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RIDE to Change Vehicles with Electric Cars
RIDE company was working with its drivers to change their cars with electric vehicles. The transition of the vehicles of more than 40,000 drivers of RIDE from gas powered cars into electric cars will help the economy of the country by saving foreign exchange that is used to import oil.
RIDE drivers who had the financial capacity could save for six months to buy the electric car while others could own the car by paying in advance 20% to 30% of its total price.
RIDE has benefited more than 43,000 drivers and created permanent employment for about 500 citizens. It is now considering to expand its services to the regions and East African countries. Source: Ethiopian Press Agency
Transactions with Cryptocurrencies are illegal
The National Bank of Ethiopia has warned against the use of crypto currencies, stating it has not given any permission for its use in Ethiopia.
The transactions using crypto currencies are being conducted without the knowledge of the bank and involve large sums of money, creating a conducive environment for money laundering. The bank announced that the public should be aware that it has never given permission for crypto currencies in the country, and any transactions or payment using crypto currencies are illegal. Source; NBE
Ethiopia’s proposed annual budget increased by 17 percent
The Ministry of Finance of Ethiopia has proposed a total budget of 786.6 billion Birr for the next budget year of the country, which will start in July 8, 2022.
The amount is 16.6 percent more than the total budget of Ethiopia for the current year including the additional budget the House of Peoples Representatives (Ethiopian Parliament) approved a few months ago. Source; Newbusinessethiopia
Progress Bank Under Formation
Progress Bank started to sell shares after acquiring permission from the National Bank of Ethiopia.
The bank aims to support civil society organizations (CSOs) and minimizing their reliance on foreign aid by establishing various fund generating schemes. The bank’s priority targets include health, education, technology, sanitation, climate change, financial empowerment of women, and employment creation for rural and urban youth.
CSO operators and the private sector were consulted to establish the bank after the CSO proclamation of 2009 was replaced by the new CSO proclamation which was promulgated in 2019. Source; Capital
NBE Issues Licenses to 8 New Commercial Banks
Last year, the central bank revised a decade-old ‘minimum capital requirement for banks’ under directive SBB/78/2021. This has raised the paid-up capital for commercial banks from 500 million to five billion birr.
Of 24 new private Banks under formation, eight that complied with NBE’s requirements have now been granted the license to proceed to the establishment phase.
Three others are expected to fulfill the requirements in the next three months and could acquire the license but if the establishment process fails, the capital raised from stakeholders will be returned. Source; Monitor
Industrial Parks Attract Investment
According to Industrial Parks Development Corporation (IPDC), new foreign and domestic investments joined industrial parks over the past three months. The investments are participating in agriculture, medicine and medical facilities, and product and service sectors.
Industrial parks which were constructed during the past three years had started operating. Forty-four thousand job opportunities were created during the past 9 months of the current fiscal year. A number of investors come from China, India, and the Middle East. Investments also flow from countries such as France and Australia.
IPDC was established in 2014 as a public enterprise. It has a vision of becoming a leading eco-industrial parks developer and operator in Africa by 2025. Source; Walta
Ethiopian inches to acquire 45% share in Air Congo
Ethiopian Airlines (ET) edges closer to acquire a 45 percent stake in Democratic Republic Congo’s national carrier, Air Congo. ET will overtake the management contract for the airline, apart from acquiring shares.
The deal will increase the number of ET’s stakes in foreign airlines to four, since it started establishing subsidiary airlines twelve years ago. So far, ET has secured a 49 percent share in Malawi airlines, 45 percent in Zambian airlines, and 27 percent in Togo (Lome) airlines (ASKY). These also include management contracts for the airlines. Source; Reporter
Ethiopia expects AGOA privilege to resume by December 2022
The Ethiopian government expects President Joe Biden to approve the ongoing discussions to resume Ethiopia’s eligibility to African Growth and Opportunity Act (AGOA), by December 2022.
Biden signed an executive order to delist Ethiopia from AGOA exactly in December 2021. A number of foreign companies inside Industrial parks are already considering relocating from Ethiopia, to alternative investment destinations, as they came to Ethiopia primarily targeting Ethiopia’s eligibility to AGOA.
The delisting of AGOA did not only affect exporters based in Ethiopia, but also the government’s policy over industrial parks. The government stopped investing in new industrial parks following the ban. Source; Reporter
Bill bars regional states from licensing artisanal miners
The Ministry of Mines drafts a bill to prohibit regional governments from giving small scale mining licenses at a regional level. If ratified, regional governments will not be able to issue artisanal and small-scale mining licenses.
