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STRANGLED BANKS, INFLATION CURE'S COST


A severe financial stranglehold has been imposed on the banking industry, undermining businesses due to a loan cap policy imposed by the central bank to control inflation. While reducing inflation to 28pc by the end of 2023, the monetary tightening...

Apr 13 , 2024


Fortune News

UNDER STRESS!

In an unprecedented move, the central bank has published its inaugural stress test report, uncovering potential fault lines within the financial sector that could pose systemic risks to the country's...

Apr 13 , 2024

Fortune News

Ethiopia Throws Open Its Market Gates

In a bold departure from its historical position on foreign investment, the federal government has opened the doors of the trade sectors, including export, import, wholesale, and retail, to foreign na...

Apr 13 , 2024

News Analysis

Confronted by Early Losses, Ahadu Bank Charges Ahead with Aggressive Growth, Digital Focus

In a period marked by industry expansion and ambitious regulation in the financial sector, Ahadu Bank, among the industry's latest entrants, has embarked on a course characterised by transformative po...

Apr 13 , 2024


Latest Updates

Power Supplier in the Dark

In the aftermath of a scathing performance audit, Ethiopian Electric Power (EEP) finds itself thrust...

Apr 13 , 2024


Wilting Tariffs Sprout Flower Exports

The recent decision by the United Kingdom to suspend tariffs on fresh-cut flower imports has breathe...

Apr 13 , 2024








Agenda

Loan Cap Impairs 3G Banks Squeezing Expansion

Established in 2019, East Africa Plastic Centre operates at a 30pc capacity due to a lack of working capital. Its managers' application for a loan of 100 million Br submitted five months ago remains unapproved by all the banks they approached. Der...

Apr 13 , 2024


Sugar Rush Turns Sour

Abebech Tasew, 58, stood at the counter of the Qera Consumer Association last week, her expression reflecting the strain of dwindling purchasing power. As she s...

Apr 6 , 2024


A Bumpy Ride on the Road to Green

Yohannes Dereje recently sold his Volkswagen ID 4 pro electric vehicle for 4.1 million Br after a year and a half use. It was imported from the Middle East for...

Mar 30 , 2024







Editorial

Policy Espresso Demands a Strong Brew to Transform Negative Dynamic

In the hushed corridors of the legislative house on Lorenzo Te'azaz Road (Arat Kilo), a chilly reception awaited Gebremesqel Chala, the minister of Trade & Regional Integration (MoTRI). Trusted by the administration to lead crucial negotiations w...

Apr 13 , 2024


Blundered CBE Plunders Privacy Naming, Blaming and Shaming for a Glitch's Recovery

In a rather unsettling turn of events, the state-owned Commercial Bank of Ethiopia (CBE), under the management of its President, Abie Sano, found itself embroiled in controversy after taking an unconventional approach to dealing with a recent financial mishap...

Apr 6 , 2024

Central Bank Tries Monetary Gymnastic Dodging Pitfalls, with the IMF as Its Reluctant Coach

Ethiopian authorities find themselves at a crossroads in the shadow of a global economic malaise characterised by sluggish growth and persistently high inflation. Much like several other countries, the economy they are in charge of is not insulated from the in...

Mar 30 , 2024







Exclusive Interview

Cloudy Horizons in the Digital Ecosystem

With a background in cybersecurity, CEO Charly Bahaous is from Israel and relocated to South Africa in 2006. Under his watch,  Touchnet has grown to encompass over 300 employees across various sub-sectors. The Company's portfolio includes a fibre management and construction business, cybersecurity...

Jan 27 , 2024


Inside the Quirky World of Ethiopia's Tech, Finance Mavericks

ABREHAM TILAHUN (Kacha) Abraham Tilahun, 40, married and a father of four, is an alumnus of Addis Abeba and Jimma universities and graduated in Banking & Finance and Accounting. Under his leadership, Kacha is the first private payment instrument issuer...

Jan 7 , 2024

Marcus Pledges to Offer Modern Ethiopian Experience

Fortune: What does opening a new restaurant feel like? Marcus Samuelsson: It is a homecoming. I have been in hospitality most of my life, so sharing this in my homeland is incredibly gratifying. Both Maya and I are thrilled and grateful for the hard work of...

