Blog – Page 2 – Ethiopian Business Review

Coopbank Bank of Oromia, a provider of digital financial solutions, has entered into a strategic partnership with Visa, a global digital payment solutions, with the aim of transforming the digital payment landscape in Ethiopia. This collaboration is said will introduce Visa-branded cards for multiple products, offering tailored solutions to meet the diverse needs of Coopbank’s customer base. Additionally, the partnership will lend support to the Ethiopian government’s National ID Project, a pioneering initiative that seeks to integrate digital identification systems with payments.

While developed economies have pledged to increase climate financing sharply by 2030, developing-economy policymakers are struggling to cover the costs of action. With medium-term strategies being used to address a short-term threat, progress on the green transition will be undermined, with potentially catastrophic implications.

Ethiopia’s Lack of Standard Stadiums Thwarts Footballing Ambitions

Ethiopia is a distant observer while the continent’s finest footballers take centre stage in Côte d’Ivoire for the Africa Cup of Nations (AFCON) 2023. Having graced the AFCON stage in Cameroon just two years ago, the “Waliyas” now watch from afar, a stark reminder of their struggles to sustain continental relevance.

This absence highlights a more profound malaise afflicting Ethiopian football: the glaring lack of a stadium meeting CAF and FIFA standards. Dr. Brook Genene, a prominent sports commentator for EBR, delves into this critical issue, revealing its detrimental impact on both results and player development. Indeed, Ethiopia’s recent stumbles can be partly attributed to the absence of a world-class stadium. Substandard facilities hinder both domestic and international competition, crippling player development and eroding fan confidence.

Hibret Bank, a private bank in Ethiopia, has announced its strategic investment in the Ethiopian Securities Exchange (ESX). The bank’s equity investment of ETB50 million represents a 5 % ownership share in the paid capital of ESX. This move aligns with Hibret Bank’s goal of actively participating in Ethiopia’s emerging capital market ecosystem.

The investment from Hibret Bank, along with the initial investment from Ethiopian Investment Holdings (EIH), is said will support the final preparations for the launch of ESX later this year. Other investors are also expected to join as shareholders in the coming months.

Ato Melaku, CEO of Hibret Bank, expressed the bank’s belief that the establishment of ESX will create a platform for synergy among different players in the market. “This platform will enable businesses to trade and grow with stronger financial capabilities, benefiting not only the financial sector but also the overall economy of the country.”

Dr Tilahun E. Kassahun, CEO of Ethiopian Securities Exchange, expressed delight at Hibret Bank’s decision to join ESX as one of the founders of this exchange. He emphasized the importance of the bank’s investment, especially during the critical phase of finalizing the capital raise process. He also highlighted that Hibret Bank’s commitment to supporting ESX will extend to other areas of the capital market ecosystem, including the provision of capital market services.

ESX is set to become the centerpiece of Ethiopia’s upcoming capital markets ecosystem, encompassing various markets such as equities, fixed income, money markets, and alternative markets like equity and debt crowd investment platforms.

Once a bustling capital, Mekelle now wears the scars of Tigray’s brutal conflict. Its unfinished buildings and neglected shops whisper of lost opportunity, while cheap beer and quiet pubs offer solace from the harsh reality. Young people yearn for a brighter future elsewhere, fleeing to Europe or fearing jobs and famine.

The war’s economic wounds are deep. Infrastructure lies in ruins; businesses are largely looted, and unemployment soars while inflation reaches the rooftop. Hospitals struggle with staff shortages and non-payment, driving skilled doctors away in mass exodus. The spectre of famine is looming while the regional government cries for funds. Tourists, once plentiful, now stay away, deterred by images of hunger and instability in the region.

Indeed, Mekelle grapples with its new reality – hosting internally displaced people with meagre resources.
EBR’s Samuel Getachew visited Mekelle to understand how rough the road to recovery will be. He reports that it will take a concerted effort of international donors, local and federal governments, and citizens for Mekelle to rise again from the ashes and for its people to rebuild a brighter future.

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Ethiopia’s booming real estate sector, boasting a remarkable 14Pct average annual growth over the past decade, faces a potential turning point. The recent implementation of a 14Pct credit cap by the National Bank of Ethiopia (NBE) has significantly impacted bank lending capacity, sending ripples through the industry. This article delves into the specific consequences of this policy, exploring its effects on key players and overall market dynamics, particularly in Addis Ababa.

