By our staff reporter

Zemen Bank has become the first institution to establish an agreement with the Ethiopian Securities Exchange (ESX) by acquiring ownership shares worth 47.5 million birr. This investment allows the bank to hold approximately 5% of the shares in ESX, meeting the minimum limit of 10 million birr required for investors as of January 11, 2024, according to ESX CEO Tilahun Kassahun.

Zemen Bank’s equity investment amounts to 47.5 million birr, which represents a 5% ownership share in the paid-capital of ESX. Alongside Ethiopian Investment Holdings (EIH), which initially invested in ESX, Zemen Bank will be joined by other investors who are expected to become shareholders in the coming months.

Dereje Zebene, CEO of Zemen Bank, expressed enthusiasm about partnering with ESX as one of their initial financial backers. He believes that ESX and the introduction of equity and debt markets will lead to transformative changes in Ethiopia’s financial sector. Zebene stated that Zemen Bank is honored to join ESX on this exciting journey.

Tilahun Kassahun, CEO of ESX, expressed delight at Zemen Bank’s decision to become a financial investor in ESX. He emphasized that Zemen Bank’s capital infusion is crucial as ESX is in the process of acquiring advanced trading solutions, hiring new staff, and undertaking other preparations for its operational launch.

While there are approximately 30 banks and 18 insurance companies in Ethiopia, it was the banks that purchased these stocks. It is expected that more banks and private investors will follow their example in the coming months.

ESX aims to raise a total of 625 million birr and has recently received an additional 275 million birr from four state-owned enterprises supported by Ethiopian Investment Holdings and FSD Africa.

By Eyasu Zekarias

Moha Soft Drinks, owned by Sheikh Mohammed Hussein Ali Al-‘Amoudi, had resumed its production after four months of closure. Moha has now been reported that production has resumed in all its facilities located at Gotera, Summit, and regional cities. However, its Teklehaimanot branch did not start production.

The halt in production was initially attributed to a shortage of foreign currency for importing raw materials. However, our sources suggest that corruption within the company was also a contributing factor that kept it away from the market.

Sources indicate that during the period of production suspension, Moha had been distributing previously manufactured soft drinks. The recent restart of production is said to be possible due to the availability of raw materials that were imported by air transport.

However, sources reveal that the production has not yet fully commenced as further raw materials are need to be imported.

Moha Soft Drinks, which began operations on May 15, 1996, with a paid-up capital of 108,654,000 Birr, has recently undergone significant changes in its leadership. The general manager, management staff, financial experts, and leaders responsible for the company’s substantial financial losses have been abruptly removed from their positions and replaced with new leaders.

According to our sources, the dismissed leaders were involved in irregularities such as paying salaries on behalf of retired or deceased former employees who were not part of the organization.

Jamal Ahmed, CEO of MIDROC and Chairman of the Board of Moha Soft Drinks, appointed a new interim CEO two weeks ago.

Getachew Birbo, who had been managing the company for over 30 years, has been replaced by Ammanuel Muhe.

It has been reported that the leaders who resigned from their positions admitted to granting unwarranted salary increases and subsidies to employees for three years.

Moha, known for its popular soft drink brands such as Pepsi, Mirinda Orange, 7-Up, Miranda Tonic, Miranda Apple, and Cool water products, holds a significant market share in the Ethiopian soft drinks industry.

By our staff reporter

Jenboro Real Estate has announced its commitment to facilitating homeownership for Ethiopian diaspora residing across various countries. This initiative stems from a recent collaborative agreement reached with the Ethiopian Diaspora Association on January 11, 2024.

According to the agreement, Jenboro Real Estate is offering a special discount on housing for the diaspora community. Specifically, they have made available 100 houses in Bole Bulbula, which are currently 70 percent completed, as well as 400 houses in Kiru Apartment, a project set to be finished within three years. Kiru Apartment is located in Sarbet, a diplomatic quarter near the Vatican Embassy.

Established in 2001, the Ethiopian Diaspora Association has over 10,000 members residing in different countries. Over the past fifteen years, the association has served as a crucial link between the diaspora and the country, advocating for their interests and fostering connections. It is worth noting that the association is actively engaged in safeguarding the welfare of the diaspora across various spheres.

Jenboro Real Estate has already delivered three out of the six projects it has undertaken. The Kiru apartment complex, situated near the Vatican Embassy in Sarbet, presents an appealing option for Ethiopians seeking a refined and high-quality lifestyle. Spanning an area of 5,077 square meters, the Kiru project boasts 30 residential floors, seven parking floors, five floors dedicated to international brand shops, and 1,000 square meters of green space.

Having entered the real estate sector four years ago, primarily in Bole Bulbula, Jenboro Real Estate is presently engaged in the development of five projects in that area. Notably, the Kiru Apartments project is set to transform the vicinity near the Vatican Embassy in Sarbet, offering a distinct architectural presence.

By our staff reporter

Despite facing challenges, the global economy experienced steady growth in 2024. Joblessness and the jobs gap have both declined below pre-pandemic levels, reflecting the resilience of labor markets. However, the International Labour Organization’s (ILO) “World Employment and Social Outlook: Trends 2024” report highlights concerns over rising social inequalities and stagnant productivity.

While economic conditions have deteriorated, labor markets have shown surprising resilience. Nevertheless, the recovery from the pandemic is uneven, and new vulnerabilities and multiple crises are undermining prospects for achieving greater social justice, according to the ILO report.

The report, “World Employment and Social Outlook Trends: 2024” (WESO Trends), reveals that Africa’s GDP growth is estimated to have reached 3.8 percent in 2022, following the disruptions caused by the pandemic in 2020 and 2021. However, growth slowed to 3.1 percent in 2023 due to various factors, including the conflict in Ukraine and its impact on commodity markets.

A rebound to 3.8 percent growth is expected in 2024, driven in part by higher commodity prices benefiting exporters. However, there are downside risks, such as inflationary pressure, ongoing fluctuations in commodity prices, and tensions in the Middle East.

In North Africa, growth was lower at 2.7 percent in 2023 due to external shocks like drought and flooding. Recovery is projected at 3.5 percent in 2024 and 4.4 percent in 2025, although growth rates vary across the subregion.

Sub-Saharan Africa’s labor force has experienced significant growth, with an additional 53 million working-age individuals in 2023 compared to 2019. This labor force is expected to increase by another 14 million people in 2024.

The average unemployment rate in 2023 was 5.8 percent, slightly lower than the 5.9 percent in 2019, totaling 27 million people. However, youth unemployment remains higher at 8.9 percent, representing 9.4 million individuals, which puts them at risk of disillusionment and labor market detachment.

While job creation has kept pace with the expanding labor force, not all employment opportunities are decent and productive. Informal employment continues to dominate in Africa, accounting for 86.5 percent, underscoring the urgent need to improve job quality and reduce working poverty.

In 2022, approximately 60 percent of employed individuals were living in households below the international poverty threshold of US$3.65 per person per day in purchasing power parity terms, categorized as “moderately poor.” This percentage has decreased from 63.8 percent in 2013.