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Month: August 2024

Finance Ministry Relaxes Import Requirements

Posted on by Web Master

The Ministry of Finance has lifted the 250,000-dollar cap on franco valuta imports, allowing for the import of all goods except fossil fuel-powered automobiles and security and defence equipment. The change was outlined in a circular signed by State Minister Eyob Tekalign (PhD), who described it as part of the government’s broader economic reform program.

“Previous measures were implemented under a distorted market to solve specific problems,” Eyob said.

According to Eyob, the revised policy aspires to build streamlined trade and signal a shift in the economic system rather than create an alternative trading model.

“Over time, it’ll become irrelevant,” he told Fortune.

The decision allows goods to be imported without the requirement for foreign exchange payments, bypassing stringent banking procedures. Before this policy shift, importers were required to use instruments such as Letters of Credit (LC) or Cash Against Documents (CAD) to facilitate imports. These financial mechanisms imposed strict payment protocols regulated by the National Bank of Ethiopia (NBE).

However, Eyob clarified that this system is only temporary. He expects it will gradually become irrelevant as the market formalises and previous distortions are resolved, dismissing concerns about a rise in the parallel market rate.

“The regime is now market-driven,” he said.

Franco Valuta is a policy approach that allows importers to access foreign currency from unofficial or unregulated sources to finance their imports, rather than relying solely on the official foreign exchange market. It is usually introduced in an attempt to address persistent foreign currency shortages and facilitate access to essential imports.

Officials believe that it can alleviate pressure on the official exchange rate, potentially narrowing the gap between the official and parallel market rates and reducing the incentive for illicit black-market transactions.

Eyob noted that local manufacturers now have to deal with only the Customs Commission while importing raw materials and spare parts, with reduced bureaucratic hurdles.

“The main goal is to support the manufacturing sector,” he told Fortune.

Consumer goods importers are also set to benefit, potentially creating a deflationary effect for end consumers. Eyob noted the dual benefits of promoting local production and ensuring affordable prices.

“It allows us to produce locally when possible and buy at competitive prices when we can’t,” he said.

Economists such as Atlaw Alemu (PhD) concur. An economist at Addis Abeba University believes that manufacturers, who previously faced contract cancellations due to delayed payments, are the main beneficiaries. He noted that banks have been prioritising essential imports like medical equipment, petroleum, and agricultural inputs, leaving most importers sidelined and on waiting lists.

“They will be active now,” he said.

He foresees that this change could also shift the contraband market towards legality, as the restriction has markedly narrowed down.

The liberalisation of foreign exchange market serves as a springboard for the move, which in turn simplified import processes. Minister Kassahun Gofe (PhD) of the Ministry of Trade & Regional Integration, recalls that franco valuta was allowed for a list of items that are prioritised for foreign currency allocation from commercial banks.

“It was restricted not to exacerbate the market distortion,” he told Fortune.

Along with the reform, Kassahun believes the new rule will stabilise the market along with the formal route.

Importers are scrambling to initiate imports with easier access.

Wubshet Delelegn, general manager of Menesh Agricultural & Construction Machineries Manufacturing & Wholesale, shared that his company has struggled to obtain forex for a while. As a small enterprise, Wubshet often needs spare parts for machinery and production equipment. As he seeks access to forex, his concerns now shifted to the potential influx of counterfeit products, which could undermine legitimate imports.

Another manufacturer Mastewal Tadios, head of the quality & control assurance team at Adama Agricultural Industry, stated that although raw materials for agriculture production were excise tax-free, they were unable to import for the past seven years, relying instead on third-party importers.

“It’ll now be easier to import,” she said.

While acknowledging the scheme may provide a short-term solution to address Ethiopia’s foreign currency shortages, bank experts like Tesfaye Boru (PhD), president of Global Ethiopia Bank, suggest a focus on increased foreign currency supply and a comprehensive set of complementary reforms. Tesfaye believes it is more endurable for exchange rate stability and facilitating the importation of essential goods.

“It offers a sustainable path,” he told Fortune.

Ambitious Expansion Plans Set to Reshape Three Districts

Posted on by Web Master

The Addis Abeba City Administration’s ambitious urban development initiative is set to expand into other districts with the launch of the second phase of its corridor development project. The new phase will involve a comprehensive transformation of three key districts, continuing the city’s drive to modernise its infrastructure and urban landscape. The plan, spearheaded by the city’s Plan & Development Bureau, seeks to harmonise the design across various corridors, hoping to create a more cohesive and aesthetically appealing cityscape.

