NBE’s New Circular: A Threat to Access to Finance and Investment

NBE’s New Circular: A Threat to Access to Finance and Investment By Tsegamlak Solomon The National Bank of Ethiopia (NBE) recently issued a circular on the legality of interest-bearing private loans, which will have a significant implication on access to finance and investment in Ethiopia. In the circular dated October 08, 2023, the NBE, in a far-fetched argument, equated “lending with interest” with “providing banking business without a license” and declared interest-bearing private loans to be illegal. Theoretically, investors may structure their investments in different ways. Debt and equity are the major ones. There are also hybrid structures, such as convertible debts, that combine the elements of both debt and equity. The choice of investment structure depends on the stage of the investee and the risk tolerance of the investor. It is common practice in different jurisdictions for investors to manage their risks through adopting different investment structuring tools. This is an important risk management strategy for investors to protect their capital. In Ethiopia, however, investors never had that luxury. The only viable option for investors to structure their investments is in the form of equity. Although debt seemed like an option from the outset, there were two major restrictions against debt structuring. Foreign Loan: The NBE has a special regulation dealing with foreign/external loans. This directive requires all external loans to be approved with the NBE before being entered. Not every business is eligible to get such financing. Either it needs to be an exporter, a foreign investor, or a business engaged in the manufacturing sector. The terms of this loan are also not freely negotiated between the parties, the rate of interest, other fees, and expenses on such loans cannot exceed six months LIBOR Plus 2% for foreign loans with maturity periods of up to 3 years; six-month LIBOR Plus 3% for maturity period between 3-5 years; and six-month LIBOR Plus 5% for loans with a maturity period of 5 years and above. Domestic Loan: the legal stand on domestic loans was not clear. The only provision related to peer-to-peer loans was the provisions of the Civil Code, which under Article 2479 provides that parties to a loan agreement cannot stipulate a rate of interest exceeding 12% per annum. The recently enacted Commercial Code also provides for the use of debentures as a means of finance only for share companies. These restrictions were raised in the past as bottlenecks on investors’ structuring options and practically take debt structuring out of the equation for investors (both domestic and foreign). This is especially true when we take into consideration the macroeconomic situation of the country. With the inflation rate standing close to 30% and banks’ average lending rate set above 20%, there is no economic merit in private investors operating under the above restrictions. Aggravating all of this, NBE’s recently issued circular that criminalizes interest-bearing private loans makes it even more impractical to use debt as a structuring tool. What are the Potential Impacts of this NBE Circular? A Threat to Access to Finance for Start-ups and SMEs – The government has been working on different reform measures to improve access to finance for start-ups and SMEs. The gap is mainly attributed to the inaccessibility of formal banking finance to this segment of the economy. The position of the NBE with the issuance of this circular is particularly going to affect start-ups and SMEs, as they often have difficulty qualifying for loans from traditional financial institutions. Impact on Investors – The NBE’s circular will also have a negative impact on investment in Ethiopia. Private investors often play an important role in providing financing to startups and SMEs. If investors are not allowed to structure their investments in any other form than equity, it could discourage investment in these companies due to the high risks associated with such investments. Encouraging Black Market Lending: Businesses that would need to finance themselves one way or another will likely turn to black market lenders, which typically charge high interest. This could ruin several businesses and force them to go out of business. Conclusion Overall, as reflected in the circular, it seems like NBE has taken a stand that protects the interests of the banking sector in the interest of the investment community. Businesses’ ability to access finance is correlated with a functioning regulatory framework that connects businesses with lenders and investors willing to take a risk. The country’s regulatory framework needs to be attractive to investors in terms of ensuring a variety of financing options, including debt, equity, and hybrid financing structures. In this regard, we expect a number of positive measures from the Ethiopian Capital Market Authority (ECMA) that will counter the effects of such circulars in terms of: Streamlining the regulatory framework for debt and equity instruments: The ECMA should make it easier for businesses to issue debt and equity securities by streamlining the regulatory process and reducing regulatory costs. Promoting other financing instruments that are tailored to the needs of Ethiopian businesses: The ECMA can play a role in developing and promoting specific financing instruments, such as asset-backed securities and other structured finance products, that are tailored to the needs of Ethiopian businesses. These products can help mobilize capital from domestic and international investors and provide businesses with access to a wider range of financing options. By taking these measures, the ECMA can help to make Ethiopia’s regulatory framework more attractive to investors and ensure that businesses have access to the financing they need to grow and thrive.

