Zemen Slashes Lending Rate Across Three Sectors

May 9 , 2020

Zemen Bank has cut interest rates on commercial loans for borrowers in three sectors that have been hit hard by the Novel Coronavirus (COVID-19) pandemic. The hotel, tourism and manufacturing industries have received a 0.4 to three percentage point interest rate cut. Beginning May 11, 2020, the interest rate reduction will remain active for two months. The Bank has been charging an 8.5pc to 17pc interest rate on loans for the hotel and tourism industry and an 8.5pc to 18pc rate for borrowers from the manufacturing industry. It cut the rate based on the borrowers' outstanding loan amount and the terms of the loans. Two weeks ago, the National Bank of Ethiopia (NBE) called upon all chairpersons of the commercial banks and held a discussion on a mandatory decrement of an interest rate for the hotel, tourism and horticulture industries. The interest rate reduction of the industries covers 42pc of the loan portfolio of the Bank, according to Dereje Zebene, president of the Bank, which previously cut interest rates for borrowers in the horticulture industry. Out of Zemen's total loan portfolio, amounting to 9.6 billion Br, the three industries combined account for four billion Birr.


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...


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...


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...