Ethiopian Business ReviewDevelopment Bank of Ethiopia (DBE) grossed a profit of ETB951 million in the first half of the current fiscal year, the highest since its establishment and twice its annual profit recorded three years ago.
Ermias MulugetaAttorney General decided to drop the charges brought against the renowned businessman, Ermias T. Amelga, EBR confirmed. He is amongst 63 defendants whose court cases dropped by the Federal Prosecutors.
Econet Global Ltd announced its interest to acquire a license to provide telecom services in Ethiopia, Bloomberg reported.
Former Advisor to Ethiopian Prime ministers, Neway Gebregab, has passed away today. He was a chief economic advisor to former Prime Ministers of Ethiopia, Hailemariam Desalegn and the late Meles Zenawi.
The Council of Minister approved a supplementary budget of ETB27.9 billion to implement different programs in the next six months.
In modern economies, keeping tax rates at reasonable levels is uncompromised, because of its significance in promoting the development of the private sector, creation of a transparent economy, and the formalization of businesses. The reality is different in Ethiopia. Tax is usually misunderstood as an instrument to increase government revenues, even at the expense of businesses’ survival, with the latest being the excise tax bill introduced by the government last month.
The 2018 Corruption Perception Index, published by Transparency International, measures the perceived levels of public sector corruption in 180 countries and territories. The index scores on a scale of zero (highly corrupt) to 100 (very clean). Accordingly, sub-Saharan Africa is the lowest scoring region on the index, and has failed to translate its anti-corruption commitments into any real progress. A region with stark political and socio-economic contrasts and longstanding challenges, many of its countries struggle with ineffective institutions and weak democratic values, which threaten anticorruption efforts.
Ashenafi EndaleAnother ‘flawed decision’ just around the corner
Learning from media outlets of new rules, laws or regulations to be enacted the next day without any consultations with the very entities it will govern, is a very common phenomenon in Ethiopia. The new excise tax law is no different. It was after the draft proclamation was approved by the Council of Ministers that businesses affected by the amendment started to voice their concerns. While the government plans to raise tax revenues in congruence with the growth of the economy, businesses are likely to feel the brunt of the bill. Many are complaining that the bill will adversely impact their revenues, while government officials argue the amendment of excise tax rates has shifted the burden of excise tax from producers and importers to end consumers. EBR’s Ashenafi Endale investigates.
Tadesse Tilahun, CEO of NOC Ethiopia, Discusses the 2019 Financial Performance of his Company, the State of the Oil Industry
Born in 1950 in Wollega, western Ethiopia, Tadesse Tilahun, a father of three, made tremendous strides in his career before becoming a Shareholder and General Manager of National Oil Ethiopia (NOC). After studying accounting in the School of Commerce and Addis Ababa University, he directly joined the Shell Group where he acquired professional trainings in several countries. At Shell, he served in many African countries at numerous managerial positions.
Operations, Oil and Chemical Marketing General Manager of Shell in Nigeria; Shell East Africa Hub Regional Supply and Operations Manager (based in Kenya and encompassing 11 countries); and Country Chairman and General Manager of Shell Ethiopia Limited are among his former posts at the Shell Group. Before he was invited to NOC, Tadesse had already accumulated deep expertise on the east African oil market.
Having one of the largest reserves of human and natural resources, Ethiopia should have had a prosperous economy. However, it is one of the poorest countries in the world, as manifested through low per-capita income and low human-development index. The vast expansion of education and health services over the past two decades has not solved the problems of farmers and pastoralists or changed the lives of the overwhelming majority. As a result, the contribution of human capital to economic growth remains insignificant in Ethiopia. EBR’s Ashenafi Endale explores to shed light on the matter.
