Fitch Upgrades Ethiopia’s Credit Rating Amid Economic Reforms and Eased Financial Pressures

Fitch Upgrades Ethiopia’s Credit Rating Amid Economic Reforms and Eased Financial Pressures October 28, 2024 – Fitch Ratings has raised Ethiopia’s Long-Term Local-Currency (LTLC) Issuer Default Rating to ‘CCC+’ from ‘CCC-‘, citing easing financial pressures and enhanced macroeconomic stability. This marks a positive shift, as the country’s Long-Term Foreign-Currency rating remains at ‘RD’ (Restricted Default). Key Drivers of the Upgrade Fitch’s decision reflects Ethiopia’s continued efforts to implement economic reforms, primarily through changes led by the National Bank of Ethiopia (NBE). In July 2024, the NBE adopted a market-based approach to the exchange rate, causing the official rate to depreciate by over 50% and aligning it more closely with the parallel market rate. This shift has reduced distortions in the foreign exchange (FX) market, allowing for greater transparency and stabilizing Ethiopia’s economic outlook. Additionally, the NBE removed restrictions on foreign exchange allocations for importers, which has increased FX availability, encouraging trade and investment. As part of broader economic reforms, the NBE introduced a 15% interest-rate-based monetary policy, along with regular open market operations, to improve monetary policy transmission. Fiscal Reforms and International Support The International Monetary Fund (IMF) approved a new four-year Extended Credit Facility (ECF) Arrangement for Ethiopia in July 2024, with an immediate disbursement of $1 billion from a total $3.4 billion funding. This, combined with a $3.75 billion disbursement from the World Bank, is expected to alleviate Ethiopia’s reliance on domestic financing for its fiscal deficit, reducing financial repression and containing inflation. Fitch projects that net domestic borrowing will decrease to 0.5% of GDP in FY25, down from 2.1% in FY23. Government fiscal deficits are also expected to narrow, reaching 2% of GDP in FY24, although forecasts suggest a slight increase to 2.7% of GDP in FY25 due to increased spending, including a 1.5% GDP fiscal package to support vulnerable populations and public sector wage increases. Addressing Debt and Financing Needs Ethiopia’s focus on managing debt includes converting National Bank advances of ETB242 billion into long-term government securities and eliminating mandatory treasury bond purchases by commercial banks by FY25. This approach aims to reduce reliance on non-market-based local financing. Ethiopia remains in default on foreign-currency debt obligations, having suspended payments on a $1 billion Eurobond in December 2023. However, progress has been made under the Common Framework to restructure $15.1 billion in external debt, with an agreement expected by year-end. Official international reserves, estimated at just above $1 billion in FY24, are projected to increase to $2.9 billion in FY25 and $4.5 billion in FY26. Economic Outlook Fitch anticipates that these fiscal and monetary policy reforms will stabilize Ethiopia’s economy, although it warns of rising government borrowing costs, projected to reach positive real interest rates. The increased costs are expected to raise rollover risks, making the next phases of economic management critical. Ethiopia’s progress toward debt restructuring, especially with major creditors like China, reflects confidence in its ability to handle local-currency obligations without adding to the ongoing restructuring. As Ethiopia negotiates with commercial creditors, the success of these measures could further support its goal of economic stability and growth in the coming years. 1 COMMENT Hussen October 29, 2024 At 12:24 am Nomater Ethiopia sweetmay country Nomater Ethiopia sweetmay country Comments are closed.

