Federal Government Employees to Work 48-Hour Weeks Under New Law

Federal Government Employees to Work 48-Hour Weeks Under New Law The Federal Government Employees Amendment Bill, a subject of intense debate, was approved yesterday by the House of Representatives. Members voiced varied opinions on the bill and its accompanying amendment report, focusing on its implications for federal employees, particularly regarding working hours and operational dynamics. Key Points Raised by Members of the House Criticism of Repealed Provisions:Several members criticized the amendment for repealing previous court-like proclamations that were tailored to specific organizational and operational needs based on the unique characteristics of their work. Concerns About Administrative Staff:It was noted that the bill failed to provide adequate attention to federal court administrative staff, despite prioritizing employees of the Revenue and Customs Commission. Job Advertisement Equity:Members highlighted the lack of clarity regarding fair and equal job advertisement conditions across different regions, which is crucial for ensuring an inclusive recruitment process. Internal Transfers and Dismissals:The draft faced criticism for provisions allowing institutional heads to transfer employees at will for efficiency. Members argued that this could lead to operational gaps and potential dismissal of employees unwilling to comply with such transfers. Statements from Key Council Members Dr. Desalegn Chane (NAMA Council Member): On Proclamation Preparation:“Such proclamations require thorough preparation and consultation. Workers’ concerns should be addressed comprehensively.” Concerns About Quota Distribution:Dr. Chane warned that the draft’s premise, suggesting the civil service is dominated by one group, could lead to a quota system. “Competence and ability should guide the civil service, not arbitrary quotas,” he said. Employee Rights Violations:He expressed concern over clauses allowing the Civil Service Commission to transfer employees arbitrarily, stating, “This violates employees’ rights and leaves their fate at the mercy of superiors, forcing some to resign.” Working Hours Increase:Dr. Chane strongly opposed the increase in weekly working hours from 39 to 48, calling it “inappropriate and unfair to workers.” Dr. Aweke Amzaye (Ezema Member): On Contradictory Ideas:Dr. Amzaye criticized the draft’s emphasis on “modernization” while simultaneously incorporating ethnic-based hiring practices. “Hiring based on ethnicity contradicts the idea of creating a modern, merit-based bureaucracy,” he argued. Religious Preaching in Institutions:He noted that government institutions are increasingly becoming venues for religious activities, stressing, “This should be strictly prohibited by law.” Professional Growth Hindrances:Dr. Amzaye cautioned that giving superiors unchecked authority to reassign employees stifles professional growth, undermining the civil service. Human Rights Concerns:He likened the provisions to legalizing modern slavery, stating, “The court should intervene to ensure justice.” Ato Lemma Tessema (Council Member): Systematic Changes Needed:Ato Lemma emphasized that the draft fails to classify employees based on education, experience, and qualifications, which are essential for an effective civil service. Opportunities for All Ethiopians:“The draft proclamation offers an opportunity for all Ethiopians to compete and work based on qualifications,” he noted, advocating for the inclusive intent of the amendments. Response from the Standing Committee Chairman Dr. Negeri Lencho, Chair of the Standing Committee on Human Resources Development, addressed members’ concerns, stating: Court-Specific Provisions:“The Merit and Salary Board, to be established under the draft proclamation and chaired by the Prime Minister, will address issues specific to federal courts.” No Quota System:Dr. Negeri assured that the draft explicitly rejects quotas, focusing instead on competency and management. Employee Rights Safeguarded:He highlighted procedural safeguards for employees, ensuring their rights are protected during transfers and disciplinary actions. Final Decision Despite the controversies, the Federal Government Employees Proclamation No. 1353/2017 was approved with a majority vote. Only three members opposed the bill, and four abstained. The increase in working hours from 39 to 48 has drawn significant attention and remains a critical concern for many employees and stakeholders.

