Yemeni Airlines Resumes Flights to Addis Ababa After Years of Interruption

Yemeni Airlines Resumes Flights to Addis Ababa After Years of Interruption Yemeni Airlines launched on Wednesday, February 15, its flights to Addis Ababa, after an interruption that has lasted for several years. Yemeni will have its flights every Wednesday and Friday of every week, within the framework of its itinerary and airlines. The reopening of Yemeni flights to Addis Ababa comes among the successes, achievements, understandings, and joint cooperation made by the company’s leadership represented by Chairman of the Board Captain Nasser Mahmoud, and Commercial Manager Mr. Mohsen Haidra. The resumption of flights to Ethiopia represents a huge success for the Yemeni leadership and a first step to restoring all Yemeni Airlines airlines and regaining its advanced position on the airline ladder. Tags addis ababa flight resumption Friday interruption joint cooperation Mohsen Haidra Nasser Mahmoud Wednesday Yemeni Airlines

Introduction of Capital Market to Ethiopia

Introduction of Capital Market to Ethiopia Yinebeb Bahru In December 2020 Ethiopia’s Council of Ministers approved a draft law that would enable the capital market. The draft was prepared by the National Bank of Ethiopia, the draft provides the legal framework for the formulation of the capital market, It’s very important for Ethiopia’s economic growth by increasing capital mobilization, financial innovation, and risk sharing in investment. Moreover last month, Pm Abiy appointed six board members for the Capital Market Authority, which is expected to come into operation soon. Here in Ethiopia, There’s miss understanding of the terms (financial market, capital market, stock market, and money market), you know that many people believe that those all terms are the same however there’s a differences between them, let us see one by one: Financial Market A financial market is a marketplace where buyers and sellers can conduct transactions involving financial securities, commodities, currencies, and derivatives. Financial markets provide liquidity to investors by allowing them to trade their assets quickly and at market prices that reflect the true value of the underlying securities. Financial markets allow for the transfer of money between investors and enable the conversion of savings into investments. Financial markets include stock markets, bond markets, commodity markets, capital markets, and currency markets. Capital Market The capital market is a financial system that allows private and public institutions to buy and sell equity and debt instruments companies to raise long-term funds through the sale of securities such as stocks and bonds. It is made up of primary markets, where new issues are sold directly to investors, as well as secondary markets, where existing securities are bought and sold among investors. In other words, it facilitates the transfer of capital from investors to entities that need it. Stock Market The stock market is a collection of exchanges or Over-the-Counter markets (OTC) in which shares of publicly held companies are issued and traded. These exchanges make it possible for buyers and sellers to trade stocks openly and transparently. It is one of the most important sources of capital for companies, as it provides a way for companies to raise money to finance growth and expansion. Investors can also make money by trading stocks, either by buying low and selling high or by collecting dividends. Money Market What are the similarities? All of these markets are related and focus on trading, investing, and managing money. The money market deals with short-term debt investments, the financial market deals with buying and selling securities, the stock market deals with buying and selling of stocks and other equities, while the capital market is where long-term debt or equity-backed securities are traded. All four markets are essential components of the global economy and help to generate liquidity in the financial system. Ethiopia’s Trend on the Capital Market Ethiopia had a stock market during the emperor’s era it’s known as “The Addis Ababa Share Dealing Group,” however it was destroyed after Communist, autocratic and military regime Derg came to power. Ever since the Ethiopian Stock market has ceased to exist as a standard institution. However, there