Ethiopian Shipping and Logistics Eyes Six New Ships to Meet Ethiopia’s Rising Import-Export Needs

Ethiopian Shipping and Logistics Eyes Six New Ships to Meet Ethiopia’s Rising Import-Export Needs Executives at Ethiopia’s state-owned Ethiopian Shipping and Logistics Services Enterprise (ESLSE) are advancing plans to add six bulk cargo ships to their fleet as the enterprise aims to bolster its capacity and support the nation’s growing import-export needs. According to The Reporter Wondimu Daba, ESLSE’s Deputy CEO for Corporate Services, confirmed that the ESLSE board is evaluating multiple acquisition options, including time charters, voyage charters, or outright purchases of the vessels. “We are fully prepared to bring in these six ships. The board is now assessing whether a time charter, a voyage charter, or a direct purchase would be most strategic,” Wondimu said, adding that the acquisition will proceed through a standard bidding process in line with government procurement protocols. As Ethiopia’s sole multimodal logistics operator, ESLSE manages a considerable share of the country’s trade logistics. According to its 2023/24 performance report, ESLSE handled approximately 45 percent of Ethiopia’s 8.25 million tons of dry cargo imported through Djibouti’s ports, the primary maritime gateway for Ethiopian goods. The report also highlights ESLSE’s role in supporting Ethiopia’s export market, overseeing the shipment of over 13 million tons of goods by sea last year. However, despite these achievements, the enterprise still faces challenges in meeting the logistical demands of Ethiopia’s expanding trade economy. Transport and Logistics Minister Alemu Sime recently highlighted ESLSE’s need for additional fleet capacity in a statement to state media. “The country’s import-export demand is growing, but with only 10 bulk cargo ships currently owned by the enterprise, this is far from enough to support our logistical requirements,” Alemu explained. “This shortage often necessitates leasing additional ships through rental agreements to meet demand.” In an effort to bridge this gap, ESLSE transported close to 834,000 tons of goods last year using vessels secured on lease or rental contracts. This approach has supported the firm’s operations but has also contributed to substantial operating expenses. Despite generating 57 billion birr in revenue during the last fiscal year, heavy operational costs, totaling 48 billion birr, have limited net financial gains for the enterprise. The planned acquisition of six bulk carriers marks a significant step towards reducing reliance on leased vessels and strengthening ESLSE’s capacity to manage Ethiopia’s shipping needs domestically. With the country’s import-export volumes expected to rise, these strategic fleet enhancements are positioned to play a vital role in achieving more efficient, cost-effective logistics solutions. 1 COMMENT Ethiopian Shipping and Logistics Eyes Six New Ships to Meet Ethiopia’s Rising Import-Export Needs - Ethio Diaspora Hub Service October 28, 2024 At 9:36 pm […] at Ethiopia’s state-owned Ethiopian  Shipping and Logistics Services Enterprise (ESLSE) are advancing plans to add six bulk cargo ships to their […] […] at Ethiopia’s state-owned Ethiopian  Shipping and Logistics Services Enterprise (ESLSE) are advancing plans to add six bulk cargo ships to their […] Comments are closed.

