Kazana Fund launches an Angel Syndicate to invest in African founders

Kazana Fund launches an Angel Syndicate to invest in African founders Kazana Fund launches an angel syndicate with over 190 investors in its network with the aim to back exceptional African founders starting in Ethiopia Kazana Fund announces the launch of its Angel Syndicate. This milestone is a major move for Kazana Fund on its mission to democratize access to capital and network for exceptional African founders and accelerate the growth of Africa’s digital economy. “We aim to build wealth through innovation and startups in the continent starting from Ethiopia. We launched the angel syndicate because we saw the immediate need in the ecosystem for a platform that connects the capital with entrepreneurs” says Hilina Zenebe, Managing Partner at Kazana Fund. The angel syndicate aims to solve systemic challenges faced by founders in the region, such as lack of access to capital and network to be able to scale by creating an opportunity for founders not only to raise from angels but to also get mentored. This year we witnessed yet another growth of investment into startups in the African continent, however, 92% of Africa’s investment in tech is dominated by four countries, Nigeria, Egypt, Kenya, and South Africa. And beyond the favorable regulatory environment, large economies, and sizeable population, these countries also have an active angel network and have been working on addressing information asymmetry between founders and investors being home to one-third of the incubators and accelerators in the continent. For other countries like Ethiopia, this can be great evidence for how fiscal and non-fiscal incentives can attract venture capitalists into the country. There are enormous opportunities for countries like Ethiopia; with the highly anticipated startup act, large economy, and sizeable population we have no doubt that Ethiopia can attract increased startup funding if the information asymmetry between startups and VCs can be reduced. The angel syndicate is the first of the many initiatives that Kazana Fund is working on to support ambitious and smart founders to be internationally competitive and to help Ethiopia’s nascent tech scene flourish. Kazana Fund’s Executive Venture Partner, Robel Minassie stated that “Kazana fund is actively working to bridge the gap between capital, network, and brilliant minds”. This is a long-awaited initiative in Ethiopia and will create a network of willing and highly experienced investors that startups can tap into. To be eligible, Kazana is looking to partner with mission-driven early-stage African founders that: looking for pre-seed/ seed funding, have relevant experience/ background, Have a minimum viable product (MVP), Have some traction/ validation, Have scalable solutions/ products Addis Alemayehou, Founding Partner at Kazana Fund, Chairman at Kazana Group, and co-founder of Addis Ababa Angels says that “this was a natural next step for me, I have invested as an angel in several startups and now institutionalizing and helping entrepreneurs proved to be important.” He also mentioned that he is extremely positive about the opportunities that lie in Ethiopia and Africa at large and is excited to partner with some of the most brilliant minds of our country and continent.

Safaricom Ethiopia Expands Network Footprint to 21 Cities Across the Country

Safaricom Ethiopia Expands Network Footprint to 21 Cities Across the Country Safaricom Ethiopia has announced the expansion of its network and services to five new cities in December 2021: Hawassa, Assela, Jigjiga, Sodo, and Dilla. This expansion brings Safaricom Ethiopia’s current network footprint across the country to 21 cities, including Dire Dawa, Harar, Haramaya, Adama, Bahir Dar, Bishoftu, Mojo, Debre Birhan, Awoday, Gondar, Addis Ababa, Sebeta, Dessie, Kombolcha, Jimma, Shashemene, Dilla, Sodo, Jigjiga, Assela, and Hawassa. New customers in the five additional cities will be able to purchase SIM cards for 30 birrs (approximately $0.68), choose their preferred phone numbers, buy airtime, and access dedicated customer support at the Safaricom Ethiopia branded shops in their respective cities. When customers join the “07” network, they will receive a welcoming package (Gursha) of 700 MB of data, 35 minutes of Safaricom-to-Safaricom voice calls, and another 35 minutes of voice calls across all networks, which is valid for 30 days. In addition to the welcoming package, customers will also receive a Gursha bonus when they buy airtime and a voice package. In line with the network expansion, Safaricom Ethiopia is engaging with customers on its products and services through Below-The-Line (BTL) activations in all 21 cities. These activations include events in universities, open markets, distributor shops, and roadshows. The company aims to inform customers about its products and services and provide them with the opportunity to ask questions and provide feedback. “We are excited to expand our coverage into Hawassa, Assela, Jigjiga, Sodo, and Dilla with more cities set to join the growing Safaricom Ethiopia family,” said Anwar Soussa, CEO of Safaricom Ethiopia. “We are also delighted to have expanded our services into more regional states. We thank the Government of Ethiopia, the regional governments, the Ethiopian Communications Authority, our shareholders, and partners for the continued support as we continue to add more cities to serve all of Ethiopia.” Safaricom Ethiopia generated 98.3 million birrs (approximately $2.2 million) in revenue in its first month of operation. CEO Peter Ndegwa stated that the company has invested $598 million in its Ethiopian operations and is encouraged by the early uptake of its services in the new market. Safaricom Plc is a leading telecommunications company in Kenya, and the expansion of its operations to Ethiopia marks its entry into the East African country. The company aims to provide reliable and affordable telecommunications services to customers in Ethiopia, as well as contribute to the country’s economic growth and development. Tags 21 cities activations affordable airtime Assela Below-The-Line BTL customer support Dilla distributor shops East Africa economic growth ethiopia Ethiopian Communications Authority expansion Government of Ethiopia Gursha bonus hawassa jigjiga network open markets partners Peter Ndegwa phone numbers reliable revenue roadshows Safaricom shareholders SIM cards Sodo telecommunications universities welcoming package

