The National Bank of Ethiopia (NBE) has barred Tesfaye Boru, former Chief Executive Officer of Global Bank Ethiopia (GBE), from holding senior leadership roles in any financial institution for five years, citing repeated regulatory violations.

In a letter dated July 29, the central bank confirmed that Tesfaye was removed from his position following a special inspection of GBE. The review assessed the bank’s corporate governance, lending and credit administration practices, human resource management, foreign exchange operations, and overall financial management.

According to the NBE, the inspection revealed multiple deficiencies and breaches of both regulatory directives and the bank’s internal policies, which it said undermined the institution’s sound operations.

“The findings were subsequently discussed with the bank’s Board of Directors and senior management, where broad agreement was reached regarding the issues identified,” the central bank stated.

GBE later submitted a detailed response along with a corrective action plan addressing the identified shortcomings. However, the NBE said the severity of the findings, combined with Tesfaye’s prior regulatory record, warranted stronger enforcement action.

Citing earlier written warnings issued in May 2021 and November 2024, the central bank invoked Article 20(1) and (2) of the Banking Business Proclamation No. 1360/2025 and Article 10 of Directive No. SBB/89/2024 to justify its decision.

“Accordingly, based on the findings of the inspection, as well as the previous written warnings … you are removed from your position as Chief Executive Officer of GBE effective July 28, 2026,” the letter read.

In addition to his removal, Tesfaye has been prohibited from serving as a board member, chief executive officer, or senior executive in any financial institution operating in Ethiopia for five consecutive years, effective from July 28, 2026.

The regulatory action follows his dismissal by GBE’s Board of Directors last week.

Efforts to obtain comment from Tesfaye, GBE Board Chairman Yoseph Getachew, and Frezer Ayalew, Head of Banking Supervision at the NBE, were unsuccessful.

State-owned Ethiopian Shipping and Logistics (ESL) says it is closely monitoring the evolving security situation in the Red Sea and the wider Middle East, while weighing commercial options to keep Ethiopian cargo moving without disruption.

ESL Chief Executive Officer Abdulber Shemsu said the company is assessing whether to introduce feeder services in the region or reroute vessels on longer voyages, depending on how the situation develops.

“We will make our decision based on commercial analysis because the situation is still unfolding,” Abdulber told Capital. “Our priority is to ensure that goods destined for Ethiopian customers continue to move.”

He noted that the company has previously operated under difficult circumstances. During the height of the conflict between the United States and Iran, ESL vessels continued calling at the Port of Khor Fakkan in the United Arab Emirates to transport essential cargo for Ethiopia despite heightened security risks.
“Our diplomatic advantage has helped Ethiopian-flagged vessels continue operating in volatile waters,” he said.

The Red Sea, which had remained relatively calm for much of the past year, has become a renewed source of concern in recent weeks, adding to tensions already affecting the Persian Gulf. The deteriorating security environment has raised fresh concerns over global shipping, with cargo movements—including Saudi oil shipments—coming under pressure.

Since the escalation of the conflict in the Middle East, Yemen’s Ansarallah movement has threatened vessels and shipping companies linked to Israel or countries it considers to be supporting Israel. Despite those risks, ESL, which operates a fleet of 10 deep-sea vessels, has continued sailing through the region without interruption.

New uncertainty also emerged this week following reports that Ansarallah could seek to impose transit fees on ships passing through the Bab el-Mandeb Strait. In a statement issued on Wednesday, the Djiboutian government firmly rejected any unilateral attempt to levy charges on one of the world’s busiest maritime corridors, arguing that the strait is an international waterway where vessels enjoy the right of free navigation.

Ethiopian Shipping and Logistics (ESL) reported a sharp rise in profit for the 2025/26 fiscal year, overcoming regional conflicts, security threats and operational disruptions that affected its shipping activities.

According to the company’s unaudited annual performance report, ESL generated 157.2 billion birr in revenue after transporting more than seven million metric tons of cargo, achieving 108 percent of its annual target.

The state-owned logistics giant posted an unaudited net profit of 25.4 billion birr, significantly exceeding its planned profit of 17.5 billion birr. The result represents an increase of roughly 45 percent over the target, highlighting stronger-than-expected financial performance despite a challenging operating environment.

Presenting the annual report, Chief Executive Officer Abdulber Shemsu said the company faced multiple setbacks during the fiscal year. Among the major challenges were the prolonged grounding of one of its vessels for more than four months and fuel shortages that disrupted operations.

Despite those difficulties, he said the company’s efforts to improve operational efficiency and strengthen profitability helped offset potential financial losses and protected overall earnings.

ESL also generated USD 551 million in foreign currency revenue during the fiscal year, an increase of at least USD 50 million compared with the previous year.

The company noted that regional geopolitical tensions also affected its operations. The temporary disruption to maritime traffic linked to the Strait of Hormuz forced adjustments to some shipping services, adding pressure to an already difficult operating environment.

Djibouti has firmly rejected any attempt to impose unilateral taxes or transit fees on vessels passing through the Bab el Mandeb Strait, warning that such a move would violate international law and threaten one of the world’s most important maritime routes.

In a statement issued Wednesday evening, the government said it opposes any effort by a single party to levy charges on ships using the strategic waterway, which is shared between the Horn of Africa and Yemen’s western coast.

The statement followed reports earlier in the day suggesting that Yemen’s Houthi movement was considering introducing transit fees for vessels navigating the Bab el Mandeb Strait. The narrow passage connects the Red Sea to the Gulf of Aden and the Indian Ocean and serves as a critical gateway for global trade and energy shipments.

Djibouti said it remains fully committed to the principle of freedom of navigation and to the international legal framework governing straits used for international navigation under the law of the sea.

“The Bab el Mandeb Strait is a maritime passage of global interest, shared between the African and Asian shores. Any initiative seeking to impose, from a single shore, a toll or taxation system on ships transiting through this strait would be contrary to international law, would undermine the sovereignty of the riparian States, and would threaten the security of maritime routes essential to global trade and energy supply,” the statement said.

As a riparian state bordering the strait, Djibouti said any such measure would amount to a unilateral challenge to the international status of the waterway and would further heighten tensions in an already fragile region.

The government added that it reserves the right to pursue diplomatic, legal and security measures—either independently or in coordination with regional and international partners—to safeguard its sovereign rights, protect freedom of navigation and preserve stability in the Red Sea.

Djibouti also called on the international community, relevant international organizations and countries that rely on the strait to ensure the Bab el Mandeb remains a safe and open maritime corridor governed by international law, rather than becoming a tool for advancing particular interests.

The Bab el Mandeb Strait is one of the world’s busiest shipping lanes, carrying a substantial share of international trade and energy supplies between Europe, Asia and the Middle East.

According to experts for Ethiopia, the issue carries particular significance. As a landlocked country, it depends overwhelmingly on Djibouti’s ports and the uninterrupted flow of cargo through the Red Sea corridor for its international trade.