The Customs Commission has issued an urgent directive for the importation of goods purchased by Franco Valuta, emphasizing that these items must be imported within one month. This announcement follows a recent decision by the Ministry of Finance (MoF) to halt the importation of basic consumer goods by Franco Valuta, which was previously allowed to facilitate access to essential products in the market.
In a letter dated November 27, 2024, the Customs Commission instructed all branch offices to expedite the importation process for goods purchased by Franco Valuta. This decision comes in light of the government’s efforts to ensure a steady supply of basic consumer goods amidst ongoing economic challenges.
Franco Valuta was initially permitted to engage in the importation of basic consumer goods without the burden of foreign currency fees, a move intended to alleviate product shortages in Ethiopia. Ahmed Shide, Minister of Finance, had previously acknowledged that Franco Valuta played a role in importing essential commodities to help avoid shortages. However, concerns arose regarding its exposure to the black market, which reportedly increased pressure on foreign exchange resources and undermined its intended purpose.
“The decision to import basic consumer goods by Franco Valuta has been completely halted,” Minister Shide stated. He emphasized that any ongoing imports should be completed within two weeks, reflecting a shift in government strategy aimed at stabilizing the economy.
The Customs Commission has outlined specific guidelines for importers who registered their purchase documents with Franco Valuta before November 7, 2024. These importers are required to complete their transactions by December 27, 2024. The government’s comprehensive macroeconomic reform policy has been identified as a key factor in the rise of Franco Valuta, which aimed to narrow the gap between standard and parallel foreign exchange rates.
According to the Ministry of Finance, all basic consumer goods imported from abroad must now go through commercial banks using trust documents. This new requirement is part of an effort to streamline imports and ensure that banks can adequately manage foreign exchange reserves for commodities.
Franco Valuta’s license allows it to import goods without incurring foreign currency fees; however, this arrangement has raised concerns about transparency and compliance with government regulations. The government’s decision reflects a broader commitment to reforming Ethiopia’s economic landscape and enhancing the efficiency of its import processes.
For the first time in its history, Ethiopia is poised to open its banking sector to foreign competition, with new legislation currently under parliamentary review and expected to be enacted next month. This landmark decision represents a significant shift in the country’s economic landscape, aimed at enhancing competition, improving service delivery, and attracting foreign investment.
The move comes as part of a broader series of macroeconomic reforms initiated by the Ethiopian government and the National Bank of Ethiopia (NBE). These reforms are designed to modernize the financial sector and create a more conducive environment for both local and international businesses. Mamo Mihretu, Governor of the NBE, has emphasized the importance of these changes in fostering a competitive banking environment that can better serve Ethiopia’s growing economy.
The introduction of foreign banks into Ethiopia’s financial landscape is expected to bring about increased competition, which could lead to improved services and products for consumers. The legislation aims to dismantle barriers that have historically restricted foreign entities from participating in the Ethiopian banking sector. By allowing foreign banks to operate alongside local institutions, the government hopes to leverage international expertise and capital, which can enhance financial inclusion and innovation.
Governor Mamo highlighted that the reforms are essential for making Ethiopia’s economy more competitive on a global scale. “The interest and participation of the private sector in Ethiopia’s economy, particularly that of foreign businesses, is absolutely critical for growth,” he stated during a recent networking event hosted by the European Chamber in Ethiopia (EuroCham).
One of the primary objectives of opening the banking sector is to improve financial inclusion across Ethiopia. Currently, the formal banking sector serves fewer than 300,000 borrowers, indicating a significant gap in access to financial services for the majority of the population. By inviting foreign banks into the market, the government aims to expand access to credit and investment opportunities for individuals and businesses alike.
The anticipated entry of foreign banks is expected to stimulate innovation within the sector. With new players entering the market, there will likely be an increase in digital banking solutions and fintech services that cater to underserved populations. This aligns with global trends where technology plays a crucial role in enhancing financial accessibility.
Ethiopia has faced numerous economic challenges over recent years, including high inflation rates and currency fluctuations. The introduction of foreign competition is seen as a strategic move to stabilize these issues by diversifying financial offerings and increasing liquidity within the banking system.
As part of this transition, the NBE has implemented measures to strengthen its regulatory framework. The central bank is committed to ensuring that while the sector opens up, it remains regulated in a manner that protects consumers and promotes healthy competition among all banks operating within Ethiopia.
The legislation currently under review is expected to outline specific provisions for foreign banks operating in Ethiopia. These provisions will detail how foreign entities can establish branches or partnerships with local banks, as well as guidelines for compliance with Ethiopian banking regulations.
Officials have indicated that this legislative framework will include mechanisms for addressing potential challenges arising from increased competition. For instance, it will establish clear guidelines on how foreign banks can engage with local markets while ensuring that local banks are not adversely affected.
The response from stakeholders within Ethiopia’s business community has been largely positive. Many view this development as an opportunity for growth and improvement in service delivery across the banking sector. Business leaders have expressed optimism that increased competition will lead to better interest rates, enhanced customer service, and more diverse financial products.
However, some concerns have been raised regarding how local banks will adapt to this new competitive landscape. There are apprehensions about potential market disruptions and whether local institutions can effectively compete with larger international banks equipped with more resources.
As Ethiopia prepares for this significant shift in its banking sector, it is clear that careful planning and execution will be essential. The government must ensure that adequate support systems are in place for local banks while fostering an environment conducive to foreign investment.
In conclusion, the opening of Ethiopia’s banking sector to foreign competition marks a pivotal moment in the country’s economic evolution. With legislation set for enactment next month, stakeholders are keenly watching how these changes will unfold and what impact they will have on Ethiopia’s financial landscape. As the nation embraces this new era, it holds great potential for enhancing economic growth and improving access to financial services for all Ethiopians.
