Ethiopia and World Bank Sign $400 Million Financing Agreement

Ethiopia and World Bank Sign $400 Million Financing Agreement July 27, 2023 The Government of the Federal Republic of Ethiopia and the World Bank signed a Financing Agreement amounting to a total of 400 million US Dollars The Ministry of Finance and the World Bank virtually signed a Financing Agreement amounting to a total of US$ 400 million (approximately ETB 21.8 Billion) of which US$ 350 Million is in the form of a grant and USD 50 Million in the form of credit. The proceeds from the Loan and Grant will be used to improve the learning outcomes and nutrition services for girls and boys and strengthen service delivery and accountability, in all regions including areas affected by conflict, droughts, and high levels of refugees. The Human Capital Operation consists of Program for Results (PforR) and Investment Project Financing (IPF) components. The PforR component is aimed to strengthen basic service delivery systems to mitigate the impact of the crises and improve learning outcomes and address stunting in selected Woredas, while the IPF part is designed to provide technical assistance and capacity-building support for strengthening systems and delivery of quality services. The Agreements were signed between H.E. Mr. Ahmed Shide, Minister, Ministry of Finance, and Mr. Ousmane Dione, World Bank Country Director for Ethiopia, Eritrea, Sudan, and South Sudan representing the Government of Ethiopia and the World Bank, respectively. Ethiopia continues to honor its commitment to prioritize human Capital Development and reaffirmed this commitment at the ongoing Africa Heads of State Human Capital Summit in Dar Es Salaam Tanzania July 25-26, 2023.

CBE Soars to 1.1 Trillion Birr in Deposits, Surpasses Target by 18.3%

CBE Soars to 1.1 Trillion Birr in Deposits, Surpasses Target by 18.3% Commercial Bank of Ethiopia (CBE) has announced that it has made a remarkable achievement in the 2015 Ethiopian fiscal year, with its deposits soaring to an astounding 1.1 trillion birr. This groundbreaking milestone accounted for half of all deposits mobilized within the banking industry. Over the course of the fiscal year, a staggering 163.2 billion birr was raised, propelling CBE’s resource base with an impressive 18.3% boost. The state-owned bank announced its achievement at a performance evaluation meeting held at CBE’s new headquarters, with the board of directors and bank management in attendance. During the meeting, Abe Sano, the president of the bank, expressed some dissatisfaction with the deposit mobilization during the period compared to the set target. “However, given the intense competition within the banking industry, the performance can be considered relatively better,” he said. During the fiscal year, the 80-year-old bank aimed to mobilize approximately 205 billion birr, falling short by 41.8 billion birr. Abe revealed that the bank has ambitious plans to mobilize a deposit of 214 billion birr during the 2016 Ethiopian fiscal year, which will propel its total deposit base to a staggering 1.3 trillion birr. On the other hand, CBE disbursed 89% of the planned 169 billion birr as credit. The bank’s capital also soared to 63.1 billion birr, representing 27.7% of the total capital registered by the banking industry. Additionally, its total assets reached 1.3 trillion birr. In recent years, the growth of private banks and the emergence of new players in the industry have posed challenges to deposit mobilization. The number of banks operating in the country has nearly doubled in the past two years, with Sidama Bank becoming the 31st bank to open its doors to customers just a month ago. Financial firms such as Amhara and Oromia saving and credit institutions, previously functioning as microfinance institutions, have also upgraded to full-fledged banks. As new entrants flood the industry, competition has intensified, prompting financial institutions to vie for customers by offering attractive savings rates and product packages. Recognizing the need for global competitiveness, the Ethiopian government has taken steps to open up the country’s financial sector, which has traditionally been isolated from global money markets. The National Bank of Ethiopia (NBE) recently revealed its plans to issue banking licenses to foreign investors, with intentions to grant up to five licenses within the next five years. However, currently, the state-owned CBE maintains the largest market share in the industry. In the reported period, the bank’s gross profit reached 20.6 billion birr. Despite a slight decrease of 4.7% compared to the previous year, this profit surpasses the combined gross profits of the three leading private banks in the previous fiscal year. Awash, Dashen, and Abyssinai banks recorded a combined gross profit of nearly 19 billion birr in 2021/22. Foreign currency earnings is another area in which the state-owned financial giant excelled, generating $3.5 billion throughout the fiscal year. Emebet Melese, vice president of strategic planning and transformation at CBE, highlighted that this achievement surpassed the set target by 107% and represented a 32.1% increase from the previous year. CBE is one of the top public institutions that generate hard currency for the country, which has been grappling with the scarcity of foreign currency. Ethiopia has been experiencing foreign exchange shortages for a long time, and the issue has worsened recently. Instability and conflict observed in different corners of the country have obstructed foreign currency inflows by limiting tourism and foreign direct investment. The severe shortage of foreign exchange has become a critical issue for importers across various sectors such as manufacturing, agriculture, and construction, which have been particularly hard-hit by this crisis. This is evidenced by CBE’s foreign currency allocation during the fiscal year. The majority of the foreign currency generated by the bank was allocated to fuel and fertilizer imports (57%), with only 7% being provided to the business community and 18% for public imports and service payments. Recently, CBE has made significant strides in expanding its digital financial services. In January 2023, the bank introduced the EthioDirect money transfer service, specifically catering to members of the Ethiopian diaspora residing in seven countries, including Canada, Israel, and the United States. This service enables users to send money ranging from $5 to $1000 directly to Ethiopia.

