Ethiopia to Open Fuel Import Market to Private CompaQnies, Minister Kasahun Announces

Ethiopia to Open Fuel Import Market to Private CompaQnies, Minister Kasahun Announces In a groundbreaking move, Ethiopia’s Minister of Trade and Regional Relations, Dr. Kasahun Goffe, revealed that the government plans to open the fuel importation sector to private companies, ending the state monopoly that has existed for years. This decision is part of the government’s broader initiative to liberalize various business sectors and encourage market competition. Dr. Kasahun made the announcement on Monday, November 16, 2017, during a detailed discussion on a bill concerning the petroleum products marketing system. The session was chaired by the Standing Committee on Trade and Tourism Affairs of the House of Representatives. According to the Minister, the government intends to allow private sector participation in the importation and distribution of fuel by next year. This is in line with the broader economic reforms aimed at creating a more competitive business environment. The draft bill, which had been submitted to the House of Representatives, includes several amendments, one of which allows other companies to enter the market, breaking the long-standing monopoly held by the Ethiopian Oil Supply Company. Dr. Kasahun emphasized that the proposed changes will enable private companies to import oil products just like any other commodity, with the goal of operating the sector based on market principles. He noted that the government’s reform efforts in the oil sector aim to reduce the country’s dependency on expensive oil imports, which has been draining the nation’s foreign exchange reserves. “A country that spends its entire export earnings on importing oil cannot grow. This has been slowing down our development,” Dr. Kasahun stated. “The bill was designed to fundamentally change this situation.” The Minister further clarified that if the government successfully adjusts oil product prices to market levels by the end of this year, private companies may begin importing and selling fuel by next year. The reform, if successful, will shift the role of the Ethiopian Oil Supply Company, whose focus will be narrowed to supplying fuel for large government projects and providing affordable fuel to lower-income segments of society. Tugset Nguse, the head of legal services at the Ethiopian Oil Supply Company, raised concerns during the discussion. He suggested that, if private companies are allowed to import fuel, they should be subject to the same responsibilities as the state-owned company. This includes building reserve fuel depots and maintaining a stock of reserve fuel, a provision he argued should be included in the draft bill. Regional officials also voiced concerns about the inequitable distribution of fuel across the country and called for the bill to address this issue. In response, Dr. Kasahun acknowledged the importance of ensuring fairness in fuel distribution and said the government would engage in further discussions with all companies regarding the fuel quota system. The bill also includes provisions aimed at curbing illegal fuel trading and smuggling. A reward system is proposed to incentivize the public to report illegal fuel activities, as part of efforts to ensure transparency and fairness in the market. The proposed amendments to the bill are expected to be reviewed and approved by the House of Representatives in the coming weeks, marking a significant step toward transforming Ethiopia’s oil sector.