The Impact of Government Regulations on Ethiopia’s Real Estate Market

The Impact of Government Regulations on Ethiopia’s Real Estate Market Is Ethiopia’s Real Estate Losing its Balance?With a series of impactful economic reforms, Ethiopia’s business environment is undergoing a significant transformation, impacting virtually all sectors. One of the most affected is the real estate sector, which is navigating a complex landscape marked by both opportunity and constraint. The recent shift to a market-based foreign exchange rate has led to increased costs for imported construction materials and machinery, along with fluctuations in the value of the USD against the birr. New regulatory measures, like the draft ‘Real Estate Development and Real Property Marketing and Valuation Proclamation’ and updated setback rules, are adding some complexity to the industry. At the same time, the government’s decision to open the door to foreign investors is shaking things up in the real estate market. It’s shifting from being dominated by just a few local developers to a much more diverse and competitive environment. “Ethiopia’s real estate sector has faced numerous challenges for a long time. Insufficient infrastructure development, particularly in water and electricity, remains a critical issue that the government must address. Previously, we relied solely on Ethiopian Electric Power (EEP) for transformers, which created significant delays due to long queues. Fortunately, this issue has been resolved, allowing us to source transformers from the open market now. However, water supply continues to be a challenge. At Noah Real Estate, we are proactively addressing this by developing underground water sources before constructing new homes,” said Yoseph Desta, Legal Advisor and Customer Service Manager at Noah Real Estate. According to him, devaluation is not the only reason many developers are raising prices. He believes that some developers adjust their prices based on market research of input prices, while others respond to public concern over the devaluation of the birr. He advises that, given the recent floating exchange rate reform, buyers should take advantage of the initial pricing of homes by paying 100% upfront. This approach provides security, especially as the value of the birr continues to decline daily. The Ethiopian government is aggressively pursuing policy reforms that can bring both good and bad news for businesses. Yoseph is worried that the recent draft of the Asset Recovery Proclamation might put a damper on interest in the real estate market, especially if it’s rushed through. “While we won’t feel the effects right away since the properties have already been sold, it could shake our buyers’ confidence and make them hesitant about future purchases, which could really impact the market in the long run,” he shared.The proposed mandatory licensing for real estate businesses through the “Real Estate and Development and Real Property Marketing and Valuation Proclamation” adds significant complexity to the sector. This new requirement, outlined in Ethiopia’s Real Estate Development and Immovable Property Transaction and Valuation Bill, aims to ensure that only certified and qualified professionals are allowed to carry out real estate activities. While this move is intended to enhance the industry’s credibility, it also presents challenges for developers and agents navigating the new regulations. For instance, the proclamation requires developers to build and hand over at least 50 housing units to obtain a real estate license, while those seeking government land must deliver between 500 and 5,000 units based on demand, with 40 percent designated as affordable housing. Additionally, funds raised from homebuyers will be securely held in a closed account. Updated setback rules complicate operations for real estate businesses by dictating the minimum distance between buildings, which aligns with urban planning goals for public safety and sustainability. Compliance may increase costs and extend project timelines.“The setback rule will only impact developers working on homes that are 500 square meters or smaller. For those developing larger properties, there won’t be any effect. While demolishing buildings close to the street may come with additional costs for developers, it ultimately supports the city’s urbanization plan,” Yoseph Desta said. However, he points out that many developers in Ethiopia, like those around the world, often rely on buyers’ funds to finance construction. He sees the proposed ‘Real Estate Development and Real Property Marketing and Valuation Proclamation’ as a positive step that could help reduce illegal practices in the sector, like developers vanishing after taking buyers’ money. However, he worries that this new requirement might create significant hurdles for emerging developers who are working with limited resources.While the real estate sector has struggled with affordability, it has made significant strides over the last decade. What was once dominated by a handful of developers has now expanded, much like small shops lining the streets. This growth bodes well for the country’s urbanization goals. However, many real estate developers have often lacked loyalty to their buyers, relying heavily on captivating marketing strategies. To truly support the sector, it’s essential for the government to make housing more affordable and ensure its availability. At the same time, the government must strike a balance between discouraging illegal practices and promoting legitimate development. “Developers need to be respectful of regulations, while the government should ensure land is available at reasonable prices and provide subsidies. It’s also important to encourage and support local manufacturers of real estate inputs. We should discourage imports and instead welcome import substitution,” Yoseph Desta advised. Despite facing numerous challenges, Noah Real Estate officially handed over 750 homes to new owners at its latest residential community, the Noah Airport Drive Site in Summit. This development offers a variety of properties, including apartments ranging from 75 to 128 square meters, with options for 2 to 3 bedrooms, along with 32 villas and 45 commercial shops. “The COVID-19 pandemic presented significant hurdles during this project, forcing us to even reduce our staff. On top of that, our market has been unstable, and ongoing conflicts in various parts of the country have added to the difficulties. Yet, despite these challenges, we successfully delivered these homes,” shared Yoseph Desta.