Ethiopia Hosts Enkopa Summit, a Celebration of Innovation

Ethiopia Hosts Enkopa Summit, a Celebration of Innovation On October 12 and 13, 2023, the Enkopa Summit was held in Addis Ababa, Ethiopia. The summit was a two-day event that brought together entrepreneurs, investors, policymakers, and other stakeholders from across the country and around the world to celebrate and promote entrepreneurship, innovation, and technology in Ethiopia. The summit featured a variety of speakers and panelists, including government officials startup founders, and investors. Attendees had the opportunity to learn about the latest trends in Ethiopian tech, network with other entrepreneurs and investors, and attend workshops and panels on a variety of topics, including startup fundraising, product development, and marketing. The Enkopa Summit a catalyst for change The Enkopa Summit is more than just a conference. It is a platform for entrepreneurs, investors, and policymakers to come together and collaborate on building a better future for Ethiopia. The summit is also a way to showcase the country’s thriving tech ecosystem to the world. The Enkopa Summit is important for a number of reasons. First, it helps to connect entrepreneurs with the resources they need to succeed. This includes access to investors, mentors, and other experts in the field. Second, the summit helps to create a sense of community among entrepreneurs. This is important because it gives entrepreneurs a place to network, share ideas, and collaborate on projects. Third, the summit helps to promote entrepreneurship and innovation in Ethiopia. This is important because entrepreneurs are the engine of economic growth. The Enkopa Summit is still in its early stages, but it has the potential to become a major event in the African tech calendar. The summit is well-organized and features a high-quality lineup of speakers and panelists. The summit also has the support of the Ethiopian government, which is committed to supporting entrepreneurship and innovation. Empowering the Entrepreneurial Ecosystem Enkopa Summit provided a platform for aspiring entrepreneurs to showcase their ideas, connect with mentors, and seek funding opportunities. The event featured startup pitch competitions, where young innovators presented their business concepts to a panel of seasoned investors and industry experts. This interaction provided valuable feedback and opened doors for potential collaborations and partnerships. Additionally, the summit hosted a variety of workshops, panel discussions, and keynote speeches on topics such as fundraising, product development, and marketing. These sessions provided entrepreneurs with the skills and knowledge they need to succeed in the competitive startup landscape. Fostering a Culture of Innovation The summit also emphasized the importance of innovation in driving economic growth and addressing social challenges. Experts from across the globe shared insights on how emerging technologies such as artificial intelligence, blockchain, and renewable energy can be harnessed to create new solutions and improve the lives of Ethiopians. The summit’s focus on innovation aimed to foster a culture of problem-solving and encourage participants to think outside the box. Promoting Global Collaboration The Entrepreneurship, Innovation, and Tech Summit attracted international attention, drawing participants and speakers from diverse backgrounds. Renowned entrepreneurs, venture capitalists, and tech leaders from Silicon Valley, Europe, and Africa converged to share their experiences and expertise. This global collaboration facilitated knowledge exchange, peer learning, and networking opportunities. It also highlighted Ethiopia’s growing significance as a destination for investment and entrepreneurship in Africa. Looking ahead The future of entrepreneurship, innovation, and tech in Ethiopia is very bright. The country has a young and growing population, a rapidly developing economy, and a government that is supportive of entrepreneurship. In addition, Ethiopia is home to a number of universities and colleges that are producing a new generation of tech-savvy graduates. The Enkopa Summit is just one example of the many initiatives that are underway to promote entrepreneurship, innovation, and tech in Ethiopia. Other initiatives include startup accelerators, incubators, and investment funds. These initiatives are helping to create a supportive environment for entrepreneurs to start and grow their businesses. With the continued support of the government and the private sector, Ethiopia has the potential to become a major hub for entrepreneurship, innovation, and tech in Africa.

Empowering Tech Innovation and Nurturing Lucrative Tech Careers: RiseBack Expands to Ethiopia

