Ethiopian Airlines Expands African Network with Daily Service to Port Sudan

Ethiopian Airlines Expands African Network with Daily Service to Port Sudan Ethiopian Airlines is delighted to announce the launch of a daily flight service to Port Sudan, Sudan, commencing on October 15, 2024. This strategic expansion further strengthens Ethiopian’s commitment to enhancing connectivity across the African continent and beyond, fostering regional socio-economic growth and facilitating trade and tourism. The new route will provide seamless travel options for passengers traveling between Ethiopia and Sudan, as well as connecting travelers from across the vast Ethiopian Airlines network to this significant Red Sea port city. The introduction of this service underscores Ethiopian’s dedication to serving the evolving needs of the African market and contributing to the continent’s economic development. By connecting Port Sudan to its extensive global network, Ethiopian Airlines aims to unlock new opportunities for businesses, travelers, and communities, promoting cross-border collaboration and cultural exchange. The inaugural flight, ET350, will depart from Addis Ababa at 11:00 and arrive in Port Sudan at 12:15. The return flight, ET 351, will leave Port Sudan at 14:15, arriving back in Addis Ababa at 17:30. Both flights will be operated by the state-of-the-art Boeing 737 Max aircraft, ensuring a comfortable and reliable journey. “We are pleased to connect our Sudanese brothers and sisters from Port Sudan to Addis Ababa, and to the rest of the world using our extensive global network,” says Mesfin Tasew, Group CEO of Ethiopian Airlines. “By introducing daily flights to Port Sudan, we are bridging cultures and economies. This expansion is a testament to our unwavering dedication to serve our continent and its people, driving progress and prosperity through the skies.” With the inclusion of Port Sudan, Ethiopian Airlines expands its network to 66 destinations within Africa. The inauguration of this new route emphasizes Ethiopian Airlines’ dedication to broadening its presence throughout Africa, while simultaneously enhancing connectivity for both business and leisure travelers. Port Sudan, a city strategically situated along the Red Sea, acts as an essential center for commerce and economics in the region. This development offers a gateway to the diverse cultural history and burgeoning economic prospects of Sudan. Ethiopian Airlines invites passengers to experience the warmth and hospitality of its newest destination, Port Sudan. Book your journey today and be part of the growth story that is Ethiopian Airlines – the New Spirit of Africa. For detailed flight schedules and bookings, please visit our website. (https://www.ethiopianairlines.com/et) or contact your local Ethiopian Airlines office. About Ethiopian Ethiopian Airlines Group (Ethiopian) is one of the fastest-growing airlines brand globally and the continent’s largest airline brand. In its seventy-eight years of successful operations, Ethiopian has become one of the continent’s leading carriers, unrivalled in efficiency and operational success. Ethiopian commands the lion’s share of the African passenger and cargo network operating the youngest and most modern fleet to more than 150 domestic and international passenger and cargo destinations across five continents. Ethiopian’s fleet category consists of ultra-modern and environmentally friendly aircraft such as Boeing 737s, 777s, 787s, Airbus A350-900 and De Havilland Q400. Ethiopian is also pursuing multi-hub strategy through hubs in Lomé, Togo with ASKY, in Lilongwe, Malawi with Malawi Airlines and in Lusaka, Zambia with Zambia Airways. Having achieved its strategic plan (Vision 2025) ahead of time, Ethiopian is currently implementing a 15-year strategic plan Vision 2035 that will see it become one of the top 20 most competitive and leading aviation groups in the world. Ethiopian has been champion in various coveted awards including Skytrax’s ‘Best Airline in Africa Award’ for seven consecutive years among others. The airline has been a Star Alliance member since 2011 and has been registering more than threefold growth in the past 10 years. For more at: www.ethiopianairlines.com Email: [email protected] Contact: (251-11)517-8913/8165/8907

