Latest Ethiopian News - Business

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

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 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.

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

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

Ezana Mining Becomes Ethiopia's Second Largest Gold Miner

Ezana-becomes-second-largest-gold-minerMarch 7, 2017 - After a decade of exploration and building a gold processing plant in northern Ethiopia, Ezana Mining has become Ethiopia’s second large scale gold mining company, according to Capital. Ezega Mining is one of the sister companies in the Endowment Fund For Rehabilitation of Tigray (EFFORT).

The company plans to start trial operation this month at its Terakimti facility, in northern Tigray region, near Shire Endaselassie Town, 1067km from Addis Ababa.

A top official at the company told Capital that they will begin full scale production during the third week of April after the trial is evaluated

Qatar Company Seeks Land for Hospitality Project in Addis Ababa

Ezdan-Holding-Group-to-invest-ethiopiaFebruary 22, 2017 - Ezdan Holding Group, a giant company from Qatar, is looking at a plot of land around the African Union (AU) for its real estate venture project, according to Capital.

During a visit last year Sheikh Dr Khalid bin Thani bin Abdullah Al Thani, Chairman of Ezdan Holding Group, which is affiliated with the ruling family, expressed a desire to invest in the hospitality and real estate sector around AU.

He recently arrived as part of a delegation to pay a second visit to the city, meeting with top government officials, including Prime Minister Hailemariam Dessalegn. Sources at Addis Ababa City Administrat

Agro Processing Park Inaugurated in Humera

Humera-Agro-Processing-LaunchedFebruary 21, 2017 - The Humera integrated agro industrial park, the second of its kind in Ethiopia, was officially launched by Prime Minister Halemariam Desalegn, according to ENA.

This is part of the country's initiative to develop agro processing parks which enables the nation to process agricultural products with the aim of exporting value added items.

In his remark the Ethiopian Premier said that the agro processing park will enable the country to value add to its livestock, fruits &vegetables, cereal  and oilseed products that has been exported mostly as unprocessed.

The nation that has b

Genale Dawa III Power Project Nears Completion - Ethiopian Ministry

Genale-Dawa-III-near-completionFebruary 21, 2017 - The Ministry of Water, Irrigation and Electricity announced 91 percent completion of Genale Dawa III hydropower project, according to ENA.
The project, being built on Genale River at a cost of 451 million US dollars, will raise Ethiopia’s total electricity installed generation capacity to 4, 541MW from 4,260 MW now, once completed.

Dr. Engineer Sileshi Bekele, Minister of Water, Irrigation and Electricity visited the progress of the project recently.

“The project has reached at 91 percent completion status. Electrical and mechanical works which allow the dam to generate p

Investment Commission Finalizing New Industrial Parks Regulation

Ethiopia-industrial-parkFebruary 20, 2017 - Ethiopian Investment Commission (EIC) said it is finalizing a draft Industrial Parks Regulation that will mainly enable businesspersons to get one-stop services in the various parks across the country, reports ENA.

This was disclosed at a half-day consultative workshop on the draft regulation organized by the commission today.

Investment Commissioner Fistum Arega said the regulation will bring together government organizations scattered at various locations so that they can conveniently serve investors.

It will also help to manage and develop industrial parks, establish system and monitoring, and ensure the

Ethiopian Tourism Sector Challenges But Promising

Ethiopian-TourismFebruary 18, 2017 - In the midst of challenges faced by the tourism industry in the country, Ethiopia attracted 800,000 visitors last year, earning the country much-needed foreign exchange of USD 5.6 billion, according to the Reporter. This is decreased number from 2015 when the country hosted 900,000 tourists, the report indicated.

Jumia Travel, an online hotel-booking site, released its annual tourism report on Ethiopia at the Golden Tulip Hotel on Thursday, February 16th. The report highlighted challenges and achievements of the tourism industry in Ethiopia.

"Even though the challenges are many, prospects for the future are ins


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