The second phase of the corridor development will be a massive undertaking, part of a broader vision outlined by Prime Minister Abiy Ahmed (PhD), who has declared the need for a “greener, smarter, and more eco-friendly” Addis Abeba.

The study’s authors want to see a unified design across all corridors bordering the city, to create a visually appealing urban landscape that confirms with Addis Abeba’s future growth.

The study, which deployed spatial data to assess current conditions and identify issues, includes roads and plots in the Bole, Lemi Kura, and Akaki-Kaliti districts. The overriding plan aspires to connect Addis Abeba’s urban core with its outskirts, integrating with projects like the Shegger Grand Road. The Prime Minister, announcing the completion of the study during the launch of the CMC corridor two weeks ago, disclosed the ambition behind the project.

“Our plan is bigger,” he declared, cautioning the city’s officials to avoid complacency following the completion of the first phase of corridor development.

Over the past two months, the city has initiated five corridor projects spanning 48Km. These projects have caused considerable resettlement and demolitions to expand road infrastructure, pedestrian pathways, and bicycle lanes.

The second phase targets several strategic areas, incorporating 4,747hct plots and stretching 43Km. This phase covers areas from Anbessa Garage through Mebrat Hail, Goro, Koye Roundabout, Bulbula, and Airport Cargo. The route will weave through Bole Bridge, moving toward Goro Roundabout and culminating at Summit “Fiyel B’et,” CMC roundabout, and Jackross village.

Much of the Bole Michael Cargo-Bulbula corridor is slated to be repurposed for diverse land uses.

Nearly half of the 566.5hct is earmarked for green spaces, including golf courses, sports fields, forests, and an extensive network of parks and recreational facilities. The remaining land is designated to accommodate residential areas, road infrastructure, parking spaces, waste management solutions, and water conservation measures.

The initiative, initially overseen by Dadi Wedajo, the former director of the City’s Plan & Development Bureau, will now be led by the newly appointed Director, Adem Nuri. Dadi has transitioned to a role as a strategic advisor to the Mayor’s Office, signalling continuity in the administration’s approach to urban planning.

The second phase will also include the development of taxi stations and public restrooms. New regulations, recently enacted by the Addis Abeba City Cabinet, prescribe a minimum setback standard of 10m from the main road edge for buildings. These regulations are a response to the demolitions during the first phase when several structures were found too close to the roads. The city authorities believe they are taking a preemptive approach to ensure that future developments adhere to these standards, thereby avoiding the disruptions experienced earlier.

Mayor Adanech Abebie noted that the corridor development has not only improved infrastructure but also created 50,000 jobs and enhanced market integration, demonstrating the project’s manifold impact. Her administration allocated 33 billion Br for the development of previous corridors across the five districts.

The city officials hope to raise close to 100 billion Br in five years from leasing 1.4 million square metres of land and additional 5.7 billion Br from taxes.

The study conducted for the second phase stresses the integration of existing buildings into the new development framework. The plan includes adding arcades for structures with more than two floors, while buildings with fewer floors will be incorporated into the overall development. However, some structures may face complete demolition to make way for the new infrastructure.

According to experts like Habte Jebessa, a lecturer in conservation and management of natural resources at Addis Abeba University, conducting thorough environmental and social impact assessments before proceeding with such large-scale urban projects remains important.

“While a city has the right to develop and prosper, these assessments are crucial to addressing potential risks and ensuring sustainability for future generations,” Habte said. “Otherwise, the cost may be much higher later on.”

The Bole Homes-Anbessa Garage-ICT Park corridor is envisioned as a mixed-use urban area, integrating residential, commercial, and institutional spaces. Construction in the Bole District is already underway, with District Chief Administrator Alemtsehay Shiferaw recently visiting the site around Wereda 12. She urged for lessons from the first phase to maintain a high standard of work in the second phase.

The entire development will cover an area of 798.15hct, including mixed-use residential zones, relocation sites, and provisions for roads, electric power stations, bus depots, and high-tension electric lines.

The Akaki-Qaliti District Administration has initiated beautification efforts along the road from Koye Square to Bulbula, a region prone to flooding in recent years. The city Disaster & Risk Management Commissioner, Fikre Gizaw, stressed the urgency of completing the ongoing river rehabilitation project to protect residents and incorporate buffer zones along riverbanks in future construction plans.

The study also recommended integrating other projects, such as OVID Construction’s Gelan Gura Village development, industrial zones, clusters, and the ambitious Windows of Africa Project, into the broader development plan.