Dr. Yohannes Ayalew Appointed CEO of Amhara Bank

Dr. Yohannes Ayalew Appointed CEO of Amhara Bank Dr. Yohannes Ayalew has been appointed as the new CEO of Amhara Bank , effective September 13, 2024. This announcement came following his voluntary resignation from his previous role as the President of the Ethiopian Development Bank (DBE). Dr. Yohannes’ tenure at the Ethiopian Development Bank began on September 12, 2020. He succeeded Haileyesus Bekele, who had resigned just two days prior. Dr. Yohannes brought a wealth of experience to the position, having previously served as the Vice Governor and Chief Economist of the National Bank of Ethiopia (NBE). His background also includes a role as an executive director at the Ethiopian Development Research Institute, showcasing his extensive expertise in economic and financial matters. Before assuming the role at DBE, Dr. Yohannes was a member of the board of directors at the National Bank of Ethiopia. His appointment to the leadership position at DBE was part of a notable pattern where former NBE vice governors have transitioned into prominent roles at the Development Bank of Ethiopia. This trend includes his predecessor, Getahun Nana, who also held the position of DBE President before Haileyesus Bekele. Dr. Yohannes’ move to Amhara Bank marks a significant shift in his career, reflecting a new phase in his professional journey. His previous experiences and leadership roles in financial institutions are expected to contribute to the growth and strategic direction of Amhara Bank.

Ethiopia’s Economic Crossroads: Navigating Reforms Amidst Financial Turmoil

Ethiopia’s Economic Crossroads: Navigating Reforms Amidst Financial Turmoil By- Fahad Garba Aliyu Ethiopia has reached a critical juncture, closing its currency at a surprisingly pivotal moment, a decision rooted in decades of economic choices. Over the past twenty years, Ethiopia has financed its development primarily through heavily leveraged capital from international markets. While borrowing in itself is not inherently problematic, the issues arose from how this capital was utilized. Ethiopia’s impressive growth, driven by public investment funded through international capital markets, including bonds, has been marred by inefficiencies and corruption. These challenges have plagued the completion of public sector projects, preventing them from generating the necessary economic returns and leading to significant public sector debt. When the current Ethiopian government took power in 2018, it inherited an external debt stock of $28 billion, against export earnings of just $3 billion. Various reform initiatives were launched to address this imbalance, but external shocks, including the COVID-19 pandemic, the Russia-Ukraine war, and internal conflicts, have hampered progress. These challenges have contributed to severe inflation, wide budget deficits, and misaligned payments, leading to a critical decision to close the currency and implement a modern, interest-based monetary policy. This policy shift represents a significant change for Ethiopia, as it moves away from its previous approach to managing the economy. However, the large informal sector and limited financial inclusivity pose substantial obstacles to the effectiveness of these reforms. For interest-based monetary policies to succeed, a significant portion of the economy must operate within the formal sector. Currently, a large amount of money circulates outside the banking system, undermining the impact of these policies. In the face of these challenges, Ethiopia’s currency devaluation has added to the economic uncertainty. The exchange rate has seen a significant jump in volatility. This radical move, while necessary, shocked many economists and has led to speculation about further depreciation in the coming months. The government’s ability to stabilize the currency and manage the market’s reaction will be critical in determining the success of these reforms. Drawing parallels with countries like Nigeria and Kenya, further