Latest Ethiopian News - Business News

Ethiopian Airlines Signs $1.5bn Deal with British Engine Maker

Ethiopian-signs-agreement-BritishJune 23, 2017 - Ethiopian Airlines has signed a $1.5 billion dollar (Sh150 billion) deal with British engine maker Rolls-Royce as it continues to upgrade and expand its fleet to realise the ambition of dominating Africa’s skies, according to Nation.

The deal means all the 10 new Airbus A350-900 aircraft that Ethiopian Airlines has recently ordered will run on Rolls Royce’s Trent XWB engines.

The order also includes an engine maintenance plan for 14 of Ethiopian Airlines planes already in service or on order.

Two years ago, Ethiopian became the first airline in Africa to operate the A350 aircraft and current

Dangote Considers Shutting its Cement Factory in Ethiopia

Dangote-Cement-EthiopiaJune 23, 2017 - One of the biggest Cement factories in Ethiopia, Dangote Cement Plc, controlled by Africa’s richest man, Aliko Dangote, said it may shut its operations in Ethiopia if authorities in the central state of Oromia don’t reverse an order to cement makers to hand over control of some parts of their businesses to local young people, according to Bloomberg.

Oromia state’s East Shewa Zone administration wants the Nigerian company to outsource its pumice, sand and clay mines to youth groups or be responsible for “any problems” that may arise, according to a letter from the authority to Dangote

Ethiopian Airlines to Purchase Two 777 Boeing Freighters

Ethiopian-777-Boeing-FreighterJune 22, 2017 -- Ethiopian Airlines and Boeing have announced a commitment to purchase two 777 Freighters valued at $651.4 million at list prices.

The airline also announced an order for 10 additional 737 MAX 8 airplanes, exercising options from their 2014 order, which was the largest for the 737 MAX in Africa. Ethiopian now has firm orders for 30 737 MAX 8s.

The order was previously attributed to an unidentified customer on Boeing's Orders & Deliveries website.

"Building one of the largest cargo terminals in the world and operating new-generation, high-performance aircraft reflects our commit

Ethiopian Airlines to Evaluate A350-1000 Performance in Addis

Ethiopian-to-evaluate-A350-performaceJune 21, 2017 - Chief executive Tewolde Gebremariam, speaking at the Paris air show as he confirmed an agreement to take 10 more A350-900s, said the airline was still examining the -1000's capabilities.

He points out that Ethiopian is in the "unique situation" at Addis Ababa, some 2,400m above sea level. The city typically reaches its highest temperatures, up to 25C, around March-May.

"We have to see how [the -1000] performs at that altitude," says Gebremariam.

Airbus has already conducted high-elevation testing with the -1000 in South America, with take-off and landing

Raymond Targets Europe, US for Stitched Garments from Ethiopia

RaymondJune 20, 2017 - Indian fabrics and apparel major Raymond is looking to capture the stitched garments market in Europe and the US by exporting products from its new Rs 100-crore plant here.

The company has set a target of annual revenue of about Rs 250 crore within a year from the plant here by exporting mainly to the two developed markets.

It is looking to cash in on duty free access to the developed markets like the US and the Europe by setting up a plant here in Ethiopia, which has a trade pact with them.

"From this facility we are looking at an annual revenue of about Rs 250 crore from the exports to Europe and America in a year or so when the

China-Built Industrial Park to be Ethiopia's Blueprint for Green Economic Zones

Hawassa-Industry-ParkJune 17, 2017 - Ethiopia announced on Friday that its flagship Chinese-built Hawassa Industrial Park, designed and constructed according to environment-friendly principles, will be a model for other similar projects throughout the country.

The Hawassa Industrial Park, expected to be fully operational as of next week, is said to be the first Sustainable Textile and Apparel Industrial park in Africa with state-of-the-art infrastructure and facilities.

The east African country further hopes that the Hawassa Industrial Park, once fully operational, would help its aspiration and commitment to build a green economy.

Designed, c

Forbes Discloses 5 Ethiopian Billionaires

Forbes-Ethiopian-BillionairesJune 17, 2017 - A few Ethiopians have built multi-million and billion dollar empires in industries as diverse as agriculture, food, construction, energy and distribution and earned multi-million dollar fortunes to boot, according to Forbes. Their names don’t ring with the African public, and you’ve probably never heard about them before, but they are very successful — and very wealthy. Meet 5 Ethiopian entrepreneurs, who own businesses with annual revenues of $50 million or more.