New VAT Proclamation No. 1341/2024 Set to Increase Chicken and Egg Prices, Warns Industry Expert

New VAT Proclamation No. 1341/2024 Set to Increase Chicken and Egg Prices, Warns Industry Expert During a press conference leading up to the 13th Ethio Poultry Expo (ETHIOPEX), the 9th Africa Livestock Exhibition and Congress (ALEC), the 4th Apiculture and Aquaculture Ethiopia Trade Show, and the newly launched Bio-Energy Trade Show, Dr. Demeke Wondimagegn, Technical Sales Manager of Turow Nutrition, raised concerns about an imminent rise in chicken meat and egg prices. The events are scheduled to take place from October 31 to November 2, 2024, at the Millennium Hall in Addis Ababa, Ethiopia. Prana Events, in collaboration with Sudanese Expo Team for Service Co., Ltd., is organizing the exhibitions. Dr. Wondimagegn attributed the anticipated price hike to the new VAT Proclamation No. 1341/2024, which removes tax exemptions on key inputs for poultry production, such as feed and medication. He noted that these inputs were previously exempt from VAT, but with the new proclamation, the added cost burden will likely push prices higher for both poultry farmers and consumers. Poultry production in Ethiopia is already grappling with several hurdles. Feed costs, which constitute approximately 70% to 75% of the total production costs, have been steadily rising, making chicken farming less profitable. In addition to feed, other essential inputs like medication and equipment have also seen price surges due to inflation and logistical challenges. Dr. Wondimagegn emphasized that the VAT change will worsen these issues, potentially driving many small-scale farmers out of business and limiting the growth of the sector. Moreover, the Ethiopian poultry industry is still in its infancy, contributing only a small fraction to the nation’s agricultural output. While the government seeks to raise revenue through taxation, Dr. Wondimagegn questioned the timing and appropriateness of imposing taxes on such a vulnerable sector. He urged the government to reconsider the VAT changes, especially given the industry’s critical role in providing affordable protein to a growing population. The Ethio Poultry Expo and other upcoming events are expected to gather stakeholders from across Africa to discuss these and other pressing challenges faced by the livestock sector, including opportunities for investment and innovation in feed technology, disease control, and sustainable farming practices. The expo will also serve as a platform to showcase new technologies and products aimed at enhancing productivity in Ethiopia’s evolving poultry, livestock, apiculture, and aquaculture sectors. 1 COMMENT Ittu Aba Farda October 26, 2024 At 2:41 am It take this as good news cuz it will help lower bad cholesterol on a lot of people. It take this as good news cuz it will help lower bad cholesterol on a lot of people. Comments are closed.

Ethiopia’s Betting Ban: Physical Shops Shutter, but Digital Doors Open

Ethiopia’s Betting Ban: Physical Shops Shutter, but Digital Doors Open Ethiopia’s ambitious crackdown on sports betting, which saw over 6,000 betting shops shut down across Addis Ababa and other cities, has been in effect for some time now. This effort has led many to abandon betting, easing some of the related social issues. While the physical outlets may have closed, the betting culture remains resilient, with many shifting to online platforms and underground operations. This ongoing challenge underscores the difficulty of regulating