depreciation of the Ethiopian birr can be anticipated as latent demand surfaces, with this adjustment process likely continuing until the end of the year. Initially, import prices might decrease due to reduced foreign currency costs, but this could be offset by increased taxation and speculative behavior among importers. In addition, new taxes are being introduced, including excess stamps on beer and tobacco, fuel price increases, and real estate property taxes. Consequently, there is a projected rise in inflation and the cost of living. These new taxes aim to increase domestic revenue generation, a common condition of IMF facilities, but they will likely exacerbate the cost of living and inflation, especially given the timing around the Ethiopian New Year when household expenses naturally rise. The government must carefully balance these measures to avoid social unrest, as seen in Kenya with the Finance Bill 2024. The IMF has provisions to recalibrate, if necessary, but the next few months will be critical in assessing the public’s response and the overall economic impact. Ethiopia can learn valuable lessons from Nigeria, which recently transitioned to a floating exchange rate system. Nigeria’s decision to float the naira was driven by the need to address currency stability and foreign exchange shortages. Nigeria aimed to eliminate arbitrage opportunities and promote transparency in the foreign exchange market by allowing the naira’s value to be determined by market forces. While this move has the potential to attract foreign investment and enhance export competitiveness, it has also led to increased exchange rate volatility and inflationary pressures. For Ethiopia, adopting a floating exchange rate could similarly enhance the competitiveness of its exports and attract much-needed foreign capital. However, Nigeria’s experience highlights the risks of such a policy shift. Increased exchange rate volatility could create uncertainty for businesses and consumers, while inflationary pressures could undermine the purchasing power of Ethiopian citizens. Effective monetary policy tools and vigilant economic oversight will be essential in managing these risks and ensuring that the benefits of a floating exchange rate outweigh the challenges. Nigeria’s journey also underscores the importance of managing external debt and maintaining financial stability. With the naira’s depreciation, Nigeria’s foreign debt obligations have increased, straining the government’s ability to service its debt. Ethiopia, with its own significant external debt, must carefully consider the implications of a floating exchange rate on its debt servicing capacity and develop strategies to mitigate potential risks. In addition, Nigeria’s experience also reveals challenges such as exchange rate volatility, inflationary pressures, and the impact on external debt. The fluctuating naira has led to economic uncertainty, higher import costs, and increased debt servicing obligations. Ethiopia must carefully manage these risks with robust monetary policies, effective inflation control, and social safety nets to protect its most vulnerable citizens. Clear communication and public engagement are essential for successfully implementing such a policy, ensuring that the transition to a floating exchange rate supports long-term economic stability and development. In conclusion, Ethiopia’s economic reforms, including the decision to close the currency and consider a floating exchange rate, are fraught with challenges but also hold the potential for significant long-term benefits. By studying Nigeria’s experience and implementing careful, well-coordinated policies, Ethiopia can navigate this economic crossroads and emerge stronger, with a more resilient and sustainable economy. The coming months will be critical in determining whether these reforms will succeed in laying the foundation for Ethiopia’s future growth and development. Fahad Garba Aliyu is the Managing Partner at Ignite Capital Ltd and can be reached at [email protected]

