Commercial Bank of Ethiopia Assets Hit 1.9 Trillion Birr

The Commercial Bank of Ethiopia (CBE) has achieved a record 1.9 trillion birr in total assets, with deposits reaching 1.4 trillion birr, according to its president, Abe Sano.

The bank attributes its success to comprehensive macroeconomic reforms, including a market-based exchange regime that boosted savings and foreign currency inflows. Despite past challenges from low-interest lending to large-scale projects, CBE is now positioned to enhance profitability and competitiveness under the ongoing economic transition.

Ethiopia Collects 380 Billion Birr in Five Months

Ethiopia’s Ministry of Revenue (MoR) announced a collection of 380 billion birr in the first five months of the current fiscal year, showcasing significant progress under ongoing reforms.

Revenue Minister Aynalem Nigussie attributed the growth to improved tax policies, legal frameworks, and technological advancements. These efforts align with Ethiopia’s development goals, with revenue collection nearly doubling from 176 billion birr in 2017/18 to current levels.

The reforms aim to enhance domestic revenue generation and support the country’s economic transformation.

Ethio Telecome introduces 4G mobile services in 67 cities Nationwide

Ethio Telecom has officially launched 4G LTE mobile services in 67 cities throughout the country. The rollout of these advanced services comes in response to increasing customer demand, the company announced.

World Bank Staff Question Ethiopia’s Debt Assessment with IMF

An internal memo reveals concerns among World Bank staff over the Debt Sustainability Analysis (DSA) conducted with the IMF for Ethiopia, suggesting the assessment may be flawed. According to World Bank consultant Brian Pinto and Chief Economist Indermit Gill, the DSA indicates a short-term liquidity crunch, contradicting the Ethiopian government’s claim of long-term solvency issues requiring debt write-downs. The DSA forms the basis of Ethiopia’s debt restructuring, with bondholders rejecting the government’s proposed 18% haircut. Critics argue that Ethiopia should focus on extending debt maturity and boosting exports rather than imposing write-downs. The IMF confirmed it revisited the DSA during a recent review, while Ethiopian officials stated no major changes had been made. The debate highlights broader concerns about the reliability of DSAs for low-income nations and their impact on debt resolution. (Reuters)

Ethiopia to Revitalize Alwero Dam After Three Decades

The Ethiopian government has announced plans to rehabilitate the Alwero Dam, idle for over 30 years. Initially built in collaboration with the USSR for large-scale irrigation, the dam will now be revived to benefit local farmers and attract agricultural investors.

Minister of Irrigation and Lowlands, Abraham Belay, confirmed that assessments for maintenance are complete, and rehabilitation will expand the dam’s capacity to support over 10,000 hectares of land. The ministry is also implementing reforms to address long-delayed irrigation projects, prioritizing those with significant development potential.

The Alwero Dam’s revitalization is part of Ethiopia’s broader push to enhance irrigation-based agriculture and boost economic growth. (Capital Ethiopia)

Ethiopia’s Coffee Exports Surge, Generating $797 Million

Ethiopia earned $797 million from exporting 178,000 metric tons of coffee in the first five months of the fiscal year, a 72% rise in volume and a 55% increase in revenue compared to last year, according to the Ethiopian Coffee and Tea Authority.

Deputy Director-General Shafi Umar stated that Ethiopia exceeded its export target and is on track to generate $1 billion by mid-year. Coffee remains Ethiopia’s top export, sustaining over six million farmers and contributing over a quarter of the country’s annual export earnings.

With a goal of exporting 400,000 metric tons and exceeding $2 billion in earnings, Ethiopia aims to build on last year’s $1.43 billion revenue from 298,000 metric tons. Addis Standard

BYD Enters Ethiopian Market with Electric Vehicles

Chinese EV giant BYD has launched operations in Ethiopia, partnering with Moenco, a subsidiary of Inchcape PLC, to provide sales and after-sales services. The company introduced five electric car models, including the compact BYD Seagull and the performance SUV BYD Tang, and opened a showroom in Addis Ababa’s Bole Sub City.

BYD’s Africa and Middle East Sales Director, Yao Shu, highlighted Ethiopia’s electrification vision as aligning with BYD’s objectives. The move follows Ethiopia’s recent ban on non-electric vehicle imports and its invitation to Chinese manufacturers to explore local production opportunities.

While the initiative signals progress in EV adoption, concerns remain about infrastructure readiness, as over 60% of Ethiopians lack access to electricity amid ongoing power outages.

Amhara Bank Signals Investment Banking Ambitions

Amhara Bank has revealed plans to expand into investment banking, signaling its intent to play a pivotal role in Ethiopia’s emerging capital markets. With a 146% revenue growth and assets reaching 35.2 billion birr this fiscal year, the bank is exploring opportunities to offer services like capital raising, mergers and acquisitions, and financial advisory.

CEO Yohannes Ayalew highlighted the bank’s vision to provide innovative financial solutions that support businesses and contribute to Ethiopia’s economic reforms. This strategic ambition aligns with the nation’s push for capital market development and economic transformation. Addis Insight

Safaricom Telecommunications Ethiopia PLC Launches 4G in Gambella

Safaricom Ethiopia has introduced 4G network services in Gambella and surrounding areas, enhancing connectivity and driving regional growth. Gambella Region Chief Administrator Alemitu Umod emphasized the network’s potential to boost business, attract investment, and promote entrepreneurship.

Safaricom also donated laptops, routers, and six months of free internet to two Gambella high schools to advance digital literacy. CEO Wim Vanhelleputte reiterated the company’s commitment to expanding reliable, high-speed internet across Ethiopia.

This launch promises better access to information, education, and healthcare, while creating opportunities for businesses and fostering economic development in Gambella.

Ethiopia Prepares for Mortgage Banking to Address Housing Crisis

The 7th Annual Real Estate and Home Expo, held from December 27-29, 2024, at the Sheraton Addis, showcased Ethiopia’s housing challenges and opportunities. Tsegaye Moshe, Housing Development Lead Executive at MoUDI, revealed plans for a Mortgage Banking Law to address the nation’s housing crisis, identifying potential long-term financing sources.

Zemedeneh Negatu, Global Chairman for Fairfax Africa, stressed the need for mortgage banking to meet the growing housing demand, with 74% of Ethiopian homes currently substandard. The Expo brought together key stakeholders to foster collaboration, investment, and innovation in Ethiopia’s real estate sector, supporting the country’s urbanization goals. (EBR)

Investors with 2.6 Billion Birr to Boost Coffee and Tea Production in Jimma SEZ

Over 2.6 billion birr in investments is set to transform Jimma Special Economic Zone (SEZ), with new ventures in coffee and tea production. The Industrial Parks Development Corporation (IPDC) highlighted this progress following a meeting between its CEO, Fesseha Yitagesu, and Jimma Zone Head, Tijani Nasser.

Investors will process and export coffee, creating sustainable market linkages for local farmers. Tijani lauded the initiative, noting its potential to create over 2,000 jobs and enhance livelihoods. Akshay Jay Oil, an Indian company operating in the zone, serves as an inspiring example, linking 10,000 farmers to the global market.

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