Amhara Bank Reports Total Assets Surpassing 35 Billion Birr at General Meeting

Amhara Bank Reports Total Assets Surpassing 35 Billion Birr at General Meeting Amhara Bank held its 3rd regular general meeting of shareholders today, announcing that its total assets have reached 35.2 billion birr. The bank revealed a 33% increase in loan advancements, amounting to nearly 20 billion birr, and reported a 26% growth in total deposits, with regular and interest-free banking services reaching a combined total of 25 billion birr. Additionally, the bank’s annual income saw a significant surge of 146%, achieving 4.4 billion birr in earnings. The Chairman of the Board emphasized Amhara Bank’s commitment to its vision of serving a broader community, encapsulated in its motto, “Beyond the Bank”. The chairman also highlighted ongoing efforts to amass substantial resources to support this mission. In terms of accessibility, the bank has made impressive strides by opening 143 new branches across the country during the fiscal year, bringing the total number of branches to 310. Amhara Bank also reported a growing customer base, with more than 1.8 million customers and nearly 600,000 mobile banking users. Despite past challenges, the bank announced a profit of 669 million birr this year, successfully compensating for previous losses. The management expressed optimism for continued growth and resilience in the coming years.

Ethiopia’s Banking Reform Bill: Set to Be Ratified in Weeks, Opening Doors to Foreign Banks

Ethiopia’s Banking Reform Bill: Set to Be Ratified in Weeks, Opening Doors to Foreign Banks Ethiopia is preparing to open its banking sector to foreign competition for the first time in its history, marking a significant shift in the country’s economic landscape. A new law, currently under review by the Ethiopian Parliament, is expected to be approved next month, ushering in this landmark change. This decision is part of the Ethiopian government’s broader macroeconomic reforms aimed at modernizing the financial sector, boosting competition, and attracting much-needed foreign investment. The introduction of foreign banks into Ethiopia’s financial environment is seen as a key driver for improving services and products for consumers while spurring innovation within the sector. The upcoming law is set to dismantle long-standing barriers that have traditionally kept foreign financial institutions out of the Ethiopian market. By enabling foreign banks to collaborate with local institutions, the government intends to tap into international expertise and capital, enhancing financial inclusion and providing access to more diverse financial products for both businesses and individuals. Governor of the National Bank of Ethiopia, Mamo Mehretu, emphasized the importance of these reforms during a recent event organized by the European Council in Ethiopia (Eurocham). He highlighted that these changes are crucial for making Ethiopia’s economy more globally competitive and sustainable in the long term. He also stressed that attracting foreign businesses and increasing private sector participation are vital for fueling economic growth and development. The opening of the banking sector is expected to usher in a new era of competition, bringing improved service delivery and a broader range of financial products to the Ethiopian market. For consumers, this means access to enhanced services, lower costs, and more options. For businesses, both local and foreign, it offers an opportunity to tap into a growing and dynamic market. As Ethiopia prepares to integrate foreign banks into its financial system, the country’s economic outlook is brighter than ever. The government’s efforts to modernize the banking sector are set to unlock new opportunities and help position Ethiopia as an increasingly attractive destination for international investment. 1 COMMENT Ethiopia’s Banking Reform Bill: Set to Be Ratified in Weeks, Opening Doors to Foreign Banks - Ethio Diaspora Hub Service December 9, 2024 At 11:22 am […] Click here to read more […] […] Click here to read more […] Comments are closed.

Ethiopia’s Capital Market Hits a Milestone with the Launch of the First Securities Exchange

