Will “African Lion” Ethiopia sustain fast growth?

Kenyan media outlets have it well covered recently that Ethiopia is about to overtake Kenya and become the leading economy in East Africa.

Building on decade-long double-digit growth catalyzed by enormous government spending on infrastructure, the size of the Ethiopian economy, in terms of Gross Domestic Product (GDP) measurements, will reach 69.2 billion U.S. dollars, according to projections the International Monetary Fund (IMF) made for 2016. In 2015, its GDP stood at 61.6 billion dollars.

Kenya’s GDP, on the other hand, is expected to rise to 69.1 billion U.S. dollars in 2016, up from 63.4 billion dollars in 2015.

If the projections turn out to be true, Ethiopia, hailed by pundits as an “African lion”, will surpass Kenya. Though the possible win would be by a small margin, Kenyans have echoed that Ethiopia is surely becoming a new superpower in the region.

It is not hard to understand why the possibility of Ethiopia coming at the forefront has caused a stir among Kenyans.

Back in 2000, Kenya had a 70 percent lead over Ethiopia. Kenya’s GDP then stood at 14 billion U.S. dollars while Ethiopia’s output was somewhere around 8 billion dollars.

Following the vigorous economic progress the government of Ethiopia has been able to spin over the years, however, the country has managed to catch up with Kenya and close the gap.

BOOMING FOREIGN DIRECT INVESTMENT

An important contributing factor behind Ethiopia’s quick ascension both the IMF and the African Development Bank (AfDB) suggest is the robust foreign direct investment (FDI), complementary to the government’s huge investment.

According to the Ethiopian Investment Commission, China leads the foreign investment pack followed by Turkey and others.

David Shinn, former U.S. Ambassador to Ethiopia, who actively follows events about the relationship of China and Ethiopia, wrote on his blog that in 2014 China’s investment in Ethiopia reached a cumulative one billion U.S. dollars.

The diplomat went on to point out that the trade and investment relations the two countries have established over the course of the years registered a booming growth.

For instance, Shinn said “in 2000, China-Ethiopia trade was only 88 million U.S. dollars. Since 2006, China has been Ethiopia’s largest trading partner. Trade exceeded 2 billion U.S. dollars in 2013, although the trade balance heavily favours China. One of China’s six special economic zones in Africa has been established in Ethiopia.”

The diplomat also noted that Chinese companies are building most of the roads in Ethiopia. For example, the first phase of the Ethio-Djibouti railway project, the telecommunications infrastructure, and the light rail system in Addis Ababa. By 2014, the cumulative value of Chinese contracted projects exceeded 22 billion U.S. dollars, Shinn said.

DAUNTING CHALLENGES

Though steady FDI inflows have enabled Ethiopian economy to develop in a progressive manner, there are doubts over whether the country can sustain growth for long, what with the country’s political, social and climate challenges.

The buildup of the political discontent has led to clashes and deaths. Despite a six-month state of emergency announced last October, worries over whether the government can properly address anger over land and other rights still linger.

The incidents have affected foreign businesses as many companies were looted and set alight. The country’s FDI is expected to suffer a blow if the situation drags on.

In addition to the political frictions, the ongoing droughts and harsh climate conditions have significantly burdened the economy, forcing the government to shift considerable resources from economic activities to emergency aids.

Back in 2015 to 2016, some 10 million people in Ethiopia, 10 percent of the population, was in need of emergency food aid. The country was forced to import 1.6 million tonnes of wheat and lifesaving supplements.

This year again, some five million people have fallen short of food and require 950 million U.S. dollars emergency food aid.

The government of Ethiopia has been looking for donors and calling the international community for assistance, which, in many instances of the drought season, ended up short of expectations.

Also, the country has to do more in reducing the prevalence of poverty in absolute terms.

According to the World Bank, some 22 million people in Ethiopia are believed to be currently living under absolute poverty level.

GROWTH POTENTIAL

Despite these challenges, the Ethiopian economy remains buoyant and growth projections of the World Bank and the IMF indicate more positive outcomes for the years to come.

Both institutions agree that Ethiopia will maintain fast economic growth, with a projected annual rate at seven to nine percent.

Though Ethiopia may grow faster, it is not the richer of the two, as its per capita GDP remains way below that of Kenya.

The current GDP per capita stands at 686 U.S. dollars, with a possibility of reaching 759 dollars this year, whereas Kenya’s GDP per capita hangs around 1,434 dollars and is expected to increase to 1,500 dollars by the end of 2017.

One of the reasons is the growing demographic pressure Ethiopia has to live with.

Ethiopia, the second most populous nation on the African continent, has an estimated population of 100 million, doubling that of Kenya.

Ethiopia’s big population, however, is considered a blessing in disguise. Many investors see huge consumer base and market potential, which can shore up Ethiopia’s future growth. Enditem

Source: Birhanu Fikade, Xinhua/NewsGhana.com.gh

Ethiopia’s Sugar Revolution Has Attracted A New Investor: Aliko Dangote

Dangote Sugar Refinery general meeting, May 23, 2014. Photo: CKNNigeria.com

Aliko Dangote, CEO of Nigeria’s massive Dangote Group, said he wants to diversify his investments in Ethiopia, and he’s looking at sugar production.

Ethiopia produces enough of its own sugar to stop importing it this year and start exporting it — a turnaround that the government describes as revolutionary.

Newly constructed sugar refineries Omo Kuraz I and II and Beles I are scheduled to begin production this month. Construction is also planned for 10 new sugar factories, according to Girma Amente, Minister for Public Enterprise, Fana Broadcasting Corp reported.

The country is expected to have 13 large sugar factories by 2020, according to Ethiopian Sugar Corporation.

Ethiopian sugar production is meeting local demand with some surplus production expected this year, Ethiopian Herald reported.

Until recently, the country imported some 200,000 metric tonnes of sugar a year for local consumption.

