The International Monetary Fund (IMF) executive board approves USD 411 million in emergency assistance to Ethiopia to address the COVID-19 pandemic challenge besides relief on debt service of USD 12 million.
Recently Ahmed Shide, Chair of Economic Affairs Subcommittee for COVID 19 pandemic and Minister of Finance, disclosed that the government has finalized a negotiation with the Fund to get the finance that will be direct budget support and support the balance of payment that is affected by low economic activity due to the outbreak of coronavirus.
In its statement IMF said that Ethiopia is facing a pronounced economic slowdown and an urgent balance of payments need owing to the COVID-19 pandemic.
“To address this urgent need, the IMF approved USD 411 million emergency assistance for Ethiopia under the Rapid Financing Instrument (RFI),” it said.
The country will also benefit from IMF debt service relief under the Catastrophe Containment and Relief Trust (CCRT), according to the statement of IMF.
The Executive Board also approved a rephasing of disbursements under the Extended Credit Facility (ECF) and Extended Financing Facility (EFF) arrangements that have been supporting Ethiopia’s economic reform program since December 2019, and a reduction in access under the EFF arrangement, to maximize financial support under the RFI.
The IMF Executive Board decision was to provide debt service relief to the poorest and most vulnerable countries that are eligible for grant assistance under the CCRT.
“As a result, the Board approved Ethiopia’s request for relief under the CCRT on debt service falling due to the IMF until October 13, 2020 of about USD 12 million. This relief could be extended up to April 13, 2022, subject to the availability of resources under the CCRT,” it added.
The statement that understood the COVID-19 pandemic has created severe health risks and weighed heavily on the Ethiopian economy, says “if the pandemic is not contained, it will put severe pressure on the health system with devasting social consequences.”
It said on the economic front, a fall in demand for exports, combined with domestic containment measures will slow growth and weaken external and fiscal accounts.
The IMF statement appreciated the government’s action to contain the public health and COVID 19 impacts by taking several measures like state of emergency, mandatory quarantine travelers entering to the country, improving testing, providing supports for poor and others.
“The IMF continues to monitor Ethiopia’s situation closely and stands ready to provide policy advice and financial support as needed,” it added.
“Ethiopia showed good progress under the extended arrangements with the Fund, which aim to address external vulnerabilities and transition to a private sector-led growth model. The authorities remain committed to the reform program. However, the COVID-19 pandemic has had a significant adverse impact on the economy and created urgent fiscal and balance of payments needs. The authorities have moved decisively to contain the spread of the virus and manage the economic fallout from the global downturn and the needed health-related measures,” Tao Zhang, Deputy Managing Director and Chair of the Executive Board, said.
“A temporary widening of the budget deficit is appropriate. The immediate priority is to increase spending on health care and provide emergency assistance, including food assistance. The authorities are committed to full transparency on the spending for the emergency response and aim to conduct an ex-post audit of crisis-related spending once the crisis abates. Fiscal consolidation will need to resume after the crisis, with a focus on strengthening debt sustainability and domestic revenue mobilization,” Tao Zhang added.
The government has been disclosed that in general the government is working to mobilize USD 2.15 billion for sectoral, budget and other areas support that is expected to get from international partners.
It has also said that it is negotiating with the World Bank to get USD 725 million fresh supplementary budget support.
IMF approves $411 mln in emergency assistance to Ethiopia
Ethiopia seeks public view on telecom licensing rules
The Ethiopian Communications Authority (ECA) drafted a new guideline for the award of new telecom licenses following the new telecommunications regulatory framework.
The Authority has opened a two week consultation on proposed rules for licensing new entrants into the country’s telecom sector, alongside related directives on consumer rights and dispute resolutions.
In a statement, the industry regulator said interested parties have until May 11, to submit any comments on the three consultations which opened on 28 April with further draft rules related to the provision of fixed and mobile services set to be issued in the coming days.
ECA said it will review and consider the comments in adopting the directives on issues including licensing, consumer rights and dispute resolution. The directives are: telecommunications licensing directive, consumers rights and protection directive, and dispute resolution directive. Additional directives will be forthcoming in the next few days, and these will include, directives on quality of service (QoS), numbering, interconnection, infrastructure sharing and collocation, telecom rights of way, and universal access obligation framework.
