Economy News - Ethiopian News

By Abel Merawi

August 5, 2020 (Ezega.com) -- Being poor is no joke, especially when poverty is a national reality. It ought to be taken seriously. Some naively imagine the poor as weak and lazy; as if people can escape poverty if they simply choose to work harder. Being poor is also a probability that constantly keeps the middle class on their toes. Just imagine how long it will take you before you fall into poverty if you lose your current job. When your income is barely enough to bounce from one month to the next and when you find it hard to meet ends meet, saving becomes a phantom. As poverty looms over most households, it is essential to e

By Abel Merawi

February 20, 2020 (Ezega.com) – On a typical day, it is usual to go to a shop and buy some goods. Perhaps, you wanted to buy some onions and the shopkeeper tells you the price is 20 birr per kilo. You ask why and you’re told that the market is going up these days. You are not satisfied with the response, but you still buy the onions since you need it. On another occasion, you wanted to buy a shirt and the salesperson says its 800 birr. As usual in Ethiopia, you try to bargain by offering 300 Birr and you finally end p buying it 500 Birr. Still, you can’t understand why you were asked to pay 800

By Staff Reporter

October 30, 2019 (Ezega.com) -- Over 10 million young people are expected to access dignified and fulfilling work opportunities in Ethiopia by 2030, according to a new job-creation initiative launched by Mastercard Foundation.

Named Young Africa Works in Ethiopia, the initiative by Mastercard Foundation will seek to create employment opportunities for Ethiopian youth in partnership with Ethiopia’s Jobs Creation Commission (JCC). Mastercard Foundation has committed an initial USD 300 million for the project.

Young Africa Works in Ethiopia is aligned with the Ethiopian government’s pl

By Staff Reporter

September 19, 2019 (Ezega.com) -- The Addis Ababa City Government’s Trade and Industry Bureau has shut down more than 609 businesses and warned 2000 others allegedly for contributing to soaring inflation in the capital city.

In a briefing on Thursday, the head of city bureau, Engineer Emdaweq Abate, said shortage of basic goods, involvement of illegal brokers and businesses, as well as soaring contraband trade have caused galloping inflation in the metropolis.

According to the bureau, the contraband trade is widely going on in Addis Ababa where fruits and vegetables are sold at the heart of the city from tru

By Staff Reporter

September 3, 2019 (Ezega.com)-- Ethiopia has launched the first ever well-organized bamboo development and utilization strategy to exploit its bamboo resources, discloses an official and expert in the field.

Ashebir Wondimu, Senior Forestry Expert and Bamboo Focal Person of the Ethiopian Environment, Forest and Climate Change Commission told Ezega.com during a relevant meeting, the strategy aims to reduce poverty by creating job opportunities, ensuring green economic development and restoring degraded lands due to climate change.

The International Bamboo and Rattan organization (INBAR) has been implementing a bamboo d

By Staff Reporter

August 30, 2019 (Ezega.com) -- The Ethiopian government has introduced a home-grown economic reform as part of a solution to rectify the macroeconomic imbalance the nation has faced for some time.

Officials from the Ministry of finance and cooperation have disclosed that the country has faced critical macro-economic imbalance which is being exhibited through record high debt burden, critical shortage of foreign currency and rising inflation.

The ruling Ethiopian People’s Revolutionary Democratic Front (EPRDF) claimed that the Ethiopian economy has been growing by double digits annually for about a decade now, a figu

By Staff Reporter

August 23, 2019 (Ezega.com) – Last year, the government of Ethiopia announced plans to sell some key sectors of the economy, including Ethio Telecom, Ethiopian Airlines, and 13 sugar factories.

Following the announcement, some foreign companies have shown interest in these ventures, especially in Ethio Telecom. They include Vietnam's state-owned telecom company, Viettel, Johannesburg-listed MTN, and France's Orange.

The state-owned telecom monopoly has been earning the government hundreds of millions of dollars annually, contributing to the lion’s share of the country’s annual budget, which has

By Staff Reporter

August 17, 2019 (Ezega.com) -- Ethiopia is set to import four million quintals of wheat until the first week of September 2019 as part of an effort to ease the burden of souring inflation on the public, an official has said

Briefing journalists on Saturday, Public Relations Director of the Ministry of Finance and Economic Cooperation Haji Ibsaa said prices of food items, mainly wheat and other grains, have soared since June this year.

According to the Director, inflation rate on food items was reported 19.6 in June and 20.1 percent in July 2019. Similarly, the prices of food oil and sugar have increased for no

February 18, 2019 (Ezega.com) - The Ethiopian government has signed up a contract with a Chinese company to execute the pre-commissioning activities of the Grand Ethiopian Renaissance Dam (GERD) at a cost of 40.1 million US dollars.

The Ethiopian Electric Power (EEP) signed the agreement with China Gezhouba Group Co. Ltd (CGGC), which is expected to work aggressively in partnership with other companies in order to complete the project on schedule.

CEO of EEP Dr Abrham Belay and Representative of China Gezhouba Group Co. Ltd Ethiopia, Mr Wang, signed the agreement in Addis Ababa.

During the occassion, Dr Abrham

December 5, 2018 - Ethiopia announced that it will establish customs police to fight contraband trade, according to Ethiopian News Agency.

The Council of Ministers recently approved a proclamation for the establishment of the customs police as part of the fight against illegal trade that has beenflourishing over the years.