Power Producer Earns $27 Million from Data Miners

Posted on by Web Master

The state-owned power producer, Ethiopian Electric Power (EEP), has earned 27 million dollars from electricity sales to data miners in less than a year. CEO Ashebir Balcha disclosed that they achieved 97pc of their target in a few months.

“We had to restrict sales due to oversupply concerns,” he said.

The past two years have seen a surge in data mining companies establishing operations in Ethiopia, positioning the country as a new frontier in this burgeoning sector. EEP has signed contracts with around 18 companies to supply electricity for their mining activities, with four becoming operational by March. These operations are substantial consumers of electricity, each requiring between 10MW and 100MW. Consequently, the Russian company, Bitcluster, has set up a 30,000Sqm facility near the Kilinto high-voltage substation in the capital.

Concerns have been raised by experts about the impact of power exports and sales to data miners, fearing potential energy deficits for other sectors and the general population. Ashebir countered these concerns, noting that EEP prioritises national investments, including those in cement, real estate, industry, and economic zones.

He said that new projects are planned for the coming year, financed by the World Bank.

“We’ll resume once new projects are operational,” he said.

EEP generated 20 billion Br in revenues for the past fiscal year, with 140 million dollars from exporting nine percent of its generated power to neighbouring countries. Ashebir disclosed plans to begin transmission testing to Tanzania next month, while South Sudan has also expressed interest. Ethiopia has been exporting electricity to Sudan and Djibouti for the past decade, with transmission to Kenya starting in November 2022, reaching 200MW.

While exports increased by six percent, the growth in Kenyan imports was offset by reduced demand from Djibouti and Sudan. Imports to Sudan have plummeted by 90pc from a peak of 200MW due to the ongoing civil war. EEP is currently fielding requests for power supplies up to 300MW, equivalent to the total generation capacity of the Tekeze Hydroelectric Dam. Ashebir expressed concern over meeting rising demand, cautioning that demand might exceed capacity.

“Exports are not our priority,” he said.

Ashebir underscored that nearly half of Ethiopia’s population lacks access to electricity, with over 20,000Km of transmission lines vulnerable to environmental factors and theft. He emphasised that constructing a small substation requires five million dollars and that a tariff revision is essential to enhance accessibility.

“The current tariff needs adjustment to produce and distribute more power,” Ashebir said.

National energy consumption grew by 17pc, according to the CEO. Currently, 34pc of the power is sourced from the Gibe III Dam, with the Grand Ethiopian Renaissance Dam (GERD) contributing 17pc from two of its 13 turbines.

The energy mix comprises 96pc hydropower, 3.3pc wind power, and 0.2pc waste-to-energy. Hydropower remains Ethiopia’s dominant energy source, with a study by FSD Africa indicating that large-scale green energy projects like GERD could create up to 33,000 jobs, driving a green jobs revolution.

A noteworthy portion of the power is supplied to the Ethiopian Electric Utility (EEU), while seven percent was used by EEP for power generation purposes. Five power-generating projects are currently under construction, expected to add 7,242MW upon completion.

The performance report was presented at EEP’s headquarters on Asmera Rd. Ashebir also highlighted additional revenue streams, including the leasing of optical ground wire (OPGW) cables, which serve grounding and communication purposes, to Ethio Telecom and Safaricom.

The past year has not been without challenges. Theft has been a marked issue, with 57 power transmission towers collapsing, resulting in a repair cost of 114 million Br, while the total cost reached 817 million Br. Ashebir noted that most of these expenses are in foreign exchange, hindering further investment and expansion in the electricity sector.

An annual review underscored economic reforms in the power sector, particularly local debt management, including low-interest coupon bonds from the Commercial Bank of Ethiopia (CBE). Executives expressed concern that EEP’s operations are at risk due to overwhelming debt.

Around 191.7 billion Br was transferred to the Liabilities & Asset Management Corporation (LAMC), while 263 billion Br, primarily borrowed for the construction of GERD, was absorbed by the Ministry of Finance.

“The government has consistently taken over our debt,” said Demere Assefa, EEP’s Chief Financial Officer.

Birr Learns the Hard Way That Gravity Isnt Only for Apples

Posted on by Web Master

The Birr has faced a precipitous depreciation against the US dollar over the six days last week, a period marked by policy shifts in the foreign exchange market. From August 19 to August 24, 2024, the Birr’s decline has been unrelenting, uncovering the profound impact of the central bank’s recent decision to float the Birr and open the foreign exchange market.

