Ethiopian Business Review

Ashenafi Endale

Ashenafi Endale

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Fiscal Federalism: Elusive Concept Far from Reality

Monday, 16 September 2019 03:00 Published in Topic

It was in 1995 that Ethiopia adopted federalism. The constitution also gives ultimate power to regions which formed the country. Although regions seem autonomous and independent, they have been losing economic power and have been surviving on subsidies from the central government. This makes Ethiopia’s fiscal federalism to be based on solidarity finance allocation from the center. This confusion is causing friction among regions and the federal government. EBR’s Ashenafi Endale explores.

Mobile Phone Assemblers on Verge of Extinction

Monday, 16 September 2019 00:00 Published in Investment

A few years ago, there were more than two dozen local mobile phone assemblers in Ethiopia. With the steady growth in demand, many of them reaped huge amounts of profit while increasing their productivity. But over the past 12 months, majority of them stopped operations because of the increased rise of the smuggled mobile phone market. This, coupled with the shortage of raw materials, pushed the local assemblers  to compete with the  contraband phones suppliers. EBR’s Ashenafi Endale explores.

Buying houses from real estate developers incur 15Pct Value Added Tax and six percent title deed transfer fee of an actual price tag. Additionally, real estate developers take more time to deliver housing units which further escalate cost of construction that ultimately push price tag further.
This makes houses built by real estate companies more expensive for the vast majority of Addis Ababans. As a result, house buyers have been looking for affordable options
Villas developed by unlicensed individuals have become one of the options. The unlicensed individual developers have lesser tax obligations and deliver houses for less at a shorter span of time. As a result, they are becoming more active in the housing market.
As their number increases, there is a fear that the market would become informal and out of the watchful eyes of the government. EBR’s Ashenafi Endale Explores.