| Ethiopia Forms Committee to Combat Black Market Currency Trading
January 13, 2017 - The government formed a special committee under the Prime Minister’s Office to combat the currency trading on the black market and outflow of hard currency from the country, according to Capital.
The Financial Intelligence Centre (FIC), which is the monetary intelligence unit established under the ‘Prevention and Suppression of Money Laundering and Financing of Terrorism’ proclamation conducted a study about illegal money transfer which is considered to be the major activity on the black market.
Beside illegal transfers, expats who receive their salary in hard currency and foreigners who come
| Ethiopia Inflation Falls to 6.7pct in December - Agency
January 5, 2017 - Ethiopia's year-on-year inflation dropped to 6.7 percent in December from 7.0 percent the previous month, according to the Central Statistics Agency.
The Agency said food inflation slowed to 5.3 percent in December from 6.1 percent in November.
Non-food inflation was 8.2 percent in December, compared with 8.1 percent in November. (Reuters)
| Ethiopia, Turkey Signed Multiple Cooperation Agreements
December 30, 2016 - Ethiopia, Turkey signed 5 cooperation agreements, according to AA reports. The deals, which include energy, mining and hydrocarbon fields, will strengthen bilateral ties said Turkish economy minister.
Ethiopia and Turkey signed five cooperation agreements in the Ethiopian capital Addis Ababa on Wednesday, setting out mechanisms to facilitate more trade between the two countries.
Turkish Economy Minister Nihat Zeybekci and heads of Ethiopian agencies had signed the agreements. “Both sides agreed to mutual cooperation in the fields of energy, mining and hydrocarbon,” the agreement
| Overvalued Birr Undercutting Competitiveness - WB
The World Bank Group (WBG) has advised the Government of Ethiopia to pay attention to the overvalued currency, which measured by the Real Effective Exchange Rate (REER) has appreciated by 84 percent since the nominal devaluation of the birr in September, 2010, as it is one of the factors explaining the persistent decline in country’s export earnings in the past three years.
According to the World Bank’s 5th Ethiopian Economic Update entitled: Why so idle? Wages and Employment in Crowded Labor Market, the birr has been overvalued by about 70 percent at the moment and together with other factors the overvalued currency is casting its shadow on the export competit
| Ethiopia's Inflation 7.0 Percent in November
December 8, 2016 - Ethiopia's year-on-year inflation rose to 7.0 percent in November from 5.6 percent the previous month, due to a rise in the price of food items, official data released on Thursday showed.
The Central Statistics Agency said food inflation rose to 6.1 percent in November from 3.4 percent in October.
Non-food inflation was 8.1 percent in November, compared to 8.2 percent the previous month, the body said.
| PM Appoints Getahun Nana Development Bank President
November 30, 2016 - Getahun Nana, Vice Governor of the National Bank has been appointed to lead the Development Bank of Ethiopia (DBE) by the Prime Minister earlier this morning.
His appointment is effective tomorrow on November 30, 2016. This appointment came in the midst of the suspension of his predecessor, Esayas Bahre, who was suspended by the Public Financial Institutions Supervision Agency, whose director is Sintayehu Woldemichael.
Getahun has been at his most recent post for the last seven years. (Fortune)
| Turkish Economic Minister, Investors Coming to Ethiopia
November 22, 2016 - Well heeled Turkish investors plan to accompany Turkey’s Economic Minister Nihat Zeybekci to visit potential business locations in Ethiopia. Ayalew Gobeze, Ethiopia’s Ambassador to Turkey, told Ethiopian journalists there that the trip will take place in the coming month. They are expected to participate in bilateral meetings with the business community and Ethiopian government officials.
Turkey’s investment in Ethiopia has been growing recently. Half of the USD six billion that Turkey invests in sub Saharan Africa flows to Ethiopia. Textiles and garments are the major products. In the past few weeks two busin
| Chinese Investors Continue Showing Keen Interest in Ethiopia
November 12, 2016 - Chinese investors have continued to show a keen interest to invest in Ethiopia, Ethiopian Investment Commission (EIC) head Fitsum Arega has said.
The African country in the past three months received 124 investors who have keen interest to invest, out of whom 71 were from China, said Arega.
Data from the EIC also show that the number of Chinese investors with keen interest to invest in the country is larger than other countries combined.
Arega also expressed his regret and sadness over "the appalling damages, indiscriminate looting and destruction sustained by national and f
| New Directive Bans Foreign Nationals of Ethiopian Origin from Buying Bank Shares
November 10, 2016 - In a policy reversal, the National Bank of Ethiopia (NBE) has issued a new directive to all banks instructing that all shareholders with foreign citizenship should return their share certificates to the banks. The reason for this new directive is unknown. The Ethiopian diaspora community has been and continues to be a major source of foreign revenue for the country, even exceeding the country's exports.
The directive also instructs that shareholders should be paid the value of their shares and dividends accrued until June 30th 2016. The directive was issued in time for the presentation of banks' annual reports and annual general meeting
| NBE Gives New Forex Directives to Ethiopian Banks
October 29, 2016 - In a move to regulate the allocation of foreign currency to importers, the National Bank of Ethiopia (NBE) has ordered commercial banks to allocate foreign currencies to importers without restrictions on the number or the value of pro forma invoices submitted by importers and ordered them not to turn away any importer requesting foreign currency.
The additional guidelines issued by NBE compel all commercial banks to at least accept and register any and all forex requests from importers regardless of backlog of foreign currency demand.