Telebirr Transactions Soar 22.6 Folds to 679.2 Billion Birr

Telebirr Transactions Soar 22.6 Folds to 679.2 Billion Birr Ethio Telecom’s mobile money platform, Telebirr, has seen its transactions soar 22.6 folds to 679.2 billion birr ($2.8 billion) in the latest year. This growth was driven by a number of factors, including the expansion of the platform’s acceptance at merchants and the increasing use of Telebirr for bill payments and money transfers. Telebirr now has over 34 million subscribers, making it the most popular mobile money platform in Ethiopia. The platform is accepted at over 1 million merchants across the country, and it is used for a variety of purposes, including bill payments, money transfers, and merchant payments. The growth of Telebirr is a significant development for the Ethiopian economy. The platform has made it easier for people to access financial services, and it has helped to boost economic activity in the country. Here are some additional numbers about Telebirr: Telebirr transactions have grown at an average annual rate of 120% since its launch in 2021. Telebirr is used by over 34 million people in Ethiopia, which is equivalent to 45% of the country’s population. Telebirr is accepted at over 1 million merchants across Ethiopia, which is more than the number of ATMs in the country. Telebirr transactions are processed instantly, which makes it a convenient and efficient way to make payments. In addition to the numbers above, it is also worth noting that Telebirr has been used to provide microcredit to millions of people in Ethiopia. This has helped people to start their own businesses or improve their livelihoods, which has had a positive impact on the economy. Telebirr is still a relatively new platform, but it has already made a significant impact on the Ethiopian economy. The platform is likely to continue to grow in the years to come, and it has the potential to revolutionize the way people in Ethiopia access financial services. Tags ethiotelecom Mela telebirr