Empowering Tech Innovation and Nurturing Lucrative Tech Careers: RiseBack Expands to Ethiopia Rise N Start Ignite, Ethiopia’s First Student Startup Pitch Competition Addis Ababa/USA RiseBack.org, the World’s 1st affordable education platform to empower students and professionals to foster creativity, problem-solving, and cross-disciplinary collaboration, catalyzing Ethiopia’s journey to becoming a tech-driven economic powerhouse. Leading the way is Rise N Start Ignite, Ethiopia’s pioneering Startup Pitch Competition for students. This competition, hosted by RiseBack.org, is set to shape Ethiopia’s youth into tech trailblazers and emerging startup leaders, in alignment with the Ethiopian government’s vision of fostering innovation-driven economic growth. Participants are encouraged to tackle challenges in sustainable development, HealthTech, Agritech, EV, and AI, inspiring them to craft inventive solutions. What sets Rise N Start Ignite apart is its inclusivity – it’s open to both individuals and groups with no application fees, inviting students from schools and universities to participate. The brightest minds stand not only to gain certificates but also to attract potential funding for their visionary concepts. •       Hackathon Event: January 19th-20th, 2024 •       Location: Addis Ababa •       Application Deadline: January 10th, 2024 •       No Application Fees Affordable IT Education and Training: Igniting a Tech Revolution RiseBack.org recognizes the pivotal role of accessible IT education and training in molding the next generation of tech leaders. By democratizing technology education, RiseBack.org seeks to equip Ethiopian youth with the knowledge and skills necessary to establish startups, create high-paying jobs, and drive economic growth. “Ethiopia, the best-performing African country, has set its sights on the IT and startup industry, recognizing that this focus could be a game changer,” said Zebib Sultan, RiseBack Ethiopia. “Technology, the cornerstone of our economy, is central to our vision, and with Rise N Start Ignite, we aim to empower our youth to become entrepreneurs and technopreneurs, potentially positioning Ethiopia as a leading tech hub in Africa.” Recent years have seen Ethiopia’s economic progress fueled by a thriving startup ecosystem and a rapidly expanding internet economy. In 2022, Ethiopia’s startup ecosystem secured a prominent position in the African region. It is swiftly gaining ground in terms of innovation and entrepreneurship. Fostering Tech Entrepreneurship and Startup Ecosystems Rise N Start Ignite is set to unleash a realm of opportunities for Ethiopian youth. By promoting innovative problem-solving and collaboration, the competition nurtures the spirit of entrepreneurship. Affordable IT education equips participants with the skills not just to be job seekers but to create startups that drive the tech ecosystem forward. Dr. Tausif Malik, Founder of RiseBack.org, emphasized, “Ethiopia’s brighter future lies in the hands of our youth. By offering affordable IT education and training, we are nurturing a new generation of tech-savvy entrepreneurs and innovators. Our aim goes beyond personal growth; it aligns with the Ethiopian government’s vision of a prosperous future driven by innovation.”Expanding to Multiple Cities In addition to our launch, RiseBack Ethiopia is committed to reaching youth beyond the capital. We plan to host the Rise N Start Ignite competition in other Ethiopian cities, providing young talents nationwide with opportunities for growth and innovation. Ethiopia Startup Ecosystem Ethiopia has made its mark in the Global Startup Ecosystem Index, securing a position in the top 100 for the first time and climbing five spots. This accomplishment reflects Ethiopia’s vibrant startup ecosystem and its recognition on the global stage. Notably, according to Startupblink, there are several private sector organizations actively assisting entrepreneurs in Ethiopia’s business environment. What sets Ethiopia apart is the unique trend of the Ethiopian diaspora returning to the country to champion digitalization and economic modernization. They are granted special permits by the government to invest and operate in the country, further fueling the growth of the Ethiopian startup ecosystem. The startup ecosystem overview with a population of over 122 million people shows Ethiopia as a huge untapped market for entrepreneurs to satisfy, especially as it transitions to a more digital economy. However, to secure and keep its rank for the next year Ethiopia has a lot to do. RiseBack.org’s expansion is a call to action for businesses, institutions, and government bodies to unite in building a brighter future for Ethiopia. By investing in the youth and providing them with the tools to excel, RiseBack.org is paving the way for a tech-powered renaissance. For more information about RiseBack.org, the Rise N Start Ignite Pitch Competition, and partnership opportunities, please visit www.RiseBack.org/events/Ethiopia About RiseBack.org: RiseBack.org is a pioneering organization dedicated to empowering youth through innovation, mentorship, and experiential learning. By fostering a culture of creativity and collaboration, RiseBack.org aims to equip the next generation of leaders with the skills and mindset needed to drive positive change. For media inquiries, please contact: Zebib Sultan RiseBack Ethiopia Telephone/WhatsApp +251911428980+251919879517 Email: zebib@riseback.org Dr. Tausif Malik Founder RiseBack Telephone/WhatsApp: +17735369786 Email: tausif@riseback.org

Reliance on Djibouti Port is Unsustainable due to Outrageous Costs and illegal practices and embezzlement practices at the highest level.

