2merkato

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.

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.