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Capital Inadequacy of Commerical Bank of Ethiopia Alarms Government

CBE-capital-inadequacy-shocks-ethiopian-governmentJanuary 17, 2017 - A shocking decline of the Capital Adequacy Ratio (CAR) at the largest state-owned bank, Commercial Bank of Ethiopia (CBE) – currently at the lowest critical level of four percent – has prompted the government to deposit a security bond worth 26.5 billion birr, according to Reporter.

The security bond is intended to raise the bank's paid up capital. In a bid to apply it quickly, the government has tabled a draft proclamation on Tuesday before the House of People’s Representatives (HPR). The bill proposes an issuance of the security bond worth 26.5 billion birr. If approv

Ethiopia Considering Partial Privatization for Shipping Enterprise - PM

Ethiopia-considering-selling-shipping-enterpriseJanuary 17, 2017 - During  his latest press conference Prime Minister Hailemariam Desalegn confirmed that his government is in the process of selling shares of the Ethiopian Shipping and Logistics Services Enterprise (ESLSE), which is the only state run company that owns commercial boats in Africa, to an undisclosed company, according to Capital.

The PM explained that  the costs of inland transportation out way the costs of transportation by sea because of logistical issues and the cost of moving freight in Ethiopia.  He pointed out that, “the newly inaugurated

Ethiopian Premier Accuses Allana Potash of Tax Evasion

Ethiopia-pm-accuses-allana-potash-of-tax-evasionJanuary 16, 2017 - Prime Minister Hailemariam Dessalegn on Monday accused Allana Potash, the Canadian company which was engaged in potash mineral exploration and development project in the Afar Regional State, of tax evasion, according to Reporter.

In a press conference held in his office on Monday morning Prime Minister Hailemariam was asked about the state of the Ethiopian mining sector and the exit of prominent mining companies such as Allana Potash and Israel Chemicals Ltd (ICL).

Hailemariam said that the case of Allana was related to tax evasion. “Allana owes the Ethiopian government some two billion birr

Cars Too Expensive in Ethiopia

cars-too-expensive-in-ethiopiaJanuary 16, 2017 - Owning a car for many Ethiopians - even those with ready cash to spend in one of the world's fastest-growing economies - remains a pipe dream.

"I have been saving for nearly four years now, and I still can't afford to buy even the cheapest vehicle here," a frustrated Girma Desalegn tells me.

He has been shopping around for a whole week in capital, Addis Ababa, and has still not found an affordable car.

He is looking to buy a second-hand car imported from the Gulf states or Europe - but even they are prohibitively expensive because the government classifies cars as luxury goods

Ethiopia Forms Committee to Combat Black Market Currency Trading

ethiopia-to-combat-currency-black-marketJanuary 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

Chinese Energy Firm Begins Drilling in Ethiopian Somali Region

somale-oil-fieldJanuary 11, 2017 - A Chinese firm, Poly-GCL, yesterday began drilling the 6th petroleum and natural gas well at Hilal- 7 gas field in Ethiopian Somali regional state, according to FBC report.

Poly-GCL, one of the companies engaged in natural gas exploration in Ethiopia, has so far drilled five deep gas wells around Calub and Hilala areas at the Ogaden basin.

The company had officially started yesterday the drilling of the 6th gas well-called Hilal-7, in the presence of Motuma Mekassa, Minister of Mines, Petroleum and Natural Gas and La Yifan, Chinese Ambassador to Ethiopia.

In an interview with EBC, Motuma Mekassa said the country wi

Haile Gebresilassie Seeks Plot of Land for Hyundai Assembly Plant

Haile-investing-car-manufacturingJanuary 10, 2017 - The legendary long distance athlete and investment tycoon, Haile Gebresilassie, said that he is still waiting for the approval of the Addis Ababa City Administration cabinet to secure a plot of land he requested to build an assembly plant for the Korean vehicle brand Hyundai in the southwestern outskirts of Addis Ababa.

However, sources told The Reporter that the city cabinet had a meeting last week where it evaluated Haile’s request for land but rejected it because the requested land size is too large in view of the current shortage of investment land. However, sources further

Ethiopia Earns USD 872 mln from Tourism in One Quarter

Ethiopian-tourismJanuary 10, 2017 - Despite the mounting fears and speculation that the State of Emergency (SoE) is likely to affect the tourism sector, the Ministry of Culture and Tourism said on Thursday that in the first quarter of the current fiscal year the nation has managed to bag some USD 872 million exclusively from foreign tourist flows.

The newly appointed Minister, Hirut Woldemariam (PhD), who appeared at the House of People’s Representatives (HPR) on Thursday to respond to questions from MPs on current affairs said that the tourist flow to the country has increased in past three months defying speculation and fears of violence th

Ethiopia May Offer Foreign Companies Stakes in Some State Firms - PM

PM-EthiopiaJanuary 10, 2017 - Ethiopia aims to offer foreign firms stakes in some state-owned companies to help modernise the businesses, the prime minister said on Monday in a shift from stressing state investment to drive growth, according to Reuters.

The move would include offering a stake in state-owned Ethiopian Shipping and Logistics Services Enterprise, Prime Minister Hailemariam Desalegn told a news conference, without naming other firms or giving the size of any stakes on offer.

It was not immediately clear if the initiative would mean opening up the state-run telecommunications sector or banks, which are either owned by the government or privat

Ethiopia Inflation Falls to 6.7pct in December - Agency

Ethiopia-inflation-fallsJanuary 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 Will Meet Chinese Loan Commitments - Standing Committee

Ethiopia-will-meet-chinese-loan-commitmentsJanuary 1, 2017 - Two weeks after Members of Parliament requested the Budget and Finance Affairs Standing Committee to assess the nation’s debt repayment capacity, the Standing Committee told of the Houses of People’s Representative (HPR) on Tuesday that the loan Ethiopia plans to secure from Chinese banks would not burden the country’s finances and that Ethiopia has the capacity to repay the loans, according to the Reporter.