A decisive move by the federal government to reach a deal with the IMF, the monetary policy change is designed to address chronic foreign currency shortages and align the official exchange rate more closely with the parallel market. However, the immediate consequence has been a sharp depreciation in Birr’s value, reflecting market forces that had long been suppressed under the previous fixed exchange rate regime.

On August 19, the Birr was trading at approximately 104.1 to 107.3 for a dollar on the buying side across various banks, while the selling rate hovered between 112.7 and 119.8.

By August 24, the Birr had weakened further, with buying rates ranging from 104.2 to 107.3 and selling rates escalating to as high as 119.8 a dollar.

The consistent rise in the spread between buying and selling rates, from around five percent to 15pc, demonstrated growing volatility and uncertainty in the market as banks adjusted to the new floating regime.

The trend reveals an erosion of confidence in the Birr. Its value has declined by over 10pc within a week, a rapid depreciation that reflects both the pent-up demand for dollars and the speculative pressures that the policy shift has unleashed. As the Birr floats, market participants, ranging from importers to individuals, are likely rushing to secure dollars, fearing further depreciation. The rush has exacerbated the downward spiral, creating a self-fulfilling prophecy where expectations of a weaker Birr drive its continued decline.

Notably, the spread between the highest and lowest rates across banks has continued to widen, signalling disparities in how different banks manage the transition. Some banks, possibly those with greater dollar reserves or better access to foreign currency, were able to offer more competitive rates. Others are setting higher rates to manage the risk of further depreciation or to cope with limited dollar availability.

Data compiled for 17 banks over the course of six days revealed a notable disparity in the average buying and selling rates offered by different banks. It showed the varying strategies banks employ in setting their currency exchange rates, impacting where customers might find the best deals depending on whether they are buying or selling.

Gedaa Bank (GDB) emerged as the bank providing the highest average buying rate, at 107.34 Br for a dollar, making it the most attractive option for customers looking to sell. Dashen Bank (DSH) offered the lowest average buying rate at 104.16, indicating a less favourable option for sellers.

On the selling side, Berhan International Bank (BIB) led the pack with the highest average selling rate of 119.8379 Br for a dollar, positioning itself as the most expensive option for customers buying forex. GDB, which had the highest buying rate, offered the lowest average selling rate at 112.70.

The divergence in rates suggests that the float has not yet led to a uniform market-clearing price, with the policy goal of price discovery still ongoing.

Central Bank Governor Mamo Mihretu’s decision to float the Birr was a long-overdue acknowledgement of the distortions created by the previous system, where the official exchange rate was artificially maintained, far removed from the parallel market rate. However, the speed and severity of the depreciation unveiled that the market had been expecting this move and that the Birr’s real value, as determined by market forces, was far weaker than previously acknowledged.

The depreciation is likely to have far-reaching consequences for the economy. The immediate impact will be on inflation, which is expected to surge as the cost of imports rises. Given Ethiopia’s reliance on imported goods, from fuel to foodstuffs, the weakening Birr will translate into higher prices for consumers, adding to households’ already considerable economic pressures. Businesses that rely on imported inputs will likely increase their costs, potentially leading to a slowdown in economic activities as they pass on these costs or reduce operations.

The authorities’ challenge now is to manage the transition to a fully floating currency while containing economic disruption. This will likely involve interventions to stabilise the market, such as showing their firepower in foreign currency reserves to smooth out excessive volatility or implementing measures to control inflation. However, with depleted foreign currency reserves, their ability to intervene effectively may be limited.

In the medium to long term, the success of their policy shift will depend on whether they can restore confidence in the Birr and maintain macroeconomic stability. This will require not only sound monetary policy but also structural reforms to improve the trade balance, attract foreign investment, and build up foreign reserves.

The coming weeks will be crucial in determining whether the Birr can find a stable equilibrium in its new floating state or the depreciation will continue unchecked, leading to a further loss of confidence and economic hardship. For now, the Birr’s rapid decline against the dollar serves as a reminder of the uncertainties of transitioning from a controlled to a market-driven economy.

Customs Commission Backtracks on Pre-Float Import Tax Calculations

Posted on by Tizita S.

Ethiopian Customs Commission has announced revised import tax regulations allowing shipments documented before the currency liberalisation will be subject to import taxes calculated based on the exchange rate prevailing at the time of documentation. However, for shipments documented after the reforms, the Commission set taxes and duties be determined using the daily indicative exchange rate set by the central bank.