Reliance on Djibouti Port is Unsustainable due to Outrageous Costs and illegal practices and embezzlement practices at the highest level. Djibouti’s president Ismail Omar Guelleh. © Tiksa Negeri/Reuters By – Nigist Berta At present Ethiopia’s imports and exports mainly pass via the port of Djibouti. Reliance on Djibouti has proved costly and unsustainable, however, leading Addis to search for alternatives. Djibouti is where USAID stores these items for its food assistance programs so it was vital to keep the warehouses fully stocked. But last week, a spokesperson at the time said USAID had determined, in coordination with the Ethiopian government, that a “widespread and coordinated campaign is diverting food assistance from the people of Ethiopia. Investigations are ongoing and those come on the back of Pangea-Risk report statement last month, that the strategically important Port of Djibouti has grown into a hotbed of rampant corruption, particularly at the highest echelons of the port’s administration. In our investigation conducted by well-placed intelligence sources, the port’s chairman, Aboubaker Omar Hadi, has been named multiple times as being at the centre of these alleged corrupt practices. These findings are coming to light at the same time as a significant legal development in the United States’ District of Columbia Court , Judge Beryl A. Howell denied the Republic of Djibouti’s request to quash subpoenas targeting 10 banks on September 21, 2023. This ruling, part of Miscellaneous Action No. 2383, has far-reaching implications for the unfolding embezzlement scandal in Djibouti. The subpoenas were initiated by global port operator DP World, which is seeking to enforce a $485 million arbitration award against the Republic of Djibouti. The award stems from a dispute over the termination of a concession agreement between DP World and the Djibouti government. The subpoenas target assets exceeding $25,000 that are associated with the Djiboutian state, entities linked to the Republic of Djibouti, or immediate family members of President Ismael Omar Guelleh. The asset search covers transactions and holdings from July 1, 2012, up to the present. Judge Howell’s decision is a major victory for DP World and a blow to the Djiboutian government’s attempts to obstruct the legal process. It also opens the door to the possibility that DP World may be able to seize assets belonging to the Djiboutian government or its officials. Of particular significance is the discovery, through Barclays API, of a staggering 338 entities directly linked to the Republic of Djibouti. Spanning various categories, these findings suggest that the Djiboutian government may be using a complex network of shell companies to obscure its ownership of assets. DP World’s pursuit of this legal action is a courageous stand against corruption and impunity. The company’s commitment to upholding the principles of fairness, transparency, and accountability in international trade and business relationships is commendable. The outcome of this case will be closely watched by the international community. If DP World is successful in enforcing the arbitration award and seizing assets belonging to the Djiboutian government or its officials, it would send a strong message that corruption will not be tolerated. It would also set a precedent for other companies and individuals who have been wronged by corrupt governments. The Djibouti embezzlement scandal is a reminder of the importance of fighting corruption and upholding the rule of law. It is also a reminder that even if the country is the largest military landlord, governments can be held accountable. Analysis and Implications Judge Howell’s ruling is a significant development in the fight against corruption. It sends a strong message that even powerful governments will not be immune from scrutiny. The ruling also underscores the importance of post-judgment discovery in uncovering hidden assets and exposing corruption. The discovery of 338 entities directly linked to the Republic of Djibouti is particularly noteworthy. This suggests that the Djiboutian government may be using a complex network of shell companies to obscure its ownership of assets. This type of money laundering is a common tactic used by corrupt officials to hide their ill-gotten gains. If Africa wants to send a greater message to foreign investors, it needs to stand by international laws. The company is standing up for its rights and seeking justice against a corrupt government. DP World’s actions also send a strong signal to other companies and individuals that they will not be intimidated by corrupt governments. The outcome of this case will have far-reaching implications for the future of Africa as it struggles to gain investor confidence for its larger than life projects in the energy sector and internal infrastructure development for its inter-continental trade. “This news also comes at the time, when The African Development Bank has admitted that a $55mn integrity fund launched with great fanfare seven years ago has still not been put into operation and has not disbursed any money on its stated anti-corruption purpose.” President of AfDB Adesina continues to press that “The issue is we have to invest right; we have to make sure the governance environment is right …. “ but who can one trust to do the check and balances.