M-Pesa to Launch in Ethiopia in September, Boosting Financial Inclusion

M-Pesa to Launch in Ethiopia in September, Boosting Financial Inclusion Safaricom, the Kenyan mobile network operator, is set to launch its M-Pesa mobile money service in Ethiopia in September 2023. The launch of M-Pesa in Ethiopia is a major milestone for Safaricom, as it will give the company a significant foothold in the country’s rapidly growing mobile money market. M-Pesa is a mobile-based money transfer and payment service that has been hugely successful in Kenya. The service allows users to send and receive money, make payments, and buy goods and services using their mobile phones. M-Pesa has been credited with helping to reduce poverty and financial exclusion in Kenya, and it is expected to have a similar impact in Ethiopia. The Ethiopian government has been promoting the use of mobile money in recent years, and the launch of M-Pesa is a significant step in this process. The government believes that mobile money can help to improve financial inclusion in Ethiopia, and it has also expressed the hope that M-Pesa will help to boost economic growth. The launch of M-Pesa in Ethiopia is a major event for the country, the mobile money industry, and Safaricom. It is a sign of the growing importance of mobile money in Africa, and it is likely to have a major impact on the way that people in Ethiopia make payments and access financial services. Here are some of the benefits that M-Pesa is expected to bring to Ethiopia: Increased financial inclusion: M-Pesa will make it easier for people in Ethiopia to access financial services, even if they do not have a bank account. Improved efficiency: M-Pesa will make it easier and faster to send and receive money, which will boost economic activity. Increased transparency: M-Pesa will make it easier to track financial transactions, which will help to reduce fraud and corruption. Here are some additional details: Safaricom’s Ethiopian business, Safaricom Ethiopia, has already reached 2.7 million customers since its commercial launch in October 2022. The Safaricom-led consortium became the first foreign-owned entity to be granted a mobile money service license in Ethiopia in May 2023. The National Bank of Ethiopia (NBE) welcomed the launch of M-Pesa, saying that it would “bring greater efficiency, safety, and transparency to the country’s rapidly growing financial system.” The launch of M-Pesa in Ethiopia is a significant event for the country, the mobile money industry, and Safaricom. It is a sign of the growing importance of mobile money in Africa, and it is likely to have a major impact on the way that people in Ethiopia make payments and access financial services. Tags ethiopia Financial Inclusion M-Pesa Mobile Money Safaricom telebirr

Ethiopia Seeks Port Access Through Negotiations and Force

Ethiopia Seeks Port Access Through Negotiations and Force Addis Ababa, Ethiopia – Prime Minister Abiy Ahmed has announced that the Ethiopian government is exploring all options to secure a port for the country, including negotiation, “give and take,” and force. In a meeting with investors and businessmen on Thursday, Abiy said that Ethiopia’s current port costs are unsustainable, and that the country must have its own port to reduce its reliance on neighboring countries. The Prime Minister said that the government has already started negotiations with Eritrea, Djibouti, and Somaliland to secure port access. In the case of Eritrea, the government has proposed to give 30% of Ethiopian Airlines to the Eritrean government in exchange for port access. Abiy said that the government is also considering the use of force to secure a port, but that this would be a last resort. “We want to get a port through peaceful means, but if that fails, we will use force,” Abiy said. The Prime Minister’s announcement comes as Ethiopia is facing increasing pressure from the international community to resolve its border dispute with Eritrea. The two countries fought a war from 1998 to 2000, and the border has been closed since then. Abiy’s announcement is seen as a sign that the Ethiopian government is serious about securing a port, and that it is willing to take steps that could lead to conflict. Background Ethiopia is a landlocked country in East Africa. The country has a population of over 120 million people, and its economy is growing rapidly. However, Ethiopia’s lack of a port has been a major obstacle to its economic development. Ethiopia currently relies on the ports of Djibouti and Somaliland to import and export goods. However, these ports are expensive to use, and they are often congested. The Ethiopian government has been trying to secure a port for the country for many years. However, the border dispute with Eritrea has made it difficult to reach an agreement. The Future It is unclear what the future holds for Ethiopia’s port access. The government’s negotiations with Eritrea could succeed, and the two countries could reach an agreement on the use of the Eritrean ports. However, it is also possible that the negotiations will fail, and that Ethiopia will be forced to use force to secure a port. The outcome of the negotiations will have a major impact on Ethiopia’s economy and its relations with its neighbors. Tags abiy ahmed addis ababa Assab conflict in ethiopia ethiopia news ethiopia news now ethiopia news today ethiopian airlines ethiopian news ethiopian news today Massawa 4 COMMENTS Comments are closed.

