Ethiopia’s ambition to nurture a generation skilled in science, technology, engineering, and mathematics (STEM) is facing significant challenges due to high customs duties on essential educational materials. Organizations at the forefront of STEM education have raised concerns that these import costs are restricting access to quality programs and hindering the country’s technological advancement.

For over two years, So Ez Technology and Training PLC, a leading provider of STEM education for Ethiopian children, has advocated for duty-free importation of critical STEM equipment. The organization, operating under the brand STEM for Kids, emphasizes that the current customs regime inflates the cost of importing robotics kits, coding tools, and other educational technologies, making these programs less affordable and accessible to a broader population.

STEM for Kids has successfully introduced a curriculum developed in collaboration with educational and technology institutions in the United States. Despite its proven success, the high cost of importing training materials limits the program’s reach, contrasting sharply with neighboring countries such as Kenya. Kenya has created a more supportive policy environment by establishing accreditation systems for STEM subjects, facilitating wider adoption and growth.

Ermias Hailemariam, CEO of STEM for Kids, stressed the urgency of embracing STEM education in Ethiopia, particularly in light of rapid advancements in artificial intelligence (AI) and the ongoing Fourth Industrial Revolution. “Traditional jobs are evolving, and many tasks can now be performed with the help of machines,” Ermias explained. “Our focus is on preparing the next generation for the future of work and equipping them with the skills they will need.”

STEM for Kids empowers children aged 4 to 17 to become creators and problem solvers by teaching programming as a form of literacy, fostering engineering skills, and encouraging creativity through robotics. As the first U.S.-based STEM franchise operating in Africa and Ethiopia, the organization has trained nearly 4,000 children over the past two years and eight months, delivering programs through dedicated centers, after-school initiatives, weekend classes, and summer camps.

STEM for Kids plans to expand its national footprint by launching online training programs in partnership with major telecommunications providers Ethio Telecom and Safaricom. The organization aims to train 10,000 children over the next decade and is committed to certifying its trainers to maintain high educational standards.

However, despite these ambitious plans, the burden of high customs duties and income taxes on imported educational materials remains a significant obstacle. Ermias and other advocates argue that exempting electronic devices such as laptops and robotics kits from import taxes is crucial to fostering STEM education and increasing participation among Ethiopian youth.

Reducing or eliminating these taxes would not only alleviate financial pressures on organizations like STEM for Kids but also accelerate Ethiopia’s progress toward developing a technologically skilled workforce. Such a workforce is essential for addressing domestic challenges and contributing to global innovation.

The Ethiopian Capital Market Authority (ECMA) has clarified that it has not yet received an application from Siinqee Bank for an investment banking license, despite recent announcements from the bank regarding its intentions to enter the investment banking sector.

Siinqee Bank, a prominent player in Ethiopia’s banking sector over the past three years, had recently stated that it was awaiting regulatory approval to become the country’s third investment bank. The bank’s president had confirmed that all necessary documentation had been submitted to the ECMA and that the institution was awaiting a formal response.

However, in a statment to Capital today, the ECMA said, “As of this date, the Authority has not received any application from Siinqee Bank for an investment banking license.” The ECMA emphasized its commitment to transparency and due process in the licensing of new market participants.

Further updates will be provided as the situation evolves.

Siinqee Bank awaits license to become Ethiopia’s third Investment Bank

Siinqee Bank, a prominent player in Ethiopia’s banking sector over the past three years, has announced that it is awaiting regulatory approval to become the country’s third investment bank. If granted, this license will enable Siinqee Bank to expand its role in Ethiopia’s emerging capital market, marking a significant milestone in the nation’s financial sector development.

The bank’s president confirmed that all necessary documentation has been submitted to the Ethiopian Capital Market Authority (ECMA), and the institution is now awaiting a formal response. This move reflects Siinqee Bank’s commitment to broadening its services beyond traditional banking and contributing more actively to capital market activities.

The entry of Siinqee Bank into investment banking is expected to enhance Ethiopia’s financial landscape by providing more diversified investment options and supporting the growth of the capital market. This development comes at a time when Ethiopia is working to modernize its financial system and attract both domestic and foreign investment.

Siinqee Bank’s ambition to become an investment bank is underpinned by strong financial performance. In the 2024/25 fiscal year, the bank reported a remarkable 173% increase in total revenue, reaching 15.4 billion birr. Its unaudited annual profit, before tax and provisions, stood at 3.5 billion birr. The bank’s lending portfolio also expanded significantly, with loans totaling 56.7 billion birr distributed across key sectors including agriculture, manufacturing, micro and small enterprises, and support for entrepreneurial youth and women.

