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16 public and private offices launched

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A total of 16 public and private offices launched a one-stop-shop service to clients.
Among the offices include Ministry Revenues, Ministry of Trade and Industry, Ministry of Agriculture, Ministry of Science and Innovation, Ministry of Transport, and Ministry Mines and Energy.
The National Bank of Ethiopia, Customs Commission, Ethiopian Investment Commission and Information Network Security Agency also signed the deal.
The system would help offices to deliver simple, predictable, efficient and fast services to their clients.
Increasing revenue and satisfaction of clients, reducing corruption, bringing transparency and encouraging export trade, are among the benefits of the system, she said.
Ethiopia is ranked 159 among 190 economies in the ease of doing business, according to the latest World Bank annual ratings.
Pictured are PM Abiy Ahmed and Adanech Abebe Minister of Revenue launching the project at the PM office in the afternoon of Saturday January 4.

Oromia president blames investor for disrupting the region

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Deputy President of Oromia Region, Shimelis Abdisa blames investors in the region for their action of bribing the civil servant and public office leaders that brought a huge crisis in the region.
“You have created corrupted officials up to the upper echelon where it disabled the current administration to move forward,” said Shimelis at the Investors’ Day organized by Oromia Region President’s Office at Elilly Hotel on Thursday January 2.
The President added that unless the investors work with regional government there will by no way out of the current crisis.
The region’s officials stressed the need to transform from the conventional way of performing and serving the people to a new paradigm of development strategy of Performance Management and Delivery Unit (PEMANDU) Model which is going to be implemented in a few weeks’ time.
PEMANDU was first applied in Malaysia in 2009 to pull out of the development crisis and served to double foreign direct investment (FDI).
“We need to put our investors in a driver’s seat and shift our development endeavor strategy where government role will focus on supporting the private investments,” said Sisay Regassa, Oromia Region Technical Advisor on job creation.
The Oromia Regional State, in its 20 zones and 19 towns are ready to implement the Big Fast Result (BFR) strategy that will last for the coming 3-5 years aiming at creating millions jobs for youth.
According to Sisay, the region which is deep in a youth unemployment crisis, the economic development the country registered for the last 15 years will not save nor solve the issue of job creation. To this end the region need to implement the big fast result model to quickly solve the problems.
Over 300 investors from manufacturing, mining, agriculture and tourism gathered to single out their bottleneck in accordance with the new paradigm that the Region decisively plan to work on the untapped resource of the region to create more jobs as quick as possible.
The Malaysian government set up PEMANDU to lead change in the country and to ensure that its national transformation programmes were successfully delivered. It has focused on the key areas where public services and the economy were most in need of reform and has made a positive impact on such issues as crime prevention, reducing levels of corruption, and improving rural infrastructure.
An expert who requested anonymity told Capital that the on and off political instability is affecting the investment.
“We have not seen burning factories like a year ago, but the displacement of people, the clashes, and the protests occurring throughout the country are affecting the investment inflow, and insecurity discourages business investment, it scares people. This is because it accelerates the cost of doing business either through direct loss of goods and properties or the cost of taking precautions against business risks and uncertainty. These costs could have a negative impact on business development and progress” the expert added
The investors from their respective sector will explicitly write down the bottleneck in investing in the region to be used for planning and assessment. The president of the region urges the need to collaborate to fight corruption and create jobs.

NBE working on directives for movable assets

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The National Bank of Ethiopia (NBE) announced that directives are under preparation to activate the Movable Property Security Right Proclamation that was ratified by the parliament last year.
Yinager Dessie, Governor of NBE told Capital that the central bank is drafting the directives for the implementation of the extraordinary credit scheme to expand the financial inclusion of the country.
“To make the proclamation effective we are working with relevant government bodies on detail execution documents besides the directive,” the Governor explained.
He said that the new financing approaches will broaden access to finance in the country.
On the new scheme the warehouse receipts introduced by Ethiopian Commodity Exchange is the first, according to Yinager, while others will be effective in the near future. “For instance intellectual property registered by intellectual property law, or controlled forest and forest products, livestock, farming, and others will be included on the movable property financing scheme,” he added.
Article 27 of the movable property proclamation defines movable property that includes; inventories, agricultural products, incorporeal assets, corporeal assets, the right to use land unless prohibited by pertinent laws; a security right under a hire-purchase agreement, security trust deed, trust receipt, commercial consignment, mortgage of a business, sale with ownership reserved, sale with right of redemption, security rights in certificated securities, and security rights in warehouse receipts, motor vehicle, trailer, agricultural machinery, construction machinery, industrial machinery, and other properties excluding land, house and building.
The International Finance Corporation (IFC) financed the proclamation drafting process which is based on United Nations Commission on International Trade Law.
The proclamation is part of the financial inclusion strategy (NFIS), launched in 2017 with the support of the World Bank, to increase the percentage of adults with a transaction account from 22 percent in 2014 to 60 percent in 2020.
The working group used Malawi and Zambia as examples. It was made up of NBE, lawyers and stakeholders in the financial sector.
The proclamation is expected to benefit several small business and rural communities.

Second mortgage bank under formation

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The second private mortgage Bank gets green light from the National Bank of Ethiopia to provide financing for the chronic housing problem targeting low income communities.
With an appealing name, prominent business people, set to establish Selam Bank that provides long term housing finance in a bid to contribute their part in filling the huge housing demand in the country.
Betlhem Alemu, the noted entrepreneur and one of the 100 Most Influential African Women in 2019 and owner of Sole Rebels a handcrafted footwear company is one of the few founders. Sara Abera owner of Sara Garment Designers and Manufacturers who design and supply high fashion, ladies dresses and accessories, Zemedeneh Negatu Global Chairman of the Fairfax Africa Fund, Girma Gelaw, owner and general manager of Bamacon Engineering, a reputable construction firm and Amman Fissehazion owner of EBS television are some of the few founders of the mortgage bank.
The founders target to raise up to one and half billion birr and hopes others join their journey.
The first time a fully fledged private mortgage financial firm, Goh Betoch Bank Share Company was launched some months ago with the help of major financial businesses and other players to be an eye breaker in the area.
According to government data, Ethiopia shows the highest annual urban growth rate of 5.3 percent driven by rural-urban migration. The urban population in Ethiopia is projected to reach 37.6 percent by 2050.To this end, increased the demand for housing in cities is said to be crucial issue that should be addressed both by private and government engagement.
The prospects further stated that every year 100,000 houses should be constructed to replace the old and meet the growing demand for new homes.
According to one of the founders the minimum share will be 10,000 birr to ensure inclusive ownership.
An expert who requested anonymity told Capital that the housing scheme has been neglected from the loan scheme until the condo housing project was introduced by the government in 2004, which is fully controlled by the government.
Adding that, the condo housing project is vulnerable to corruption in the construction stage and lottery process besides poor performance in the accomplishment and advocate market based housing schemes.
Selam Mortgage Bank founders believe that most housing projects are neglecting the low income society. For this end they hope to accomplish their endeavor and will start operation soon.