Ethiopia’s Banking Sector Reaches Trillion-Birr Milestone: A Financial Achievement in 2016

Ethiopia’s Banking Sector Reaches Trillion-Birr Milestone: A Financial Achievement in 2016 Ethiopia’s financial sector has remained robust by all standards over the last fiscal year, according to recent reports. A few months ago, the National Bank of Ethiopia (NBE) released its first Financial Sector Stability Report, highlighting the sector’s health. However, the report also noted the emergence of certain risks, stressing the need for vigilance and follow-up measures to maintain the soundness and security of the financial system. The 2016 fiscal year showed continued growth in the banking sector across various key metrics, including value, capital, profit, and deposit collections. Banks operating in Ethiopia have continued to be profitable, with total assets surpassing three trillion birr, according to financial data. Bank Assets The NBE’s official data indicates that the total assets of the country’s banks reached 2.84 trillion birr in 2016. The state-owned Commercial Bank of Ethiopia held 1.2 trillion birr of these assets, while the remaining assets were distributed among 30 private banks. Private banks saw significant growth in 2016, with their combined assets reaching over 1.9 trillion birr. Awash Bank led the pack, boasting assets worth over 300 billion birr. Abyssinia Bank followed with more than 221.5 billion birr in assets, and Dashen Bank had assets exceeding 183.5 billion birr. Other notable private banks included Bank of Oromia with 140 billion birr and Union Bank with 100 billion birr in assets. Loan Disbursements The banks have also been key players in credit supply, with the total loans issued in 2016 exceeding 1.1 trillion birr. Despite a cap by the NBE limiting loan growth to 14%, private banks managed to meet and surpass this target. Awash Bank, the largest private lender, reported a loan portfolio exceeding 183 billion birr. Abyssinia Bank was also a top lender, with loans totaling over 165 billion birr by the end of the fiscal year. Dashen Bank followed closely, with loans amounting to over 117.8 billion birr, while Oromia Cooperative Bank disbursed nearly 100 billion birr in loans, reaching 99.1 billion birr by the end of the financial year. Capital Growth The capital base of private banks also saw significant growth, with the total paid-up capital reaching 160 billion birr. Among private banks, Awash Bank led in capital, with paid-up capital surpassing 20 billion birr by the end of the fiscal year. Abyssinia Bank raised its paid-up capital to 14 billion birr, while Dashen Bank reached 12 billion birr. Several other banks, including Oromia Cooperative Bank (11.16 billion birr), Daman Bank (7.5 billion birr), Sinqqee Bank (7.7 billion birr), Tseday Bank (9.8 billion birr), Neb Bank (7.5 billion birr), Amhara Bank (7.7 billion birr), and Hibret Bank (7 billion birr), have also managed to significantly boost their paid-up capital, meeting or surpassing the National Bank of Ethiopia’s requirement. Despite emerging risks, Ethiopia’s banking sector remains profitable and continues to grow in terms of assets, loan disbursements, and capital accumulation. Awash Bank, Abyssinia Bank, and Dashen Bank lead the private banking industry, setting benchmarks in asset management, lending, and capital growth. The sector’s robust performance underscores the importance of continued oversight to maintain its stability.

