength. Universities must reclaim their role as spaces of debate and dissent, restoring academic dignity. Civic society must champion critical thought and create platforms for dialogue, while religious leaders must defend truth, promote moral courage, and resist political co‑option. Journalists must prioritise analysis over propaganda and dare to ask harder questions. Citizens, too, carry responsibility: to demand depth rather than distraction, and to value truth over convenience. Above all, Ethiopia must cultivate a national consciousness that sees intellectual courage not as a luxury, but as a patriotic act which I believe is the backbone of a society determined to move forward with clarity, resilience, and hope.

It is time to walk together, to climb the hill collectively for a different vantage point — one that allows us to scrutinise, to question, to debate, and to imagine alternatives. Only by rebuilding the intellectual backbone of the nation; we can move beyond fear and apathy. Without courage, Ethiopia cannot advance; but with it, the country can rediscover the possibility of renewal. A society where truth is valued, imagination is alive, and intellectual life once again shapes the destiny of the nation.