1. Belayneh Kindie

Source: Agricultural Commodities

Belayneh Kindie Import And Export (BKIEA), the eponymous company Belayneh

Djibouti Opens New Port for Ethiopia Potash Exports

Djibouti-opens-new-portJune 17, 2017 - Djibouti on Thursday inaugurated a new port that will serve as the main gateway for potash exports from neighouring Ethiopia, the second of four new ports that will boost the tiny Horn of Africa nation's position as a continental hub, according to Reuters.

The port in the small fishing town of Tadjourah in the north of the country is the closest outlet for Ethiopia's Afar and Tigray regions, where a number of foreign companies are developing potash mines.

Built at a cost of $90 million, the port has capacity of 4 million tonnes of potash a year.

"Ultimately, 35 percent of the volume of goods des

Commercial Bank Directed to Stop Financing All Private Investment Projects

CBE-directed-to-discontinue-loansApril 27, 2017 - The National Bank of Ethiopia has directed the Commercial Bank of Ethiopia (CBE) to stop approving all private investment project loans as of April 10, 2017, and ordered investors to obtain loans from the state-owned Development Bank of Ethiopia ( DBE) instead, reports Capital Ethiopia. This includes all processed and new application requests, according to the report.

Investors in agriculture, manufacturing, hotels and exporters went to CBE last week but were turned away.

In the past year loan requests increased significantly, causing CBE to discontinue loans for water drilling and non-franchised hotels.


Chinese Company Building One Billion USD Light Industry City in Ethiopia

Ethio-China-IndustryApril 21, 2017 - The construction of Ethio-China Light Industry City, expected to producing footwear and apparel in large volumes, is progressing very well, according to ENA.

Hua Rong Zhang, Founder and President of Huajian Group, which is building the manufacturing zone, told ENA that the special economic zone is expected to be completed by 2020.

The industry zone is expected to consume one billion USD, according to Zhang.

Since its foundation was laid in April 2016 by Prime Minister Hailemariam Desalegn, the industrial zone has gained great attention and support from governments of both Ethiopia and China.

Zhang n

Ethiopia Cancels Over 50 Mining and Exploration Licenses

Ethiopia-cancels-mining-licensesApril 15, 2017 - The Ministry of Mines, Petroleum and Natural Gas (MoMPNG) of Ethiopia, has cancelled over 50 mining and explorations licenses, according to FBC.

Public Relation and Communications Director at MoMPNG, Bacha Faji, said the action followed the failure by several license holders to commence operations on schedule.

"We cancelled over 50 mining licenses recently, mainly because the companies have not started operations on time as per their agreement," said Bacha.

The law requires a company to commence exploration or mining within 90 days after signing a contract with the ministry.

Bacha s

New Registry System to Make Four Million Ethiopian Mobile Phones Obsolete

Ethio-Telecom-to-Start-Phone-RegistryApril 15, 2017 - Four million mobile phones will be out of service as Ethiopia is on the way to implement Equipment Identity Registration System (EIRS), according to the Reporter. Phones, whose International Mobile Equipment Identity (IMEI) number is not identified by the System, will be obsolete, according to new directive by the Ministry of Communication and Information Technology (MoCIT).

The new system, which was said to enter into implementation last month, was delayed as EthioTelecom and local mobile assemblers are yet to agree on how to replace the four million phones.

According to industry sources, the govern

Ethiopia May Allow Coffee Trade Outside ECX - Report

Coffee-trade-outside-ECXApril 11, 2017 - Ethiopian authorities may be opening up the Ethiopian Commodity Exchange (ECX), allowing coffee to be traded outside ECX through which all coffees exported from Ethiopia have passed since 2008, according to a news release sent this morning by Amsterdam-based green coffee trading company Trabocca.

Longtime green coffee trader and Trabocca Founder Menno Simons said in the announcement that the company’s seven-member team in Addis Ababa has learned that the Ethiopian government will allow coffee to be sold outside the ECX, beginning April 30, on a trial basis.

