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MIDROC inaugurated a unique branch of Queen’s Supermarket at Keranyo area-Keranyo Plaza at a cost of 60 million birr including pre operating and working capital. The building alone is priced at 37.7 million birr.
The Supermarket was inaugurated in the presence of Shiek Abdela Ali Huissen Almoudi, brother of the owner of MIDROC, and Arega Yirdaw, CEO of MIDROC and President of Unity University.
“The Supermarket has a unique feature as it is designed in line with internationally accepted norms for supermarkets making shopping easy and comfortable,” said Arega Yirdaw.
The Supermarket is built with other facilities such as a gas station, car service, Café, bank and event center. It has also safe and spacious parking lots that enable it to host close to 150 cars.
“We need to be exemplary for the other investors who want to build a Supermarket in line with internationally accepted standards as we are the seat of the diplomatic capital,’’ adds Arega.

Third Islamic bank comes to life

Local News

July 29, 2019

Zad Bank Share Company, which is the third Islamic bank under formation, began selling shares to Ethiopians to provide interest-free banking services after the central bank issued them a license to sell shares and open an account.
Under Sharia law, it is not permitted to charge interest as money isn’t allowed to generate more money by being put into a bank account or lent to someone else. Instead, banks make their money by sharing the risk of their investments with investors, operating on a profit-loss basis.
“Our bank activities are intended to provide capital financing, leasing and other products of interest-free banking with strict Sharia law which is supervised by seven board members”.
Importantly, Islamic finance is not just for Muslims as perceived – on the contrary, Islamic financial products have also proliferated in non-Muslim communities.
The global Islamic financial services industry reached an overall total value of USD 2.4 trillion at the end of 2017 and the market is expected to grow to USD 3.2 trillion by 2020.
Islamic finance promotes the use of additional financial products amongst consumers who are already accessing conventional interest-based financial services.
“Islamic -bank will encourage investment in addition to protecting the society from harmful and immoral activities”, said Munir Hussein project manager and founding member of the bank.
Understanding the gap in skilled human power in the area, the bank will have a plan to open training center adds the manager to disclose the intention of the bank.
After getting a green light from the central bank, the founder is negotiating with international financial firms for the purchase of a core banking system aiming at facilitating the task in advance.
Anyone who wants to buy a share should have a minimum of 30,000 birr. The bank under formation aims to collect one billion birr subscribed capital and plans to collect four billion birr in a year and a half.
According to the project manager, the coming up of full-fledged Islamic banking in the country will have a significant impact in reaching a segment of the population that remains outside the banking system adding that there is a huge number of unbanked people.
According to the World Bank report, Ethiopia is the least banked state in which a single branch serves 20,000 people.

Cooking oil skyrockets suspiciously

Local News

July 29, 2019

The price of locally distilled edible oil has gone up significantly after reports surface that palm oil was linked to health hazards. Sources in the local edible oil industry stated that in the past few weeks, prices of the local product have been rising rapidly.
About a month ago the price of local edible oil was about 50 birr per litter, which immediately increased 5 birr when the public health institute announced that imported palm oil has several health related problems, according to sources.
Sources said that the price of local oil price has spiked in recent weeks and has reached about 70 birr per liter at producers. The price at the retail market has also reached 100 birr, according to a product distributor, who works for a local oil factory.
The Addis Ababa City Administration Trade Bureau Deputy Head Mesfin Assefa said that price increases are occurring without any economic. He said that they attempted to put a stop to this not only with oil but other household items as well.
“If this does not solve the problem our other option is suspending the actors and prosecuting people,” Mesfin told Capital.
He said that this week their office has taken against some sales people for increasing prices for no apparent reason.
Prices of necessities are rising more quickly in recent times triggering high inflation.
In its market observation Capital confirmed that the price of oil has reached 90 birr per litter at the retail market from the previous 65 birr. Locally produced oils use ingredients like soybean, niger seeds, cottonseeds, and other products grown here.
Since the implementation of the price cap in 2011 the government has imported oil and it now controls the palm oil market via consumers’ associations or shops in the country. The import is being done to manage the price, while the negative effect of the edible oil including the quality of the imported product has created concern for experts.
Recently the Public Health Institute, which is the government body, advised stopping palm oil imports due to side effects it then changed the statement to recommend exercising caution.

Public institutions go cashless

Local News

July 29, 2019

In order to move toward a cashless society Prime Minister Abiy Ahmed ordered public institutions to replace cash transactions with cashless ones.
The PM stated that it would be difficult to fully stop cash transactions in the whole society. “But we can start by ourselves and implement the cashless transaction from one public institute to another,” he said.
He talked about this at a National Doing Business Committee, made up of several public enterprises, which is being done to improve Ethiopia’s rating at the World Bank.
He also advised the National Bank of Ethiopia (NBE) and the Ministry of Finance to conduct a study that would lead to cashless payments. He stated that public institutions would settle their payments for private clients without cash.
The study would also indicate the payment of major transactions that should be done without cash. The private sector would be also included in the study. Currently cash transactions are the dominant payment system in the country, while the government has tried its best to improve the system.
It costs the government a lot of money to print cash and it costs forex because its done abroad. NBE via the support of international partners has implemented the improvement of a cashless society by introducing a core banking scheme and introducing a national payment system. At the same time public enterprises and other major private transactions are made via cash. Settling payment in millions of birr for a single purchase is common on the Ethiopian market. The PM said that public bodies shall undertake non cash payments for other public institutions without further study.