Browsing: Ethiopia’s economy

Economically, Ethiopia is on the receiving end after the US government declared that the East African nation had violated the African Growth and Opportunity Act (AGOA) due to the alleged human rights violations in Tigray. This means that Ethiopia will not have duty-free access to US markets if it does not comply by January. If the AGOA privileges are removed, it would lead to an “existential threat” for Ethiopia’s manufacturing sector.
The non-compliance could have come from the publication of the joint Ethiopian Human Rights Commission (EHRC) and OHCHR report on November 3.
Ethnic violence, torture, sexual and gender-based violence, property looting, destruction of infrastructure and religious sites and violations of international humanitarian law and other human rights violations are some of the issues highlighted in the report.…

In 2020 gross reserves amounted to $3.1 billion which the reports said is like 2.5 months of imports and are not likely to provide a short term alternative source of development financing.

With Ethiopia expected to receive $1 billion in Eurobond in December 2024, expanding public debt in the context of large public expenditure requirements can limit the fiscal space which will lead to repayments risks. To address this challenge, the country will need to work on reforms in public finance and investments management so as to improve the efficiency of public expenditures, the report explained.

In order to contain the debt burden in the government has established the fiscal consolidation strategy ‘Home-Grown Economic Reform agenda’, which plans to expand public financing sourcing, suspend non-concessional borrowing, harness grants and concessional loan and restructure debts.…

The National Bank of Ethiopia today granted the first financial services license to a foreign-owned company, Ethio Lease, as the Ethiopian Government delivers on its promise to gradually liberalize the economy and create jobs.

Increasing foreign direct investment is a centerpiece of Prime Minister Abiy Ahmed’s reform agenda to increase private sector growth in a country where an estimated 75% of the 100+ million population are under 30 and the average age is 18.

Ethio Lease will address the equipment and foreign exchange shortages facing Ethiopia by providing local businesses with access to high-quality equipment, allowing businesses to grow their operations and thereby creating jobs and increasing productivity throughout the country. Ethio Lease is a wholly-owned subsidiary of New York-based equipment leasing firm, Africa Asset Finance Company Inc. (AAFC).

Ethio Lease’s offerings include leases for high-quality equipment, mostly in partnership with leading Original Equipment Manufacturers (OEMs).

AAFC will provide …