In a letter written to all commercial banks dated October 20, NBE laid out additional rules and regulations on the fo
| Israel Chemicals Negotiating Exit from Ethiopia
October 29, 2016 - Following the announcement of its decision to terminate its potash mineral development project in the Afar Regional State, Israel Chemicals (ICL) is negotiating a smooth exit from Ethiopia.
On October 6, the board of ICL announced its decision to terminate the potash development project in Dallol depression due to a controversial tax claim amounting to 55 million dollars levied on the company by the Ethiopian Revenues and Customs Authorities (ERCA). On October 10, the Authority blocked all the bank accounts of ICL citing the company’s refusal to pay capital gain tax. It then decided to freeze the properties of ICL.
| Ethiopian Government Tasks DBE to Assess Protest Damages
October 29, 2016 - The state owned financial institution Development Bank of Ethiopia (DBE) has formed a special unit to evaluate the extent of damage to the properties destroyed during the unrest which occurred a few weeks ago, mainly in the Oromia and Amhara Regions.
According to Behailu Kassaye (PhD), public relations head of DBE, his bank has formed a special unit made up of experts from various fields to undertake the evaluation.
He said that this unit is evaluating the damage including the companies that DBE has stake with after a request by Ethiopian Investment Commission.
Behailu told Capital that the government has asked DBE
| Ethiopia Investors Warily Eye Crackdown
October 10, 2016 - Foreign investors on Monday warily eyed the Ethiopian government’s latest attempt to quell violent protests that have targeted foreign-owned businesses in Africa’s second most-populous nation.
Prime Minister Hailemariam Desalegn declared a six-month state of emergency on Sunday, saying it was necessary to protect citizens and property followi
| Ethiopian Banks Raking Record Profits
November 23, 2012 - Ethiopian Banks are getting record profits several years in a row now. The latest case is that of Awash Bank. According to Capital, Awash International Bank Share Company (AIB) revealed that its net profits for the last Ethiopian fiscal year 2011/12, increased by 9.4 percent, to reach an unprecedented 394.4 million birr. Tsehay Shiferaw, President of AIB, said performance in the last fiscal year was not only impressive in terms of profits, but also in terms of total income, breaking the billion birr mark and reaching more than 1.1 billion birr.
Contrary to the
| Canadian Companies Showing More Interest in Ethiopia
July 28, 2012 - Canadian companies are showing keen interest in investing in the manufacturing and energy sectors, according to the Reporter. Canadian Ambassador to Ethiopia Michele Levesque on Monday Canadian companies are showing keen interest in investing in the manufacturing and energy sectors in Ethiopia.
Telahun Workeneh, trade commissioner with the Canadian Embassy in Addis Ababa, told The Reporter that a number of companies that are interested in the manufacturing sector are communicating with the embassy. Telahun declined to disclose the names of the co
| Mining Company to Withdraw from Ethiopian Project
June 18, 2012 - BHP Billiton, the largest mining company in the world, plans to pullout of the Dallol potash project in the Afar Regional State, according to the Reporter.
BHP has notified its decision to withdraw from the Dallol potash project to the Ministry of Mines. Sources said that the company has asked for clearance from the ministry adding that the reason for their withdrawal is not yet clear.
The Anglo-Australian mining giant has been prospecting for potash mineral in the Dallol Depression. The company has conducted seismic survey and drilled boreholes to make potash reser
| IMF to Push Ethiopia to Raise Interest Rates
May 28, 2012 -- The International Monetary Fund (IMF) is set to push the Ethiopian government to raise interest rates, according to the Reporter. Ethiopia has experienced sustained high inflations levels over the last several years which the IMF believes can be better controlled by raising interest rates and using other finiacial instruments.
IMF Resident Representative to Ethiopia Jan Michelson told the Ethiopian Reporter, "The IMF will advise on June 4 the government to raise the interest rates as one of the monetary policy instruments, as it will help sustain the growth registered over the
| NBE Approves Board of Directors for Enat Bank
January 15, 2012 - The National Bank of Ethiopia has approved 10 of the nominees for the board of directors of a new bank, Enat Bank Share Company, according to Capital. The new company plans to start banking operations in early 2012.
According to Abraham Alaro project manager at Enat Bank S.Co., NBE approved all the original nominees but one, Tsegaye Tetemke, who holds the position of bank president at Zemen Bank. He was barred from the position of board member for Enat Bank because of the directive that bans other bank members
| Ethiopian Banks Posting Record Profits
October 26, 2011 - Operating under tight government regulations that limits the kind of businesses that can and cannot get loans, Ethiopian banks are posting record profits. While inflation is eating away the capital of the average depositor, Ethiopian banks seem to be doing quite well, along with borrowers who are actually getting loan at negative real interest rates - after acounting for inflation. This trend that has been worrying international institutions such as the IMF and the World Bank, as it is in effect a transfer of wealth from the small savers to businesses and the rich
| Allana Potash Begins Environmental Study on Danakhil Project
August 25, 2011 - Toronto-based Allana Potash Corporation has reportedly begun an environmental study on its Danakhil potash project. Allana Potash Corp awarded the assessment study to the ERM. The environmental and social impact assessment is likely to begin immediately by the Environmental Resources Management, ERM. Beles Engineering, an Ethiopian environmental consulting firm, will also participate in the assessment study.
According to Allana's President and CEO Farhad Abasov, the company, which is a world leader in env