Political Instability Costs Ethiopia $300m

Nov 16 , 2019


[ssba-buttons]

The security situation in the country has caused the loss of 300 million dollars in foreign direct investment (FDI), according to the Ethiopian Investment Commission. Out of the one billion dollars the commission had targeted for the first quarter of this fiscal year, it only achieved 70pc. “Some investors who have already completed the preparatory procedures to implement the planned investment projects refrained from taking the next steps due to the worsening security situation in different parts of the country,” said Hanna Araya-Selassie, the vice commissioner. Despite this, it was possible to create 25,000 new employment opportunities in the first quarter alone. The expansion of industrial parks, the development of appropriate policy frameworks and their effective implementation are crucial factors to attract foreign investment into the country, said Hanna. The Commission plans to bring 4.1 billion dollars in FDI into the economy in the current fiscal year.


Radar

Ethiopia, IFAD Sign 69.2m Dollar Deal to Promote Lowland Resilience

The Ethiopian Government and the International Fund for Agricultural Development (IFAD) have signed a 69.2 million dollar grant agreement to implement Phase II of the Lowland Livelihoods Resilience Project (LLRP II). The grant agreement was signed by Finance Minister Ahmed Shide and IFAD President Alvaro Lario. The project targets climate resilience and improved livelihoods for three million people in pastoral and agro-pastoral communities. Co-financed by the World Bank, LLRP II covers eight reg...


Radar

NBE Expands Diaspora Warning Over Unlicensed Remittance Firms

The National Bank of Ethiopia (NBE) has issued an expanded public warning targeting unlicensed remittance operators abroad, flagging four U.S.-based companies it says are undermining Ethiopia's financial regulations. The warning includes newly disclosed findings and specific cases that underscore growing concerns about illicit cross-border financial activity. Remittance flows remain a vital lifeline for Ethiopia's economy, supporting households and supplying critical foreign currency. But as...


Radar

Stricter Standards Unveiled for Public Auditors, Accounting Firms

The Accounting & Auditing Board of Ethiopia (AABE) has issued a new directive aimed at strengthening oversight and professional standards in the accounting and auditing sector. Grounded in the Financial Reporting Proclamation, the directive addresses long-standing regulatory gaps while preparing the sector for the country's emerging capital market. Key provisions introduce stricter licensing standards for public auditors, professionals permitted to audit public interest entities. Applican...