a deeply entrenched industry that is increasingly intertwined with the digital world. Despite the efforts to crack down on sports betting by shutting down physical betting shops, the industry remains vibrant, particularly in the digital sphere. The closure of physical betting shops has not deterred bettors; instead, it has driven the industry online. Websites like Betika, Best Bet, Hulu Sport Betting, Anbessabet, Ahadu Birr, Qwickbet ,Arada Bet,Flash Sport Bet, Ethiowin, Santim Bet, Axumbet  and many more have become popular destinations for those looking to place bets. These platforms offer a range of services, including live betting, virtual games, and jackpots, making them accessible and appealing to a wide audience. In addition to the thriving online betting scene that spans across all parts of the country, including Addis Ababa, betting shops have found creative ways to stay in the game. In Hawassa and Southern parts of the country, these shops continue to operate openly, while in cities like Adama,Gondar and many others have gone underground. This network witnesses the deep-rooted addiction to sports betting in Ethiopia, where those affected remain determined to place their bets despite the barriers. Behailu Engida, an employed resident of Addis Ababa, is a bettor. He is a football enthusiast who has been engaged in sports betting for several years. Before the closure of physical betting shops, Engida would often visit local betting houses in the Addisu Gebeya area. “Despite my resolve to abstain from betting, the moment I received a message inviting me to place bets using my phone, my resolve crumbled. My brain couldn’t resist the temptation, and I found myself succumbing to the habit once again. Even though I still don’t want to bet, I must admit that I am addicted,” he confessed. He explained that once you create an account on the betting website and link your bank or Telebirr account for deposits, the process of betting digitally is straightforward. Following the closure of physical betting shops, Engida, like many others, shifted to online platforms, where he now bets more frequently than before. Sites such as Betika, Hulu Sport Betting, and Axumbet have become his go-to destinations. The National Lottery Association views sports betting as both entertainment and a source of tax revenue. However, the NLA only permits sports-related betting and games that can be predicted, excluding those run by computer systems. Other forms of gambling, such as casino games (unless specifically allowed), card games, skill games, Keno, unlicensed betting shops, betting by individuals under 21, activities like khat chewing in shops, and operations near schools and religious institutions are prohibited or unlicensed. “As we do not have the mandate to ban betting, we are instead closing branches that fail to comply with regulations,” said Tewodros Neway, Public Relations Manager of the National Lottery Administration. He added that branches meeting the necessary requirements to open sports betting shops are allowed to continue operating. While The Ministry of Women and Social Affairs is a strong advocate for banning sports betting, citing its role in causing social crises, discouraging young people from working, and leading to psychological problems such as anxiety, depression, and even suicide. The Association of Sports Betting Organizations defends the operations of sports betting companies, arguing that they operate within the law and contribute significantly to the country’s tax revenue.