“Our production capacity had not been over 400,000 metric tonnes before. But now due to expansion … and the new factories that will get fully operational this year, the nation will have a capacity to produce 700,000 metric tonnes of sugar this year,” said Gashaw Aychlum, spokesman for the Ethiopian Sugar Corp.

With this capacity the country no longer needs to import sugar, Aychlum said. “We could say the nation is in a state of ‘sugar development revolution.'”

Sugar is where Africa’s richest man cut his teeth. As a merchant in Nigeria, Dangote spent years importing Brazilian sugar. After a trip to Brazil in the mid-1990s, he shifted his focus down the value chain into agro-processing and manufacturing, Global Risk Insights reported.

It was only natural that (Dangote’s) first commissioned facility would be a sugar refinery. Coming online in 2001 and supported by his own 200,000-hectare sugar plantation, the refinery has expanded to become one of the largest refineries in the world.

Active in Ethiopia since 2015, Dangote Cement has been importing bags into Ethiopia to package its products. The business tycoon said that he plans to establish an Ethiopian packaging facility in few months as part of his efforts to diversify, Ethiopian News Agency reported in 2Merkato.

“We are also looking at the possibility of looking at other areas, sugar and others, mainly agriculture, which we now discussed with government to move forward,” Dangote said.

How big is Dangote group?

Four of Dangote’s companies listed on the Nigerian Stock Exchange have a market cap equal to 43 percent of the total of equities listed as of Dec. 23, 2016, LeadershipNG reported. The remaining 57 percent of market cap is controlled by 180 companies.

The four listed Dangote companies include Dangote Cement Plc, Dangote Sugar Refinery Plc, NASCON Allied Industries Plc and Tiger Branded Consumers Goods Plc.

“Aliko Dangote, Africa’s most successful businessman built his fortune in sugar, textiles, and cement,” Bloomberg reported.

In Nigeria, Dangote Sugar Refinery produces 800,000 tonnes of sugar a year, and is the major supplier of sugar to Nigeria’s soft drink companies and breweries. Expanding into other African countries, the salt, sugar and flour manufacturing companies under Dangote Group are active in 15 other African countries.

As of today, Dangote has a net worth of $12.4 billion, according to Forbes. He’s Africa’s richest billionaire, and ranked No. 51 among all billionaires in 2016. He’s been Africa’s richest person six years in a row, despite a drop in net worth during 2016 as Nigeria’s currency weakened and its economy struggled, according to Forbes.

Sugar key to reducing Ethiopian unemployment

Sugar development is seen as key to reducing unemployment in Ethiopia. So far, the sugar industry has provided jobs for more than 350,000 Ethiopians, according to Ethiopian Herald. It’s expected to create 600,000 more jobs by the end of 2020.

The sugar industry until now has been concentrated in a few areas, but it’s being decentralized with new factories in states including Tigray, Amhara, Afar and Oromia, Aychlum said.

The government said it has been building dams and other irrigation infrastructure for new sugar development projects in remote areas devoid of infrastructure and social service institutions.

“Building a single sugar factory is like building a town,” Aychlum told the Ethiopian Herald.

Dangote is entering the Ethiopian sugar industry at a time when the government is just starting to reach out to foreign partners.

Dangote’s model from the start has been “to dominate sectors protected from new entrants, and to use scale and his trucking and distribution system to drive prices down to levels that let him crush domestic rivals. He has pursued success with single-minded focus, and has many critics,” CNBC reported. Read more here

Bole International Airport Expansion Project Forty Percent Complete

Bole International Airport Expansion Project Forty Percent Complete

December 25, 2016 - The Ethiopian Airports Enterprise (EAE) launched expansion project for Addis Ababa Bole International Airport passenger terminal in January 2015. The project is now 40% complete. The project includes the expansion of Terminal 1 and 2 and the construction of a new VIP Terminal.  The expansion project aimed at building a new terminal with a floor area of 74,000sqm. The existing terminal has a floor area of 30,000sqm. The new terminal will have three floors—arrival, departure and ground floor. The expansion of Terminal 2 is being undertaken on the left and right side of the existing Terminal 2. On the right side Terminal 2 will be expanded and connected to Terminal 1 (old terminal) where regional and domestic flight passengers are hosted. The VIP saloon is also located in Terminal 1.

The new modern VIP Terminal will be built on the far right side of Terminal 2 or next to Terminal 1. A bridge and modern car parking is also part of the giant expansion project under way at a cost of 345 million dollars, a loan funneled by the Export Import Bank of China (EXIM Bank of China).

The new terminal is designed by a renowned Singapore architectural firm CGP while the Chinese construction firm, CCCC, is the contractor. ADPI, a French company, is the consultant of the project.

The existing main terminal, which was inaugurated in 2003, has a designed capacity of handling 6 million passengers per year. Due to the increasing passenger traffic the terminal is now handling 8.5 million passengers and the airport is congested in peak hours. When the expansion project is completed the airport can handle 22 million passengers, yearly.

Hailu Lemu, chief engineer of the project, told The Reporter that 40 percent of the expansion project is completed as of December 11. Hailu said 98 percent of the concrete work is completed and the steel structure work is being undertaken. “Forty percent of the steel structure work is completed. We will soon launch the curtain wall work and then start the electro mechanical work,” Hailu said.

Hailu said that various airport specialized equipment like baggage handling system, fire fighting system, boarding bridges and access control system are being manufactured and assembled in the UK and China. “After completing the curtain wall and roofing work we will start the electro mechanical work,” Hailu told The Reporter.

The terminal will have a large shopping area, café and restaurants, business class lounges, IT center and offices. The expansion project is scheduled to be completed by January 2018.

Source: Reporter

Ethiopia bids to become wind capital of Africa

(CNN)After a decade of rapid growth, Ethiopia's bubble is not bursting.

