Ministry of Agriculture (MoA) is set to facilitate a market linkage meeting with farmers via cooperatives to wheat millers. Similarly, lowland wheat harvest have achieved on average 40 quintal per hectare, which is a record for the sector.
Omar Hussien, Minister of MoA, said that as per the request of millers in the country the ministry has arranged a discussion with farmers to create market linkage for industries.
He said that on the initiative that the government halts importing wheat from abroad millers, which receive the grain from the government as per their quota, sparks of interests have been shown thus need to contact farmers to access the input for their production if the government stop importing the wheat has become integral.
The country is allocating at least a billion birr to import wheat since the local production is not ample to fill the demand.
Last year the government had introduced an initiative to produce lowland wheat on the irrigation scheme to easy the import that consumed the scarce hard currency. As a result, Lowland wheat harvest achieved on average 40 quintal per hectare, which is a record for the sector.
The ministry has disclosed that in the second year of the initiative, the government targets to cut wheat imports within the maximum five years as they predict that half of the deficit will be filled.
This being the second year of the planned year, the government has targeted to harvest up to ten million tons of wheat, which is more than half of the 17 million ton deficit.
If we continue as per the current path the target will be achieved by next year.
In the current season 250,000 hectare of land is expected to be covered by wheat, while the initial projection was to cover 300,000 which has gone on to change due to the effects of flood in the past rainy season in Afar region.
According to the Minister, for the year wheat production in Amhara and Oromia got a priority, while Afar and Somali lowlands have been included.
Omar said that on the new wheat production scheme over 12,000 farmers will be encompassed.
“On this scheme we have also changed the productivity and research. In the past productivity and research have been undertaken separately but since we started the new scheme researchers and agricultural experts are working together to improve the harvest,” he said.
“Some may think the lowland wheat production is the result of researchers but we are working jointly that is why we registered promising results,” he explained. According to the Minister, this practice will continue on other sectors.
Flour factories also raised their concern when they heard about it.
The lowland wheat production harvest is up to 40 quintal per hectare, while on the rainy season the average production is 29 quintal per hectare.
“For the year as a show case we are planting 500 hectare in Gode, Somali region for wheat cultivation that will expand in the coming year since the initiative mainly focused on lowland areas of the country that are massively focused on Afar and Somali regions,” he told Capital.
The government has stopped most of the duty free schemes since the reformist ruler come to power and in contrary it has opened the importation of tools and machineries on duty free scheme for agriculture to achieve production and productivity.
Omar said that 560 items have been included on the duty free scheme to improve the agriculture sector and enable the country to fully sufficient on agricultural production and expand export for further hard currency earning.
Farmers and millers set to link up to whip wheat deficit
Berhan Bank lights its way to record profits
Profit surpassed half billion birr for the first time
Berhan Bank has expanded its revenue by 30 percent in the financial year concluded in June, while the profit has climbed by 22 percent.
According to the financial report of the 2019/20 year, the bank has enabled to manage 2.8 billion birr revenue up from 2.2 billion birr of the 2018/19 financial year.
From the total revenue, the interest noninterest income has grown by 34.4 percent and 19.3 percent respectively, while interest income has stood at the top with 72 percent.
Regarding expense for the year, it has stood at 2.2 billion birr that was increased by almost 33 percent from 1.6-billion-birr of 2018/19 financial year.
From the total expense, noninterest expense has taken 62 percent, while the balance is for interest expense.
According to the annual report, the noninterest expense has expanded by 31 percent and stood at 1.34 billion birr up from one billion birr a year ago.
The interest expenses have also increased by 35 percent and reached at 818 billion birr from 605 million birr.
For the year, the bank has enabled to generate 707.5 million birr profit before tax with the growth of 22 percent from 580 million birr of 2018/19 financial year.
Profit for the year has surpassed a half billion birr for the first time and increased by 95.2 million birr to reach 553 million birr from 458 million birr.
For the year the earnings per share has stood at 25.9 percent from 24.6 percent of a year ago.
Berhan has achieved massive progresses like the income and profit in other measurements in the year.
For instance, in the year the deposit mobilization has climbed to 16.6 billion birr by 11 percent from 14.9 billion birr a year ago.
Similarly the loans and advances outstanding stock has expanded by 24.5 percent from 10.2 billion birr to 12.7 billion birr.
The total capital as of June 30 has reached 3.4 billion birr that growing by 22.6 percent from 2.45 billion birr.
At the same time its asset has grown by 11.4 percent from 19.2 billion birr to 21.4 billion birr, while the paid up capital has also grown to 2.45 billion birr from 2 billion birr of 2018/19.
Ahadu Bank established with 760 million birr capital
One of the newly incoming banks, Ahadu Bank S.C under formation completes its share selling.
On Saturday January 2, 2021 the bank held its first founding meeting at the Ghion Hotel.
The bank has been effectively going through the formation processes for the past 11 months.
According to Tegabu Haileyesus, chairman of the organizing committee, Ahadu has completed its sell with 760 million share sale out of which 540 million is paid up capital.
Haileyesus explained that there are 10,500 shareholders, of which 192 of them are certified Diasporas.
Since the number of shareholders was massive and coupled with the ongoing pandemic, the upcoming bank finds it challenging to hold it founders conference at one place. However, 3000 were found at the founding summit following social distancing and strict health care measures were implemented.
In a protected industry that is only allowed to Ethiopians who mostly start a bank with a capital of 500 million birr, Ahadu bank is said to have secured 540 million birr. This announced capital is not inclusive of share values sold to foreigners of Ethiopian origin who were very recently allowed to buy shares in Ethiopian banks.
Ahadu Bank S.C. is a conventional commercial bank which is established by Ethiopians and foreign nationals of Ethiopian decent. Complying with the country’s business law and National Bank of Ethiopia procedures, and comprising of a team of reputable professionals, veteran bankers and, prominent businessmen, have been gathered to make a foot print on the banking sector with a unique business model.
“AHADU BANK” coined its name from the “GE’EZ” alphabet which literally means “THE ONE” “THE FIRST.”
Starting from February, 2020 the organizing committee of Ahadu received the permit from the National Bank of Ethiopia. Following the permit it planned to finalize the share sales until September 10, 2020 and proceed with licensing process assuming the state of emergency would be lifted (Global Pndemic) however the under formation bank continued its sell until the middle of December .
“In Parallel, we are working on fulfilling the required studies, policies, procedures and manuals required as per NBE directive and other compliance requirements,” the under formation bank stated.
Ahadu bank share value is 1,000 Birr and the minimum number of shares one can buy is 10 while the maximum is 100,000 shares.
Currently there are 17 private banks and 2 state owned banks are operating in the ever growing banking sector of the country. Ahadu is keen on disrupting the banking sector for the greater good.
Federal Small and Medium Manufacturing Industry opened small and medium enterprise trade
Federal Small and Medium Manufacturing Industry Agency opened small and medium enterprise trade fair at their office located around Mexico Square in front of Wabi Shebele Hotel. The exhibition came as national call to boost the capacity of the manufacturing industry, was officially opened on Wednesday December 30, 2020 in the presence Melaku Alebel Minster of Trade and Industry and Asfaw Abebe Director of the Agency. The exhibition consists more than 216 small and medium enterprises out of which 16 are from different African countries.
The exhibition is expected to stay until the eve of the Ethiopian Christmas which will be on January 6, 2020.
