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Real Estate Giants Face Off in Federal Court Over Trademark Infringement

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The trademark dispute between Jambo Construction, a long-standing leader in Ethiopia’s business and real estate sector, and Jenboro Real Estate, a newer competitor, has reached the Federal First Instance Court.

Jambo Construction filed a lawsuit alleging, “My name and trademark have been imitated, resulting in a loss of 1 million birr.” In response, Jenboro Real Estate submitted its defense to the Commercial and Investment Bench, arguing that the lawsuit is “legally baseless and barred by the statute of limitations.”

The case, which has drawn significant attention to property rights within Ethiopia’s expanding real estate sector, centers on the claim that the name “Jenboro” is phonetically and orthographically too similar to the well-established “Jambo” brand.

Founded in 1996, Jambo Construction states that it has built a reputation over nearly three decades in the construction and real estate industries. The plaintiff seeks protection for its trademark, which is registered with the Ethiopian Intellectual Property Authority under international classes 36 and 37.

According to Jambo’s lawsuit, the defendant’s use of the name  “Jenboro Real Estate ” in the same line of business creates confusion “in sound, spelling, and intonation” with its registered brand. Jambo further alleged that this “brand hijacking” has confused both the media and the public, leading to a financial loss of 1 million Birr.

In a detailed response recently submitted to the court, Jenboro Real Estate presented a strong defense and called for the dismissal of the charges. The defendant’s lawyers raised a preliminary objection based on the statute of limitations.

Jenboro noted that it obtained its business license and entered the real estate sector in 2020. While the plaintiff filed its claim for compensation in 2024/25, the defendant argued that under the Civil Code, claims for damages must be filed within two years of the alleged harm occurring. Since Jenboro has been using the name for over six years, they contend that the claim is time-barred.

Additionally, Jenboro argued that the plaintiff only registered the trademarks “Jambo” and “Jambo + Image.” They asserted that a lawsuit cannot be brought over a trademark that has not been explicitly registered, citing a binding precedent from the Federal Supreme Court Cassation Division.

Regarding the meaning and origin of the names, the defendant explained that “Jenboro” has its own deep significance. It is an indigenous name rooted in the owners’ birthplace—specifically, the name of a village and a school in the Gumer Woreda of the Gurage Zone in Southern Ethiopia, meaning “Sun” or “Light.”

In contrast, the defendant argued that the plaintiff’s name, “Jambo,” is neither Amharic nor Gurage but a Swahili word meaning “Peace” or “Hello.” Therefore, the two names share no linguistic relationship or connection in meaning.

Visually, Jenboro pointed out that its logo consists of seven letters, includes the slogan “Enter on Time,” and features a “J” symbol. In comparison, the Jambo logo has five letters and its own distinct imagery, making the two clearly distinguishable.

The defendant further contended that because purchasing real estate requires significant capital and a high level of caution, buyers are “prudent” consumers who thoroughly investigate a developer’s identity, credibility, track record, and contract details. Such consumers are unlikely to make a purchase based solely on a similarity in names.

Finally, Jenboro Real Estate claimed that the plaintiff’s lawsuit was filed in bad faith with the intent to eliminate a competitor from the market.

Accordingly, the defendant has requested that the court dismiss the 1 million Birr compensation claim, rule that its trade name and trademark do not resemble the plaintiff’s, and order the plaintiff to cover the defendant’s legal fees and other expenses. The court’s final decision on the matter is still pending.

NBE to Launch Interdealer FX Platform, Ease Export Surrender Rules Under Reform Drive

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As part of its ongoing macroeconomic and foreign exchange reforms, the National Bank of Ethiopia (NBE) plans to establish an interdealer trading platform and relax surrender requirements for commodity exporters by the end of the current fiscal year.

The interbank foreign exchange market was officially launched on January 28 through a technology-backed system operating on the trading infrastructure of the Ethiopian Securities Exchange (ESX), which features a dedicated FX segment. While the platform is designed to ensure transparency, competitive pricing, and real-time execution, its performance so far remains unclear.

Building on this launch, the central bank is preparing a roadmap to deepen the interbank FX market. According to commitments made to development partners, the roadmap will include the creation of an interdealer trading platform—an electronic system enabling anonymous, real-time trading among major financial institutions.

This initiative is a key structural benchmark under the reform program introduced at the start of the 2024/25 fiscal year. The NBE aims to operationalize the new platform by the first quarter of 2026/27.

