Central Bank Amends Forex Rules

Oct 9 , 2021

In a directive issued last week, the National Bank of Ethiopia has allowed its governors and vice governors to approve advance payments on a case-by-case basis. The amended directive gives governors and vice governors the power to approve requests from businesses seeking for an advance payment exceeding 5,000 dollars to import goods from abroad. Additionally, the central bank amended a directive that governs external loans and suppliers credit. With the amendment, the debt-to-equity ratio, which used to be calculated based on manufacturers' paid capital, is now changed to registered capital. Companies wishing to secure external loans are required to keep their debt-to-equity ratio to 60:40.



A street lamp around Addis Abeba Stadium melds into the concrete backdrop emblematic of the capital's ageing infrastructure. Over the past few years, Ethiopia's electric grid has been subject to destruction and theft, subjecting the public treasury to hundreds of millions in losses. Nearly half of the country's population does not have access to electricity. A series of projects by the World Bank has contributed to the slight but essential upgrade to the nation's grid, including a 500 million do...



A trio of donkeys drag along the main road in front of Menlik School around the Arat Kilo area. While the four-legged domestic animal is a venerated member of the Ethiopian labour force, its skin and meat are increasingly valued in the international markets. Rhong Chang, a donkey slaughterhouse operating in Assela Town, Oromia Regional State reopened its services after a seven-year break two years ago. Public outroar has often accompanied the entrance of donkey abattoirs into Ethiopia since anot...



A bustling market emerges under a bridge in the boroughs of the Bole Michael area. Addis Abeba City Administration has launched a series of aesthetic initiatives embalmed in themes of beautification and urbanisation that have removed thousands of shops built with makeshift tents. Above a quarter of Addis Abeba's labour force is engaged in the informal economy, which while often associated with connotations of illegality, remains a sizeable employer in emerging economies across the world. Calibra...