Ethiopian Business Review

Commercial banks in Ethiopia are currently finding themselves with more liquidity than they can work with. While this is a good moment for those who have been desperately looking for credit, it has pushed commercial banks to sit on resources that come with a high cost. As a result, many banks are being forced to find alternatives to invest their extra liquidity, including introducing mortgage schemes with various real estate companies. EBR’s Samson Berhane spoke to bankers, experts and businesses to shed light on the matter.

Saturday, 15 December 2018 00:00
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Fight Against Illegal Currency Trading 

Over the recent months, the government has undertaken several measures to wipe out the parallel exchange market. But none of the measures were effective in arresting the spread of black market transactions. The first step was spreading a false rumor that the government would adjust the exchange rate. In doing so, it managed to temporarily weaken the black market and narrow the gap between it, and the official exchange market to as low as five cents. This was short-lived though. Black market players, who saw that the government did not keep its word, started raising the exchange rates again. Frustrated by their actions, the government, in an unprecedented move, shut down businesses engaged in the informal exchange market. But that also didn’t work, as the gap between the parallel and official market widened by almost eight birr. EBR’s Samson Berhane investigates. 

Friday, 16 November 2018 18:00
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Gulf Nations Cast a Shadow Over the Horn of Africa

The Horn of Africa is one of the most unstable regions in the world. It has long been known for economic, political and humanitarian crises. However, these challenges have not repelled global and regional powers, chiefly because of the region’s strategic geopolitical importance for global security and international trade. This makes the region a battleground among global actors whose economic and security interests exceed their national boundaries. The United States, France, China, the United Arab Emirates, Turkey and Iran have already set up military bases in the region. Germany, Japan and India are also focusing on the area. More recently, with the security bloc formation, spearheaded by Saudi Arabia and Iran respectively, the region has further become a battle of religious, economic and security influences. In fact, the Horn countries have been highly influenced to side with either of the two blocs. Despite this influence, Ethiopia has remained neutral for many years. Recently, however, worries are mounting that Ethiopia will likely side with the bloc led by Saudi Arabia. However, the government claims that it is firm in its neutral position. EBR’s Samson Berhane investigates.

Monday, 15 October 2018 06:00
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