2merkato

The Ethiopian Commodity Exchange (ECX) announced it will further strengthen the warehouse receipt financing scheme during the opening of the Warehouse Receipt System for Inclusive Agricultural Finance Symposium.

The scheme makes farmers eligible for bank loan using their Warehouse Receipt issued by the Exchange for commodities stored in ECX warehouses as collateral.

ECX Chief Executive Officer, Eleni Gebre-Medhin, told participants at the Warehouse Receipt Systems for Inclusive Agricultural Finance Symposium, organized jointly by ECX and the International Finance Corporation (IFC), amount exceeding 1.5 million USD warehouse receipt financing service was made available to framers last year. The scheme has considerably assisted smallholder farmers who would have no choice but to sell produce at low prices.

Buna International Bank, Ethiopia signed an agreement to implement CORE Banking Solutions with Infosys. BIB signed a Memorandum of Understanding with Indian based Infosys for the installation of the system which will allow the bank to launch electronic banking, last week.

Infosys will commence with deploying the project in three weeks after negotiations are concluded between the two sides said Gezahegn Dugassa, Project Manager for ICT with BIB.  It is expected that part of the new system will be implemented by the Ethiopian New Year, the deadline imposed by the National Bank of Ethiopia on all banks to automate their banking services, he noted.

Ethiopian Airlines, Ethiopia’s flag carrier, will take delivery of the second lot of Bombardier Q400 Next Gen airplane in the last quarter of 2012 it was learned.

The aircraft are expected to arrive between September and December said Esete Yeshitla, Acting Public Relations and Publications Manager with the airline.

The five remaining planes have been upgraded with bigger baggage compartments, seven business class seats, two lavatories and spacious overhead compartments and the ability to furnish hot meals. 

The Commercial Bank of Ethiopia and the Construction and Business Bank, both state managed institutions, have reached an agreement to establish an integrated card payment system that will allow customers to withdraw money from common Automated Teller Machines.

The Commercial bank currently operates 58 ATMs and is waiting on delivery of 400 more it ordered a month ago. The construction bank is also expecting delivery of 20 ATMs ordered at the same time allowing the two banks to have almost 500 ATMs between them.

The Memorandum of Understanding establishing the arrangement signed earlier this month requires the CBB to pay fees to the commercial bank for the use of its technology.

Turkish Textile company, Sahinler Ethiopia Textile Investment plc, received a 628 million birr loan from the Development bank of Ethiopia. The company is expected to engage in the manufacture of clothing, knitted items and a range of items at its plant in Adama.

The company originally applied for a loan of 1 billion birr according to anonymous sources.

The Development bank generally gives less money than what is requested because companies tend to inflate their financial requirements due to budget or currency exchange rate consideration explained Tadesse Hatiya, Vice President of Credit Services with DBE.

Horizon Addis, the only tire manufacturer in Ethiopia, is set to invest 1.1 billion birr on an expansion project. Horizon is in the process of negotiations with one of the top tire manufacturers in the world, Continental Germany, to exchange its antiquated machinery for the latest equipment.

One of the new machines that Horizon is planning to install is a 30 million birr machine that can produce 80,000 pieces of light truck radial tire every year. It is expected that the new machine will begin production in the coming September allowing Horizon to supply higher quality truck and bus tires.

It is expected that the expansion program will be completed in 18 months according to Belay Dechasa, General Manager of Horizon.

Ethiopia’s year on year inflation rate has dropped for a third month in a row compared to 29.9 pc in April to 25.5 pc in May owing to the ease in food prices, according to the Central Statistics Agency on Tuesday. It has fallen from 36.3 pc in February.

Food inflation declined to 29.2 pc in May from 36 pc in April while non-food inflation remains fixed at 19.6 pc, the Central Statistics Agency said.

Many of the poorest African countries including Ethiopia have been affected by upsurge of oil prices and poor crop harvest which in turn induced double digit inflation rates.

Source: Reuters

Licensing for investment in the manufacturing sector has shown an increase in Ethiopia. The Ministry of Industry has licensed 56 projects in textiles, chemical, pharmaceutical, leather and agro-processing in just the last two and a half months according to sources.

805 million birr in capital has been invested in Ethiopia between January-March in projects expected to employ more than 3450 permanent and 3850 temporary people when fully operational.

A total of 1043 projects were licensed with a total capital of 31.2 billion birr in the last year.

Ethiopia earned 71 million US dollars from textile exports in the last ten months. The revenue earned is more than 50% higher than the amount earned at the same time last year although the revenue is 136.3 million US dollars less than expected.

Export of value added finished products has increased with garments sales increasing to 75.1%, woven crafts 5.2%, Textile fabrics 10.7% and yarn 9%.  

The revenue did not meet targets because of delays in textile projects expected to become operational this financial year said Fekadu Ethiopia, Communications Expert with the Textile Industry Development Institute.

Ethiopia is borrowing 1.78 billion birr to produce 50MW of power from refuse accumulated at the Repi Waste Disposal in Addis Ababa according to the Ethiopian Electric Power Corporation. This ground breaking effort is part of plans to diversify the national power supply it was said.

The EEPCo signed a Memorandum of Understanding with Cambridge Industries, a UK company, to facilitate the project including garbage collection, treatment and conversion to electric power.

The financing for the project was obtained through a low interest loan said Miskir Negash, Head of Public Relation of the corporation.