The minister announced the cancellation of 850 mining export companies’ licenses that are found engaging in illegal mining export. A further 122 licenses were also canceled, for sitting idle for three to ten years after taking the license.
The revision intended to increase gold supply, and benefit all those who supply gold to the National Bank, beginning with 50 grams. Previously, only those who offered more than five kilos of gold were eligible for the premium. Source; Reporter
Ethiopian Exporters Eye China’s Growing Sesame Market
Ethiopian sesame producers and exporters are keen to further penetrate the Chinese market amid growing demand among Chinese consumers.
China has recently been a major destination for Ethiopia’s sesame seed export. Between 2018 to 2021, China imported close to 282,554 tons of Ethiopia’s sesame seed, making it the largest importer of the commodity.
Apart from sesame, Ethiopian coffee is also penetrating China’s booming coffee market as the Asian country becomes its eighth largest importer of coffee over the last ten months. Source; Monitor
Addis Ababa’s Cabinet Approves 100bln Birr Budget for Next FY
Addis Ababa City Administration Cabinet has passed a 100.05-billion-birr spending plan for the 2022/23 Ethiopian budget year, which will start on July 8.
The total budget has shown a 41.6 percent increase as compared to the concluding 2021/22 Fiscal year spending. 54.87 billion birr is allocated for capital expenditure and 41.31 billion birr for recurrent spending, and the remaining 3.87 is also set aside as a reserve. Source; Monitor
Ethiopia’s RIDE to Expand its Taxi-Hailing Service to Djibouti
Ethiopia’s taxi-hailing and Booking Service prover, RIDE, is set to enter Djibouti after its parent company, Hybrid Designs Plc, finalized preparation to launch the service in the neighboring nation. Source; Monitor
Ethiopia to Set up Agriculture Mechanization Excellence Center
Ethiopia is set to establish an agricultural mechanization center of excellence to drive its effort to modernize the agriculture sector. It will be built in Addis Ababa and sub-branches will be built in six different regions.
It will serve as training center, a center for testing and certification for various types of agricultural mechanization machinery, and tasked to certify engineers and design professionals from various higher education institutions. Source; Monitor
Algeria Becomes Afreximbank’s 52 Member State
Algeria has become a member state of the African Export-Import Bank (Afreximbank) as the bank closes in on full coverage of the African continent.
With Algeria’s accession, the Bank is only 3 States short of achieving full continental coverage. Source; Monitor
AfDB supports the Addis-Djibouti business corridor in Africa
A project supported by the African Development Bank (AfDB) and implemented by the Pan African Chamber of Commerce and Industry (PACCI) and IGAD to enhance collaboration between the private sector and IGAD member states in the Addis Djibouti Corridor received its first batch of equipment.
The five development priorities of the AfDB: the High 5s – Light up and Power Africa; Feed Africa; Industrialize Africa; Integrate Africa; and Improve the Quality of Life for the People of Africa. Source; Capital
Ethiopia Announces Fuel Price Increment
The Ethiopian Ministry of Trade and Regional Integration announced a revision on prices for fuel, starting from July 6, 2022. The revised price of the different types of fuel/gas are as follows: Benzene (47.83 birr) Diesel (49.02 birr) Kerosene (49.02 birr) Light black diesel (53.10 birr) Hard black diesel (53.37 birr) Airplane fuel (98.83 birr). Source: Fana
Parker Clay, Akshay Jain Agree to Enter Ethiopian Industrial Parks
Two private manufacturing firms, Parker Clay Plc and Akshay Jain have agreed on Monday to start operations inside the Addis Ababa and Jimma industrial parks, respectively.
Parker Clay manufacturing will invest at least 30 million Birr on 1,150 square meters of shade inside Addis Industrial Park.
The company plans to manufacture leather products in its newly acquired shade and expects to eventually create job opportunities for at least 300 people.
Akshay Jain Company, on the other hand, will invest some 884 million Birr on 40,000 square meters of land inside Jimma Industrial Park to install an Avocado oil, Biodiesel, and Bio fertilizer plant. Source; Monitor
Ethiopia’s First Free Trade Zone to be Opened in Dire Dawa
Dire Dawa is selected to host the free trade zone due to its proximity to ports, market potential, and huge cargo gravity as well as suitability for multimodal transport and logistics operation.
Such facilities would help reduce logistics time and cost reduction, while boosting trade competitiveness, FDI flow, urbanization, and industrialization. Source; Monitor