Millions Under Severe Hunger Risk


Tens of millions in Ethiopia will face acute food shortages in three months if sufficient aid fails to arrive in time, warns a survey conducted by the Food & Agriculture Organisation (FAO). Over 2.1 billion dollars is needed to address agricultural, nutritional and food insecurities that could put the lives of more than 20 million people in a precarious situation. USAID pledged 1.2 billion dollars three months ago in aid to respond to food insecurity in the Horn of Africa, following the survey's release that 32 million people across Ethiopia, Somalia, and Kenya face severe hunger. FAO urged prioritising drought and conflict-affected populations through life-sustaining food and nutrition assistance. The survey found close to 13 million people in Northern Ethiopia are in desperate need of emergency food assistance, showing 18pc increase from last year. Recurrent drought, depleting foreign exchange reserves, resumption of the war, periodic fuel shortages, and a sharp currency depreciation due to the parallel market exacerbated the economic outlook for the country.


Radar

Electricity Bills Get the VAT Jolt

The new Value Added Tax (VAT) has begun implementation on electricity consumption and various service fees affecting customers who use more than 200 kilowatt hours of electricity per month. Based on a directive from the Ministry of Finance, the tax will be applied to the excess amount of electricity consumption above 200 kilowatt hours. The Ethiopian Electric Utility (EEU) began implementing the VAT on bills starting from November though both prepaid and postpaid customers will have to pay V...


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Gadaa Bank Expands Reach, Faces Lending Constraints

Gadaa Bank closed its first full fiscal year of operations with a net profit of 90.2 million Br. The 18-month-old Bank held its annual general assembly at Millenium Hall on Africa Avenue last week where the board announced that during the year, the Bank opened 15 branches and now has 85 operational branches. “Due to recently enacted policy measures on credit by NBE and unmet resource mobilization during the fiscal year, the Bank was unable to make loan disbursements,” stated Wolde...


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Oromia Bank's Branch Expansion Weighs on Profits

Oromia Bank reported a 47pc decline in net profit to take in 840.9 million Br for the past fiscal year. Interest income grew by 21pc to reach 7.19 billion Br while personnel expense grew by 36pc to hit 3.16 billion Br. The opening of 72 new branches, bringing the total to 575, led to a four percent growth of deposits to 56.4 billion Br. The profits are “unsatisfactory against our ambitious moves,” said Assefa Seme (PhD), board chairperson. “The deviation is primarily attributed to our aggr...