Ethiopia’s Government Cracks Down on Illegal Money Laundering Ring: Over $20 Million Illegally Raised

Ethiopia’s Government Cracks Down on Illegal Money Laundering Ring: Over $20 Million Illegally Raised The Financial Security Service announced that it would ban money laundering of more than $20 million raised illegally. The Financial Security Service (FS) has noticed that various individuals have been engaged in illegal activities of opening foreign currency accounts and Diaspora accounts in domestic banks. So far, 85 individuals have been involved in the investigation and the amount of foreign currency amounting to $20 million 226 thousand 583 has been transferred to criminal investigation. He pointed out that some foreigners returned from the country without leaving the country and submitted false declarations. He added that the Financial Security Service (FS) has been monitoring the opening of Diaspora accounts in various banks abroad and the use of false declarations for criminal activities. Proclamation No. 780/2005 to prevent the legalization of money or property obtained from criminal acts and to prevent terrorism and money laundering. Please note that we will continue to strengthen our monitoring in collaboration with the relevant authorities to ensure that legal action is taken against the perpetrators of the crime. He urged those directly or indirectly involved in the crimes to refrain from making money as they will not escape legal responsibility if it is not a matter of time. The Financial Security Service (FS) has announced that it will be cracking down on money laundering activities involving the illegal raising of more than $20 million. According to the FS, a number of individuals have been participating in illegal activities such as opening foreign currency accounts and Diaspora accounts in domestic banks. To date, 85 individuals have been under investigation and a total of $20,226,583 in foreign currency has been transferred to criminal investigation. The FS has also reported that some foreigners have been returning to the country without actually leaving and submitting false declarations. The service has been closely monitoring the opening of Diaspora accounts in various banks abroad and the use of false declarations for criminal purposes. In order to combat money laundering and terrorism, the FS will be utilizing Proclamation No. 780/2005. This proclamation aims to prevent the legalization of money or property obtained through criminal acts and to prevent money laundering. The FS is committed to working with relevant authorities to strengthen its monitoring efforts and take legal action against those who participate in these crimes. It is important to note that anyone directly or indirectly involved in these activities will not be able to escape legal responsibility. The FS urges anyone involved in such crimes to refrain from making money and to instead face the consequences of their actions.

Tewolde Gebremariam to Play Key Role in Potential Sale of Kenya Airways to Delta Airlines

