Category: Finance

Addis Ababa: The decision passed by the government to allow foreign investors to take part in economic sectors that were previously restricted only for Ethiopian citizens will have a multi-faceted positive impact on the economic development of the country, economists remarked.

The Ethiopian Investment Board has recently passed a directive that would allow foreign investors to participate in wholesale and retail trade in the country.

The economists who talked to ENA noted that the directive will reportedly provide more opportunity for legally viable competitive trade and would play a clear role in providing broader choices for consumers.

A senior economist, Constantinos Berhe remarked that allowing foreign investors to take part in wholesale and retail sale trade has greater value for economic development of the country.

Citing the experiences of several countries across the world, the economist added that foreign investors in the sector will bring in their work experience, capital expenditures which will
allow them to play a clear and positive role in the country’s economic development.

Companies who take part in foreign trade in Ethiopia will help to further expand foreign trade coverage and market network for the country and will enhance the nation’s capacity to compete in world trade.

Moreover, the directive is instrumental in increasing the quantity, quality and type of commodities that will be delivered at the international markets, Constantinos further added.

In addition, the directive will help to curb illicit foreign trade in live animals and will help to establish a standard framework to streamline foreign trade in the sector, he indicated.

Constantinos quoted a report from Global Financial Integrity which said the nation loses more than 1.5 billion USD due to illegal foreign trade transactions.

Allowing foreign companies to participate in wholesale and retail trade in the country will discourage illegal trade transactions and will pave the way for those illegal traders to join the formal and le
gal trade transactions, the senior economist further remarked.

He said those merchants who hoard commodities badly needed in the market and also those who demand higher prices for their goods as well as those who disrupt the normal market activity have been multiplying the grievances from consumers.

According to him, the participation of foreign investors in whole sale and retail trade will help to ensure stabilization of market prices and would play a positive role in promoting legal trade transactions across the country.

He added that the directive will help local merchants to be more competitive and thereby provide better choices for consumers.

Constantinos recommended that the government would need to carefully scrutinize the operational history of the investors, their current mode of operation and the values they would add to the national economy before issuing licenses for their formal operations.

Measures taken in introducing new financial policy which will provide for the formation of capital mar
ket and allowing foreign banks to operate in Ethiopia will help to expand the provision of financial resources for economic development.

Researcher of economics and instructor at Arsi University, Adem Fato said that inviting foreign investors to take part in whole and retail sale which was restricted only for Ethiopian nationals will have a multi-faceted positive impact on the economic development of the country.

He stated the decision made by the government will help to beef up foreign currency by promoting domestic and foreign trade which will in turn increase government revenue. Allowing the investors to take part in whole and retail trade will help to improve the quality of the commodities on market and would provide better choices for consumers.

Adem said that this would provide an ample opportunity for local traders to work in unison to engage in a meaningful competition in the market

The instructor further added that necessary guidelines that will promote competitiveness, the national economy and p
romotion of public benefits must be put in place as soon as the directives become operational.

The economists noted that economic measures taken by the government over the last 6 years in opening up the economy to the private sector have helped to promote sustainable economic development and competitiveness among the traders.

Source: Ethiopian News Agency

Addis Ababa: The decision passed by the government to allow foreign investors to take part in economic sectors that were previously restricted only for Ethiopian citizens will have a multi-faceted positive impact on the economic development of the country, economists remarked.

The Ethiopian Investment Board has recently passed a directive that would allow foreign investors to participate in wholesale and retail trade in the country.

The economists who talked to ENA noted that the directive will reportedly provide more opportunity for legally viable competitive trade and would play a clear role in providing broader choices for consumers.

A senior economist, Constantinos Berhe remarked that allowing foreign investors to take part in wholesale and retail sale trade has greater value for economic development of the country.

Citing the experiences of several countries across the world, the economist added that foreign investors in the sector will bring in their work experience, capital expenditures which will
allow them to play a clear and positive role in the country’s economic development.

Companies who take part in foreign trade in Ethiopia will help to further expand foreign trade coverage and market network for the country and will enhance the nation’s capacity to compete in world trade.

Moreover, the directive is instrumental in increasing the quantity, quality and type of commodities that will be delivered at the international markets, Constantinos further added.

In addition, the directive will help to curb illicit foreign trade in live animals and will help to establish a standard framework to streamline foreign trade in the sector, he indicated.

