Category: Business

Addis Ababa: Addis Ababa will host the first African Cities Sustainability Forum in the upcoming September 2024.

The forum will be held under the theme ‘Sustainable Urbanization Planning for Africa’s Transformation – Agenda 2063,’ it was indicated.

As part of Ethiopia’s preparation to host the forum, Deputy Prime Minister Temesgen Tiruneh held an awareness raising forum today with the African Urban Forum National Coordinating Committee.

Addis Ababa is gearing up to host the African Cities Sustainability Forum anticipated to bring about more than 1,500 participants, the deputy PM shared on a social media page.

Temesgen also stated in his message that Ethiopia, as a historic country and a founding member of the United Nations and the Organization of African Unity, is prepared to fulfill its African responsibility by organizing this forum of African brothers.

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: Ethiopia has been intensifying diplomacy to connect the nation’s economy with the global market, according to Ministry of Foreign Affairs.

In an exclusive interview with ENA, Foreign Affairs State Minister Mesganu Arga said that Ethiopia has embarked on rigorous economic reforms aimed at opening up and connecting it with the global economy.

‘As part of the Homegrown Economic Reform Program, Ethiopia is now liberalizing and connecting our economy with the global economy.’

The Ethiopian Investment Board has recently issued a new directive outlining that foreign investors can engage in specific trade investments and in the previously reserved businesses including export, import, wholesale and retail trade investments.

According to the state minister, these economic reforms and initiatives have a paramount importance to opening up the economy and linking it with regional markets such as the African Continental Free Trade Area (AfCFTA.)

He added that Ethiopia is also gearing up to be part of the
World Trade Organization (WTO). The process being expedited is imperative to Ethiopia in order to access global trade opportunities.

The Ethiopian government has been currently implementing a new economic reform blueprint, dubbed Homegrown Economic Reform, with a major aspiration to unlock the country’s development potentials.

Following the reform program, Mesganu noted that promoting economic opportunities and investment potential has become at the heart of Ethiopia’s diplomacy.

‘We have realized that investment promotion and confidence building for global economic activities are pretty much imperative to our diplomacy. In this regard, attracting foreign direct investment and connecting our economy with the global market are important steps carried out.’

To realize these economic endeavors, trade and investment promotion activities have been conducted by foreign missions, consulates and diplomats, it was learned.

Looking for additional markets globally, attracting more investments, as well as promoting
domestic tourism potentials are at the epicenter of the economic diplomacy.

The state minster pointed out that Ethiopia’s foreign policy is anchored on strengthening partnership with neighboring countries, and the policy essentially prioritizes economic integration to achieve joint regional development.

Further elaborating on the country’s economy, Mesganu said that it has shown significant resilience amidst global challenges.

‘Our GDP has redoubled and our economy has registered a fast growing record. Thus, this has been encouraging us to reinforce the economic foreign policy missions in the region and beyond. We are really working hard as a country to bring about development and achieve growth internally and also sharing achievement to the neighboring countries.’

Moreover, he reaffirmed the commitment of Ethiopia to connecting with its neighboring nations in terms of infrastructure as well as sharing its development ambition and integration agenda through road and railway.

For the state minister, those
agendas are quite important and they are the main focus for our foreign policy since the economic dividend is for mutual benefits.

For the economic ambition of the country to come to fruition, Mesganu underlined that Ethiopia always seeks jointly and collaboratively working with the global community and with the neighboring countries.

In this respect, he explained that Ethiopia is committed to the securitization, joint development, and economic integration of the region.

‘So our agenda is peace, economic development, integration, trade promotion and large infrastructure connectivity between the neighboring countries,’ the state minister stressed.

Furthermore, Mesganu called on the neighboring countries to genuinely understand Ethiopia’s quest for access to sea.

‘Our right to have seaport access is based on rational ground,’ he noted, adding that there will also be opportunities for neighboring countries in the expanding economic activity and the large economy of Ethiopia.

Source: Ethiopian News Agency

Addis Ababa: The attention given to startups will create opportunity to put innovations into practice, startupers told ENA.

Recall that Ethiopia has recently set its eyes on becoming a beacon of opportunity in the global startup landscape.

Startuppers who talked to the Ethiopian News Agency stated that the attention given to the sector will create opportunity to put innovations into practice.

Among the startuppers, Fitsum Sileshi the backend developer for ‘Adot, explained that the focus on startups is instrumental in securing financial support to initiate work by facilitating the introduction of creative projects.

This attention will enable startups to fulfill their role in supporting efforts to create job opportunities for citizens and contribute to economic growth.

According to her, Adot company aims to support mothers throughout their pregnancy journey and beyond by providing content, informative support, and access to doctors.

Fitsum emphasized the pressing issue of preventable or manageable disease
s leading to maternal mortality, stating that their mobile application seeks to address this by providing vital information to mothers in need.

