State Telco, Transport Ministry to Ink Fuel Deal

Jul 2 , 2022


The state-owned Ethio telecom and the Ministry of Transport & Logistics are set to officialise a deal that would see transport vehicles use the former's mobile money platform to pay for fuel at gas stations. Federal transport authorities have identified a quarter of a million vehicles providing public transport services that are set to continue receiving fuel subsidies for the coming five years. All other vehicles will see subsidies lifted off next financial year, paying full price at pumping stations by next July. Transport vehicles will receive a personal identification number (PIN) code that allows them to pay at gas stations using Telebirr, where data on vehicles and their owners is stored. Hundreds of transport providers had registered on the platform by the middle of last month.


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...


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...


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...