Browsing: Ethiopia

• In a body blow, Fitch Ratings has moved Ethiopia’s rating from “CC,” where it had been downgraded in November, to the new status of “C”.
• This adjustment reflects the agency’s deepening concerns about Ethiopia’s economic health and the rising risk of default following a missed interest payment on 11 December.
• A further severe downgrade by Fitch Ratings to ‘restricted default’ (RD) looms if Ethiopia fails to make the coupon payment within the set 14-day grace period.

Fitch Ratings agency has served Ethiopia’s economy a gut punch by further downgrading Ethiopia’s credit rating into junk territory, expressing concerns about the “increased likelihood” of default by the second most populous country in Africa.

This economic setback for Ethiopia, home to approximately 120 million people, comes as a result of the country’s failure to meet its financial obligations to creditors. Specifically, Ethiopia was unable to pay a coupon on its single …

• Kenya’s Bluewave Insurance Agency has announced plans to raise $6 million to expand into five new African markets to increase insurance penetration in markets characterized by low uptake.
• Company Founder and CEO Adelaide Odhiambo says the investment would be raised over the next three years.
• The insurer is partnering with Mobile Network Operators and banks to distribute affordable micro-insurance products, with plans to enter Uganda, Nigeria, Ethiopia, Malawi, DRC, Tanzania, Rwanda, and Zambia.

Kenya’s Bluewave Insurance Agency has announced plans to raise $6 million as the firm seeks to expand into five new African markets, aiming to increase insurance penetration in regions characterized by low uptake. Adelaide Odhiambo, Founder and CEO of Bluewave Insurance Agency, stated that the investment would be raised over the next three years to support the expansion plans.

Bluewave Insurance Agency’s new target markets

The company has forged partnerships with large aggregators, specifically Mobile Network Operators …

• Most African countries are set to increase their economic growth next year compared to 2023, with East Africa leading the charge.
• Countries will be powered by their travel, tourism, transport, logistics, financial, and telco sectors.
• However, some African countries will not enjoy this fastest-growing economy wave as they will be under severe financial stress in 2024 due to their huge debt obligations.

The most recent analysis from the Economist Intelligence Unit (EIU) predicts that by 2024, Africa will have the world’s second-fastest expanding major area, behind only Asia. According to the EIU’s African Economic Outlook, Africa’s amazing growth trajectory is evidence of the continent’s resiliency and its enormous unrealized economic potential.

Most African countries are set to increase their economic development compared to 2023, with East Africa leading the charge, as noted by the EIU’s Africa Economic Outlook. Powered by their thriving travel, tourism, and hospitality industries as well …

With its immense potential and vast resources, Africa stands at a critical point in its economic growth path. While the continent has promising economic prospects, it also has significant challenges that have impeded growth. A concept known as “blended finance” has gained popularity in recent years as a viable answer to assist governments in overcoming economic challenges. As a result, it is vital to look into what blended finance is, how African economies can leverage its benefits and its crucial role in supporting sustained growth across the continent.…

• Kenya’s appeal comes at a moment when East Africa has seen only one exit through an IPO in the past decade.
• 2022 marked the highest level of exit activity in the region in the past decade. Projections show that 2023 is poised to surpass 2022 performance.
• Private Equity investors typically opt for one of three main methods to exit their investments: selling to industry competitors, conducting secondary buyouts, or engaging in Management Buyouts (MBOs).

Kenya is urging private equity firms and venture capital companies to turn to the Nairobi Securities Exchange (NSE) as a platform to realize their deal exits.

The move is part of the Kenyan government’s broader strategy to deepen its capital markets and attract more private investments. “Once you are in, exit through our capital markets,” said Mr. Abubakar Hassan Abubakar, the Principal Secretary of the State Department of Investment Promotion in the Ministry of …

On the 1st of June 2023, African ministers for trade and industries adopted a protocol that prevents trading second-hand clothes across the continent under the preferences of the AfCFTA. This was during the high-level African Union – East African Community and the private sector forum, the second Ministerial Retreat of the Council of Ministers on the AfCFTA, held in Nairobi, Kenya, to assess the progress and address critical aspects of the agreement’s implementation.…

• The Grand Ethiopian Renaissance Dam (GERD) impact on downstream nations Egypt and Sudan has turned the project into a geopolitical hotspot.
• The three countries expect to find common ground on the Nile dam’s construction in about four months.
• Egypt’s concerns are rooted in its dependence on the Nile waters for the livelihoods of its over 100 million people.

The Grand Ethiopian Renaissance Dam (GERD), perched on the Blue Nile, stands as a symbol of Ethiopia’s ambitions for progress, energy independence, and economic growth. However, the $4.6 billion dam’s colossal impact on downstream nations, particularly Egypt and Sudan, has transformed this engineering marvel into a geopolitical hotspot.

Negotiations over the fate of the GERD are back on, with leaders of Egypt, Ethiopia, and Sudan expressing their intent to find common ground within a four-month window.

The stakes are high. Egypt relies on the Nile’s waters for agricultural sustenance and the livelihoods …

• Fresh financing will bolster Ethiopia’s progress in achieving wheat self-sufficiency.
• Data shows Ethiopia’s wheat productivity has struggled to match the demands of a rising population, urbanization, and economic expansion over the past decade.
• Statistics show that Ethiopia’s annual wheat imports average roughly $600 million.

Ethiopia, the second-largest wheat producer in sub-Saharan Africa, has received a significant boost from the African Development Bank (AfDB) in the form of an $84.3 million grant aimed at propelling the nation’s wheat production to new heights.

The grant, a collaborative effort between the AfDB, the Government of the Netherlands, agribusiness firm OCP Africa, and the Global Center on Adaptation, holds the promise of not only enhancing wheat production but also bolstering exports.

CREW initiative in Ethiopia’s wheat production

As wheat gains prominence as a major crop cultivated across the vast expanse of African plains, Ethiopia strategically positions itself as a pivotal player in the sub-sector.…

• Initiative with the US company is expected to cost around $15 million in initial investments.
• The joint venture will primarily focus on producing aircraft thermo-acoustic insulation blankets, electrical wire harnesses, and other parts.
• As of early June, Ethiopian Airlines’ order book comprises 29 aircraft, including 17 Boeing 737 MAXs, five Boeing 777Fs, one Boeing 787-9, and six Airbus A350-1000s.

Africa’s largest carrier, Ethiopian Airlines, is set to make aviation history as it enters a groundbreaking joint venture with Boeing to manufacture aircraft parts.

The collaboration, which is expected to cost around $15 million in initial investments, aims to bolster Ethiopia’s aerospace industry.

The Ethiopian Investment Commission announced the deal on August 18, revealing that the state-owned airline has already signed a memorandum of understanding with Boeing and the local state Industrial Parks Development Corporation (IPDC).

Ethiopia Airlines, Boeing joint venture

This strategic partnership will establish a cutting-edge aerospace factory at …

Until the Biden Administration, US-Africa trade relations had remained remarkably consistent. Africa Growth and Opportunities Act (AGOA), in place since October 2000 through five separate US administrations, has been the ‘centrepiece’ of this consistency.…