Addis Tomorrow: The Fourth Major City Project Launched Around Gotera in Addis Ababa

Addis Tomorrow: The Fourth Major City Project Launched Around Gotera in Addis Ababa Ethiopia The construction of the Addis Tomorrow Special Economic Zone was officially launched today, with Prime Minister Abiy Ahmed (Dr.) in attendance. The project, known as the “Addis Tomorrow Special Economic Zone,” is a collaborative effort with China’s CCCC and spans 35 hectares of land. This ambitious development is akin to creating a new city within the city, featuring extensive amenities such as large shopping malls, residential apartments, offices, educational institutions, healthcare facilities, entertainment centers, water bodies, and sports complexes. The Addis Tomorrow Special Economic Zone is part of the city administration’s broader plan to transform Addis Ababa into one of Africa’s top cities within the next three to five years. This transformation plan comprises three major initiatives: 1. Public-Private Partnerships: The government is actively collaborating with the private sector to develop large-scale city-level projects. Currently, there are three major ongoing projects: the Chaka Project, the Legehar Project, and the Mohammediya Project. The Addis Tomorrow project will become the fourth major endeavor, contributing to the city’s urban renewal and expansion. 2. Corridor Projects: These projects aim to enhance the road infrastructure of Addis Ababa while incorporating green spaces, standardizing building color codes, and improving lighting. The Corridor Projects cover the following routes: 4 Kilo to Piassa Piassa to Legehar (Legehar City) Legehar to Mexico (Mohammediya City) Mexico to Wello Sefer (Addis Tomorrow) Bole to Megenagna and CMC (Chaka Project) These routes will connect the four major city projects, integrating them into the city’s overall development plan. 3. Enhancing Iconic Areas: This initiative focuses on uplifting and modernizing areas with iconic buildings. The project includes resettling tenants from shanty areas in these locations, improving living conditions, and revitalizing the city’s architectural heritage. In addition to these urban development projects, the Ethiopian government is planning to boost earnings through tourism and remittances. This strategy follows recent major reforms in the financial sector and property ownership regulations. As part of these reforms, Ethiopia has floated its currency to close the gap with the black market and attract remittance earnings through legal channels. Furthermore, the government is now allowing property ownership for foreigners to attract foreign investment in the housing sector. The Addis Tomorrow Special Economic Zone is expected to transform the city’s appearance, boost its international competitiveness, enhance its beauty, and create numerous job opportunities for residents. Additionally, it aims to promote business and become a major international shopping destination. The project also includes infrastructure to support social services and is slated for rapid completion, according to information from the mayor’s office. 4 COMMENTS Gutema Tesfaye August 15, 2024 At 6:43 pm That’s Good very amazing works Be strong I respect our countries leaders all That’s Good very amazing works Be strong I respect our countries leaders all Gutema Tesfaye August 15, 2024 At 6:46 pm That’s Good very amazing works Be strong I respect our countries leaders all. That’s Good very amazing works Be strong I respect our countries leaders all. Yohanis hailye August 16, 2024 At 11:24 am It so interesting It so interesting Feti Siraj August 16, 2024 At 5:18 pm Is nice jobs so Continues as now!! Is nice jobs so Continues as now!! Comments are closed.

Ethiopian Securities Exchange Partners with Infotech Private Limited to Launch Advanced Trading Technology

