Category: Finance

Realizing the “Ethiopia Tamrit” (Let Ethiopia Produce) Movement is crucial to catalyze the nation’s manufacturing industry by resolving the critical problem of coordination in the sector, Manufacturing Industry Development Institute Director-General (MIDI) Milkessa Jagema said.

The movement, which is part of the 10-year development plan for the industry sector, is intended to address the challenges that producers at all levels face during manufacturing and increase the sector’s contribution to the GDP.

In an exclusive interview with ENA, Institute Director-General Milkessa noted that manufacturing is one of the priority sectors with huge potential that the government wants to exploit.

Citing the market problem at the industrial parks, he stated that some of the products manufactured in the parks are being sold locally due to lack of access to markets abroad while diplomatic activities have been underway to get destinations for the goods.

The other problem of the manufacturing industry is lack of coordination and many stakeholders are working on this to solve the problem

Noting that integration and coordination are critical to the industry, Milkessa said that the Ethiopia Tamrit movement is designed to solve such critical problems.

Apart from increasing export revenues, the movement aims to help manufacturers meet the increasing local demand by substituting imports and reducing production costs.

Furthermore a draft import substitution strategy is being developed to determine the types of products we produce for the local market, how to produce it, and the incentives for import substitution, the director-general added.

“Not only do we need promote export but also quality import substitutes to satisfy the demand of our society.”

There is lack of strategy in this area, he stressed, adding that the draft strategy identify which kind of product should be produced as import substitute and the incentive mechanism attached to it as well as financial issues, among others.

Source: Ethiopian News Agency

Commercial Bank of Ethiopia(CBE) and Golden Coffee Roastery have launched Cash Go money transfer app, enabling the Ethiopian diaspora to use easy and efficient money transfer.

President of Commercial Bank of Ethiopia, Abie Sano and CEO & Owner of Golden Coffee Roastery, Teodros Sheferaw signed the agreement on Friday.

The agreement allows Ethiopian diaspora who live, among others, in Canada, Israel, the USA, South Africa and the United Arab Emirates to use Cash go application that enables direct bank account settlement to the bank accounts of their relatives and friends in Ethiopia without the need to pass through swift.

Abie Sano briefed journalists that the app will significantly make money transfer by the Ethiopian diaspora easy and efficient.

By using their Visa and Mastercard, the diaspora community can easily send money to Ethiopia directly to their friends and relatives bank accounts, he added.

Abie further said that as the mobile app allows the diaspora to transfer from 5 to 1,000 USD in a single transfer.

The Cash Go app is proven to be simple, secure and efficient, Abie said, adding customers in Ethiopia can receive the money sent through the app immediately at any of CBE’s 1850 branches.

CBE is providing convenient and efficient services to its customers using digital applications, he said, noting that the bank has transacted over 2.1 trillion Birr over the last nine months of the current fiscal year.

Speaking on his part, Golden Coffee Roastery ,CEO & Owner, Teodros Sheferaw, said the mobile application is locally developed by Ethiopians.

He further stated that the app is capable of serving customers in many local languages.

Such digital foreign exchange transfer helps to alleviate the bank’s foreign exchange shortages, he noted.

Source: Ethiopian News Agency

Mrs Tokunbo Chiedu, the Chief Executive Officer, Compass Global, says women entrepreneurs need to maximise their profitability and competitiveness to unlock the $22 billion opportunity in the African Continental Free Trade Agreement (AfCFTA).

Chiedu said this in a statement on Friday in Lagos.

She said that a central consideration for empowering women entrepreneurs was to leverage the AfCFTA to improve regional integration frameworks from a gender perspective.

Chiedu noted that the United Nations emphasised the importance of identifying opportunities for women entrepreneurs within the context of the AfCFTA.

“Finding ways of integrating gender concerns into value chain development projects and programmes could yield positive outcomes and also help to position women in international trade.

“African governments need to establish infrastructural connectivity as a priority.

“Addressing existing logistical challenges, as well as working toward a common currency that will ease trading across regions is essential,” she said.

Chiedu said that Compass Global recently held a West Meets East Trade Mission and Business Development Tour, as part of the Global Female Leaders, and Entrepreneurs Conference (FLEC), in Kenya.

FLEC is a convergence that initiates conversations with female leaders, around gender development and the pivotal role gender balance, and diversity has to play in Africa’s transformation agenda.

She said that the programme was held with the support of the ECOWAS Commission and AfreximBank.

“The goal of the West Meets East meeting is to instigate a coalition for regional business linkage, and partnerships toward improving intra Africa trade, and against the backdrop of the AfCFTA.

“This endeavour, therefore, connected Counterparts from West to players across East Africa via a series of private sector led engagements.

“It also created a platform to explore and develop opportunities and foster partnerships between players across the regions toward unlocking the $22 billion Intra- Africa Trade opportunity,” she said.

