Low credit ratings for African countries are leading to high borrowing costs and liquidity challenges. This is according to panellists at a plenary session on harnessing sovereign credit ratings power for Africa’s economic transformation, organised by the Economic Commission for Africa at the 2024 African Economic Conference (AEC) in Gaborone, Botswana.

Zuzana Schwidrowski, Director of the ECA’s Macroeconomic, Finance and Governance Division at the ECA said low credit ratings contribute to high borrowing costs and more broadly to a vicious spiral of liquidity challenges as well as debt accumulation for African countries. Despite the overall challenges in credit ratings, she emphasized some positive developments and turnarounds in selected credit ratingtrajectories of African sovereigns, such as Moody’s upgrade of Tanzania or S&Ps positive outlook on South Africa. However, the overall double-digit inflation prevents African Central Banks to reduce policy rates, which is another factor behind high borrowing costs and overall subdued growth, especially among resource (and fuel)-intensive exporters. 

In her presentation on credit ratings in Africa, Sonia Essobmadje, Chief of ECA’s Innovative Finance and Capital Markets Section, said, “Improving Africa’s fundamentals and implementing a structural reform program would certainly over time contribute to better ratings, but more importantly to sustainable, inclusive growth and the well-being of the population. The development of African national and regional financial markets should be a priority, as this would reduce excessive dependence on external debt and improve the transmission of monetary policy.”

251 Communications and Marketing Private Limited, the leading event organizer in Ethiopia, has officially announced the launch of the 7th Annual Real Estate and Home Expo, taking place from December 27 to 29, 2024, at the Sheraton Addis Interluxury Collection Hotel.

This prestigious three-day event is set to bring together key stakeholders in Ethiopia’s real estate and construction industries, including top developers, investors, financial institutions, home builders, and interior designers. The Expo aims to showcase the latest developments, innovations, and investment opportunities in the real estate sector while fostering networking and collaboration among industry leaders.

The announcement was made today during a press conference held at the Tulip Inn Hotel, where the organizers discussed the Expo’s objectives and outlined key highlights for this year’s event. The conference emphasized the importance of public-private partnerships in advancing Ethiopia’s housing and urban development.

Ries Engineering Share Company (RESCO) held a Komatsu Open House event at the Addis Ababa Golf Club on November 21, 2024. The event was graced by esteemed guests, including Engineer Habtamu Tegegn, the Minister of Mines, and Eric Perben, General Manager of Komatsu Africa Division.

The gathering drew a diverse crowd of state ministers, government officials, construction and mining company representatives, valued customers, and media personnel, showcasing RESCO’s significant role in Ethiopia’s industrial landscape.

Founded in 1961, RESCO has grown from a modest team of 40 employees to a robust workforce of 507 skilled professionals, establishing itself as a leader in providing world-class machinery across various sectors, including mining, construction, power, agriculture, and automotive.

At the event, RESCO highlighted its key partnerships with industry giants, including Komatsu, Cummins, Massey Ferguson, and Ford, emphasizing their contributions to national development. The company has played a pivotal role in major projects such as the Grand Ethiopian Renaissance Dam (GERD), supplying essential construction machinery and technical support.

In observance of Global Entrepreneurship Week 2024, the U.S. Embassy successfully conducted a series of events fostering insightful and engaging discussions among women entrepreneurs, university graduates, U.S. alumni, startups, and others involved in Ethiopian business and entrepreneurship to share practical solutions to sustain businesses amid ongoing currency fluctuations. 

Held under the theme “Entrepreneurship is for Everyone” the series of events facilitated discussions on the challenges and opportunities arising from currency fluctuations, in partnership with panelists from the American Chamber of Commerce (AMCHAM)-Ethiopia, Ethiopian Economic Association (EEA), USAID- Ethiopia, Bank of Oromia, Addis Ababa University and Samra Leather, who shared their insights and strategies for navigating economic challenges.  In her remarks, Counselor for Public Diplomacy Naomi Fellows said: “We are excited to celebrate GEW 2024 with such a diverse group of entrepreneurs and leaders. This dialogue is key to understanding the challenges Ethiopian businesses face and finding actionable strategies to ensure their success.”