Dashen Bank, one of the biggest and oldest private banks, donates five million birr for the newly established South West Ethiopia region.
According to Asfaw Alemu, President of Dashen, his bank provided its contribution to support the developmental projects of the new region.
“Beyond contributing to expand access to finance in the region, we want to be allies with the people of the region in terms of contribution for developmental activities,” Asfaw said at the handing over ceremony held in Bonga, capital of South West Ethiopia region.
In related developments, Dashen Bank inked a memorandum of understanding (MOU) with Gambella regional administration.
As per the bank’s disclosure, it will work to boost business activities in the region as well as support community based projects.
As per the cooperation, Dashen will provide 25 million birr to micro finance institution (MFI) in Gambella and the MFI will disburse the finance for micro and small enterprises at minimal interest rates.
Besides that, it has been stated that the agreement will allow for positive outcomes on the effort that the regional government is working on, in particular, agriculture, housing developments and other economic and social services in the region.
At the signing ceremony held at Gambella city last week, Dashen promised to pledge one million birr to support 100 university students who came from the Gambella region.
At the signing ceremony, Mulugeta Alebachew, Chief Strategy and Innovation Officer at Dashen, said that the bank will accelerate its support to heighten the effort of the regional administration, which works to improve regional development.
Dashen finances new region, inks MOU with Gambella admin
World Bank affirms commitment to Ethiopia
IFC buys $160 mln stake in Safaricom Ethiopia
The World Bank Group reassures its commitment to support Ethiopia for the work of betterment of its citizens.
Despite several global partners and international institutions retreating from providing their support due to the conflict in northern Ethiopia, the World Bank has been providing some sort of support for developmental projects in the country; even though some project have faced postponement.
For instance, in the ended budget year, most of the central government inflow loans came from World Bank, while the total new flow was reduced for the second consecutive year unlike the experience in the past.
However, there are some factors that led to the reduction, like the government’s decision to cut commercial loans and approve credits for public enterprises that are on their final stage.
However in a statement that the World Bank issued on September 8, it disclosed that it remains committed to continuing its partnership with Ethiopia for the benefit of all Ethiopians.
It said that multiple conflicts combined with historic drought and other shocks have severely impacted millions of Ethiopians, jeopardizing the economic and social development progress the country has achieved in recent years.
“Consistent with our strategy to remain engaged in situations of conflict and fragility and to support greater resilience of Ethiopia’s people, the World Bank Group remains committed to continuing its partnership with Ethiopia for the benefit of all Ethiopians,” it said.
“Accordingly, the World Bank Group is supporting Ethiopia to address its citizen’s demands for basic human services such as education, food security, health, clean water, livelihood support, women empowerment, social and environmental protection across the country,” the document reads, adding, “Over the past decade, our interventions have helped Ethiopia to make significant progress in key human development indicators: primary school enrollments have quadrupled, child mortality has been cut in half, and the number of people with access to clean water has more than doubled.”
It said that as a development focused organization, the World Bank does not have the mandate to get involved in the internal governance issues of its member states.
Recently on its bulletin to review the country’s debt, the Ministry of Finance disclosed that the total external public sector debt disbursement over the past twelve months (July 1, 2021 – June 30, 2022) was USD 1.087 billion, with approximately 73 percent going to central government projects from various creditors, the majority of which came from International Development Association that means the World Bank, and the remaining 27 percent going to SOEs primarily to Ethiopian Airlines.
In a similar development Safaricom and its partners in the Ethiopian venture will see their combined stake drop by up to 15.5 percent after the International Finance Corporation (IFC) the investment arm of the World Bank announced a plan to purchase $160 million worth of shares in the subsidiary.
Safaricom is the major shareholder in the Ethiopia venture with a stake of 55.7 percent and the entry of IFC as a shareholder could see its ownership drop to below the 50 percent mark, reducing its exposure in the populous nation.
Vodacom Group holds a 6.19 percent share of the business. Sumitomo Corporation and British International Investment (formerly CDC Group) control stakes of 27.2 percent and 10.9 percent respectively in Safaricom Telecommunication Ethiopia Plc (STE)which is the operating arm of the venture.
The partners together paid $850 million towards the license fee according to Business Daily Africa.
Local products to supersede over import
Ministry of Urban and Infrastructure Development develops legal framework
The Ministry of Urban and Infrastructure Development underscores that based on its mandate, it is working rigorously to prepare a legal framework to restrict import materials that can be produced locally.
As the Ministry tailored its 18.26 billion birr budget for the 2022/23 budget year, Chaltu Sani, Minister of Urban and Infrastructure Development stated, “The construction sector is in high challenging situations, especially with price hikes and project management and these have had a ripple effect on us.””
“In this new budget year, we are planning on new trends by reflecting on our last year’s performance,” said the Minister indicating that the ministry is focusing mainly on two issues, including properly facilitating project management and finding input materials.
“Based on our mandate through proclamation 1263/2021, we are preparing a legal framework to replace imported inputs that can locally be sourced in order to resolve the challenges related with input shortage,” said Chaltu, adding, “We are also working to support and strengthen the capacity of local producers.”
As experts opine, the prices of construction materials are heaping up from day to day. To this end, government has been taking a number of steps to improve the supply chain and increase the price of cement which is the main input for the construction sector.