PM Dr. Abiy Inaugurates Ethno Mining Gold Factory

PM Dr. Abiy Inaugurates Ethno Mining Gold Factory Prime Minister Abiy Ahmed (Dr.) today inaugurated the Ethno Mining Gold Factory, constructed in the Gambella Regional State. In a post on his social media page, the Prime Minister highlighted that Ethno Mining serves as the parent company of Akobo Minerals. He further noted that the company is collaborating with the Ethiopian government through the Scandinavian-based Ethiopian Investment Holdings on gold exploration and mining projects. The Prime Minister congratulated all stakeholders involved in this significant investment initiative in Akobo Woreda, Gambella Regional State. He reflected on the past three decades, during which Dima town in Akobo struggled with inefficient small-scale traditional gold mining practices. Dr. Abiy emphasized that this new investment will not only enable efficient and high-quality gold production in a short time but also address challenges associated with illegal mining activities. Additionally, he explained that this initiative showcases the commitment to harness the region’s potential resources for the benefit of its people and to promote sustainable development in the Gambella Regional State.

Importers Face Delays and Risks in Ethiopia’s New Forex Regime

Importers Face Delays and Risks in Ethiopia’s New Forex Regime Floating Exchange Rate Sparks Concerns Over Exchange Rate Risk in Ethiopia Ethiopia has recently launched a comprehensive macroeconomic reform program to tackle long-standing economic challenges and transition to a more stable and competitive economy. A central aspect of this reform is the adoption of a Floating Exchange Rate System, intended to address foreign exchange distortions. However, critics within the banking sector warn that this system is increasing foreign currency risk, commonly referred to as exchange rate risk. Foreign currency risk arises from fluctuations in exchange rates between two currencies, potentially leading to financial losses for businesses, investors, or individuals exposed to foreign currency transactions. Previously, Ethiopia operated under a tightly controlled, fixed foreign exchange regime. While this system created significant market distortions—manifested in wide gaps between official and black-market exchange rates—it also provided some degree of predictability. Businesses often faced currency shortages, delays, and challenges importing goods. The new floating exchange rate aims to mitigate these distortions by letting the market determine foreign currency values, though it introduces new risks tied to rate volatility. Banks argue that the 14% credit cap, which restricts the amount of credit they can extend, is compounding liquidity challenges. They claim this limitation prevents them from accessing sufficient cash reserves to meet the rising demand for foreign currency. According to an anonymous finance expert, importers are particularly vulnerable to currency fluctuation risks due to delays of up to three months in receiving their foreign currency allocations. During this time, the value of the currency often appreciates, increasing costs for importers. “We’re left waiting up to three months to receive our foreign currency, with our funds blocked,” said Mohammed Ababor, a medical importer. “Even a small fluctuation of one birr significantly impacts us because we import in large volumes. These delays are a real struggle.” He further suggested that the approval process for foreign currency requests, which currently takes up to 15 days, should be expedited to reduce the burden on businesses. As Ethiopia navigates these economic reforms, it is crucial to address the challenges businesses face to minimize disruptions and ensure sustainable growth. Proactively resolving these issues will strengthen both the financial sector and society as a whole, maximizing the benefits of the reforms for all stakeholders. 1 COMMENT Abiyu Deresu November 21, 2024 At 1:20 pm Traditionally one has to go to the market with some sort of produces to the market to buy something which started with bartering which was gradually replaced by paper money as an intermediary. The importers must return to this tradition and export something to generate their own foreign currency to finance their imports. We are seeing more importers lining up for foreign currency. From where are they expecting it to come ? I think the government should tie import to export meaning only an exporter should be allowed to be an importer. This will insentivise more export and check the trade deficit. Traditionally one has to go to the market with some sort of produces to the market to buy something which started with bartering which was gradually replaced by paper money as an intermediary. The importers must return to this tradition and export something to generate their own foreign currency to finance their imports. We are seeing more importers lining up for foreign currency. From where are they expecting it to come ? I think the government should tie import to export meaning only an exporter should be allowed to be an importer. This will insentivise more export and check the trade deficit. Comments are closed.