Ethiopia’s Economic Reform Gains Momentum: IMF Unlocks $251 Million Boost

Ethiopia’s Economic Reform Gains Momentum: IMF Unlocks $251 Million Boost The International Monetary Fund (IMF) has reached a significant milestone with Ethiopia, concluding a staff-level agreement on the second review of the four-year Extended Credit Facility (ECF) arrangement. This agreement underscores the progress Ethiopia is making in its homegrown economic reform program, signaling hope for continued growth and stability. A Strategic Partnership for Economic Reform In July 2024, the IMF approved a $3.4 billion ECF arrangement to support Ethiopia’s ambitious economic reform program. Now, with the second review nearing formal approval, Ethiopia is set to access an additional $251 million. These funds are expected to bolster ongoing efforts to stabilize the economy and create a conducive environment for sustainable growth. IMF staff, led by Mr. Álvaro Piris, conducted extensive discussions with Ethiopian officials, including Finance Minister Ahmed Shide and National Bank Governor Mamo Mihretu, during a mission from November 12 to 26, 2024. The delegation also engaged with key stakeholders from the banking and business sectors to assess the progress and priorities of Ethiopia’s economic program. Key Achievements and Progress One of the standout successes of Ethiopia’s reform program is the transition to a market-determined exchange rate. This policy shift has played a pivotal role in easing foreign exchange shortages, a persistent challenge for the Ethiopian economy. The narrowing of spreads between official and parallel exchange rates—now below 10%—highlights the positive impact of these reforms. Other achievements include: Eased FX Surrender Requirements: Businesses are now experiencing more flexibility, leading to improved currency liquidity. Nascent Interbank FX Market: Increased activity in this market is promoting transparency and efficiency in currency exchange. Launch of a Domestic Interbank Money Market: A critical step in modernizing Ethiopia’s financial infrastructure. Promising Economic Outlook With macroeconomic stability supported by prudent policy measures, Ethiopia is poised for growth. The recently approved supplementary budget by the Council of Ministers aims to address tight liquidity conditions while maintaining fiscal discipline. Additionally, Ethiopia is transitioning to interest rate-based monetary policy, ensuring inflation remains under control. The IMF emphasized that tight monetary and financial conditions are crucial during this transition to secure long-term economic stability. Gratitude and Collaboration Mr. Piris expressed the IMF’s gratitude for the Ethiopian authorities’ dedication and proactive measures in implementing the economic program. He also commended the constructive dialogue with Ethiopian officials and stakeholders, which has been instrumental in advancing the reform agenda. The next steps involve the approval of the agreement by the IMF management and Executive Board in the coming weeks. Future reviews of the ECF arrangement will occur every six months, ensuring that Ethiopia’s progress remains on track. As Ethiopia continues its journey of economic transformation, the collaboration with the IMF serves as a testament to the country’s commitment to reform and resilience. With improved foreign exchange conditions, controlled inflation, and a clear focus on sustainable growth, Ethiopia is setting a strong foundation for a more prosperous future.

Ethiopian Airlines Added 3 New Weekly Flights to Rome

Ethiopian Airlines Added 3 New Weekly Flights to Rome Ethiopian Airlines recently launched three new weekly flights between Addis Ababa and Rome, starting on November 22, 2017. The announcement was made through the airline’s social media platforms, where it emphasized its intention to provide passengers with more flexible and convenient travel options. The new service operated daily for three days a week, complementing the airline’s existing schedule between the two cities. This expansion was part of Ethiopian Airlines’ ongoing efforts to address increasing passenger demand and enhance its international connectivity. Enhanced Travel Options With the addition of these flights, passengers gained more choices for their travel between Ethiopia and Italy. The enhanced schedule offered greater convenience for travelers, whether they were flying for business, leisure, or making onward connections. The move reinforced Ethiopian Airlines’ role as a leading carrier connecting Africa to the rest of the world. Strengthened Connectivity Rome, a significant destination for both tourism and business, became more accessible with the increased flight frequency. The additional flights facilitated stronger ties between Africa and Europe, benefiting travelers and promoting tourism and trade between the two regions. Part of a Broader Expansion Strategy Ethiopian Airlines has consistently worked to expand its network by introducing new routes and increasing flight frequencies. The launch of additional flights to Rome was a key step in the airline’s strategy to offer competitive travel options and meet the evolving needs of its growing customer base. Continued Service The airline encouraged passengers to check its official website or contact its customer service for up-to-date flight schedules and booking options. Ethiopian Airlines’ expanded service to Rome is part of its larger effort to provide seamless travel experiences and strengthen its position as a leading global airline. This development added more flexibility for passengers and contributed to the airline’s reputation for connecting destinations worldwide.

In Memory of Captain Mohamed Ahmed: The Leader Who Took Ethiopian Airlines to New Heights