Dubbed the 'African Lion' by economists, Ethiopia is the home of booming industry, new infrastructure, and showpiece summits. It has become a powerful force in the region and beyond.

To maintain this golden age, the East African state is pressing ahead with ambitious development plans, and renewable energy is core to the mission.

Ethiopia was among the most daring signatories to the Paris Agreement on climate change, committing to cut carbon emissions by 64% by 2030. The government has ploughed billions of dollars into hydropower megaprojects such as the Grand Renaissance Dam -- which will be the largest dam in Africa -- and the freshly-inaugurated Gibe III Dam.

The next target is to become the wind power capital of Africa.

Read more here

Ethiopian Airlines to launch Singapore service

Ethiopian Airlines will launch nonstop flights from Addis Ababa to Singapore, one of the South East's most important commercial, financial and even aviation hubs, on June 2, 2017.

The flights will be operated with a two class Boeing B787 Dreamliner and leave Addis Ababa every Monday, Wednesday, Thursday, Friday and Sunday, returning to Ethiopia the following day.

Both departure from ADD and return to ADD are timed to open up the almost entire African network of Ethiopian Airlines with connections into Eastern, Western, Central and Southern Africa.

The airline's CEO, Mr. Tewolde Gebremariam said when making the announcement: 'In our continuous effort of connecting the continent of Africa with its major trading partner around the world through direct services and with the youngest fleet of modern airplanes, we are glad that we are able to offer a direct and non-stop services to the Lion City, Singapore, a global aviation center and a preferred gateway to Asia and Australia. Our direct and non stop flights will serve the growing traffic between Africa and Singapore, giving the best possible connectivity options to passengers traveling between most points in Asia and Africa, in partnership with fellow Star member, Singapore Airlines. Moreover, our customers can now enjoy the ultimate travel experience on board Ethiopian Dreamliner; unparalleled comfort with less noise, biggest windows in the sky, higher ceiling, unique lighting and higher humidity. Ethiopian flights to Singapore will also greatly contribute to the strengthening of trade, investment, and tourism ties between a booming Africa and a highly developed, innovative, and business-friendly Singapore'.

Ethiopian Airlines, the erstwhile Pan African carrier, serves 50 destinations across the continent and continues expanding both in Africa as well as across the world. Read more here

Ethiopia seizes yet more power with 1.8GW super-tall dam

Ethiopia has inaugurated Gibe III, the biggest hydroelectric dam in the country with an installed capacity of 1,870 MW and the tallest of its kind in the world.

Built by Italian contractor Salini Impregilo, it will almost double the eastern African country’s electricity production as it strives to modernise its economy and become a regional energy hub, Salini Impregilo said on 17 December.

“What was considered a dream – after years of hard work – has now become a reality”– Pietro Salini, Salini Impregilo chief executive

Located on the Omo River 450km southwest of the capital Addis Ababa, the dam is the latest in a series being built by the country to harness its vast water supply. As the source of a number of rivers including the Blue Nile flowing from its mountains, Ethiopia is known as the “Water Tower of Africa”.

Ethiopian Prime Minister Hailemariam Desalegn presided over the inaugural ceremony of the €1.5bn project.

“This is a very special day for Salini Impregilo and in particular for me,” company chief executive Pietro Salini said in a speech. “What was considered a dream – after years of hard work – has now become a reality.”

Gibe III will generate up to 6,500 GWh of electricity a year, increasing the country’s production capacity by at least 80%. It is an extension of a greater complex that includes two other hydroelectric dams: Gibe I and Gibe II.

These three dams, along with the Grand Ethiopian Renaissance Dam (GERD), also being built by Salini Impregilo, are part of Ethiopia’s ambitious plan to arrive at a generation capacity of 40,000 MW by 2035.

Gibe III is the first dam in Ethiopia to be built using roller-compacted concrete (RCC). Standing at 250m, it is the tallest of its kind in the world, Salini Impregilo says. Its crest length is 630m.

The volume of concrete used to build the dam totalled 6.2 million cubic metres, two and a half times the amount of material used for the Great Pyramid of Giza in Egypt. The water reservoir created by the dam holds 15 billion cubic metres, equal to half the volume of Lake Tana, the largest in Ethiopia.

Gibe III has 10 Francis turbines with a combined capacity of 1,870 MW – the same amount produced by two nuclear power plants.

Its construction created jobs for 20,000 Ethiopians during various phases, while technical experts from 32 countries took part.

Image: Gibe III is the first dam in Ethiopia to be built using roller-compacted concrete, and is the tallest such dam in the world (Salini Impregilo) 

Read more here

Ethiopia Inaugrates Omo River Hydro Power Plant

Ethiopia Inaugrates Omo River Hydro Power Plant

December 16, 2016 - Ethiopia inaugurated on Friday a 1.5-billion-euro ($1.57 billion) hydropower plant along the Omo River in the country's south that will nearly double total electricity output to 4,238 megawatts (MW), according to Reuters.

With a capacity of 1,870 MW, Gilgel Gibe 3 - built by Italian construction firm Salini Impregilo SpA - is expected to boost the Horn of Africa country's nascent manufacturing sector as well as electricity exports to neighbouring nations.

Work on the plant began in 2006 but its completion was delayed partly due to funding constraints. In the end, China's Export-Import Bank stepped in to fund 60 percent of costs via a loan while the government covered the remaining amount.

Under a 2015-2020 development plan, Addis Ababa wants to raise output to 17,346 MW by harnessing hydropower, wind and geothermal sources.

It has an array of projects under construction, including the $4.1 billion Grand Renaissance Dam that will churn out 6,000 MW upon completion.

In March Addis Ababa also announced plans to build a new 2,000 MW hydropower dam also on the Omo river.

Ethiopia is bidding to become a continental manufacturing hub, and hopes the projects will resolve power outages that have been hampering economic activity in the nation of some 90 million people.

