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Chinese Textile Manufacturer Joins Adama Industrial Park

Sep 24 , 2022

A Chinese textile manufacturer has signed a 216 million Br deal for a lease at Adama Industrial Park. The managers of Lighthouse Garment Manufacturing Plc say they expect to invest close to one billion Birr into their new venture and create over 600 job opportunities. The company produces textile fabrics with plans to supply local markets and export a third of its products to buyers in Singapore, Sudan, Tanzania, and Angola. Lighthouse Garment Manufacturing has been in the manufacturing business for over 20 years. The deal last week bucks the trend the Industrial Parks Development Corporation (IPDC) has been witnessing in the textile industry over the past year. Hawassa Industrial Park, its textile hub, has seen its biggest tenants abandon projects or slim workforces and cut production following Ethiopia's debarment from a preferential trade regime with the United States.

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...

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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...

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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...

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