In Memory of Captain Mohamed Ahmed: The Leader Who Took Ethiopian Airlines to New Heights The Ethiopian aviation industry has lost one of its most iconic pioneers with the passing of Captain Mohamed Ahmed (1932–2024). As a former CEO of Ethiopian Airlines, Captain Mohamed dedicated over a decade of his career to steering the airline through some of the most challenging and transformative periods in its history. His contributions not only elevated Ethiopian Airlines to new heights but also left an indelible mark on the global aviation industry. A Life of Dedication and Excellence Born in Harar, Ethiopia, in 1932, Mohamed Ahmed grew up in a family that instilled in him a deep sense of purpose and ambition. After a brief stint in the Ethiopian Air Force, he pursued higher education, earning a Bachelor of Science degree in Aeronautical Engineering from Saint Louis University. He later completed an executive program at Stanford University, equipping him with the technical expertise and leadership acumen to excel in the field of aviation. The Rise of a Leader Captain Mohamed’s journey with Ethiopian Airlines began in the 1960s as the chief aeronautical engineer. His technical knowledge and visionary thinking played a foundational role in shaping the airline’s early development. By 1980, he ascended to the role of CEO, a position he held during one of the most tumultuous eras in Ethiopia’s history. At the time, the airline faced operational challenges exacerbated by the Ethiopian Civil War and political interference from the Derg regime. Captain Mohamed’s leadership was nothing short of transformative. His steadfast commitment to preserving the airline’s independence from political influence ensured its survival and growth. Amid Cold War pressures, he boldly resisted government proposals to replace American aircraft with Soviet models, a move that would have compromised the airline’s global competitiveness. Under his leadership, Ethiopian Airlines entered a period of stability and prosperity by the late 1980s. His decisive actions, including workforce optimizations and strategic partnerships, restored the airline’s reputation for excellence and innovation. Global Recognition and Legacy Captain Mohamed’s achievements extended beyond Ethiopian Airlines. In 1992, he became the Secretary General of the African Airlines Association, where he championed the interests of African aviation on the global stage. American writer Paul B. Henze, who met Captain Mohamed in 1990, described him as one of the top entrepreneurs in the developing world, a leader deeply committed to his homeland and its progress. A Farewell to a Trailblazer Today, the aviation community and the nation mourn the loss of a leader whose vision and determination helped build a cornerstone of Ethiopia’s modern identity. Captain Mohamed Ahmed was laid to rest at the Kolfe Muslim Cemetery in Addis Ababa. His funeral was attended by Ethiopian Airlines Group CEO Mesfin Tasew, senior management, employees, former colleagues, family, and friends—a testament to the profound impact he had on so many lives. A Lasting Inspiration Captain Mohamed Ahmed’s life was a testament to resilience, innovation, and an unwavering commitment to excellence. His legacy will continue to inspire not only those within Ethiopian Airlines but also generations of Africans striving to make their mark on the global stage. Ethiopian Airlines stands today as a beacon of African aviation, a living tribute to his leadership and vision. Captain Mohamed Ahmed’s contributions remind us that great leaders not only guide institutions through challenges but also leave behind legacies that endure. His work has etched his name into the annals of Ethiopian history and the hearts of all who had the privilege of knowing him. May he rest in peace.

House of People’s Representatives Approves 582 Billion Birr as Additional Federal Government Budget

House of People’s Representatives Approves 582 Billion Birr as Additional Federal Government Budget The House of People’s Representatives of the Federal Democratic Republic of Ethiopia has approved an additional 582 billion birr federal government budget for the 2017 fiscal year. This decision was made during the House’s 6th regular session in its 4th year of office. The additional budget is earmarked for several critical purposes, including the repayment of foreign and domestic debt, subsidies for essential social needs such as fertilizers, medicines, and edible oil, expansion of capital projects, social safety net programs, and government employee salary reforms. In presenting the budget, its proponents emphasized its necessity for the 2017 fiscal year. Dr. Tesfaye explained that the increased budget was prompted by the rise in both domestic and foreign expenditures resulting from Ethiopia’s recent macroeconomic reforms. Out of the total 582 billion birr supplementary budget, 393 billion birr is allocated for regular expenditures, 70 billion birr for capital projects, and 119 billion birr for expenditure adjustments. During the session, members of the council raised several concerns and questions regarding the additional budget. Key issues included whether the supplementary budget was excessive, whether it could trigger inflation, and whether the collection of 282 billion birr in taxes to finance part of the budget might place undue pressure on taxpayers. Responding to these concerns, Minister of Finance Ahmed Shide explained that the additional budget was proportionate to Ethiopia’s status as a developing country with a population of 120 million. He further stated that as the country’s economic growth accelerates, future fiscal years may require even larger budgets. The Minister assured the parliament that the additional budget would be financed through a mix of domestic and foreign revenue sources and that it was intended to support low-income government employees and safety net beneficiaries. He emphasized that the budget was structured to avoid fueling inflation. Following extensive deliberation, the council approved the supplementary budget bill for the 2017 fiscal year as Proclamation No. 1355/2017. The decision passed with three objections and five abstentions.