Officials say a well-functioning interbank market will strengthen banks’ foreign exchange risk management and enhance transparency. Work is also underway to upgrade the settlement system so that interbank FX transactions can be settled domestically.

Interdealer platforms serve as the backbone of modern interbank FX markets. By aggregating liquidity from multiple banks into a single high-volume marketplace, they improve pricing efficiency, liquidity, and operational stability. Banks can also hedge inventory imbalances from customer transactions more quickly, reducing market risk exposure.

Experts note that continuous, real-time streaming quotes on such platforms help establish a more accurate, market-determined exchange rate. Increased competition typically narrows bid-ask spreads, lowering transaction costs for institutional participants.

According to the latest review by the International Monetary Fund (IMF), the NBE will develop indicators and benchmarks to assess the development of the FX market. These metrics—including the size and persistence of the parallel market premium, interbank trading activity, unmet FX demand, and banks’ net open positions—will guide decisions on gradually reducing and ultimately eliminating surrender requirements by the end of the IMF program.

The IMF review also indicates that the NBE will ease rules governing how exporters use foreign currency held in retention accounts to meet surrender obligations, giving them greater flexibility to secure favorable exchange rates. Implementation is expected by end-June 2026, when a new bank data reporting system will enable direct monitoring of compliance.

Under Sub-Article 6.2 of Foreign Exchange Directive No. FXD/01/2024—issued at the outset of reforms on July 29, 2024—exporters were required to convert 50 percent of their proceeds into birr at a freely negotiated rate, while retaining the remaining 50 percent in foreign currency accounts.

However, a major amendment issued on February 11 significantly altered the framework. Service exporters are now exempt from surrender requirements and may retain 100 percent of their earnings indefinitely. Exporters operating in Special Economic Zones (SEZs) are also allowed full retention.

The revised Directive No. FXD/04/2026 represents one of the most sweeping overhauls of Ethiopia’s foreign exchange regime in decades, incorporating core recommendations under the IMF’s Article VIII framework.

Key reforms include the removal of long-standing exchange restrictions, authorization for banks to issue internationally recognized foreign currency cards for outbound retail payments—including e-commerce—subject to sufficient balances, and expanded rights for foreign currency account holders to directly cover education, medical, and travel expenses for immediate family members.

The previous minimum balance requirement of 100 US dollars to open foreign exchange savings accounts has also been scrapped. Additionally, profit-making institutions may now open foreign currency accounts funded by grants or other non-export sources, while outbound investment by Ethiopian nationals will be permitted on a case-by-case basis with NBE approval.

Together, the measures signal a decisive shift toward a more market-based and flexible foreign exchange system.

Government Moves to Strengthen Health Charities by Addressing Legal Hurdles

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The Ministry of Health has announced a new initiative aimed at reinforcing Ethiopia’s health sector by identifying and resolving legal gaps that currently impede the work of charitable organizations, including the “Heart to Heart” Children’s Aid Foundation.

Aschalew Worku (MD), Senior Advisor at the Ministry, stated that the government is prioritizing the modernization of healthcare and the expansion of accessible medical services. He emphasized the Ministry’s strong support for domestic efforts to perform complex medical procedures, such as heart surgeries, that once required patients to travel abroad.

“We are actively working to identify and correct legal bottlenecks that slow down humanitarian activities,” Aschalew said.

The remarks came during an event held by the Heart to Heart Children’s Aid Foundation, where the organization introduced its newly appointed Goodwill Ambassador and announced an upcoming fundraising campaign in the United States.

Berhan Tedla, Founder and CEO of Ethio-Istanbul General Hospital and Board Chairman of the Foundation, highlighted the organization’s progress despite its recent establishment. He noted that the foundation has already provided free heart surgeries to 113 children, at a cost exceeding 120 million birr.

Over 71 Billion Birr in Shared Revenue Transferred to Ethiopia’s Regions in Seven Months

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The Speaker of the House of Federation, Agegnehu Teshager, announced that 71.33 billion birr was transferred to regional states during the first seven months of the 2018 Ethiopian fiscal year.

This allocation was executed in accordance with the established shared revenue administration and transfer formula.

The Speaker made these remarks during a consultative forum organized by the Subsidy Budget and Shared Revenues Standing Committee of the House of Federation.

The gathering focused on a financial audit report regarding the administration, collection, and transfer of shared revenues involving federal and regional stakeholders. (ENA)