Addis Ababa City Council Approves 140.2 Billion Birr Budget

Addis Ababa City Council Approves 140.2 Billion Birr Budget On Sunday, July 9, 2023, the Addis Ababa City Council approved a budget of 140.2 billion birr for the city in its second regular meeting. This budget is for the 2023/2024 fiscal year, which started on July 9, 2023. The budget was approved by a majority vote of 87 in favor and two abstentions after discussing the budget proposal. This budget is 40.2 billion birr more than the previous fiscal year’s budget. Tags Adanech Abebe Addis Ababa City Administration ethipoian news

Foreign Companies to Receive Foreign Currency Guarantees for Key Projects in Ethiopia

Foreign Companies to Receive Foreign Currency Guarantees for Key Projects in Ethiopia The National Bank of Ethiopia has made a decision to allow foreign currency guarantees for foreign companies engaged in joint ventures with government or private companies on key or strategic projects. This will enable these companies to repatriate their profits in foreign currency and easily pay off loans taken from foreign financial institutions for their projects in Ethiopia. Deputy Governor of the National Bank, Ato Fqadu Degfe, explained that the government will provide foreign currency to foreign companies investing in areas considered to be of strategic importance. Currently, foreign companies operating in various sectors in Ethiopia can repatriate their profits in foreign currency, but they are treated like any other foreign currency trader when converting their profits into foreign currency. According to the recent decision of the National Bank Board, only foreign companies operating in Ethiopia who agree to develop a framework for government-to-government or public-private partnership will be allowed to obtain foreign currency guarantees on key developments identified by the government as being of national interest. Mr. Faqadu explained that the government will provide foreign currency to these companies so that they do not face difficulties in paying off loans taken from foreign financial institutions for investment in Ethiopia, including their annual profits. Key projects include power generation, mining, and infrastructure projects. The Minister of Finance, Ahmed Shide, stated in his report to the House of Representatives that there are foreign companies that have openly submitted requests for foreign currency guarantees. One such company is MASDAR, an Abu Dhabi company that will enter Ethiopia to generate 500 megawatts of electricity from solar energy. Another company intending to enter Ethiopia with a similar agreement is AMEA Power. Both companies have asked the government for a foreign currency guarantee to repatriate their profits and pay off their loans. According to the decision of the National Bank Board, they are expected to be the first companies to receive foreign currency guarantees from the government. Tags national bank of ethiopia

Viditure Technology Solution PLC To Launch The First Digital / E-Signature Application, Weleta

Viditure Technology Solution PLC To Launch The First Digital / E-Signature Application, Weleta Weleta is poised to revolutionize the way people in Ethiopia sign their documents and how we do business in the future. Addis Ababa, Ethiopia: July 5, 2023– Viditure Technology Solution PLC, is proud to announce that it is set to launch its all-new digital/ E- signature application, Weleta. Weleta is set to revolutionize the way contracts and agreements are signed, replacing wet signatures with electronic ones, and is changing the game for businesses in Ethiopia being the first digital signature technology in Ethiopia. Weleta is available for organizations and individuals on a web application to prepare and send documents for signature and manage documents history and on mobile applications for both Android and iOS users to sign from anywhere. Weleta offers several features that make it the ideal solution for businesses and individuals who need to create or sign documents. The features that it holds include the ability to create and sign documents online while enabling businesses to access documents and send them to recipients instantly, thus reducing turnaround times and allowing for faster decision-making. Weleta’s use of electronic signatures eliminates the need for physical documents along with reducing manual processing by improving accuracy. In addition, users of the service can easily sign various agreements and contracts by making a video agreement through the mobile application without having to be physically present. Weleta provides companies with various package options and is part of Ethiopia’s digital journey. It substantially will reduce the time and effort involved in signing contracts and agreements. “Weleta e-signature platform is a key pillar to transform how we do business in Ethiopia and make our business and life more efficient and productive” said Kebron Dejene, Founder and CEO of Viditure Technology Solution Plc. “We are hopeful that this app will bring convenience and improved efficiency to businesses and individuals across Ethiopia and beyond and spark huge interest in the market” he added. Weleta is credible and acceptable under Ethiopian law and Proclamation No 1072/2018, E-SIGN Act, and other similar laws globally. This new digital signature product being a pioneer in Ethiopia marks an exciting milestone for Viditure Technology Solution Plc and is set to revolutionize the way documents are signed as the first electronic signature. Viditure Technology Solution Plc, the company behind Weleta, a company that works to reduce the hassle and costs related to the execution of all documents, has years of experience developing patented technologies across major marks. Its previous works include Digital INVEA, which issues passports and yellow cards for Ethiopian diasporas. Additionally, Digital MOFA, which aids in document authentication documents and is the first digital consular power of attorney services in the world accepted by DARA   from different countries, is one of its developments. For more information about Weleta please visit https://weleta.com/ or https://www.youtube.com/@WeletaET END For more information Kebron Dejene Founder and CEO of Viditure Technology Email: kebron@viditure.com MelakeTsehay Abera Marketing and Communications Director Email: melak@viditure.com Tags esignature weleta