The country already exports electricity to neighbouring Kenya, Sudan and Djibouti, and has signed agreements with Tanzania, Rwanda and South Sudan, as well as Yemen.

Source: Reuters

African Development Bank lends $159 mln to Ethiopian Airlines

ADDIS ABABA, Dec 15 (Reuters) - Ethiopian Airlines will get a $159 million loan from the African Development Bank to help finance an expansion plan that includes doubling the size of its fleet and increasing its revenue to $10 billion over the next decade.

The state-owned carrier has around 80 planes, including Boeing 787 Dreamliners and Airbus A350-900 jets, and has 50 aircraft on order. It is considering buying either the 366-seat Airbus A350-1000 or Boeing's 777x long-haul jet.

"The Bank's support will allow Ethiopian Airlines to keep the momentum on its expansion plan and be on track on its route operating roadmap," the AfDB said in a statement on Thursday.

Ethiopian Airlines was ranked the largest in Africa by revenue and profit by the International Air Transport Association (IATA) last year, with revenue of 49.4 billion birr ($2.22 billion) in the 2014/15 fiscal year exceeding a 43 billion birr target. It wants to increase revenue to $10 billion in ten years time.

It attributed the growth to a rise in passenger numbers and to an expansion of maintenance, catering and aviation training services. ($1 = 22.2600 birr) (Reporting by Aaron Maasho; Editing by Elias Biryabarema and Alexander Smith) Read more here

Gibe III to be Inaugurated on Saturday

Construction of Gilgel Gibe III, one of Ethiopia’s hydroelectric dams, has been concluded and it will officially be inaugurated next Saturday.

According to Chief Executive Officer of Ethiopian Electric Power (EEP), Engineer Azeb Asnake, the construction of the dam started 9 years ago and it is built at an outlay of 1.5 billion Euros.

The construction was financed by the Ethiopian Government and Export-Import Bank of China (China EXIM Bank). Loan from the bank covered 60 percent of the cost while the Ethiopian Government covered the rest.

The construction was undertaken by the Salini Construction Private Limited Company. The same Italian firm is also constructing the Grand Ethiopian Renaissance Dam.

Gilgel Gibe III has a height of 243 meters and has a total storage capacity of 15 billion cubic meters. it also has a total installed capacity of 1,870 megawatts wit 10 Francis turbines each generating 187 megawatts.

Nevertheless, not all of the turbines are generating power as the dam has retained only some water. The turbines would commence generating power with full power through process, Azeb explained.

When the power plant goes operational, it boost Ethiopia’s installed generating capacity to 4,200 megawatts.

Currently the Gilgel Gibe III is generating 900 megawatts ahead of its inauguration, Azeb noted. This has enabled the nation to fill the gap created by the impact of El Nino, she furthered.

According to Engineer Mebratu Teshome, Project Site Coordinator of the dam, Ethiopians have acquired knowledge and experiences that would allow them to build similar projects in the future.

Source: Fana Broadcasting Corporate

New Bus Depot for Ethiopia’s Capital

Ethiopia launched construction of a new bus depot – dubbed Shegole Bus Depot – in its capital city, Addis Ababa. The construction is estimated to cost half a billion Birr.

According to Addis Ababa City Administration Transport Programs Coordination Office, the depot is going to be constructed over 52,000 hectares of land. The depot is said to also have garage and fuel station.

It is scheduled that the construction of the depot will be finalized in 21 months.

The construction is going to be carried out by China State Construction Engineering Corporation (CSCEC).

Source: Fana Broadcasting Corporate

Ethiopia records slow economic growth

For the first time in decades, Ethiopia’s economy has recorded its slowest growth.

According to the BBC, economic growth in the country slowed to 8% in the 2015/2016 fiscal year.

Ethiopia’s planning commission says that the country may fail to reach this years projected growth of 11% due to a devastating drought that has affected harvest in most parts of the country.

Earlier this year, The International Monetary Fund (IMF) had warned that Ethiopia’s economy would shrink to 4.5%, but the government dismissed the figures saying that growth would reach 8% .

Analysts predicted that recent protests in the Oromia and Amhara regions which saw dozens of foreign owned firms attacked by protesters could further dampen growth in the country.

Ethiopia has been one of the world’s fastest growing economies with growth averaging 10% over the last 10 years. Read more here

Enat Bank Made 79 Million Birr

Enat Bank S.C., one of the private banks in Ethiopia, made a net profit of 79 million Birr in the past fiscal year. The performance of the bank shows a 59 percent increase when compared to the preceding year.

The gross profit of the bank was 211 million Birr, which is a 57 percent increase from the preceding year.

The bank’s paid up capital also reached 565 million Birr from 383.3 million Birr. This enabled it to attain the minimum paid up capital requirement set by the National Bank of Ethiopia (NBE).

In the past fiscal year Enat Bank managed to distribute a total loan and advances of 1.6 billion Birr to its customers. Its asset has also reached 3.2 billion Birr from 2.21 billion Birr. Enat has also managed to
increase its deposit mobilization to 2.3 billion Birr from 1.5 billion Birr.

In addition to these, Enat has managed to benefit 544 women through its non-collateral loan scheme.

Established in 2011, 60 percent of Enat Bank’s shareholders are females.

Source: Fortune

Tigray to Build Agro-Processing Industrial Park

State of Tigray, one of the 9 states of Ethiopia, disclosed it is going to construct an Agro-processing industrial park. The park is expected to be constructed at an outlay of 2.3 billion Birr.

According to Tigray State’s Industrial Park Cooperation Executive, Anteneh Zewde, the park is going to be constructed at Ba’eher city, which is located in Western Tigray Zone.

Anteneh explained the construction would be undertaken on 1,000 hectares plot of land. The construction would start once Mahindra, an Indian firm, finishes the design of the park within a month, he added.

