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FDI reaches 7 per cent in Ethiopian GDP By Andualem Sisay Ethiopia is showing improvement in attracting Foreign Direct Investment (FDI) by registering significant increment in the last decade.
According to the 2007 Economic Report on Africa entitled, Accelerating Africa’s Development Through Diversification, which was launched on Wednesday in Addis Ababa, the country’s FDI has increased from 0.3 per cent of GDP in 1994 to 7 in 2004.
Ethiopia, like most low-income countries in Sub Saharan Africa, has relied on traditional exports such as coffee, oilseeds, hides and skin, pulses and other export crops to earn foreign exchange. For instance, the share of traditional items in total exports during the period 1980 to 1990 was close to 95 per cent.  MORE CBE capital to increase 150%
Excess liquidity reaches 16.9 billion By Eskinder Michael
The Commercial Bank of Ethiopia (CBE) is set to see its capital more than double as the government plans to inject 2.5 billion birr into the existing 1.5 billion birr. The plan will be effective as soon as the parliament passes the bill.
The National Bank of Ethiopia, based on international banking standards, has devised a law that prohibits banks from loaning over 25% of their capital to customers. The fact that the CBE has such a low amount of capital makes it very uncomfortable for foreign banks to have transactions with it. MORE |
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