Policy Bank Embarks on Bankable Idea Financing


Policy Bank Embarks on Bankable Idea Financing

A four billion Birr fund that promotes startups was revealed by the Development Bank of Ethiopia last week. According to the President, Yohannes Ayalew (PhD), the new fund is expected to provide seed money for promising ideas and continued credit provisions to firms which manage to "graduate" into full-fledged businesses. The new financing mechanism would contain a televised process through which applicants will pitch their ideas to judges from the private sector, offering up equity, Yohannes disclosed during a discussion panel hosted by the Ethiopian Youth Entrepreneurs Association, held at the recently opened science museum near the Grand Palace. The founder of Kifya Technologies, Munir Duri, moderated the panel that discussed bottlenecks of access to finance for young entrepreneurs while the Minister of Innovation & Technology, Belete Molla (PhD), spoke to experts from the Intelligence Network Security Agency (INSA) cyber talent program who displayed their products at the museum. With 300 companies already registered, the policy bank will enter as the sole investor if none of the judges decides to buy equity in the pitched idea, with prospects to withdraw in a couple of years following the companies' growth, according to Yohannes. Muhidin Shefa, financial inclusivity director at the central bank, revealed that a proclamation expanding the portfolio of collaterals to include intellectual property is under work. According to Muhidin, the move is part of the "Homegrown Economic Reform Agenda" that aims to foster the private sector's role shortly.


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Ethiopian Seafarers Contribute $50m Annually in Remittances

Ethiopian Maritime Authority disclosed 50 million dollars in annual remittances from seafarers deployed internationally. Abdulber Shemsu, the director general of the Authority, said Ethiopia's membership in the International Maritime Organisation (IMO), establishes global standards and guidelines for safe, secure, and environmentally sustainable shipping practices. With 176 member countries and three associate member countries, including Ethiopia, the IMO provides a framework for ensuring...


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AfDB Launches $1.5m Initiative to Propel Agro-Industrial Parks

A 1.5 million dollar initiative for the development of three Agro-industrial parks was commenced last week. Financed by the African Development Bank (AfDB), the project includes feasibility studies, a master plan, and an environmental and social impact assessment. The Phase Two project, which includes capacity building for stakeholders, was initiated last week with an agreement between Semereta Sewasew, state minister for Finance and Gunther Beger, managing director of UNIDO. Semereta said...


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Cabinet Approves Public Service Legislation

Council of Ministers has unanimously approved the legislation that aims to raise the competency and professionalism of public service in the country. The Federal Civil Servants Proclamation is pending ratification from Parliament. The decision was made during the 30th meeting of the Cabinet last week, which follows the ratification of the public service and administrative policy. Currently, the 176 federal agencies within 22 ministries, collectively employ around two million people. The polic...


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