Dec 23 , 2023







Viewpoint

Is the World Ready for AI Creative Destruction?

The ancient Chinese concept of "yin and yang" attests to humans' tendency to see patterns of interlocked opposites in the world around us, a predilection that has lent itself to various theories of natural cycles in social and economic phenomena. Just as the great medieval Arab philosopher Ibn Khaldun saw the path of an empire's eventual collapse imprinted in its ascent, the 21st-century economist...

Apr 14 , 2024


The Future of Work in the Artificial Intelligence Era

Recent discussions about the implications of artificial intelligence (AI) for employment have veered between the poles of apocalypse and utopia. Under the apocalyptic scenario, AI will displace a large share of all jobs, vastly exacerbating inequality as a sma...

Apr 13 , 2024

The Economic Consequences of Legal Behavior

Many thriving societies, such as Germany and Japan, adhere closely to the letter of the law. However, as the United States has done throughout its history, allowing for a certain degree of latitude for individual interpretation can foster creativity, enhance e...

Apr 6 , 2024


My Opinion

Tripartite Accord Falters as External Powers Vie for Influence in the Horn of Africa

The Comprehensive Tripartite Cooperation agreement, signed in September 2018 in Asmera between Eritrea, Ethiopia, and Somalia leaders, was noteworthy in many ways. Signed with the aspiration of engendering a durable peace in the region, it promised to fortify ties and promote cooperation across various political, economic, social, cultural, and security issues. It proved particularly striking when...

Apr 13 , 2024


Geopolitical Waves of Russia's Ukrainian Foray from the Black Sea to the Red Sea

In a world increasingly defined by convoluted geopolitical dynamics, the echoes of Russia's invasion of Ukraine reverberate far beyond its immediate borders, stirring a cauldron of strategic recalibrations and diplomatic manoeuvrings. At the heart of Moscow...

Apr 6 , 2024

Racing to the Future, Addis Abeba Leaves Its Souls in the Dust

The transformation of Dubai from Al Wasl, a quaint fishing village, to a symbol of modernity and a hub for tourism and commerce presents a fascinating study of urban evolution and cultural preservation amidst rapid development. While an illustration of its lea...

Mar 30 , 2024






Featured

Central Ethiopia Rues: Welqite Town Parched for Relief

Welqite town in Central Ethiopia Regional State simmers with its 250,000 residents. There, the most precious commodity is not gold, but a simple jerrycan brimming with lifeblood—water. Rukiya Hassen, 14, rises two hours before dawn, rushing to queue at the Yonas Hotel. It is one of the few places where residents can quench their thirst - for three Birr a jerry can. She has to load five of them onto a horse-drawn carriage and hurry back home in Bekur district before school starts. With a sev...

Apr 6 , 2024


Commentaries

The Hidden Costs of "Slowbalisation"

The emergence of an open multilateral trading system that separated trade from geopolitics played a pivotal role in driving the post-World War II economy. But with trade policies increasingly shaped by geopolitical considerations, a new paradigm is becoming visible. This trend started with the tariffs that former US President Donald Trump imposed on Chinese imports in 2018, which President Joe Biden's administration has maintained, and which caused China to impose its own tariffs on imports f...

Apr 13 , 2024


News Analysis

Confronted by Early Losses, Ahadu Bank Charges Ahead with Aggressive Growth, Digital Focus

In a period marked by industry expansion and ambitious regulation in the financial sector, Ahadu Bank, among the industry's latest entrants, has embarked on a course characterised by transformative potential yet apparent limitations. Despite early financial impediments, the Bank's leadership says it is positioning Ahadu, headquartered on Africa Avenue (Bole Road), to capitalise on digital adaptation and strategic partnerships to forge a path to profitability and robust service delivery. Ahadu...

Apr 13 , 2024


Delicate Number

4

The number of borrowers registered in the credit reference system database under the National Bank of Ethiopia (NBE). This number saw a wobbling jump of 1,992pc in 2023 after microfinance institutions were incorporated into the database.  

Apr 13 , 2024


Fineline

Leaders of the National . . .

Leaders of the National Election Board are in a charm offensive mood, of a sort. Last week, they organised a rare tour for members of the media, showcasing what polling stations will look like during the upcoming national elections; and they took the...

