2merkato

Ethiopian drivers will soon have to pay an annual vehicle license fee towards maintaining the condition of the roads according to the Ethiopian Road Fund Office. It is expected that drivers will be charged 165 birr for a car when they renew their licenses.

Trucks will be charged more and additional fines will be exacted from trucks and buses that exceed weight limits or drive over long distances. The annual fee will be in addition to existing fuel taxes and vehicle charges from municipalities.

The earnings that Ethiopia expects to receive from the export of spices, pulses and oilseeds are projected to increase by a third to an estimated 900 million US dollars in the current fiscal year.

The increase in revenue is related to incentives offered to investors in the sector including land for processing and warehousing and the waiving of duties related to import and export said Haile Berhe President of the Ethiopian Pulses, Oil Seeds and Spices Processors-Exporters Association.

The association is confident that the incentives will enable exporters to export as much as is made available he added.

It may Exceed 10 Percent - Deputy Prime Minister

Thursday, 9 June 2011

Ethiopian economic growth may exceed 10 percent contrary to the International Monetary Fund's prediction on May 31 that it would fall from 7.5 percent this year to 6 percent in the 2011/2012 fiscal year, Hailemariam Desalegn, deputy prime minister of Ethiopia, said yesterday. IMF had said that the country's monetary policy was pushing up inflation which, combined with restrictions on bank lending, would in turn bring about a slower economic growth.

Hailemariam said that expansion would not drop below 9 percent in the fiscal year to 7 July 2012, from 11.4 percent this year. The economy has expanded an average of 11 percent over the past seven years according to IMF data.

According to the deputy prime minister, this year's sharp increase in inflation is the result of global food and fuel price hike and not loose monetary policy. He said that the price of oil had risen due to the current unrest in the Middle East and when that problem is solved, the price would go down. Therefore, he said, the problem Ethiopia is facing is only temporary.

The inflation rate jumped to 29.5 percent in April from 25 percent a month earlier as food prices increased, the Central Statistical Agency said on May 10. And according to IMF, broad money-supply growth was 35 percent at the end of March, which had previously projected growth of 22 percent in money supply this fiscal year.

Source: Bloomberg.com

Ethiopia’s economy may double in size over the next nine years, African Development Bank Chief Economist Mthuli Ncube said in a speech in Johannesburg today. Ncube predicted that Ethiopia’s economy mig

ht expand 10 percent this year and East Africa would expand by about 6.7 percent in 2011 and 2012.

Ncube’s prediction stands in contrast to the International Monetary Fund’s (IMF) prediction, made on 30 May 2011, of lower economic growth at 6 percent for Ethiopia in the 2011/12 fiscal year.

Ethiopia's National Macroeconomic Council, chaired by the Prime Minister, announced that Ethiopia's economy is expected to grow by 6.6 percent this year, showing a slight increase.