is still a stock market during the Ethiopian Peoples Revolutionary Democratic Front (EPRDF) regime, but it was not centralized and also haven’t governing authority, in addition to that it doesn’t have a secondary market. Ethiopia has seen tremendous economic growth since 2004. This is due to the country’s focus on economic reform after the Derg regime fall, which has attracted increased investment from both domestic and foreign sources. The increasing presence of foreign investors has helped stimulate the development of new products and services, while also creating more efficient markets. The formation of a capital market benefits for SMEs, entrepreneurs, and startups by; 1. Access to Capital: The capital markets provide entrepreneurs and startups with access to large amounts of capital quickly and at a low cost. This allows entrepreneurs and startups to finance their business operations, expand their production capacities, launch new products, and develop new markets without having to resort to traditional financing methods such as bank loans or venture capital investments. 2. Liquidity: Capital markets also provide SMEs, entrepreneurs, and startups with liquidity by providing them with an easier way to convert their company’s equity into cash in the form of shares. This makes it easier for entrepreneurs and startups to raise funds when needed, reducing their dependence on traditional financing sources such as loans or venture capital investments. 3. Valuation: By listing on the stock exchange, entrepreneurs and startups can also benefit from increased visibility and transparency, which can help them attract potential investors who are willing to pay a premium for their shares due to the increased liquidity in the market. This can help increase the valuation of the company’s equity, allowing the entrepreneur or startup to raise additional funds more easily if needed. 4. Exit Strategy: Finally, listing on a stock exchange provides entrepreneurs and startups with an easier way of exiting from their business when they want or need to do so. They can either sell their company’s shares on the public market or opt for a private sale of the entire company, which can provide them with greater control over how they exit from their business. In General The formulation of a capital market can provide several benefits to the country. Firstly, it can help to facilitate economic growth and development by providing access to long-term capital for businesses. This can enable businesses to invest in new projects and expand their operations. Secondly, the capital market can also provide access to financial resources for financing infrastructure projects, which may be necessary for economic development. Finally, the capital market can also act as a source of liquidity for Ethiopian companies, enabling them to raise funds quickly when they needed. All of these benefits could contribute to increased investment in Ethiopia and ultimately lead to economic growth. In my opinion, it may have numerous advantages for Ethiopia specifically for the accumulation of capital through increasing the value of savings, also it adds value to the effective and efficient functioning of the country’s financial system, it creates competition among financial institutions such as private and government-owned banks, insurances. You know Capital markets are very important for a country’s economic growth and job creation they finance the economy, allocate risk, and support financial stability in the country. In the developed world capital market huge contribution to the country’s economic growth, as an example USA capital market funds over 70% of all economic activity in the USA, in terms of equity and debt financing of non-financial corporations. Also, it gives a big opportunity for Startup, small and medium-sized enterprises, you know it rises capital may be provided by venture capitalists, angel investors, banks, insurances, micro-finance or other financial institutions and is often a large sum of money that covers. Yinebeb Bahru is a customer service officer at Awash Bank, and he’s passionate about technology, startups, innovation, Finance, research & development, and analysis writer. The writer can be reached at: [email protected]. The views expressed in this article don’t necessarily reflect the views of The Addis Insight.