Ethiopia’s Capital Market Hits a Milestone with the Launch of the First Securities Exchange Addis Ababa, Ethiopia – December 7, 2024 – The Ethiopian Capital Market Authority (ECMA) has officially licensed the Ethiopian Securities Exchange S.C. (ESX), marking a historic milestone in Ethiopia’s economic transformation. This move is a key component of the country’s ongoing efforts to modernize its financial systems and support sustainable economic growth. The ESX, which has received regulatory approval from ECMA, is now the country’s sole platform for securities trading. This licensing marks the establishment of a formal, well-regulated market for businesses to raise capital and for investors to access new opportunities. The launch aligns with Ethiopia’s broader macroeconomic reforms aimed at strengthening the financial infrastructure and enhancing investor confidence. Hana Tehelku, the Director General of ECMA, hailed the event as a transformative moment. “The licensing of our first securities exchange is a vital step towards creating a vibrant capital market in Ethiopia. It will not only provide businesses with the tools to access sustainable financing but also open new avenues for investors to grow their wealth. As regulators, we are committed to ensuring that the market operates with integrity, transparency, and innovation,” Tehelku stated during the announcement. The ESX has also been granted an Over-the-Counter (OTC) market license, providing a platform for smaller companies that do not meet the stringent requirements for listing on the main exchange. This inclusive approach is designed to expand access to capital for businesses of all sizes and foster broader participation in Ethiopia’s capital markets. As part of the licensing process, the public has been advised that all securities and shares offered for trade must now be processed through the licensed exchange. This move is expected to streamline trading activities and promote market integrity. A New Era for Ethiopia’s Economy The establishment of the Ethiopian Securities Exchange comes as part of a five-year reform agenda aimed at modernizing Ethiopia’s economic landscape. With a robust regulatory framework in place, the market is poised to become a key player in Ethiopia’s economic development, allowing for better capital mobilization, boosting investor confidence, and creating new investment opportunities. “The launch of the securities exchange is a significant achievement in our journey to build a modern and effective capital market,” said Ms. Tehelku. “Our commitment to transparency, regulatory compliance, and market innovation will help ensure the long-term success and sustainability of this new platform.” Looking Ahead As the ESX begins operations, it is expected to facilitate a wide range of financial activities, from the trading of shares to the development of new financial products. The introduction of this exchange also paves the way for enhanced financial literacy and participation in Ethiopia’s capital markets, providing both local and international investors with the opportunity to engage with the country’s growing economy. The launch of the ESX is a crucial step in Ethiopia’s broader vision of becoming a regional financial hub, attracting foreign investment, and promoting the development of a dynamic capital market that supports businesses, individuals, and the nation’s long-term growth. For more information, visit ecma.gov.et. Contact: Saron WoldegabrielDirector, Communications & Public RelationsPhone: 011-5-57-81-62Email: swoldegabriel@ecma.gov.et 1 COMMENT kibrom December 9, 2024 At 9:00 pm We appreciated Ethiopia capital market authority for financial intelligence security of information technology We appreciated Ethiopia capital market authority for financial intelligence security of information technology Comments are closed.

Petroleum Prices Unchanged for December, Ministry Confirms

Petroleum Prices Unchanged for December, Ministry Confirms The Ministry of Trade and Regional Cooperation has announced that retail prices for petroleum products will remain unchanged for December, maintaining the same rates as November. The ministry emphasized the importance of compliance, urging gas stations and petroleum companies to avoid unnecessary stockpiling or price hikes. It called on all stakeholders to adhere to the decision and serve the public with integrity. Here are the current retail prices of petroleum products: Gasoline: Birr 91.14 per liter White Diesel: Birr 90.28 per liter Kerosene: Birr 90.28 per liter Light Black Diesel: Birr 100.20 per liter Heavy Black Diesel: Birr 97.67 per liter Jet Fuel: Birr 77.76 per liter The decision aims to ensure stability in the petroleum market and fair access for consumers.

