| Development Bank of Ethiopia Forming Asset Management Company
July 22, 2017 - The Development Bank of Ethiopia has finally got the go-ahead from the National Bank of Ethiopia to establish a company which will mainly deal with management of assets under its ownership, according to the Reporter.
The bank has been in consultation with the central bank as well as the Ministry of Trade to get the permission for this service.
The new company, which is called Ethiopian Capital and Investment PLC, has been established with a capital of 10 million birr, where DBE owns 99.9 percent of the company.
This has come following DBE’s legal and institutional limitation to administer factories and companies
| Toyota Targeting Ethiopian Market
July 22, 2017 - Toyota Tsusho Corporation, a Japanese company, globally known in automotive manufacturing, has targeted Ethiopia as its new African destination in the coming few years, according to the Reporter.
Yoshihiko Yokoi, vice president of Toyota Corporation, who is also chairman of Japanese Association of Corporate Executives, told The Reporter that Ethiopia will be the next destination for the company he is leading and for other Japanese investors, as well.
As a startup, Toyota has already finalized a deal to joint venture with another Japanese company and enter the Ethiopian market, the vice president tol
| Ethiopia Bags the Highest Revenue from Privatization in Its History
July 18, 2017 - The government of Ethiopia announced that revenue from privatization has grown by 5 folds. By the beginning of the fiscal year, the Ethiopian Ministry of Public Enterprises (MoPE’s) plan was to collect 2.11 billion Birr from privatization; however, according MoPE’s latest report it has earned 12.6 billion Birr during the period. The performance was the highest Ethiopia ever saw.
According to Wondafrash Assefa, public relations head of Ethiopian Ministry of Public Enterprises, the difference in the target and performance was due to the fact that the deals were unpredictable. “They are already under a joint
| Ethiopia’s Tulu Kapi Gold Mine Gets $135mln Finance
July 18, 2017 - KEFI Minerals, London-listed gold and copper deposits exploration and Development Company, has agreed a finance package for the construction of its gold mine project in Ethiopia. The new agreement is expected to augment Ethiopia’s gold production. Gold is Ethiopia's main mineral export and has been mined since ancient times, primarily as alluvial or free gold. At present, Ethiopia has a single large-scale gold mine, Lega Dembi, in the southern area of the country, owned by Midroc (98%) and the Ethiopian government (2%).
KEFI’s Tulu Kapi project in the South western part of Ethiopia has a probable Ore Reserve of 1.0 million ounc
| Ethiopia Plans to Increase FDI by 10 Fold: Official
June 19, 2017 - Ethiopia plans to increase Foreign Direct Investment by 10 times from the 3.2 billion dollars recorded in 2016, said a government official on Friday.
The statement was made by Arkebe Oqubay, Special Advisor to Ethiopian Prime Minister Hailemariam Desalegn, explaining the reasoning behind the country's infrastructure spending spree.
Ethiopia is currently building road, rail, air and higher education infrastructure to meet that goal.
Oqubay was speaking on the sidelines of an event in Addis Ababa promoting the planned grand production inauguration on June 18 of the Hawassa Industrial Park (HIP), located 275 km south of
| World Bank, Ethiopia Sign 645M USD Loan Agreement
April 10, 2017 - The World Bank has extended 645 million USD in the form of loan for the implementation of development projects in Ethiopia, according to ENA.
The fund will finance activities aimed at enhancing water supply and sanitation services, improve efficiency of trade and logistics infrastructures as well as quality assurance.
Of the total amount, 445 million USD will be used to enhance water supply and sanitation services in the capital Addis Ababa and 22 cities across the country.
The project is aimed at scaling up water supply and sanitation services in the cities is expected to impr
| Ethiopian National Bank Amends Foreign Currency Directive
April 2, 2017 - The National Bank of Ethiopia has slightly changed a directive which was introduced a year ago to regulate allocation of foreign currency exchange (forex) in a transparent manner, according to the Reporter.
The amended directive, like the old one, focuses on allocating forex on first-come, first-serve basis. It repeals the tradition in the banking industry where exporters were allowed to gain better access of forex currency.
The latest directive has modified the way application registration is reported to the national bank. According to the amended directive, each bank shall send the foreig
| Ethiopian Ministry Licenses Indian Mining Company
February 17, 2017 - The Ministry of Mines, Petroleum and Natural Gas issued a license to MSP Steel & Power Ltd., an India-based company, in small scale mining production in Oromia regional state.
The Ministry licensed the company to engage in the extraction of minerals in West Arsi Zone of Oromia regional state for a period of 10 years, the Ministry told ENA.
According to the contract agreement, the company is expected to extract 1.5 million kilo grams of magnetite and Ilmenite on an area of 10.2429 square meters.
The license can be renewed for a period of not more than 5 years upon the request
| 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