Why Ethiopia's VAT Refunds feels like Interest-free Loan to the State: A Commentary on the Contradiction within the New VAT Refund Directive No. 1132/2026
Ethiopia’s VAT Directive No. 1132/2026 hurts business cash flow: it freezes construction VAT refunds until projects end and requires court rulings to get interest on delayed refunds. This double standard gives the state interest-free loans while forcing businesses into costly litigation.
20 June, 2026
Article
Collateral Crisis a Pressing Challenge for Ethiopian Banks
Ethiopia’s urban corridor projects are triggering a bank collateral crisis by demolishing real estate used as loan security. Unfair government property valuations and delayed compensation leave banks exposed to severe credit risks, requiring urgent reform and diversified loan collateral.
08 May, 2025
Article
Making Space for Fintech Innovation in Ethiopia
Ethiopian fintech face regulatory hurdles and ambiguity. To foster innovation safely, regulators like the NBE, ECMA, and MInT must align, establish clear regulatory sandboxes, and adopt flexible "test-and-learn" frameworks inspired by successful models like Kenya.