ECMA Licenses Ethiopia’s First Securities Exchange
The Ethiopian Capital Market Authority (ECMA) has licensed the Ethiopian Securities Exchange (ESX), marking a key development in the country’s financial sector. This milestone supports Ethiopia’s macroeconomic reform agenda by providing businesses access to financing and offering investors new growth opportunities. ECMA also granted ESX an Over-The-Counter (OTC) market license, expanding market participation to both large and smaller companies. This move is expected to enhance market transparency, integrity, and investor protection, fostering a more dynamic and inclusive financial environment for Ethiopia’s future growth.
Akobo Minerals Surpasses November Gold Production Estimates
Akobo Minerals AB, a Scandinavian-Ethiopian gold exploration and mining company, reported November 2024 gold production of 10 kg, exceeding the earlier estimate of 8 kg. Combined with October’s 2.8 kg, total production for the past two months reached 12.8 kg. The first gold bar, weighing 1.4 kg, was sold to the National Bank of Ethiopia for approximately USD 2,500 per ounce. November’s production covered all operational costs, supported by the commencement of stoping activities to access higher-grade ore zones.
Economists Forecast GDP Growth Shrink, Inflation Rise in 2025
A new policy paper by the Ethiopian Economics Association (EEA) predicts significant economic impacts from Ethiopia’s foreign exchange rate reform, including a three-percentage-point drop in GDP growth and a 10-percentage-point rise in inflation in early 2025. The study highlights two scenarios: a rapid reunification of forex rates, which could sharply contract GDP and increase costs for manufacturing and low-income households, and a gradual adjustment, which would lessen immediate effects but delay recovery. Recommendations include social safety nets, export diversification, import substitution, and liberalization of financial and retail markets to attract investment and stabilize the economy. Read more
Construction Industry Growth and Challenges in Ethiopia
Ethiopia’s construction industry is projected to grow by 8.7% in 2024, driven by investments in commercial, transport infrastructure, and renewable energy sectors, as well as increased electricity exports. Ethiopian Electric Power (EEP) reported $140 million in energy export revenue for FY2023-24, a 16% rise from the previous fiscal year. The FY2024-25 national budget increased by 21.1% to $16.5 billion, with $7.7 billion allocated for recurrent spending and $4.8 billion for capital projects. However, challenges like weak currency valuation, high inflation, and security-related project cancellations, including delays in the northern corridor road project due to Al-Shabaab attacks, pose risks to the sector. Read more
NBE Plans Credit Cap Reform Amid Inflation Control Efforts
The National Bank of Ethiopia (NBE) is set to reform its 14% credit growth cap for commercial banks, initially introduced to curb inflation. This policy, part of broader economic stabilization efforts, contributed to reducing inflation to 19.9% in June 2024, down from 29.3% a year earlier. However, businesses and banks have criticized the cap for causing a liquidity crunch and limiting access to financing. State Minister of Finance Eyob Tekalign confirmed plans to adjust the cap, aiming to balance economic growth with inflation control.
Ethiopian Investment Holdings Expands with Eight SOEs
Ethiopian Investment Holdings (EIH) has added eight State-Owned Enterprises (SOEs) to its portfolio, including Ethio Post, Ethiopian Electric Power Corporation, and the Development Bank of Ethiopia. This expansion, approved by the EIH Board under Regulation No. 487/2022, aims to modernize operations, attract investment, and enhance global competitiveness. CEO Dr. Brook Taye emphasized the importance of these enterprises in driving industrialization and economic growth. EIH plans to support them with strong governance, operational efficiency, and strategic partnerships aligned with national priorities.
UNDP and Ethiopia Launch Timbuktoo ManuTech Hub
The UNDP and Ethiopia’s Ministry of Industry have unveiled the Timbuktoo ManuTech Hub in Addis Ababa, set to launch in early 2025. This initiative aims to transform Africa’s manufacturing sector by supporting startups with funding, mentorship, technical resources, and a three-month accelerator program. Focused on addressing productivity, technology adoption, and skills gaps, the hub aligns with Ethiopia’s vision of becoming a light manufacturing leader and advancing industrial growth across Africa. Applications are open on the UNDP website until December 25, 2024.
Ethiopia’s Banking Reform Bill to Open Doors to Foreign Banks
Ethiopia is set to open its banking sector to foreign competition for the first time, with a new law expected to be ratified next month. This reform, part of the government’s broader economic modernization efforts, aims to boost competition, attract foreign investment, and enhance financial inclusion. By allowing foreign banks to enter the market, the government seeks to improve services, increase access to diverse financial products, and foster innovation. National Bank of Ethiopia Governor Mamo Mehretu highlighted the reforms’ importance in making Ethiopia’s economy more competitive and sustainable. This landmark change is expected to bring better financial services to consumers and businesses while positioning Ethiopia as an attractive destination for international investors.
Anbessa Bank Reports Strong Financial Growth for the Completed Fiscal Year
Anbessa International Bank has announced impressive financial results for the completed fiscal year, with deposits surpassing 35.6 billion birr and paid-up capital reaching 3.1 billion birr. The bank also reported a profit before tax of over 940 million birr and collected more than 75 million dollars in foreign exchange. Chairman Alem Asfaw highlighted that the bank’s total expenditure for the 2015/16 fiscal year stood at 4.7 billion birr, while loans and advances reached 30.4 billion birr, reflecting a 14% increase from the previous year. The largest shares of loans were allocated to foreign trade (26%), import trade (25%), and domestic trade (24%). Capital Ethiopia
Awash Bank Launches Campaign for Digital Banking Transition
Awash Bank has launched a campaign to accelerate its transition to digital banking services, in line with a broader push by all Ethiopian banks to focus on digital platforms rather than opening new branches. The month-long campaign aims to raise awareness, encourage non-users to adopt digital banking, and promote online payments. Ato Yohannes Merga, Senior Chief Marketing Officer, emphasized the importance of digital services for expanding accessibility to banking. Awash Bank remains committed to leading technological innovation in Ethiopia’s banking sector, aiming to increase digital service usage across its branches. Capital Ethiopia
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