Forex trading: A risky path to riches for Ethiopian youth

Forex trading: A risky path to riches for Ethiopian youth By Micheal Legesse In the grand theatre of global finance, forex trading takes centre stage as a colossal and tempestuous sea. It’s a realm where the world’s currencies ebb and flow like capricious tides, and every rise and fall can spell fortune or ruin for those daring enough to navigate its waters. In the hands of skilled traders, currencies become their playing cards, and they perform astonishing feats of profit-making, seemingly out of thin air. It’s a world where immense profits and devastating losses coexist, where financial dreams are born and, at times, shattered. The allure of forex trading casts a powerful spell, and it has not spared the young and ambitious souls of Ethiopia. They are drawn to the promise of financial freedom and the allure of quick wealth, believing they can turn the tide of their financial destinies with a few clicks of the mouse. A Quick Glimpse into Forex Trading Forex trading, also known as currency trading, is the buying and selling of currencies on the foreign exchange market. It is the largest financial market in the world, with a daily trading volume of over $5 trillion. Picture this: a marketplace where currencies, the lifeblood of the global economy, engage in a perpetual dance of gains and losses. Forex trading is where astute traders take centre stage to predict the future of these currency pairs. They’re the navigators, trying to steer a ship in a storm, betting on currencies either gaining momentum (going long) or plunging into a downward spiral (going short). The Magnetic Allure of Forex Trading Now, why on earth would young Ethiopians, or anyone else for that matter, be drawn to this financial frenzy? Well, it turns out there are a few siren songs leading them astray. In a world where cat videos and epic fails are just a scroll away, it’s no surprise that forex trading has become a spectator sport. Platforms like YouTube and TikTok have opened the doors to forex education like never before. Influencers don the hats of modern-day wizards, promising easy riches, and leaving young Ethiopians starry-eyed with dreams of financial freedom. Ever dreamed of partaking in a high-stakes game with nothing but pocket change? Forex trading grants that wish. With as little as $100 dollars deposit, anyone can jump into the ring and try their luck. Barrier to entry to forex trading is almost nonexistence and hence the reason for its popularity. Peer Pressure is also another factor. Just as schoolmates might nudge you into trying the latest trend, friends and family oGen set sail together in the world of forex. The allure of joining the crew is strong, as it offers a sense of belonging and shared excitement. Forex trading also carries an air of prestige. It symbolizes success and wealth. Who wouldn’t want a slice of that pie? And of course, the bliss of the digital age has bestowed a great giG upon aspiring traders – accessibility. With an internet connection and a fraction of sum, anyone, from Addis Ababa to the far corners of Ethiopia, can enter this global financial arena. The Perils of Forex Trading – Are You Ready for the Ride? Alas, the rocky shores of the forex market await those who dare to venture. This ocean is not for the faint-hearted, and as many experienced traders will tell you, most voyages end in a shipwreck. But what is it that makes forex trading so perilous particularly in the context of Ethiopian traders. The Brokerage Abyss One of the glaring challenges Ethiopian traders face in the world of forex is the absence of local forex brokers. Unlike more established financial markets, where traders can turn to domestic brokerage firms regulated by their government, Ethiopian traders have to set sail into uncharted waters. In the absence of local brokerage firms, they must rely on brokers operating in the parallel market, oGen of uncertain repute. It’s akin to embarking on a perilous voyage without a reliable compass. These unverified brokers might not adhere to the same standards and regulations as their established counterparts. As a result, traders entrust their funds to entities with uncertain backgrounds and practices, putting their financial fate in precarious hands. The Unprotected Deposit In the forex trading world, the safety of your investment oGen hinges on the broker’s commitment to segregating client funds. Reputable brokers typically create separate accounts for their clients’ money, ensuring that even in the stormiest of financial waters, your investment remains safe. However, this safeguard is not universal, and some brokers disregard this practice. So, imagine you’ve entrusted your hard-earned money to a broker who lacks the integrity to protect your funds in a dedicated account. If the broker encounters financial turbulence or declares bankruptcy, your money is gone forever. Market Maker Brokers – The Casino of Currency A specific type of broker, known as a market maker, operates on a model where they essentially place bets against their clients. In essence, they are your gambling partner at a casino, and the house, or in this case, the broker, has the upper hand. These market maker brokers don’t operate with the sole intention of scamming you. Instead, they make their profits from the spread, which is the difference between the buying and selling prices of currency pairs. The wider the spread, the more money the broker pockets. So, it’s like stepping into a casino where the house always wins, and it’s only a matter of time before the odds tip against you. The essential point to understand here is that while market maker brokers are not inherently dishonest, their business model introduces a natural conflict of interest. They are trading against their clients, which means if you profit, they lose, and vice versa. It’s a setup where the broker’s interests and your own are inherently at odds. Placing Your Trust in False Prophets – The Dark Side of Forex Trading The most perilous twist in the forex trading journey is when aspiring traders, oGen out of desperation for quick wealth, put their trust in individuals who claim to be successful traders on platforms like  YouTube and TikTok. These charismatic characters, with promises of abundant riches, can lure in unsuspecting investors, creating a false sense of security. In the hopes of seeing their investments multiply rapidly, investors surrender their hard-earned money to these self-proclaimed trading gurus, only to realize later that they’ve entrusted their financial fate to a mirage. It’s like following the advice of a street magician who promises to turn your pennies into dollars, only to see your money vanish into thin air. The risks of this approach are manifold. First and foremost, the promised returns oGen prove elusive, with many investors experiencing financial losses. In some cases, these so-called traders might simply take the money and disappear, leaving investors with empty pockets and dashed dreams. It’s a bit like falling for a grand illusion in a magician’s show, only to find that the rabbit never returns from the hat. But there’s an even darker twist to this tale – the Ponzi scheme. Imagine a scenario where a seemingly successful trader promises you astronomical returns on your investment. They boast about their prowess in the forex world, showing off impressive numbers and flashy lifestyle on social media. It’s as if they have a magical touch, turning every dollar into a golden goose. At first, you might be sceptical, just as you’d question whether a magician can truly saw a person in half. But then the promised returns start rolling in. You see others around you reaping the benefits and receiving their initial investments back with generous profits. The word spreads, and more and more people eagerly pour their hard-earned money into the scheme. The success of a Ponzi scheme relies on the cash flows from new investors. The early investors receive their returns, but those profits are essentially funded by the contributions of newcomers. It’s like a pyramid scheme, where those at the top reap the rewards from those below. But here’s the catch – this can’t go on forever. Just like a magician’s trick, it’s all smoke and mirrors. The scheme inevitably collapses, and when it does, it leaves a trail of financial devastation. Those who joined later are leG with empty pockets, their dreams of quick wealth shattered. It’s the classic tale of an illusionist’s final act, where the curtain falls, and the audience is leG in shock. In conclusion, the temptation of trusting self-proclaimed forex trading gurus, whether they operate a Ponzi scheme or not, is fraught with danger. The allure of quick riches can lead to impulsive financial decisions, oGen resulting in significant losses. It’s imperative for aspiring traders to approach such individuals with extreme caution and scepticism. In the world of forex trading, as in the world of magic, what seems too good to be true usually is, and falling for an illusion can have dire consequences. So, here we are, having journeyed through the world of forex trading. It’s an enticing, high-octane journey, but the risks are as real as the rewards. The allure may be powerful, but for every triumphant trader, there’s a tale of countless others who’ve been leG shipwrecked. In an upcoming article, we’ll chart a course for minimizing these risks if you’re determined to sail these waters. But it’s important to remember that there’s no magic potion for financial success. Diversification, value investing, and a mix of long term and short-term trading in equities and forex may be the safest course to navigate the turbulent sea of financial markets. If it were smooth sailing, all the big money managers would be joining the journey, but they’re not. In the end, forex trading is not for the faint-hearted, and it’s crucial to tread these waters with caution. Micheal Legesse, ACCA MBA Active Investor, Consultant and Dad Tags binance ethiopian news exness