Ethiopian Parliament Approves Real Estate Development and Property Valuation

Ethiopian Parliament Approves Real Estate Development and Property Valuation November 26, 2017 (Ahadu Radio) – During its 9th regular meeting of the 6th House of People’s Representatives in its 4th year of office, the Ethiopian Parliament approved three significant proclamations. These include the Real Estate Development and Immovable Property Marketing and Valuation Proclamation. Real Estate Development and Property Valuation Proclamation The Ethiopian Buildings Proclamation, part of the newly approved legislation, aims to address longstanding challenges in governance and regulatory practices. It focuses on: Enhancing accessibility for individuals with disabilities. Resolving issues related to construction quality and resource wastage. Establishing a transparent and efficient operational system for the sector. Following extensive discussions, the proclamation received unanimous approval from the council. Addressing Real Estate Market Gaps The Real Estate Development and Immovable Property Transaction and Appraisal Bill was also reviewed in detail. The bill addresses critical issues, including: The limited supply of real estate development failing to meet public demand. The absence of a modern, data-supported property valuation system. The lack of transparency in the property market, which has led to economic inefficiencies and negatively impacted governmental and public interests. After robust debate, the council approved the bill by majority vote, with two members dissenting and one abstaining. Electronic Signature Proclamation The third proclamation, focusing on electronic signatures, was presented with a detailed report and recommendations. Designed to modernize and streamline digital transactions, the bill is expected to significantly enhance efficiency and security in Ethiopia’s digital economy. Following wide-ranging discussions, this decree received unanimous approval. The Ethiopian Parliament’s decisions mark a significant step forward in addressing regulatory gaps and enhancing governance across critical sectors, including real estate and digital transactions. These changes are expected to bring about improvements in transparency, accessibility, and operational efficiency, supporting broader economic growth and development.

Ethiopian Investment Holdings Expands Its Portfolio with Eight Key Additions

Ethiopian Investment Holdings Expands Its Portfolio with Eight Key Additions Addis Ababa, Ethiopia – December 4, 2024 – Ethiopian Investment Holdings (EIH), the strategic investment arm of the Ethiopian government, has announced a major portfolio expansion with the addition of eight state-owned enterprises (SOEs). This move underscores EIH’s commitment to enhancing economic productivity and positioning itself as a pivotal driver of growth across key sectors of Ethiopia’s economy. The companies, previously managed under the Public Enterprises Holding and Administration portfolio, will now operate under EIH’s management. These include prominent entities such as the Ethiopian Postal Service, Ethiopian Industrial Inputs Development Enterprise, Ethiopian Railway Corporation, and the Development Bank of Ethiopia. Also joining the portfolio are the Industry Parks Development Corporation, Ethiopian Electric Power Corporation, and subsidiaries of Ethio Pharma Group, including the National Veterinary Institute and ShieldVax. The transition, governed by Regulation No. 487/2022, Article 8, is part of EIH’s broader strategy to streamline the management of Ethiopia’s state-owned enterprises through active ownership and professional oversight. This shift aims to unlock their full potential, ensuring they contribute more effectively to the country’s industrialization and economic diversification efforts. Dr. Brook Taye, CEO of Ethiopian Investment Holdings, expressed optimism about this milestone, stating, “These exceptional enterprises are integral to Ethiopia’s industrial and growth ambitions. At EIH, we are committed to creating wealth to finance development and enhance the quality of life for future generations. Through focused, professional management and active ownership, we will drive these organizations to new heights of performance and innovation.” EIH’s vision includes transforming these SOEs into globally competitive entities capable of attracting local and international investment. This aligns with Ethiopia’s national priorities of driving economic development, creating jobs, and building a sustainable future. Established under the Council of Ministers Regulation No. 487/2022, EIH is focused on fostering economic growth by managing state assets more efficiently and unlocking value from unutilized resources. With its expanding portfolio, EIH is cementing its role as a catalyst for innovation, sustainable development, and economic transformation in Ethiopia. This strategic move not only strengthens EIH’s position as a leading investment arm but also underscores the Ethiopian government’s dedication to modernizing its economy and enhancing competitiveness in the global arena. For further details, EIH encourages stakeholders and investors to contact its headquarters in Addis Ababa.

Government’s Bold Tax Reform: Can Ethiopia Meet Its Revenue Targets Amid Challenges?