Whilst speaking about the performance of the last budget year, the minister highlighted that rebuilding of the war affected areas were successful stories despite the interruption of construction due to certain reasons.
As she indicated, among the major projects the ministry had for the year, greenery projects were the main to spread in many cities of the country besides other old and usual construction projects.
On the flip side, the interruption of project completion, and unexpected time and cost overruns of housing and road construction projects, led to more than 768 federal government projects to be paused due to the price escalation of construction inputs during the previous ten months of the budget year.
Furthermore, the war in northern Ethiopia was cited as a critical reason for the interruption and delay of major federal road projects. Additionally, lack of clear directives for compensation and resettlement, price escalation, and absence of efficient contractors during the tender process to award project constructions, were mentioned as critical issues.
Construction delays more often than not occur due to the escalation in material prices, which contractors also underline as one of the major challenges they face in their projects.
Most of the stakeholders claim that there are few control measures taken by the government on the market, and they pin this as the main problem of the price spike.
The illegal increasing price of cement in the open market for the past several months has sparked challenges in the construction industry while cement producers on the other hand are tackling a long list of challenges including, unfavorable supply-demand balance, higher cement prices, escalating production costs, low utilization rates, social unrest, and a lack of foreign currency. With the new budget at hand, the Ministry is working towards providing a lasting solution for the development of the country, in all fronts.
Ethiopia hosts East African delegates for Bamboo Study Tour
East Africa is known for its abundant bamboo resources. Ethiopia, in particular, is regarded as a country with an advanced bamboo sector in the region, considering the current level of investment in manufacturing industries and policy focus on bamboo development. The approval of the National Bamboo Strategy and Action Plan by the government presents a favorable environment for individuals and companies to pursue technological advancement in bamboo value chain development to create a competitive market for bamboo products within the country and abroad.
The International Bamboo and Rattan Organization (INBAR) recently organized a Bamboo Study Tour and Policy Dialogue in Ethiopia for East African investors, policymakers, manufacturers, civil society leaders, and private sector entrepreneurs, from Kenya and Uganda. The study tour, held from Sept 04 – 06, 2022, was designed to provide an opportunity for participants to learn from Ethiopia’s experience and best practices in sustainable bamboo product design and development.
The tour created an opportunity for participants to be able to meet key actors of the Ethiopian bamboo sector from private enterprises, government agencies, and the public sector. It was packed with a variety of field visits, with highlights including visits to bamboo nursery development sites, furniture and handcraft cottage industries, factories, demonstration plots, and a bamboo planting ceremony. It created a platform for deliberations and extensive exchanges on value addition to bamboo products as well as making strategic decisions for the industrialization of the bamboo sector.
In his keynote speech, Kebede Yimam, the Director General of Ethiopian Forest Development, stated that the study tour provides a unique opportunity for participants to learn about Ethiopia’s sustainable bamboo management experience, innovations, and best practices in bamboo product development.
Amb. Robert Shetkintong, Indian ambassador to Ethiopia noted that South-South development cooperation among countries of the global South is essential for innovative forms of knowledge exchange and technology transfer using local and affordable development solutions. As such, the study tour among the participant countries is highly imperative to help enhance the bamboo sector development of the countries and transform the industry in the region.
The participants were brought to SMEs and factories where they visited the development process of different bamboo products. Adal Industrial Plc, one of the factories the delegates paid a visit to, produces high-quality bamboo products for the local and international markets. Adal is a pioneer industry to produce bamboo products and introduce its technologies to Ethiopia. Currently, the company has 180 employees and its products range from bamboo charcoal and toothpicks to bamboo flooring, pulp, and paper.
INBAR is an intergovernmental development organization that promotes sustainable development using bamboo and rattan. In addition to its Secretariat headquarters in China, INBAR has Regional Offices in Cameroon, Ecuador, Ethiopia, Ghana, and India. The East Africa Regional Office (EARO), based in Ethiopia, coordinates bamboo development initiatives in Burundi, Eritrea, Kenya, Madagascar, Malawi, Rwanda, Tanzania, and Uganda.
Bamboo, the fast-growing grass plant, is an important nature-based solution to several pressing global challenges, for poverty alleviation, green trade, climate change mitigation and adaptation, resilient construction, and environmental protection. INBAR’s mission is to improve the well-being of producers and users of bamboo within the context of a sustainable bamboo resource base, by consolidating, coordinating, and supporting strategic and adaptive research and development.
INBAR – EARO is currently implementing a triangular South-South development project dubbed Dutch-Sino Phase-II East Africa Bamboo Development Programme in Ethiopia, Kenya and Uganda.
The study tour was adjourned by a city tour in and around Addis Ababa, the capital of Ethiopia, and a closing dinner. Study tours like this are not only about knowledge sharing, exposure, and learning, but they can also pose an opportunity for business-to-business linkage and match-making among potential investors, entrepreneurs and industries in the bamboo sector development. As noted by Ndufa James Kamiri, the head of bamboo projects at Kenya Forestry Research Institute, the study tour was an excellent opportunity for deeper interactions, and exploration of investment opportunities by forging prospective partnerships with diverse actors, including manufacturers, bamboo house designers, and bamboo exporting companies.
