Abdulmenan Mohammed Hamza (PhD)The news of the establishment of a capital market has been received with hype and enthusiasm. It is hoped that it would support the national economy through the mobilization of capital for new ventures, promotion of new financial products, etc.
The idea of forming a securities exchange was raised in the late 1990s and early 2000s. Unfortunately, with the emergence of the developmental state model in Ethiopia in the middle of the 2000s, the idea was shelved. More than a decade has had to pass for the issue to resurface. As part of the recent economic reform package, the agenda of establishing a securities exchange came to light. After two years of efforts, the Council of Minsters approved the establishment of a capital market. A couple years ago, when the idea gained increasing attention, it was promised that the market would be operational in 2020. But there is still much work to be done.
Ashenafi EndaleThe National Bank of Ethiopia introduced a new threshold for banks’ minimum paid up capital, raising the bar to ETB5 billion, up from the current ETB500 million. Existing banks are given five years grace period to meet the new threshold, while new banks in seven years, according to Frezer Ayalew, Bank Supervision director at NBE, who said the letter is just dispatched for the commercial banks.
The first private iron ore mining plant is to kick off in Mekaneselam, Wollo Zone in northcentral Ethiopia. Agodo YO is investing between USD150 and 200 million to install a medium-scale iron ore processing plant using the close to 200 million tons of ore discovered in Mekaneselam. Agodo YO is a sister company of C&E Brothers Steel Factory, engaged in rebar production since 2008.
Ministry of Mines and Petroleum agreed to renew Midroc’s Legedembi Gold Mining license. Midroc Gold is expected to resume production in the next two years.
“Midroc is allowed to start running its mining plant in Legedembi. However, local people who were affected by the project previously must be compensated and reach agreement on how the community get a lasting benefit. Plus, the project cannot resume immediately now, because Midroc has to maintain its machineries, which has been idle,” Frehiwot Fekadu, communications director at MoMP, told EBR.
The House of People’s Representative ratified revised Commercial Code of Ethiopia. The revised code featured various new articles ranging from types of business licenses, online registration and closing, taxation and renewal procedures, ecommerce, trade competition practices, arbitration and tribunals, among others.
Sunpay Solutions Plc becomes one of the first two companies requested license from the National Bank of Ethiopia to operate their own Point of sales (POS) and ATM machines. Established with ETB100 million, Sunpay has planned to deploy 60,000 POS machines. The company is also in preparation to launch a digital financial service. The sister company of sunshine Investment Group that includes sunshine construction, planned to start operation by July 2021.
If there is a primary concern of governments in a modern state, it is the wellbeing and safety of its residents. At the heart of all the political turf-wars, reforms, revolutions, and fights, is the improvement of Society’s livelihoods. Nonetheless, the insecurity different social groups in Ethiopia face attests otherwise to the social contract.
Of all the social turbulences, none amount to the damages unleashed in the Tigrai region in northern Ethiopia. Regime changes have brought less for the ordinary people of Tigrai, usually mistaken for the elite rulers. After the lauching of military operations in the region, society has found itself between a rock and a hard place. EBR talked to victims, witnesses, humanitarians, and officials on the social crisis ongoing in Tigrai.
Mehrteab LeulIn today’s globalized world, FDI follows higher earning rates, provided a conducive business ecosystem is in place. Although most developed countries do not have investment-specific legislations there is competition amongst developing countries to adopt a more market-friendly policy to attract the much-sought FDI for their economic development.
Tsegaye Tegenu (PhD)The Ethiopian economy has been at the same level of growth and productivity for the last four decades. Economic growth, transformation, and development could not keep up with the speed and pressures of population growth. Unless population takeoff is backed by economic takeoff at the same time, the consequence is dire crisis. The population of the country has grown fast in these decades making Ethiopia the second-most populous country in Sub-Saharan Africa with a population of over 100 million. Currently, the Ethiopian population is increasing by over two million people a year.
Ethiopian Business ReviewSince Prime Minister Abiy Ahmed (PhD) seized power in April 2018, many political reforms targeting an improved human rights environment were introduced in Ethiopia. To this end, several oppressive laws, criticized for enabling human rights abuses in the past, have been revised.
