Economic Association Proposes Market Stabilisation Board

Apr 30 , 2022


[ssba-buttons]

The Ethiopian Economic Association (EEA) has proposed the formation of a 'supply and price stabilisation board' to rein in galloping inflation. A study it conducted reveals that supply shortages, unstable economic governance, increased import trade tariffs, political instability, and armed conflict have been the main contributors to the skyrocketing cost of living. Headline inflation in March registered at 34.7pc, the eighth consecutive months above the 30pc mark, according to the Ethiopian Statistics Service. Food inflation clocked in at a staggering 43.4pc, the highest recorded in over a decade. The Russian invasion of Ukraine is expected to exacerbate the economic downturn brought on by the effects of the COVID-19 pandemic and the armed conflict in the country's north as prices for fertiliser, cooking oil and fuel rise. The study indicates that declining productivity and inconsiderate bank interest rates on deposits are part of the equation as well. The Association is urging federal officials to consider allowing the import of pharmaceuticals, as well as selected construction, agricultural and industrial inputs, through Franco Valuta in addition to the basic food items the Ministry of Finance approved for the import scheme recently.


Radar

Ethiopia, IFAD Sign 69.2m Dollar Deal to Promote Lowland Resilience

The Ethiopian Government and the International Fund for Agricultural Development (IFAD) have signed a 69.2 million dollar grant agreement to implement Phase II of the Lowland Livelihoods Resilience Project (LLRP II). The grant agreement was signed by Finance Minister Ahmed Shide and IFAD President Alvaro Lario. The project targets climate resilience and improved livelihoods for three million people in pastoral and agro-pastoral communities. Co-financed by the World Bank, LLRP II covers eight reg...


Radar

NBE Expands Diaspora Warning Over Unlicensed Remittance Firms

The National Bank of Ethiopia (NBE) has issued an expanded public warning targeting unlicensed remittance operators abroad, flagging four U.S.-based companies it says are undermining Ethiopia's financial regulations. The warning includes newly disclosed findings and specific cases that underscore growing concerns about illicit cross-border financial activity. Remittance flows remain a vital lifeline for Ethiopia's economy, supporting households and supplying critical foreign currency. But as...


Radar

Stricter Standards Unveiled for Public Auditors, Accounting Firms

The Accounting & Auditing Board of Ethiopia (AABE) has issued a new directive aimed at strengthening oversight and professional standards in the accounting and auditing sector. Grounded in the Financial Reporting Proclamation, the directive addresses long-standing regulatory gaps while preparing the sector for the country's emerging capital market. Key provisions introduce stricter licensing standards for public auditors, professionals permitted to audit public interest entities. Applican...