Ethio Telecom Launches Digital ID Printing Service

Ethio Telecom Launches Digital ID Printing Service Addis Ababa, November 10, 2017 (FBC) – Ethio Telecom has introduced a new service enabling the printing of National Digital IDs, making it more convenient for customers to access their identification cards. This innovative service allows customers to submit their ID print requests online through the Telebirr SuperApp or the official website https://teleprint.fayda.et/. Once the request is completed, the printed IDs can be collected at any of the 63 service centers located across Addis Ababa. How the Service Works To use the service, customers must: Log in to the Telebirr SuperApp or visit the website. Navigate to the National Digital ID card printing section. Enter their Fayda Variant Number (FAN). Input a verification code sent to them via SMS. Choose the delivery speed, date, and preferred collection center. This streamlined process aims to save time by eliminating the need for multiple visits to service centers. Customers can also track the progress of their requests online, ensuring transparency and reliability. Flexible Payment and Delivery Options Ethio Telecom has tailored the pricing structure to accommodate varying needs and urgency levels: Normal Delivery: Customers can receive their IDs within 7 working days for a fee of 345 Birr. Premium Delivery: A quicker option, with delivery in 6 working days, available for 600 Birr. Express Delivery: For urgent needs, customers can opt for delivery within a shorter time frame for 800 Birr. Customer Benefits This new service offers several advantages: Convenience: By enabling online requests and payments, customers save time and avoid long queues. Flexibility: With options to choose the speed of delivery and pickup locations, the service is adaptable to individual preferences. Security: Using the Fayda Variant Number and SMS verification ensures secure access to personal information. Ethio Telecom emphasized that this initiative aligns with its commitment to leveraging digital technology to enhance service delivery and meet the growing demands of its customers. The company also noted that this service is part of a broader effort to modernize identification systems in Ethiopia, supporting the country’s digital transformation agenda. By offering multiple options for delivery speed and locations, Ethio Telecom is ensuring accessibility for all segments of the population.

Merkato Shuts Down Amid Disputes Over Receipt-Based Trading Requirements

Merkato Shuts Down Amid Disputes Over Receipt-Based Trading Requirements Addis Ababa, Ethiopia – Merkato, the largest commercial hub in Addis Ababa, has seen a significant disruption in its trading activities as a majority of shops remain closed for over a week. Traders have shut down their businesses in protest against the mandatory implementation of a receipt-based transaction system, sparking debates between merchants and government officials. The Core of the Dispute The Addis Ababa Revenue Bureau initiated a campaign to enforce the use of official receipts for all commercial transactions as part of its efforts to improve compliance with tax regulations. However, many traders argue that the system has been implemented in an unfair and burdensome manner. A significant number of traders claim that the penalties imposed for non-compliance are excessive and beyond their financial capacity. “Approximately more than 90 percent of the shops are closed today,” one trader stated, adding that the enforcement disproportionately targets small businesses while contraband goods allegedly continue to flood the market unchecked. “It is unfair to penalize us for invoices while contraband products, often linked to government insiders, are freely distributed,” the trader lamented. Government’s Response In response to the closures, the Addis Ababa City Administration clarified that rumors of property seizures and shop closures were unfounded. Officials stated that the disruptions stem from misinterpretations of the new receipt-based trading system. The administration emphasized that the goal is to ensure transparency and compliance with legal trade practices. Despite these reassurances, traders argue that the government has failed to address their concerns adequately. Another trader, speaking anonymously, suggested that the current shutdown could extend until the end of the month if no resolution is reached. Broader Implications The market closures have had a cascading effect on businesses and consumers alike. Merkato, a vital hub for the city’s economy, has been described as “partly inactive,” leaving regular trading activities severely disrupted. Consumers have faced challenges accessing goods, while businesses dependent on the market’s supply chains are feeling the pinch. Traders argue that the government’s approach to enforcement is one-sided, focusing heavily on penalties for local merchants without addressing systemic issues like the infiltration of contraband goods. According to reports, some shop owners have even gone as far as relocating their goods to avoid penalties, reflecting deep distrust in the system. The Way Forward As tensions escalate, stakeholders are calling for open dialogue between traders and the government. Many are urging authorities to revisit the implementation of the receipt-based system, with suggestions for phased enforcement and capacity-building initiatives to help small businesses adapt. The ongoing strike and closures in Merkato highlight the complex dynamics of balancing economic regulation with grassroots realities. While the government emphasizes legal compliance, the traders’ strike underscores the need for equitable enforcement and trust-building measures. Whether this standoff will lead to meaningful policy revisions or further deepen the economic disruption in Addis Ababa remains to be seen. For now, the heart of Ethiopia’s commercial activity continues to beat faintly, with both merchants and consumers bearing the brunt of the deadlock.