Now three loan agreements have been approved and will finance two road construction projects in Addis Ababa and upgrade the capital's electric grid system.

One of the three project

Private Freight Forwarders May Be Allowed in Ethiopian Shipping Business

Private-shipping-may-be-allowed-EthiopiaDecember 30, 2016 - The Maritime Affairs Authority is going to introduce an alternative scheme for private freight forwarders and shipping agents to be part of the multimodal (land, sea, or road) transportation service, reports Capital.

The multi modal scheme has been solely operated by the state owned Ethiopian Shipping and Logistics Services Enterprise (ESLSE) for the past eight years.

The draft directive that will be tabled for discussion with stakeholders stated that the private freight forwarders will operate the system.

The draft directive that Capital obtained indicated that selected private movers wi

Ethiopia, Turkey Signed Multiple Cooperation Agreements

Turkey-Ethiopia-sign-agreementsDecember 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

Chinese Firm to Build Pulp and Paper Factory in Ethiopia

New-paper-factory-in-ethiopiaDecember 27, 2016 - A newly-established joint venture Purewood Pulp, Paper and Packaging PLC is said to have invested USD 60 million to set up a manufacturing plant on a 68,000sqm plot located inside the Eastern Industry Zone, the first Chinese built and owned industrial park in the country, according to the Reporter.

Mahir Ismail, general manager of Ismail Ture Business PLC, the local partner of the joint venture with 45 percent share, told The Reporter that the new pulp factory will have an installed capacity of manufacturing 10,000 tons of toilet paper, 15,000 tons of Kraft paper and 7,500 tons of cartons per year.  According to Mahir

Legendary MegaCorp Partners with Ethiopian Defense Construction Enterprises

Legendary-MegaCorp-partners-Ethiopia-defenceDecember 25, 2016 - A United States infrastructure development firm, Legendary MegaCorp, has partnered with the Ethiopian National Defense Construction Enterprise and Construction Materials Manufacturing Enterprise to establish a new share company that will engage in the production of modern construction materials with an initial investment of 10 million dollars, according to Reporter.

In a joint press conference held yesterday at the Sheraton Addis, executives of the three companies told local reporters that the new share company dubbed Legendary Defense Products will produce and supply modern construction technologies to the local

Bole International Airport Expansion Project Forty Percent Complete

Bole-international-airportDecember 25, 2016 - The Ethiopian Airports Enterprise (EAE) launched expansion project for Addis Ababa Bole International Airport passenger terminal in January 2015. The project is now 40% complete. The project includes the expansion of Terminal 1 and 2 and the construction of a new VIP Terminal.  The expansion project aimed at building a new terminal with a floor area of 74,000sqm. The existing terminal has a floor area of 30,000sqm. The new terminal will have three floors—arrival, departure and ground floor. The expansion of Terminal 2 is being undertaken on the left and right side of the existing Terminal 2. On the right sid

Ethiopian Revenue Authority May Raise VAT withholding

Ethiopian-revenue-raise-VATDecember 22, 2016 - The growing number of requests for tax refunds is causing the government to consider increasing the withholding percentage from Value Added Tax (VAT), reports Capital. In the first four months of the budget year over 2.6 billion birr was slated to be refunded. There have been so many refund requests that companies have been complaining about delays in receiving them.

During the latest meeting with high tax payers, Ethiopian Revenue and Customs Authority (ERCA) officials said there have been significant increases in the amount of tax refund requests. Desta Bezabeh, Deputy Director for Inland Revenue of ERCA, said that ERCA has been a

Mauritian Company Acquires Ethiopian Government Share in Ambo Mineral Water

Mauritian-company-buys-shares-ambo-mineral-waterDecember 17, 2016 - Mauritius-based company, Ambo International Holding Ltd., has acquired 33 percent of government’s share in Ambo Mineral Water SC, bottler of the popular Ambo mineral water, at a price of USD 19.7 million.

The acquisition agreement was signed on Thursday at the offices of the Ministry of Public Enterprise in the presence of top officials of the ministry and the company. The newly appointed Minister of Public Enterprises, Girma Amente (PhD) and Ambo International Holding Limited representative, Patric Planket signed the deal representing their respective sides.

After the

Highest Bidders Failed to Show Up in Escalating Mercato Land Prices

Addis-KetemaDecember 13, 2016 - Thirty seven land lease winners of the 24th round of the Addis Land Management Bureau auction failed to pay their down payment on time and as a result the Bureau will allow those who were placed second in the bidding to lease the land at the same price as the first bid, according to Capital.

According to the Addis Ababa Land Management Bureau’s regulations if the winner of the bid does not come in to sign their contract and make a down payment then the second place offer gets a chance to purchase the land but at the price offered by the first winner. If, after 10 days they do not sign a contract the land is sent back to a land bank and

Holland Car Founder Requests PM to Intervene

Holland-carDecember 13, 2016 - One of the two founders of car assembler Holland Car Plc, which is under liquidation, is asking the Prime Minister to intervene in the company’s corruption case, according to Capital.

Tadesse Tessema (Eng.), flew to Addis Ababa from his base in Rotterdam, Netherlands early this week, to file a claim with Prime Minister Hailemariam Dessalegn. He sent a copy of his letter to other government agencies responsible for investigating corruption cases.

In a copy of the letter, which Capital obtained, he alleged that actions taken by the Liquidity Supervision Commission of Holland Car Plc, which was appointed by the court, are illegal. He

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