March 9, 2025
The Ethiopian Defense Force runs Adwa Victory Microfinance Share Company
Borkena
Toronto — Over the past few years, the Ethiopian government has been privatizing national assets across the board, including Ethiopia Telecom. Now, the government is commercializing the revered Adwa Victory by establishing a microfinance share company to be operated within the Defense Force. This move to create a share company within the military is unprecedented in Ethiopian history.
On Sunday, Fana Broadcasting, the government-owned media outlet, reported that the “Adwa Victory Microfinance Share Company” was officially launched in the presence of Field Marshal Berhanu Jula. The Defense Chief is quoted as saying that efforts to establish a share company have been underway since 2010.
The government argues that the share company will strengthen the financial sector within the Defense Force and improve access to finance for its members. However, the reasoning behind naming the microfinance company after Adwa Victory remains unexplained.
The concept of share companies and privatization is part of a broader market-oriented approach introduced by Prime Minister Abiy Ahmed under the banner of “homegrown economic growth reform,” which was endorsed by the IMF in exchange for a $10 billion Extended Credit Facility (ECF).
According to the report, the Defense Force has already begun selling shares to various divisions and commands, with those purchasing higher numbers of shares being rewarded.
There appears to be a plan to open more branches and expand the company’s reach across the country. However, the report did not specify the prices of the shares, and if it is open to the public.
The Defense Force has faced criticism, particularly in recent years, for being used as a tool by Prime Minister Abiy Ahmed’s government. It remains unclear how the Defense Force’s new business venture will impact its relationship with the government.
Not much information is available at this time. Borkena will update readers as it becomes available.
__