Addis Ababa, March 2, 2026 (FMC) — Ethiopia’s Council of Ministers, in its 53rd regular session held today, approved a series of draft regulations and policy measures, and resolved to forward three loan agreements to the House of People’s Representatives for further deliberation and final endorsement.
A central item on the agenda was the review of three financial support agreements. After extensive deliberations, the Council unanimously decided to submit the draft bills to parliament, confirming that all three loan agreements are consistent with Ethiopia’s debt management policy.
The first agreement concerns a loan of 60,223,000 US dollars from the Export-Import Bank of Korea to finance the National Electric Power Expansion Project. The loan is interest-free and carries a 0.1 percent service fee to cover loan management costs. It is repayable over 40 years, including a 15-year grace period.
The second agreement involves a loan of 80,000,000 euros from Agence Française de Développement (AFD) for the implementation of the Renewable, Integrated, Sustainable Energy and Digitalization Project. The financing carries an interest rate of 1.2 percent and a 0.5 percent service fee for loan management costs. It is repayable over 20 years, including a seven-year grace period.
The third agreement relates to a loan of 184,100,000 Special Drawing Rights (SDR) from the International Development Association (IDA) to support urban development and entrepreneurship. The loan is interest-free and includes a 1.25 percent service charge covering loan management costs and unused funds. Repayment is scheduled over 30 years, including a six-year grace period.
In addition to the financial agreements, the Council approved several draft regulations.
The Council unanimously endorsed a draft regulation for the establishment of Medemer Artificial Intelligence University. The institution will be established as an autonomous university in accordance with Proclamation No. 1294/2015. It is mandated to train young professionals in the field of artificial intelligence and to produce scholars who contribute to national development. The regulation provides a legal framework defining the university’s powers, duties and responsibilities, enabling it to effectively fulfill its mandate. The regulation will take effect upon publication in the Federal Negarit Gazette, incorporating additional inputs made during deliberations.
The Council also approved a draft regulation determining conditions related to compensation obligations in connection with investors. The regulation is intended to create favorable conditions for investors to undertake large-scale projects that accelerate economic growth and advance priority sectors. It will enter into force upon publication in the Federal Negarit Gazette, with additional inputs incorporated.
Another regulation approved by the Council concerns the warehouse receipt system. While Proclamation No. 372/1996 is already in force to implement the system, the absence of detailed implementing regulations had created gaps in practice. The new draft regulation was prepared to address these shortcomings, clarify necessary provisions, and establish the required regulatory and institutional framework. The Council unanimously approved the regulation, which will take effect upon publication in the Federal Negarit Gazette.
The meeting further deliberated on draft agreements for gold mining and iron ore production licenses. The Council noted the importance of the agreements in enhancing foreign exchange earnings, creating employment opportunities, supporting the national economy, and aligning with government policy directions on environmental protection and community benefits. The draft agreements were unanimously approved, and the Ministry of Mines was mandated to sign and implement them accordingly.
Finally, the Council discussed and approved a draft tourism policy. The tourism development policy that has been in effect since 2001 E.C. was found to have gaps in addressing changes in the sector, harnessing emerging opportunities, and maximizing development potential. The new draft policy was prepared to guide and develop the sector in alignment with the Homegrown Economic Reform agenda, enabling it to play a stronger role in national economic development. The policy will take effect from the date of its approval.