The announcement comes a week after Commissioner Debele Kabeta issued a directive requiring all customs branches to adjust declaration rates to the current exchange rate, even for goods registered before the currency liberalisation. It also mandated the re-collection of taxes on imported goods previously assessed at the old rates.

The reform has had immediate consequences for importers, who are now facing higher costs. Businesses that had opened Letters of Credit (LCs) before the change were particularly hard hit, as they were forced to pay duties calculated at the new, higher rates, regardless of the exchange rate in effect when the LCs were issued. This has led to widespread disruption, with companies scrambling to cover the unexpected additional costs.

Debele noted the Commission’s efforts to adapt to the new economic landscape. He urged importers holding goods in dry ports due to misunderstandings to clear their shipments promptly. Failure to comply, he warned, could result in legal action.

 

 

Securities Exchange Nears Launch with Advanced Trading Platform

Posted on by Tizita S.

Ethiopian Securities Exchange (ESX) is on track to launch its real-time trading platform in the coming months, marking a momentous milestone for the country’s capital market.

A climactic component of this development was a partnership with Infotech Private Limited, a global leader in capital markets technology. The agreement, signed last week by ESX CEO Tilahun E. Kassahun and Infotech COO Muhammad H. Naseer, covers the design, supply, and installation of both an electronic trading platform and a broker back office and order management system.

The new platform will provide a modern, efficient, and transparent trading environment for investors, while the back-office system will streamline operations for brokerage firms.

“This partnership is a major step towards realising a world-class securities exchange in Ethiopia,” said Tilahun.

Infotech, with its three decades of experience in the financial sector, brings a wealth of expertise to the project. Muhammad expressed confidence in the partnership, indicating commitment to deliver cutting-edge technology solutions that will support ESX in creating a robust and vibrant capital market.

The Exchange has achieved a remarkable feat recently, surpassing its initial capital requirement by more than twofold. Raising a total of 1.51 billion Br capital, the Exchange paves the way for establishing Ethiopia’s first stock exchange.

Leaders Trade Dreams for Dirhams, Jeopardising Their Legacy

Posted on by Tizita S.

Dear Editors,

The recently sealed currency swap agreement between Ethiopia and the United Arab Emirates (UAE) is generating buzz, with many seeing it as a strategic alliance designed to enhance economic ties between East Africa and the Middle East. While the potential benefits of this arrangement are undoubtedly appealing, it is crucial to dig deeper and examine the possible risks that lurk beneath the surface.

Tesfaye B. Lelissa (PhD), in his commentary headlined, “Can Currency Swap Change the Regional Economic Dynamics” [Vol. 25, No. 1265, July 12, 2024], has shared compelling insights into the advantages of such partnerships; but, it would be shortsighted not to consider the counterarguments.

This agreement appears to embody the concept of comparative advantage, suggesting mutual benefits for both countries. However, the evident economic disparities between Ethiopia and the UAE raise red flags about an uneven playing field. The wealthier UAE may leverage its financial clout to dominate critical sectors in Ethiopia.

Imagine this: the robust Dirham could give Emirati businesses a considerable edge in the Ethiopian marketplace, potentially pushing local firms out of the way to securing land, productive assets, and industry control. The fallout could be that Ethiopian businesses and workers find themselves displaced by growing unemployment and deepening wealth inequality.

Tesfaye also argued in favour of the growing trend of digital currencies and payment platforms, but we need to tread cautiously here. If Ethiopia starts to adopt Emirati financial systems or digital currencies, it risks losing the ability to manage its monetary policies — a foundation of economic sovereignty. Harmonising regulatory systems for this swap could lead Ethiopia to adopt the UAE’s more stringent guidelines, possibly imposing foreign standards that do not meet local needs. This could skew the playing field against Ethiopian businesses and consumers.

We can learn from historical cautionary tales, such as those involving currency swap agreements between China and Japan or India and Japan, which struggled with swap sizes and exchange rate policy coordination. Their experiences remind us that Ethiopia and the UAE should remain vigilant to ensure a balanced and equitable partnership. Ethiopian policymakers should conduct a thorough and impartial analysis of the long-term impacts of this currency swap, engaging a diverse group of stakeholders, including independent economists, labour unions, and civil societies, to encourage a transparent and inclusive decision-making process.

We should also recognise that the UAE and other Middle Eastern countries may harbour political and non-secular agendas beyond economic integration. Ethiopia’s rich history and unique cultural identity are treasures that deserve protection. Depending too heavily on the UAE’s financial prowess could undermine Ethiopia’s sovereignty.

