2merkato

Annual inflation rate in Ethiopia fell to 35.9% in December following a decline in some food costs reported the Ethiopian Central Statistical Agency.

Prices increased by 1.7% during December with food prices climbing by just 0.2% due to a decrease in the price of some pulses and cereals said the Agency.

Diageo plc plans to increase its share of Ethiopia’s beer market from 15% to 50% as it finalizes its takeover of Meta Ambo Brewery, Ethiopia. The international liquor manufacturer would like to develop the business and overcome the competition in Ethiopia said Ekwunife Okoli, Head of African regional markets for Diageo.

Diageo will invest in enhancing capacity to increase supply according to Nick Blazquez, President for Diageo Africa. The producer expects to introduce other of its products to Ethiopia he noted.

The Ethiopian Ministry of Communications and Information Technology is considering a new bill to certify the competence of exporters, importers, wholesalers and retailers in the IT and electronic sector in Ethiopia.

The bill has been sent to the Ethiopian Information and Communications Technology group for review.

The new will bill require industry operators to hire a range of professionals from various fields including technicians to maintain and service electronic and IT equipment to receive accreditation.

Ethiopia’s Petroleum Enterprise is seeking a supplier for anthracite coal to power furnaces for smaller cement factories with vertical kilns. The factories are allegedly unable to utilize the steam coal being imported from South Africa as it could undermine the quality of their product.

Six smaller cement factories in Ethiopia, Abyssinia Cement, CH Clinker, Debresina Cement, Enchini Medrock Cement, Hungh Shun Cement, and Jemma Cement lodged complaints with the Ministry of Trade claiming that they would not be able to use the steam coal being imported for use by cement factories in Ethiopia.

The Commercial Bank of Ethiopia is to begin operating the core banking system by the end of January. Commercial Bank signed an agreement with the Temenos Group AG, a Swiss firm, to procure the IT software for an estimated 70 million birr.

The National Bank of Ethiopia instructed all commercial to adopt core banking solutions in July of last year.

The use of core banking solutions is expected to achieve a nationwide electronic payment system according to the central bank’s targets.

The Metal and Engineering Corporation of Ethiopia has agreed to replace the electric meters operated by the Ethiopian Electric Power Corporation. The project is valued at nine billion birr and will exchange electric meters for new ‘smart’ meters.

The new ‘smart’ digital meters are expected to automatically register electric consumption and report back to EEPCo without requiring manual reading like the analog meters currently being used.

MetEC has employed an estimated 2000 workers to be paid per every new meter they install according to sources.

Ethiopian Airlines, Ethiopia’s flag carrier, accepted the bid submitted by the Aviation Industry Corporation of China to construct a 100 million dollar maintenance hanger.  

The AVIC and Ethiopian Airlines are discussing financing for the project said Tewolde Gebremariam, Chief Executive of Ethiopian Airlines.

It is expected that the construction project for the maintenance hanger will commence in the first quarter of 2012 to be completed within 900 days from when construction begins according to Tewolde.

The National Bank of Ethiopia approved 10 nominees for the Board of Directors of Enat Bank. The new Board of Directors will be responsible for electing a chairperson.

The 10 nominees approved are Meaza Ashenafi, Nigist Haile, Aster Solomon, Dr. Assefa Bekele, Nestanet Mengistu, Nigatu Tesfaye, Mekete Shiefraw, Dr. Kassahun Aberu, Chanyalew Yilma and Ambassdor Konjit Sine Giorgis.

The central bank failed to approve only one of the original nominees, Tsegaye Tetemke, because his position as president of Zemen Bank.

The National Bank of Ethiopia reduced the minimum ratio of deposits Ethiopian banks need to hold in reserve from 15% to 10%. The change, took effect as of January 2 as per a directive issued by the central bank of Ethiopia.

The National Bank changed its monetary policy to increase the amount of cash banks have available for lending according to economists.

The amount of ‘liquid assets’ to be held as a proportion of deposits was also decreased from 25% to 20% confirmed Alemayheu Kebede Director of the Communications Directorate of the Central Bank.

The Ministry of Mines, Ethiopia is to sign a Petroleum Development and Production Sharing Agreement with South West Energy. The agreement will allow the company to prospect for gas and oil reserves in Gambella Regional State, Ethiopia.

The agreement will be signed by Sinkenesh Ejigu Minister of Mines and Tewodros Ashenafi, Chief Executive Officer and founder of South West at the Head office of the Ministry of Mines.

South West Energy will also be able to develop gas and oil reserves in the exploration area according to the agreement.
The petroleum exploration and development agreement was approved by the Council of Ministers.