Ethiopia’s Money Market Auctions in Decline: Fewer Banks, Bigger Bids, and What’s Next

Ethiopia’s Money Market Auctions in Decline: Fewer Banks, Bigger Bids, and What’s Next Participation in Ethiopia’s open market operation (OMO), the central money market auction introduced by the National Bank of Ethiopia (NBE) in July, has steadily decreased, despite initial enthusiasm from financial institutions. While the ratio of participation grew initially, engagement has since slowed down, highlighting concerns over the effectiveness of the instrument in maintaining liquidity within the banking sector. Financial institutions’ initial interest wanes When the NBE first introduced the money market instrument as part of its macroeconomic reforms, several financial institutions eagerly participated. However, over time, participation rates have gradually declined. According to Fikadu Digafe, vice governor and chief economist at the NBE, fewer players are now involved in the auctions, and the total amount sold to the NBE has decreased significantly. “The number of participants and the value is gradually decreasing, but banks that are liquid are still participating in the auction,” Digafe shared with Capital. Fewer banks in recent auctions The most recent auction, held on Thursday, September 5, saw participation from only five banks, with a total of 15.4 billion birr allotted. This marked the fifth auction since the introduction of the instrument. In contrast, the second auction, which focused on absorbing market liquidity, saw 21 banks participating, raising a total of about 37.5 billion birr. The inaugural auction on July 11 involved 16 banks and raised about 20 billion birr with a 15-day maturity term. However, participation has decreased since then, with only 12 and 9 banks involved in the third and fourth auctions, held on August 8 and 22, respectively. The sums raised in these sessions were 29.6 billion birr and 23.3 billion birr. Average auction amounts increase despite fewer participants Despite the declining number of participants, experts observed that the average amount allocated per bank in recent auctions has increased. In the latest auction, each of the five participating banks received an average of 3.1 billion birr—the highest average since the auction on August 21, where the share was 2.6 billion birr per bank. Several bank executives, including leaders of newly established banks, participated in earlier auctions to test the new system. One executive noted, “We offered less than 100 million birr on the initial auction to test the new market.” Shifting focus to foreign currency business Experts suggest that the reduced participation in OMO auctions could be attributed to banks redirecting their liquidity towards investments in foreign currency. Since the NBE opened the foreign exchange market to market forces, banks may be more inclined to focus on currency trading. “Their liquidity may be transferred to investments in foreign currency businesses,” one expert explained. Fikadu Digafe confirmed that the NBE is encouraging banks to shift their resources towards hard currency mobilization as part of their broader financial strategy. OMO’s role in inflation control and liquidity management The OMO, with a two-week maturity term, is designed as a tool to manage liquidity in the banking system and control inflation. According to the NBE’s new monetary policy framework, introduced at the start of the 2024/25 fiscal year, biweekly auctions will either withdraw or inject liquidity based on market conditions. The OMO serves as the primary tool to maintain interbank market rates near the national bank rate (NBR), which was set at 15 percent. When there is excess liquidity in the banking system, causing rates to fall below the NBR, the OMO will absorb liquidity. Conversely, when there is a shortage, the NBE will inject liquidity into the system. New tools for liquidity management In addition to the OMO, the NBE is also in the process of introducing an ‘overnight lending facility’ and an ‘overnight deposit facility’ to help banks manage liquidity over short-term periods. These facilities, formally known as standing facilities, will be available at the NBR rate plus or minus 3 percent.