Capital growth has been equally impressive, with the bank’s total capital rising by 28% from 9.7 billion birr in the previous fiscal year to 12.4 billion birr as of June 30, 2025. Deposits have surged to 102.5 billion birr, representing an extraordinary 897% increase since the bank’s inception. On average, deposits have grown by 116% annually over the past three years. The bank also reported a customer base of 8 million, underscoring its rapid expansion and growing market presence.

Ethiopia’s regulatory framework for investment banking, as outlined in the Ethiopian Capital Market Service Providers Licensing Directive No. 980/2024, sets clear requirements for institutions seeking to operate in this sector. Among these is a minimum starting capital of 100 million birr. While Siinqee Bank has not publicly disclosed its intended starting capital for investment banking operations, its leadership has indicated that the bank has allocated sufficient capital in line with regulatory expectations.

Should Siinqee Bank receive its investment banking license, it will join a select group of institutions already operating in Ethiopia’s nascent capital market. The first two licensed investment banks—Wegagen Capital Investment Bank and Commercial Bank of Ethiopia Capital Investment Bank—have set precedents with starting capitals of 385 million birr and 100 million birr respectively. These banks provide services including strategic advisory, brokerage, and underwriting, playing a vital role in expanding Ethiopia’s financial markets.

Siinqee Bank’s transformation from a microfinance institution into a full-fledged commercial bank has been marked by rapid growth and strategic innovation. Since receiving its banking license in 2022, the bank has invested heavily in technology and organizational restructuring to compete effectively with established players. Its planned expansion into investment banking signals a new phase of growth and diversification.

The addition of Siinqee Bank as an investment bank is expected to contribute to increased market depth, improved access to capital for businesses, and enhanced financial inclusion. The bank’s leadership has expressed optimism about its future role in supporting Ethiopia’s economic development through innovative financial solutions and expanded capital market activities.

The Ethiopian Capital Market Authority is currently reviewing Siinqee Bank’s application, and a decision is anticipated in the near future. The approval will mark a significant step forward for the bank and for Ethiopia’s broader financial sector reforms.

Awash Insurance S.C. (AIC) has announced a remarkable financial performance for the 2024/25 fiscal year, solidifying its position as the leading private insurance company in Ethiopia by a wide margin. The company reported collecting premiums exceeding 4.5 billion birr across its general, life, and health insurance sectors, marking a significant growth in revenue and market share.

According to the company’s latest report, AIC generated more than 3.74 billion birr in gross premiums from its general insurance operations, reflecting a 44% increase compared to the previous fiscal year. The life and health insurance segment also showed robust growth, with premiums rising by 48% to over 656 million birr. In addition, the Sharia-compliant Salam Takaful Insurance Service, managed by Awash Insurance, achieved an impressive 120% growth, collecting premiums exceeding 150 million birr.

The company’s total premium collection surpassed 4.5 billion birr, representing a 46% increase over the prior year and maintaining its leadership position among 17 private insurance firms in the Ethiopian market. This performance underscores AIC’s dominance and its ability to expand its customer base and product offerings amid a competitive landscape.

In terms of claims, AIC paid out over 1.5 billion birr in compensation during the fiscal year, with vehicle insurance claims accounting for more than 930 million birr. The company’s extensive network includes over 300 sales agents, serving more than 100,000 customers with efficient and reliable insurance services nationwide.

AIC’s commitment to innovation and community-oriented services was further demonstrated by the launch of crop insurance products aimed at supporting Ethiopia’s agricultural sector. This initiative seeks to protect smallholder farmers from natural disasters and climate-related risks, reflecting the company’s broader role in contributing to economic resilience and social welfare.

Financially, the company’s paid-up capital reached 2.6 billion birr by June 30, 2025, while total assets exceeded 10.2 billion birr. AIC has invested heavily in modern information technology systems to enhance service delivery, including the development of new digital platforms designed to make insurance products more accessible and convenient for customers.

Beyond its commercial success, Awash Insurance has actively engaged in social, economic, and environmental initiatives, providing financial, material, and professional support to various government agencies and non-governmental organizations. This reinforces the company’s position as a responsible corporate citizen contributing to Ethiopia’s sustainable development.

AIC’s recent achievements build on its longstanding reputation as a pioneer in Ethiopia’s insurance sector. Established as one of the first private insurers following the liberalization of the financial sector, the company has steadily expanded its market share and product portfolio. Its strategic vision and dynamic leadership have been key drivers of its sustained growth and resilience in a challenging economic environment.

