Finance Ministry Asserts Vitality of Budget Austerity

Jun 24 , 2023

The proposed 801 billion Br "conservative budget" was posed as a tool for fighting inflation by State Minister of Finance Eyob Tekalegn (PhD) last week. He addressed questions raised by members of the Plan, Budget and Finance Affairs Standing Committee chaired by Desalegn Wedajo. Eyob suggested that the reduction in the budget factoring inflation is a result of careful calibrations to create macroeconomic stability. With the goal of keeping the budget deficit at around 2.1pc of GDP, reliance on a "vibrant treasury market" was hinted at as an important fiscal tool in the Ministry's kit. Prioritisation of domestic and foreign debt repayment was also highlighted as an undercurrent in the devising of the proposed budget. As the federal government expects to source 60pc of its budget from taxes, Eyob suggested the expansion of services from which Value Added Tax (VAT) will be collected and the national implementation of property taxes as impending developments in the proposed budget. Eyob reiterated the notion of Ahmed Shide a month prior regarding the imminent restructuring of public servants with only targetted new employment slated for next year. "Our responsibility is to enable a bustling private sector," he noted.


Geda Special Economic Zone Receives Prospective Tenants

East African Holding and Ethio-Chicken have been shortlisted to invest in the Geda Special Economic Zone(GSEZ), located in the tri-state area shared by Mojo, Adama, and Shashemene cities within the Oromia Regional State. The two companies were selected from 120 investors who showed interest in acquiring space in one of the largest SEZs in Africa. Close to 404hct of land has already been developed in the expansive economic zone, out of a potential 24,000 hectares, with lease prices set between...


Standard Institute Revamps Fees, Board Restructuring

The Ethiopian Standards Institute (ESI) is set to introduce fees for standards sticker, establish a new governing board, and address collaboration with other regulatory bodies. The Institute plans to strengthen its financial standing by charging fees for standards and product certification services to support its operations and annual budget. A key change involves replacing the current Council of Standards with an 11-member Board of Directors. The Minister of Trade & Regional Integration...


Safaricom Ethiopia Rolls Out its Network to Tigray

With 125 self-built towers, Safaricom Ethiopia has launched its operations in the Tigray Regional State. Executives disclosed plans to invest in an additional 166 towers and expand their reach to the remaining towns. "This is the most exciting milestone in Tigray since the return of social services," said Getachew Reda, president of the Interim Regional State Administration. In July 2021, the consortium-backed telecom giant entered Ethiopia's market, historically dominated by state-owned E...