Chiedu commended the support from all strategic partners; especially with regards to the mobilisation of key associations, women business networks and Small Medium Enterprises (SMEs) across both West and East Africa to be part of the engagements.

She said that 40 West Africa delegates were mobilised to include Presidents of Women Business Networks and Associations and SMEs from across key sectors of agribusiness, manufacturing and services.

Chiedu said the delegates were from Nigeria, Sierra Leone, The Gambia, Benin Republic, Liberia, Cape Verde and Cameroun.

She added that 50 exhibitors made up of businesses or SMEs of West and East Africa showcased at the exhibition.

Some of the participants from Nigeria’s Organised Private Sector in attendance were: Deputy National Coordinator- Association of Nigeria Women Business Network, Otunba Gbemisola Oduntan, President Commonwealth Women’s Business Council Africa, Mrs Ngozi Oyewole, and President Akoko Chamber of Commerce Industry Mines & Agriculture, Dr Funmilola Williams Daudu. (NAN)(www.nannews.ng)

Source: News Agency of Nigeria

Asiwaju Project Beyond 2023, one of the foremost support groups that worked for the election of Sen. Bola Tinubu, the President-elect, on Wednesday fed no fewer than 3000 Internally Displaced Persons (IDPs) in Abuja.

The News Agency of Nigeria (NAN) reports that the gesture was part of gestures to mark the 71st birthday anniversary of the president-elect by his supporters and well-wishers across the country.

The event which took place at the Dagba IDP Camp in Area 1, Garki Abuja, was attended by leadership of the support group and politicians who broke their Ramadan fasting and a cut birthday cake with the IDPs including women, children and youths.

The Director-General of the group, Mr Realwan Okpanachi, said the gesture was in line with the generous and humble nature which Tinubu is known for.

He said that the choice of the IDP camp was another demonstration of the low-key birthday celebration as directed by Tinubu who is currently outside the country.

“The significance of this event is Tinubu’s love for the downtrodden. For the less privileged and the challenged in the society. That’s why we are here to celebrate with these people.

“If you listened to his directive, he said his birthday should be celebrated with the downtrodden. That’s why we’re here.

“We’re also here to tell them that the very reason why they’re here is the same reason why Tinubu is coming as President of the Rederal republic of Nigeria to tackle the problem of insecurity which has led them to this place in the first place, abandoning their homes, farming and businesses to seek refuge in this place.

“By the coming of Tinubu to office, he will provide security, education for their children and ensure that each and everyone here is rehabilitated and returned to their original homes to start life afresh as it used to be.

“So, there are no better people to celebrate Tinubu’s birthday with than this vulnerable group who he cares about passionately,” he said.

Okpanachi added that as representatives of the President-elect, they had given the IDPs a message of hope that he will make live liveable and bearable for them in particular and all Nigerians as a whole.

He disclosed that the initial projection of feeding the IDPs was put at 2000, but with the large turnout witnessed additional 1000 packages which had to be made so that they could have a memorable breaking of Ramadan.

Amina Musa, a mother of five and one of the beneficiaries who spoke in Hausa Language thanked the group and said the foods, drinks and fruits collected by her household would help them in breaking the fasting.

“We thank Baba Tinubu for this gesture to me and my family. The things I collected here today will help us to break our fasting. We wish him happy birthday too”.

Speaking on behalf of the IDPs, Idris Alilu, expressed appreciation for the kind gesture from Tinubu to have remembered them at this Ramadan season.

Alilu used the opportunity to pray for good health and divine wisdom for the president-elect to pilot the affairs of the nation commencing from May 29 Presidential Inauguration Day.

NAN reports that prayers were also offered for the unity and peace of the country following the aftermath of the 2023 general elections.(NAN)

Source: News Agency of Nigeria

Debt Management Office (DMO) and African Centre for Leadership, Strategy and Development (Centre LSD) have tasked the incoming government on revenue generation to tackle Nigeria’s debt deficit.

The stakeholders made the call on Wednesday, in Abuja at a one-Day Leadership and Development Policy Dialogue Series (LDPDS) with the theme “Nigerian Debt Sustainability Threat: Issues, implications, Lessons and Solutions for the Next Administration”.

Director, Portfolio Management Department of the DMO, Mr Dele Afolabi, said that Nigeria had to be deliberate with revenue generation to harness a balanced economy because currently, the revenue did not match the high debt servicing burden of the country.

According to Afolabi, this is imperative since revenue pays debt because the more revenue you have ,the less you have to borrow going forward .

He said although Nigeria had the highest Gross Domestic Product(GDP) in Africa but its government generated revenue to GDP ratio is lower than that of most African countries and this can be tackled through taxes among others.

“The people are not paying the right taxes ,we don’t have the right culture of taxation and revenue for government. So, I think ,looking at the next government ,the key focus should be on how to grow government revenue.

