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.


Ministry Ponders Tax Waivers for Rural Energy Solutions

Tax exemptions for off-grid energy technologies like solar pumps and mini-grids are under discussion, spearheaded by the Ministry of Water & Energy. Commonly used by rural households, officials disclose their simultaneous plan to develop 300 mini-grids in the next six years. According to Birhanu Weldu, the lead executive of rural energy technology development, the initiative tackles the country's low electrification rate and reliance on charcoal and firewood. Charcoal, fuel wood, and...


Rural Land Proclamation Comes to Light

A landmark legislation that grants title holders in rural areas the right to use the property as collateral was unanimously ratified by Parliament last week. It primarily focuses on extending access to finance for farmers and pastoralists, through a structured land title system. It also introduces criminal penalties for the illegal transfer of property. Replacing the 18-year-old proclamation for rural land management, the law sentences individuals engaging in land invasions and unauthoris...


Ethiopian Unveils $50m Domestic Terminal Renovation

With a rising demand for domestic travel, Ethiopian Airlines has renovated its terminal at Addis Abeba Bole International Airport with 50 million dollars to handle customers. The expanded terminal has doubled its previous size to 25,750Sqm and accommodates 200 daily flights to and from 22 domestic destinations. It includes four contact gates, 10 remote departure gates, 22 check-in counters with automated baggage screening systems, shops and restaurants. The terminal also features a dedica...