200 agro-processing industries were expected to be housed at the park, Anteneh noted.

According to the Executive, the entire cost is going to be covered by the State of Tigray. Out of the 2.3 billion Birr, 800 million Birr has already been allocated for the construction.

Source: Fana Broadcasting Corporate

'Turkish investors creating 10,000 jobs in Ethiopia'

ANKARA

Ethiopia’s ambassador to Turkey has told Anadolu Agency how Turkish investors have created more than 10,000 jobs, with companies up and running in the east African nation often dubbed the “Cradle of Mankind”.

Speaking in Ankara this week, Ambassador Ayalew Gobezie pointed to a deep-rooted history between Turkey and Ethiopia which allowed the two countries to grow financially and politically.

The ambassador highlighted the beginning of relations between Ethiopia and Turkey which go back to the Ottoman Empire.

“The date goes back to 1896, when the Ottoman Empire was ruled by Sultan Abdul Hamid II and Emperor Menelik II ruled the Ethiopian Empire,” said the envoy. “The first Ottoman-Turkish consulate was opened in Ethiopia in 1912.”

Turkey’s first embassy in Sub-Saharan Africa was opened in Ethiopia in 1926.

Gobezie said: “There have been frequent visits by high-level government officials to the two sisterly countries.

“We can say that Ethiopia and Turkey have excellent bilateral relations which are characterized by ever-growing economic and political ties based on common understanding and mutual respect.”

The ambassador added that the leadership of both states were “fully committed to strengthening” already-existing bilateral relations.

Gobezie recalled the visits to Turkey by the late Prime Minister of the Federal Democratic Republic of Ethiopia Meles Zenawi in 2007 -- who died in August 2012 -- and current president Mulatu Teshome in August 2015.

Turkish President Recep Tayyip Erdogan and Economy Minister Zihat Zeybekci visited the country back in January 2015, with a number of high-level officials and business people.

“Turkish investor companies like Ayka Addis and BMET Cable, with several others, have set up various investment activities in our country,” said Gobezie.

“Currently, many Turkish companies have started their production and created more than 10,000 permanent jobs for Ethiopian citizens and their total capital reaches to $3 million,” he added.

The envoy highlighted the country’s youthful demographic, saying half Ethiopia’s 100-million-strong population is aged between 15 and 30.

“More than 25 million children in Ethiopia are in primary schools,” Gobezie said. “Most African countries are populated by around 20 million.”

The envoy said the high proportion of young people had created a “challenge” to create jobs. Ethiopia’s unemployment rate is around 70 percent.

$400 million trade with Turkey

Gobezie also said trade-cooperation between Turkey and Ethiopia was growing and trade volume had reached over $400 million according to 2015 data.

“Our main exporting products are coffee, sesame, oil seeds, flower, spices, pulses, cereals, textile garments, leather and leather products,” said the envoy.

“Almost half of the investments that are coming to Ethiopia are made by Turkish investors,” Gobezie added. “Ethiopia benefits more from Turkey and currently needs more investment from Turkish companies."

The ambassador also stressed Ethiopia’s cultural richness, including 10 historic and cultural world heritage sites recognized by UNESCO.

“We were also awarded with ‘World Best Tourist Destination Award’ for 2015,” the envoy added, calling on Turks to visit the country.

Despite many promising aspects aside, Ethiopia -- like Turkey – is also facing a state of emergency.

In October, the state declared a state of emergency following months of anti-government protests and unrest in the Oromia region.

The envoy said domestic protests had arisen from economic issues and said the government was currently trying to take different measures.

“Given the appalling actions of the destructive forces on the lives of people, damaging investment projects and infrastructures, the government was obliged to declare the state of emergency,” Gobezie said, adding the country had been able to restore law and order.

Ambassador Gobezie said business in the country “can be conducted as usual” and a ban on diplomats traveling in the country without permission had been lifted.

Despite the unrest, Ethiopia has achieved seven of eight UN Millennium Development Goals and witnessed double-digit economic growth. Real GDP growth in Ethiopia averaged 10.9 percent between 2004 and 2014.

The country is currently developing hydro-electric, solar, wind and geothermal energy projects. It is also working on sugar, railway, road and industrial park projects with the aim of creating job opportunities for more than 1.2 million people.

Ethiopia has set itself the goal of being a middle-income country by the year 2025.

Read more here

Oilseeds, Pulse and Spice Export Hit by Global Prices

Ethiopia’s export revenue from oil seeds, pulses and spices took another hit for a third consecutive year as global price falls. The export revenue suffered from the consistent global prices fall which the Ministry of Trade (MoT) and commodity exports plan to avert it by expanding export volume and meeting export targets.

According to Assefa Mulugeta, Director General of the Export Promotion Directorate General at the Ministry, even if the production volume of oilseeds, pulses and spices has increased, the international market has hurt the export performance.

Oilseeds brought 472.6 million USD which is almost 20 percent of the total export earnings of Ethiopia. The performance is of the oilseeds export subsector registered a 37 percent rise in the same period. Yet the improvement in earnings is not as pronounced.

According to The Reporter, compared to the year previous to it, the revenue has failed by 6.24 percent in 2015/2016 fiscal year.

It was only in 2013/2014 that the export of oil seeds, spices and pulses outperformed coffee export and generated 919.9 million USD. The performance made Ethiopia the second largest exporter next to India. During the same year, Ethiopia was the fourth biggest producer in the world.

