Ethiopia’s federal government collected taxes worth ETB183 billion in the last nine months, achieving 96Pct of its target, despite fears it would fall because of the COVID-19 induced economic crisis.
It is also 25.6Pct higher than that of the amount registered during the same period last year.
The Council of Ministers approved a decision to give one month grace period for businesses to report and settle VAT payments. Pension contributions payment period is also extended to July 8, 2020, although this is supposed to be settled every month.
Ethiopian Airlines extended its cargo destinations from 56 to 75 globally since the COVID-19 crisis. The move comes as the aviation giant attempts to offset its loss in revenue from passengers.
During March 2020 alone, Ethiopian transported a total uplift of over 45,848 tons of cargo to different parts of the world, deploying both its freighters and passenger fleet.
Hotel occupancy rates in Addis Ababa are now as low as two percent as coronavirus casts shadow over the hospitality industry, according to a survey by Addis Ababa Hotel Owners Association.
88 members of the association decided to partially or fully stop operations. During the last fiscal year, the occupancy rate of hotels was around 64Pct.
The International Monetary Fund approved USD411 million for Ethiopia, under the Rapid Financing Instrument, in order to help the country meet its ‘urgent balance of payment needs stemming from the COVID-19 pandemic.’
The Fund’s Board approved Ethiopia’s request for relief on debt service until October 13, 2020 of about USD12 million. This relief could be extended up to April 13, 2022, and will be subjected to the availability of resources.
Ethiopia’s export earnings from coffee keep portraying unanticipated growth despite the impact of COVID-19 on global trade activities.
The country exported USD96.5 million worth of coffee last month. This is 5Pct high compared to the same period last year.
Frequent power outages and no running water for days are part of normal life in Ethiopia. The state of public transport has worsened in big cities like Addis Ababa while it is nearly non-existent in small towns. Citizens still have to wait in long queues for hours to access public service that does not come cheap anymore.
Iceland has topped the Global Gender Gap Index for the 11th year in a row, according to the World Economic Forum’s Global Gender Gaps Report published last month. In 2020, the forum surveyed 153 countries. The highest possible score is 1 (total equality) and the lowest score is 0 (total inequality). Economic participation opportunity, educational attainment, health, survival, and political empowerment are factors taken into consideration in calculating the index.
For over half a decade, Ethiopia has been crowned as one of the preferred destinations for foreign direct investment (FDI). Just three years ago, the country was ranked second in Africa. FDI remains a highly politicized concept and contrasts to the reality on the ground. Actual FDI capital inflow represents a small portion of the reported figures of FDI into the country. Even then, both are now in their worst shape, largely because of the political instability in the country and bureaucratic hurdles, among others. EBR’s Ashenafi Endale investigates.
Food insecurity remains a key challenge for Ethiopia. More than eight million people are in need of urgent assistance and 70Pct of the country’s population earns below USD1.9 a day. More than 30,000 children, on average, with severe acute malnutrition (SAM) are admitted for treatment every month. Internal conflicts and climatic shocks adversely impact people’s livelihoods, making them unable to meet their basic needs, while exacerbating the food insecurity situation in the country. The failure to transform the agriculture sector, whose contribution to the economy has declined but remains a source of revenue for over three-fourths of the population, has made many food-insecure. EBR’s Ashenafi Endale explores.
Ethiopian Business Review
Ashenafi Endale