Enkopa Summit Ignites Transformation in Ethiopia through Entrepreneurship, Innovation, and Tech

Enkopa Summit Ignites Transformation in Ethiopia through Entrepreneurship, Innovation, and Tech Addis Ababa, Ethiopia – October 12, 2023 – Enkopa Summit, an unprecedented industry event centered around entrepreneurship and innovation, inaugurated today in Addis Ababa, Ethiopia. Under the authority of the Ministry of Labor and Skills, pioneered by Laurendeau & Associates and organized by Flawless Events, this highly anticipated summit aims to redefine Ethiopia’s economic growth through engaging panel discussions, visionary keynotes, demonstrations of enterprise best practices, and exclusive investor dialogues. Enkopa Summit is taking place for two consecutive days at the Millennium Hall in Addis Ababa, providing a platform for exploration and collaboration in Ethiopia’s dynamic business and technology landscape. Enkopa Summit recognizes the urgent need for transformative action and aims to drive Ethiopia into a new era of prosperity by aligning with the demands of its growing population, the aspirations of its youth, and external economic pressures. By bringing together local and regional decision-makers, experts, innovators, investors, and corporate leaders, Enkopa Summit serves as a catalyst for purpose-driven conversations that will shape Ethiopia’s economic transformation. Enkopa Summit offers a comprehensive program covering a wide range of topics while providing valuable networking opportunities. The event aims to facilitate connections and collaborations, catalyzing the creation and acceleration of ventures that will reshape Ethiopia and contribute to the growth of the entire African continent. With a notable lineup of participants, speakers, and exhibitors representing diverse decision-makers, professionals, and visionaries, Enkopa Summit stands as a testament to Ethiopia’s dedication to driving meaningful change. ### About Enkopa Summit: Enkopa Summit is an annual industry event designed to constantly inject innovation, tech, and collaboration in entrepreneurship within Ethiopia and the East-Africa region. It brings together a diverse group of decision-makers and stakeholders, including industry leaders, entrepreneurs, founders, technology innovators, startups, high-level government representatives, and investors. Enkopa Summit is under the authority of the Ministry of Labor and Skills, pioneered by Laurendeau and Associates, and organized by Flawless Events, under the authority of the Ethiopian Ministry of Labor and Skills. For more details, please visit [https://www.enkopasummit.com/] About Laurendeau and Associates: Laurendeau & Associates is a Management Consultancy whose purpose is to advance the power of digital to create lasting socio- economic impact in emerging economies. L&A provides strategic advisory to decision makers in the private sector as well as for governmental and international development institutions. [www.laurendeau&associates.com]. About Flawless Events: Flawless Events is an international event & destination management agency that specializes in end-to-end design and production of international conferences, special corporate events and brand activations. Our office is based in Addis Ababa, Ethiopia while our clients span an expansive spectrum of industries and countries. For more information, please visit [www.flawlessevent.com]. For media inquiries, please contact our PR partner 251 communications via nigist@251communications.com +251-919-15-22-97

Can Forex Trading Help Ethiopia’s Youth Achieve Financial Freedom?