Addis Ababa’s CO2 emission is 4-8 times higher than WHO standards

Addis Ababa’s CO2 emission is 4-8 times higher than WHO standards Ethiopia’s capital Addis Ababa, one of the member cities of the C40 Cities Climate Leadership Group (C40), has committed to actions towards halving their CO2 emissions by 2030, along with the 12 other African member cities. These cities are far from meeting the air quality standard set by the World Health Organization (WHO). The air quality in Addis Ababa, for instance, ranges from 22 micrograms per cubic metre (µg / m3) to 42 µg / m3. This means that Addis Ababa’s air quality is four to eight times higher than the WHO guideline threshold of safer health of 5 µg / m3. The city is affected by climate change and the risks of flood, drought and heatwave will increase in the coming years, findings from the City Vulnerability and Climate Risk Assessment showed. Addis Ababa’s greenhouse gas (GHG) emissions is projected to reach 32 million tonnes by 2030 and 78 million tonnes by 2050 from the current base of 19 million tonnes of CO2 equivalent in 2016, the city’s inventory and its projected emission in the climate action plan showed. C40 Air Quality Regional Technical Advisor Tibebu Assefa underlined that Mayors of C40 cities are committed to using an inclusive, science-based and truly collaborative approach to help the world limit global heating to 1.5°C and build healthy, equitable and resilient communities. The advisor added that Addis Ababa, along with the other African member cities, plans to achieve their 2024 goals using the following: Driving urban prosperity through increased and efficient use of renewable energy, Minimising waste and methane emissions through sustainable waste and sanitation management Increasing water security and resilience against water-related disasters through resilient and green infrastructure There are 13 active C40 member cities in Africa including Addis Ababa, Abidjan, Accra, Capetown, Dakar, Dar es Salaam, Durban, Ekurhuleni, Freetown, Lagos, Nairobi, Johannesburg and Tshwane. They have also pledged to create and begin implementing inclusive climate action plans consistent with their fair share of limiting global temperature rise to 1.5 degrees Celsius over pre-industrial levels, the ‘Climate Action Plan’ of Addis Ababa stated. “C40 mayors in Africa have demonstrated leadership and inspired others to act by signing onto various C40 Global Declarations,” said C40 Deputy Regional Director, Gifti Nadi. The deputy director pointed out that C40 mayors in Africa have engaged other non-C40 cities through other networks of which they are members, including the Global Covenant of Mayors, regional networks like the African Capital Cities Sustainability Forum or country networks, such as the Urban Energy Network in South Africa. “Mayors’ leadership roles have helped overcome barriers to change, such as the lack of data essential to developing the evidence-base to implement climate actions and drive the decision-making processes,” she added. Therefore, C40 is working with the city to address these issues through a variety of initiatives and projects. It is supporting the city government to monitor air quality and tackle climate change. It has prepared a Climate Action Plan for the city, has assisted in conducting CO2 emission inventory, monitoring of air quality monitors, training of experts and the like, noted Said Abdella, director of Addis Ababa’s Environment Protection Authority (Climate Change and Alternative Energy). “The air quality results of some monitors show the average PM2.5 in the city is higher than the national & global standard. The health impacts of the poor air quality associated to with mortality from both respiratory and cardiovascular diseases,” he said. On the other hand, the Ethiopian constitution Article 44 / 1 has stipulated: “All persons have the right to a clean and healthy environment.” In its resolution, the UN General Assembly (UNGA) has already recognised the right to a clean, healthy and sustainable environment as a human right. He underscored that the city is facing floods, reduction / fluctuation in rainfall, landslide, heatwaves, hot days / nights, among others. These result in damage in infrastructure, vector-borne diseases, water shortage and other problems. The director pointed out that his authority is striving to address the climate change mitigation and adaptation measures through mainstreaming in sectors of the city. Though the Air Quality Management Plan is prepared at the city level, requires skilled manpower and budget to implement it as well as creates awareness on both issues has been conducted at all levels using various means, he added. C40 is a network of mayors of nearly 100 world-leading cities collaborating to deliver the urgent action needed right now to confront the climate crisis. The major objectives of C40 include reducing urban carbon emissions, increasing resilience to the impacts of climate change as well as promoting sustainable urban development, alongside creating a future where everyone, everywhere can thrive. It was established to help cities reduce their greenhouse gas emissions and adapt to the impacts of climate change. Views expressed are the author’s own and don’t necessarily reflect those of Down To Earth. 1 COMMENT Asnake worku February 7, 2023 At 12:41 pm It is totally false. we don’t have that much industries, cars or other carbon emitting activities. That is exaggeration. It is totally false. we don’t have that much industries, cars or other carbon emitting activities. That is exaggeration. Comments are closed.

Ethiopian Airlines Inaugurates a second Aviation Academy Campus in Hawassa

Ethiopian Airlines Inaugurates a second Aviation Academy Campus in Hawassa Ethiopian Airlines Group, the largest aviation group in Africa, inaugurates a new aviation training center in the city of Hawassa. The new aviation training center in Hawassa will serve as the second campus for Ethiopian Aviation Academy and will currently be providing pilot trainee programs.The facility accommodates different types of classrooms, three training simulators, three aircraft parking and workshop hangars,  trainees’ and instructors’ dorm rooms, a cafeteria and sports ground for various sport types. Ethiopian Aviation Academy had been providing aviation trainings at its base campus in Addis Ababa to trainees from different parts of the world. The new training center will enable the academy to accommodate more trainees. Regarding the new Aviation Academy campus Ethiopian Airlines Group CEO Mr. Mesfin Tasew said “We are truly happy to see the inauguration of our Aviation Academy second training center in Hawassa. As Africa’s giant in the aviation industry, we are determined to reach more people who dream of becoming aviation professionals and enrich our continent with qualified personnel who will take Africa’s aviation to the next level. From the day it has been established more than six decades back, our aviation academy has been producing the best aviation professionals who are competitive at a global level. With our second training center open now, more trainees will have the chance to realize their dreams and that is a huge achievement for us.” He added, “Apart from the basic Aviation courses, the training center will be offering various customer service and leadership trainings for companies in Hawassa and South regional states, contributing for their success”. Ethiopian Aviation Academy (EAA) is the largest and most modern aviation academy in Africa recognized as ICAO regional Training Center of Excellence. The academy provides world class training in different areas of aviation profession. Currently the academy offers Pilot, Simulator, Cabin Crew and Catering, Aircraft Maintenance, Commercial and Ground Service and Leadership Trainings at its head quarter in Addis Ababa.