Constantinos quoted a report from Global Financial Integrity which said the nation loses more than 1.5 billion USD due to illegal foreign trade transactions.

Allowing foreign companies to participate in wholesale and retail trade in the country will discourage illegal trade transactions and will pave the way for those illegal traders to join the formal and le
gal trade transactions, the senior economist further remarked.

He said those merchants who hoard commodities badly needed in the market and also those who demand higher prices for their goods as well as those who disrupt the normal market activity have been multiplying the grievances from consumers.

According to him, the participation of foreign investors in whole sale and retail trade will help to ensure stabilization of market prices and would play a positive role in promoting legal trade transactions across the country.

He added that the directive will help local merchants to be more competitive and thereby provide better choices for consumers.

Constantinos recommended that the government would need to carefully scrutinize the operational history of the investors, their current mode of operation and the values they would add to the national economy before issuing licenses for their formal operations.

Measures taken in introducing new financial policy which will provide for the formation of capital mar
ket and allowing foreign banks to operate in Ethiopia will help to expand the provision of financial resources for economic development.

Researcher of economics and instructor at Arsi University, Adem Fato said that inviting foreign investors to take part in whole and retail sale which was restricted only for Ethiopian nationals will have a multi-faceted positive impact on the economic development of the country.

He stated the decision made by the government will help to beef up foreign currency by promoting domestic and foreign trade which will in turn increase government revenue. Allowing the investors to take part in whole and retail trade will help to improve the quality of the commodities on market and would provide better choices for consumers.

Adem said that this would provide an ample opportunity for local traders to work in unison to engage in a meaningful competition in the market

The instructor further added that necessary guidelines that will promote competitiveness, the national economy and p
romotion of public benefits must be put in place as soon as the directives become operational.

The economists noted that economic measures taken by the government over the last 6 years in opening up the economy to the private sector have helped to promote sustainable economic development and competitiveness among the traders.

Source: Ethiopian News Agency

Addis Ababa: A two-day conference aimed at leveraging digitalization to improve tax compliance and revenue mobilization has concluded in Addis Ababa today.

The international conference organized by Ministry of Revenues, in collaboration with the World Bank, has attracted many experts and stakeholders from emerging countries.

Briefing the media, Revenues Minister Aynalem Nigussie underscored the significance of digitalization in improving revenue collection by enhancing efficiency and minimizing cost.

Collecting revenue through digitalization also enables the tax administration to be fairer and transparent as compared with the manual system.

According to her, the Ministry of Revenues has been developing software to digitalize more the revenue collecting system.

At present, several platforms that enable tax payers to pay online have been established and those are contributing to enhancing the efficiency of collecting revenue.

World Bank Lead Governance Specialist in Ethiopia, Rajul Awasthi told ENA that t
he purpose of the conference is to improve the efficiency and effectiveness of tax administrations by implementing digitalization.

Noting that there haven challenges in Africa for many decades in the sector, he added that the World Bank is now helping countries to address the challenges through financing and technical assistance.

For him, digitalization is the best way to move forward in improving efficiency and effectiveness of tax administration and the World Bank is committed providing continuous assistance to realize digitalization.

According to Awasthi, the conference has created a platform for peer-to-peer learning between countries in the field.

Delegates mainly from African countries, including Nigeria, Zambia, Ethiopia, Kenya, Rwanda, Uganda, Tanzania, Malawi, Zimbabwe, South Sudan, and Somalia, as well as experts from other countries have participated in the conference, it was learned.

The World Bank lead governance specialist, who stated that the Bank has been involved in helping countries to
improve their tax systems, improve domestic revenue mobilization through financial and technical assistance, said the World Bank is working closely with ministries of Revenues and Finance to improve the capacity in the sector.

Source: Ethiopian News Agency

Addis Ababa: Executive Director of the Nile Basin Initiative (NBI) Secretariat, Florence Grace Adongo emphasized the need for stronger cooperation among the riparian states to ensure equitable utilization and sustainable management of the Nile water resources.

A national stakeholders meeting of the Nile Basin Initiative held in Addis Ababa today which aimed at raising visibility and awareness on the initiative and facilitating the tools for the implementation of its programs and projects.

Addressing the meeting, the executive director recalled that the NBI covers 10 percent of the African continent and is home to almost a quarter of the continents population.

The Nile Basin countries face key development challenges which are related to water security, energy security, food security and vulnerability to the environmental shocks that are rising from the negative impacts of climate change.