Ethiopian Shipping and Logistics Celebrates the Arrival of its Largest Vessel, MV Abbay II

Ethiopian Shipping and Logistics Celebrates the Arrival of its Largest Vessel, MV Abbay II Ethiopian Shipping and Logistics (ESL) welcomed its newest and largest vessel, MV Abbay II, to its home port at Djibouti port. The Ultramax bulk carrier has a capacity of nearly 64,000 DWT and was commemorated in a ceremony attended by senior government, port, and logistics officials from Djibouti and Ethiopia. Wondwossen Kassa (Cap), Deputy CEO for Shipping Sector at ESL, spoke at the event, recalling the challenges the company faced in the past year. He mentioned the acquisition of 9 ships in 2012/13, including two product tankers with a carrying capacity of 42,150 DWT each. These tankers were intended to transport imported petroleum products for Ethiopia but could not be used for their intended purpose. As a result, the company had to find other ways to keep them in business. Studies conducted over the past five years suggested that continuing to operate these tankers would result in a loss. The recommended options included selling the tankers, converting them to bulk carriers, or swapping them with bulk carrier vessels. However, these measures could not be implemented due to various reasons. In October 2021, an additional feasibility study was conducted which concluded similar findings. ESL’s management board then gave direction on four alternatives to avoid further financial loss. These included swapping the tankers with new or second-hand Ultramax or Supramax bulkers. A technical team was formed in February 2022 and worked tirelessly for almost a year and a half to realize the plan. The process was successfully concluded with the acquisition of MV ABBAY II under the second option proposed in the recommendation. MV ABBAY II has a DWT capacity of 63,229 and an overall length of 200 meters. It was built in 2016 by Yangzhou Dayang Shipbuilding Co. Ltd., China and was previously registered in Majuro under the flag of Marshal Islands. It was operated by Bernhard Schulte Ship management, a vessel management company based in Hamburg, Germany. On April 25th, 2023, after finalizing all preparations and conducting an underwater inspection, the delivery procedure was concluded and the vessel was registered under the Ethiopian flag as ABBAY II. Wondwossen (Cap) stated that after 59 years in the shipping business, ESL has now entered into a new chapter of growth and opportunity. Tags Bernhard Schulte Ship management Djibouti port ESL Ethiopian Shipping and Logistics MV Abbay II Ultramax bulk carrier vessel management Wondwossen Kassa Yangzhou Dayang Shipbuilding Co. Ltd.

