Boeing to Pay $2.5b in Settlement Fees

Jan 9 , 2021


[ssba-buttons]

The Boeing Company agreed to pay over 2.5 billion dollars in settlement fees in relation to the two 737 Max plane crashes, which resulted in the deaths of 346 people in Indonesia and Ethiopia. The United States Justice Department, which had reached an agreement with the manufacturer, stated earlier last week that the multinational company will settle a charge of criminal conspiracy to defraud the United States Federal Aviation Administration. Around 1.7 billion dollars will be given to airlines that suffered losses from the international grounding of 737 Max aircraft. In addition, half a billion dollars will be forwarded as compensation to the families of those who lost their lives in the two crashes. Boeing admitted to criminal misconduct for hiding significant flaws in the 737 Max and misleading regulators. The criminal charges against it will be dropped in three years on the condition that the company complies with the terms of the settlement agreement.


Radar

Dangote, EIH Break Ground on Mega Fertilizer Plant in Somali Region

Ethiopian Investment Holdings (EIH), the state's sovereign investment arm, has struck a deal with Dangote Group to build one of the world's largest urea fertiliser complexes in Gode, Somali Regional State. The 2.5 billion dollars project will see EIH hold a 40pc stake while Dangote keeps 60pc. With agriculture employing over 70pc of Ethiopians, the government hopes the factory will cut fertiliser costs, create jobs, and boost crop yields while positioning the country as a regional hub. Design...


Radar

CBE Capital Joins Nib Bank for Market Expansion

Nib International Bank has partnered with CBE Capital, the investment arm of the Commercial Bank of Ethiopia (CBE), to expand investment banking services and shore up its finances. The deal covers advisory services, seeking to strengthen Nib's balance sheet, attracting capital, and positioning the bank in a modernising financial sector. The partnership follows a difficult year for Nib, where net profit dropped 36pc to 957.9 million Br and deposits shrank, despite paid-up capital climbing to ...


Radar

Credit Cap Nears Lift-Off

The National Bank of Ethiopia (NBE) is preparing to lift its long-standing credit cap by September, unlocking 1.3 trillion Br in bank lending. The move, flagged by board member and State Minister of Finance Eyob Tekalegn (PhD), follows years of complaints from businesses that borrowing limits choked large-scale projects. Eyob told a local radio station the reform reflects rising investor appetite and improved economic conditions, though he admitted "financing has been the biggest bottleneck for...