Dashen Bank announced that its total assets have reached ETB 183.7 billion, reflecting a growth of 27 % over the last financial year. The bank held its 31st regular and 26th shareholders’ meeting today at Millennium Hall, where it discussed its performance from the previous year, plans for the upcoming fiscal year, and other relevant issues.
The Cooperative Bank of Oromia has announced a strategic partnership with InFTF, an international humanitarian organization focused on inclusive finance. This collaboration has resulted in the launch of Ethiopia’s first blockchain-powered remittance service, making Cooperative Bank of Oromia the first bank in both Ethiopia and Africa to offer this innovative solution.
The National Bank of Ethiopia (NBE) has granted operational licenses to five new Independent Foreign Exchange Bureaus, marking a significant step in the country’s financial sector liberalization. The bureaus, which met the minimum requirements outlined in the NBE’s Foreign Exchange Directive No. FXD/Ol/2024, are:
Ethiopia’s central bank has imposed a credit cap to tame soaring inflation, but the measure has unintended consequences for businesses, especially exporters. While inflation has eased since the bank introduced the policy a year ago, the credit crunch stifles economic growth. Economists advise policymakers to strike a delicate balance. According to economists, targeted credit measures, support for SMEs, and fiscal discipline are crucial. By fostering a conducive business environment and prioritizing key sectors, Ethiopia can achieve both price stability and sustainable economic expansion, writes EBR’s Eden Teshome.
As a landlocked country, Ethiopia relies heavily on the ports of Djibouti and Eritrea for its international trade, with the Red Sea serving as a crucial maritime corridor. However, the ongoing crisis in the region, which began on October 7 with Hamas attacking Israel, is having significant ramifications for Ethiopia.
EBR’s Eden Teshome delves into the challenges faced by Ethiopian businesses amidst the escalating conflict between the Houthi rebels in Yemen and Israel’s retaliatory strikes in the Red Sea. Ethiopian importers and exporters are feeling the strain, from rerouting shipments and enduring longer transit times to dealing with skyrocketing freight rates and potential infrastructure bottlenecks. This piece explores how this regional security issue disrupts global maritime trade and forces Ethiopian firms to explore alternative markets and distribution channels.
The International Monetary Fund (IMF) has announced a staff-level agreement with Ethiopian authorities on key economic policies, marking a significant step toward concluding the first review of a four-year, USD3.4 billion Extended Credit Facility (ECF) arrangement. This agreement, pending approval from the IMF Executive Board, would enable Ethiopia to access approximately USD345 million in financing.
Ethiopia’s proposed Asset Recovery Bill has sparked controversy. The bill grants broad powers to the government to seize assets suspected of being acquired through illegal activities, even without proven crimes. Critics fear the bill could be used to target political opponents and lacks sufficient due process protections. The retroactive application of the law is another primary concern. Legal experts, opposition parties, and even some public officials have raised concerns about the bill’s constitutionality. The lack of judicial oversight and the potential for abuse are significant risks experts raise. The Ethiopian government should carefully consider these concerns and prioritize upholding the rule of law. While asset forfeiture can be a tool to combat economic crime, strong safeguards are needed to prevent potential abuse. EBR’s Eden Teshome has spoken to experts and explored the experience of other countries to compile this report.
Afewerk Mengesha is a renowned Ethiopian artist who has significantly contributed to the country’s art scene. Born in 1943 in Addis Ababa, Afewerk was one of the first Addis Ababa Fine Arts School graduates in 1963. Despite facing challenges due to his hearing impairment, he pursued his passion for art and has since become known for his works exploring Ethiopian history, culture, and modern life themes. Afework’s artistic journey has been marked by perseverance, as he overcame obstacles to establish himself as a professional artist, working in various roles before focusing on his studio practice after retirement. His paintings, often executed in oil on canvas, have been exhibited at prestigious venues in Ethiopia, showcasing his ability to capture the essence of his homeland through his distinctive artistic vision, writes EBR’s Eden Teshome.
Ethiopia has long grappled with a reliance on imported construction materials, stifling the growth of its domestic industries. However, a renewed push towards local production is poised to transform the country’s construction and telecom landscapes. The government’s import substitution strategy has identified over 90 products, including telecom equipment and construction materials, to be produced domestically within the next decade. Companies like Woda Metal Industry have established local manufacturing facilities, providing network operators with telecom towers and other critical infrastructure. This shift towards domestic production is a significant catalyst for Ethiopia’s industrialization and economic development, unlocking cost savings, job creation, and export opportunities. By reducing reliance on imported materials, Ethiopia aims to build a more self-reliant, globally competitive economy bolstered by technological innovation and a thriving ecosystem of local suppliers and manufacturers, writes EBR’s Eden Teshome.
The recent policy change in Ethiopia regarding industrial parks and trade liberalisation presents opportunities and challenges for businesses and consumers in the country. By allowing companies in the industrial parks to sell up to 50% of their produce locally and opening retail/wholesale sectors to foreign participation, policymakers aim to boost domestic production, increase competition, and stabilise market prices amidst persistent inflationary pressures. However, the implementation and impact of these measures remain to be seen. EBR’s Eden Teshome has spoken to key stakeholders – manufacturers and consumers – to understand how these policy shifts will likely reshape Ethiopia’s economic landscape.
Eden Teshome