Ethiopian Securities Exchange Partners with Infotech Private Limited to Launch Advanced Trading Technology Addis Ababa, Ethiopia – In a groundbreaking move, the Ethiopian Securities Exchange (ESX) has signed two pivotal technology agreements with Infotech Private Limited, a leading global provider of capital markets technology solutions. This collaboration marks a significant milestone in the establishment of Ethiopia’s first-ever securities exchange, positioning the country to become a key player in the global financial markets. The agreements encompass the design, supply, and installation of an Electronic Trading Platform and a Broker Back Office and Order Management System. These cutting-edge systems are essential to creating a modern, efficient, and transparent capital market in Ethiopia, which will facilitate the trading of securities and enhance the overall market infrastructure. State-of-the-Art Electronic Trading Platform The new Electronic Trading Platform is poised to provide a robust, real-time trading environment that ensures market transparency, improves liquidity, and offers a seamless and secure trading experience for both local and international investors. This platform will play a crucial role in accelerating economic growth by enabling companies to raise capital more efficiently while opening new investment opportunities for the Ethiopian public. Advanced Broker Back Office and Order Management System The Broker Back Office and Order Management System will automate and streamline the operations of brokerage firms, covering critical functions such as investor client onboarding, order management, reporting, and transaction processing. This system will include mobile application and web-based interfaces that allow investors to monitor the market in real time and place orders directly. By adopting this advanced technology, brokers will benefit from increased efficiency and accuracy, while investors will gain direct market access. Leadership Perspectives Dr. Tilahun Esmael Kassahun, CEO of ESX, expressed enthusiasm about the partnership, stating, “This collaboration with Infotech Private Limited is a significant step towards realizing our vision of establishing a world-class securities exchange in Ethiopia. The technology solutions provided by Infotech will not only modernize our trading operations but also contribute to the broader development of Ethiopia’s financial sector.” Echoing this sentiment, Mr. Muhammad Haris Naseer, COO of Infotech Private Limited, remarked, “We are honored to contribute our expertise to this historic project in Ethiopia. Our commitment to delivering top-tier technology solutions aligns perfectly with ESX’s vision of a robust and vibrant capital market. We are excited to innovate alongside ESX and introduce more advanced products to the market.” About Ethiopian Securities Exchange (ESX) The Ethiopian Securities Exchange (ESX) is set to be the first securities exchange in Ethiopia, dedicated to providing a transparent and efficient marketplace for the trading of securities. As a key component of Ethiopia’s financial sector reform, ESX aims to foster economic growth and development by enabling companies to raise capital and offering investment opportunities to the public. About Infotech Private Limited Founded in 1995, Infotech Private Limited boasts three decades of experience in financial and capital market technologies. Their flagship platforms, Capizar® and Marlin®, are tailored to meet the evolving needs of exchanges, regulators, and brokerage communities. Infotech has played a pivotal role in modernizing stock exchanges and post-trade infrastructure in over 17 markets across Africa, the Middle East, and South Asia.

Ethiopia’s $1.5 Billion Gamble: How World Bank-Backed Privatization, Tax Reforms, and FX Shifts Could Transform the Economy