Mobile money could add $5.3 billion to Ethiopia’s GDP

Mobile money could add $5.3 billion to Ethiopia’s GDP Monday 3 July, 2023 | Central Insights | Mobile for Development Today GSMA launched its new report Mobile Money in Ethiopia: Advancing financial inclusion and driving growth. The much-anticipated liberalization of the telecoms market is presenting an opportunity to advance economic development in the country, including the financial inclusion of underserved populations via mobile money. In this study, we look at key enablers for mobile money growth, the projected impact of mobile money services, and the use cases that present the greatest opportunities to drive adoption. Financial Inclusion in Ethiopia Ethiopia has notably lower financial inclusion rates than its East African neighbors. Data from Global Findex shows that less than half of Ethiopian adults had a bank or mobile money account in 2022 compared to almost 80% of adults in Kenya, 77% in Rwanda, and 66% in Uganda. Figure 1: Formal financial inclusion in Ethiopia compared to other East African countries Regulatory evolution and mobile money services The financial system in Ethiopia, including digital finance, has historically been dominated by banks and micro-finance institutions. Regulatory change from 2020 has allowed non-banks to provide mobile money services. This change is part of a broader liberalization of the economy from state-led to private sector-led growth. After liberalization, the only mobile operator in the market, state-owned Ethio Telecom launched its mobile money service telebirr in May 2021, rapidly scaling up subscriptions. Safaricom has also entered the market, and, in May 2023, obtained a mobile money license. In addition, the government of Ethiopia plans to privatize 45% of Ethio Telecom as well as admit another mobile operator into the market. If all goes to plan, by 2025 Ethiopia should have three mobile operators offering mobile money services. A competitive market could be a game-changer for financial inclusion. In Kenya, Ghana, and Uganda, mobile operators have been able to leverage wide subscriber bases, large distribution networks, and trust in their brands to reach a significant proportion of financially underserved populations via mobile money. Projected impact of mobile money services As part of our research on how to scale mobile money in Ethiopia and the socio-economic benefits this can bring, GSMA Intelligence forecast the positive impacts of mobile money adoption on poverty reduction, GDP growth, tax collection, and resilience to economic shocks in the country. GSMA Intelligence estimates that should Ethiopia see high adoption of mobile money, i.e., approximately 60% of Ethiopian adults are mobile money users by 2030, mobile money could: Lift 700,000 people out of extreme poverty. Add $5.3 billion to Ethiopia’s GDP. Increase tax revenue by $300 million. Provide a cushion for the economic shocks experienced by almost 40% of Ethiopian households. Figure 2: Modelled GDP impact of mobile money growth by 2030 Whether Ethiopia will see high adoption of mobile money, however, depends on a number of enabling factors, listed below: Connectivity Affordability Policy/regulations Literacy and digital skills Payments interoperability Awareness, trust, safety, and security Access points and agent networks Product relevance Use cases Our report discusses these factors in detail. In this blog, we highlight three: access points and agent networks; affordability of handsets and mobile services; and relevant use cases. Access points and agent networks Ethiopia’s regulations are becoming increasingly enabling, and payment interoperability is steadily advancing, which will provide impetus to scaling mobile money services. Ethiopia also benefits from relatively good network coverage, with 99% of the population covered by a mobile network, according to the latest information by Ethio Telecom. However, network quality is unreliable and transactions are frequently disrupted, acting as a deterrent to mobile money adoption and use. Electricity is also a significant challenge with only 51% of Ethiopians having electricity in 2021. Low access to banking points continues to be one of the biggest challenges to financial inclusion. According to data from Global Findex (2022), almost 20% of adults do not have a bank or mobile money account because financial institutions are too far away. A core focus of mobile operators entering the market will be to build out a trained and incentivized agent network to ensure onboarding and training of customers. Investing in managing and training agents, offering mutually beneficial commission structures and faster vetting to register agents will be an expensive proposition requiring the deployment of patient capital. However, this will be for a crucial step for driving mobile money adoption, especially in rural areas where 79% of the population live. Affordability of handsets and mobile services Despite mobile money services having been offered in Ethiopia since 2015 by banks and micro-finance institutions, and in the last two years by Ethio Telecom, Findex data (2022) indicates that only 5% of men and 4% of women have a mobile money account. One factor that accounts for low uptake is the affordability of mobile phones and services. According to the Alliance for Affordable Internet (A4AI), the cost of a smartphone is particularly significant and represents almost 97% of average monthly income in Ethiopia. Strategies to make mobile phones more affordable, such as easy availability of low-cost smart feature phones and device financing may improve handset affordability. As an additional barrier, while mobile services in Ethiopia are offered at competitive rates compared to other regional markets, they are still expensive relative to income compared to services in the Asia Pacific and Europe, putting a strain on low-income populations. Relevant use cases Prioritizing use cases that will scale in the short run will likely provide commercial sustainability in the immediate term, while mobile money providers build their readiness to expand the value proposition of mobile money in the longer term. Our research shows that besides the “usual” entry points to mobile money such as cash in-cash out, and person-to-person transfers, the digitalization of government-to-person (G2P) and person-to-government (P2G) payments is a key opportunity to drive the adoption and usage in the short run. The government recognizes the role that G2P/P2G use cases can play in financial inclusion and has been digitalizing P2G payments such as for traffic violations, and has also mandated digital-only payments for fuel purchases. In addition, mobile banking service CBE Birr and Telebirr are facilitating bill payments for government-managed utility services, such as water and electricity. As the ecosystem matures, mobile money will also become a viable option for international remittances, merchant, agricultural and humanitarian payments. With most Ethiopians saving at informal institutions, low accessibility and uptake of credit, and almost no instances of insurance products for agricultural communities or microentrepreneurs, tailored micro-credit, micro insurance, and micro-savings products are another prominent opportunity. Microfinance products however require greater ecosystem maturity, especially when it comes to partnerships with financial service providers. The importance of consumer confidence, trust, and security In focus group discussions we conducted with mobile money users in Ethiopia, trust, safety, and security were indicated as notable barriers to regular use of services, linked to low financial and digital literacy, poor network quality, and concern over the smooth functioning of technology. A notable number of focus group participants said they avoided using mobile money agents due to low trust in the system’s agents used to carry out transactions. While digital and financial literacy will help build trust, robust cyber-security and clear and efficient redress mechanisms for fraudulent or erroneous transactions, where the liability rests with the provider, would all be crucial elements for the adoption of mobile money by building confidence in the service. To understand the current landscape and opportunity for mobile money in Ethiopia, read our new report. Download the report Tags ethiopian news ethiotelecom Mobile Money Safaricom telebirr