Rising Costs and Festive Spirits: The Impact of Ethiopia’s New FX Regime

Rising Costs and Festive Spirits: The Impact of Ethiopia’s New FX Regime The Ethiopian New Year is a time for family gatherings, new clothes, and fresh starts. Yet this year, the festive mood is marred by financial stress. As families shop for the holiday, they are finding that their birr doesn’t stretch as far, making essentials like food and gifts more expensive. The new market-based foreign exchange system, intended to stabilize the economy, seems to have made basics like meat and spices feel like luxuries. With frustration and concern in the air, Addis Insight went into the heart of the market to find out if the festive spirit can still sparkle despite the mounting costs. The holiday season in Ethiopia is usually filled with lively music, the aroma of fresh spices, and family gatherings. However, this year feels different. With the new market-based exchange system, prices for essentials like oil, eggs, meat, and spices have surged. What used to be a joyous time now comes with a heavier price tag, making people think twice about every purchase. As one wanders through the markets, something feels different. Vendors who once greeted customers with warm smiles and playful banter now exchange worried looks as they tally up bills. The usual cheerful chatter has given way to anxious conversations about rising prices and tighter budgets. Shoppers who used to breeze through the stalls now move more deliberately, weighing each purchase carefully. Every extra birr feels burdensome, and the holiday spirit seems to be dimmed by financial strain. An off-the-record trader reflected on the current economic climate, describing it as particularly challenging. He noted that this year’s holiday season feels more burdensome than previous ones, such as Eid and Easter, emphasizing the growing difficulties faced by traders and consumers alike. He highlighted significant price increases affecting both vendors and consumers. For instance, the cost of a 5-liter bottle of oil has risen from ETB 950 during the previous holiday season to ETB 1,040 now. Similarly, the price of lentils has jumped from ETB 160 to ETB 200, and eggs have increased from ETB 11 to ETB 13. These rising costs illustrate the economic pressures that are making this holiday season particularly challenging. Another retailer shared a similar perspective, pointing out that the prices of essential goods have increased significantly compared to past holidays. “I don’t remember the exact figures, but we used to sell onions for ETB 80, and now they’re priced at ETB 120,” he said. He attributed the price hikes not only to the usual rise in demand during the holiday season but also to broader economic changes, including the shift to a market-based foreign exchange regime, which has had both direct and indirect impacts on costs. Moreover, he highlighted that the ongoing civil conflicts in various regions of Ethiopia are affecting supply chains and limiting the ability to move and conduct business freely. The Ethiopian New Year is unique among holidays. It’s a time when many people refresh their homes, swapping out old utilities and accessories for something new, while children don brand-new clothes to welcome a fresh start. However, will the shift to a market-based foreign exchange regime cast a shadow over this tradition? With the potential rise in the cost of imported goods, people might have to rethink their spending, prioritizing essentials as the holiday approaches. Ayelech Mengistu, a fictitious name for anonymity, like many mothers managing a household, is feeling the pinch of rising prices. “I used to buy a set of coffee cups for ETB 250, but now they’re ETB 1,000—that’s four times more,” she shared, shaking her head. Even everyday essentials like onions and teff have become more expensive, making it harder for her to stretch the family budget. “We decided not to buy a chicken this time,” she said, explaining how they had to allocate their budget toward the coffee cups and shift to buying meat instead. Addis Insight also captured a vibrant scene on the eve of the Ethiopian New Year, with traditional music filling the air and creating a festive backdrop for the bustling market. Yet, a closer look at the market reveals a more complex reality. The price of sheep has surged by ETB 1,000 to 2,000 compared to the last holiday, with the minimum now at ETB 6,000, while eggs are fetching up to ETB 18 each. In contrast, the cost of chicken, a key ingredient in the beloved Ethiopian dish doro wot, has remained relatively stable, ranging from ETB 700 to ETB 1,200. Interestingly, not all prices are climbing. Some animal by-products are showing a decline, with butter dropping from ETB 1,000 during the last Easter to ETB 900 now. The market snapshot reflects the complexities of holiday shopping amid changing economic conditions, where some prices rise steeply while others offer a rare reprieve. This mixed picture highlights the varied economic pressures that define the holiday season. This Ethiopian year of 2017 tells a story of both hope and struggle, like two sides of a coin. For some, the sight of new corridors and urban developments sparks dreams of a prosperous future, where the country moves forward with promise and progress. Yet, there’s an undercurrent of anxiety. Recent policy changes, such as the shift to a market-based foreign exchange system, new electricity tariffs, and increased excise taxes, are expected to unintentionally drive up living costs, though their full impact is still unfolding. Families are caught between the excitement of change and the harsh reality of soaring prices, making this New Year a poignant reminder of the mixed emotions that shape everyday life in Ethiopia. 2 COMMENTS Ittu Aba Farda September 9, 2024 At 7:55 am I would like to take a moment to wish my very dear countrymen and women wherever you are a Happy New Year and a year of peace, security and stability. I wish you all a rewarding year in 2024-2025 and beyond. Insha’Allah!!! I would like to take a moment to wish my very dear countrymen and women wherever you are a Happy New Year and a year of peace, security and stability. I wish you all a rewarding year in 2024-2025 and beyond. Insha’Allah!!! Ittu Aba Farda September 12, 2024 At 5:30 am Meanwhile, let’s us not forget those innocent victims massacred by the demonic terrorists here in America on this day 23 years ago in 2001. The victims were various backgrounds including one of our own. Our hearts and prayers should go out to the families of the victims who still mourn the untimely deaths of their loved ones. I remember reading the story of one of countrymen who was killed in one the planes that was hijacked. He was returning from the old country after visiting his families there. May he and the rest of the victims rest in eternal peace!!! Meanwhile, let’s us not forget those innocent victims massacred by the demonic terrorists here in America on this day 23 years ago in 2001. The victims were various backgrounds including one of our own. Our hearts and prayers should go out to the families of the victims who still mourn the untimely deaths of their loved ones. I remember reading the story of one of countrymen who was killed in one the planes that was hijacked. He was returning from the old country after visiting his families there. May he and the rest of the victims rest in eternal peace!!! Comments are closed.

