Eden Teshome – Ethiopian Business Review

The Need for Balancing Economic Interests With Rule of Law

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 Captures Ethiopia’s Essence through Art

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’s Import Substitution Strategy Fuels Economic Growth

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.

Will Trade Liberalization, Local Production Uplift Consumers or Overwhelm Domestic Businesses?

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.

The National Bank of Ethiopia’s (NBE) latest report reveals encouraging progress in the fight against inflation. In April 2024, the country witnessed a significant decrease in inflation rates compared to previous years. Year-on-year inflation fell to 23.3%, marking a substantial ten percentage point decline from the prior year. While food inflation remains relatively high at 27.0%, non-food inflation has experienced a remarkable drop to 18.0%. Many attribute the decline to the slowdown in money supply growth. The report suggests that inflationary pressures will continue moderating, with a projected year-on-year inflation rate of approximately 20% by June 2024. These developments signal positive strides in Ethiopia’s efforts to achieve macroeconomic stability, EBR’s Eden Teshome reports.

The National Bank of Ethiopia (NBE) has issued a new directive aimed at regulating the investment activities of banks operating in the country. The “Limitation on Investment of Banks Directive No. SBB/92/2024” sets clear guidelines and restrictions on the types of investments banks can make.

The directive is intended to ensure sound and prudent practices in bank investment activities, promote diversification, and manage risk exposure. It also seeks to encourage bank investment in capital market service providers while ring-fencing banking business from capital market operations.

Dashen Bank, one of Ethiopia’s biggest private bank, has reported a profit of ETB 6.6 billion in the 2023/24 fiscal year, further solidifying its position as a dominant player in the country’s banking sector next to Awash Bank.

Established in 1995, Dashen Bank has grown to become a formidable institution, leveraging its innovative approach and expertise to drive consistent growth. According to the bank’s financial statements, Dashen Bank recorded a pre-tax profit of ETB 5 billion in the last fiscal year, representing a 31.9% increase compared to the previous year.

Awash Bank, Ethiopia’s private commercial bank, has announced a substantial increase in its profits for the 2023/24 fiscal year. According to the bank’s financial statements, Awash Bank reported a pre-tax profit of ETB 14 billion, representing a 42.85% increase from the previous year’s figure of ETB 9.8 billion.

The bank’s total assets also reached a new high, growing to ETB 224 billion as of June 30, 2023, up from ETB 95.6 billion recorded at the end of June 2020. Additionally, Awash Bank’s paid-up capital saw a significant increase of 42.85%, rising from ETB 10.2 billion to ETB 14.6 billion during the same period.

Eagle Lion System Technology, a technology company in Ethiopia, has announced the launch of TeleTV, the country’s first online cinema platform, in collaboration with Ethio Telecom. The platform aims to modernize Ethiopia’s movie rental industry by allowing users to stream and rent Amharic films digitally.

The TeleTV service enables users to easily rent movies by downloading the app or visiting the website at www.teletv.et. Starting July 5th, 2024, two recently released Amharic films, “Kelelitu Sidist Sat” and “Tizita,” will be available for rent on the platform.

Mulatu Astatke, the “Father of Ethio-Jazz,” is an iconic musician and cultural ambassador whose innovative blend of Ethiopian musical heritage and jazz improvisation has captivated audiences worldwide. While there’s no exact starting date, Mulatu Astatke’s musical interests emerged in the early 1950s and blossomed into active playing in the 1960s. This long career span has allowed Mulatu to leave an indelible mark on the global music scene. His compositions and performances showcase the beauty and complexity of Ethiopian music, fusing traditional scales, rhythms, and instruments with the harmonic structures and improvisational spirit of jazz. Through collaborations with renowned artists and his pioneering album “Mulatu of Ethiopia,” he has brought Ethio-Jazz to the forefront, shaping the cultural narrative and preserving Ethiopia’s artistic legacy. Mulatu’s legacy is one of inspiration, cultural preservation, and global recognition, leaving an enduring impact on the fusion of cultures, creativity, and cross-cultural understanding. In an exclusive interview with EBR’s Eden Teshome, Mulatu, the “Father of Ethio-Jazz,” shares his remarkable musical journey and vision.

Ethiopia’s Proposed Asset Seizure Bill

The Need for Balancing Economic Interests With Rule of Law

Finding Inspiration in Heritage

Afewerk Mengesha Captures Ethiopia’s Essence through Art

From Reliance to Resilience

Ethiopia’s Import Substitution Strategy Fuels Economic Growth

Ethiopia’s Economic Tightrope Walk

Will Trade Liberalization, Local Production Uplift Consumers or Overwhelm Domestic Businesses?

From Crisis to Control Ethiopia’s Inflation Story

National Bank of Ethiopia Issues New Directive to Limit Bank Investments

Dashen Bank Reports Profit of ETB 6.6 Billion

Ethiopia’s Awash Bank Reports Remarkable ETB 14 Billion Profit Amid Credit Cap Challenges

Ethiopia Launches its First Online Cinema Platform

Taking Ethiopian Music on the Global Stage was My Mission