Tewolde Gebremariam to Play Key Role in Potential Sale of Kenya Airways to Delta Airlines The Kenyan delegation, led by President William Ruto, recently met with officials from Delta Airlines in Washington to discuss a potential sale of Kenya Airways, the national carrier of Kenya. Tewolde Gebremariam, the former Group CEO of Ethiopian Airlines, who is now a senior strategy adviser for Delta, was also present at the meeting. Gebremariam is an expert in African aviation and may play a key role in the negotiations between the two airlines. According to data from the African Airlines Association, Ethiopian Airlines carried 7,053,000 passengers in 2021, while Kenya Airways carried only 1,489,000. Ruto expressed his desire to sell the struggling Kenya Airways, which posted a loss of around $80 million in the first half of the year. The CEO of Kenya Airways, Allan Kilavuka, stated that no decisions have been made regarding the potential sale and that the government is exploring all options to address the airline’s financing needs. If Delta were to accept the proposal and acquire the government’s 48.9% stake in Kenya Airways, it would be the largest shareholding by a US carrier in a foreign airline. The other shareholders include a consortium of local lenders (38.1%), Air France-KLM (7.8%), and minority shareholders (2%). A deal would give Delta a stronger presence in Africa and more options for distributing traffic between Asia and the US. On the other hand, a deal for Kenya Airways is important in light of the changing competition landscape and Qatar Airways’ ongoing attempt to acquire a 49% stake in RwandAir. According to the international stock market and financial news website Market Screener, Delta’s current largest shareholding is AeroMexico, of which it owns 20%. Delta also holds 9% of China Eastern Airlines, 2.86% of Air France-KLM, and 2.94% of LATAM, in addition to shares in other non-airline entities. Delta’s competitor, United Airlines, owns 8.04% of Azul, while American Airlines holds 5.83% of China Southern Airlines. It is still early to tell if Delta will accept President Ruto’s proposal and how much of Kenya Airways it will ultimately agree to. The specifics of any potential deal will be determined by transaction advisers on both sides. Delta will be conducting due diligence to determine what it considers to be a fair value for a stake in Kenya Airways. While it comes with higher financial obligations, a controlling stake in the carrier would give Delta more leverage in negotiating issues such as headcount reduction. The issue of Kenya Airways’ existing debt would also need to be resolved. One possible option could be for the government to take it off the balance sheet to strengthen the airline’s financial position. Regardless of the outcome, the sale of Kenya Airways would mark a significant shift in the African aviation industry. It would also have wider implications for the region’s economy, as the airline plays a crucial role in connecting Kenya to the rest of the world. The government will need to carefully weigh the potential benefits and drawbacks of a sale and make a decision that is in the best interests of the country and its citizens. Tags AeroMexico africa African aviation African aviation industry Air France-KLM airline financing American Airlines Azul China Eastern Airlines China Southern Airlines competition debt resolution Delta Airlines Delta shareholding Kenya Airways Kenyan government LATAM Qatar Airways restructuring RwandAir sale shareholders Tewolde Gebremariam transaction advisers United Airlines US-Africa Leaders Summit

Ethiopia brings new opportunities to the United States with the creation of 1600 jobs

Ethiopia brings new opportunities to the United States with the creation of 1600 jobs WASHINGTON –On Thursday, the Board of Directors for the Export-Import Bank of the United States’ (EXIM) unanimously approved two transactions totaling more than $688 million. These transactions will create thousands of American jobs and bolster U.S. support of exports to the United Kingdom and Ethiopia. The Board’s first transaction guarantees $281 million from the Private Export Funding Corporation (PEFCO) to Ethiopian Airlines Group. These monies will finance the export of several Boeing 737 MAX 8 aircraft. It will also support 1,600 American jobs across Washington, Indiana, and North Carolina. The first of this fleet were delivered in September 2022 and the remaining aircrafts are expected to be delivered by the end of March 2023. “Engineers and scientists in the United States created the aircraft. This transaction affirms EXIM’s support of the American aviation industry and supply chain and will help shape our competitiveness around the world, while creating hundreds of jobs,” said EXIM President and Chair Reta Jo Lewis. “Today we are ensuring that 1,600 hardworking Americans will be able to keep and maintain their good-paying jobs. This transaction also advances one of our founding charter mandates to expand and improve commercial ties across the Horn of Africa, where we must do all that, we can to remain competitive and influential.” In a separate action, the Board approved long-term, secured corporate financing for more than $407 million to the United Kingdom’s Viasat Technologies Ltd. with the guarantee of its U.S. parent company, Viasat, Inc. Viasat is a well-established provider of high-speed broadband services, advanced satellite and wireless networks and secure networking products, and services to government, commercial and satellite markets. EXIM financing will be utilized to fund rocket launches supplied by Space Exploration Technologies of Hawthorne, CA, and United Launch Alliance of Centennial, CO as well as U.S.-brokered launch and initial in-orbit insurance services to support the deployment of two satellites. An estimated 2,200 U.S. jobs in California and Colorado are expected to be created or supported with this transaction. Once fully deployed, the Viasat constellation will provide global coverage, dramatically improving connectivity in regions such as sub-Saharan Africa. This authorization will support the goals of President Biden’s Partnership for Global Infrastructure and Investment (PGII) as well as EXIM’s China and Transformational Exports Program. “EXIM has been strongly committed and vocal regarding its support of PGII since its launch,” said Chair Lewis. “This transaction demonstrates our commitment to Biden-Harris Administration priorities while ensuring our U.S. exporters are competitive in the global landscape.” In the final transaction of the day, the Board unanimously voted to approve a key reinsurance/risk-sharing program that will help diversify risk in financing projects at EXIM. The risk-sharing arrangements on a transaction-by-transaction basis with private sector insurance and non-insurance companies as part of its reinsurance/risk sharing program. The Reinsurance Program, launched in 2018 because of EXIM’s 2015 reauthorization, is an innovative program that, at the time, was the largest public-private risk sharing arrangement for a U.S. government credit agency. The program represented the maximum allowable coverage permitted under EXIM’s charter and fulfilled its 2015 congressional reauthorization mandate to engage in risk-sharing with the private sector to minimize EXIM’s liability for potential future losses. ABOUT EXIM: The Export-Import Bank of the United States (EXIM) is the nation’s official export credit agency with the mission of supporting American jobs by facilitating U.S. exports. To advance American competitiveness and assist U.S. businesses as they compete for global sales, EXIM offers financing including export credit insurance, working capital guarantees, loan guarantees, and direct loans. As an independent federal agency, EXIM contributes to U.S. economic growth by supporting tens of thousands of jobs in exporting businesses and their supply chains across the United States. Since 1992, EXIM has generated more than $9 billion for the U.S. Treasury for repayment of overall U.S. debt. Learn more at www.exim.gov.

