US Secretary of State Marco Rubio said a drone attack took place in Addis Ababa and called the TPLF, which has fought the federal government and its allies for three weeks, a "separatist group." He warned that rising military tension between Ethiopia and Eritrea, where both sides have moved troops near the border, could grow into a broader regional war, and urged restraint. He said easing select sanctions on Eritrea opens diplomatic channels, since mediation requires talking to both sides. The drone attack claim is announced, not measured. (99 words)

BBC News Amharic; also Capital Ethiopia, The Reporter Ethiopia

The TPLF issued a statement on Friday, October 16, restricting flights to and from Mekelle's Alula Aba Nega Airport and warning residents against movement around airports in Tigray, alleging the federal government uses Ethiopian Airlines to transport troops. The TPLF also rejected the caretaker administration appointed by Prime Minister Abiy Ahmed's government, calling it an imposed "Prosperity structure" whose decisions would have no legality or enforceability. (76 words)

Addis Standard (@addisstandard); also Borkena

Al Jazeera reports that residents of Adigrat, a city near the Eritrean border in Ethiopia's northern Tigray region, recount recent drone strikes by Ethiopian forces against Eritrean troops. Renewed fighting in the region has raised fears of a wider regional conflict, according to the report. (48 words)

Al Jazeera

New details have emerged on the Gambella clashes reported earlier. Armed clashes in Gambella city between armed groups and the Ethiopian National Defense Force have killed at least 25 people and injured more than 80, according to local residents. The violence follows an October 13 protest after a civilian's body was carried to the regional council headquarters. The regional police commission has declared an indefinite state of emergency and a strict curfew. Residents cite Anuak-Nuer tensions and attacks on non-indigenous residents, including Amharas. The death toll is announced, not measured. (95 words)

Borkena

Protests in Kobo town and six Raya-Wefla woredas opposed interim administration elections, calling them non-inclusive; protesters demanded suspension, Tigray forces' withdrawal, and displaced persons' return.

Borkena; also Addis Standard · reported by Borkena; eyewitness accounts from protest organizers

Ethiopian Red Cross says armed forces attacked a humanitarian ambulance around 7:20 a.m. in Girsē village, Dangur Woreda, Metekel Zone, killing driver Mulugeta Andualem; the vehicle was destroyed.

Tikvah Ethiopia (Telegram); also Addis Standard

Oromia residents tell DW Amharic insecurity persists; a Nono resident says many died in clashes between government forces and OLA in Dire Enchini district last week, including three Nono security personnel.

DW Amharic · according to residents, reported by Deutsche Welle

Fitch affirmed Ethiopia's Restricted Default rating on October 16, citing unresolved commercial debt.

Birr Metrics

Ethio Telecom's board appointed Tariku Demissie Acting CEO from October 16, 2026, succeeding Frehiwot Tamiru, now Innovation and Technology Minister.

stockmarket.et (Telegram); also Ethiopian Business Daily (Telegram), The Reporter Ethiopia

The National Bank of Ethiopia joined the Pan-African Payment and Settlement System, Reuters reported via Addis Standard.

Addis Standard (@addisstandard)

Cooperative Bank of Oromia's net profit rose 293.6 percent to 6.14 billion birr in 2025/26; revenue up 65.6 percent to 33.14 billion; pre-tax profit 11.47 billion; deposits 193.26 billion; assets 224 billion; new lending up…

Birr Metrics; also Ethiopian Business Review (Telegram)

On October 15, the UK expressed serious concern over Ethiopia-Eritrea security, condemning incursions and backing AU mediation.

Borkena