Policymakers should take a step back and carefully reexamine their strategies to prioritise the country’s long-term interests. By looking beyond immediate economic pressures, they can ensure that this partnership with the UAE promotes Ethiopia’s economic future, rather than jeopardising it.

Girma Woldemariam
United Kingdom

(kal101@protonmail.com)

 

MONSOON MAYHEM

Posted on by Web Master

A restaurant in Bole creatively adorned its ceilings with inverted umbrellas, a playful nod to the rainy season. The country experiences two primary rainy periods: Kiremt, the main season accounting for up to 80pc of annual rainfall, and Belg, a shorter period. Although Kiremt spans from June to September, its patterns fluctuate yearly due to climate change and natural weather cycles. While crucial for agriculture, which sustains the majority of the population, the heavy rains can also trigger devastating consequences like flooding and landslides. The recent catastrophic landslide in Gofa Zone, Southern Ethiopia Regional State which struck on July 24, 2024, was the result of intense rain showers in the Gezi Gofa wereda, claiming nearly 257 lives, according to aid agencies.

WHIPPING GREEN

Posted on by Web Master

Young boys in the Adey Abeba neighbourhood are ushering in the season with a bang, crafting custom whips from recycled plastic that were traditionally made from tree barks. Ethiopia is currently engaged in a massive Green Legacy initiative led by Prime Minister Abiy Ahmed (PhD). As part of this effort, the government is set to embark on a national tree-planting campaign on August 23rd, with an ambitious aim to plant 600 million trees nationwide.

POLE PERIL

Posted on by Web Master

A tilted electric pole near the Stadium area poses a safety hazard. A year ago, troubled Addis Abeba’s electric grid system was set for substantial rehabilitation with 57 million dollars financed by the World Bank, as the Ethiopian Electric Utility (EEU) moved to secure a technical consultant and provide an engineering procurement contract for evaluation. The project was planned to decrease power wastage and disruptions in the capital by renovating around 2,000 transformers, 674Km transmission lines, including a new 19Km underground layout and the installation of three switching stations.

New Tool Tracks Africa’s Youth Job Growth

Posted on by Web Master

A new tool to monitor and forecast youth job growth across Africa until 2030 was launched last week. The African Youth Employment Clock (AYEC) provides real-time data on job creation and employment trends, broken down by employment status, industry, and other key categories. Developed by the World Data Lab in partnership with the Mastercard Foundation, with support from the National Bank of Ethiopia, the Ministry of Innovation & Technology, the Ministry of Planning & Development, and the Ethiopian Statistical Service, AYEC leverages data from national statistics offices, the International Labour Organisation (ILO), and the International Institute for Applied Systems Analysis (IIASA).

By providing policymakers, researchers, and stakeholders with valuable insights, AYEC aims to contribute to creating dignified and fulfilling jobs for 30 million young Africans by 2030. With Africa’s youth population set to increase by nearly 100 million by then, addressing youth unemployment is a critical challenge.

Wolfgang Fengler, CEO of the World Data Lab, underlined, that Africa’s young population represents a unique demographic opportunity.

“If we exclude Africa, the world is running out of young people,” he said.

Bloomberg-Backed Training Seeks Boosting Financial Journalism

Posted on by Web Master

A new financial journalism training program expected to boost the country’s emerging capital markets kicked off last week. The initiative, a partnership between Bloomberg Media Initiative Africa (BMIA), Addis Abeba University, and Unity University, seeks to equip journalists with the tools to accurately and comprehensively report on the country’s financial landscape.

The seven-month training program is expected to start in September. It has been in the works for over a year following an invitation from the Ethiopian Capital Market Authority (ECMA) and offers a comprehensive curriculum covering financial reporting, data analysis, and economic policy.

Funded by Bloomberg Philanthropies, with support from the Ford Foundation and the Stavros Niarchos Foundation, the training is BMIA’s signature program, developed to increase the pipeline of skilled financial journalists and analysts embracing a data-driven journalism culture across Africa.

It was launched at Hyatt Regency, and saw the attendance of officials such as Hana Tehelku, director general of the Ethiopian Capital Markets Authority, and Aguil Deng senior program manager at Bloomberg LP. According to Christine Mwangi, secretariat director of Strathmore Business School, trainees will benefit from the expertise of business journalists and industry leaders, as well as hands-on experience with the Bloomberg Terminal while philanthropic partners are covering the tuition and program costs, ensuring accessibility.