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Ethiopia’s modality for coffee exports has shifted from the Ethiopian Commodity Exchange (ECX) to vertical marketing. During the 2020/21 Ethiopian fiscal year that ended June 30, 2021, over 90Pct of the 248,000 tons of coffee was exported through the new modality which is outside of ECX’s platform—earning the nation a record high income of USD970 million. This value has only been in the range of USD600 to 800 million during the past decade. The price of regular Ethiopian coffee also jumped in the international market from USD2,800 two years ago to the current USD4,000 per ton—a surge of 35Pct. Specialty coffee fetched around USD70 per kilogram. However, USD370 per kilogram was the winning bid of the Cup of Excellence coffee auction.


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The fifth World Leather Congress and International Union of Leather Technologists and Chemists Society IULTCS is set to feature Skylight Hotel in Addis Ababa, from November 1 to 5, 2021. Ethiopia was picked for the event, after fulfilling various requirements among interested peer African countries. The annual episode was skipped in 2020, due to covid19.



Throughout history, Ethiopians have fought with external enemies numerous times but also frequently with each other. Even after the birth of modern Ethiopia, war, insurrection, and rebellion has continued. This infighting has drained the nation’s resources and withheld it from development and progress. Not long ago, Ethiopia hosted one of the bloodiest civil wars in history. The military spending during in the 1970s and 1980s drained the national budget and left Ethiopians to crawl into the poverty trap.


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Zemedeneh Negatu is currently Chairman of Fairfax Africa Fund, a US-based firm engaged in investment banking and private equity financing in sub-Sahara Africa, including Ethiopia. He is also one of the promoters of the under-establishment Selam Bank which intends to disburse ETB200 billion as mortgage loans to finance 100,000 housing units in its first five years of operations. EBR sat down with Zemedeneh to discuss the endeavors of Selam Bank and the challenges it expects to face.


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Vera Songwe is the UN Under-Secretary-General and 9th Executive Secretary of the Economic Commission for Africa (ECA), becoming the first woman to lead the institution in its 60-year history. Many portray her as a reliable ally and pathfinder as Africa aspires an economic union. Capable and hardworking, she is navigating uncharted territory while trying to mold a strong economy out of Africa’s weak institutions and imperfect politics. She is also going the extra mile in convincing western nations to give pandemic relief.
The Cameroonian holds a PhD in mathematical economics from the Center for Operations Research and Econometrics, a master of arts in law and economics, and a diploma of advanced studies in economic science and politics from Université Catholique de Louvain in Belgium. She also holds a B.A. in economics and political science from the University of Michigan. Prior to ECA, she held a number of senior leadership roles with the International Finance Corporation (IFC) and the World Bank.


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Missing out on rain is equivalent to relinquishing the harvesting of crops in Ethiopia’s rain-based agricultural system. As Ethiopia’s chief cultivation season arrives alongside the major rainy season, over 2 million farmers have abandoned their farms to find shelter in safer areas. Ethiopia’s internally displaced population is still out of control three years after the challenge started rising.
But the recent influx of dislodged people in high agricultural corridors including northern Shewa, Wello, western Oromia, Benishangul, and of course, Tigray comes at the crucial time of Ethiopia’s major farming season. As farmers have not prepared the land for the tilling period that ends in June, the upcoming Meher harvest season is forecasted to experience substantial setbacks. The uncultivated lands will result not only in production reductions, but will also place its society in a cyclical fight against poverty. Humanitarian assistance for farmers is stressing the nation’s coffers. Also, as farmers supply 30Pct of their production to markets, the reduction will also contribute to food inflation. EBR’s Mersha Tiruneh assessed the disruption which conflict and farmers’ displacement are pouring onto agriculture and the economy at large.


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Nejib Ababiya, Founder and Chairman of Rift Geothermal, is currently developing an initial 300 MGW power plant with TMGO and Corbetti in Ethiopia. With his over 30 years of leadership experience especially in the mining and energy sectors, he founded Allana Potash, a company engaged in potash production, which he later sold to Israel Chemical, one of the largest potash and specialty chemical companies in the world. Nejib, born in Jimma, Ethiopia and migrated to Canada in 1979, has also founded other companies engaged in mining and energy. His current project with the company TRI is due to start construction of its gold mine in northern Ethiopia. Ashenafi Endale of EBR spent time with the serial entrepreneur to gain insights.


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The urban poor in Ethiopia are being hit by the invisible hammer that’s getting larger in size day by day. It is hard to recall a time where inflation was so prevalent and unrelenting. Even salaried workers—most employed by the government—are falling below internationally accepted thresholds of poverty. Former middle-class residents are now slipping into the low-income bracket and are utilizing consumer association shops to access basic commodities at cheaper prices that were previously destined for the poor. Further down, those with low incomes are falling into the ‘poor of the poor’ level, which can only be handled through direct support including the SafetyNet program. The administration is exerting efforts to help with the pain, but the underlying causes are yet to be tackled. Subsidies and direct payments to urbanites can only go so far as the regime’s pockets are getting shallower. EBR takes a close look at the toll inflation is inflicting upon urban residents and possible coping mechanisms both structurally and temporarily.




Ethiopian Business Review | EBR is a first-class and high-quality monthly business magazine offering enlightenment to readers and a platform for partners.



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