Source: The Reporter

አዋሽ ባንክ በአዲስ ዓርማ ሊመጣ ነው

ስያሜውንም ያሻሽላል

ከደርግ ውድቀት በኋላ የፋይናንስ ኢንዱስትሪው ለግል ዘርፉ ሲከፈት የመጀመሪያው የግል ባንክ በመሆን ኢንዱስትሪውን የተቀላቀለው አዋሽ ኢንተርናሽናል ባንክ ነው፡፡ ከአዋሽ ኢንተርናሽናል ባንክ በኋላ ኢንዱስትሪውን የተቀላቀሉት አብዛኛዎቹ ባንኮች ከዋናው ስያሜያቸው ቀጥሎ ‹‹ኢንተርናሽናል›› የሚለውን በማከል እየተጓዙ ነው፡፡

በኢትዮጵያ ወደ ስድስት የሚሆኑ ባንኮች ከዋና ስያሜያቸው ቀጥሎ ‹‹ኢንተርናሽናል›› የሚል ቅጥያ እየሰጡ ኢንዱስትሪውን ተቀላቅለዋል፡፡ አሁን አሁን ደግሞ ከስያሜያቸው ጋር ተያይዞ ኢንተርሽናል የሚል ቅጥያ ማከል ብዙም ትርጉም ያለው አይደለም እየተባለ ነው፡፡ በዓለም ላይ የሚታወቁ የፋይናንስ ተቋማት በዓለም አቀፍ ደረጃ እየሠሩ ኢንተርናሽናል የሚል ቅጥያ የላቸውም፡፡ በቀደመው ጊዜ ኢንተርናሽናል የሚል ቅጥያ የነበራቸው ሳይቀሩ ይህንን አውጥተው ስያሜያቸውን በአጭር እየገለጹ መምጣታቸው፣ የንግድ ሥራቸውን እያቀላጠፈላቸው ስለመሆኑ በጉዳዩ ላይ የተደረጉ ጥናቶች ያመለክታሉ፡፡

እንደ ሲቲ፣ ኮሜርስና ሌሎች በዓለም አቀፍ ደረጃ የሚታወቁ ባንኮች ዓርማና ስያሜ እንደ ምሳሌ በማንሳትም የስያሜና ዓርማዎች ግልጽና አጭር መሆናቸውን በዘርፉ ጥናት ያደረጉ ኩባንያዎች ይመክራሉ፡፡

በአሁኑ ወቅት ስያሜዎችና ተቋማቱ የሚገለገሉባቸው ዓርማዎች ከጊዜው ጋር መራመድ ያለባቸው ካልሆኑ፣ ተወዳዳሪነታቸውን ይገድበዋል ወደሚል አስተሳሰብ እየተገባም ነው፡፡

ከዚህ አንፃር የስያሜና የዓርማ አመራረጥ እንደ ኢትዮጵያ ባሉ አገሮች ብዙም የሚተኮርበት ባይሆንም፣ አንዳንዶች ጠቀሜታውን በመረዳት በጥናት ላይ የተመሠረተ ስያሜና የዓርማ ቀረጻዎች እያደረጉ ነው፡፡ ለምሳሌ ንብ ኢንተርናሽናል ባንክ ሲጠቀምበት የነበረውን ዓርማ መለወጡ ይታወሳል፡፡ ቀድሞ የነበረውን ዓርማ በአዲስ ለመለወጥ ያስፈለገበት ምክንያት፣ በቀላሉ ሊያዝ የሚችልና ጊዜው የሚጠይቀው ዓርማ በማስፈለጉ ነው፡፡

አዋሽ ኢንተርናሽናል ባንክም ባንኩን በተሻለ ይገልጽልኛል ወዳለው የዓርማ ለውጥ ውስጥ ገብቷል፡፡ ባንኩ ባለፉት 22 ዓመታት ሲጠቀምበት የነበረውን ዓርማ ብቻ ሳይሆን አዋሽ ኢንተርናሽናል ባንክ የሚለውን መጠሪያ ‹‹አዋሽ ባንክ›› በሚል በማሳጠር፣ ኢንተርናሽናል የሚለውን በማውጣት በቅርቡ በአዲስ ዓርማና ‹‹አዋሽ ባንክ›› በሚለው መጠሪያ ገበያውን ይቀላቀላል፡፡

ከባንኩ የተገኘው መረጃ ባንኩ በዚህን ያህል ደረጃ ዓርማን ለመለወጥና መጠሪያውንም ለማጣጣር ውሳኔ ላይ የደረሰው፣ የባንኩን የወደፊት አቅጣጫና ግብ ለማሳካት በቀረበ ጥናት መሠረት ነው፡፡

ባንኩ ‹‹ቪዥን 2025›› በሚል የያዘውን ውጥን ለማሳካት በአማካሪነት የተቀጠረው ኬፒኤምጂ፣ ባንኩ መለወጥ አለባቸው ብሎ ካቀረባቸው በርካታ አሠራሮችና ትግበራዎች ውስጥ አንዱ የባንኩን ዓርማና መጠሪያ ጊዜው በሚጠይቀው መልክ መቀረጽ አለበት የሚል ነው፡፡

ዓርማውን መለወጡና ስያሜውን ማሳጠሩ ምን ያህል ጠቃሚ እንደሚሆንና ዓለም አቀፍ ገበያ ውስጥ ለመግባትም ያለውን ዕድል በሚያሳይ በዝርዝር ያቀረበው ጥናት፣ በባንኩ አመራር ተቀባይነት በማግኘቱ አዋሽ ዓርማውን ለመለወጥና ስያሜውንም ለማሳጠር እንዲወስን አድርጎታል፡፡

አማካሪ ድርጅቱ የዓርማ ለውጡን በተመለከተ በቀረበው ጥናት አዋሽ ባንክ በምሥራቅ አፍሪካ ከአሥሩ ምርጥ የግል ባንኮች አንዱ ለመሆን የቀረጸውን ራዕይ ለማሳካት፣ ዓርማውን ማሻሻል አስፈላጊ መሆኑን የሚያመለክት ነበር ተብሏል፡፡

