Ethiopia’s external debt amount reduced by two percentages in the first quarter of the 2021/22 fiscal year compared with the amount recorded at the end of June 2021. The debt disbursed by external sources in the first quarter is very low compared with the past five years.
The public sector Debt statistical bulletin published by Debt Management Directorate at Ministry of Finance indicated that because of less disbursement combined with higher principal payment the external debt stock has shrunk by USD 466.9 million to USD 29.05 billion as of September 30, 2021.
The external debt amount on June 30, 2021 was USD 29.52 billion.
“There is a decline in external debt stock as a result of less disbursement combined with higher principal payment than disbursement and also a relatively stronger USD which resulted in declining external debt stock,” the quarterly debt evaluation document explains, adding, “one of the reason for this decline in the stock of debt can be explained by USD exchange rate variation which is about USD 152.5 million, a relatively higher appreciation of the dollar, particularly as compared to the Special Drawing Rights (SDR) and euro.”
The total external public sector debt service (principal plus interest and charges) during the last three months that started on July 1 was USD 607.51 million, of which 452.12 was principal and interest accounted USD 155.38 million.
Out of the total public sector external debt service, USD 142.54 million is made by central government while the remaining USD 464.94 million was made by state owned enterprises (SOEs).
From the total resettlement of SOEs, USD 293.2 million was made by enterprises who secured the loan with government guarantee.
The bulletin indicated that the entire external public debt disbursement over the last three months (July 1, 2021 to September 30, 2021) was USD 137.74 million, with around 95 percent of it going to central government projects from various creditors, the majority of which came from International Development Association (IDA). “When compared to the preceding five years, the total amount of disbursement from external sources was much lower,” it said.
It added that the net external debt resource flows are negative by close to USD 470 million over the period, i.e. during the quarter, implying that the quantity of disbursement from external sources or inflow is less than the total external debt service payments to creditors or outflow.
The debt disbursement for the 12 months in the past fiscal year was USD 1.4 billion, which is also lower compared with the 2019/20 that was USD 3.32 billion.
As of September 30, 2021 the central government owes 67 percent of the total external debt that increased by one percent compared with June, while SOEs with and without government guarantees owe the remaining 33 percent that was 34 percent at the end of the past fiscal year.
The total public sector debt stock that includes the domestic debt as of September 30, 2021, was USD 56.65 billion, compared to USD 55.62 billion as of June 30, 2021.
The total nominal public sector debt for the GDP was about 52 percent, while the share of nominal external debt stood at 26.6 percent that is 51.3 percent of the total debt.
The central government owes 60 percent of the total public sector debt outstanding.
The bulletin reminded that over the last year, the central government’s portion of total public debt stock has climbed by 5 percent, while SOEs’ share has declined by 0.1 percent, “this can be explained in part by SOE’s zero non-concessional borrowing limit from external creditors, as well as SOE’s lower borrowing from domestic sources and less disbursement from already committed old SOE external loans.”
The bulletin stated that during the period, net issuance of treasury bills (Tbills) with different maturity was about 40.25 billion birr and the participation of government and private owned commercial banks on the Tbills market shows an improvement. Its share for the GDP has also expanded to 3.21 percent from 2.54 percent at the end of the last fiscal year.
It added that the net issuance of direct advance for the period is 30 billion birr and is to reach 113.5 billion birr in total.
The amount of accessing money from direct advance has been shrunk as per the policy adopted by the government to replace it by the finance secured through Tbills, while starting from the recent past it has forced it to look back to fill the deficit that occurred suddenly for different reasons including the reduction of the inflow and unexpected costs.
Due to the increment of direct advance it has led to the expansion of the share of GDP from 1.76 percent as of June 30, 2021 to 2.26 percent on September 30.
