Afrexim Bank Avails $500m Facility to Commercial Banks

Afrexim Bank Avails $500m Facility to Commercial Banks

September 15 , 2021

A pan-African multilateral financial institution is to avail half a billion dollars in a financial facility to commercial banks in Ethiopia by the end of this month. The African Export-Import Bank (Afreximbank) will provide the resources through the bank's trade facilitation program, designed to help African financial institutions deal with th...

== A pan-African multilateral financial institut...

Ethiopia Calls for Offer on Ethio telecom Privatisation

Ethiopia Calls for Offer on Ethio telecom Privatisation

September 14 , 2021

Ethiopia has made an offer for partial privatisation of the state-owned telecom monopoly, Ethio telecom. The Ministry of Finance has issued today an offer for prospective investors to acquire a 40pc stake in the company with over 56.2 million subscribers. Prospective investors need to pay a non-refundable fee of 20,000 dollars (over 900,000 Br a...

== Ethiopia has made an offer for partial privat...

Federal Gov't Lifts Tax on Consumer Goods

Federal Gov't Lifts Tax on Consumer Goods

September 3 , 2021

The federal government has designated edible oil, sugar and rice as tax-exempt consumer goods. Imported wheat is also exempt from duties and taxes. The value-added tax levied on eggs and pasta has also also been lifted. The exemptions will be in place indefinitely. This is expected to encourage businesses willing to import the items, while...

The federal government has designated edible...

DEVELOPING STORY: New Policy Requires Financial Institutions to Invest in DBE

DEVELOPING STORY: New Policy Requires Financial Institutions to Invest in DBE

August 31 , 2021

The central bank has introduced a new mandatory rule that demands commercial banks invest one percent of their annual loans to buy bonds from the Development Bank of Ethiopia (DBE). Insurance companies are also mandated to allocate 15pc of their net annual income to do the same. The measure is expected to strengthen the financial soundness of...

The central bank has introduced a new mandato...

DEVELOPING STORY: Central Bank Modifies Diaspora Account Restrictions

DEVELOPING STORY: Central Bank Modifies Diaspora Account Restrictions

August 31 , 2021

Beginning September 1, 2021, the requirement that obliged banks to surrender 30pc of forex deposited by diaspora account holders to the central bank will no longer apply. However, the surrender requirements on remittance (personal transfer) and exports has been raised from 30pc to 50pc. In addition, exporters will be able to use 40pc of their...

Beginning September 1, 2021, the requirement...

Central Bank Doubles Reserve Requirements

Central Bank Doubles Reserve Requirements

August 31 , 2021

Commercial banks are now obliged to place 10pc of their net deposits as a reserve with the National Bank of Ethiopia (NBE), double the amount the central bank has been holding. Effective tomorrow, September 1, 2021, the latest move targets reducing money circulating in the market and taming the growing inflationary pressure, where headline infla...

Commercial banks are now obliged to place 10p...

NEWS ALERT: Prices Hit the Roof, Recording Highest for the Decade

NEWS ALERT: Prices Hit the Roof, Recording Highest for the Decade

August 4 , 2021

Prices of food items hit a level recorded a decade ago, with headline inflation at 26.4pc last month, according to the Central Statistics Agency (CSA). Such rates have not been registered since the time of the late Prime Minister Meles Zenawi, whose administration’s exchange rate adjustment policies were criticised as inflationary. Driven b...

Prices of food items hit a level recorded a d...