2024 Wrapped: Key Events In Business, Tech, and More
What did 2024 look like for Ethiopia? While we wish for a great 2025, here are (some) of the key events that happened in 2024.
January
OVID Group ventures into the finance sector: OVID Betoch Bank, a new mortgage bank in Ethiopia, is being formed by executives from the fast-growing OVID Group, with prominent shareholders including Yonas Tadesse, Yitbarek Takele, Ermias Sehai, Abiy Girma, and Zemedeneh Negatu. Despite the lack of legal frameworks for mortgage banking in Ethiopia, the bank has secured a business license and central bank approval to offer shares, raising 1.2 billion birr of its 5 billion birr capital goal. The bank aims to provide tailored financing for homebuyers, initially using a 20/80 model, with plans to adjust based on investor capacity. OVID Group’s successful construction division will be a key borrower.
February
Gebeya Rebrands as a Talent Cloud In 2024, Gebeya, Ethiopian-based Pan-African EdTech and talent marketplace company, rebranded as a Talent Cloud. This rebranding marked a transformative step in its mission to connect skilled African professionals with global opportunities.
March
Commercial Bank of Ethiopia Encounters Glitch: You’ve probably heard of this one. On early March 2024, CBE encountered a glitch where depositors were able to conduct unauthorized withdrawals or transfers. Some 66,000 customers conducted at least 25,000 transactions, totaling nearly 2.4 billion Birr. As of right now, CBE has said that most of the money withdrawn has been returned.
April
Kubik raises $1.9 million in funding: Kubik, which successfully raised $3.34 million last year, raised an additional $1.9 million, making its total capital raised $5.2 million
National Bank of Ethiopia launched the interoperable QR payment standard: This new system allows customers to seamlessly make payments at any shop, regardless of their bank or mobile wallet provider, overcoming the previous fragmentation in QR code transactions. Developed by EthSwitch and owned by the National Bank of Ethiopia, the standardized QR format ensures compatibility across various payment apps, promoting financial inclusion and enabling broader adoption of mobile payments.
May
Safaricom Ethiopia announces onboarding amassing 9.4 million customers: Safaricom Ethiopia announced that it earned 41.22 million dollars in a year of service. Its mobile data revenue was 31.83 million and it earned 7.63 million dollars from its voice service. According to the report, an average person uses 4.3GB of internet data. During this period, the company acquired 9.4 million customers and deployed 2,806 mobile sites.
June
Ethiopia unveils its first National AI strategy: Ethiopia’s Council of Ministers approved the nation’s first overarching strategy for applying AI across sectors. The policy was drafted with input from the British think tank Tony Blair Institute and the AI for Good Foundation.
First EV Charging Station in Ethiopia: Given the growing use of Electric vehicles (EVs) in Ethiopia, Total energies launched inagurated its first EV charging station, , located on Bole Airport Road.
July
Currency Floats: Ethiopia implements a floating foreign exchange regime as part of economic reforms recommended by the International Monetary Fund. Since then, the birr has fallen significantly against the dollar.
UAE and Ethiopia Launch 5 Million Coders Initiative: Ethiopia’s "5 Million Ethiopian Coders Initiative," inspired by the UAE's "One Million Arab Coders," offers free coding courses via Udacity to empower youth nationwide. Supported by the UAE, it complements ongoing tech talent efforts, including partnerships with ALX Ethiopia, Gebeya, and Safaricom.
August
Ethio Telecom Launches Virtual Visa Card: Ethio Telecom has partnered with VISA Inc. to launch Ethiopia’s first wallet-based Virtual Visa Card, enhancing digital financial services and promoting financial inclusion. The agreement introduces Visa Direct, enabling global Visa cardholders to send money to Ethiopia using Telebirr virtual card numbers, offering faster transfers with lower fees. Additionally, the Telebirr Remit App allows secure remittances from nine countries to Telebirr mobile numbers, with expansion plans.
AliExpress enters the Ethiopian market: AliExpress, a global e-commerce giant under Alibaba Group, has made a significant entry into the Ethiopian market. By partnering with MKTY as its Official Business Partner in Ethiopia, AliExpress has established the first AliExpress Showroom in Africa, located in Addis Ababa.
September
Ethiopia and China sign a currency swap agreement: Ethiopia and China have agreed to use their currencies for bilateral trade to enhance economic ties and address foreign exchange challenges. Ethiopian Finance Minister Ahmed Shide announced the move following the FOCAC meeting in Beijing, noting that the central banks are finalizing a currency swap agreement. This initiative aims to ease trade, attract investment, and support Ethiopia’s economic reforms. China, Ethiopia’s major trading partner, accounted for $2.92 billion in imports and $175 million in exports in 2022, with significant Chinese FDI contributing to Ethiopia’s development. At FOCAC, China pledged $51 billion to Africa and one million jobs.
October
Ethio Telecom makes its first-ever IPO: Prime Minister Abiy Ahmed has announced the sale of 10% of Ethio Telecom’s shares, valued at 30 billion Birr, to the Ethiopian public. Running from October 16 to December 25, 2024, this initiative aims to introduce Ethiopians to the stock market and boost public economic participation. Ethio Telecom, with a capital of 100 billion Birr and a market valuation of 300 billion Birr, is offering 100 million shares at 300 Birr each. Buyers can purchase between 33 and 3,333 shares, with a 1.5% service charge and VAT applied. Payments must be made in Ethiopian Birr through Tele Birr within 48 hours. The final shareholder list will be announced on January 23, 2025.
Ethiopia hosts the 3rd Pan-African Artificial Intelligence (AI) Conference: The 3rd Pan-African AI Conference in Addis Ababa, themed “Empowering Africa with Artificial Intelligence,” highlighted AI’s role in advancing health, agriculture, and economic growth. The two-day event featured research presentations supporting Africa’s development.
November
Ethiopia announces it is drafting a startup proclamation: Ethiopia is drafting a new proclamation to support startups by establishing legal and institutional frameworks that address challenges such as access to finance.
December
The proclamation allowing foreign banks in Ethiopia is ratified: Ethiopian lawmakers have approved a new "Banking Proclamation" allowing foreign banks to operate in the country. The law enables foreign banks to establish subsidiaries, branches, or acquire shares in local banks, but with restrictions. Foreign ownership in local banks is capped at 49% of the bank's shares to protect local interests.
ESX schedules its launch in January 2025: The Ethiopian Securities Exchange (ESX) is set to launch in January 2024. Preparations have included developing a digital academy and creating investment opportunities for local financial institutions. The exchange will initially offer shares from Ethiopia Telecom and other companies, along with government treasury bills. Additionally, a Sharia-compliant trading system will be introduced.
What other headlines do you think are worth mentioning? Let us know in the comments.