The new customs police will operate under the Federal Police of Ethiopia.

Ethiopian Minister of Revenues, Adanech Abebe, said the new police force will specifically work to control contraband trade, which is significantly affecting the country’s economy and a threat to the country.

November 14, 2018 - The World Bank Group is forecasting that the Ethiopian economic GDP is projected to grow 8 percent for the current fiscal year 2018/19.

According to the Bank, Ethiopia's GDP grew 7.7 percent for fiscal year 2017/18, and foreigh currency reserves are hovering around dangerously low levels.

Although the forecasted growth rate is a marked decline from previous years, it is still one of highest growth rates in the world.

Earlier this month, the International Monetary Fund (IMF) also forecasted similar growth rates for the Ethiopian economy. The IMF report indicated that Ethiopia's GDP w

By Staff Reporter

August 28, 2018 - The government of Ethiopia has closed more than 100 businesses which were allegedly involved in black foreign exchange market in the busiest commercial area around National Theater in the capital city, Addis Ababa.

The closure was carried out with the assistance of members of the federal police who seized tens of thousands of Birr, Dollar and other currency notes following unannounced search raid. They searched pockets, safe boxes and drawers of shop keeprs and owners who were normally licensed to sell ready made clothes.

The government in Addis Ababa led by D

By Staff Reporter

August 24, 2018 - The Ethiopian Revenue and Customs Authority seized over 1 billion Birr worth of contraband goods as they were being smuggled into and out of the country during the past Ethiopian fiscal year.

In a briefing on Friday, Communication Director of the Authority, Ephrem Mekonnen said 827.4 million worth of the contraband goods were seized while they were smuggled into the country.

Further, 179 million Birr worth of the contraband goods were captured as they were smuggled out of the country via the porous border.

The incoming contraband goods include clothes, different c

By Staff Reporter

August 22, 2018 - Ethiopia attracted more than $4 billion foreign direct investment (FDI) during the last Ethiopian fiscal year which ended on July 8, 2018.

In a presser on Wednesday, Meles Alem, spokesperson for the country’s Ministry of Foreign Affairs, said the nation had managed to attract 156 big companies during the year with a combined capital of over $4.1 billion.

Despite continued unrest and poor metrics for doing business in Ethiopia, including severe government red tape, FDI inflow to the country has accelerated in recent years, making Ethiopia one of the top performing African countries

August 11, 2018 - Oil companies engaged in exploration projects in Ethiopian Somali region have evacuated their staff to Addis Ababa, according to the Reporter.

This follows the deteriorating security situation in the region where conflict erupted in the regional capital, Jigjiga, and other places. Civilians have been killed and houses, business establishment and churches have been looted and torched in Jigjiga and other small towns in the region.

According to the Reporter, Poly GCL Petroleum Investments, the Chinese company engaged in oil and gas exploration and development projects in the Ogaden basin, has evacuate

By Staff Reporter

July 13, 2018 - The government of Ethiopia is considering taking measures against those individuals who are involved in dollar exchange in a black market, sources disclosed to Ezega.

The move comes after the country’s new Prime Minister Abiy Ahmed last week told parliament that his government had injected new dollars into the Ethiopian market to deal with the crisis.

Following his remark, the dollar exchange rate in Ethiopia’s black market has gone down to almost comparable levels with the exchange rate at the country’s commercial banks.

The exchange rate at the black market had

November 10, 2017 - Ethiopia’s government has forecast an overall 11 percent economic growth this Ethiopian fiscal year. The forecast by Ethiopian National Plan Commission is based on the performance of the first quarter of the budget year and an increase by 0.1 percent to that of last year.

In his presentation to HPR Budget and Finance Standing Committee today, National Plan Minister Dr. Yinager Dessie said Ethiopia’s economic growth has resulted in minimizing poverty and expansion of social services.

However, the country has been facing challenges in the export sector since the past four years.

The product mos

October 14, 2017 - As part of its effort to augment its textile sector, Ethiopia’s government has launched a 15 years National Cotton Development Strategy aimed at positioning Ethiopia as the top cotton producer in Africa.  The implementation of the strategy would enable Ethiopia to become top cotton producer in Africa from the current 10th place.

The strategy was launched with the view of tackling the challenges faced following ever growing demand for cotton in the country. The strategy is designed to increase the size of land cultivated with cotton to 250,000 hectares and one million hectares after five years and in 2032 respectively

October 5, 2017 - The government of Ethiopia has launched National Horticulture Development and Transaction Strategy, which aims at creating conducive environment for modernized horticulture development, reports Ethiopian News Agency.  The strategy will play a significant role in improving productivity and quality of horticultural products, said Tesfaye Mengistu, State Minister of Ethiopian Agriculture and Natural Resource.

Improving quality and productivity, as well as modernizing the sector are the priority areas expected to attain through the strategy. The strategy, to be implemented over the next ten years, will allow providing exte

September 30, 2017 - The World Bank on Friday signed a $1.3 billion loan and grant agreement with Ethiopia’s government to improve governance and fund an anti-poverty package that provides financial relief for Ethiopians facing food shortages. The WB said a loan of $700 million would be used to "improve equitable access to basic services and strengthen accountability in Ethiopia" in education, health, agriculture and other sectors.

The remaining $600 million was a grant to finance Ethiopia’s "Rural Productive Safety Net" scheme, which is handing out cash or food to 8 million people in exchange