Can Forex Trading Help Ethiopia’s Youth Achieve Financial Freedom? By- Beakal Anlye Introduction Hey there did you fail your university entry exam? are you feeling sad about the state of your life, lack of jobs, and whatnot? then forex trading may just be the thing for you. In recent years a new trend has been seen more and more, with better access to foreign markets a new opportunity is being pursued by many young Ethiopians one of them being the foreign exchange market, or forex for short. With the introduction of a revised education system which in itself came with harder exams primarily when it comes to university entrance and exit exams, more and more young people are seeking a second shoot at life. With the release of this year’s university entrance exam grades, we wanted to do a run down for what foreign exchange trading is and, In this article, we will explore the landscape of forex trading in Ethiopia, its opportunities and challenges, and provide a comprehensive overview for those interested in venturing into this exciting market. What is forex exactly? Forex trading is the act of buying and selling currencies with the aim of making a profit. It is a decentralized market where currencies are traded 24 hours a day, five days a week. Forex trading is done through a broker, who provides access to the market and allows traders to buy and sell currencies. The forex market is the largest financial market in the world, with an average daily trading volume of $6.6 trillion 1. Forex trading involves speculating on the price movements of currency pairs. A currency pair is a pair of currencies that are traded against each other. For example, the EUR/USD currency pair represents the euro and the US dollar. If a trader believes that the euro will appreciate against the US dollar, they will buy the EUR/USD currency pair. If they believe that the euro will depreciate against the US dollar, they will sell the EUR/USD currency pair 2. Forex trading can be risky, as currency prices can be volatile and unpredictable. However, it can also be highly profitable for those who are able to make informed decisions based on market analysis and economic indicators. Forex trading, has gained significant popularity worldwide as a means of financial investment. Ethiopia has also witnessed a surge in interest and participation in forex trading in recent years. As with cryptocurrencies, Forex trading has seen an unprecedented spike in numbers across Africa in the last year or so, also bolstered by fast internet and adopted by a largely young demographic interested in new and entrepreneurial means of making a living. By June 2020, Forex trading had increased by a whopping 477%, and was seen largely to be the result of the Forbes Africa The Growth of Forex Trading in Ethiopia Ethiopia’s economy has been  attracting foreign investors and fostering an environment conducive to business opportunities. This growth, coupled with advancements in technology and increased internet penetration, has contributed to the rise of forex trading in the country. Previously, forex trading was limited to financial institutions and large corporations, but now, individual investors can participate in the market through online platforms and brokers. Regulations and Legal Framework The National Bank of Ethiopia (NBE) is the regulatory authority responsible for overseeing the forex market and implementing policies to ensure stability and protect investors. Forex trading in Ethiopia is subject to regulations that govern the inflow and outflow of foreign currency, as well as the licensing and operation of forex brokerage firms. It is crucial for traders to adhere to these regulations and work with licensed brokers to ensure the legality and security of their investments. Challenges and Risks Market Volatility: While volatility can be advantageous, it also comes with risks. Sudden and unexpected market movements can result in substantial losses, especially for inexperienced traders. Comprehensive market analysis, risk management strategies, and a disciplined approach are essential to navigate the inherent volatility successfully. Lack of Education and Awareness: Forex trading requires a solid understanding of market dynamics, chart analysis, and risk management principles. The lack of accessible educational resources and the prevalence of misinformation can hinder traders’ ability to make informed decisions. Aspiring traders should invest time in learning and seeking guidance from reputable sources or forex training programs. Regulatory Compliance: Adhering to the regulations imposed by the NBE is crucial for traders. Failure to comply with the legal requirements can result in penalties, financial loss, or even legal consequences. It is vital to work with licensed brokers and stay updated with any changes in regulatory frameworks. Conclusion Forex trading in Ethiopia presents a promising avenue for individuals seeking financial opportunities beyond traditional work. With a growing economy and advancements in technology, the country is witnessing increased participation in global financial markets. However, it is important for aspiring traders to conduct thorough research, seek education and guidance, and ensure compliance with relevant regulations. By approaching forex trading with a disciplined mindset and a commitment to continuous learning, Ethiopian investors can unlock the potential of this dynamic and lucrative market. Tags bitcoin exness forex trading ethiopia

Only 3.2% of Ethiopian Grade 12 Students Pass the National Leaving Exam

Only 3.2% of Ethiopian Grade 12 Students Pass the National Leaving Exam Only 3.2% of Ethiopian Grade 12 Students Pass National Leaving Exam ADDIS ABABA, Ethiopia – Only 3.2% of the students who took the 2015 Grade 12 National Leaving Examination scored more than 50%, according to the Ministry of Education. Out of 356,878 students who sat for the natural science exam, 22,974 students scored more than 50%. Out of 488,221 students who were tested in social science, 8,250 students scored more than 50%. This means that only 27,267 students scored more than 50% on the exam, or 3.2% of the total number of examinees. The highest result recorded in natural science was 649 in Addis Ababa city. In social science, 533 were registered in Debre Markos city. The minister also explained that 480 students passed the exam out of 169,000 private school examinees. This year’s pass rate is slightly higher than last year’s, when only 2.8% of students passed the exam. However, it is still significantly lower than the pass rates in previous years. The ministry has not yet released a full analysis of the results, but it is expected that the low pass rate is due to a number of factors, including poor quality of education, lack of resources, and high dropout rates. The government has pledged to improve the quality of education in Ethiopia, but it is clear that there is still a long way to go. Tags berhanu nega grade 12 ethiopia result

