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Ethiopian Central Bank Issues New Directive on Foreign Currency

Ethiopia-National-Bank-ForexNovember 30, 2017 - The National Bank of Ethiopia (NBE) has issued new directives on foreign currency related issues to promote foreign direct investment and export, reports FBC. NBE Foreign Exchange Director, Yenehasab Tadesse revelaed this during a dialogue organized by the Ethiopian Investment Commission on foreign currency and immigration related issues.

According to Yenehasab, the bank has issued a directive to all banks to allocate 40 percent of their foreign currency to priority sectors. The priority sectors can also obtain up to 60 percent external loan and sub-price credit that allow investors to get machinery and equipment from abroad.

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Ethiopian Tax Authority Collects 63 Billion Birr Tax; Missed Target

Ethiopian-Tax-Authority-misses-targetNovember 24, 2017 - Ethiopia’s government has collected 63 billion Birr from tax in the first quarter of the current fiscal year, disclosed the Ethiopian Revenue and Customs Authority (ERCA).According to Moges Balcha, Director General of ERCA, the tax collected had missed the target set for the period at the beginning of the current fiscal year, 72 billion Birr. The target for the fiscal year was 230 billion Birr, he added.

It was only 60 percent of the entire 16,000 taxpayers that reported profit that presented their taxable income, Moges added. Around 28 percent of these taxpayers, reported loss, he furthered.

Ethiopia's PrivateBanks Oppose New Central Bank Directive

National-Bank-DirectiveNovember 2, 2017 - Following the devaluation of Ethiopian birr by 15 percent, the National Bank of Ethiopia (NBE) issued a directive for commercial banks to channel all the windfall earnings they generated from the sale of foreign currencies to the central bank.

Ethiopian commercial banks believe the directive could harm them, but NBE says it will help stabilize the economy.

Some experts argue that the move by the NBE to take all windfall earnings from them is not reasonable.

On the other hand, NBE told commercial banks to reduce the amount of loan they give for local purposes, except for the export trade.

At the beginning of the

Ethiopia’s Centarl Bank to Begin Trading Bonds in Secondary Market

National-Bank-EthiopiaOctober 7, 2017 - The National Bank of Ethiopia (NBE) will begin trading bonds in the secondary market this Ethiopian fiscal year (2017/18), reports FBC.The plan was delayed by two years because of failure to conclude the necessary studies at the required time, according to Dr Yohannes Ayalew, vice governor of NBE. As the system is new to Ethiopia, the preparation period took more time than expected.

“However, since all the necessary reparations are completed now, we will begin it this Ethiopian fiscal year,” he said.

Dr Yohannes said the scheme will increase the demand of the people for bonds, create opportuniti

Ethiopia: Hawasa Emerges Top City for FDI Jobs

Hawassa-Industrial-ParkSeptember 19, 2017 - Ethiopia’s southern city, Hawassa, has become top in terms of creating jobs from foreign direct investment in the first half of 2017, fDi Intelligence reveals. The Ethiopian city has created 6,546 jobs during the specific period putting it at the top among Middle East and African countries, according to fDi Intelligence.
 
The Hawassa industrial park, which started operation four months ago, has helped the town to create more jobs.
 
The park, which is the largest apparel and textile park in Africa, is expected to employ 60,000 Ethiopians upon fully operational.
 

Ethiopian Government Orders Private Banks to Cover ESLSE Forex Needs

Ethiopian-ShippingSeptember 12, 2017 - In unprecedented move, the National Bank of Ethiopia (NBE) directed all of the private banks to sell 15 million dollar worth of foreign currency to Ethiopian Shipping Logistics Services Enterprise (ESLSE) to cover port payments to Djibouti, according to Ethiopian English weekly newspaper Addis Fortune.

The money will be used to pay the debt of the Enterprise for the port of Djibouti. The order comes amidst the shortage of foreign exchange throughout Ethiopia, which put businesses in a tight situation, and a decline in Ethiopia’s export earnings and remittance, which are the primary source of foreign curren

Development Bank of Ethiopia Forming Asset Management Company

Development-Bank-EthiopiaJuly 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

Toyota-targeting-Ethiopian-MarketJuly 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

Ethiopian-PrivatizationJuly 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

KEFI-MineralsJuly 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

Ethiopia-FDI-10xJune 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

Ethiopia-Signs-Loan-Agreement-with-WBApril 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

National-Bank-amends-directiveApril 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

Ministry-licenses-indian-mining-coFebruary 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

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

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, 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

Overvalued Birr Undercutting Competitiveness - WB

WBThe 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

BirrDecember 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

DBE-PresidentNovember 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)

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