Government’s Bold Tax Reform: Can Ethiopia Meet Its Revenue Targets Amid Challenges? Ethiopia is navigating a moment of profound change, driven by the urgent need to address challenges that have slowed growth for years. One of the boldest steps in this journey is a sweeping economic reform aimed at revitalizing the country’s financial system. These efforts, launched after the political shift in 2018, are intended to bring stability and lay the groundwork for a more prosperous future. A defining moment came on July 29, 2024, when Ethiopia made the daring choice to float its currency, the birr, letting the market determine its value. It was a necessary step to align with global financial norms, but it wasn’t without pain. Within a day, the birr’s value against the U.S. dollar plummeted by 30%, dropping from 57.48 to 74.73 per dollar. For many Ethiopians, this abrupt shift felt like stepping into unknown territory, uncertain and daunting, but it also reflected the country’s determination to chart a new economic course. The impact was immediate. As an import-dependent nation, Ethiopia saw the cost of living surge almost overnight. Prices for imported essentials like food, fuel, and medicine skyrocketed, straining household budgets and putting businesses under pressure. Families struggled to stretch their incomes, and the reality of economic reform hit home in a very personal way. In response, the government took action. On July 8, the Ethiopian House of Peoples’ Representatives approved a historic budget of 971.2 billion birr for the 2024/2025 fiscal year. But as the effects of the reform rippled through the economy, the Ministry of Finance had to ask for an additional 582 billion birr ,pushing the budget to 1.5 trillion birr. This extra funding is aimed at stabilizing the economy and offering much-needed support to low-paid government workers and vulnerable families relying on social safety nets. To meet the demands of this record-breaking budget, the government is preparing to broaden its tax base. The approved budget includes ambitious revenue targets, with 281 billion birr expected to come from taxes. The country seeks to collect 1.5 trillion birr ($12.5 billion) in the fiscal year to July 7. That compares to 613 billion birr the finance ministry set in its 2024-25 budget presented in June. However, for many Ethiopians, this will likely mean changes in tax policy and enforcement, another layer of adjustment in a period already marked by significant economic transformation. With ambition to expand its tax base and enhance revenue collection, Ethiopia’s Proclamation No. 1341/2024, approved in July 2024 after 20 years, introduces a clearer and more equitable VAT framework. The law applies VAT to goods and services while exempting capital goods used in production to encourage investment in machinery and equipment. Additionally, it includes provisions for tax fairness and digital integration, aiming to boost economic growth and support the private sector. Ethiopia has faced persistent macroeconomic challenges and a budget deficit, primarily funded through loans and subsidies. “The budget falls short of the country’s needs, as indicated by key macroeconomic indicators,” said Natae Eba, Seasoned Tax Lawyer. To address these issues, the government has introduced tax reforms, including a three percent social welfare levy on imports, with some exceptions. Previously exempt services such as electricity, water, transportation, and e-commerce are now taxed. This move, pressured by lending countries, aims to increase tax revenue to meet societal demands. However, he acknowledged there are limitations, expressing concern that the creation of new businesses and registration of new TIN numbers must be prioritized to avoid overburdening already strained businesses. He also noted that higher tax rates on even small services are discouraging businesses, including foreign direct investment (FDI), and affecting business predictability. “As costs rise, uncertainty grows, potentially deterring investors, particularly from China, who had once seen Ethiopia as a promising destination,” he added. “‘Don’t kill the goose that lays the golden eggs’ is a fundamental tax principle which warns against overburdening or overtaxing sources of wealth or income, as doing so can stifle growth and long-term productivity,” said Natae. He cautioned that investors are now regretting their decisions. He added, “This was one way of diplomacy to attract foreigners, but it is the business environment, not just appealing corridor development, that will draw them in.” While tax enforcement has improved, businesses that were once overlooked due to weak enforcement are now required to comply with the law. However, Natae pointed out that challenges persist in the tax collection system. He emphasized that a one-size-fits-all approach to audits doesn’t work, as businesses in sectors like manufacturing and retail operate differently. Tax authorities need to recognize these differences and avoid imposing their own limitations on businesses. Additionally, customs regulations should allow importers to declare goods at market prices, without applying international pricing standards, which has led to unnecessary disputes. An anonymous economist expressed concerns that the government’s tax ambitions might be difficult to achieve, particularly given the ongoing demolition of small and micro-sized businesses due to development. These businesses, which could significantly contribute to government revenue, are being displaced, which could undermine the tax collection goals. The economist expressed concern about the transition of informal businesses to the formal sector, stressing that, given their large number, the shift should not be rushed. The recommendation is to create a supportive and encouraging business environment to facilitate the process. The government’s tax revenue is on the rise, with ETB 312 billion collected this quarter, a figure that once represented an entire year’s target. However, experts argue that true revenue growth will depend on the creation of new businesses and the registration of new TIN numbers. They stress that when setting revenue targets, it’s crucial to consider the potential number of transactions and provide clear projections for revenue growth. This approach will help prevent overburdening existing businesses.