Ethiopia’s $1.5 Billion Gamble: How World Bank-Backed Privatization, Tax Reforms, and FX Shifts Could Transform the Economy Addis Ababa, 29 July 2024 – In a decisive move towards economic modernization, Ethiopia is undertaking a comprehensive set of reforms with robust backing from the World Bank. The global institution has approved a substantial $1.5 billion financial package, consisting of a $1 billion grant and a $500 million credit, under the Ethiopia First Sustainable and Inclusive Growth Development Policy Operation. This package is aimed at facilitating structural changes across multiple sectors of the economy, including the privatization of state-owned enterprises, reforms in Value Added Tax (VAT) policies, adjustments in electricity tariffs, and significant liberalization of the foreign exchange market. These reforms are a core component of Ethiopia’s Home-Grown Economic Reform Plan (HGER 2.0), which seeks to stabilize the macroeconomic environment, enhance private sector participation, and position Ethiopia as a competitive economy on the global stage. Strategic Privatization of Ethio Telecom: A Landmark Move At the heart of Ethiopia’s economic transformation is the partial privatization of Ethio Telecom, the state-owned telecommunications giant that has long held a monopoly in the sector. The Ethiopian government plans to divest up to 40% of Ethio Telecom’s shares, marking one of the most significant privatization efforts in the country’s history. This landmark move is anticipated to inject over $2 billion in foreign direct investment (FDI) into the Ethiopian economy. The decision to partially privatize Ethio Telecom is strategic, aimed at improving efficiency, fostering innovation, and reducing the government’s financial burden. The funds raised from this sale will be earmarked for critical infrastructure projects, particularly in telecommunications, transportation, and energy, which are vital for sustaining Ethiopia’s economic growth and meeting the demands of its rapidly growing population. Moreover, this privatization effort is expected to introduce competition in the telecom sector, leading to better services and lower costs for consumers, ultimately driving broader economic productivity. VAT Reforms: Enhancing Revenue and Expanding the Tax Base As part of its broader fiscal reform agenda, the Ethiopian government is implementing significant changes to its Value Added Tax (VAT) system. VAT, a crucial source of government revenue, is currently underperforming due to widespread exemptions and compliance issues. The government, with support from the World Bank, is set to reduce VAT exemptions and strengthen enforcement mechanisms, aiming to broaden the tax base and increase compliance. These VAT reforms are projected to boost government revenue by 1.5% of GDP, which translates to an additional ETB 60 billion (approximately $1.1 billion) annually. This increase in revenue is critical for financing Ethiopia’s ambitious development projects, including investments in health, education, and infrastructure, while also reducing the country’s reliance on external borrowing. The reforms are designed not only to generate more revenue but also to create a more equitable tax system that supports the nation’s economic growth and development goals. Electricity Tariff Reforms: Ensuring Financial and Operational Sustainability The energy sector, a key driver of Ethiopia’s industrialization efforts, is also undergoing substantial reform. The Ethiopian Electric Utility (EEU) and Ethiopian Electric Power (EEP), the state-owned entities responsible for electricity distribution and generation, are implementing tariff adjustments to reflect the true cost of electricity production and distribution. Over the next two years, electricity tariffs are set to increase by an average of 15%, a move that is expected to generate an additional ETB 30 billion (around $550 million) in annual revenue. This tariff adjustment is essential for improving the financial sustainability of Ethiopia’s energy sector, which has historically been plagued by underpricing and operational inefficiencies. By aligning tariffs with actual costs, the government aims to ensure that the utilities are financially viable and capable of maintaining and expanding the electricity grid. This is particularly important as Ethiopia continues to industrialize, with electricity demand expected to rise sharply. The additional revenue will also help attract private investment into the energy sector, which is crucial for diversifying energy sources, expanding access, and enhancing the reliability of electricity supply across the country. Foreign Exchange Reforms: Liberalizing the Market and Enhancing Competitiveness Complementing these structural reforms is a comprehensive overhaul of Ethiopia’s foreign exchange (FX) system, which has been a major bottleneck for businesses and investors. The National Bank of Ethiopia (NBE) has announced a shift to a market-based exchange rate regime, allowing banks and other financial institutions to buy and sell foreign currencies at freely negotiated rates. This reform represents a significant departure from the previous dual exchange rate system, which had created distortions and inefficiencies in the market. As part of the FX reforms, the NBE has removed the surrender requirement that previously mandated exporters to sell their foreign exchange earnings to the central bank. Exporters are now allowed to retain 50% of their foreign exchange proceeds, up from 40%, providing them with greater flexibility and incentives to reinvest in their businesses. Additionally, the introduction of non-bank foreign exchange bureaus and the removal of import restrictions on 38 product categories will further liberalize the market, making it easier for businesses to access foreign currency and engage in international trade. These FX reforms are expected to improve the availability of foreign exchange, reduce the black market premium, and enhance the overall competitiveness of the Ethiopian economy. By creating a more efficient and transparent FX market, the government hopes to attract more foreign investment, boost exports, and support sustainable economic growth. World Bank’s $1.5 Billion Support: A Vote of Confidence in Ethiopia’s Reform Agenda The World Bank’s $1.5 billion financial package is a clear endorsement of Ethiopia’s ambitious reform agenda. The funds, which will be disbursed in phases, are contingent on the successful implementation of the privatization, VAT, electricity tariff, and foreign exchange reforms. This financial support is not only crucial for maintaining the momentum of these reforms but also for providing the Ethiopian government with the resources needed to navigate the challenges of economic transformation. The World Bank’s involvement also brings with it technical assistance and policy advice, ensuring that the reforms are implemented effectively and yield the desired outcomes. The global institution’s support underscores the international community’s confidence in Ethiopia’s ability to achieve sustainable and inclusive economic growth through these reforms. Ethiopia’s economic reform program, supported by the World Bank’s $1.5 billion package, marks a significant turning point in the country’s development trajectory. The strategic privatization of Ethio Telecom, comprehensive VAT reforms, adjustments in electricity tariffs, and liberalization of the foreign exchange market are all designed to generate substantial revenue, attract significant foreign investment, and ensure the long-term sustainability of Ethiopia’s economic growth. While these reforms are ambitious and come with challenges, they are essential for positioning Ethiopia as a competitive and resilient economy in the global marketplace. 1 COMMENT Mumo Mutinda August 13, 2024 At 1:31 am Nothing good comes from the WB and IMF other than destrying African economies.These policies the World Bank is enticing Ethiopia to follow through will be the beginning of the destruction of the solid economy ethiopia has enjoyed and massive poverty in Ethiopia and destruction of profitable state enterprises to be purchased by foreign companies . We saw how those policies destroyed our manufacturing in kenya ?? leading kenya to be a dumping place.Be ver careful ABBY AHMED. N Nothing good comes from the WB and IMF other than destrying African economies.These policies the World Bank is enticing Ethiopia to follow through will be the beginning of the destruction of the solid economy ethiopia has enjoyed and massive poverty in Ethiopia and destruction of profitable state enterprises to be purchased by foreign companies . We saw how those policies destroyed our manufacturing in kenya ?? leading kenya to be a dumping place.Be ver careful ABBY AHMED. N Comments are closed.

