Coffee Rescue Mission Calls on EU Assistance

Feb 10 , 2024


Modalities to minimize the impact of the European Union Deforestation Regulation(EUDR) on smallholder coffee farms were discussed by senior government officials and EU representatives representatives last week. Semereta Sewasew, State Minister for Finance, expressed concerns over the achievability of compliance with the EU's regulation in a short period of time for a country that has mostly small and fragmented farmland. She underscored the committed will of the government to implement the 2.2 billion Br action plan unveiled two weeks back for improving compliance while acknowledging the difficulty of meeting stipulations of the EUDR in the short term. David Krivanek, Deputy Head of the EU Delegation to Ethiopia, reiterated the commitments in the  Regulation to fight against climate change and its determination to ensure commodities that will be available on the EU market are no longer contributing to deforestation. Nonetheless, he expressed plans by the EU to help Ethiopia with the implementation of the action plan alongside other development partners. The EUDR was ratified by the European Parliament in June last year. It effectively banks seven types of commodities, including coffee, from entering the market without due diligence statements proving no deforestation occurred during their production since 2020. Ethiopia exports around 40pc of its coffee to European markets which amounted to around 500 million dollars last year.


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...