The platform is a very cultural sensitive and also locally relatable product, according to the startupper, who added that this means mothers can understand what ‘we are giving them as article and also as content.’

‘We are targeting mothers who speak Amharic and also have access to smartphones. But soon we will be able to have more access to mothers speaking other languages and living in rural areas.’

The other startupper, Bereket Addis, has developed a technology called ‘Asbeza’ that includes e-commerce and logistics to easily provide an online grocery delivery service.

He highlighted the favorable conditions for startup growth in the country, adding that the government’s focus on startups, through the formulation of supportive policies and provision of other assistance, is fostering favorable conditions.

By fostering entrepreneurial environment and supporting st
artups, countries like Ethiopia can unlock a potent engine for sustainable development and prosperity, he noted.

According to Negede Yisak, an expert at Ministry of Innovation and Technology, the emerging trend of startups has been capitalizing on the favorable environment fostered in the country.

A recent announcement of a business plan competition attracted approximately 300 startups, with 20 of them advancing to the final round.

From this, 10 startups will be selected to receive support, including access to an incubation center, tailored training, and mentorship within their respective fields.

Source: Ethiopian News Agency

Key stakeholders in decentralisation have a collective responsibility to ensure that all the people of this country are provided with the quality and quantity of public goods and services.

This is according to Urban and Rural Development Minister, Erastus Uutoni, who said that it is of vital that stakeholders continue to harmonise and strengthen multi-levelled coordination mechanisms between the central and subnational organs of the government.

‘It is a commonly accepted fact that proper coordination removes duplication of efforts and wastage of resources on the one hand, whereas, on the other hand, it promotes efficiency in resource utilisation and synergies across and between sectors.

This position is so much in harmony with the general principle of shared responsibility, and complementarity as well as cooperation between different levels of government as stipulated in the African Charter on the Values and Principles of Decentralisation, Local Governance and Local Development, Uutoni noted.

The minister
made these remarks on Tuesday at the 2024 Annual Consultative Decentralisation Forum taking place in Swakopmund.

The meeting is taking place under the theme ‘Towards the full implementation of the Decentralisation Policy in Namibia’ and provides an opportunity for the Ministry of Urban and Rural Development (MURD), Regional Councils, Line Ministries and other partner government institutions, as key role players in the implementation of the Decentralisation Policy, to reflect and assess the progress made thus far.

The forum is also a platform to share best practices and ideas, discuss challenges that are being encountered and most importantly, to collectively formulate strategies and remedial measures to overcome any such challenges going forward.

As a demonstration of government’s resolve to ensure that the decentralisation policy is effective, MURD commissioned a study through an independent consultancy to assess the national status of the implementation of the policy as per the Harambee Prosperity Plan I
I.

This is expected to be completed during the third quarter of this financial year 2024/25.

Adopted in 1997, the Decentralisation Policy provides the basis and a framework for the Government to devolve functions, responsibilities, powers and resources to the lower levels of Government namely regional and local governments.

The meeting ends on Thursday.

Source: The Namibia Press Agency

OPUWO: The Namibia Investment Promotion and Development Board (NIPDB) engaged the business community and traditional leaders in the Kunene region on the region’s investment and business demographics intending to promote the region’s economic development.

The meeting held on Monday at Opuwo under the theme ‘Unlocking Investment Opportunities for Inclusive Growth,’ was aimed at specifically addressing the various challenges faced by businesses and investors, as well as working to remove the barriers impeding Namibia’s economic development, such as stakeholder collaboration to deliver quantifiable economic outcomes.

During the engagement, NIPDB’s Chairperson and Chief Executive Officer (CEO), Nangula Uaandja, challenged the region to explore and capitalise on existing and new business and investment prospects in the region, thus contributing to government growth through increased local exports.

‘We should increase our local exports and exchange them in foreign currencies to support the government’s growth, an
d Kunene should also discover local capabilities that will help Namibia develop.

We need more Namibian companies and we exist to create investment opportunities by building trust. We need to help Namibia’s government achieve Vision 2023 so that the country can grow through exports,’ she said.

Looking at Kunene’s business prospects that extend to the Atlantic Ocean, Uaandja advised the region to leverage the Kunene coast with the burgeoning Green Hydrogen project, and the diverse raw minerals that will assist transform energy.

She also called for collaborative engagement among all stakeholders to discover investment opportunities rather than relying on the government, as this will encourage regional development.

Furthermore, Uaandja encouraged traditional authorities to negotiate land transactions in good faith with potential investors, emphasising that these arrangements should benefit communities rather than individuals.

Kunene Governor, Marius Sheya, while echoing Uaandja’s statement, appealed for fair
opportunities for all and a collaborative approach to business growth to improve the Kunene region through value chains.

According to Sheya, Kunene has immense economic potential; but, infighting among traditional leaders is hampering progress.

‘Let us put an end to these internal conflicts and grow the region as a whole. Let us work together, for the common goal of the region,’ Sheya stated.

Source: The Namibia Press Agency