Dashen Bank Secures $40 Million Trade Finance Guarantee from African Development Bank

Dashen Bank Secures $40 Million Trade Finance Guarantee from African Development Bank Addis Ababa, 09 August 2024 – The African Development Bank Group (AfDB) has approved a $40 million trade finance transaction guarantee facility for Dashen Bank, aimed at bolstering Ethiopia’s financial sector. This facility is a strategic move to support the country’s Small and Medium-Sized Enterprises (SMEs) and local corporations by facilitating their trade finance requirements. The facility, leveraging Dashen’s strong presence in Ethiopia, will enable the import and export trade operations of SMEs and local businesses. It will also enhance intra-African trade, aligning with the African Continental Free Trade Area (AfCFTA) objectives. Addressing Key Financial Challenges The facility is designed to provide guarantees to confirming banks, mitigating the non-payment risk associated with the confirmation of letters of credit and other trade finance instruments issued by Dashen Bank. This is particularly crucial as Ethiopia has faced challenges with inadequate credit lines from international banks, impacting the ability of local banks to support their clients. Focus on Agricultural and Manufacturing Sectors The trade finance facility will be instrumental in the importation of critical inputs such as fertilizers, pharmaceuticals, solar energy panels, and farm machinery. These inputs are vital for reviving Ethiopia’s agriculture and manufacturing sectors, which are key to the country’s economic growth. Statements from Key Stakeholders Nnenna Nwabufo, AfDB’s Director General for East Africa, emphasized the importance of trade finance in driving economic growth and cross-border trade in emerging markets. She expressed delight in partnering with Dashen Bank, noting the shared ambition to support regional trade. Asfaw Alemu, CEO of Dashen Bank, highlighted the significance of the $40 million guarantee facility in expanding the bank’s trade services across the region. He acknowledged the rigorous due diligence process and the value of the best practices learned through their engagement with AfDB. Future Prospects Both institutions are looking forward to strengthening their partnership, with a shared goal of supporting Ethiopia’s thriving SMEs in productive sectors such as agriculture and manufacturing. The collaboration is expected to yield significant benefits for the Ethiopian economy and contribute to the broader AfCFTA agenda. 1 COMMENT Degefa Gebisa August 10, 2024 At 4:03 pm I will start trade with this company I will start trade with this company Comments are closed.

Shewaber Rewards Secures Investment at $600K Valuation, Sets Sights on Major Expansion

Shewaber Rewards Secures Investment at $600K Valuation, Sets Sights on Major Expansion Addis Ababa, Ethiopia – August 9, 2024 – Shewaber, the pioneering Restaurant Loyalty Reward Platform in Ethiopia, has successfully secured an investment at a $600,000 valuation from a foreign investor, marking a significant milestone for the startup founded by Eyoel Tesfaye and Besufekad Menji. Originally launched three years ago as an online bookstore offering free delivery services, Shewaber has since pivoted to focus on the restaurant industry, carving out a niche as the first platform of its kind in Ethiopia. The platform’s rapid growth is evident, with 18 restaurants already on board and nearly 10,000 registered customers actively using the service. These numbers are set to increase as Shewaber is currently in the process of onboarding major food chains in Addis Ababa and has plans to expand its operations to other major cities across Ethiopia. “This investment marks a pivotal moment for Shewaber as we continue to innovate and lead in the restaurant loyalty space in Ethiopia,” said Eyoel Tesfaye, co-founder of Shewaber. “Our goal is to bring value not only to our restaurant partners but also to the growing number of customers who rely on our platform for rewards and incentives.” The investment will be utilized to enhance Shewaber’s platform, scale its operations, and accelerate its expansion into new markets within Ethiopia. With the support of the foreign investor, Shewaber is poised to revolutionize the dining experience in the country, driving growth in the local restaurant industry and creating a more connected ecosystem for consumers and businesses alike. As Shewaber prepares for its next phase of growth, the founders are confident that their unique value proposition and innovative approach will continue to attract both customers and investors, solidifying the startup’s position as a leader in the Ethiopian tech and hospitality sectors.