Enkopa Summit: Transforming Ethiopia through Entrepreneurship, Innovation, and Tech

Enkopa Summit: Transforming Ethiopia through Entrepreneurship, Innovation, and Tech Addis Ababa, Ethiopia – September 28, 2023 – In just two weeks, on October 12, the Enkopa Summit will inaugurate its unprecedented industry and thought leadership-oriented event in Addis Ababa. This highly anticipated summit is centered around the crucial themes of entrepreneurship and innovation, with a mission to redefine Ethiopia’s economic growth and it is open to all interested participants, regardless of their location or background. Pioneered by Laurendeau & Associates and organized by Flawless Events, the annual Enkopa Summit is scheduled to take place on October 12th and 13th at the prestigious Science Museum in Addis Ababa, Ethiopia. Against the backdrop of the newly inaugurated Science Museum, attendees can expect a dynamic program featuring insightful panel discussions, policy debates, visionary keynotes, enterprise use-case presentations, corporate best practices, product and program showcases, and exclusive investor dialogues. Enkopa Summit provides an invaluable platform for exploring the potential impact of cutting-edge solutions on Ethiopia’s business and technology landscape. Recognizing the urgent need for transformative action, Enkopa Summit aspires to propel Ethiopia into a new era of prosperity in line with its growing population, the aspirations of its youth, and the demands of external economic pressures. Strategically positioned at the crossroads of Sub-Saharan Africa, Ethiopia boasts strong diplomatic ties and logistical advantages, yet its potential has yet to be fully harnessed. By bringing together local and regional decision-makers, policymakers, experts, innovators, academia, investors, and corporate leaders, Enkopa Summit aims to facilitate purpose-driven conversations that will shape Ethiopia’s economic transformation. The event serves as a dynamic platform for collaboration and the exchange of ideas, with a special emphasis on the transformative power of entrepreneurship, innovation, and technology. “Entrepreneurship, innovation, and technology are not mere trends—they have the potential to revolutionize nations,” asserted Bernard Laurendeau, the managing partner of Laurendeau & Associates. “Throughout history, entrepreneurs have played a pivotal role in driving economic growth and job creation worldwide. It is imperative for Ethiopia to nurture its own ecosystem of dreamers, thinkers, innovators, and doers,” he emphasized. As Ethiopia’s largest all-inclusive industry event dedicated to entrepreneurship, innovation, and technology, Enkopa Summit covers a wide range of topics while creating valuable networking opportunities. By encouraging connections and collaborations, the summit aims to catalyze the creation and acceleration of ventures that will reshape not only Ethiopia but the entire African continent. With an impressive lineup of participants, speakers, and exhibitors representing diverse decision-makers, experienced professionals, and visionaries, Enkopa Summit stands as a testament to Ethiopia’s dedication to driving meaningful change. “We are fully committed to delivering a high-quality summit that rivals major international events,” declared Yoadan Tilahun, the founder of Flawless Events. “Enkopa Summit eliminates additional expenses like travel, accommodation, and visas, offering attendees a world-class experience right here in Addis Ababa, making it accessible to the local community,” she added. Targeting a 40% participation rate from international attendees, Enkopa Summit aims to not only transform Ethiopia but also contribute to the growth of Addis Ababa. The economic impact of the summit is expected to further fortify the city’s reputation as a global destination for major events. ### About Enkopa Summit: Enkopa Summit is an annual industry event designed to constantly inject innovation, tech, and collaboration in entrepreneurship within Ethiopia and the East-Africa region. It brings together a diverse group of decision-makers and stakeholders, including industry leaders, entrepreneurs, founders, technology innovators, startups, high-level government representatives, and investors. Enkopa Summit is pioneered by Laurendeau and Associates, and organized by Flawless Events, under the authority of the Ethiopian Ministry of Labor and Skills. For more details, please visit [https://www.enkopasummit.com/] About Laurendeau and Associates: Laurendeau & Associates is a Management Consultancy whose purpose is to advance the power of digital to create lasting socio-economic impact in emerging economies. L&A provides strategic advisory to decision-makers in the private sector as well as for governmental and international development institutions.[www.laurendeau&associates.com]. About Flawless Events: Flawless Events is an international event & destination management agency that specializes in end-to-end design and production of international conferences, special corporate events and brand activations. Our office is based in Addis Ababa, Ethiopia while our clients span an expansive spectrum of industries and countries. For more information, please visit [www.flawlessevent.com]. For media inquiries, please contact our PR partner 251 Communications vianigist@251communications.com +251-919-15-22-97