Emirates has officially unveiled its first Airbus A350-900 aircraft during a special showcase event in Dubai, marking a significant milestone for the airline. The event was led by Sir Tim Clark, President of Emirates Airline, and attended by VIP guests, government officials, and aerospace partners, including Abdulla Bin Touq Al Marri, UAE Minister of Economy.
Guests at the unveiling had the opportunity to explore the aircraft’s interiors, which feature next-generation products and state-of-the-art technologies aimed at enhancing passenger comfort and operational efficiency. The Emirates A350 is designed to accommodate 312 passengers across three spacious cabin classes: 32 next-generation Business Class lie-flat seats, 21 Premium Economy seats, and 259 Economy Class seats.
Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive of Emirates Airline & Group, expressed his enthusiasm for the new aircraft. “Today is an exciting milestone for Emirates as we showcase our first A350 and usher in a new era for our fleet and network growth,” he stated. “This aircraft sets the stage for Emirates to spread its wings farther by offering added range, efficiency, and flexibility to our network.”
The introduction of the A350 aligns with Emirates’ broader strategy to support Dubai’s D33 Strategy, aimed at transforming the city into a pivotal hub in the global economy. The airline plans to acquire a total of 65 A350s in the coming years, enhancing its capabilities to meet customer demand in new markets.
Philippe Mhun, Executive Vice President of Programmes & Services at Airbus, highlighted the long-standing partnership between Emirates and Airbus. “We are proud to further expand our strategic partnership with Emirates,” he said. “Marking a new chapter for Airbus, we expect the A350 to become an integral member of the Emirates fleet and support its continued growth and sustainability ambitions.”
Omar Ali Adib, Senior Vice President for Rolls-Royce in the Middle East and Africa, emphasized the collaborative efforts among Emirates, Airbus, and Rolls-Royce. “This partnership exemplifies what can be achieved when we share a commitment to excellence,” he noted.
In addition to its newly delivered A350 aircraft, Emirates operates a diverse fleet that includes Boeing 777s and the iconic Airbus A380. The introduction of the A350 will enable Emirates to expand into new destinations globally, including mid-sized airports that are unsuitable for larger aircraft.
The airline has announced that its first scheduled commercial flight with the A350 will take place on January 3, 2025, to Edinburgh. Following this inaugural flight, customers can expect to see the A350 servicing existing routes in the Gulf Cooperation Council (GCC) region as well as new destinations in Europe and West Asia.
The unveiling of Emirates’ first Airbus A350-900 marks a significant step forward for the airline as it continues to enhance its fleet and expand its global reach. With advanced technology and improved passenger experiences at the forefront of this new aircraft’s design, Emirates is poised to meet growing customer demand while reinforcing its position as a leader in the aviation industry.
As Emirates prepares for this exciting new chapter, travelers can look forward to experiencing enhanced comfort and service aboard its latest addition to the fleet.
For the first time, the Civil Society Organizations Authority (CSOA) has publicly addressed the recent ban imposed on three organizations in Ethiopia, including the Center for Advancement of Rights and Democracy (CARD), Lawyers for Human Rights (LHR), and the Association for Human Rights in Ethiopia (AHRE). The announcement was made during a press release on November 28, 2024, coinciding with the celebration of Civil Society Organizations Week, which is being held for the fourth time.
In its statement, a representative from the CSOA explained that the organizations were banned due to violations of their mandates and actions deemed politically biased. “They have acted in a manner that is not politically neutral and have exceeded their mandate, carrying out activities harmful to the interests of the country and its people,” the officials said. The official indicated that a final decision regarding the bans would be made shortly.
The restrictions on these organizations were implemented following allegations of misconduct.
The CSOA’s decision to impose bans is grounded in Article 77 (4) of the Civil Society Proclamation No. M3/201, which allows for immediate sanctions against organizations that violate regulations. Letters detailing the bans were issued to the affected organizations, which have since responded by disputing the claims made against them.
In their statements, CARD, LHR, and AHRE asserted that the reasons given for their suspension were unfounded and did not adhere to legal procedures. They called for transparency and adherence to due process in such matters.
Fassikaw Molla, Deputy Director General of Civil Society Organizations, emphasized that warnings are not always necessary for violations. “We don’t have to give them a warning; the law allows us to act directly,” he stated. He further clarified that while minor offenses might warrant a warning, serious violations could lead to immediate action.
The CSOA has stated that monitoring efforts will intensify as part of their commitment to ensuring compliance within the sector. Fassikaw mentioned that investigations are ongoing regarding the three banned organizations and promised comprehensive information would be provided in due course.
Ahmed Hussein, Vice President of the Council of Ethiopian Civil Society Organizations (ECSOC), revealed that discussions have taken place between ECSOC leaders and representatives from the CSOA regarding these suspensions. He noted that efforts are ongoing to address concerns raised by civil society groups.
Amnesty International has also weighed in on the issue, condemning the bans as an escalation of civil society suppression. In a statement released on November 26, 2024, Amnesty described the allegations against these organizations as “blatant and unsubstantiated,” urging the federal government to reverse its decision promptly. The organization emphasized that such actions violate individuals’ rights to freedom of association and expression.
Despite these challenges, the Civil Society Organizations Authority is set to collaborate with ECSOC to host the fourth Ethiopian Civil Society Organizations Week from December 6 to 8, 2024, at Gion Hotel. The event aims to promote civil society contributions to economic and social services while strengthening cooperation between the private sector and civil society organizations.
