Eth-Switch S.C, Ethiopia’s national payments switch, declared ETB94.5 million revenue and ETB24.3 million net profit for 2019/20 Ethiopian financial year. Its profit surged by 93pct from previous year, following increasing use of electronic transaction under covid19 pandemic and government measurements to discourage cash-based transactions. Eth-Switch has been reporting loss for three consecutive years until last year.
The Ethiopian Telecommunication Authority has floated Request for Proposals that leads to pick two private telecom service providers. The bidding will be open for the next three months, after which the winners are licensed by April 2021, according to Eyob Tekalign (PhD), state minister of Finance.
Foreign currency generated from export of Gold exceeded coffee, for the first time. Gold generated USD265.3 million during the first quarter of 2020/21, while coffee USD230.5 million, followed by cut flower and khat, at USD138.2 million and USD129.5 million, respectively.
The National Bank of Ethiopia (NBE) announced there are only 12 days left to transact with the old currency notes. After the 12 days, people can bring the old notes to banks and change it with the new ones, but cannot transact with it.
The Addis Ababa city administration has discovered over 1,000-hectare plots of land whose owners are unknown and held illegally. The administration also found 100 houses unidentified with legal owners.
The informal land and housing market mushroomed in the capital, is under reform, according to Adanech Abebe, deputy mayor, while disclosing findings of undergoing land and housing audit assessment.
Number of Ethiopian asylum seekers crossed into Sudan has surpassed 25,300, according to United Nations for the Coordination of Humanitarian Affairs (UNOCHA). “the UN is alarmed by the escalating conflict in north Ethiopia, increasing insecurity in western and southern Oromia, as well as eastern Benishangul Gumuz region,” stated the organization, on November 16, 2020.
Ethiopia’s new commercial code, which is currently at draft stage at the House of People’s Representative (HPR), allows establishment of One Person PLC, a provision not included in the existing code, which was ratified in 1960.
Ending the conflict with Eritrea, as well as implementing reforms that strengthened public institutions and broadened the political space are among achievements of Prime Minister Abiy Ahmed (PhD) administration. In addition, the homegrown economic reform agenda that outlined macroeconomic, structural, and sectoral reforms is expected to pave the way for jobs creation, poverty reduction, and inclusive growth.
According to the Industrial Development Report 2020, much of the world, especially Africa, is not engaging with new technology and remains excluded from recent technological breakthroughs.
As a developing country, the Ethiopian economy is largely characterized by the informal sector with studies indicating its expanding size. The International Monetary Fund estimates that in countries in transition, like Ethiopia, the underground economy accounts for as high as 40.1Pct of GDP. Although the government has been taking different measures to reduce the role of the informal sector, these interventions have failed to materialize. However, the government now says its latest measure of replacing currency notes with new ones is positively working in that direction. But experts disagree with the government’s concision by saying the expansion of the informal economy is highly interconnected with the formal economy’s failure to produce enough goods to satisfy national demand. EBR’s Ashenafi Endale reports.
Ashenafi Endale
Ethiopian Business Review