The engine behind this is Ethiopian Investment Holdings (EIH) which, in just four years, has become Africa’s largest sovereign wealth fund, managing 8.2 trillion birr ($140 billion) in assets by consolidating giants like Ethiopian Airlines and Ethio Telecom under one umbrella.
By centralising these assets under a corporate governance framework, the government aims to boost productivity and transparency, with the goal of EIH contributing 20% to Ethiopia’s GDP by 2030.
It might seem odd to build a physical printing plant while also pushing the Digital Ethiopia 2030 roadmap.
Why invest in paperSee Banknote paper. More when you want everyone using Telebirr?
But for the Ethiopian government, it’s about control. They call it ‘hybrid sovereignty’. Whether a citizen is swiping a digital wallet or handing over a physical note, the government wants that entire ‘nervous system’ to be 100% Ethiopian and a shield against supply chain shocks that dependency on outsiders for your basic legal tenderMoney that is legally valid for the payment of debts and must be accepted for that purpose when offered. Each jurisdiction determines what is legal tender, but essentially it is anything which when offered (“tendered”) in payment of a debt extinguishes the debt. There is no obligation on the creditor to accept the tendered payment, but the act of tendering the payment in legal tender discharges the debt. More can bring.
Currently, Ethiopia is one of more than 40 African nations that outsource banknoteA banknote (or ‘bill’ as it is often referred to in the US) is a type of negotiable promissory note, issued by a bank or other licensed authority, payable to the bearer on demand. More production to facilities in, primarily, Europe and North America. And it is the world’s largest country in population terms (137 million, the 14th most populous) without domestic banknote production.
By localising production, Ethiopia will join other African nations, such as Algeria, the Democratic Republic of Congo, Egypt, Kenya, Morocco, Nigeria, Sudan, South Africa, and Zimbabwe, that have the infrastructure to print their own currencyThe money used in a particular country at a particular time, like dollar, yen, euro, etc., consisting of banknotes and coins, that does not require endorsement as a medium of exchange. More.
But there are challenges. Ethiopia is stepping into a high-stakes game where many have tripped.
Uganda, for example, looked into local printing years ago but eventually backed off, realising that the sheer cost of security ink and specialised paper made outsourcingTo commission a third party to conduct a part of the business, because it allows management to concentrate in the core business area. Outsourcing an activity, does not remove the responsibility for what is done on behalf and in the name of the institution and it should maintain the reputational impact of the activity intact. More a better deal.
This practice raises concerns about high costs, supply chain vulnerabilities, and limited monetary sovereignty. Further, as counterfeiters constantly evolve, staying ahead requires significant R&D spending, and there is always a cost trap, along with issues of efficiency, scalability, and reliance on materials and ingredients.
The planned shift to local currency production builds on Ethiopia’s recent successes in high-security printing. In 2023, EIH established Toppan Security Ethiopia, a joint venture with Japan’s Toppan Gravity that has resulted in the establishment of a $55 million passport manufacturing plant in the Bole Lemi Industrial Park and the successful launch of Ethiopia’s first biometric e-passports in February 2025.
While the Toppan partnership initially focused on passports and national IDs, the government’s new mandate for EIH specifically targets the Ethiopian birr.
Ethiopian authorities are also moving forward with plans for an $85 million digital tax stamp system, with TOPPAN Gravity Ethiopia as a key participant.
Critics are sceptical, especially with the country’s current debt pressures. But if EIH hits its 2030 targets, Ethiopia won’t just be printing moneyFrom the Latin word moneta, nickname that was given by Romans to the goddess Juno because there was a minting workshop next to her temple. Money is any item that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular region, country or socio-economic context. Its onset dates back to the origins of humanity and its physical representation has taken on very varied forms until the appearance of metal coins. The banknote, a typical representati... More – it will be printing its own economic future.