BIT Mining to Acquire 51-Megawatt Ethiopian Crypto Mining Centers for $14.28 Million

BIT Mining to Acquire 51-Megawatt Ethiopian Crypto Mining Centers for $14.28 Million BIT Mining Limited (NYSE: BTCM), a leading technology-driven cryptocurrency mining company, has announced a landmark acquisition aimed at expanding its operations into Ethiopia, one of the world’s emerging Bitcoin mining hubs. The company will acquire 51-megawatt crypto mining data centers and 17,869 high-performance Bitcoin mining machines in Ethiopia for a total of US$14.28 million, marking a significant step in its global development strategy. The deal will be executed in two phases, with BIT Mining acquiring a 35-megawatt operational data center and all mining machines in the first phase, expected to close in the coming days. The second phase, which will involve the transfer of additional data centers upon completion of construction, is expected to follow shortly thereafter. This acquisition not only strengthens BIT Mining’s operational capabilities but also positions the company to take advantage of Ethiopia’s rapidly growing Bitcoin mining market. Ethiopia: A Fast-Growing Bitcoin Mining Hub Ethiopia has quickly emerged as a significant player in the global Bitcoin mining scene, driven by its abundant and affordable energy resources, especially hydropower. Over the past ten months, the country has generated an impressive $55 million in revenue from Bitcoin mining, drawing attention from international mining companies, particularly those relocating from China. With its competitive energy prices and a commitment from Ethiopian Electric Power (EEP) to provide 600 megawatts of electricity for mining operations, Ethiopia now commands 2.25% of the global Bitcoin mining market. One of the country’s key advantages is its renewable energy resources, with more than 92% of Ethiopia’s electricity generated from hydroelectric power. This includes energy from the Grand Ethiopian Renaissance Dam (GERD), a $6 billion project that harnesses the Nile River’s power, producing six gigawatts of electricity. According to Kal Kassa, Founder and Educator at Bitcoin Birr in Addis Ababa and Advisor at West Data Group, Ethiopia’s electricity costs are a major draw for Bitcoin miners. “At just 3.2 cents per kilowatt-hour, our electricity is much cheaper than many other parts of the world,” Kal explained in a recent interview with BBC News Africa. A Growing Market for Digital Infrastructure Investment Ethiopia’s rise as a global mining hub is further supported by significant investments in digital infrastructure. In February 2024, Ethiopian Investment Holdings announced a preliminary agreement with Hong Kong’s West Data Group to invest $250 million in boosting the nation’s digital capabilities. This agreement is expected to play a critical role in enhancing Ethiopia’s mining infrastructure and solidifying its position as a key player in the Bitcoin mining industry. Despite some regulatory caution—Ethiopia has imposed a ban on cryptocurrency trading—the government has actively worked to develop a regulatory framework for crypto mining, which has led to a surge in foreign investment and mining operations. Over the past two years, the country has seen a significant increase in the number of crypto-mining companies setting up shop in Ethiopia, a trend that shows no signs of slowing down. Impact on the Ethiopian Economy The influx of Bitcoin miners has had a noticeable positive impact on Ethiopia’s economy. Kal Kassa shared that there are currently 20 registered mining companies operating in the country, with 11 of them active and generating significant revenue. Approximately 80% of these companies are from China, with the remainder hailing from Russia and the United States. This growing presence is expected to result in even more substantial revenue for the Ethiopian Electric Power (EEP), with earnings from Bitcoin mining projected to rise from $55 million this year to $123 million in 2025. These revenues not only benefit the state-owned utility but also contribute to the further development of Ethiopia’s power grid, helping to expand electricity access to the approximately 50% of the population currently lacking reliable power. Kal emphasized the potential of Bitcoin mining to fund much-needed infrastructure improvements, providing a clear example of how the cryptocurrency industry can help drive broader economic development. BIT Mining’s Strategic Acquisition For BIT Mining, this acquisition marks a pivotal moment in its strategic global expansion. Xianfeng Yang, CEO of BIT Mining, commented, “This transaction represents a significant milestone in advancing our global development strategy. With our expanded market presence and robust operational capabilities, we are well-equipped to further solidify our competitive edge and enhance our profitability and financial standing, paving the way for long-term, sustainable growth.” By acquiring data centers and mining machines in Ethiopia, BIT Mining will be able to tap into the country’s affordable electricity, renewable energy sources, and growing infrastructure to scale up its operations. This acquisition aligns with BIT Mining’s vision of focusing on self-operated mining and data center operations, positioning the company to capitalize on the rapidly increasing demand for cryptocurrency mining resources worldwide. Ethiopia’s Bright Future in Bitcoin Mining Ethiopia’s position as a competitive player in the Bitcoin mining market is only expected to grow. The combination of low electricity costs, abundant renewable energy, and a strategic location has made the country an attractive destination for international mining companies. BIT Mining’s acquisition of data centers and mining machines in Ethiopia is not only a testament to the country’s appeal but also underscores the potential for Ethiopia to continue playing a central role in the global Bitcoin mining industry. As the country’s mining sector expands, it will continue to provide opportunities for economic growth, infrastructure development, and technological advancement. For BIT Mining, this acquisition represents a crucial step in securing its place at the forefront of the global cryptocurrency mining race, particularly as the market evolves and energy costs in other regions continue to rise.