Stressing that no county can manage these challenges unilaterally, Adongo therefore, underlined that countries across th
e Nile Basin should come together to find a common solution for such common problems.

This move would have a paramount importance for equitable use of the Nile Basin’s shared water resources, according to her.

The executive director further stated that strengthening cooperation is essential to ensure equitable utilization, and sustainable management of the Nile River water resources.

Over 25 years, NBI served as the platform for dialogue, a catalyst for change, fostering regional integration, enhancing competitiveness and unlocking the Nile Basin’s immense potential for Africa and beyond, she pointed out.

Citing that Ethiopia has been at the forefront in supporting matters of cooperation, Adongo said we look forward for more cooperation and working together.

Recall Ethiopia is also one of the first countries that have endorsed the Cooperative Framework Agreement (CFA). She urged the remaining countries to ratify the agreement to transform the Nile Basin Initiative into a Nile Basin Commission.

Addressin
g the occasion, State Minister of Water and Energy Abraha Adugna also affirmed that the NBI has made significant achievements so far despite various challenges in the region.

NBI promoted basin-wide dialogue and stakeholder involvement on confidence building, providing strategic, technical and analytical framework, introducing best practice tools, and methodologies among others.

The state Minister reaffirmed the solid determination of the Ethiopian government to achieve NBI’s ambitions as Nile River is a transboundary water resource which crosses 11 riparian countries.

Nile Basin Initiative is a regional intergovernmental partnership launched by the Nile Basin countries on 22nd February, 1999 to manage and develop the shared Nile Basin water resources in a cooperative manner, share substantial socio-economic benefits and promote regional peace and security.

Source: Ethiopian News Agency

Addis Ababa: Bolstering collaboration among development partners and NGOs on water and energy accessibility is significant to prevent duplication of efforts in the sector, Minister of Water and Energy, Engineer Habtamu Itefa said.

A joint working group secretariat for the water and energy sector convened discussion today to assess the progress made and explore avenues for future cooperation.

Speaking at the occasion, Engineer Habtamu stated that we are here to share our experiences and discuss on how to enhance future actions strategically.

Over the past three years, we have achieved significant milestones in water supply, water resource management, and energy accessibility, he noted.

For this, the minister expressed gratitude to development partners for their support in this regard, acknowledging the efforts made towards modernization, ensuring water sustainability, and automation for effective planning.

According to him, the government is committed to further enhancing its collaboration with developmen
t partners and NGOs to ensure drinking water and energy needs of the citizens.

“I believe it’s time for strategic collaboration to prevent resource duplication and streamline activities. Today, our focus is to reflect on our collective experiences, assess progress, and chart a path forward,” he stated.

Achieving such goals requires a strategic approach and collaborative planning, he said, adding that ideally, regular evaluations on a quarterly or even more frequent basis, will allow us to identify both our shortcomings and our areas of efficiency.

Unless we strive to optimize our resources for specific purposes that address our needs, our efforts may yield minimal results or fail to meet our demands entirely, he said.

Water Aid Country Director, Yaekob Metena, emphasized the necessity of collaborative efforts between the government and development partners to improve Ethiopia’s utilization of resources in the water and energy sector.

He highlighted the importance of ongoing consultations among developmen
t partners engaged in the sector, enabling institutions to share experiences and foster a culture of information exchange.

Additionally, he noted that partner organizations will collaborate closely with the ministry to achieve the sector’s development objectives.

Country Director for IRC WASH, Lemessa Mekonta on his part stressed the importance of ensuring accessibility of clean water and energy to citizens through fostering collaboration among partner organizations.

Substantial resources are needed to translate efforts in the water and energy sector into tangible outcomes, he said, adding, to this effect, concerted efforts from the government or development partners are also sought.

Source: Ethiopian News Agency

Addis Ababa: Ethiopia has reiterated commitment to BRICS vision and to discharge its responsibilities for promoting meaningful and productive partnership for inclusive and sustainable development.

State Minister of Foreign Affairs, Mesganu Arga is participating in the 2nd BRICS Sherpas/ Sous -Sherpas meeting on partner country model in Moscow.

Mesganu posted on X: ‘I reiterated Ethiopia’s commitment to BRICS vision and discharge our responsibilities to promote meaningful and productive partnership for inclusive and sustainable development.’

Source: Ethiopian News Agency