With its record-breaking premium collections, growing capital base, and innovative product offerings, Awash Insurance continues to set the benchmark for private insurance companies in Ethiopia. As the sector evolves, AIC’s focus on customer-centric services and technological advancement positions it well to maintain its leadership and contribute meaningfully to the country’s financial sector development.

The National Bank of Ethiopia (NBE) has transitioned to conventional monetary policy instruments to combat inflationary pressures, moving away from its long-standing traditional framework.

The central bank has reaffirmed its commitment to a disciplined and multifaceted monetary policy that utilizes market-based tools to reduce inflation to single digits while promoting economic recovery and external stability. It intends to achieve this by carefully managing the money supply through the banking sector.

During its third meeting on Monday, June 30, the NBE’s Monetary Policy Committee (MPC) evaluated recent economic trends, including inflation, production, credit growth, fiscal policy, and external trade, before recommending policy measures for board approval.

According to the MPC’s statement, broad money supply increased by 23.3% as of June 2025, while bank credit grew by 18.1%. Reserve money experienced significant growth, driven by foreign exchange accumulation from gold exports. However, lending caps have helped mitigate excessive credit growth.

On the fiscal side, the government has reduced its deficit by eliminating central bank borrowing in the 2024/25 fiscal year, thereby supporting the NBE’s monetary tightening efforts. This fiscal discipline is anticipated to help stabilize prices and sustain economic growth.

The central bank’s strategy highlights its focus on balancing inflation control with measures to ensure ongoing economic recovery and external sector stability.

Short-term interest rates remain above the NBE’s policy rate (NBR) of 15%, with 91-day Treasury bill yields reaching 17.7% in May 2025.

 The interbank rate stood at 17.5%, remaining within the NBE’s target corridor. While the banking sector remains stable, some banks are encountering liquidity challenges, which are being addressed through the interbank market and the NBE’s Standing Lending Facility.

During this period, the NBE has maintained its key policy rate at 15%, with no changes to deposit, lending, or reserve requirement rates. Additionally, the central bank has announced the removal of the mandatory 20% Treasury bond purchase requirement for loan disbursements, a measure initially imposed in late 2022.

The 18% cap on bank credit growth will remain in effect until the next MPC meeting in September 2025, as previously communicated. The MPC has reiterated that the current tight monetary policy stance will continue until inflation, currently above 14%, is reduced to single digits.

To uphold this restrictive approach, the NBE has reaffirmed its commitment to utilizing a range of monetary policy tools rather than relying on direct intervention for monetary control.

The NBE announced that the Committee has agreed that the revision of credit growth caps is anticipated by September 2025, contingent upon sustained progress in controlling inflation. Importantly, this adjustment will not result in any unintended easing of monetary policy.

The NBE emphasized its commitment to utilizing a comprehensive array of market-based monetary policy tools to uphold stability.

These tools include the central bank’s policy rate, Open Market Operations (OMOs), foreign exchange interventions, and adjustments to reserve requirements.

The NBE indicated that these measures can be implemented individually or in combination, as necessary, in response to inflationary trends and monetary conditions.

A year ago, the NBE introduced its first-ever policy rate to facilitate a transition toward an interest rate-based monetary policy framework. In its latest policy statement released on July 9, 2024, the NBE reaffirmed that the NBR, currently set at 15%, will be the primary tool for signaling its policy stance and influencing broader monetary and credit conditions.

The statement further clarified that the NBR will be adjusted—either increased or decreased—based on prevailing inflationary pressures and monetary conditions, ensuring a responsive and flexible approach to economic management.

Additionally, a few months ago, the central bank issued a revised draft directive on reserve requirements to align with international standards.

This update aims to ensure that banks maintain sufficient liquidity to meet their obligations while also providing the National Bank with a mechanism to manage the money supply and control inflation.

The directive seeks to strengthen monetary policy and prudential regulation by introducing partial reserve averaging and a lagged maintenance period.

These changes are expected to enhance the efficiency of the interbank market and provide banks with greater flexibility in managing liquidity.

Moreover, to reinforce financial stability, the directive consolidates separate reserve and payment accounts into a single payment and settlement account.

Under the new directive, banks are required to hold at least 5% of their reserve base in their NBE payment and settlement account daily, while maintaining a monthly average reserve requirement of 7% of their deposit liabilities.

Recently, NBE officials announced plans to introduce new monetary instruments to maintain a firm policy stance, even as the central bank prepares to lift the credit cap in September and discontinue mandatory bond purchases by banks.