The ECX was formed in 2008 in an attempt to reduce price vol

Ethiopia to Build Industry Park in Adama with Over 250 Million USD

Ethiopia-to-build-industry-park-in-AdamaApril 11, 2017 - Phase III of Ethiopia-Hunan Industrial Park is going to be built in Adama city at a cost of more than 250 million USD, according to ENA.

At the industrial park Hunan Province investors will produce machineries, construction and agricultural equipment, it was learned.

Vice Governor of Hunan Province of China, He Baoxiang, signed the document for the construction of the park at the Ethio-China Trade and Investment Forum today.

Other three agreements were also signed by the Ethiopian government and Governor of Hunan State officials.

Chairperson of the Board of Et

Ethiopian Ministry Signs Agreement to Build Bole-Lemi Industry Park

Industry-park-bole-lemiApril 8, 2017 - Ethiopia's Ministry of Industry signed agreement with 13 local contractors for the construction of Bole Lemi Industrial Park, according to Capital. The project is estimated to cost 1.2B Birr.

The project that consists of five industrial hangar-like sheds, four office blocks and other relevant construction works at the park will be completed within three months of the signing day.

Tadesse Haile, State Minister of MoI, said at the signing ceremony held on Thursday November 15, 2012 at the ministry office, the industrial park will include over 30 local and foreign industries when it becomes operational.

Number of Ethiopian State Officials Running Public Enterprises Cut in Half

Number-of-officials-cut-in-halfMarch 21, 2017 - The newly formed Ministry of Public Enterprises announced that it has changed board management of public enterprises, according to the Reporter.  In a meeting that was held on Wednesday in the presence of senior members of the executive and legislative branches of government, the ministry disclosed the number of ministers and state minsters running public enterprises as board chairpersons and members has been limited not to exceed 50 percent.

Girma Amente (PhD), Minister of Public Enterprises told reporters that the new modus operandi (directive) has be

Turkish Investors Interest in Ethiopia Growing - Ambassador

Turkish-Investors-Keen-on-EthiopiaMarch 15, 2017 - Turkish companies’ interest in investing in Ethiopia is growing, says the country's Ambassador to Ethiopia, according to ENA.

President Mulatu Teshome held discussion with Turkish business delegation on Wednesday.

After the discussion, Ambassador Fatih Ulusoy said companies are interested to engage in the areas of construction materials, textile and garment as well as energy.

The Ambassador added, Turkey’s presence has always been very strong in the textile field and there are still many companies from Turkey that interested in moving their investments to Ethiopia.

Ethiopian Premier Lays Cornerstone for Agro-Industry Park in Southern Ethiopia

Cornerstone-agro-processing-SNNPMarch 14, 2017 - Prime Minister Hailemariam Desalegn laid cornerstone for the Integrated Agro-Industrial Park to be developed around Yergalem town in SNNP regional state, according to ENA.

Speaking at the occasion, the Premier said that the park will enable farmers improve quality and amount of production thereby transform the agriculture sector.

Farmers who were producing for only household consumption two decades ago when the extension program started, are now managed to harvest surplus that even pave the way for the opening of agro-industries, Hailemariam said.

He also added that the nation has reached at

Ethiopian Export Earnings Fell Far Short of Expectations

Ethiopian-exports-fell-short-expectationsMarch 11, 2017 - Ethiopia's seven-month export report reveals that the country's export performance fell short of expectations set for this period, according to the Reporter. According to plan, the country was expected to generate USD 2.48 billion in export earnings during the current fiscal year, but the result fell far short at only 1.4 billion dollars, showing a deficit of 57 percent. The numbers also show a shortfall of USD 37.5 million in export revenue compared to the same period last year.

Based on the analysis of the ministry, commodities that have shown a 50 percent o

Chinese Footwear Company Plans Major Expansion in Ethiopia

Chinese-footware-company-plans-major-expansionMarch 9, 2017 - Huajian Group, Chinese shoe manufacturing company, plans to create 100,000 new jobs in Ethiopia, according to FBC. Zhang Huarong, president the company, pledged that his company will help the country to become a new international manufacturing hub, according to the report.
“Chinese companies’ investment in Africa is a win-win solution for both sides. By building factories in Ethiopia, our company has created significant fiscal revenue for local authorities and offers more job opportunities for citizens. In return, we have enjoyed cheaper production costs and


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