Ethiopia’s external debt constricts in first Q
ELITES IN TROUBLE
Global elites, who have been the real beneficiaries of the prevailing modern world system, are in the throes of losing it; big time and all over! In other words, the formally established global order that disproportionately benefitted the upper strata/elites of societies, and we mean all formally organized societies, i.e., all countries without exception, has entered a more advanced phase of collapse! By elites we don’t only mean the top honchos/echelons of a given society. Here is our lazy definition: elites are human creatures that tend to run things in a given society, by virtue of their wealth, knowledge or power. Whether such features/attributes are acquired naturally, legally or morally, is beside the point. Moreover and by and large, elites are endowed with certain psychological dispositions that are not always in tune with the interests of the general sheeple. Number wise, they are and have always been very few, compared to the larger population. Hence and democratically speaking, the regime of the ‘elites’ is a non-democratic order; and it is this order that is now on trial, globally!
No wonder this privileged fellowship, which we can comfortably call ‘elitism’, is now scared out of its wits! Billionaire were heard toying around with the idea of buying unpopulated enclaves to escape to; from uncontrollable global situations! One cannot blame them; what else do they know besides buying and selling? To this .01% of the elite grouping, life/society (with all its complexities) is not a precarious happenstance (fruit of the cosmos) that needs to be preserved by all means. Whatever brings superficial/temporal benefit (profit, etc.) to their mortal selfish selves is what they consider sacrosanct. To these dimwits, everything else is dispensable, be it human life or otherwise! When it comes to understanding nature, particularly human lives, their cognitive capacity is significantly underdeveloped, to say the least!
The sheeple’s better articulators initiated a worldwide movement of movements, with the objective of continuously deliberating on pressing real human/natural problems (not superficial and demented ones of the psychopathic elites) in the city of Porto Alegre, Brazil. Since its formation in 2001, the World Social Forum (WSF) has been trying to eschew hierarchy and elitism, while attempting to institutionalize democratic egalitarianism and diversity, both within its ranks as well as the larger global human community! In other words, WSF is trying to make the above values scale invariant!
Be that as it may, the impending collapse of the world system, which has become quite palpable recently, has not yet managed to change the minds of the reigning global elites. They still think their incompetent institutions, backed by a bankrupt and dangerous ideology will save the day. We beg to differ! As the articulators of the ‘world system analysis’ have been insisting all along, the modern world system has now entered, rather decisively, its final bifurcating phase and the ultimate outcome of the whole looming chaos is hard to discern.
Nonetheless, there are clear tendencies by incumbent contenders. On one hand, the dominant entrenched interests are trying to tighten the screw on the global beast. On the other hand, the beast’s increasing rampage has started to storm existing institutions, and render their worst operating dogmas inoperative. The European beast (in a more determined manner) is showing clear signs that it is no more willing to follow the elites and their ways to oblivion. It is increasingly finding the elite’s inherent craze about wars (destruction of human lives and the natural world) particularly abhorrent! Something has to give. As we stated above, what actually would give, is something we cannot foretell a priori!
The African reigning entrenched interests, whose privileges were mostly acquired via political ploy, are increasingly feeling the heat/rumblings of their own angry beasts. In some of these places, the earth has shaken under the elite’s soft fat feet.
In Africa, the loss of faith in the system has been transposed and personified as mere perpetual misrule of reining politicians. Again we beg to differ, but we will not elaborate on that today!
Like their compatriots in the OECD (rich world), the African honchos don’t seem to get either. They still think (it seems) they can run the whole circus, (bread & entertainment) ad infinitum, without facing consequences! We have been warning our dear leaders to step up to the real demands of their people (justice, equity, democracy, etc.) and not get carried away with all kinds of stupidities that have not even worked in the world of the rich.
Zafu, Tsegaye receive lifetime achievement award
The Association of Ethiopian Insurers (AEI) gives recognition of a lifetime achievement award to the prominent insurance gurus Zafu Eyesuswork and Tsegaye Kemsi for their contribution to the growth of the Ethiopian insurance industry.