Enkopa Summit to Disrupt the Perception of Entrepreneurship in Ethiopia

Enkopa Summit to Disrupt the Perception of Entrepreneurship in Ethiopia On October 12 and 13, 2023, tech experts, policymakers, entrepreneurs, corporate leaders, investors, and legal experts from more than 25 countries will converge at the Science Museum in Addis Ababa, the capital of Africa. Their common objective: collaborate on ventures transforming Ethiopia, and Africa at large during the Enkopa  Summit. The Summit has an objective to redefine Entrepreneurship and Innovation in a country that badly needs a pivot in its Economic Growth. The organizers of the event believe that “we can no longer expect Ethiopia to grow organically and that we need an Ethiopia 2.0 commensurate with population growth, the demand of the youth, and external economic pressures”. They believe the Enkopa Summit will play a crucial role in bringing decision-makers from all concerned stakeholders around a table to have purpose-driven conversations. Most large companies, public enterprises and multinationals present in Ethiopia are not getting involved in the whole Entrepreneurship and Innovation ecosystem. Indeed, most if not all incubation, acceleration and investment activities in the ecosystem are currently being driven by development partners and the public sector. What makes Enkopa Summit different is that it is first and foremost a private sector-led initiative. Secondly, the  Summit will bring large corporations to the table to discuss topics such as mergers and acquisitions, Antitrust  Laws, Corporate Restructuring, and many more corporate-oriented topics. This, of course on top of entrepreneurship-oriented topics. Why this approach to the Summit? The organizers explain it by mentioning the unhealthy relationship between tech vendors and large companies in Ethiopia. Large companies are usually suspicious of local innovators and rather choose to contract foreign-based contractors, spending hard currency on a land far away from Ethiopia instead of spending local currency on local innovators. When large companies do choose to contract with local innovators, they treat them as order takers rather than partners. The other path they sometimes choose is to build solutions themselves, rather than focus on their core competencies. The outcome with all three options remains the same: the local Entrepreneurship and Innovation Ecosystem does not grow; at best it plateau. Introducing corporate-oriented topics can help large corporations mature their processes and fix their relationships with external vendors. The inevitable consolation of the banking sector will accelerate these partnerships, but all parties need to be ready. Management consulting firms also need to be on standby to lead highly complex Post Merger Integration  (PMI) programs. In general, the Enkopa Summit will attempt to disrupt the current perception of Entrepreneurship and  Innovation in Ethiopia. Unfortunately, Entrepreneurship and Innovation have been perceived as a hobby pursued by campus dropouts who are barely making ends meet. Most large companies, public enterprises, and multinationals present in Ethiopia have innovative solutions for solving internal problems, including through intrapreneurship programs. By exhibiting these innovative solutions at the Summit, they can start a conversation with entrepreneurs and innovators. Those entrepreneurs and innovators may localize and improve those solutions. Through these partnerships, an entrepreneur or innovator can scale, attract investment, grow, and perhaps become a unicorn. Tags enkopa summit entrepreneurship

Ethio Telecom Earns 75.8 Billion Birr in 2022/2023

Ethio Telecom Earns 75.8 Billion Birr in 2022/2023 Ethio Telecom, the state-owned telecom provider in Ethiopia, announced on Tuesday that it earned 75.8 billion birr in the fiscal year 2023. The company’s net profit for the year was 18.78 billion birr. The CEO of Ethio Telecom, Frehiwot Tamru, said that the company’s performance in 2023 was “effective” and that 116 new services were launched during the year. She also said that the company’s income in 2023 was 101% of the planned income and that it had increased by 23.5% compared to the 2022 budget. Frehiwot attributed the company’s strong performance to the implementation of its “Lead” strategy, which was launched in 2022. The strategy aims to make Ethio Telecom a leading telecom provider in Africa. Key points: Ethio Telecom earned 75.8 billion birr in 2015. The company’s net profit was 18.78 billion birr. The company’s income increased by 23.5% compared to 2014. The company’s “Lead” strategy was a key factor in its strong performance. Tags ethio telecom earnings 2015 ethio telecom financial results 2015 ethio telecom growth in 2015 ethio telecom lead strategy ethio telecom net profit 2015 ethio telecom new services 2015 ethio telecom performance in 2015 ethio telecom telecom provider in ethiopia