Visible gold struck in the first hole drilled at Segele

Visible gold struck in the first hole drilled at Segele Ethiopia-focused gold exploration and mining company Akobo Minerals has hit visible gold in its first drill hole at the third mineralization style, 140 m from the main Segele area in Ethiopia. Akobo said in a statement on February 3 that, following the recent announcement of the discovery of the third mineralization style, the exploration team continued work to understand the host structure by mapping and sampling. This work ultimately led to three trenches being dug where the host rock was uncovered. ADVERTISEMENT Following the trench work, the team developed the first drill hole which intersected 5 cm of mineralization with visible gold at 30 m downhole depth. However, the hole also intersected an artisanal (kofari) mining pit, where up to 1.5 m of potentially mineralized material had been mined in direct contact with the gold-bearing intersection. “Is this the next Segele? Only time will tell. But the fact that we are hitting gold in our first drill hole is very promising. Our exploration team will follow up on this target and many others in the near future,” Akobo Minerals CEO Jørgen Evjen said. ADVERTISEMENT Following this pleasing result, a second hole has already been started and will target the mineralisation about 5 m below the first intersection, the company said. The trenches have been examined in detail, providing the company with a better understanding of the structural geology that controls gold mineralization. The current drill programme will be adapted to target the structures in the host lithology based on these results. Akobo said that, if the current drill programme is successful, this mineralization will immediately be accessible for mining and it will be a direct addition to the mine life of Segele. Since the process plant and mine is already under construction, the lead times from discovery to extraction can be very short, Akobo said, claiming that mining could start as soon as the mineralization is defined and deemed economic. Moreover, the close proximity of the new discovery to the active mining area and processing plant would enable a swift assessment of economic factors and possible fast-track to production, the company said.

How’s Your Business Impacted by the New Excise Tax Amendment?