Fitch Downgrades Ethiopia to ‘CCC-‘; Removes From UCO

Fitch Downgrades Ethiopia to ‘CCC-‘; Removes From UCO Fitch’s proprietary SRM assigns Ethiopia a score equivalent to a rating of ‘CCC+’ on the Long-Term Foreign-Currency IDR scale. However, in accordance with its rating criteria, Fitch’s sovereign rating committee has not utilised the SRM and QO to explain the ratings in this instance. Ratings of ‘CCC+’ and below are instead guided by the rating definitions. Fitch’s SRM is the agency’s proprietary multiple regression rating model that employs 18 variables based on three-year centred averages, including one year of forecasts, to produce a score equivalent to a LT FC IDR. Fitch’s QO is a forward-looking qualitative framework designed to allow for adjustment to the SRM output to assign the final rating, reflecting factors within our criteria that are not fully quantifiable and/or not fully reflected in the SRM. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Sovereigns, Public Finance and Infrastructure issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of three notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from ‘AAA’ to ‘D’. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579. REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING The principal sources of information used in the analysis are described in the Applicable Criteria. ESG CONSIDERATIONS Ethiopia has an ESG Relevance Score of ‘5’ for Political Stability and Rights as WBGIs have the highest weight in Fitch’s SRM and are therefore highly relevant to the rating and a key rating driver with a high weight. As Ethiopia has a percentile rank below 50 for the respective governance indicator, this has a negative impact on the credit profile. Ethiopia has an ESG Relevance Score of ‘5’ for Rule of Law, Institutional and Regulatory Quality and Control of Corruption as WBGIs have the highest weight in Fitch’s SRM and are therefore highly relevant to the rating and are a key rating driver with a high weight. As Ethiopia has a percentile rank below 50 for the respective Governance Indicators, this has a negative impact on the credit profile. Ethiopia has an ESG Relevance Score of ‘4’ for Human Rights and Political Freedoms, as the Voice and Accountability pillar of the WBGI is relevant to the rating and a rating driver. As Ethiopia has a percentile rank below 50 for the respective governance indicator, this has a negative impact on the credit profile. Ethiopia has an ESG Relevance Score of ‘4’ for Creditor’s Rights, as willingness to service and repay debt is relevant to the rating and is a rating driver for Ethiopia, as for all sovereigns. As Ethiopia has a fairly recent restructuring of public debt in 2006, this has a negative impact on the credit profile. Except for the matters discussed above, the highest level of ESG credit relevance, if present, is a score of ‘3’. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or to the way in which they are being managed by the entity. For more information on Fitch’s ESG Relevance Scores, visitwww.fitchratings.com/esg.

