Economic Association Proposes Market Stabilisation Board

Apr 30 , 2022

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.


Abyssinia Bank Taps to Digital Loan Solution

The Bank of Abyssinia (BoA) is moving forward to provide banking solutions facilitating microloans. The Bank has hired an Indian-based tech vendor Newgen Software Company, that bagged the international bid on December 22, 2022. Over 10 companies have shown interest in the bid floated by the bank four months ago. The solution provider has committed to completing the project in six months with Yonas Daniel, regional manager for Newgen, and Menbereselassie Gebrekidan, procurement director at Aby...



Bank of Abyssinia rolls out banking services on a truck around Meskel square in the capital. With less than half of Ethiopian adults having access to bank accounts, financial inclusion is a major issue. The central bank revealed in August 2022 that 8,944 commercial bank branches exist in the country. The 30 commercial banks currently in operation offer credit services to less than 400,000 customers charging an average of 17pc interest on asset-backed loans...



Left) Elias Woldu and Mesnbet Shinkute sign a Memorandum of Understanding on behalf of the Ethio-American and Addis Abeba Chamber of Commerce & Sectoral Association, respectively. Some estimates put the number of Ethiopian diaspora living abroad at over two million people, larger than the population of several small nations. Continued economic and political deprivation has forced many to leave the country for better opportunities. While migration to other countries is still high, the number...