Dr. Brook Taye Steps Down; Hana Tehelku Appointed New Director General of Ethiopian Capital Market Authority

Dr. Brook Taye Steps Down; Hana Tehelku Appointed New Director General of Ethiopian Capital Market Authority Ethiopian Capital Market Authority Announces Leadership Change In a significant shift at the Ethiopian Capital Market Authority (ECMA), Dr. Brook Taye is stepping down after two years of distinguished service. Dr. Taye has been pivotal in the formation of the authority, establishing its regulatory framework and launching initiatives that have set a solid foundation for Ethiopia’s capital markets. His strategic vision and leadership have been crucial to the authority’s achievements. Hana Tehelku has been appointed as the new Director General. With an LLB from Mekelle University and an LLM from Addis Ababa University, Tehelku brings extensive experience in public prosecution, anti-corruption, and economic crime. Her background is expected to bring a fresh perspective and drive the authority’s agenda forward. The transition marks a new chapter for the ECMA, with expectations high for continued development and growth under Tehelku’s leadership. 2 COMMENTS Kassaye Haile August 9, 2024 At 10:13 am Change is mandatory if it is done positively Change is mandatory if it is done positively Aywnew August 10, 2024 At 9:15 am good good Comments are closed.

NBE Opens Applications for Independent Forex Bureaus in Ethiopia

NBE Opens Applications for Independent Forex Bureaus in Ethiopia Addis Ababa, Ethiopia – August 8, 2024 – The National Bank of Ethiopia (NBE) has officially commenced the acceptance of applications for Independent Foreign Exchange Bureaus, as per the newly instituted Foreign Exchange Directive (FXD/01/2024) that became effective on July 29, 2024. This marks a significant step towards liberalizing the country’s foreign exchange market. Under the new directive, Independent Forex Bureaus are now authorized to engage in the buying and selling of foreign currency cash notes, allowing these transactions to be conducted based on freely negotiated exchange rates between the bureaus and their customers. This initiative is open to businesses owned by Ethiopian nationals, Non-Resident Ethiopians, and Foreign Citizens of Ethiopian Origin, who are eligible to apply for a license to operate an Independent FX Bureau. The directive outlines detailed capital requirements and other operational standards necessary for acquiring an Independent FX Bureau license, all of which are provided in Annex 5 of the Foreign Exchange Directive. NBE foresees that these Independent FX Bureaus will play a crucial role in deepening the foreign exchange market by catering to customers needing to buy or sell foreign currency cash notes. The initiative is expected to contribute to the ongoing market-driven determination of exchange rates, with operators being permitted to independently set their buying and selling rates for foreign currency cash notes, detached from the bank-posted rates. NBE Governor Mamo Mihretu highlighted the significance of this move, stating, “With the licensing of Independent FX Bureaus, we are marking yet another important milestone in opening up Ethiopia’s financial sector and aligning it with global norms and best practices.” He emphasized that this development aligns with NBE’s broader strategy to “fundamentally transform the size, shape, and scope of Ethiopia’s financial sector over the coming years.” For more information and to apply, interested parties can visit the NBE website at nbe.gov.et.

