The new Prime Minister, Abiy Ahmed, invited leaders of opposition parties, civic organizations, and social activists to dinner at the Presidential Palace. He said work should be done to strengthen political parties and build democracy.
Notable opposition leaders like Ledetu Ayalew, Bekele Gerba, Dr. Merarra Gudina, Girma Seifu and Prof. Beyne Petros came to the dinner along with celebrity athletes, Haile Gebreselassie, and Keninessa Bekele.
“For a long time there has not been a strong habit of holding talks and working together for a better democracy in Ethiopia. We have chosen the gun instead of discussions, we have chosen our own way instead of consulting each other. We know through history that division threatens our foreign security. We cannot create a better country unless both government and opposition parties work together for a better democracy.’’
“The truth is plain, that we cannot register sustainable economic growth unless we build a strong political and democratic system in our country, ” he added.
As a government we have a bigger motivation than ever before to see strong political parties because we believe that healthy competition is the key to democracy when strong ideas come, it helps us to do a better job,” he said.
The PM urged opposition parties to come with good ideas instead of wasting time on resentment.
“Creating a new government by force does not benefit anyone, wise people improve something from what they have and transfer it to the next generation. We don’t have to start from zero, we must continue from where we are and we all have the responsibility to do that which will benefit our country. After two years there will be an election and the government will do its best to carry out a free and fair election. More than ever before this is the right time, when we need strong opposition parties and we urge you to continue your discussions with the ruling party which you have already started, we need you to come up with a new sprit to build a strong nation,’’ he said.
“It is a good thing to be interested in working with us. There is a lot of work to be done. I fear that Dr. Abiy’s own party will challenge his attempts to bring change,” an opposition party member said.
Dr. Merera Gudina, leader of the Oromo People’s Congress (OPC) appreciated the new PM’s initiative to work closely with opposition parties .
In related news the PM also traveled to Jijiga and Ambo where he promised that the government would work harder to widen the political space.
He said: “this has been a tragedy that should never have taken place and we will work to find sustainable solutions within a very short time, we will support those who have been displaced as well,” speaking on previous internal conflicts between regions that left many displaced.
During his speech at Ambo Stadium the PM said: “Ambo should be a tourist attraction not a site of violence and we will work hand in hand with the people to achieve this.” Thousands welcomed the PM in Ambo by wearing t-shirts sporting his picture.
The PM was also in Mekele last Friday. He spoke glowingly about the patriotic Tigryans who devoted their lives to freedom. “Tigray is the symbol of Ethiopia. We had an ancient civilization during the times of Axum, a philosopher like Zereyakob was born here and a hero like Meles Zenawi is the fruit of this region. Like they did it before the Tigrynas should work hard to develop their country, democracy and economy .”

Ethiopia’s banks have reported an increasing amount of non-performing loans, Capital learnt.
Sources from financial firms told Capital that the ratio of NPLs have increased, reversing the previous trend. The National Bank of Ethiopia (NBE) recently issued a new rule, mandating that the NPL be less than five percent of the outstanding loan. However according to information Capital obtained, the ratio of NPLs increased since the government devaluated the birr by 15 percent against major hard currencies.
According to experts it is now more common for debtors to not make their payments on time and there have been more defaults. This has occurred after the central bank issued a directive limiting banks’ outstanding loans by 16.5 percent compared with the preceding year, if the person they are loaning the money to is not engaging in an export related business. Furthermore, according to sources in the financial industry, some smaller banks have already maxed out on the amount of loans they are allowed to disburse.
“If a debtor knows they are not going to be able to get a new loan until next year they are less likely to use the money they earn to pay off their loan,” experts explained.
Sources at the financial firms, including higher officials agreed that this is occurring in private banks, although they declined to give more details.
“Even though there is a five percent limit on NPLs before this trend started in most banks you would only see three percent of NPLs, an expert in the financial sector said. He explained that the current condition may affect the youngest banks. Larger banks have more capital, allowing them to follow the National Bank’s 16.5 percent directive.
The private sector has claimed that the new law hinders it from obtaining adequate loans while they are also facing a shortage of hard currency.

Ethiopian Airlines and the US Embassy inaugurated an ultramodern baggage scanner machine on Monday, April 9. Present at the inauguration were Ethiopia Group CEO Tewolde GebreMariam and US Ambassador to Ethiopia Michael Raynor. The ambassador stated that the United States’ role as a partner in Ethiopia’s aviation success is something the Embassy is very proud of, and committed to building upon.
“Today we’re celebrating the installation of state-of-the-art equipment that will enhance the safety of millions of travelers who either visit Ethiopia or transit through this important hub every year. Ethiopian Airlines’ rapid growth comes with enormous benefits in terms of trade, commerce, tourism, and investment opportunities – not just in Ethiopia, but in the United States and beyond.
The screening devices are provided by the US Government and employ a new technology called computer tomography that represents the latest in imaging for baggage scanning. The technology is expected to enhance Ethiopia’s ability to detect not only potentially hazardous items, but contraband items such as drugs and illicit wildlife products. It is the first to be deployed in Africa.

The continental reinsurance giant, Africa Reinsurance Corporation (Africa Re) announced that it will diversify its investment in Ethiopia’s capital by up to USD 10 million.
The 146th meeting of board members was held at Sheraton Addis on Monday April 9. They reviewed Africa Re’s activities and final accounts for 2017 and after the meeting leaders told Capital that they had decided to expand investments.
Hassan Boubrik, Board Chairman, and Corneille Karekezi, Chief Executive Officer and Managing Director of African Re, said that even though market conditions have been tough the reinsurance company’s businesses had grown.
The CEO stated that a reinsurance firm must be liquid so they have invested in several African stock exchanges including: Johannesburg, Casablanca, Legos, Cairo, and Nairobi. They also have invested in many other business sectors. .
“We have made some decisions today to invest in real estate in Mauritius and we are studying a proposal to invest in Ethiopian real estate,” he added.
The corporation has an office in Mauritius. In 2011 it also opened one in Addis Ababa. “We are investing in Addis to increase visibility in a market where we have a host agreement and to improve the source of income,” the CEO said. “The possible investment in Ethiopia is difficult to mention right now but it is something from USD 5 million to 10 million. We are still studying the proposal given by the municipality of Addis Ababa,” Karekezi said.
Currently the corporation invests in local banks as a term deposit.
In the past fiscal year the gross written premium of Ethiopian insurers reached USD 170 million of which the USD 42 million has been transferred to reinsurers including the recently formed Ethiopian Reinsurance, a local reinsurer. From the stated USD 42 million transferred to reinsurers the Africa Re stake has been close to USD 17 million.
The Africa Re gross written premium has grown to USD 746.83 million, 16.3 percent above the 2016 performance.
The corporation’s net profit amounted to USD 88 million and net combined ratio stood at 95 percent. The technical margin and return on investment stood at 5.1 percent and 5.5 percent respectively. The corporation stated shareholders’ funds grew by 11 percent to reach USD 902 million in 2017.
Africa Re was established in 1976 and includes 41 AU member states including Ethiopia and private banks, African Development Bank and non-continental actors as shareholders. Ethiopia is one of the founding shareholders. The corporation was given an A minus rating by S&P and A by AM.