ባንኩ በአገር ውስጥ ትልቅ ቢሆንም የውጭ ገበያን ካሰበ የዓርማ ለውጡ አስፈላጊነት ላይ በዝርዝር ካቀረቡት ሐሳብ ጎን ለጎን፣ አሁን ያለው ዓርማ ከውጭ ካለው ጋር የሚሄድ አለመሆኑንም ጠቅሰዋል፡፡ ዓርማ ወይም ብራንድ በአንድ ቢዝነስ ውስጥ ያለው ኃይል ከፍተኛ መሆኑንም አማካሪው ጠቅሶ፣ ተስማሚ ዓርማ ለገበያ ዕድገት ያለውን ጠቀሜታ በማያያዝ ጭምር ዓለም ወዳለበት ደረጃ ዓርማውንም ማሳደግ እንደሚገባ መክሯል፡፡

እስካሁን የሚጠቀሙበት ዓርማ በወቅቱ በነበረው ደረጃ የተሠራ ቢሆንም፣ የተሻለ እንዲሆን ማድረግ ግድ መሆኑ በመታመኑ ወደ ለውጡ ተገብቷል፡፡ እንደተባለውም ተስማሚ የሆነ ዓርማ ለመቅረጽ በዓለም አቀፍ ደረጃ በዓርማ ቀረጻ ልምድ ያላቸውን በማሳተፍ በተካሄደ ጨረታ የኬንያ ብራንድ ኢንተግሬትድ ኮንሰልቲንግ የተባለ ኩባንያ አሸንፎ አዲሱን የአዋሽ ባንክ ዓርማ ቀርጿል፡፡

የቀድሞው ዓርማ አዋሽ ኢንተርናሽናል ባንክ የሚለውን የእንግሊዝኛ መጠሪያ (AIB) በምፃረ ቃል የያዘ ሲሆንም፣ አዲሱ ዓርማ ግን ምንም ዓይነት ፊደላት የሌሉበት በክብ ቅርጽ የተሠራ ነው፡፡ ዓርማው ዓለም አቀፋዊ አገልግሎትን ይገልጻል በተባለ ደረጃ የተሠራ መሆኑንም የባንኩ የሥራ ኃላፊዎች ይገልጻሉ፡፡ አዲሱ ዓርማ ከቀለም መረጣ ጀምሮ ለባንኩ ተወዳዳሪነት አጋዥ የሆኑ ትርጓሜዎችን የያዘ መሆኑ ተገልጿል፡፡ የባንኩን የወደፊት ራዕይ ለማሳካት ይረዳል የተባለው ይህን ዓርማ የሠራው ኩባንያም በአፍሪካ ውስጥ የተለያዩ የፋይናንስ ተቋማትን ዓርማ የሠራ ነው ተብሏል፡፡ ይህ ኩባንያ የኬንያው ባንክ ኦፍ ኬንያና የደቡብ አፍሪካውን ባንክ ኦፍ አፍሪካን ዓርማዎችን መሥራቱ ተገልጿል፡፡ የአዋሽ ባንክ አዲሱ ዓርማ በአዕምሯዊ ንብረት ከተመዘገበ በኋላ ሥራ ላይ ይውላል ተብሏል፡፡

አዋሽ ባንክ በአሁኑ ወቅት ከግል ባንኮች በከፍተኛ አትራፊነት የሚጠቀስ ሲሆን፣ በ2008 በጀት ዓመት ከታክስ ከአንድ ቢሊዮን ብር በማትረፍ ከግል ባንኮች የመጀመሪያውን ደረጃ የያዘ ነው፡፡

በ2009 የመጀመሪያ ሩብ ዓመት ከታክስ በፊት ከ244 ሚሊዮን ብር በላይ ማትረፉን ለማወቅ ተችሏል፡፡ ይህም በተጠቀሰው ጊዜ ከግል ባንኮች ከፍተኛው ትርፍ ነው ተብሏል፡፡  Read more here

Ethiopian Airlines and the Ethiopian Tourism Organisation Outlined Plans

Ethiopian Airlines and the Ethiopian Tourism Organisation outlined their current achievements and future plans for Ethiopia as a major African tourism destination during a press conference held at World Travel Market on Tuesday 8th November 2016.

Speakers, including His Excellency Ambassador Hailemichael Afework Aberra, CEO of Ethiopian Airlines Mr. Tewolde GebreMariam and CEO of Ethiopian Tourism Organisation Mr. Solomon Tadesse addressed a large audience of international journalists and tour operators all keen to learn of future plans for tourism in this remarkable country offering so much in terms of history, culture, ethnic diversity, wildlife, stunning varied landscapes and adventure.

During the conference speakers were united in their belief that the current FCO advisory would be lifted in the very near future, especially in light of the lifting of travel restrictions on diplomats, and that it is very much business as usual. Mr. Tewolde emphasised that having invested over the last 25 years in strengthening the infrastructure of Ethiopia the time is now right for tourism to take centre stage and to showcase their magnificent nation and reputation for outstanding natural hospitality to visitors from all over the world. “Ethiopian Airlines, the largest airline in Africa now flies to 95 destinations across 5 continents giving tourists, investors and trading partners the opportunity to benefit from our routes and hospitality. We now offer 20 airports of global standard across Ethiopia servicing 25,000 hotel rooms a day and with 4 US flights, 13 European flights and 4 China direct flights into Addis we are very much up and running and ready to offer a peaceful welcome to the world.”

Mr. Solomon went on to add that with 20 airports in place, a road network established, electrification of the whole country complete and portable water available throughout, Ethiopia’s infrastructure is in place and ready to see its tourism industry flourish. “As our new branding highlights Ethiopia is truly the ‘’Land of Origins’’ in terms of history, culture and adventure, we are currently undertaking a 5 year strategy to develop and market the country with the aim of establishing Ethiopia among the top five tourist destinations in Africa by 2025. Together with Ethiopian Airlines, Africa's fastest growing airline, we will work together to really put Ethiopia on the world tourism stage.”

