Ethiopias Economy Shows Strong Resilience in 2016 bAddis Ababa September 27/2017 Ethiopia's economy has shown a strong resilience in 2016/17 despite weak global prices for its export items, said IMF staff team that visited the country.

The team said, "The Ethiopian economy showed strong resilience in 2016/17 amid continued weak global prices for Ethiopia’s key exports and re-emergence of drought conditions in parts of the country”.

Ethiopia’s Real Gross Domestic product is estimated to have expanded by 9 percent in 2016/17, according to International Monetary Fund (IMF).

The remark was made by IMF staff team following the visit to Ethiopia from 13 to 26 September 2017 to conduct the '2017 Article IV consultation' discussions with Ethiopia.                                           

Through “Article IV Consultations,” the IMF attempts to assess each member country’s economic health and to forestall future financial problems.

The staff team, in its press release, said, "The Ethiopian economy showed strong resilience in 2016/17 amid continued weak global prices for Ethiopia’s key exports and re-emergence of drought conditions in parts of the country”.

Government interventions to mitigate the social impact of the drought, in collaboration with development partners, were timely and effective, thus limiting its human cost, they noted.

Read more http://www.ena.gov.et/en/index.php/economy/item/3762-ethiopia-s-economy-shows-strong-resilience-in-2016-17-imf

 

AfDB keen to finance private investmentThe African Development Bank (AfDB) expresses its keen interest to finance viable private investment to support the rapidly growing private sector in Ethiopia.

The Executive Director of the Bank in charge of Eastern Africa, Dr. Calleb Weggoro and his Senior Advisor Amos Cheptoo who visited Ethiopia recently to observe the projects of road and electricity transmission lines funded by the Bank expressed their interest to extend funding to private businesses in the country.

Apart from public infrastructures where big sum of the Bank’s funding goes to, currently private investments like cement factories and airline industries have been granted finance from AfDB, Dr. Weggoro tells The Ethiopian Herald.

Unfortunately, he says, private sector financing have been very limited due to a number of policy and organizational reasons of the country. “The Bank's financing mechanisms of private enterprises are very open and some enterprises from other African countries have been benefiting from the funding.

“I have discussed with officials from the Ethiopian Chamber of Commerce and Sectorial Associations to promote and sensitize their members that they can organize themselves in a certain way and get access to our funding”, assures Dr. Weggoro.

Read more at http://www.ethpress.gov.et/herald/index.php/news/national-news/item/9700-afdb-keen-to-finance-private-investment

 

Ethiopia set to outshine Africas economic giants in competition for investmentEgypt, Ethiopia and Rwanda are up, and South Africa, Nigeria and Algeria are down, while all of Africa is at a crossroads in economic development, according to the newest edition of Rand Merchant Bank's "Where to Invest in Africa 2018" report.

"The last three years have sounded an alarm, amplifying what is now a dire need for the economies of Africa to shift their focus from traditional sources of income to other viable alternatives," said Neville Mandimika, a Rand Merchant Bank Africa analyst and contributor to the report.

The report's Investment Attractiveness Index, which balances economic activity against the relative ease of doing business, illustrates how subdued levels of economic activity have diluted several scores on the index when compared to last year, resulting in several shifts within the Top 10.

"Over the past three years, some African governments have had to implement deep and painful budget cuts, announce multiple currency devaluations and adopt hawkish monetary policy stances, all as a result of a significant drop in traditional revenues," said Celeste Fauconnier, Rand Merchant Bank Africa analyst and co-author of the report.

Notable omissions from the top 10 this year are Nigeria and Algeria, which have fallen from numbers six and 10 to numbers 13 and 15, respectively. Ethiopia and Rwanda, on the other hand, have climbed three and four places, respectively.

EBC: Sourcing Journal Online

Read more at http://www.ebc.et/web/ennews/-/ethiopia-among-top-countries-in-where-to-invest-in-africa-study

 

Ethiopia Sets Stable Framework for BusinessAddis Ababa September 23/2017 The Ethiopian government has set a sustainable framework for business investments in infrastructure and cheap power supply, said UK Prime Minister’s Trade Envoy MP Jermy Lefroy.

In an exclusive interview with ENA, Lefroy appreciated the government’s commitment towards encouraging and attracting trade and investment through expanding industrial parks, abundance infrastructure, and cheap power supply.

Noting that the Ethiopian government and people are doing a lot to encourage companies to do business in the country, the Trade Envoy said “What we want to see is trade and investment increase on both sides”.

In this regard, making more UK companies aware of business opportunities in Ethiopia is among the things that should be done to increase the trade volume between the two countries.

“So that is why in which we can see both the number of jobs created increase, the amount of exports grow and the imbalance in trade between the UK and Ethiopia reduce” he added.

According to the Envoy, it is not just about exports and imports, it is also about UK companies coming to Ethiopia to invest in the country to create jobs and enhance the trade and investment ties.

Read more at http://www.ena.gov.et/en/index.php/economy/item/3751-ethiopia-sets-stable-framework-for-business-uk-trade-envoy

 

Ethiopias industrial parks attracting export oriented foreign companiesAddis Ababa, August 23, 2017 (FBC) - Ethiopia’s three recently inaugurated Chinese-built industrial parks are attracting export-oriented foreign companies to the east African country’s textile and apparel production setting.

The three industrial parks, Hawassa, Mekelle and Kombolcha, were built as part of its efforts to become Africa’s manufacturing hub. Located in southern and northern Ethiopia, they have begun to attract renowned export-oriented foreign companies to Africa’s second populous nation.

The country has a plan to uplift its current close to 150 million U.S. dollars revenue from exporting textile and apparel materials to more than 1 billion dollars.

The Chinese-built Hawassa park, some 275 km south of the capital Addis Ababa, which is considered as Ethiopia’s flagship industrial park, has already started bringing in hard currency.

Among the companies that have started their production on its premises is the Hong Kong-based TAL Apparel.

According to Ethiopian Textile Industry Development Institute recent report, close to 1.5 million dollars is being earned in a month from export of textile and garments products from the Hawassa industrial park.

The east African country expects to generate one fourth of the targeted over 400 million U.S. dollars foreign currency for the current fiscal year from the Hawassa industrial park alone.

Read more at http://www.fanabc.com/english/index.php/news/item/9835-ethiopia%E2%80%99s-industrial-parks-attracting-export-oriented-foreign