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In the business world, a merger refers to joining two companies into one entity. The concept has made headlines recently because the government is preparing to open the sector to foreign competition. This is the second time in recent years that the issue has taken Centre stage in Ethiopia’s financial news after the two state-owned banks – the Commercial Bank of Ethiopia (CBE) and the Construction and Business Bank (CBB)– ‘merged’ in December 2015. Advocates of mergers say they provide several benefits to the financial sector, the least of which is weeding out young banks, thereby strengthening the overall sector. Others, however, think that the concept may be too cumbersome for Ethiopia’s nascent private banking industry, which needs more time to mature. EBR updates an article published from the 4th Year • January 16 2016 – February 15 2016 • No. 35. We spoke with banking leaders and experts to get a better grasp of the concept and its potential role in Ethiopia’s fledging banking sector.


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Balancing Revenue Goals with Business Sustainability

In Ethiopia, the recent recognition of loyal taxpayers shines a light on the government’s efforts to enhance tax compliance amid ambitious fiscal goals. This recognition should make taxpayers feel appreciated and valued. However, as the country implements significant tax reforms to generate additional revenue, concerns arise from the business community regarding the fairness and impact of these changes, particularly on small enterprises. EBR’s Eden Teshome explores the dual perspectives surrounding Ethiopia’s tax landscape, highlighting the achievements celebrated during the recognition ceremony and the challenges businesses grapple with, such as increasing tax burdens and a complex regulatory environment.


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Once a darling of foreign investors, Ethiopia faces a complex web of challenges hindering its economic growth. Despite ambitious reforms and a promising future, the country’s investment landscape is marred by a series of setbacks.

Why has the much-anticipated influx of foreign investment yet to materialize? How have recent policy changes impacted domestic investors? What role does political instability play in deterring investment? And what can be done to revitalize Ethiopia’s economic potential, emphasizing the need for stable policies and peace for sustainable economic growth?

This in-depth analysis by EBR’s Munir Shemsu delves into these questions, examining the intricate interplay of factors that have shaped Ethiopia’s investment climate. From the impact of the war in Tigray to the challenges posed by the COVID-19 pandemic, this article sheds light on the multifaceted obstacles that impede Ethiopia’s progress, highlighting the need for a comprehensive solution.


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Showcasing Ethiopia’s Hidden Gem to the World

The vast and geographically diverse State of Oromia has remained relatively unexplored for an extended period, with its rich cultural heritage, breathtaking landscapes, and historical sites largely unknown to the global tourism market. The State has faced significant challenges, including inadequate infrastructure, ongoing conflicts, and misleading travel advisories, which have hindered tourist inflow. However, a transformative initiative has emerged: Visit Oromia, launched by the Oromia Tourism Commission in 2019. This program aims to unlock the State’s untapped tourism potential by promoting inbound travel and emphasising its unique attractions. Visit Oromia is set to reposition Oromia as a vibrant tourist destination, reshaping perceptions and highlighting the beauty and resilience of the Oromo people. In an exclusive interview, EBR’s Mintesinot Nigussie spoke with Lelise Duga, the visionary commissioner of the Oromia Tourism Commission, also known as Visit Oromia, about this groundbreaking initiative’s vision and strategic goals.


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Can the Nation Power the Future with Local Battery Production?

In a move that could reshape its industrial landscape, Ethiopia is setting its sights on a new frontier: the local production of electric vehicle (EV) batteries. Still in its early stages, this ambitious plan aims to leverage the nation’s rich cobalt and lithium resources to position Ethiopia as a critical player in the rapidly expanding global EV market. The full details of this initiative have yet to be publicly disclosed, but early indications suggest that the Ethiopian government is laying the groundwork for a transformative venture that could not only boost the country’s economy but also influence the global EV market, writes EBR’s Eden Teshome.


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The Uphill Battle of Dealing With Historical Baggage of Inefficiency, Corruption, and Political Interference

Ethiopia’s State-Owned Enterprises (SOEs) are currently in the midst of a significant transformation. The government’s ambitious reforms, which encompass privatization, enhanced governance, and financial discipline, have the potential to reshape these entities into efficient and profitable organizations. However, this journey is not without its challenges, including addressing legacy issues, ensuring social equity, and navigating complex political dynamics. The results of these reforms will determine whether Ethiopia’s SOEs will experience a renaissance or a decline. EBR’s Munir Shemsu reports on this pivotal moment in Ethiopia’s economic history.


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Its Impact on Remittances

Ethiopia’s recent decision to float its currency, the Birr, marks a transformative moment in its economic landscape. This decision has significant implications for remittance flows, an essential lifeline for countless families. As the Birr depreciates sharply, the purchasing power of remittances is altered, impacting both senders and recipients amid rising inflation and economic challenges. EBR’s Eden Teshome explores the dynamics of these changes, the role of international financial institutions, and how the Ethiopian government’s reforms aim to stabilize the economy.


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Ethiopia’s recent policy to increase electricity tariffs, while essential for long-term energy sustainability, might become a double-edged sword. While the reform aims to attract investment and improve infrastructure, it also threatens to exacerbate economic hardships for many low-income households and businesses. However, it’s important to note that these reforms also hold the potential to significantly improve the country’s energy sector, paving the way for a more sustainable and efficient future. A careful navigation of this delicate balancing act is urgent, as the benefits of increased tariffs to improve investment needs to outweigh the opportunity costs to consumers. EBR’s Munir Shemsu navigates the intricate issue and offers this report, urging stakeholders to understand and support these crucial reforms.


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In the heart of Addis Ababa, a digital revolution is underway. AI-generated images rapidly replace human models in Ethiopian advertising, offering cost-effective solutions and unlimited creative potential. This transformation is not just a trend but a significant shift reshaping how brands communicate. However, it raises a profound question: What does the future hold for the human faces that were once the industry’s hallmark? EBR’s Mintesinot Nigussie delves into the thoughts of models and advertisers on the rise of AI, the challenges it poses to their craft, and the uncertain road ahead as creativity and employment intersect in this rapidly evolving landscape.


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In the wake of Bill Gates’ (tech magnate and philanthropist) recent visit to Ethiopia, the country’s agricultural sector finds itself at a crossroads. As the nation grapples with rising production costs and the looming threat of climate change, introducing genetically modified organisms (GMOs) in the horticulture sector has emerged as a potential game-changer. This innovative approach could boost productivity and tackle challenges threatening the country’s export competitiveness. However, it raises important questions about public health, environmental impact, economic sovereignty, and the risk of becoming reliant on foreign biotechnology. By presenting a balanced perspective on the benefits and challenges of GMOs, EBR’s Eden Teshome shows how Ethiopia can strategically navigate this landscape to strengthen its horticultural industry and enhance exports.




Ethiopian Business Review | EBR is a first-class and high-quality monthly business magazine offering enlightenment to readers and a platform for partners.



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