Ethiopian Airlines Faces Setbacks Due to Boeing Strike but Remains Optimistic About Growth

Ethiopian Airlines Faces Setbacks Due to Boeing Strike but Remains Optimistic About Growth Addis Ababa, Ethiopia — Ethiopian Airlines CEO Mesfin Tasew has expressed concerns over the impact of Boeing’s recent seven-week machinist strike on the carrier’s growth ambitions. The production halt of the 737 MAX and 777 aircraft during the strike has delayed deliveries of key aircraft Ethiopian Airlines has on order, further complicating the airline’s fleet expansion plans. “Delivery dates of the airplanes that we have ordered from Boeing are still sleeping,” Tasew told AFP, highlighting the frustration caused by prolonged delays. Boeing Delays Force Temporary Adjustments Though the strike ended, Boeing faces challenges in resuming production, with estimates suggesting several weeks before operations fully normalize. Ethiopian Airlines had already experienced setbacks with earlier deliveries of the 737 MAX and 777F models. To mitigate the impact, the airline has resorted to leasing 737 MAX aircraft, with four set to join the fleet this month to meet immediate capacity needs. Despite these hurdles, Ethiopian has maintained its confidence in Boeing, placing significant orders during the Dubai Air Show in November 2023. These include 20 737 MAX 8s, 11 787-9 Dreamliners, and options for additional aircraft. Expanding with Airbus Amid Challenges While Boeing struggles, Airbus has proven a reliable partner for Ethiopian Airlines. The European manufacturer recently delivered the first of four A350-1000s, making Ethiopian the first African airline to operate this advanced aircraft. The remaining A350-1000s are expected to arrive by March 2025, bolstering the airline’s fleet and capacity. Resilience Amid Adversity Ethiopian Airlines has faced a challenging year with geopolitical conflicts in Israel, the Middle East, and Sudan affecting operations. Despite these difficulties and fleet growth delays, the airline remains on track to meet its end-of-year financial targets. In FY2024, Ethiopian Airlines generated over $7 billion in revenue, marking a 14% year-on-year increase. The carrier also expanded its network, operating over 20 domestic routes and 140 international destinations, maintaining its position as Africa’s only profitable airline. Boeing Partnership Persists Despite Past Turmoil The relationship between Ethiopian Airlines and Boeing has weathered turbulence, including the tragic Flight 302 crash in 2019. While Tasew acknowledges the crash as a “serious scar” in the airline’s history, he reaffirmed trust in Boeing, praising the company as “a great aerospace company.” Since resuming 737 MAX flights in February 2022, Ethiopian has built a fleet of 17 737 MAX 8s and continues to expand its orderbook with Boeing.

