Parliament Approves 122b Br Supplementary Budget

Jan 29 , 2022


[ssba-buttons]

During a session last week, Parliament approved a proposed additional budget of 122 billion Br for the fiscal year. Of the 309 MPs in attendance during the session, nine voted against while seven abstained. The majority of the funds, around 90 billion Br, is earmarked for the Ethiopian National Defense Force (ENDF), which has been engaged in the militarised conflict in the country's north for well over a year. Food assistance accounts for eight billion Birr of the supplementary budget while an equivalent amount is being held as a contingency budget. Of the remainder, five billion Birr has been allotted for the reconstruction of infrastructure damaged by the civil war and two billion Birr will go to the rehabilitation of irrigation dams at state-owned sugar estates. Parliament had approved a 561 billion Br federal budget for the fiscal year last July.


Radar

Dangote, EIH Break Ground on Mega Fertilizer Plant in Somali Region

Ethiopian Investment Holdings (EIH), the state's sovereign investment arm, has struck a deal with Dangote Group to build one of the world's largest urea fertiliser complexes in Gode, Somali Regional State. The 2.5 billion dollars project will see EIH hold a 40pc stake while Dangote keeps 60pc. With agriculture employing over 70pc of Ethiopians, the government hopes the factory will cut fertiliser costs, create jobs, and boost crop yields while positioning the country as a regional hub. Design...


Radar

CBE Capital Joins Nib Bank for Market Expansion

Nib International Bank has partnered with CBE Capital, the investment arm of the Commercial Bank of Ethiopia (CBE), to expand investment banking services and shore up its finances. The deal covers advisory services, seeking to strengthen Nib's balance sheet, attracting capital, and positioning the bank in a modernising financial sector. The partnership follows a difficult year for Nib, where net profit dropped 36pc to 957.9 million Br and deposits shrank, despite paid-up capital climbing to ...


Radar

Credit Cap Nears Lift-Off

The National Bank of Ethiopia (NBE) is preparing to lift its long-standing credit cap by September, unlocking 1.3 trillion Br in bank lending. The move, flagged by board member and State Minister of Finance Eyob Tekalegn (PhD), follows years of complaints from businesses that borrowing limits choked large-scale projects. Eyob told a local radio station the reform reflects rising investor appetite and improved economic conditions, though he admitted "financing has been the biggest bottleneck for...