2merkato

The National Bank of Ethiopia ordered all commercial banks to freeze accounts of borrowers who have not submitted Tax Identification Numbers as of the 26th of December.

All commercial banks were instructed to freeze the current accounts of borrowers maintained in the bank until they present TIN as requested, by a letter from the National Bank addressed to all presidents of commercial banks.

Abay Bank Share Company, Ethiopia reported a 2.35 million birr net profit in the first quarter of the Ethiopian financial year (July-October). The bank, a new entrant to the Ethiopian banking sector, earned 14 million birr in total revenue according to Dr. Molla Mengistu Manger of Business Development for the bank.

It is expected that Ethiopia’s geo-thermal project, the 70 MW Aluto Lango, will cost 270 million US dollars. The project is funded by the World Bank and development agencies from France, Germany and Japan.

The project is currently producing 7.3 MW and is expected to be finalized by 2015.

The Ethiopian government aims to utilize renewable energy sources such as wind, sugar, ethanol as well as hydro power to meet the nation’s energy needs, by 2025.

Ecom Advertising has joined forces with local realtors in Ethiopia to restart publishing real estate information on the internet through liveinethiopia.com, an Ethiopian real estate website.

LiveInEthiopia was released in the beginning of 2010 to take the rather chaotic Ethiopian Real Estate Industry – the renting, buying and selling part – to a different and modern level. It had a different business model then; it used to collaborate with the realtors, traditionally known as "Delalas", on all levels. It used to advertise the properties, negotiate with customers and was directly involved in the business.

Ethiopia earned 123.8 million US dollars in revenue from the export of manufactured goods in the last five months according to the Ministry of Industry. The revenue earned by the manufacturing sector exhibited a 95.5% year on year increase according to Melaku Taye Public Relations Director to the ministry.

The revenue was acquired from the export of chemicals, agro processing, pharmaceuticals, leather products and textiles and garments said Melaku.

Buna International Bank, Ethiopia is to begin micro lending and saving operations. The bank wishes to change the banking system in Ethiopia where there are large numbers of depositors but few are able to access bank loans according to Eshetu Fentaye, President of Buna.

To this end Buna will offer micro lending and saving services to enhance banking services to small scale actors who could potentially make a difference in the economy he said.

Ethiopia’s progress towards World Trade Organization membership has been a slow and costly process said Geremew Ayalew, Director of Foreign Trade Relation and Negotiation Directorate, with Ministry of Trade. The accession process is taking time and is costing Ethiopia a lot explained Geremew.

The Ethiopian team responsible for the accession process has prepared responses to the third round of questions presented by member states of WTO according to Geremew. The round consists of an estimated 134 questions primarily dealing with economic issues he said.

Ethiopian Airlines, Ethiopia's flag carrier, is in negotiations with Bombardier Commercial Aircraft for the purchase of five Q400 turboprop aircraft. The airline has been in negotiations with the Canadian manufacturer for some months according to a senior Ethiopian Airlines Executive.

Bombardier and Ethiopian Airlines are in the process of negotiating the details in the purchase agreement said the executive. It is expected that this step will be concluded in the next couple of months he explained.

Nyota Minerals expects to finalize the Definitive Feasibility Study on its Ethiopian Project by the middle of the coming year, 2012. The company’s first priority is completing the DFS for the Tulu Kapi, Ethiopia project, said Richard Chase, Chief Executive of the company.

Nyota projects that the DFS will be completed in June of 2012 according to Chase.

The DFS is significant as it will allow the mining company to engage with banks in relation to financing for the projects he explained.

Allana Potash is expecting to acquire equity capital from new strategic investors for its project in Ethiopia, in the New Year.

The company expects that the positive preliminary economic assessment completed last month will result in developments in the coming year.  

The PEA stated that a one million ton per annum mine at the Dankil project will cost 796 million US dollars to build. The capital cost figure makes the projects the lowest cost and possibly the highest return potash project in the world according to Farhad Abasov CEO of Allana.