Indeed, Real estate developers and individual sellers across Addis Ababa are grappling with a new reality. Despite price adjustments aimed at aligning with reduced buyer purchasing power, a noticeable struggle to attract buyers has emerged, while some developers are innovatively taking swift strategic moves to solve the looming financial gap in the sector. This shift can be attributed to the credit cap’s influence on loan availability, effectively limiting access to financing for potential buyers. EBR’s Eden Teshome sheds light on the multifaceted impact of the credit cap in the Real Estate sector.

As long as women achievements are concerned within the African continent, this year’s Women History Month was a humbling year.

The reality remains most African women still lag behind in all sector of society, especially in areas of economic advancement where the World Bank estimates, a majority of African women, to the tune of more than 70 Pct remain excluded by financial institutions. This is something African nations are trying to address but the status quo remains.

The Ethiopian Capital Market Authority (ECMA) has signed two Memoranda of Understanding (MoUs). These agreements aim to enhance market integrity, promote transparency, and bolster technological capabilities for enhanced market surveillance. By doing so, the ECMA seeks to safeguard investors and foster confidence in the Ethiopian capital market.

The first MoU, titled ‘Capital Market Integrity Task Force Cooperation and Coordination Agreement No 01/2024,’ was signed by the ECMA, Ministry of Justice, Financial Intelligence Services, Ministry of Trade and Regional Integration, and the Federal Police Commission. This agreement establishes the “Capital Market Integrity Task Force,” which will collaborate to maintain the integrity of the capital market.

The primary objective of this task force is to identify, investigate, and prosecute illegal activities in the marketplace, ensuring an orderly and fair market environment. It will focus on exposing companies and promoters engaged in deceptive and illegal share offering practices, which have resulted in substantial losses for investors. By addressing such fraudulent activities, it is said that the task force aims to protect investors and restore confidence in the market.

Simultaneously, the ECMA has entered into a strategic cooperation agreement with the Information Network Security Administration, Ethiopian Artificial Intelligence Institute, and National ID to enhance its technological infrastructure and capacity. This collaboration includes cybersecurity support, strengthening the Authority’s ability to monitor the market and protect investors’ interests.

This approach is said to be put in place intending to allow the Authority to address potential risks and enhance its regulatory framework effectively.

The Ethiopian Capital Market Authority firmly believes that these agreements will play a crucial role in fulfilling its powers and duties outlined in Proclamation No. 1248/2021. It was disclosed that the Authority’s primary goal is to reduce systemic risk, maintain the integrity of the capital market, and facilitate seamless transactions. By taking concrete steps to combat fraudulent activities and enhance technological capabilities, the ECMA aims to safeguard investors and instill confidence in the Ethiopian capital market.

Ethiopia’s landlocked status has long constrained its economic growth and regional influence. While direct access to the sea offers undeniable benefits, achieving it remains a complex geopolitical puzzle. Direct access to the seaport brings enormous economic benefits for Ethiopia. It strengthens a nation’s regional and international standing, granting it a voice in maritime affairs and potentially boosting cooperation with other coastal countries and superpowers.

On December 11, 2023, Ethiopia missed a USD33 million interest payment on its December 2024 dollar bond, marking the East African nation’s latest defaulter by emerging-market sovereigns and raising concerns about its once-promising economic future. This significant default, the first for Ethiopia after years of rapid economic growth, sent a shockwave through the international financial community and threatened to hinder the country’s future development prospects.

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Coop Bank of Oromia and Visa Form Partnership to Enhance Digital Payment Landscape in Ethiopia

Can We Manage Climate Change Without Addressing Developing Countries Debt Burdon?

Building Dreams on Broken Bricks

Ethiopia’s Lack of Standard Stadiums Thwarts Footballing Ambitions

Hibret Bank Takes a Stake in Ethiopian Securities Exchange

Grim Legacy of Tigray War Haunts Mekelle A City of Despair, Dreams of Escape

Ethiopia’s Real estate Market Navigates Shifting Landscape Impact of Credit Cap in focus

Empowering African Women: Striving for Equality and Economic Advancement

ECMA Takes Action to Protect Investors and Foster Confidence in Capital Market

Ethiopia’s path to the sea balancing opportunity, reality

Ethiopia’s Eurobond dilemma, the ripples of non-payment