Blog – Page 44 – Ethiopian Business Review

The past year in Ethiopia has been a rollercoaster for the real estate sector, marked by significant challenges and opportunities. The credit cap imposed by the Central Bank and the introduction of a floating exchange rate have significantly disrupted the market, impacting the buying power and investment decisions of stakeholders. On the other hand, the government’s plan to open the sector and allow foreigners to own properties has introduced new possibilities. Despite these challenges, the industry has not only weathered the storm but also shown remarkable resilience and adaptability. Innovative strategies from developers and a growing focus on foreign investment offer hope for a more prosperous future.

Franco Valuta & the Path to Market Liberalisation

Ethiopia’s recent liberalisation of its foreign exchange regime has significantly changed its economic landscape. One of the most notable developments is the expanded use of Franco Valuta imports.

This scheme, which allows importers to settle their obligations with foreign currency outside the domestic banking system, has been controversial. While it offers businesses greater flexibility and potentially relieves pressure on the central bank’s foreign exchange reserves, concerns remain about its potential impact on inflation, parallel exchange markets, and illicit financial flows, reports EBR’s Munir Shemsu.

Ethiopia’s Economic Dilemma

Addis Ababa’s ambitious beautification projects have undeniably transformed the city, creating a more visually appealing urban landscape. Yet, these aesthetic improvements raise critical questions about their economic feasibility and impact on the city’s residents.

While the gardens, pedestrian walkways, cycle lanes and recreational centres undoubtedly enhance the city’s quality of life, they come at a high cost. With soaring inflation, poverty, and a struggling economy, allocating a large amount of resources to such projects raises concerns about their prioritization. Critics argue that investing in the economy’s productive sector is more crucial to addressing supply-side constraints that have plagued Ethiopia for decades. City residents also ask about the fairness of the running water shortages in many neighbourhoods while the city greening projects enjoy all-day watering.

Paving the Way for Ethiopia’s Digital Financial Revolution

EthSwitch, Ethiopia’s national switch, plays a pivotal role in fostering interoperability and facilitating seamless digital finance and payment settlement. Led by CEO Yilebes Addis, a seasoned fintech executive with a strong ICT background, EthSwitch has driven Ethiopia’s fintech landscape forward.

With over two decades of experience in banking, technology, and fintech, Yilebes brings a wealth of expertise to his role. Before joining EthSwitch, he held key leadership positions at Kifiya Financial Technology and the Commercial Bank of Ethiopia, overseeing IT projects and training initiatives. His academic credentials, including an MSc and BSc in Computer Science from Addis Ababa University, further solidify his technical prowess.

Dr. Selam Aklilu’s Holistic Approach to Wellness

Dr. Selam Aklilu is a renowned chiropractor and esteemed advocate for wellness. With a Bachelor of Science in Chiropractic and Medicine, and a Doctor of Medicine degree, she has dedicated over two decades to chiropractic care in the United States and Ethiopia. As the CEO of 1st Spine Clinic and the Founder of Wellness and Medical Services PLC, Dr Selam is deeply passionate about holistic healthcare.
In addition to her clinical work, she provides training and consultations on wellness-related matters and has founded the monthly Tena Yestelen magazine. This magazine, which translates to ‘Our Health’ in Amharic, is a platform for sharing health tips, success stories, and the latest developments in the field of holistic healthcare. EBR’s Dr. Brook Genene sat down with her to learn about her work

Mensur Abdulkeni is a renowned Ethiopian football journalist, producer, and radio host. He is the producer and football analyst of a daily radio show called Bisrat Sport on Bisrat FM 101.1, which airs daily except Saturdays. Mensur also serves as a match-day analyst for live football games on the same station alongside popular commentator Messle Mengistu. In a career spanning more than two decades, Mensur has served as the founder and editor of Ethio Sports newspaper and, more recently, as the editor-in-chief of the French TV channel Canal+ Sport Ethiopia. EBR’s Dr. Brook Genene recently spoke with one of the best football journalists in the country.

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Country Trading PLC, a company with 35 years of experience in real estate, trading, manufacturing, electronics, and duty-free retail, has opened its second duty-free store, Millennium Duty-Free, at the Skylight Hotel in Addis Ababa.

This new store follows the success of Country Trading’s first duty-free outlet at Bole International Airport, further establishing the company’s presence in Ethiopia’s market.

From October 31 to November 2, 2024, the Millennium Hall in Addis Ababa, Ethiopia, will host a significant event: the 13th Ethio Poultry Expo (ETHIOPEX), the 9th Africa Livestock Exhibition and Congress (ALEC), the 4th Apiculture and Aquaculture Ethiopia Trade Show, and the newly launched Bio-Energy Trade Show. Organized by Prana Events in collaboration with the Sudanese Expo Team for Service Co., Ltd, the expo aims to showcase the latest technologies and solutions in the animal husbandry sector.

Abdusalam Kemal, Chairman of Hijra Bank’s Board, discussed the bank’s evolution from community-focused services to leveraging technology for greater impact. He stated, “Since our inception, we’ve shifted from serving the community to using technology to enhance our services.” Abdusalam noted that HalalPay reflects the bank’s dedication to its community and highlighted its significance.

Dawit Keno, CEO of Hijra Bank, described HalalPay as a valuable solution for individuals seeking interest-free financing. “This is a gift to the generation,” Keno remarked, emphasizing the platform’s potential to change financial transactions.

Zemen Bank announced a pre-tax profit of ETB 3.77 billion for the 2023/24 fiscal year, reflecting a 36.8% increase from the previous year. This was shared during the bank’s Annual General Meeting at the Millennium Hall, where shareholders noted an Earnings Per Share (EPS) of 37.6%.

The bank’s total assets grew by 23.9% to ETB 59.2 billion, while customers’ deposits increased by 17.6% to ETB 43.61 billion. Loans and advances rose by 13.5% to ETB 35.63 billion, and foreign exchange inflows reached USD 566 million, averaging USD 47.2 million per month.

Ethiopia’s Real Estate A Year of Transformation

Ethiopia’s Economic Experiment

Franco Valuta & the Path to Market Liberalisation

The High Cost of Beauty

Ethiopia’s Economic Dilemma

Ethswitch’s Yilebes Addis

Paving the Way for Ethiopia’s Digital Financial Revolution

Beyond Back Pain

Dr. Selam Aklilu’s Holistic Approach to Wellness

Behind the Microphone Mensur Abdulkeni’s Legacy in Ethiopian Sports Media

Investment Reforms Welcome New Retail Opportunities in Ethiopia

Ethiopia to Host Major Animal Husbandry Expo, Attracting Global Leaders

Hijra Bank Launches Ethiopia’s First Sharia-Compliant Digital Financial Platform, HalalPay

Zemen Bank Reports Profit Growth Despite Economic Challenges