Ethiopia’s Request to Join BRICS is a Sign of Desperation, Not of Strategy

Ethiopia’s Request to Join BRICS is a Sign of Desperation, Not of Strategy Yonas Biru, PhD Ethiopian intellectuals are half tribalized and half hermitized. They are driven by the emotional diktats of centuries past and Gadda this, Axum that, and Lalibela ኡኡ cacophony. They are, therefore, unfit to comprehend the nation’s geo-political challenges and opportunities. Ethiopia’s application to join BRICS is partially attributable to this phenomenon.Let me spell out two key points from the outset. First, it is highly unlikely BRICS will admit Ethiopia. Second, even if it admits Ethiopia, there is no tangible benefit Ethiopia can get from joining the good-for-nothing Club. BRICS stands for the regional economies of Brazil, Russia, India, China, and South Africa. It is a scheme China started to establish Chinese hegemony by countering the Bretton Woods institutions (the IMF and World Bank) and the United Nations that are dominated by the West.The first question champions of BRICS need to answer is: What has BRICS achieved since it was established in 2001, nearly a quarter of a century ago? The answer is: “Nothing to write home about.” Here are the reasons why it has not succeeded to date, and it is unlikely to succeed in the near future – in the next 25 years or even 50 years. Next to China, the most important country in the BRICS architecture is India in terms of economic significance. India is China’s strategic rival. First, there is an intractable border conflict between the two. Second, as the West is shifting its supply chain out of China, India is aggressively presenting itself as a hub for the West’s supply chains. The Wall Street Journal rightly headlined this phenomenon in two recent articles. “India, Wary of China, Expands Trade Ties With the West“ and “The U.S. Pursues India as a Supply-Chain Alternative to China.” Let us look at the key Economic factors. According to the 2022 World Bank GDP data, China’s GDP is more than double that of the other four BRICS nations combined. China’s GDP was $17.96 trillion compared to India ($3.39 trillion), Russia ($2.24. trillion), Brazil ($1.92 trillion) and South Africa (405.9 billion). In total, BRICS accounts for 25% of the World economy.What explains BRICS’ failure to expand its membership and, therefore, its economic power vis-à-vis the West? There are two reasons. First, BRICS is envisioned as an exclusive club for emerging economies, not for what Trump called “shithole countries.” Trump says it out loud. BRICS policy is quietly excluding what Trump calls “shithole countries.” If BRICS expands its membership to poor countries such as Ethiopia, it will have serious economic implications. Such nations need grants and concessional loans at or near zero interest rate. China is the only country with resources, but it does not provide grants and low interest rate loans. The other four countries are not in any position to provide grants and loans. Over the last decade, South Africa’s and Brazil’s economies have been on a downward trajectory. Simply put, BRICS cannot rival the West in supporting the development needs of poor countries. Then what good is it for nations like Ethiopia? Expanding its membership will expose this structural deficit. Second, why is BRICS reluctant to expand membership for emerging countries? India, the second largest economy within the club, understands BRICS’ success lends itself to creating a Chinese hegemony. India joined BRICS not so much to support China’s initiative but to put a leash on it. India has been against adding new members especially those who are seen as pro-China or under China’s influence. Nations such as Iran, Saudi Arabia, and Mexico have shown interest to join, but BRICS has been dragging its feet. First Iran and Saudi are rivals and Mexico’s economy is too dependent on the US. If BRICS wants to rival the West in earnest, it needs to establish a common agenda and its primary members need to be free of the West’s influence. The reality is that BIRCS is a hotch-potch of nations with different, if not, irreconcilable geo-political and geo-economic interests. That is why it has not achieved any milestone in its over two-decade existence. Let us return to Ethiopia’s application to be a member. Prime Minister Abiy is a random walking soul. Not long ago, he was a Pan Africanist in the mold of Sankara. Not long after that he declared his allegiance to the US telling an American journalist that he will die for America. As evidence he emitted signals that he will send troops to remove the President of Eritrea from office if supported by the West. Soon after the President of Eritrea traveled to China and Russia. China and Russia sent an unprecedented signal to stand with Eritrea.Today, the random walking Prime Minister wants to join BRICS to emit yet another signal to the West. The question is not whether BRICS will accept Ethiopia. The real question is: Will BRICS take the application as seriously as the tribalized and hermitized Ethiopian intellectuals have? Tags brazil bricks Russia South Africa

