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International mining giant Vale has entered the Ethiopian mining sector with an exploration license received from the Ministry of Mines. The Brazilian mining company established an exploration site on a 900km2 concession in the Konso area, Ethiopia.

Vale expects to explore and extract gold as well as seeking other commercially viable minerals such as iron ore said Marcelo A. Borges First Secretary and Deputy Mission at the Brazilian Embassy.

Vale is the largest Brazilian mining company and second largest internationally noted Borges.

The National Bank of Ethiopia has approved Tsegave Tetemke as the new president of Zemen Bank, Ethiopia. The central bank approved Tesgaye after rejecting Zemen’s first choice for president, Anteneh Assefa for lack of experience.

Zemen bank has been without a president since the resignation of Brutawit Dawit Abdi from the post in April of 2011.

Chinese footwear company, Hujuan, is to begin operations in Ethiopia. Hujuan commenced investment activities in Ethiopia two months ago and is in the final stages of constructing a factory in Dukem. The factory is expected to produce 3000 pairs of shoes daily for export.

Hujan anticipates that production will begin in its Ethiopian factory early in the New Year according to Berhanu Nigus, Head of Quality Testing and Certification Services at the Leather Industry Development Institute.

Ethiopian Airlines has announced new nonstop flight between Addis Ababa, Ethiopia and Muscat, Oman. Ethiopian will make the flight to Muscat six times a week according to a press release from the airline.  

Ethiopian Airlines is pleased to commence flight services to Oman which has been nominated as the ‘Arab Tourism Capital 2012’ by the Arab League said Tewolde Gebremariam Chief Executive Officer of Ethiopian Airlines in the press release.

The new flight services to Muscat make it the 7th destination in the Middle East for Ethiopian Airlines and the 63rd internationally noted the press release.

The Ethiopian Revenues and Customs Authority is in the process of automating its customs valuation system. The new system will allow the customs system in Ethiopia to transition to a transaction cost system as per the World Trade Organization Agreement in Customs Valuation from a minimum price setting system.

The project is being undertaken by the Center for Development of Advanced Computing, an Indian Software company for 3.5 million birr. ERCA signed an agreement with the company in September of 2011.

Ethiopian company, Belayab Car Assembly plc, introduced a new model vehicle assembled in Ethiopia. The company based in Adama, Ethiopia is in partnership with First Automobile Workshop a Chinese company.

The new model vehicle, named Vela, is expected to retail for 315, 000 birr with an initial promotional discount rate of 290,000 birr to 298,000 birr.

Belayab reached an agreement with the First Automobile Workshop a year before it began production on the Vela according to Solomon Habtamu Manager of Belayab.

The Ethiopian Electric Power Corporation announced that that first tender to outsource its utility management to an international company failed, last week. The sole utility company in Ethiopia, EEPCo, is considering further options.

The tender was put out as part of the power corporations aim to transform its utility operations, including distribution, transmission and power generation.

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.