2merkato

The Ethiopian Insurance Association has requested permission from the National Bank of Ethiopia to enable a system to share credit information amongst insurance companies.

The insurance companies have need of such a system to check if clients are in debt to other insurers so as to help with the 1.7 billion birr of uncollected debt currently weighing down the industry. The association is proposing to collect the debt collectively owed to the sector within two years.

It is to be remembered that Ethiopia’s newly ratified ‘Insurance Business’ proclamation has made several changes to how the industry operates. The new proclamation prohibits insurance companies from providing policy coverage on credit according to a notification issued by the national bank in a circular signed by Temesgen Zeleke, Director of the Insurance Division Directorate at NBE. Add a comment Add a comment

Tullow Oil has begun drilling work on its concession in South Omo, Ethiopia. The British oil exploration is drilling its first well following eighteen month long seismic tests an area over 18 thousand kilometers square. The company began drilling last week on the bloc named after a local bird ‘Sabisa’.

The explorer has hired a drilling company, and all the drilling machines and other required machines have arrived at the drilling location according to sources.

It is to be remembered that the Ethiopian Ministry of Mines announced that it was in the process of facilitating visas for a Tullow drilling crew that will oversee the launch of drilling processes in October. Add a comment Add a comment

Ethiopia is to ban the export of rough opal as part of an effort to encourage exporters to add value to gemstone and earn increased revenues according to sources at the Ministry of Mines. The ban on opal exports will be the second similar action following the ban of unprocessed tantalum just five months ago.

Almost 80% of the rough opal, used in the production of jewelry and ornaments, is primarily exported to India.

There are currently 17 associations made up of than 2 thousand miners are currently engaged in the mining of opal in the Amhara Regional States. The artisan miners in these associations sell the gems to an estimated 200 exporters licensed by the ministry. Add a comment Add a comment

Adag International plc opened a cereal, spice and oilseed processing plant in Ethiopia. The factory was constructed on 4 thousand meter squares in Adama, Oromia Regional State.

The construction work on the factory was completed in nine months and required an investment of 15 million birr. The machinery for the plant was imported from the United Kingdom at a cost of 300 thousand birr.

The factory has the capacity to process 75 thousand tons of agricultural products daily for export purposes. Add a comment Add a comment

Condominium shops in Lideta area of Addis Ababa sold for a record amount according to the city Housing Development Projects Bureau. The municipality earned 284.8 million birr from the sale of the condominium shops that sold more than eight times the floor price.

The Housing Development Projects Bureau received 14 thousand bids for the 150 shops it had on offer and announced 149 successful bids.

The successful bidders will pay 50 percent of the agreed upon sum upfront and the balance over a period of five years through the Commercial Bank of Ethiopia. Add a comment Add a comment

The latest round of land lease auctions held by Addis Ababa City Administration received lower bids than what was offered in the previous round two months ago.

The municipality attracted an estimated 2,371 bidders for the land it put on auction. The auction included land targeted for residential, mixed use and apartment use. Most of the plots are to be found in Bole sub-city while others are to be found in Kolfe Keranio and Nifas Silk according to sources.

The land in Bole sub-city is classified into third and fourth grade plots and the eight plots in Nifas Silk are graded as third and second while the two plots in Kolfe Keranio are grade three. Add a comment Add a comment

The National Bank of Ethiopia is to oversee all foreign currency requests. The bank will manage applications for foreign currency through Letter of Credit or other transfer requests to best allocate limited foreign exchange resources it was said.

The move to take over the management of all foreign exchange by commercial bank is said to follow a recent shortage of hard currency that is inhibiting the flow of import activities. Importers have been forced to wait for extended periods of time for approval of their foreign currency requests leading to allegations of abuse by bank officials according to sources.

The central bank took charge of giving final approval following these charges of mismanagement. Add a comment Add a comment

Julphar Gulf Pharmaceutical Industries is to officially launch a manufacturing plant in the Addis Ababa. The pharmaceutical plant constructed on 40 thousand square feet is near to completion with all machinery in place according to Kelly Daniell, Communications Manager for Julphar.

The manufacturing plant is designed to manufacture different medicines in solid and liquid form it was learned. It has the capacity to produce 150 million bottles of syrup and suspension medicines as well as 500 million tablets and 107 million capsules every year.

The company is yet to decide what types of medicine it will manufacture and will make its decision on the basis of the demand on the local market said Daniell. Add a comment Add a comment

Ethiopia could possibly become a member of the World Trade Organization by 2014 depending on the outcome from discussion currently underway it was said.

The announcement was made during the visit to country made by Pascal Lamy, outgoing Director of the WTO. The Director General held talks with Dr. Tewdros, Adhanom, Ethiopian Foreign Minister in regards to the WTO accession process according to Nebiyu Tedla, from the office of the ministry spokesperson.

Ethiopia has been working to fulfill the requirements for membership for almost ten years and is currently in stage 4 of the process it was noted. Add a comment Add a comment

The National Bank of Ethiopia has issued the directive allowing banks and micro-finance institutions to offer transaction based mobile and agent banking services. The directive has come into effect as of the 1st of January.

Mobile banking services include deposits and withdrawals through electronic means as well as facilitating payment and money transfer.

The directive has been anticipated by banks such as Berhan, United and Zemen who have had acquired the capacity to offer e-services but have been unable to do so because awaiting the proper regulatory framework from the central bank.