Biden Administration Lifts Human Rights Violations Designation for Ethiopia: Unblocking Major IMF Program

Biden Administration Lifts Human Rights Violations Designation for Ethiopia: Unblocking Major IMF Program According to an internal U.S. Treasury Department notification, the Biden administration has informed Congress that Ethiopia is no longer engaging in a “pattern of gross violations of human rights.” This decision will allow the U.S. and international economic aid to resume being sent to Ethiopia. The move comes as Washington seeks to improve its relationship with Ethiopia, one of the largest economies in East Africa, after the country emerged from a brutal civil war last year. Despite this, the Biden administration’s decision to lift the designation demonstrates its eagerness to strengthen ties with Ethiopia, which it views as a crucial player in African security and development initiatives. Ethiopia is a leading contributor of troops to U.N. peacekeeping operations and is host to the African Union. U.S. President Joe Biden recently praised the Ethiopian government for its role in helping to support the rapid evacuation of U.S. diplomats and citizens from Sudan as the country plunged into conflict. The Treasury Department has notified Congress that “based on a recent assessment of the State Department, [it] has determined that Ethiopia no longer is engaging in a pattern of gross violations of human rights.” This notification comes after a major international aid scandal in Ethiopia, where the U.S. Agency for International Development announced that it would suspend all food aid to Ethiopia after discovering “widespread and coordinated” theft of vital aid for millions of people still affected by the war and at risk of famine. With this new notification from the Biden administration, Washington can begin resuming direct U.S. economic assistance to Addis Ababa and also unblock major International Monetary Fund programs to help Ethiopia’s economy by potentially covering gaps in government funding and reworking its government debt. Tags African security african union Biden Administration civil war development initiatives East Africa economic aid ethiopia ethiopian news famine food aid foreign policy government funding human rights violations International Monetary Fund tigray region U.N. peacekeeping operations U.S. Agency for International Development U.S. Treasury Department