“Most people really don’t pay taxes ,apart from people that receive salaries in the formal sector a lot of people are either not paying tax at all or not paying as they should ;so there a lot of leakages in terms of government revenue.

“If we have the highest GDP in Africa, then we should also have the highest revenue but that is not the situation.’’

Afolabi, therefore, recommended that government should reduce its over dependence on crude oil and harness other resources and solid minerals and block all leakages and grow revenue to reduce accumulating debt.

He also called for stringent action against tax defaulters adding that in other climes ,evading tax payment was criminal and people go to jail for it.

The Executive Director of Centre LSD, Mr Monday Osasah, said that the dialogue was imperative following the Federal Government outcry that Nigeria’s debt sustainability had become threatened following the recent rise in its revenue shortfalls.

Osasah said that according to the Minister of Finance, Nigeria is expected to spend 60 per cent of its total revenue on debt servicing in 2023 and this portended a grave threat to the economy.

“According to Nigerian Bureau of Statistics (NBS) in its Nigerian domestic and foreign debt Q3 2022.

“Nigeria’s debt stock which includes external and domestic debt rose from N42.84trillion or 103.31 billion dollars in the second quarter of the 2022 to N44.06 trillion or 101.91 billion dollars in the third quarter same year.

“The debt figure comprised the debt stock of the Federal Government, the 36 states and FCT.

“The burgeoning trend of our debt is worrisome especially when it is now being used for debt servicing rather than for growing and developing our infrastructure .’’

Osasah said that Nigeria’s debt service-to-revenue ratio is put at 83 per cent of quarter 3,2022 and the ratio had been on the rise as Nigeria faced a dwindling government revenue while government expenditures have increased.

He said that considering the grim reality, the need for begin to think and commence advocacy for budgetary reforms, fiscal prudence and revenue innovation for the next government was paramount.

He said without these, it would difficult for the incoming administration to rescue the country from the weakening debt sustainability trend.

Prof. Isah Mohammed ,a Professor of Transport and Financial Economics ,Department of Economics ,University of Abuja, a key speaker at the event, said public debt was a crucial tool for government to finance public spending .

Mohammed said that this was, especially when it is challenging to increase taxes and cut spending and the procedure has resulted in government having enormous unpaid debts overtime.

“Another way to accelerate economic growth is contracting reasonable debt to pay for infrastructure and public projects

“In order to encourage long-term development ,the government should also ensure that borrowing is done on conditions that are consistent with entrenching debt sustainability and that borrowed funds are wisely invested in the economy’s value added sectors.’’

Mohammed said that Nigeria should accomplish this to resolve its debt problems, improve its credit standing and achieve sustainable growth.

He also called for effective tax administration to tackle revenue challenges and the need to ensure compliance to remittances devoid of all form of evasion in the system.(NAN)(www.nannews.ng)

Source: News Agency of Nigeria

A study by Deloitte says Nigeria’s economy will expand by $19 billion in productivity if the country eliminates Neglected Tropical Diseases (NTDs) by 2030.

The study, commissioned by the END Fund, was released in a statement by Ms Oyetola Oduyemi, its Senior Director for Public Affairs, on Tuesday in Lagos.

The END Fund is a private philanthropic initiative dedicated to ending the most common NTDs.

Neglected tropical diseases are a group of parasitic and bacterial diseases that are widespread among economically disadvantaged groups.

The diseases are often chronic and cause severe symptoms that significantly hinder the ability of an individual to live an independent life.

The study focused primarily on the five most common NTDs in Nigeria, namely, lymphatic filariasis; onchocerciasis (river blindness); schistosomiasis (snail fever); soil-transmitted helminths (STH, intestinal worms) and trachoma.

Oduyemi said the report’s objective was to fully present key economic and social benefits of eliminating the five most prevalent NTDs in Nigeria by 2030.

She said it also included long-term financial returns and a cost-benefit assessment of elimination programmes.

According to her, the study shows that in Africa, the share of the population suffering from NTDs is negatively related to wealth.

“It shows that as countries develop their economies, they become better at handling NTDs through investment,” she said.

She added that the elimination of NTDs was correlated with good educational outcomes.

“The Report is designed to galvanise a concerted effort by the public, private and philanthropic sectors of the country and sub-region to elevate the NTDs in public health systems.

“They should also increase the domestic resource envelope for NTDs and influence policy making that will effectuate these objectives in working to achieve the indicated potential benefits of achieving the WHO NTD Roadmap 2030 on disease control and elimination.”

Oduyemi said that the gains of eliminating the NTDs would extend beyond 2030, as individuals who were cured or avoided infection live more productive and fulfilling lives.

She listed the additional economic benefits as avoided out-of-pocket expenses, enhanced productivity of caregivers and increased school attendance of pupils. (NAN)(www.nannews.ng)

Source: News Agency of Nigeria