Over four million customers of the Ethiopian Electric Utility have been waiting a decade to get electricity.
Budget constraints, forex shortage, being unable to work on an off grid system, limited capacity of production cables are being blamed for the delay connecting electric lines to households.
“The capital investment cost of energy sector is substantial. To address this we are promoting public private partnerships and private sector independent power producing schemes to meet the country’s energy need,” Sileshi Bekele, Minister of Water, Irrigation and Energy said.
Beside shortage of hard currency, there is a significant problem with local cable production and the demand of the Ethiopian Electric Utility.
According to data from Ministry of Water, Irrigation and Energy, the country needs 33 million meters of cable per annum while local cable producers are only able to make three million meters a year.
“As we are in a reform, the ministry is working hard to compensate the backlogs through various schemes,” Sileshi said.
Ethiopia launched the national electrification program in 2017 with the support of international development partners and financing from the World Bank to achieve 100 percent energy access by 2025.
Despite the progress made so far, only 44 percent of Ethiopians have access to electricity. The per capita consumption of electricity is only 100kw which is one of the lowest in Sub Saharan Africa.
The ministry began a pilot program in 12 towns with the goal of reaching 35 percent of rural areas that can be accessed off grid.
Presently, Ethiopia is able to generate 4,300MW from water dams, three wind farms, many small diesel generators and waste to energy based power plants.
Mega projects like GERD, Koysha, Genale- Dawa hydroelectric dams will jointly produce additional 8724 MW which is double the current generation capacity, according to the Ministry.
The government is working to change the 97 percent of the hydro dominated power generation to mix with other alternatives because hydro is affected by climate change. As a result, Ethiopia began power rationing last month as the water level dropped significantly at Gibe III. Ethiopia looses an estimated 3.3 million USD as a result of power outages per year.
The Ethiopian Electric Utility has 2.9 million customers.
Millions wait years for Electricity
Hotel show not a sleeper
The 7th Hotel Show Africa took Place at Millennium Hall from June 27-30. It attracted over 140 companies representing 500 brands.
Hotels, interior designers, hotel equipment suppliers, lodges and consultants participated in the show. 
For the first time the show awarded people working in the community based lodge and tourism sectors.
Hirut Kassaw, Minister of Culture and Tourism said at the opening ceremony “this kind of show have great value connecting playmakers in the hotel industry in addition to helping us promote tourism.’’
Kumneger Tektel, managing director of OOZZIE Hospitality and Tourism Management Consultancy said the government should work to have more meetings, incentives, conferences and exhibitions (MICE) to get more jobs into the sector.
Those pending relocation await compensation info
The Addis Ababa City Administration has not prepared lands for homes and a planned compensation fee for the people who will be relocated by the 29 billion birr Beautifying Sheger Project.
The administration has listed both kebele and private houses that will be demolished for the project but it has not given any direction so far to the respective sub city as to how much money will be paid for the houses and which condos, kebele houses and lands are ready for the people that will be relocated.
According to a source from the Administration finding houses for the relocated people may take a year.
The project which will touch the nearby river houses of Yeka, Gullele, Arada, Kirkos, Nifas Silk and Akakki sub cities should give a house or land to the relocated people.
In the current working procedure those who have a private house will get at least a minimum of 643,000 birr for compensation and land to build the house.
Those who live in kebele or housing agency houses will get a condo if they can afford to pay the 20 percent down payment or can choose to rent kebele or condo houses.
A source said “things are not going as we expected. The government plans to start the project by next year but no real evacuation process has begun nor has demolishing the houses that are in the radius of the project. We don’t know the prepared land or homes for these people.”
The sources added that the administration has not yet decided the floor compensation rate price for the planned to be demolished private houses.
“It is still unknown how much money will be paid to those who have their houses demolished,” a source said.
The Beautifying Sheger Project is a three-year initiative of the Prime Minister Abiy Ahmed. The project will run along the rivers of Addis Ababa, developing green spaces starting from Entoto to Akaki.
Of the total 56 km that the project covers, the Chinese government has pledged to develop 12kms.
The main aim of the project is to elevate the city to a site of urban tourism leveraging on rehabilitation of the aforementioned water bodies. To enhance the well-being of city dwellers by putting river flooding in check and creating public spaces, parks, bicycle paths and walkways along the river banks. It also strives to enable the aspiration of a green economy by expanding green spaces and creating related services economies.
To get money for the project PM Abiy Ahmed, hosted a dinner program last May in the National Palace in which one plate was served for 5 million birr. Over 257 businesses and notable persons participated.
Celebrating 10th year anniversary
Oromia International Bank (OIB), which has become one of the top four financial institutions, has celebrated its 10th anniversary at a ceremony held at Hilton Hotel.
The bank took about two years to get through the formation process, but then they became extraordinarily successful. Abi Sano, President of OIB, said that the bank passed several challenges to reach today’s success.
He attributed hard work to their results. The bank is now equal to major banks in many standards.
The bank’s asset that was 1.1 billion birr in 2010 has reached 30.3 billion birr in May 2019, while the paid up capital now climbed to 2.3 billion birr, one of the largest.
At the celebration a representative said that total deposits stood at 24.8 billion birr in May 2019 that was 821 million in 2010. In 2010 OIB registered a profit before tax of 22 million birr, however this figure dramatically increased to 938 million birr at the end of the past financial year.
Currently OIB has close to 5,200 employees and over 260 branches, which is high compared with some old banks. Since its formation the bank has been led by Abi, who also served at the state owned giant Commercial Bank of Ethiopia (CBE) as the youngest president in the history of the bank.
OIB is also the first private bank to start interest free banking in the country. Abi said that his bank is the leader in generation and operation of the interest free banking sector in the country.
