Undergoing a raft of reforms across the political, economic and security sectors, Ethiopia will have a strong and firm leader in Sahle-Work Zewde who has previously served her nation in high ambassadorial capacities.
Following months of peace talks with Eritrea, Ethiopia has also been in the midst of nationwide reform capped off with Thursday's appointment. Sahle-Work, as her name denotes, has been described as an experienced diplomat who recently held an office with the UN. She is the first female head of state in modern Ethiopia.
Despite being a largely ceremonial leader with the Prime Minister - in this case Abiy Ahmed - being leader of government business, the role of president is a constitutional one that primarily says the occupant of the post is the Head of State. "And the nominee shall be elected President if a joint session of the House of Peoples' Representatives and the House of the Federation approves his candidacy by a two-thirds majority vote".
The influential Addis Standard cited top government officials as confirming that Ambassador Sahle-Work Zewde, a top official with the United Nations, UN, was due to be Mulatu's replacement.
In a patriarchal society such as ours, the appointment of a female head of state not only sets the standard for the future but also normalises women as decision-makers in public life.
Sahle-Work, who was born in the capital Addis Ababa and attended university in France, has been Ethiopia's ambassador to France, Djibouti, Senegal and the regional bloc, the Intergovernmental Authority on Development (IGAD).
In her acceptance speech, President Sahle-Work spoke about the importance of maintaining peace, local media freedom.
"When there is no peace in the country, mothers will be frustrated".
Teshome had on Wednesday tendered his letter of resignation since taking office in 2013.