Best Western Premier Dynasty Hotel: A 1.3 Billion Birr Addition to Ethiopia’s Hospitality Industry

Best Western Premier Dynasty Hotel: A 1.3 Billion Birr Addition to Ethiopia’s Hospitality Industry The Best Western Premier Dynasty Hotel, which cost 1.3 billion birr to build, was inaugurated on July 15, 2023. It is one of three Best Western Hotels and Resorts in Ethiopia. The hotel took seven years to build and covers an area of 1000 sq.m. with a G+10 structure and 3 basements, including 2 floors for parking. The hotel has 89 spacious and comfortable bedrooms with balconies, a restaurant, lounge, bar, cafe, cake house, conference hall, indoor swimming pool, gym, sauna, steam room, Moroccan bath, and massage facilities. Located in front of INSA in the Wolo Sefer area of Addis Ababa city, the Best Western Premier Dynasty Hotel is designed to provide five-star hotel services and help Ethiopia’s hotel and tourism service institutions meet the international hospitality industry’s standards in terms of quantity and quality. Best Western Hotels and Resorts manages more than 4700 hotels located in over 100 countries. Tags 1.3 billion birr addis ababa Best Western Premier Dynasty Hotel ethiopia ethiopian news hospitality industry hotel inauguration insa Wolo Sefer

Purpose Black Makes 1 Billion Birr Advance Payment for BGI Ethiopia’s Headquarters

Purpose Black Makes 1 Billion Birr Advance Payment for BGI Ethiopia’s Headquarters Purpose Black claims that it has won the bid to purchase the main office building of BGI Ethiopia in order to construct ‘Farmer’s Tower’. According to the firm, an advance payment of 1 billion birr was made. Purpose Black Ethiopia announced that it won the BGI Ethiopia head office building in a competition to develop the “Farmer Tower Share Holder Model Building” in Mexico, in the heart of Addis Abeba. In a press conference held yesterday at the Skylight Hotel, it declared that a 1 billion Birr advance payment had been paid. Purpose Black’s 115-story Tower includes residential, commercial, and entertainment projects. The “Tower Share Holder Model” stock system, which comprises 6 buildings for diverse services, was formally opened in December. According to Purpose Black ETH CEO Dr. Fisha Eshetu, since the company revealed the project, the Keguri Tower will be built either in Mexico, Leghar or Hot Springs. Finally, the CEO announced that when BGI Ethiopia’s headquarters were relocated to Sebeta, the institution’s premises in central Mexico had been put up for sale. Black used this opportunity to win the auction prize. In order to acquire the BGI Ethiopia headquarters, which the company won in a competition to create the skyscraper Kegerew Tower and the buildings to be erected under the Tower Share Holder Model project, he said that 1 billion birr had been paid in advance. He continued, stating that Purpose Black and BGI Ethiopia have a contract requiring payment to be provided in three installments, including the advance, and that the remaining payments will be made later. The BGI headquarters building will reportedly be included in the 30,000 square meter facility that the business aims to construct. According to reports, the construction would also include additional buildings such as housing towers. Dr. Fisha claims that the company has carried out a variety of operations using the stock system it put up to carry out the constructions. He asserted that between May 29 and June 14, 2023 he had already created 1.5 million birr in advertising stock. Tags BGI Headquarter Dr Fiseha Eshetu ethiopia business news ethiopian news Purpose Black