2021 – Page 11 – Ethiopian Business Review

Electronic tax payment system dubbed e-tax is launched, in a bid to enable businesses to pay tax online. The Ministry of Revenue has signed agreement with five banks that includes Birhan International Bank, Dashen, Commercial Bank of Ethiopia, United Bank, and Awash International Banks, today at Hyatt Regency Hotel. Other banks are expected to follow suit.
e-tax is developed by Derash, a platform formed under the Information Network Security Agency (INSA). The system is highly expected to reduce taxpayers’ strains and queues while paying tax physically, at the ministry’s branches.

The Ethiopian government announced Eritrean troops are leaving the Tigray region of Ethiopia, after participating in Ethiopia’s military operation against the outlawed Tigrayan People’s Liberation Front (TPLF).

Zamzam Bank SC has started operation naming its first branch Alif, located around Wollo Sefer, Bole district in Addis Ababa. Zamzam has become the first full fledged non-interest bank to operate in Ethiopia. The grand inauguration ceremony today was attended by Yinager Dessie, governor of central bank of Ethiopia, and Grand Mufti Haji Idris, among others.

The first telecom engineering training center dubbed Huawei-AAU ICT Practice Center is launched inside Addis Ababa Institute of Technology, in partnership between AAU and Huawei Ethiopia. The center targeted capacitating over 2,000 engineers and instructors over the coming three years span.

The Ethiopian Ministry of foreign Affairs called the decision ‘ill-advised measure to unnecessarily overshadow the elections’, in a statement released on May 24, 2021. US president Joe Biden’s administration restricted economic and security assistance to Ethiopia, followed by visa restrictions on Ethiopian and Eritrean officials in relation with the six months military
operation in Tigray region of Ethiopia.

Aiming to improve the stability of the banking industry by creating well capitalized banks that can mobilize massive financial resources that are needed to speed up economic growth, the National Bank of Ethiopia (NBE) recently raised the minimum paid-up capital requirement for banks ten-fold to ETB5 billion with various grace periods.

The G-20 introduced the Debt Service Standstill Initiative (DSSI) early in 2020 to suspend sovereign debt repayments of least developed countries (LDCs), so they can redirect their resources to fight COVID-19. The suspension period, originally set to end on December 31, 2020, is now extended to December 2021.

Over the last two years the number of entrant banks has proliferated, almost equaling the amount of working banks. Nonetheless, a new directive issued by the caretaker National Bank of Ethiopia has shut the door on the further entrance of new banks, whilst also raising the bar on smaller banks and the close to 20 already in the pipeline.
Banks are now expected to raise their minimum paid-up capital to ETB5 billion within five years from the existing ETB500 million mandated in 2011. Although central bank authorities stress the intention is to discourage unbalanced proliferation and nurture few competitive banks, industry leaders and experts claim that this move is the interest of the leading banks. Up to six existing private banks are forecasted to consider merging, while a substantial number of under-formation banks will either abort their efforts or join hands. EBR’s Ashenafi Endale investigates the implications of the new move.

Fikadu Digafe is Chief Economist and Vice Governor of the National Bank of Ethiopia (NBE). He strides in the most laboring job in the central bank ever since the bank started baptizing itself with reforms ensuing the landslide reshuffle of October 2019. He was previously in charge of external economic analysis and international relations at the bank. For many years, Fikadu has been engaged in the research works of the central bank, including scripting for the quarterly bulletin of the bank, Birritu.

Coal is the second-most used source of energy globally. Primarily used for power generation, it is the raw material of choice for 40Pct of electricity production worldwide. With an estimated 430 million metric tons of coal deposits in the country, the Ethiopian government is trying to utilize this resource by encouraging small- and large-scale coal producers and investors. As a result, the country has managed to satisfy 40Pct of its annual demand from the local market. However, the quality of the coal produced is of poorer quality compared with imports from countries like South Africa. Resultantly, manufacturers going local are incurring additional costs. EBR’s Ashenafi Endale explores.

e-tax goes live

‘Eritrean Troops are Evacuating’, Ethiopian Attorney General

Zamzam Bank Opens First Door

AAU Team up with Huawei to Produce Telecom Engineers

Ministry Denounces US Visa Restrictions, Sanctions

Use different parameters to facilitate different banks!

Top 10 Countries’ Savings from G-20’s Debt Service Standstill Initiative (DSSI)

Five Billion or Merge!

“The Private Sector is not Bold Enough to Set up Specialized Banks.”

Can Ethiopia’s Coal Bonanza Substitute Imports?