EU's Grant of 10m Euros Offers Ethiopia a Fiscal Lifeline

Aug 5 , 2023

As the country walks on a fiscal tightrope, the European Union has pledged a 10 million euros grant to improve the fiscal management of the Ministry of Finance in the next four years. The project aims to increase the Ministry's managerial capacity, budget allocation, procurement procedures and sedimentation of prudent financial management in lower echelons of government. State Minister Semereta Sewasew signed the agreement with the EU delegation at the Ministry's headquarters last week. Transparency, competition and accountability in public procurements, which account for 65pc of the state's expenditure, have been cited as shortcomings in budget administration by a Public Expenditure and Financial Accountability (PEFA) conducted by the IMF and World Bank. The Minister of Finance Ahmed Shide had indicated that fiscal austerity not limited to massive restructuring in the civil service, will commence in the budget year as prudent financial management has been recognised as critical. Payroll audits, follow-up on timeline changes in personnel, along with a meticulous recording of cash balances, debt and guarantees have all been recommended by international organisations.


DDR Initiative Gets 16m Boost

A 16 million euro initiative to facilitate the disarmament, demobilisation, and reintegration (DDR) of nearly 370,000 ex-combatants was launched last week. Financed by the European Union (EU) the program will be implemented across eight regional states. It is overseen by the National Rehabilitation Commission (NRC), the agreement was signed at the Ministry of Finance's headquarters on King George St. Key figures including Semereta Sewasew, state minister for Finance; Teshome Toga, commissioner...


Central Bank Launches Youth Enterprise Forum

A financial education program targeting youth and Medium & Small Enterprises (MSMEs) was launched by the National Bank of Ethiopia (NBE) last week. It aims to equip interested trainees with personal and professional knowledge through experts from banks and microfinance institutions who will provide comprehensive training. The training modules, developed in collaboration with The First Consult and BRIDGE, cover several angles of financial literacy, including deposits, digital financial servic...


ArifPay Takes a Leap with Massive Capital Boost

Shareholders of ArifPay Financial Technologies S.C. have taken a significant stride by resolving to raise the company's paid-up capital to 300 million Br. The decision doubles down from the current 140 million Br marking a substantial increase. ArifPay, was established by 142 shareholders and secured the distinction of being the first payment operator licensed by the National Bank in 2021. CEO Bernard Laurendeau emphasised the critical timing of this capital increase, aligning with the company...