Ethiopian Business Review

A Town Blessed by Nature Facing Modern Challenges

Located 454km from Addis Ababa in the southern part of Ethiopia, Arba Minch is home to more than quarter a million people. The town is also a habitat for various aquatic and wild animals. Because of the good climatic condition, the area is also conducive for several varieties of fruits and vegetables.

Arbaminch’s natural endowment is a great factor for the growth of tourism in the town. This has contributed for a burgeoning hospitality industry which has grown by leaps and bounds in recent years. However, mainly because of human factors, these natural resources are at risk of perishing. EBR’s Kiya Ali, who visited the naturally endowed town recently, reports.

Tuesday, 16 July 2019 00:00
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Brews Inflation, Exacerbates Balance  of Payment Problem

The budget deficit for 2019/20 fiscal year stood at ETB97.1 billion, twice the amount registered two years ago. Despite the escalating figure, the government claims it is under control since it accounts for only three percent of the gross domestic product (GDP).

Nevertheless, experts stress that the deficit goes as high as 17Pct of the GDP when the money borrowed by public institutions is included in the equation. As the budget deficit grows, there is a fear money supply would rise, which will ultimately lead to a rise in inflation, which has already reached 15.4Pct. The consequence will further exacerbate balance of payment problem, which is already at alarming stage. EBR’s Ashenafi Endale spoke with officials and experts to shed light on the matter.

Tuesday, 16 July 2019 00:00
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The Likely Impact of Interest Free Banking on the Financial Sector

In 2010, there were few Islamic banks under establishment in Ethiopia. However, they failed to open their doors because the government prohibited the provision of full-fledged interest free banking in 2011. Until now, interest free banking services are provided by conventional banks at a single window level. However, things have started changing after Prime Minister Abiy Ahmed (PhD) gave a green light to the formation of the much awaited banks recently. Consequently, five Islamic banks are preparing to float shares, while few more are under establishment. Will the entrance of these new financial institutions change the banking industry?  EBR’s Ashenafi Endale & Kiya Ali report.

Tuesday, 16 July 2019 00:00
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