Decline in Annual Export Earnings Despite Agricultural Boost

Jun 17 , 2023


[ssba-buttons]

Ethiopia has fallen short of its annual export goal, having only generated three billion dollars in revenue over the past ten months, according to a recent report by the Ministry of Regional Trade & Regional Integration. The agricultural sector remains the largest contributor with export earnings, making up 78.2pc of the total, followed by manufacturing at 11.6pc and mining at 6.41pc. Despite a modest growth rate of 5.4pc, it has failed to make up for the shortfall in other areas. There is a decline of 1.12 billion dollars from last year. The drop in earnings from gold export has been a significant factor in this decline, as the country only managed to achieve 35pc of its gold export targets, generating around 172 million dollars. The lagged effects of the country's expulsion from the African Growth and Opportunity Act (AGOA) have also contributed to the fall in exports from industrial parks by as much as 24pc. The labour-intensive textile sector, which accounted for close to 90pc of exports from industrial parks, has also been severely impacted by the AGOA expulsion. There is hope for increased export volume between countries within Africa, which currently stands at 14pc of the total. This is expected to occur following further implementation of the African Continental Free Trade Area (AfcFTA).


Radar

Bank of Abyssinia Signs Partnership with Droga Cooperative

Bank of Abyssinia has entered into a partnership agreement with Droga Health & Financial Savings and Credit Cooperative to provide financial support and services for its members. The agreement was signed yesterday at the Bank's headquarters. The deal aims to strengthen collaboration between the two institutions, enabling cooperative members to access tailored banking services. It was signed by Wosenyeleh Abera, Deputy CEO for Customer Relations and Marketing at the bank, and Zelalem Yilma...


Radar

Wegagen Introduces Real Time SWIFT Tracking

Wegagen Bank has launched a new mobile app feature enabling customers to track international SWIFT payments in real time. The bank is the first in Ethiopia to introduce an online SWIFT payment tracking system. By integrating SWIFT Global Payment Innovation, customers, particularly those involved in import-export trade, can monitor cross-border transactions using a Unique End-to-End Transaction Reference (UETR) directly from their smartphones. To use the service, customers select the SWIFT...


Radar

National ID, Zambia Partners to Expands Program Reach

The National ID Program has signed an agreement with Zambia's counterpart to provide consulting services for the development of software that will issue digital IDs. It is the first time the institution has extended its expertise beyond national borders, a sign of growing recognition for its rapid progress. Program officials described the partnership as a milestone in their effort to position themselves as a regional player in digital transformation. The collaboration is expected to center...