Residents Ordered to Leave Bishoftu Amid Land Leases to Emirati Investors

Residents Ordered to Leave Bishoftu Amid Land Leases to Emirati Investors In an effort to position the city as an “East African tourism center,” reports have emerged that significant portions of land in Bishoftu are being leased to investors from the United Arab Emirates. Residents say they have been instructed to vacate their properties within a week. “We have heard that up to 80 percent of the city’s land will be given to Emirati investors. Even small house renovations are now prohibited by the city administration, with officials telling us, ‘You won’t stay here for long,'” residents stated. Gebre Dabi, an official from Bishoftu’s city municipality, acknowledged the rising concerns, saying, “As a member of the city’s investment board, I have no information about such large-scale investment deals.” He suggested that the ban on house renovations might be linked to efforts to standardize housing infrastructure in the city. Despite this, many residents remain anxious about their future. Long-term residents, some of whom have lived in Bishoftu for over 15 years, revealed that they were informed the land had been leased to Dubai investors, and they were told to leave within a week. In response to the evictions, compensation payments to affected farmers have reportedly begun. Government officials have held public meetings, promising 105 square meters of land to residents who can provide aerial maps of their properties. Markings have also been made on properties, with farmers’ houses painted green and other residences painted red, indicating those slated for removal. However, neither the Oromia regional government nor the federal government has officially disclosed the scale of the land leases or the terms agreed upon with the Emirati investors, leaving residents with unanswered questions and growing uncertainty about their future.

Abyssinia Bank Reports Over 5 Billion Birr Gross Profit for 2023/24 Fiscal Year

Abyssinia Bank Reports Over 5 Billion Birr Gross Profit for 2023/24 Fiscal Year Abyssinia Bank has reported a gross profit of 5.28 billion birr for the 2023/24 fiscal year, representing a growth of 0.92% compared to the previous year. The announcement was made during the bank’s 28th Annual General Meeting of Shareholders, where key financial highlights were presented. Key Financial Performance: Deposits: Total deposits increased to 192.51 billion birr, a growth of 33.97 billion birr from the prior fiscal year. The bank’s deposit market share was reported to exceed 66%, according to its financial report. Loans and Prepayments: The bank’s loan and prepayment portfolio reached 167.7 billion birr, an increase of 21.2 billion birr compared to the previous year. Total Assets: The total assets of the bank grew to more than 222 billion birr, reflecting its expanding financial base. Capital Base: Abyssinia Bank’s total capital was reported at 23.19 billion birr for the fiscal year. The meeting provided an overview of the bank’s operational and financial achievements over the year, highlighting its performance in a competitive banking sector. The bank’s leadership noted the growth in deposits, loans, and total assets as indicators of its continued stability and development. The financial report underscores Abyssinia Bank’s position as one of Ethiopia’s prominent banking institutions, with a focus on consolidating its market presence and capitalizing on opportunities for growth.

Ethiopian Capital Market Authority’s First Investment Directive Approved at the 2024 Capital Markets Summit