Source: Ethiopian Airlines Press Release

Berhan Bagged 350 Million Birr Profit

Berhan International Bank, one of the private banks in Ethiopia, has registered a 350 million Birr net profit in the last fiscal year. The bank’s performance shows a 152 percent increase when compared to the 2014/2015 fiscal year, which saw a net profit of 138 million Birr.

According to Capital, the bank’s expenses has shoot up as the bank has undertaken massive expansion. The expense of the bank has grown in the period by 86 percent.

The profit has enabled the earning per share, on the other hand, to reach 40 percent. This is almost twice as much as the 2014/2015 earnings per share.

Berhan has also expanded their deposit mobilization to 5.3 billion Birr, which is a 72.6 percent increase. Other sectors that showed increase is foreign exchange inflow and paid up capital of the bank, which respectively grew to 131 million USD and 730 million Birr. Loans and advances also grew by alost 100 percent.

The year 2014/2015 also saw the bank’s asset growing to 7.2 billion Birr, a 71 percent increase. Berhan has also opened 33 new branches during the period taking the total number of branches to 105.

The bank has also managed to increase number of account holders. It has stunned by attracting over 87,100 new customers to open new accounts. This took the the number of account holders to 195,412.

Source: Capital

የኢትዮጵያ ንግድ ባንክ የ40/60 ቤቶችን ሊረከብ ነው

- የዋጋ ጭማሪ ተደርጓል

የኢትዮጵያ ንግድ ባንክ ሙሉ በሙሉ ሊጠናቀቁ የተቃረቡ የ40/60 ቤቶችን ከአዲስ አበባ ከተማ አስተዳደር ተረክቦ ራሱ ዕጣ ለማውጣት እየተዘጋጀ መሆኑ ተገለጸ፡፡ በ40/60 ቤቶች ላይ የዋጋ ጭማሪ መደረጉም ታውቋል፡፡

የአዲስ አበባ ከተማ አስተዳደር ቤቶች ልማት ቢሮ ኃላፊ አቶ ይድነቃቸው ዋለልኝ ለሪፖርተር እንደገለጹት፣ የ40/60 ቤቶችን ዕጣ የሚያወጣው የኢትዮጵያ ንግድ ባንክ ነው፡፡

የአዲስ አበባ ከተማ አስተዳደር ቤቶቹን ለማስረከብ እየተዘጋጀ መሆኑን፣ የባንኩ ኃላፊዎችም ቤቶቹን ለመረከብ ጉብኝትና ግምገማ እያካሄዱ እንደሆነ ገልጸዋል፡፡

ለ40/60 ቤቶች በ2005 ዓ.ም. ምዝገባ ተካሂዶ ግንባታቸውም በዚያው ወቅት ቢጀመርም፣ በነበረው የኮንስትራክሽን ግንባታ ዋጋ ላይ ለውጥ በመምጣቱና የተለያዩ የዲዛይን ለውጦች በመደረጋቸው የዋጋ ክለሳ መካሄዱ ተገልጿል፡፡

ባንኩ ተረክቦ በዕጣ ያስተላልፋል ተብሎ የሚጠበቀው በሰንጋ ተራና በክራውን ሳይቶች የተገነቡ 1,292 ቤቶችን ነው፡፡ በእነዚህ ቤቶች ላይ የሚጨመረው ዋጋ መጠን ግን አልተገለጸም፡፡

ነገር ግን ለመጠናቀቅ የተቃረቡትና ለዕጣ ዝግጁ የሆኑት 1,292 ቤቶች ብቻ ሲሆኑ፣ ከ13 ሺሕ በላይ ተመዝጋቢዎች ሙሉ በሙሉ ክፍያ አጠናቀው በመጠባበቅ ላይ ይገኛሉ፡፡

እነዚህ የ40/60 ቤቶች በ18 ወራት ውስጥ ተጠናቀው ለተጠቃሚዎች እንደሚተላለፉ ተገልጾ የነበረ ቢሆንም፣ እስካሁን ድረስ ቤቶቹ ለተጠቃሚዎች ባለመተላለፋቸው ቅሬታ ፈጥሯል፡፡

የ40/60 ቤቶች በሦስት ማዕቀፎች ተከፍለው ግንባታቸው እየተካሄደ መሆኑ ይታወቃል፡፡ የመጀመርያው ማዕቀፍ በክራውንና በሰንጋ ተራ ሳይቶች የተጀመሩት 1,292 ቤቶች ሲሆኑ፣ በ2005 ዓ.ም. ግንባታቸው ሲጀመር በ18 ወራት ይጠናቀቃሉ ተብሎ ነበር፡፡ በሁለተኛው ማዕቀፍ የተጀመሩት 18,589 ቤቶች ደግሞ በስድስት ሳይቶች እየተገነቡ ይገኛሉ፡፡ በሦስተኛው ማዕቀፍ ደግሞ 19,348 ቤቶች ናቸው፡፡ በአጠቃላይ 39 ሺሕ ያህል የ40/60 ቤቶች በግንባታ ላይ ናቸው፡፡

ይሁንና ግንባታቸው እጅግ ዘገምተኛ በመሆኑ ተመዝግበው እየተጠባበቁ በሚገኙ ነዋሪዎች ዘንድ ከፍተኛ ቅሬታ ከመፍጠሩም በላይ፣ ማኅበራዊ ሕይወታቸውን እያናጋ መሆኑን የሚገልጹ ተመዝጋቢዎች በርካቶች ናቸው፡፡ ለዚህም እንደ ምሳሌ የሚያነሱት ሙሉ ለሙሉ የከፈሉትም ሆነ በየወሩ የሚቆጥቡት ከግለሰቦች ላይ ለተከራዩዋቸው ቤቶች ወርኃዊ ክፍያ መገፍገፍ እንደሰለቻቸው ነው፡፡ Read more here