Commercial Bank of Ethiopia to Adjust Loan Interest Rates and Service Fees

Commercial Bank of Ethiopia to Adjust Loan Interest Rates and Service Fees Addis Ababa, Ethiopia – The Commercial Bank of Ethiopia (CBE) has announced its intention to implement adjustments to loan interest rates and service fees. The changes will apply to various services, including loan products, branch and digital banking, and international banking services. The bank has stated that the adjustments are aimed at aligning with current market dynamics and ensuring the sustainability of its operations. CBE has reassured customers that notifications will be provided ahead of the implementation to allow sufficient time for preparation. CBE, one of the largest financial institutions in Ethiopia, emphasized its commitment to maintaining transparency and providing continued access to reliable financial services. For further details or inquiries, customers are encouraged to contact their nearest CBE branch or visit the bank’s official communication channels.

Awash Bank Announces Pre-Tax Profit of Nearly 11 Billion Birr

Awash Bank Announces Pre-Tax Profit of Nearly 11 Billion Birr Awash Bank, Ethiopia’s first private bank, held its 29th Annual General Meeting (AGM) today and announced plans to celebrate its 30th anniversary in January. Presenting the 2023/24 fiscal year report at the meeting, the bank’s board chairman, Ato Gure Kumsa, told Bisrat Radio and Television that the bank’s total income for the fiscal year reached 36.58 billion birr, an increase of 7.77 billion birr, or 27 percent, compared to the previous fiscal year. He stated that the bank’s total loans reached 183.5 billion birr, with 21.6 billion birr disbursed during the fiscal year. The bank’s profit before tax stood at 10.8 billion birr, an increase of 1.06 billion birr, or 11 percent, from the previous fiscal year. Ato Gure also highlighted that Awash Bank opened 74 new branches during the fiscal year, bringing its total branch network to 947, and attracted more than 2 million new customers. The bank’s deposits, including LC margins, reached 232 billion birr, reflecting an increase of 45.1 billion birr, or 24 percent, compared to the same period last year. The bank collected 1.5 billion US dollars from exports and provided 37.6 billion birr in new loans, he added. It was further announced that the bank’s total assets increased by 60.3 billion birr. Additionally, the bank reaffirmed its commitment to fulfilling its social responsibilities by supporting drought-affected and displaced citizens and contributing to development initiatives requested by the government.

ADvTECH Expands into Ethiopia with $7.5 Million Acquisition of Flipper International School