Ethiopian Capital Market Authority’s First Investment Directive Approved at the 2024 Capital Markets Summit The Ministry of Justice has recently approved groundbreaking guidelines from the Ethiopian Capital Markets Authority (ECMA) focused on public offerings and trading of documented investments. Announced at the 2024 Capital Markets Summit in Addis Ababa, this directive represents the first formal document guiding investment provisions in Ethiopia, setting the stage for a structured, secure, and transparent investment landscape. Hana Tehlku, Director General of the Ethiopian Capital Market, shared that this directive is foundational in creating a well-regulated capital market system. The guidelines establish a series of measures designed to promote transparency, standardize processes, and protect investor interests, all while aligning with Ethiopia’s broader economic goals. Key Provisions and Structure of the Directive Registration and Eligibility Requirements for Document HoldersOne of the directive’s core elements is the registration process for document holders, who are individuals or entities issuing investment securities. To be eligible, document holders must undergo rigorous verification to confirm legal standing, financial health, and compliance with Ethiopian commercial law. This process is intended to build a dependable market infrastructure by ensuring that all players are verified and accountable. By standardizing these eligibility requirements, the ECMA aims to create an environment where only credible and financially sound entities participate in the capital market. Transparency and Investor NotificationIn an effort to enhance transparency, the directive introduces mandatory disclosure standards. Companies offering investments are required to provide annual audited financial statements and are expected to maintain regular communication with investors through customer interest disclosures. This includes detailed statements regarding investors’ rights, risks associated with their investments, and any material changes that could impact their interests. The disclosure requirements ensure that investors receive timely, accurate information, helping them make informed decisions and fostering a culture of accountability. Preemptive Rights for Existing ShareholdersThe directive includes protections for existing shareholders through a clause on preemptive rights. Under this provision, existing shareholders are given priority in purchasing additional shares, particularly when a company issues new stock. This priority helps to prevent dilution of their ownership stake and guards their investment against changes that might reduce its value. The preemptive rights provision is intended to build trust among shareholders, offering reassurance that their initial investments will be respected and protected even as new capital is introduced. Capital Adequacy and Risk Assessment StandardsEnsuring financial soundness is a critical focus of the directive. Companies issuing investment documents must meet rigorous capital adequacy standards, demonstrating that they have the necessary financial backing and risk management processes to honor their obligations. For example, companies that issue loan securities must establish a clear repayment schedule and provide detailed financial forecasts. Risk assessments are also required, with companies needing to disclose any potential risks associated with their offerings. This requirement is designed to prevent defaults and protect investors, particularly those new to the Ethiopian capital market. Independent Oversight and Compliance EnforcementThe directive establishes an independent oversight framework to enforce compliance and maintain market integrity. External auditors approved by the ECMA must review the financials of companies participating in the market, ensuring they meet the required standards. To maintain market discipline, the ECMA has the authority to impose penalties on companies that fail to comply with these transparency requirements, including suspensions or cancellations of trading rights. This independent oversight is a critical step in building a stable and trustworthy investment environment, where both local and foreign investors can participate confidently. Disclosure Obligations and Continuous ReportingUnder the directive, companies are obligated to meet continuous reporting standards. This includes timely updates on any changes in their financial position, management decisions, or risks that may impact investors. The directive also mandates that all disclosures be made available to the public, fostering an information-driven market environment where stakeholders have access to real-time updates. Continuous reporting requirements are expected to create a standardized investment environment, moving Ethiopia closer to international capital market standards. Path Forward for Ethiopia’s Capital MarketThe ECMA’s directive signals Ethiopia’s commitment to establishing a robust, fair, and investor-friendly capital market. By promoting transparency, enforcing compliance, and setting clear standards, these guidelines are a foundational step in building investor confidence and attracting both domestic and international capital. With increased regulation and structured guidelines, Ethiopia’s capital market is poised to become a key player in Africa, supporting sustainable economic growth and opening up new financial opportunities for businesses and individuals alike. 3 COMMENTS Alemu November 15, 2024 At 5:19 pm The. Implementation/Operation of the capital market is going to be late that of the speed of the economic structure demands. Formal and informal economic structures are lagging the progress of the capital market and exposed for mischievous activities since the lack of knowledge and enforcement. Therefore, the capital market authority needs to implement soon in addition the introduction of regulations and directives. The. Implementation/Operation of the capital market is going to be late that of the speed of the economic structure demands. Formal and informal economic structures are lagging the progress of the capital market and exposed for mischievous activities since the lack of knowledge and enforcement. Therefore, the capital market authority needs to implement soon in addition the introduction of regulations and directives. Yisehak November 15, 2024 At 7:59 pm Many of to the existing share companies are led b by individuals with no adequate experience and expertise of business leadership. The role of board of directors ( external and Internal) are not clearly separated. In general how ECMA plan to safeguard the existing shareholders’ interest in number of share companies that lazy individuals who do not understanding corporate governance? Many of to the existing share companies are led b by individuals with no adequate experience and expertise of business leadership. The role of board of directors ( external and Internal) are not clearly separated. In general how ECMA plan to safeguard the existing shareholders’ interest in number of share companies that lazy individuals who do not understanding corporate governance? ? ? ? ? ? ? ? ?  ? ? ? ? ? ? ?  November 16, 2024 At 4:55 pm It is remarkable step and highly demanding directive. The positive externalities over others economic activities are tremendous. It is remarkable step and highly demanding directive. The positive externalities over others economic activities are tremendous. Comments are closed.