How’s Your Business Impacted by the New Excise Tax Amendment? By Tsegamlak Solomon What Impact Will the New Excise Tax Amendment Proclamation Have on Your Company? The parliament convened last week to ratify the proposed new excise tax amendment proclamation (Amendment Proclamation). Once enacted, the Amendment Proclamation will significantly impact the business community in general. Whether you are an investor with a duty-free privilege, a vehicle importer, a beverage producer, or a TikToker trying to make a living out of the entertainment business, the Amendment Proclamation affects you and your business in one way or another. We have briefly analyzed how the amendment impacts the business community in general. Why the Change? Before diving into the details of what changed, it would be good to understand why the amendment was necessary. The major purposes for the introduction of the Amendment Proclamation are: Reducing the exaggerated excise tax rate imposed on imported new vehicles and some other items; Imposing an excise tax on certain special tax and customs-duty-free privilege beneficiaries by taking into consideration the special nature of Excise tax; and Generate more revenue for the government How is Your Business Affected? For Investors: The fact that you are a duty-free privilege beneficiary doesn’t entitle you to an exemption from Excise Tax Certain actors in the economy are beneficiaries of a customs duty-free privilege. This may be due to two factors: (1) an international agreement to which the country is a signatory (such as goods imported into Ethiopia or purchased in Ethiopia by a diplomatic or consular mission, and others that are provided with privileges and immunities); or (2) the operation of the country’s laws, including the customs duty-free privilege given to investors on the importation of capital goods and construction materials for starting a new venture or expanding an existing one. In both cases, the customs-duty privilege is used to extend up to exemptions from excise tax. However, the Amendment Proclamation lifted that exemption, as a result of which investors importing excisable goods will now be required to pay excise duty despite the exemption from customs duty and VAT. This is associated with the nature of the excise tax. One of the primary goals of the excise tax is to discourage certain harmful habits, such as those that affect the environment. With this goal in mind, the drafters believe that being entitled to duty-free privileges should not be a basis for exemption from excise tax. Hence, the exemption of capital goods and construction materials from customs duty will no longer result in an exemption from excise tax, as the purposes of the two tax categories are different. For Tobacco, Alcoholic Drinks, and Sweet Producers: Your voices are heard at least to some degree Producers of tobacco and alcoholic beverages vigorously opposed the new Excise Tax Proclamation when it was adopted about three years ago, repealing its predecessor Proclamation No. 307/2002. The main reason was that the Excise Tax Proclamation imposed a non-creditable excise tax rate on such producers on items like tobacco, sugar, and pure alcohol in addition to the tax on the end product. This was done to discourage the consumption of tobacco products and alcohol in the country. The producers’ grievance was that this arrangement had a double taxation effect. This resulted in a surge in the price of such products immediately after the Excise Tax Proclamation came into effect. Photo © Dominic Chavez The industries in these sectors suffered from huge tax burdens, and the surge in the price of the products led to the producers not being competitive in the market, considering similar imported items are taxed only once when they enter the market. As a result, the Amendment Proclamation proposes that the tax rate for pure alcohol be reduced from 60% to 10% to rectify this challenge. In addition, candy and other sweet producers that use sugar as an input for their products used to pay 20% on the end product besides the excise that they paid on the input. The Amendment Proclamation proposes lowering the final product tax to 10% to lessen the burden, which is a positive development for those engaged in the sector. For Vehicle Importers: There is a New Reduced Rate on New Vehicles and a New Categorization of Vehicles Following the change to the excise tax in 2020, the excise tax levied on old vehicles was set at up to 500%, which made importing used vehicles out of the question. This was done to encourage people to buy new vehicles that are supposed to be environmentally friendly and fuel-efficient. Accordingly, the 2020 Proclamation imposed a tax rate of 5% on new vehicles with a capacity below 1300cc, and new vehicles above that capacity were taxed at a rate of up to 100%. The Amendment Proclamation changed that approach and classified new vehicles into four categories: (a) below 1500cc, (b) 1501cc – 2500cc, (c) 2501cc – 3000cc, and (d) above 3000cc. As a result, to make new vehicles with a capacity of at least 1300cc equally encouraged, the Amendment Proclamation brought down the excise tax rate for all new vehicle categories to 10%, 20%, 30%, and 60%, respectively. This entails a 5% increase for vehicles below 1300cc and a reduced rate for the rest. It is also to be recalled that the government recently issued a law that exempts electric vehicles from excise tax and other duties. If you’re a telecommunications service provider or rely on telecommunications services to operate your business, there is some bad news. The huge budget deficit the country is facing currently is not news. The budget deficit, combined with the country’s strained relationship with international financiers as a result of the war, forced the government to look inward and mobilize funds domestically. Although revenue mobilization is not the major purpose of the excise tax, it helps the government fill in some of its deficits. As a result, the Amendment Proclamation proposes a 5% excise tax be levied on telecommunication services, which include mobile and wireless telephone (internet, voice, and SMS). Your office internet and your employee’s mobile card allowance might increase as a result. Of course, this is in addition to the 70 million telecom service users who may be affected in the country. If you are in the entertainment business, you have positive news. Exemption of video cameras and television from excise tax is on the way Recognizing the flourishing entertainment industry on the one hand, which includes the growing number of TikTokers and YouTubers you pass by on the street, and the lack of adequate copyright protection on the other hand, mandated the government to craft an incentive scheme to support the sector. As a result, the Amendment Proclamation proposes that the government exempt video cameras from excise duty, which was previously set at 10%. Similarly, recognizing the role of television in educating and creating awareness in the public, the excise levy on televisions is also exempt from what used to be a 10% excise levy.

