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.


E-Consultation Portal Launched to Boost Stakeholder Engagement

An e-consultation manual and portal designed to enhance stakeholder engagement in the drafting of laws before their final ratification stage was launched last week. Developed by the Business Environment & Investment Climate (BEIC) project team, the platform operates under the oversight of the Justice and Technology ministries. It aims to improve transparency, efficiency, awareness, and effectiveness throughout the law formulation and enactment process. According to Belayhun Yirga, stat...


Trade Ministry Changes Guard

Prime Minister Abiy Ahmed (PhD) made a series of appointments last week, assigning Kassahun Goffe (PhD) as the new Minister of Trade & Regional Integration. Kassahun, who previously served as the State Minister, succeeds Gebremeskel Chala, who navigated the country through various trade reforms. The appointment comes amidst an export slump, as Ethiopia has faced major economic and political headwinds over the past few years. The Ministry reported a shortfall of 863 million dollars from it...


Ahadu Bank Savours First Taste of Profits

Ahadu Bank registered a 175 million Br gross profits in the ended year, turning around its financial performance. The two-year-old Bank established with 503 million Br in paid-up capital mobilised from 9,600 shareholders has also managed to double the figure to 1.03 billion Br. Ahadu's total assets have also nearly doubled to 6.3 billion Br, while its operating income soared to 1.15 billion Br from financial services for nearly 700,000 customers. It also expanded its branch reach across the c...