Ashenafi EndaleApril 15, 2021
Housing-Debacle-.jpg

2min1950

Addis Ababans spend two-thirds of their income on housing. Although there is an additional 250,000 units of new housing demand created every year in the city, only one third is supplied, mainly by government programs.
The contribution of private developers to Addis Ababa’s housing supply is limited to less than 5Pct. The property market is dominated by the land allocation policies adopted to fit only a few as well as the lack of finance and construction materials. Land supply is constrained to generate more revenue for the government, rather than as a vehicle to solve sheltering problems. The city administration is currently finalizing revising the land lease directive, expected to increase land lease prices by several fold.
Government is also devising new state-led property development schemes on state landholdings in the capital, despite inefficiency and resource wastage lessons garnered from condominiums.
In a bid to outmaneuver the land supply grip, private developers are exploiting possibilities in partnering with individual landlords, who contribute their land, to jointly develop apartments and villas. This arrangement has also been picked up by the government which is offering its federal landholdings in the capital to partner primarily with foreign developers to build complexes for housing, business, education, health, and leisure. EBR’s Ashenafi Endale navigated newly surfacing housing options.


Ashenafi EndaleApril 15, 2021
African-continental.jpg

1min1500

Despite the COVID-19 pandemic and other teething problems, African countries opened their markets in January 2021 under the African Continental Free Trade Area (AfCFTA). The new market, which allows for the duty-free trade of goods and services across borders, is expected to lift up to 30 million Africans out of extreme poverty. It is also expected to boost intra-African trade, promote industrialization, create jobs, and improve the competitiveness of African industries on the global stage. However, the new trade block is encountering problems from its birth. African countries, fearing trading through AfCFTA will immensely cost their economies, are retreating. In fact, more than 20 African nations, including Ethiopia, have not fulfilled necessary requirements to start trading under the agreement. EBR’s Ashenafi Endale explores.


Ashenafi EndaleMarch 15, 2021
Fetching-Underground.jpg

1min5800

Ethiopia has vast water resources. However, only a fraction of the potential has been realized thus far. Access to fresh water is still a problem in both rural and urban parts of the country. Given the high population growth rate, Ethiopia should utilize groundwater for both agriculture and household use. However, little has been done to tap the huge groundwater resource in the country. EBR’s Mubarek Jemal reports.


Ashenafi EndaleJanuary 16, 2021
Disempowered-Energy.jpg

1min14730

Ethiopia is endowed with abundant renewable energy resources and has the potential to generate over 60,000 MW of electric power from hydroelectric, wind, solar, and geothermal sources. However, the country only generates 4,500MW, not sufficient to satisfy more than 100 million people. To address the current and future demand forecasted to grow 14Pct annually till 2037, the government recently announced a new plan for the next ten years. The plan envisions increasing the electric generation capacity from renewable sources from the current 4,500MW to 19,000MW by 2030, of which the private sector is expected to generate 9,000MW. However, investors engaged in the energy sector inform that many hinderances limit the involvement of the private sector, and thus meeting the target will be very difficult. EBR’s Ashenafi Endale investigates the issue further.


Elias TegegnDecember 16, 2020
Private-Lane.jpg

1min19090

There are seven privately- and 10 government-owned industrial parks (IPs) operating in Ethiopia. Although the government-owned ones were developed with massive finances, thus far their performance has not been satisfactory. On the other hand, companies operating inside privately-owned IPs are doing well. In fact, an increasing number of foreign investors are requesting to develop their own IPs. The government, recently decided to discontinue developing IPs and is preparing a directive to facilitate this. EBR’s Elias Tegegn explores the issue.


Ashenafi EndaleNovember 15, 2020
Zooming-in-on-Ethiopias_1.jpg

1min25330

Since domestic resources are not large enough to finance various development endeavors, Ethiopia, just like any developing nation is forced to turn to Foreign Direct Investment (FDI). To facilitate the flow of FDI into the country, the government tried to introduce a favorable legal framework in line with constantly changing global dynamics, but without compromising national interest.


Ashenafi EndaleNovember 15, 2020
Microinsurance.jpg

1min22010

Microinsurance is insurance that can be accessed by the low-income segment of the population and small businesses. Despite its business potential and instrumental role in averting social and economic risks, the penetration of microinsurance remains very low in Ethiopia, a country with 80Pct of the population engaged in smallholder, rural, and rain fed agriculture, and where crop and livestock failure is frequent. EBR’s Ashenafi Endale explores why microinsurance could not capitalize on the rising demand and takeoff as a new business front.


Collateralizing-Movable-Property.jpg

1min21810

Last year, Parliament passed a law forcing financial institutions to accept movable properties like livestock, patents, land operating rights, agricultural products, land ownership rights, warehouse receipts, and intellectual property rights, as collateral. The central bank is betting this will fundamentally change the credit landscape, which is currently highly collateralized and is resulting in bank credit injustice. The new move is expected to expand credit markets and improve access to credit for farmers, micro and small enterprises as well as cooperatives.


Ashenafi EndaleOctober 15, 2020
electric-vehicles.jpg

1min29141

Globally, the manufacturing and use of electric vehicles (EVs) is growing as governments increasingly introduce stricter environmental protection directives. However, electric vehicles were not even a topic for discussion in Ethiopia until recently. The trend has shifted quite fast as a number of companies have started to assemble EVs despite the absence of appropriate legal framework to promote and regulate the assembly or manufacturing and use of the vehicles. The situation has left assemblers and users with obstacles. EBR’s Ashenafi Endale explores.


Ashenafi EndaleOctober 15, 2020
the-elusive-task.jpg

1min20110

Ethiopia is among developing countries that have achieved fast and sustainable economic growth in the last decade, mostly through massive public led investment. Despite this, the domestic saving rate remains low, relative to the investment rate. As a result, the country is forced to depend on debt to fill the gap. Currently, the gross domestic saving to GDP ratio in Ethiopia is 22.3Pct, with the gross capital formation to GDP ratio at 37Pct. In fact, the gap between saving and investment is now wider than it was 15 years ago. As the government envisions increasing the saving ratio to 30Pct of GDP in the next 10 years, EBR’s Ashenafi Endale explores the reasons for the low domestic saving rate and offers solutions.



About us

Ethiopian Business Review is first class and high quality monthly business magazine.


CONTACT US

CALL US ANYTIME



Newsletter





This site is protected by wp-copyrightpro.com