Eden Teshome – Page 2 – Ethiopian Business Review

The past year in Ethiopia has been a rollercoaster for the real estate sector, marked by significant challenges and opportunities. The credit cap imposed by the Central Bank and the introduction of a floating exchange rate have significantly disrupted the market, impacting the buying power and investment decisions of stakeholders. On the other hand, the government’s plan to open the sector and allow foreigners to own properties has introduced new possibilities. Despite these challenges, the industry has not only weathered the storm but also shown remarkable resilience and adaptability. Innovative strategies from developers and a growing focus on foreign investment offer hope for a more prosperous future.

Paving the Way for Ethiopia’s Digital Financial Revolution

EthSwitch, Ethiopia’s national switch, plays a pivotal role in fostering interoperability and facilitating seamless digital finance and payment settlement. Led by CEO Yilebes Addis, a seasoned fintech executive with a strong ICT background, EthSwitch has driven Ethiopia’s fintech landscape forward.

With over two decades of experience in banking, technology, and fintech, Yilebes brings a wealth of expertise to his role. Before joining EthSwitch, he held key leadership positions at Kifiya Financial Technology and the Commercial Bank of Ethiopia, overseeing IT projects and training initiatives. His academic credentials, including an MSc and BSc in Computer Science from Addis Ababa University, further solidify his technical prowess.

From October 31 to November 2, 2024, the Millennium Hall in Addis Ababa, Ethiopia, will host a significant event: the 13th Ethio Poultry Expo (ETHIOPEX), the 9th Africa Livestock Exhibition and Congress (ALEC), the 4th Apiculture and Aquaculture Ethiopia Trade Show, and the newly launched Bio-Energy Trade Show. Organized by Prana Events in collaboration with the Sudanese Expo Team for Service Co., Ltd, the expo aims to showcase the latest technologies and solutions in the animal husbandry sector.

Zemen Bank announced a pre-tax profit of ETB 3.77 billion for the 2023/24 fiscal year, reflecting a 36.8% increase from the previous year. This was shared during the bank’s Annual General Meeting at the Millennium Hall, where shareholders noted an Earnings Per Share (EPS) of 37.6%.

The bank’s total assets grew by 23.9% to ETB 59.2 billion, while customers’ deposits increased by 17.6% to ETB 43.61 billion. Loans and advances rose by 13.5% to ETB 35.63 billion, and foreign exchange inflows reached USD 566 million, averaging USD 47.2 million per month.

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:

Balancing Inflation Control with Economic Growth

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.

Red Sea Crisis Cripples Ethiopian Trade Exposes Economic Vulnerabilities

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 Real Estate A Year of Transformation

Ethswitch’s Yilebes Addis

Paving the Way for Ethiopia’s Digital Financial Revolution

Ethiopia to Host Major Animal Husbandry Expo, Attracting Global Leaders

Zemen Bank Reports Profit Growth Despite Economic Challenges

Dashen Bank Reports Significant Growth in Total Assets

Cooperative Bank of Oromia Launches Africa’s First Blockchain-Powered Remittance Service

National Bank of Ethiopia Issues Licenses to Five New Forex Bureaus

Credit Cap Conundrum

Balancing Inflation Control with Economic Growth

Rough Seas Ahead

Red Sea Crisis Cripples Ethiopian Trade Exposes Economic Vulnerabilities

IMF Reaches Staff-Level Agreement with Ethiopia on Economic Reforms