The Association, consisting of 18 insurance companies and two reinsurers, held its closing ceremony of the 21st Annual General Meeting at the Inter luxury Hotel on December 16, 2021 with the recognition of Zafu Eyesuswork and Tsegaye, who have made significant contributions by dedicating their life to the growth of the insurance industry in Ethiopia.
The Insurance Industry award was presented by Yared Molla, President of AEI and Nyala Insurance, to Zafu Eyesuswork, who has contributed over 58 years to the insurance industry, and Tsegaye, who has served the industry for over 46 years.
The insurance association has announced that it will have a similar acknowledgement program every year for those who will be recognized for their role to the industry growth.
Purpose black avails attractive franchise scheme
Purpose black Eth trading share company- a dynamic business established to offer an economic solution with an end-to-end product-to-consumer has come up with an additional unique franchise concept called “Qeleb Kegeberew Franchise.” Purpose black introduced the scheme on Saturday December 17, 2021 in a ceremony held at Alem cinema.
“The model is based on PBETH’s original Franchisee Shareholder Model (FSM) which is a special shareholding product offered by PBETH to potential individuals and/or business investors. The distinct FSM program provides an excellent opportunity for investors to invest in PBETH and receive maximum return as compared to the ordinary shareholding model,” said Fiseha Eshetu, /MD/ founder of the platform adding, “Through the regular shareholder model investors receive only dividends distributed annually as per the decision of the general assembly, whereas, in the PBETH’s Franchise Shareholder Model (FSM) investors receive additional regular income from the net profit of each franchise they invest through a 50% profit sharing arrangement from the net profit of the franchises they purchased. The FSM model is the first of its kind in the world which was launched to attract more investors by offering them huge benefits when they choose the FSM.”
Purpose black is a new initiative launched in May 2020 through the collaborative effort of more than 130 black expertise, Purpose Black was founded with a goal of helping black farmers to produce globally competitive products and get fair prices for their products, and has also aims of reducing youth unemployment, promoting diaspora investment, selling products at a fair price and stabilizing the consumer market by promotion of export and increase of foreign currency earnings. Furthermore, it is keen on facilitating agricultural technology transfer. Its initiative is to be a multibillion birr endeavor encompassing the construction of mega agro processing complex, and e-commerce marketplace, five hypermarkets, ten big supermarkets, a chain of more than 1000 retail and distribution stores all over Ethiopia.
The company has started selling its 100 million shares worth of 10 billion birr with each share costing 100 birr with the minimum share one can buy being 10 shares worth 1000 birr. It is also requirement to pay only 25 percent of the payment which is 250 birr for the minimum purchase and the rest can be paid in 2 years’ time interval. This of course is made in a way that makes the system accessible for all. So far the company has 1,498,663 shares which have been taken with a pledge of 149,855,804 in birr.
The company is selling shares through the 17 banks, financial institutions and telebirr which is also is one of the options alongside CBE birr and other digital wallets. Those who are abroad can get the share through a credit card from Abyssinia bank and commercial bank of Ethiopia. Similarly, depositing in swift accounts or money transfer platforms using the commercial bank are ways of purchasing the shares. For those who do not have bank access, they can get the share in Ethiopian embassies.
The first target is to mobilize capital and to this end, the platform is planning to raise about ten billion birr in capital through three ways; selling share locally, mobilizing the diaspora, and through propose black Africa which is targets to collect ten billion dollars to distribute all over the continent of which Ethiopia will benefit through the same.
For the new Franchise Shareholder Model (FSM) the founder explained that there are three that purpose black has provided. For instance, shares for farm land which is 100,000 birr per hectare, for two types of its retailer stores 2 million birr for type one retailer store and 3 million birr for type two retailer stores. The third which is in agro processing will go for 100,000 birr per share or $2000 for the diaspora.
The MD said that Purpose black has started its process to obtain 1000 hectares of farm land in Arbaminch town top this regard.