New Salary Scale to Take Effect Nationwide Starting October, Says Finance Minister Ahmed Shide

New Salary Scale to Take Effect Nationwide Starting October, Says Finance Minister Ahmed Shide Ahmed Shide, the Minister of Finance, has announced that October salary payments will commence using the newly revised pay scale. “The new salary structure, effective from October, has been approved by the cabinet. Over the past few weeks, the Ministry of Finance and the Civil Service Commission have completed the necessary preparations, including the implementation guidelines,” Shide stated. He further explained that the updated pay scale will be applied to the October payroll. “This revision will benefit lower-paid government employees, members of the security forces, and all government institutions at both regional and federal levels,” he noted. The minister also highlighted that the new pay scale will be implemented nationwide. “The regional states will start paying their employees using the new scale from October, with the federal government covering the regional share. Funds will be transferred to the regions through the Ministry of Finance,” he added.

Ethio Foreign Exchange Bureau Goes Operational: A New Era in Currency Trade

Ethio Foreign Exchange Bureau Goes Operational: A New Era in Currency Trade Unveiling Ethiopia’s First Independent Forex BureausThe National Bank of Ethiopia (NBE) has recently granted operational licenses to five new independent foreign exchange bureaus, marking a significant development in the country’s financial landscape. This milestone marks a crucial step in the country’s transition to a market-based exchange regime, following the recent floatation of the Ethiopian birr. The licensed bureaus, which include Dugda Fidelity Investment PLC, Ethio Independent Foreign Exchange Bureau, Global Independent Foreign Exchange Bureau, Robust Independent Foreign Exchange Bureau, and Yoga Forex Bureau, are now authorized to engage in the buying and selling of major convertible currencies. These new entities are restricted to spot transactions and are prohibited from engaging in trade-related activities such as letters of credit, but they can purchase up to $10,000 in foreign currency from individuals without customs declarations and sell up to $10,000 to travelers with valid documents. This development is expected to foster greater competition, transparency, and financial inclusion, aligning with the NBE’s broader efforts to modernize and expand Ethiopia’s financial sector. Independent forex bureaus are authorized to buy and sell major convertible currencies, such as the US dollar and euro. Their primary role is to facilitate spot transactions, meaning the exchange of currencies is settled immediately, unlike more complex transactions like letters of credit, which remain the purview of commercial banks. Efrem Tesfaye, CEO of Ethio Foreign Exchange Bureau, explained that they offer cash transactions in foreign currencies immediately, with a maximum limit of $10,000 per transaction. These services are available to travelers for various purposes, including education, medical treatment, and tourism. Clients are required to present the necessary documentation, such as a passport, visa, and airline ticket. The bureau’s headquarters is located near the hub of the parallel currency market, around the Ethiopian National Theatre and Ethiopia Hotel. Tesfaye highlighted that being the pioneer in this sector came with challenges, especially in coordinating multiple institutions, navigating bureaucracy, and ensuring the right conditions for operations. However, he noted that the path has now been paved for others interested in entering the industry. He further mentioned that this foreign exchange bureau was established with a shareholders’ contribution of ETB 180 million.He also emphasized the convenience and speed of their services, noting that, with the proper documentation, transactions can be completed in just a few minutes. “For individuals planning to travel abroad, whether for personal or business purposes, the bureau offers a straightforward process,” says Tesfaye. “Travelers can obtain up to $5,000 in foreign currency for personal trips, while business travelers are eligible for up to $10,000, provided they present the necessary travel documents.” According to him, hoping for an influx of forex buyers beyond their capacity to serve, they don’t even want to advertise their services through media or other platforms. He added that the current sluggish forex market is not what they expected, and he believes this is due to limited public awareness.The parallel market has long been a significant issue, but many believe the new forex bureaus will eventually beat them. The forex bureaus are expected to provide faster and more transparent transactions, potentially drawing customers away from the black market. With their official backing and regulated operations, these bureaus are seen as a viable alternative that could finally beat the parallel market rates. According to Tesfaye, competing with the parallel market is challenging because unofficial operators are not subject to taxes and other expenses faced by official forex bureaus. “It’s difficult for us to compete on margins, so they will likely continue operating,” he said, adding that government intervention is needed to curb the parallel market. “We offer the same services as the parallel market, but unlike banks, we don’t provide letters of credit (LC), which limits our alternative income sources.” 3 COMMENTS Roba October 19, 2024 At 9:13 pm Why not tell us the exact location of this companies so that we can benefit from this. It is because of awareness that we are not using this facility Why not tell us the exact location of this companies so that we can benefit from this. It is because of awareness that we are not using this facility Amanuel Tamesgen October 21, 2024 At 6:35 am Thanks to God , This chance is very good for who whant to go out side,to export and import commoditys and so for that have licensed to buying and selling foreign currency’s like dollar and Ero but as to me its IMPAC on financial institutions regarding on they’d foreign currency to buy and selling that dollars and currency but know there is a chance that sellers and buyer to interact banks for LC Thanks to God , This chance is very good for who whant to go out side,to export and import commoditys and so for that have licensed to buying and selling foreign currency’s like dollar and Ero but as to me its IMPAC on financial institutions regarding on they’d foreign currency to buy and selling that dollars and currency but know there is a chance that sellers and buyer to interact banks for LC Keflee November 16, 2024 At 11:59 am Hello, Do you currently provide the service? If not, when does it start? Thank you Hello, Do you currently provide the service? If not, when does it start? Thank you Comments are closed.

Ministry of Finance Greenlights Entry of Fuel Vehicles Stuck at Djibouti and Dire Dawa Ports