Oct 3 , 2020


Verbatim

"Stable and predictable access to maritime resources [for Ethiopia]."

Korir Sing'oei, Kenya's principal secretary for foreign affairs, told Reuters last week that his country has proposed a treaty for regional maritime access for landlocked countries, hoping to defuse tension between Ethiopia and Somalia. According to him, IGAD and Djibouti are on board with this proposal.



View From Arada

True Magic of Escaping Comfort Zones

A literary marvel crafted over four centuries ago has whisked me away into the fantastical realm of a noble hero last week. The character, Don Quixote, draws inspiration from the countless...

Apr 13 , 2024




Fortune Video




Sunday With Eden

Silencing Inner Critic: One Size Does Not Fit All

A couple who had refrained from social interactions paid a visit to my house last week. Observing them interact with my daughter was truly heartening. They bonded effortlessly with her, eliciting joyful laughter and playful interactions. My baby seemed drawn to them, displaying comfort in their presence. It was surprising. They were a reserved duo who did not mingle with people due to apprehen...

Apr 13 , 2024


Housing Control Law: Balancing Act or Quick Fix?

Last week's decision by lawmakers to regulate rental properties has sent shockwaves through the city. While many residents see it as a beacon of hope, others remain sceptical. Addis Abeba faces a severe housing crisis. The demand for affordable housing far exc...

Apr 6 , 2024

Addis Abeba Loosing Balance Between Progress, Preservation

A recent car ride through Addis Abeba with my family unearthed a stint of emotions. While the city's massive facelift was a wonder for my wide-eyed daughter, the scene evoked a profound sense of loss within me. The relentless demolition and excavation mirrore...

Mar 30 , 2024


Life Matters

Modern Kids Call for Matching Parents

A recent television program focusing on children's interactions with adults sparked a dialogue about parenting techniques. As a parent myself, my goal is to nurture confidence and independence in my children, empowering them to think critically rather than simply conforming to societal norms. Unlike previous generations, where children were encouraged to remain silent and submissive in the pre...

Apr 13 , 2024


The Silent Money Drain

Offering help without expecting something in return is a genuine act. However, while well-meaning, these kind souls can unintentionally lead the recipient down a path of financial trouble. My friend experienced this firsthand. She relied on a trusted Bajaj...

Apr 6 , 2024

Why Some Crave Quiet in Chaos

The scene that greeted me upon entering my house was pure pandemonium. My children, caught up in the throes of a lively game of catch, darted around with unbridled energy, their laughter ringing out like music in the air. An initial surge of joy at their exube...

Mar 30 , 2024





Radar

Addis Chamber Embarks on Leadership Forum

A leadership forum where prominent executives will share their experiences in the business environment is organised by the Addis Abeba Chamber of Commerce & Sectoral Association (Addis Chamber) and SAK Training & Consultancy Firm. Headlining Arega Yirdaw (PhD), president of Unity University, who is expected to address the fortunes and adversities of the leadership ecosystem and share in...

Feb 24 , 2024


ZamZam Bank Joins Commodity Exchange Payment System

The pioneering full-fledged interest-free commercial bank, ZamZam Bank, has become the 24th financial institution to join the Ethiopian Commodity Exchange's (ECX) payment system. CEO of the Exchange Wendemagegnehu Negera signed the deal with the President of the Bank Melika Bedri last week. According to the CEO, joining the platform which has around 11,000 accounts registered and has transacted...

Apr 8 , 2024

In Picture

CONCRETE CHIAROSCURO

Arat Kilo area is poised for an aesthetic makeover as a massive corridor construction pulverises through what some consider urban landmarks, and others regard as antiquated vestiges of a bygone era. An interesting optical horizon emerges as the socialist Dergue regime's former base of operations is razed, with the ruling party's headquarters peeking from the backdrop. The area, which has served as...

Apr 1 , 2024


TIERED TROLLEYS

An eerie optical illusion appears as the city bus passes under a crossing bridge below a row of cross-country jitneys. Multi-tiered transportation infrastructure is rare in the capital as most roads are characterised by narrow passages snaking by the city's buildings. The City Administration has revealed plans to expand pedestrian walkways and bicycle lanes and even introduce cable cars to improve...

Apr 9 , 2024




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