Commercial Bank of Ethiopia (CBE) has resumed services in Shire, Alamata and Korem

Commercial Bank of Ethiopia (CBE) has resumed services in Shire, Alamata and Korem Commercial Bank of Ethiopia (CBE) has resumed services in Shire, Alamata and Korem following the recent peace agreement. The bank noted that it was also forced to suspend banking services due to instability in northern Ethiopia. Following the recent peace agreement, the branches in Shire, Alamata and Korem towns have started receiving and depositing foreign and domestic funds. Commercial Bank of Ethiopia (CBE) announces that it will continue to satisfy its customers by launching services at all branches in the near future.

Its Official : Ethiopian Airlines Announced As Partner For Nigeria Air

Its Official : Ethiopian Airlines Announced As Partner For Nigeria Air The Nigerian Government announced that Ethiopian Airlines, Africa’s most prominent air carrier, was selected as a strategic partner and 49% shareholder of Nigeria Air. A breakdown of stakes showed that Ethiopian Airlines would own 49 % equity, the federal government would control 5 % equity, while a consortium of three Nigerian investors, MRS, SAHCO, and other institutional investors will have 46 %. The stakeholders involved Speaking during a press conference in Abuja, the Minister of Aviation, Hadi Sirika, noted that after a careful, detailed, and ICRC-governed selection process, Ethiopian Airlines (ET) Consortium has been selected as the preferred bidder for Nigeria Air. He noted that the consortium will be subjected to a due diligence process, after which the contract will be negotiated between the consortium and the FGN, leading to a Full Business Case, which will be expected to be approved Federal Executive Council (FEC). The process, according to the minister, will take off in six to eight weeks. Fleet and first routes The overall share capital of around $300 million will be provided by the preferred bidder that will launch Nigeria Air to its full size of 30 aircraft and international operation within the next two years. Nigeria Air will be launched with three Boeing 737-800 in a configuration very suitable for the Nigerian market. It will launch with a shuttle service between Abuja and Lagos to establish a new comfortable, reliable, and affordable travel between these two major Nigerian Airports. Other domestic destinations will follow thereafter. According to the Minister of aviation, “A signature-ready contract has been finalized with Ethiopian Airlines for the three Boeing 737-800 with a 16 Business Class and 150 Economy Class configuration.” The approval process and recruitment All executives have been approved by NCAA (Nigeria Civil Aviation Authority), and the Air Transport License has also been issued. Nigeria Air (having identified the first three aircraft) will finalize all necessary Operation Manuals and then go through the inspection and approval process of NCAA. The money spent for the launch of Nigeria Air, for all the requirements to establish an AOC ( Air Operators Certificate) and be admitted to starting an airline operation as prescribed in the FEC-approved Outline Business Case (OBC), is well within the 5 % capital investment of the Federal Government of Nigeria. The minister added, “No further federal government funding will be provided above the five percent share capital of the next national Carrier of Nigeria, which was provided to launch Nigeria Air.” The airline has already begun its recruitment process, announced in a memo posted to the official Twitter account of the Federal Ministry of Aviation at the end of last week. The memo reads, “Nigeria Air is now recruiting qualified crew for the following positions: Experienced, and current B737 Captains; Experienced, and Current B737 First Officers; Experienced, and Current B737 Senior Cabin Crew and Cabin Crew Experienced, and Current B737 Engineers (B1/B2 preferred).” The announcement adds that positions will be based in Abuja or Lagos and that additional details of open positions will be available soon on the airline’s website. Tags ethiopian airlines nigeria air

Ethiopia cancels gas, oil exploration contract with Chinese firm

Ethiopia cancels gas, oil exploration contract with Chinese firm ADDIS ABABA, Ethiopia Ethiopia has canceled its contract with a Chinese company exploring oil and gas in the country since 2013, the government announced on Wednesday. Takele Uma, Ethiopia’s minister of mines and petroleum, said the deal with Chinese firm Poly-GCL was called off because of its “financial and organizational inability” to develop gas in the Ogaden Basin, a resource-rich area in eastern Ethiopia, according to state-affiliated news agency Walta. The report said Poly-GCL was issued a letter of ultimatum in March that listed several conditions for the company to fulfill. “In accordance with the successive notices the Ministry has issued in the past and in full compliance with the PPSAs and the laws of the land, the termination has now been fully effected,” Takele said on Twitter. “As long as the financing that would enable to develop the oil and gas fields the Ministry is open for mutual and expeditious settlement,” he added. Takele had previously hinted that Poly-CGL’s contract would be terminated, saying that Ethiopia was actively searching for international companies that could develop the Ogaden’s confirmed reserves of 7 trillion cubic feet of natural gas.