National Bank of Ethiopia Announces Results of Special FX Auction: Highest Bid at Birr 107.9 per USD

National Bank of Ethiopia Announces Results of Special FX Auction: Highest Bid at Birr 107.9 per USD Addis Ababa, August 7, 2024 – The National Bank of Ethiopia (NBE) has successfully concluded its Special Foreign Exchange (FX) Auction, revealing a weighted average rate of Birr 107.9 per US Dollar. The auction, which took place today, saw participation from 27 banks. The NBE’s daily practice of updating exchange rates based on FX market activity will see today’s auction results reflected in the Indicative Daily Exchange Rate, to be posted tomorrow, August 8, 2024. Governor Mamo Mihretu highlighted the significance of the auction results, stating, “We are pleased to see a substantial narrowing of the gap between bank exchange rates and parallel market rates over the past week, as well as meaningful progress towards exchange rate stability. This is precisely what our macroeconomic reforms intended to achieve—namely to ensure that most FX transaction activity can shift to the banking system, thereby helping both the exporters bringing in foreign exchange as well as the many companies and entrepreneurs seeking foreign exchange.” Additionally, the Governor expressed optimism about the growth in FX transaction volumes, noting an increase in banks accepting new import requests. He anticipates that more banks will follow this trend in the coming weeks, contributing to larger FX volumes. For further details, visit nbe.gov.et.

Ethiopian Oil Supply Company to Receive $670 Million from National Bank of Ethiopia

Ethiopian Oil Supply Company to Receive $670 Million from National Bank of Ethiopia It has been announced that the Ethiopian Oil Supply Company, which buys and supplies the fuel the country needs from abroad, will receive 670 million dollars from the National Bank of Ethiopia for its payment obligations until sufficient foreign exchange capacity is built. In addition, the National Bank will provide foreign currency to local banks today, August 1, 2016. He announced that he will conduct a special foreign exchange auction. According to a report released by the International Monetary Fund at the end of last week, the Ethiopian Oil Supply Company will receive foreign currency from the National Bank of Ethiopia to cover its payment obligations and the cost of oil products imported to Ethiopia in the months of July and August until the foreign exchange rate is traded at the market rate and sufficient foreign exchange capacity is built. . The report indicates that the amount of foreign currency that the National Bank of Ethiopia will provide to the Ethiopian oil supplier company in a special way cannot exceed 670 million dollars. For this, the report indicates that the Ethiopian oil supplier company will make payments based on the exchange rate of silver at the time for the foreign currency that it receives under special circumstances. On the other hand, it is known that the National Bank of Ethiopia will hold a special foreign currency auction today to provide foreign currency to local banks. The first special foreign currency auction was held on August 1, 2016. The National Bank of Ethiopia, which announced that it will be held, also announced that it may issue additional foreign currency auctions in the coming weeks, depending on the market conditions. Banks who want to participate in the first special foreign exchange auction to be held today can submit their requests to the Directorate of Foreign Exchange Monitoring and Reserve Management of the National Bank of Ethiopia from 4:00 am to 6:00 pm. He announced that the banks participating in the foreign exchange auction must submit their application by mentioning the amount of foreign currency (dollars) they want and how much Birr (exchange rate) they want to buy one dollar. Although the National Bank has not disclosed the amount of foreign currency that will be auctioned on the day, it has announced that the winning banks will not be able to get more than 20 percent of the total amount of foreign currency that will be auctioned on the day. The result of the auction will be announced at 9 o’clock on the same day, and the winning banks must make their payment on the same day. Before the implementation of the market-driven foreign exchange rate system by the National Bank of Ethiopia, banks used to buy one dollar at 57.7 Birr, and on the first day when the market-driven foreign exchange rate system was announced, they gave 74 Birr to one dollar. In the days since the first day, local banks have continued to increase the price of buying dollars by different amounts every day, and Tuesday, July 30, 2016. And they gave a price of 100 to 107 birr for one dollar. Geda Bank is the only bank that offered a purchase price of 107 birr for one dollar, while the average price of the other banks is 100 birr, according to the official information of the banks. The International Monetary Fund (IMF) has approved 3.4 billion dollars in financial support to support Ethiopia’s transition to a market-oriented foreign exchange rate system and its overall macroeconomic reform programs, of which one billion dollars was transferred to the National Bank account last Friday. At the same time, the World Bank approved a 1.5 billion dollar loan and aid to support Ethiopia’s transition to a market-based foreign exchange rate system. According to the information obtained by the reporter, the National Bank of Ethiopia will use this foreign currency find in the special foreign exchange auction to be held on August 1. It will be recalled that the International Monetary Fund issued a report last week detailing the general agreement reached with the Ethiopian government. In this report, it is stated that the market leader of the National Bank of Ethiopia should try to stabilize the foreign exchange rate by offering foreign currency to the country’s banks in an auction from the time the foreign exchange rate is announced until the end of the first two months.