Public Enterprises Underperform Debt Servicing

Nov 30 , 2019


[ssba-buttons]

The Ministry of Finance reported that two public institutions failed to service loans in the first quarter of this fiscal year. In its report to parliament, the Ministry mentioned the Addis Abeba Water & Sewerage Authority (AAWSA) and the former Ethiopian Airports Enterprise have failed to pay back their loans. In the reported period, the Ministry expected that all of the state-owned enterprises would service 245 million Br in debt. However, only 62 million Br was paid by enterprises, 25pc of the target. Ethiopia currently has an overall external debt of 27 billion dollars, out of which it was able to service more than 9.4 billion Br in the last fiscal year. State-owned enterprises owe 11.2 billion dollars in the external debt burden, while the federal government owes the remaining.


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...


Radar

Export Recovery Gains Ground, Industry Still Lags Potential

The Ministry of Industry (MoI) has reported a modest rebound in Ethiopia's manufacturing exports, with revenues climbing eight percent in the 2025 fiscal year to reach 318 million dollars. Minister Melaku Alebel attributed the growth to a gradual sectoral recovery but acknowledged the figures remain well below the country's industrial potential. Speaking at a forum held with 60 top-performing manufacturers, Melaku said the ministry is working to unlock bottlenecks and improve coordination. Th...