Ashenafi Endale – Ethiopian Business Review

Audiences can now access news and events as they happen with the help of social media platforms such as Twitter, Facebook, and YouTube. They are migrating from classical media to the digital sphere and, as a result, the underdeveloped mainstream media of Ethiopia is facing new challenges, competitors, and demands as well as expectations and opportunities. Especially for private press, which has been losing advertisers and failing to broaden its readership and coverage, this is bad news. EBR’s Ashenafi Endale explores the journey periodicals are taking to embrace social media.

The House of Peoples’ Representatives (HPR) blessed new ministers into PM Abiy Ahmed’s cabinet for the new under-formation government after Prosperity Party won June’s elections. The PM reshuffled the executive body with three ministers appointed from opposition parties.

Ethiopia used to rule all ports on the western side of the Red Sea, until it lost its last one to Eritrea in 1991, joining the pack of landlocked African economies. Over 90Pct of Ethiopia’s international trade—forecasted to almost double from the current 17.1 million tons to 30 million metric tons by 2030—has been utilizing the Port of Djibouti.

However, Ethiopia is currently exploiting additional ports in Kenya, Somalia, Djibouti, Sudan, and Eritrea. Following the opening of the Ethiopian logistics sector to foreign investors, these ports are planned to be linked with dry ports and economic and logistics facilities across Ethiopia. To that end, the Logistics Transformation Office, is currently finalizing the first Ethiopian logistics masterplan, which envisages interconnecting the nation through infrastructure including ports, roads, rail, aviation, pipelines, and transboundary rivers. Ashenafi Endale explores.

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Legal friction amongst businesses is a naturally occurring phenomenon. However, if there is no equally-dynamic venue and avenue to solve those frictions, business activity will get stuck. The normal court system which handles criminal cases and takes months and years to conclude, is too slow for business.

Though arbitration is globally preferred as the best business dispute settlement mechanism, Ethiopia has not had the necessary legal frameworks in place. Usually, business arbitration awards rendered in any country across the world are acceptable by the highest courts. However, this was missing in Ethiopia until the nation signed the 1958 New York Convention in 2021.

Until now, most business conflicts arising from contracts between Ethiopian businesses and foreign partners, have been arbitrated outside of Ethiopia. This has its costs in terms of undue foreign currency consumption, inability to receive fair arbitration, and misconception of Ethiopia as business unfriendly. Ashenafi Endale explores the new changes after the ratification of the convention, as well as the new local arbitration proclamation.

The Economic Commission for Africa (ECA) and International Chamber of Commerce (ICC) have jointly launched Centres of Entrepreneurship in Africa (CEA).

With strategic locations across Africa, the ECA – ICC Centres of Entrepreneurship will work with various stakeholders, including businesses, chambers of commerce, academic institutions, intergovernmental and governmental agencies, to connect local entrepreneurs to global markets and enhance regulatory conditions for SMEs to thrive.

Ethiopia is in preparation to set up one stop border service with Eritrea, in a bid to utilize Assab port.

“we have prepared customs protocol and the Ethiopian government has already submitted it to the Eritrean ministry of foreign affairs. We have finalized every preparation on Ethiopian side and we are waiting responses from Eritrean side,” said Debele Kabeta, commissioner of Ethiopian Customs Commission (ECC).

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“Kenyan drivers and traders are in problem because Ethiopian banks are refusing to accept Kenyan shilling,” said Mercy Ireri, secretary of Kenyan Transporters Association, during when Kenyan business delegation discussed with Ethiopian counterparts on September 15, 2021, at Radisson Blu hotel, Addis Ababa.

Libya Oil Ethiopia is tapping into side businesses as profit margins from fuel supply and retail in Ethiopia stagnate. With fuel companies discouraged, “we are focusing on partnerships with local banks and international food chains. Our target is to offer full packages with one-stop services at our fuel stations, in addition to fuel,” said Chokri Dridi, General Manager of Libya Oil Ethiopia Limited, which has over 160 petroleum stations across Ethiopia.

Safaricom Telecommunications Ethiopia Plc, has commenced deploying network infrastructure, importing equipment, and recruiting staff in Addis Ababa, in a bid to launch its telecom services by the first half of 2022. The company will channel USD300 million for annual network infrastructure outlays, out of the USD8.5 billion it promised to invest in Ethiopia over the course of the next ten years.

The National Bank of Ethiopia (NBE) drew four cards with the aim of “controlling galloping inflation by minimizing currency supply into the economy.” Implementation of the new measurements has already put commercial banks and insurance companies in a hot spot and will begin September 11, 2021—the first day of the Ethiopian new year.

Embracing Social Media

PM Abiy Molds New Government with Old Faces

Ethiopia Searches for Alternative Outlets

Arbitration: Commercial Dispute Settlement Mechanism

New Centre Targets Elevating Africa’s Entrepreneurship

Ethiopia, Eritrea Plans One Stop Border Trade

Currency Difference Deter Moyale One Stop Border Trade

Oil Giant Eyes Non-Fuel Businesses

Safaricom Ethiopia Courts Additional Investors

Central Bank Panics as Inflation Soars