Korean Government Commits $2 Billion Financing for Ethiopian Projects

Korean Government Commits $2 Billion Financing for Ethiopian Projects Addis Ababa, Ethiopia – The Korean government has agreed to provide $2 billion in financing for eight key development projects in Ethiopia over the next two years. This funding will be facilitated through Korea’s Economic Development Cooperation Fund (EDCF) via its executive agency, EXIM Bank. The announcement comes after the Ethiopian government, on May 21, 2024, submitted a list of priority projects to be financed under the EDCF. After extensive discussions between EXIM Bank and the Ethiopian Ministry of Finance, eight projects were selected to be implemented within the two-year period. Jung Kang, the Korean Ambassador to Ethiopia, commented on the agreement, emphasizing that the Ethiopian government has the prerogative to detail each project. The focus areas include infrastructure development, healthcare facilities, and electricity transmission lines. “The Ethiopian government provided us with a list of projects they seek loans for. However, this agreement builds on a memorandum of understanding signed during Prime Minister Abiy Ahmed’s visit to Korea, which allows the Korean government to lend up to $10 billion to Ethiopia over five years. This amount may be increased if more projects that align with our goals are presented,” Ambassador Kang stated. He highlighted that the two governments must first finalize the specifics of each project before financing can be disbursed. During a recent visit by a Korean government delegation to Addis Ababa, the projects were discussed in detail. The delegation and Ethiopian representatives agreed on new project designs, committing to provide up to $1 billion per year in financing. Ambassador Kang also clarified that the financing from Korea to Ethiopia would primarily come in the form of loans, with additional support provided through joint ventures. The Ministry of Finance indicated that transportation and energy sectors would be key areas for Korean investment, with a particular emphasis on the Bus Rapid Transit (BRT) project, which is part of Ethiopia’s push to improve public transport. This major financing agreement further strengthens the longstanding economic ties between Korea and Ethiopia, with a shared commitment to boosting Ethiopia’s infrastructure and energy capabilities.

Ethiopia’s Upcoming Salary Increase Set to Launch on September 11

Ethiopia’s Upcoming Salary Increase Set to Launch on September 11 A letter from the Ministry of Finance confirms that one of the key promises of the government’s macroeconomic reform—a wage increase—will take effect on September 11, 2024. Over the past few hours, an image of a letter purportedly from the Ministry of Finance, along with a calculation showing the new salary scale, has been widely shared on social media. The letter, signed by Finance Minister Ahmed Shide, was addressed to the Prime Minister’s office, with a copy sent to the Civil Service. The letter and salary scale indicate that more than 91.4 billion birr has been allocated for the salary increase, which will be implemented starting September 1. The Ministry of Finance and the Civil Service Commission have submitted the proposed salary increase to the Council of Ministers for approval. According to the new salary structure, individuals earning 1,100 birr will see their salary increase by 332 percent, bringing their total income to 3,660 birr. Meanwhile, those with higher earnings, such as those receiving 20,468 birr, will see a 5 percent increase, raising their salary to 21,491 birr.

Ethiopian Development Bank President Dr. Yohannes Ayalew Submits Resignation

Ethiopian Development Bank President Dr. Yohannes Ayalew Submits Resignation Dr. Yohannes Ayalew, who has served as the president of the Ethiopian Development Bank (DBE) for the past four years, has officially submitted his resignation, according to media reports. His departure marks the end of a tenure during which he introduced several reforms aimed at improving the bank’s operations. However, the bank has also faced criticism for not ensuring equitable distribution of resources across the country during his leadership. Following his resignation, Mr. Getachew Waqe has been appointed as the interim president, stepping in to manage the institution while a permanent replacement is sought. Dr. Yohannes’ appointment as DBE president began on September 12, 2020. He succeeded Haileyesus Bekele, who had resigned two days prior. Dr. Yohannes, previously the vice governor and chief economist of the National Bank of Ethiopia (NBE), was also an executive director at the Ethiopian Development Research Institute. Before assuming the top executive position at the Development Bank, he had to leave his role on the board of directors. It is worth noting that Yohannes’ appointment followed a pattern in which former NBE vice governors have taken on the leadership role at DBE, as evidenced by Getahun Nana’s tenure as the bank’s president before Haileyesus Bekele. The DBE has been struggling with high levels of non-performing loans (NPLs), particularly from loans disbursed to commercial farms in Gambella. Despite improvement, the NPL ratio stood at 25% in the last fiscal year, down from 40% the previous year. Under the leadership of Tegegnework Gettu, the bank’s board, in collaboration with management, developed a five-year reform plan designed to shift the source of finance from the central bank to bond bills and development partner funding. With Dr. Yohannes’ resignation and the appointment of Mr. Getachew Waqe as interim president, the future leadership of the DBE remains uncertain, as the bank continues to implement reforms aimed at addressing its longstanding financial challenges.