Industrial Parks Generate $103m

May 4 , 2019


The five operational industrial parks generated 103 million dollars from exports in the first three-quarters of the current fiscal year. This is a 40pc improvement from last year’s performance, which was 73.1 million dollars. Textile, garment, shoes and other leather products exported to the United States, Europe and Asia were the sources of the revenue. During the reported period, the parks created 16,000 new jobs, bringing the total number of employees in the five parks to 70,000. The government has plans to build 11 industrial parks with an estimated cost of 30 billion Br. So far, it has completed the construction of seven parks, of which five: Hawassa, Bole Lemi I, Kombolcha, Meqelle and Adama industrial parks are operational.


Radar

Electricity Bills Get the VAT Jolt

The new Value Added Tax (VAT) has begun implementation on electricity consumption and various service fees affecting customers who use more than 200 kilowatt hours of electricity per month. Based on a directive from the Ministry of Finance, the tax will be applied to the excess amount of electricity consumption above 200 kilowatt hours. The Ethiopian Electric Utility (EEU) began implementing the VAT on bills starting from November though both prepaid and postpaid customers will have to pay V...


Radar

Gadaa Bank Expands Reach, Faces Lending Constraints

Gadaa Bank closed its first full fiscal year of operations with a net profit of 90.2 million Br. The 18-month-old Bank held its annual general assembly at Millenium Hall on Africa Avenue last week where the board announced that during the year, the Bank opened 15 branches and now has 85 operational branches. “Due to recently enacted policy measures on credit by NBE and unmet resource mobilization during the fiscal year, the Bank was unable to make loan disbursements,” stated Wolde...


Radar

Oromia Bank's Branch Expansion Weighs on Profits

Oromia Bank reported a 47pc decline in net profit to take in 840.9 million Br for the past fiscal year. Interest income grew by 21pc to reach 7.19 billion Br while personnel expense grew by 36pc to hit 3.16 billion Br. The opening of 72 new branches, bringing the total to 575, led to a four percent growth of deposits to 56.4 billion Br. The profits are “unsatisfactory against our ambitious moves,” said Assefa Seme (PhD), board chairperson. “The deviation is primarily attributed to our aggr...