Ethiopia’s Foreign Earnings from Pulses and Oilseeds Surge
Ethiopia earned USD 156 million from cereal and oilseed exports in four months, achieving 95% of its target. Exports included USD 66 million from oilseeds and USD 90 million from pulses, showcasing strong growth potential. 2Merkato
Embracing Risk: Insights from Ethiopian Capital Market Authority Industry Day
Commissioner Hester M. Peirce of the U.S. SEC highlighted the vital role of risk-taking in fostering innovation and economic growth during remarks at the Ethiopian Capital Market Authority Industry Day. She commended Ethiopia’s strides in establishing its capital market, including the Ethiopian Securities Exchange, as a catalyst for economic transformation.
Peirce emphasized the need for balanced regulation to support private sector growth while protecting investors, noting that well-functioning capital markets unlock human potential and drive progress. Ethiopia’s youthful population, she added, represents immense untapped talent that robust capital markets can help unleash for national and global benefit. Read more
Ethiopian Airlines Resilient Amid Currency Plunge
Ethiopian Airlines Group reported only a minor impact from the Ethiopian birr’s 53.6% depreciation this year, thanks to its dollar-based international ticket sales. CEO Mesfin Tasew stated that while domestic ticket prices remained unchanged as a social service, the currency float is expected to benefit trade and the economy in the long run.
The airline also announced progress on its $5 billion airport project near Addis Ababa, poised to become Africa’s largest. Meanwhile, flights to Eritrea remain suspended due to unresolved issues, with no timeline for resumption. Bloomberg
The Ethiopian Capital Markets Authority (ECMA) hosted U.S. SEC regulators and USAID
The Ethiopian Capital Markets Authority (ECMA) hosted U.S. SEC regulators and USAID at a training session to refine the regulatory framework for Ethiopia’s first stock exchange. Glen Gordon, SEC Associate Director, emphasized the need for clear, balanced regulations to foster transparent markets and economic growth.
Comparing Ethiopia’s nascent market to the U.S., Gordon highlighted the potential of capital markets to surpass traditional banking in driving prosperity. SEC regulators also stressed the importance of an apolitical ECMA and independent litigation to ensure market integrity.
Tilahun E. Kassahun, CEO of the Ethiopian Securities Exchange, affirmed the importance of learning from global markets while tailoring solutions to local needs. Ethiopia recently held its first IPO as ethio tel offered 100 million shares to the public. Shega
Ethiopia Plans to export electricity to Tanzania via Kenya
Ethiopia plans to export about 100 megawatts of electricity to Tanzania via Kenya once the nations finalize a deal that will enable cross-border trade in electricity. The quantum of power to be traded may be revised during final talks, according to Moges Mekonnen, a spokesperson at state utility Ethiopian Electric Power.
Akobo Minerals Launches Segele Gold Mine in Ethiopia
Scandinavian company Akobo Minerals has officially opened the Segele gold mine in Ethiopia, marking a significant milestone for the nation’s mining sector. The inauguration, attended by Prime Minister Abiy Ahmed, featured the first symbolic gold pour, yielding 6.5 kilograms of high-grade gold.
Prime Minister Ahmed highlighted the mine’s role in boosting Ethiopia’s economy and benefiting local communities. Akobo’s first gold bar, a 1.4-kg bar from lower-grade material, was produced in October, demonstrating the mine’s potential.
Ethiopia Approves 581.98 Billion Birr Supplementary Budget
The Council of Ministers has approved a 581.98 billion birr supplementary budget for the 2024/25 fiscal year, pending final approval by the House of Peoples’ Representatives. This follows a 25% increase in the national budget earlier this year, pushing it to one trillion birr. Economists warn that increased spending amidst currency devaluation could heighten inflation and public debt concerns. Read more
Safaricom’s Bold Expansion in Ethiopia
Safaricom’s entry into Ethiopia marks a historic step in African telecommunications. Since winning the first private telecom license in 2021 for $850 million, the company has made significant strides, including launching mobile services in 2022 and its mobile money platform, M-Pesa, in 2023.
With over 7 million users and plans to invest $2.5 billion, Safaricom aims to capture Ethiopia’s vast market potential. Despite challenges like currency depreciation and competition from Ethio Telecom, CEO Peter Ndegwa remains optimistic, expecting Ethiopian operations to break even by 2027 and drive half of Safaricom’s future growth.
Ethiopia, with its growing demand for mobile data and low penetration, offers immense opportunities for Safaricom’s long-term vision. Read more
Awash Bank Reports Record $1.52 Billion in Foreign Exchange Earnings
Awash Bank announced foreign exchange earnings of $1.52 billion in the 2016 fiscal year, marking a historic achievement for a private bank. The bank also reported a gross profit of 10.8 billion birr and a deposit growth of 45.1 billion birr during the period.
According to Board Chairman Ato Gure Khumsa, Awash Bank’s loan portfolio reached 183.5 billion birr. The bank’s total income for the year increased by 27%, reaching 36.58 billion birr—up by 7.77 billion birr compared to the previous year.
These milestones were highlighted during the bank’s 29th Annual General Meeting of Shareholders. Capital Ethiopia
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