CBE Introduces Digital Foreign Currency Remittance Service: EthioDirect

CBE Introduces Digital Foreign Currency Remittance Service: EthioDirect The Commercial Bank of Ethiopia (CBE) has unveiled a new digital foreign currency remittance service named EthioDirect. This move by the CBE is aimed at modernizing the process of money transfers and making it more accessible and convenient for customers. According to Ato Abe Sano, the President of CBE, the platform has been designed to offer a safe and secure method of digital money transfer. The app is free to use and allows customers to send remittances from anywhere, at any time, using international payment cards such as Mastercard and Visa. Customers can send money through the EthioDirect app by downloading it from either the App Store or the Play Store and installing it on their mobile phones. The money sent will be directly deposited into the recipient’s bank account and can either be deposited into their CBE Birr wallet or picked up at a nearby CBE bank branch. Tags benefits commercial bank of Ethiopia digital foreign currency remittance EthioDirect financial service international payment cards Mastercard mobile device Money Transfer risks safe secure Visa

Ethiopian Airlines Ups Accra Schedule As Part Of Wide African Expansion

Ethiopian Airlines Ups Accra Schedule As Part Of Wide African Expansion Ethiopian Airlines is in expansion mode. Not just in terms of long-haul routes to Copenhagen, returning after two decades, or Addis Ababa to Atlanta. Crucially, it has boosted flights on various sub-Saharan African routes. This is primarily part of its third-wave growth, increasing connectivity, choice, and competitiveness. The Star Alliance airline has also enhanced service on routes that leave Addis Ababa at peak times, with higher frequencies and de-linked options. Here’s a summary of its recent changes. Accra grows to 11 weekly this summer For about the past decade, Ethiopian Airlines has served Accra daily. Some 2,682 miles (4,317km) from Addis Ababa, it leaves Ethiopia at 08:40, enabling it to be fed by vast amounts of flights from across North America, Europe, Asia, the Middle East, and parts of southern and eastern Africa. It arrives home at 21:00 to feed flights to those places. This summer, Addis Ababa-Accra grows to 11 weekly. According to OAG data, this is the first time since 2009 that frequency has exceeded daily. However, unlike then, when some flights were routed via Lomé, all 11 weekly services are non-stop in both directions. Accra’s new flight schedule From the end of March, its new schedule is as follows, with all times local. Notice how it is ‘split,’ enabling greater connectivity by focusing on particular flight waves. For example, Ethiopian’s 07:30 arrival into Addis allows passengers to continue to Dubai, Guangzhou, Tel Aviv, and 20+ cities in Africa. Its 14:15 arrival means Delhi, Istanbul, Mumbai, Tel Aviv, and more are linked, along with seven in Africa. Addis Ababa to Accra: ET927, 01:40-04:40 (6h block time); 737 MAX 8 ← new; Mondays, Thursdays Addis Ababa to Accra: ET921, 08:40-11:20 (5h 40m); A350-900; daily Addis Ababa to Accra: ET929, 17:00-20:00 (6h); 737 MAX 8 ← new; Tuesdays, Fridays Accra to Addis Ababa: ET926, 05:20-14:15 (5h 55m); 737 MAX 8 ← new; Mondays, Thursdays Accra to Addis Ababa: ET920, 12:20-21:00 (5h 40m); A350-900; daily Accra to Addis Ababa: ET928, 22:35-07:30 (+1) (5h 55m); 737 MAX 8 ← new; Tuesdays, Fridays

2.5 Billion Birr Hotel: Haile Hotels and Resorts Inaugurates New Addis Ababa Hotel

2.5 Billion Birr Hotel: Haile Hotels and Resorts Inaugurates New Addis Ababa Hotel The Haile Grand Addis Ababa Hotel, built by the Haile Hotels and Resorts Group, was officially inaugurated in October. The hotel, which is located in Addis Ababa and is the group’s eighth hotel, faced obstacles during construction, including the cost of equipment and the challenging topography of the site. Despite these challenges, the hotel was successfully completed and cost more than 2.5 billion birr. The Haile Grand Addis Ababa Hotel offers 157 bedrooms, bars and restaurants, a cultural food hall, and 8 meeting halls, and can park 200 vehicles. The hotel has created 450 permanent and temporary jobs, including training for 120 new graduates. The hotel’s official inauguration ceremony was attended by Major Athlete Haile G/Salase. Additionally, it is reported that the Haile Hotels and Resorts Group is planning to open a resort in Sodo city in August and expand its branches in other countries in the future. The hotel is a great addition to Ethiopia’s hotel and tourism industry and is expected to attract many visitors to the area.