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Securities Exchange Unveils Inaugural Board Ahead of Launch

Oct 7 , 2023

In a seminal move poised to shift the terrain of Ethiopia's economic landscape, the Ethiopian Securities Exchange (ESX) has unveiled its inaugural board of directors, with preparations set to finalise within the ensuing three months. At the helm, former Zemen Bank VP, Hilaway Tadesse, will steer the institution as a chairman, joined by an assemblage of eminent professionals,  including Eleni Gebremedhin (PhD), the progenitor of the Ethiopian Commodity Exchange (ECX), and Fikadu Petros, a distinguished legal expert. The announcement made by executives of Ethiopian Investment Holdings marks a step towards the inception of the ESX. Four state-owned enterprises – Ethio telecom, Ethiopian Shipping & Logistics (ESL), Ethiopian Insurance Corporation (EIC), and Birhana Selam Printing Enterprise (ESPE) – have been slated as founding members of the ESX, which is to permit a generous 75pc ownership stake to the private sector, a manoeuvre seen as the federal government's commitment to forging robust private sector alliances. The unveiling of the ESX Board, and the confluence of state enterprises and the substantive inclusion of private sector ownership, is expected to establish a paradigm in the investment arena, heralding opportunities in its nascent journey for mobilising capital.

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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Radar

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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Radar

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...

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