2merkato

Ethiopia's year-on-year inflation jumped to 40.6 percent in August from 39.2 percent in July as food prices, especially those of cereals went up, the Central Statistical Agency said on Tuesday. 

Early in August, the agency had said that Ethiopia’s inflation rate climbed to 39.2 percent in July from a year earlier.

Inflation accelerated from 38.1 percent in June, according to the agency. Food prices increased by 47.4 percent in July after rising 45.3 percent in the previous month, while the cost of non-food items fell from 27.9 percent to 27.8 percent, it said.

Sugar Corp., a state-owned sugar producer, said that it was building ten new factories and was inviting private investment as part of a plan to become one of the world's 10 biggest exporters of the crop.

The project involves constructing plants and establishing farms at a cost of about 4.6 billion dollars in four regions of the country, Abay Tsehaye, director general of the company, said last week.

Abay said that Ethiopia hopes to become one of the top 10 exporters of sugar in the coming 15 years.

Car sales slowed down in Ethiopia over the last week causing major importers of used cars to marginally cut prices.

Importers say that the latest trade and tax regulations are to blame for the slowdown. Industry observers on the other hand say that the increase in production and number of importers during the last few years have contributed to the slowdown.

The Ethiopian Electric Power Corporation (EEPCo) signed yesterday power transmission project contracts worth around 330 million dollars with companies from ten countries.

Indian companies take the biggest share of the contract winning three contracts worth more than 50 million dollars. 

Among the companies which entered into agreements with EEPCo are Energoinvest DD of Bosnia & Herzegovina, ALISTOM GRID of France, ABB AG of Germany, AECOM of USA-Canada and Norinco International Limited of China.

The projects are expected to be completed within 12 to 24 months.