ADvTECH Expands into Ethiopia with $7.5 Million Acquisition of Flipper International School In a significant move to expand its presence across Africa, JSE-listed private education provider ADvTECH Group has announced the acquisition of Flipper International School, a well-established Ethiopian school group based in Addis Ababa. The $7.5 million deal brings five campuses and approximately 3,000 students into ADvTECH’s growing portfolio of private education institutions. ADvTECH CEO Geoff Whyte highlighted the strategic importance of the acquisition, stating, “We are delighted to welcome Flipper International School to the ADvTECH Group as we expand our presence across Africa and further cement our status as the leaders in teaching and learning on the continent.” The funding for this acquisition was raised internally, reflecting ADvTECH’s strong financial position. Ethiopia’s Growing Demand for Private Education Founded in 1998 by Ethiopian educators Menna Selamu Bekele and Serkaddis Seifu Yeteshawork, Flipper International School has been a prominent name in Addis Ababa’s education sector. Known for its academic excellence, the school operates five campuses in the Beklobet and Summit areas of the city. With rapid urbanization straining public education resources in Ethiopia’s capital, the demand for quality private schooling has surged. ADvTECH’s entry into the Ethiopian market comes at a time when private institutions are increasingly seen as critical players in bridging educational gaps. “As a business, ADvTECH is in a unique position to make a truly meaningful difference to people’s lives and futures. Flipper International School has always been a beacon of academic excellence in the region,” said Whyte. “We look forward, therefore, to applying our resources and expertise to this school and taking it to even greater heights in the years to come.” Reflections from Flipper’s Co-founder Menna Selamu Bekele, who co-founded Flipper International School, reflected on the institution’s journey and its transition to ADvTECH. “The creation of Flipper International School was driven by a vision to provide quality education that could adapt to the ever-changing global landscape while staying true to our local ethos,” she stated. Since its founding, the school has grown into a renowned institution, contributing to both educational development and the local economy by creating job opportunities. Bekele expressed confidence in the future under ADvTECH’s stewardship, saying, “The transition of ownership to ADvTECH is a strategic move to ensure that Flipper International School not only sustains its legacy but also enhances its offerings. This new chapter is not just a continuation of our legacy but an expansion into new realms of possibility.” Leadership Strengthening at ADvTECH In related news, ADvTECH has announced the appointment of Hannes Boonzaaier as the designated group chief financial officer and executive director, effective February 1, 2025. This leadership transition is expected to support the group’s continued growth as it pursues further opportunities across the continent.

Commercial Bank of Ethiopia Moves to Establish an Investment Bank

Commercial Bank of Ethiopia Moves to Establish an Investment Bank The Commercial Bank of Ethiopia (CBE) is in the process of establishing an investment bank, a move aligned with recent regulatory changes aimed at fostering growth in Ethiopia’s financial sector. This initiative is being coordinated with the involvement of Mr. Zemedeneh Ngatu, an experienced investment consultant and managing director of Fairfax Africa Fund. Regulatory Changes Enable New Opportunities The establishment of the investment bank follows the repeal of a 2017 directive that restricted commercial banks from participating in various investment sectors. The annulment of this directive on July 23, 2024, and subsequent provisions in the Capital Market Proclamation now permit commercial banks to own full stakes in non-credit institutions such as investment banks. This regulatory shift is part of broader efforts to build a capital market infrastructure in Ethiopia. Investment Banks and Their Role in the Economy Investment banks are central to capital markets, offering advisory services to businesses, start-ups, and other organizations seeking to raise funds. They also act as intermediaries in the issuance and sale of shares, facilitate mergers and acquisitions, and provide consulting services. Their revenue comes from fees generated through these services, making them key players in financial ecosystems. CBE’s initiative to enter the investment banking sector is seen as a significant step, leveraging its position as a state-owned institution to instill confidence in the market. Coordination with Mr. Zemedeneh Ngatu The involvement of Mr. Zemedeneh Ngatu in this project reflects CBE’s strategy to tap into his expertise in investment and fund management. As the managing director of Fairfax Africa Fund, Mr. Zemedeneh brings experience in advising and managing investment projects. His role in guiding the establishment of this investment bank underscores the significance of creating a strong foundation for Ethiopia’s capital markets. Fairfax Africa Fund is a consulting firm specializing in fund management, pooling resources from various parties to invest in profitable ventures. However, its track record in Ethiopia has yet to be widely documented. Insights from Mr. Zemedeneh’s Career Mr. Zemedeneh has held various leadership roles in the investment and consulting sectors. Previously associated with Ernst & Young, he parted ways with the international consulting firm following disagreements. He was also involved in the initial stages of establishing Selam Bank, although the venture faced challenges in meeting its capital requirements. Implications for Ethiopia’s Financial Market CBE’s move to establish an investment bank is expected to play a pivotal role in shaping Ethiopia’s nascent capital market. By providing advisory services and facilitating access to financing, the investment bank could serve as a catalyst for economic growth. Its presence is likely to attract investors and support businesses seeking to raise capital. The Commercial Bank of Ethiopia’s initiative marks a significant development in the country’s financial sector. While the success of this venture will depend on its execution and market reception, it represents a key step toward diversifying Ethiopia’s financial landscape and building confidence in its capital markets.