In a related development, Kenya’s mobile phone operator Safaricom said it plans to pursue entry of its mobile money service M-Pesa into Ethiopia as part of its international expansion drive.
Outgoing Safaricom CEO Michael Joseph told an investor briefing in Nairobi on Wednesday April 30 that Safaricom and Vodacom, one of its investors, have acquired the M-Pesa brand, including product development and support services and the acquisition now will enhance further expansion into the Africa market.
“We will pursue opportunities in Ethiopia but all decisions will depend on decisions of the Ethiopian government which we expect later this year,” Joseph said when the telecom announced 2019/2020 financial full-year results.
WFP starts Africa flights for humanitarian workers in covid-19 response
The first flight for humanitarian workers left Ethiopia’s Bole International Airport on May 1, and flew to Kotoka International Airport in Accra, Ghana, opening a new passenger service between a network of regional hubs for the COVID-19 response.
The service run by the World Food Programme (WFP) and Ethiopian Airlines is available for United Nations and Non-Governmental Organization staff working in the global pandemic response, according to a statement from WFP. “A dedicated fleet flies them to and from crisis areas amid reduced commercial flight availability due to travel restrictions and decreased demand,” reads the statement.
Ethiopia and Ghana both host regional hubs-part of a new network of hubs also set up by WFP in Malaysia, Panama, South Africa and the United Arab Emirates (UAE). This hubs-and-spokes system routes workers and medical cargo to the frontlines with flights to and from hubs and a fleet of smaller aircraft moving both cargo and personnel on to priority countries.
“Key stakeholders helped establish this vital initiative in Addis Ababa,” said Steven Were Omamo, WFP Country Director and Representative in Ethiopia. “The Government, its Ministry of Finance in particular, Bole International Airport and Ethiopian Airlines proved their commitment to fighting the pandemic by setting up and maintaining this life-saving airlink.”
The service ensures humanitarian organizations can provide the people and cargo needed to sustain assistance operations that millions of vulnerable people depend on across Africa.
WFP has also established three global Humanitarian Air Hubs in Liège, Belgium, Guangzhou, China, and Dubai in the UAE, which is the only hub that has a dual global and regional role.
WFP opened the Addis Ababa Air Hub in March at Bole Airport where 25 WFP aviation and logistics staff manage a 24-hour medical equipment operation. Staff organize warehouse space for dry bulk, temperature-controlled and cold storage cargo and onward flights. WFP also provides cargo tracking, warehouse management and customer service to countries across Africa in collaboration with the Africa Centres for Disease Control and Prevention.
As part of a global appeal to raise USD 2 billion for the COVID-19 response launched by the United Nations Office for Coordination of Humanitarian Affairs on 25 March, WFP called for USD 350 million to support its common aviation, shipping, storage and transport and engineering services that are vital to the entire humanitarian response to the pandemic.
The third batch donation of Jack Ma foundation
The third batch donation of Jack Ma foundation for Africa has arrived at Addis Ababa bole international airport on Monday, April 27, 2020.
The third-round donation mainly includes 4.6 million masks, 500,000 swabs and test kits, 300 ventilators, 200,000 sets of protective clothing, 200,000 face shields, 2,000 temperature guns, 100 body temperature scanners, and 500,000 pairs of gloves.
To combat the spread of the virus and support the response in Africa, the Chinese billionaire and co-founder of Alibaba group Jack Ma has made different donations to the continent. 
Last month Jack Ma foundation has issued two huge rounds of the donations, the first round of donation was issued out a total of 1.1 million testing kits, 6 million masks and 60,000 medical use protective suits and face masks that were distributed to the 54 African countries, and the second donations include 500 ventilators, 200,000 suet and face shields, 2000 thermometers, 1 million swabs and extraction kits and 500,000 pairs of gloves. All the three donations were shipped by Ethiopian air lines from china to Addis Ababa and to the perspective countries.
The third donation will be given for centers for disease control Africa and African union member states to support Covid19 responses
“The world cannot afford the unthinkable consequences of a COVID-19 pandemic in Africa. The crisis is proving to be more difficult and longer lasting than any of us had expected. We must make every effort to get prepared. As members of the global community, it would be irresponsible for us to sit on the fence, panic, ignore facts, or fail to act. We need to take action now,” said Jack Ma.