Telecom Industry Veteran Wim Vanhelleputte to Lead Safaricom Ethiopia as New CEO

Telecom Industry Veteran Wim Vanhelleputte to Lead Safaricom Ethiopia as New CEO Safaricom PLC has announced the selection of Wim Vanhelleputte as the newly appointed Chief Executive Officer of Safaricom Telecommunications Ethiopia PLC, effective from September 1, 2023. According to the company’s social media posts, Wim brings a wealth of leadership experience and extensive industry knowledge, having dedicated over 25 years to the telecommunications sector across various sub-Saharan African markets. Joining Safaricom Ethiopia from MTN Group, where he served as the Operations Executive – Markets since August 2022, Wim was responsible for overseeing the performance and governance of four operating companies in West and Central Africa. Prior to this role, he held the esteemed position of Chief Executive Officer at MTN Uganda, demonstrating his capabilities in leading telecommunications enterprises since 2016. Throughout his distinguished career, Wim has held significant positions in several other telecommunications companies. Notable among them include his tenure as Chief Executive Officer at Sentel GSM in Senegal, Managing Director of TchadMobile in Chad, and General Manager at Telcel Gabon. Wim’s professional journey commenced as an Associate Engineer at Westinghouse Energy Systems Europe in the Czech Republic. He then pursued opportunities at Siemens Atea, where he excelled as a Project Engineer in Zimbabwe before becoming a Residential Project Manager in Gabon. Safaricom’s appointment of Wim Vanhelleputte as CEO comes as Anwar Soussa, the current CEO of Safaricom Telecommunications Ethiopia PLC, is set to depart next month after his two-year tenure, signifying the company’s dedication to a smooth transition.

Ethio Telecom, Tecno Mobile Sign a Strategic Partnership Towards Increasing Smartphone Penetration

Ethio Telecom, Tecno Mobile Sign a Strategic Partnership Towards Increasing Smartphone Penetration ADDIS ABABA, ETHIOPIA June 23, 2023 – Ethio Telecom, TECNO Mobile Limited, and Transsion Manufacturing PLC today signed a Memorandum of Understanding (MoU) for a tripartite strategic partnership agreement to combine expertise and resources towards increasing smartphone penetration and affordability, and thereby improve 4G and 5G adoption/usage in Ethiopia. Ethio Telecom signed a strategic partnership memorandum of understanding with TECNO Mobile and Transsion Manufacturing Plc for the purchase and sale of Techno’s CAMON 20 pro 5G and CAMON 20 Premier 5G commercial mobile series, strategically collaborate for a consistent supply of techno devices, enhance joint channel development & marketing as well as to increase smartphone penetration thereby bridging the digital divide in Ethiopia. The tripartite strategic partnership further comprises device assembly & delivery, availing devices with customization, ensuring sufficient spare parts/accessory availability, sales collaboration, improving aftersales service, addressing more local language & contents, and maximizing customer experience on digital literacy as well as training & technical support. The cooperation will pave the way for the full realization of the shared visions of the companies and is believed to be a significant step towards increasing the accessibility of high-quality mobile devices nationwide, whereby it will play significant roles in empowering customers to widely use digital services as well as to enhance 5G network usage. During the occasion Mr. Andrew, Country Director of TECNO Mobile Ethiopia remarked that” this strategic partnership with Ethio Telecom is an excellent opportunity for us to contribute to the development of Ethiopia’s telecommunications sector. By leveraging our extensive experience, knowledge, and resources, we can work together to optimize the delivery of telecom services to Ethiopian customers. Together, we can drive the digitization of the economy, improve financial inclusion, and ultimately reduce the digital divide that exists in Ethiopia.” Apart from the signing of the memorandum of understanding, the parties have officially launched two TECNO’s latest masterpieces of mobile device series namely CAMON 20 Pro 5G and CAMON 20 Premier 5G which brought spectacular portrait video and night portrait photography experience with the industry’s first CAMON PUZZLE deconstructionist design to its forward-looking users. TECNO CAMON 20 Premier 5G’s 5000 Times/s Sensor-Shift OIS Anti-shaking Technology and 50MP RGBW Ultra-Sensitive sensor enable the device to be capable to provide SLR camera level anti-shake video and crystal-clear night portrait quality. Its 108MP Ultra Definition camera delivers breathtaking wide-angle shots for both photography and video shooting. The CAMON 20, inspired by the deconstructionist genre of postmodern architecture, the series fuses the magic skin with ceramic materials and creates the unique CAMON PUZZLE design. Today’s signing of the MoU paves the way for the full realization of the vision of the tripartite strategic partnership/collaboration, as the three entities work together to revolutionize the market and enhance customer satisfaction by offering Ethiopians innovative and affordable devices. Tags ethiotelecom tecno mobile