Ethiopia, Djibouti, and Sudan Forge Groundbreaking Telecom Partnership to Boost Africa’s Digital Future

Ethiopia, Djibouti, and Sudan Forge Groundbreaking Telecom Partnership to Boost Africa’s Digital Future In a significant step toward advancing Africa’s digital transformation, telecom giants Ethio Telecom, Djibouti Telecom, and Sudatel have announced a strategic partnership aimed at revolutionizing the region’s digital infrastructure. The partnership, dubbed the “Horizon Fiber Initiative,” was officially unveiled on November 24, 2017, and promises to bridge Africa’s connectivity gaps while establishing a cutting-edge fiber optic network that connects the continent with the rest of the world. The agreement between the three countries’ telecom groups sets the stage for a high-capacity underground fiber optic infrastructure that will reshape the region’s digital landscape. This collaboration marks a pivotal moment in the ongoing digital evolution across Africa, where high-speed internet access has long been a challenge due to outdated and insufficient infrastructure. The Horizon Fiber Initiative is a visionary project designed to deploy a multi-terabit fiber optic line, providing reliable and alternative connectivity through the combined expertise and resources of Ethio Telecom, Djibouti Telecom, and Sudatel. The initiative will leverage their shared infrastructure and knowledge to deliver high-speed internet connectivity, improving access to digital services, boosting economic growth, and enhancing communication across East Africa and beyond. The project also aims to alleviate the persistent issue of internet delays, commonly known as latency, by creating a more robust and reliable network that can handle the growing demand for high-speed data transfer. This will be a game-changer for businesses and individuals across the region who rely on fast and uninterrupted internet access for critical services such as e-commerce, cloud computing, online education, and remote working. With the new fiber optic infrastructure, international institutions, and individual users will benefit from more reliable connectivity options, providing access to a wider array of digital services. The initiative promises to reduce the digital divide, enabling the region to better compete in the global economy and positioning East Africa as a digital hub for the future. As the Horizon Fiber Initiative progresses, it is expected to serve as a catalyst for further innovation and investment in Africa’s telecom sector, offering a roadmap for other nations to follow in the pursuit of a more connected and digitally empowered continent. In an era where connectivity is more important than ever, this landmark partnership signals the beginning of a new chapter in Africa’s digital journey—one that promises to bring the region closer to the rest of the world while unlocking new opportunities for growth and development.