Ministry of Finance Greenlights Entry of Fuel Vehicles Stuck at Djibouti and Dire Dawa Ports Addis Ababa, October 19, 2024 – The Federal Democratic Republic of Ethiopia’s Ministry of Finance, in collaboration with the Customs Commission, has issued a new directive regarding the import of fuel-powered vehicles stored at Djibouti and Dire Dawa Dry Port. The directive is aimed at resolving the issue of vehicles that have been restricted from entering Ethiopia, in accordance with the government’s earlier decision to ban vehicles operating on fuel classified under tariff number 87.03. Following a detailed assessment by a government committee, which included various agencies and the Customs Commission, the vehicles in question were categorized based on their purchase date and customs registration status. Notably, the government has decided that vehicles purchased before February 26, 2016, and duly registered through the Customs Commission, will be transported to Dredawa and held until further government decision. Meanwhile, vehicles in transit that meet similar criteria will be allowed entry after fulfilling customs formalities. The Ministry of Finance has clarified that vehicles classified under tariff number 87.03, stored at both Dredawa Dry Port and Djibouti Port, must have their detailed information thoroughly documented. These vehicles will be subject to customs taxes based on the exchange rate in effect on the day their customs declaration is processed. Only after these formalities and payments are completed will the vehicles be cleared for entry into the country. This move comes as a recommendation to address the growing backlog of vehicles stranded at these ports and to ensure compliance with the country’s fuel vehicle importation policies. The directive was communicated to key government offices, including the Prime Minister’s Office, the Ministry of Revenue, the Ministry of Transportation and Logistics, and the Ethiopian Sea Transport and Logistics Service Company. Minister Ahmed Shide, on behalf of the Ministry of Finance, affirmed the government’s commitment to resolving the matter swiftly and ensuring that all vehicles meet the necessary customs requirements. Impact and Future Implications The new directive is expected to clear up the congestion at Djibouti and Dredawa Dry Port, where many vehicles have been waiting for months. It also highlights the government’s stance on regulating fuel-powered vehicles, as part of its broader efforts to promote cleaner and more sustainable transportation in the country. Owners of vehicles affected by the February 2024 cutoff date are encouraged to prepare for the necessary customs procedures, including the payment of taxes. The Customs Commission will oversee the process, ensuring that all vehicles comply with the regulations before entering Ethiopia. For further information, stakeholders are advised to contact the Ministry of Finance through official communication channels.

Zemen Bank Achieves Record 3.77 Billion Birr Profit Amid Economic Challenges

Zemen Bank Achieves Record 3.77 Billion Birr Profit Amid Economic Challenges Zemen Bank has reported a significant profit of 3.77 billion birr for the 2023 fiscal year, marking a milestone achievement in its 16th Annual General Meeting. The bank’s president, Dereje Zebene, highlighted the performance, emphasizing the bank’s growth amidst a challenging economic environment. The profit per share for shareholders stood at an impressive 37.6%, reflecting the bank’s resilience and strategic approach in navigating complex market conditions. This profit is a substantial increase compared to the previous year, representing a growth of 36.8%, or 1.01 billion birr more than last year’s figures. Dereje Zebene attributed this success to the bank’s ability to adapt and innovate in a year characterized by inflationary pressures, ongoing macroeconomic reforms, and a severe foreign currency shortage that has strained many sectors across Ethiopia. Zemen Bank’s overall assets experienced a notable increase of 23.9%, now totaling 59.2 billion birr, underscoring its expanding footprint in the banking industry. The bank’s paid-up capital has also seen a healthy rise, reaching 7.5 billion birr, and the total signed capital is now at 14.97 billion birr, positioning Zemen Bank among the top financial institutions in the country in terms of capitalization. The bank has also seen a surge in customer deposits, growing by 17.6% from the previous fiscal year to reach 43.61 billion birr. This growth in deposits is a testament to the trust and confidence customers place in Zemen Bank, as it continues to offer competitive financial services in a highly competitive banking market. However, the president also expressed concerns about the broader challenges facing the financial sector, particularly the impact of inflation and the National Bank of Ethiopia’s decision to impose credit limits on banks. According to Zebene, these credit restrictions may dampen business activities, potentially limiting access to credit for businesses and consumers and thereby affecting profitability across the banking sector. Despite these challenges, Zemen Bank has demonstrated resilience by maintaining its growth trajectory and continues to play a pivotal role in Ethiopia’s financial sector. Zebene remarked that the bank is committed to leveraging its strong capital base and expanding its services, while staying vigilant of economic headwinds and regulatory changes that could affect its future growth. As Zemen Bank looks ahead, the institution remains focused on optimizing its operations, introducing innovative products, and deepening customer engagement, all while navigating the ongoing economic reforms and addressing the critical shortage of foreign currency.