News: Economic turmoil, instability curtail Ethiopia’s FDI inflows: Ernst & Young report
Ethiopia garnered six foreign investment initiatives in 2022, with Safaricom Ethiopia being a notable contributor Photo: Reuters)Addis Abeba – Amid global economic shifts and domestic instability, Ethiopia is contending with a marked decrease in foreign direct investment (FDI), as detailed in a new report by Ernst & Young. Tanzania saw significant growth in foreign investment, reaching pre-pandemic levels with 21 projects worth $1.3 billion, creating 4,566 jobs. The report from Ernst & Young points to balance of payments issues and the risk of sovereign default amid rising inflation as challenges for Ethiopia. However, the report underscores that such economic challenges could overshadow the investment climate, deterring foreign investment and complicating economic management. In addition to inflation, Ethiopia faces pressures due to currency depreciation.
Source:Ethiopian News
December 26, 2023 11:15 UTC
OPINION: Subdued Xmas As Consequences Of Wars In Eastern Europe And The Middle East
Focusing first on the war in Eastern Europe, the immediate negative effect of the Russia-Ukraine war is the shortage of grain supply to the world from Ukraine, as farming has been impossible. Evidential of the scenario above is a recent report by the Council of the EU and the European Council that has concluded that:“Due to the war, Ukraine, a leading grain exporter, has seen a dramatic drop in its exports. Enough has been written and discussed about the war in Eastern Europe. According to the ICC report below, Africa and particularly Nigeria are more susceptible to collateral damage from the Israel-Gaza war. This subdued atmosphere of Xmas necessitates the creation of a new vocabulary to aptly capture the socio-economic challenges faced by my compatriots.
Source:Ethiopian News
December 26, 2023 09:40 UTC
Ethiopia joins Ghana and Zambia as it defaults on its $1 billion bond
Ethiopia joined Ghana and Zambia as Africa’s latest defaulter after it failed to make interest payment of $33 million on its $1 billion bond following the expiration of a grace period on Monday. The nation, located in the Horn of Africa, was obligated to pay a $33 million coupon on Dec. 11. Ethiopia had previously reached an agreement with bilateral creditors last month to suspend debt payments. However, the face value is set to remain at $1 billion, ensuring that creditors will not be required to accept a so-called haircut on their holdings. The report further stated that around 60% of low-income countries are either at risk of debt distress or likely already experiencing debt distress.
Source:Ethiopian News
December 26, 2023 09:27 UTC
Ethiopia Declares Sovereign Default, Echoing Financial Strain Across Africa
Ethiopia Declares Sovereign Default, Echoing Financial Strain Across AfricaEthiopia, the second most populous nation in Africa, has officially declared a sovereign default, marking the continent’s third such event in as many years. This move follows the nation’s failure to fulfil a $33 million coupon payment on its single international government bond. This financial challenge has been exacerbated by the aftermath of the COVID-19 pandemic and a two-year civil conflict that concluded in November 2022. An Anticipated DefaultThe Ethiopian government had previously indicated its intent to declare a default due to the country’s severe financial strain. With Ethiopia now joining Zambia and Ghana in a major restructuring under the Common Framework, this situation sheds light on the economic challenges faced by African nations.
Source:Ethiopian News
December 26, 2023 09:08 UTC
Black Business: Souk Bohemian
In all that Souk Bō’hēmian does, their goal is to introduce new and different cultures to the community. They partner with local and global artisans to bring aspirational ready-to-wear pieces, home goods, small-batch jewelry, and handmade accessories to curate every aspect of life. Wander in our minimal palettes and global aesthetics, as you would a bazaar in North Africa or your favorite local market. Their unique, artisan-made candle holder is a great conversation piece for any tabletop. Visit the website to shop and subscribe to the newsletter.
Source:Ethiopian News
December 26, 2023 08:40 UTC
Ethiopia Joins Zambia, Ghana In Africa’s Debt Default Club
Ethiopia has joined Zambia and Ghana as Africa’s latest debt defaulters after failing to make an interest payment to its external creditors following the end of the grace period on December 25, 2023. The development underscores the challenges faced by African countries in servicing external debt. Ethiopia has been grappling with material decline in external liquidity, significant external financing gaps, and the government’s participation in the G20 Common Framework (CF) debt relief initiative. About half of Ethiopia’s debt is external debt. According to IMF data, Ethiopia’s external debt as a percentage of its GDP is 23%, lower than Kenya’s 31.2%.
Source:Ethiopian News
December 26, 2023 07:54 UTC
Ethiopia becomes Africa's latest sovereign default
LONDON (Reuters) - Ethiopia became Africa's third default in as many years on Tuesday after it failed to make a $33 million "coupon" payment on its only international government bond. Africa's second most populous country announced earlier this month that it intended to formally go into default, having been under severe financial strain in the wake of the COVID-19 pandemic and a two-year civil war that ended in November 2022. It had been supposed to make the payment on Dec. 11, but technically had up until Tuesday to provide the money due to a 14-day 'grace period' clause written into the $1 billion bond. Credit ratings agency S&P Global then downgraded the bond, to "Default" on Dec. 15 on the assumption that the coupon payment would not be made. (Reporting by Rachel Savage and Karin Strohecker, Additional Reporting by Dawit Endeshaw in Addis Ababa, Editing by Marc Jones and Aurora Ellis)
Source:Ethiopian News
December 26, 2023 06:41 UTC
Many flee their homes after attacks kill 100s in central Nigeria
At least 160 people were killed in attacks by armed groups between Saturday evening and Monday in several villages in Plateau State, central Nigeria, local authorities announced on Monday. On Sunday, Plateau State Governor Caleb Mutfwang described the armed action as "barbaric, brutal and unjustified". "Proactive measures will be taken by the government to curb the ongoing attacks on innocent citizens", said Gyang Bere, the governor's spokesman. The NGO Amnesty International reacted to the violence on its X account, judging that "the Nigerian authorities have consistently failed in their attempts to put an end to these frequent attacks in Plateau State". The populations of north-western and central Nigeria live in terror of attacks by jihadist groups and criminal gangs who pillage villages and kill or kidnap their inhabitants.
Source:Ethiopian News
December 26, 2023 06:33 UTC
Ethiopia and Djibouti: A Dynamic Diplomatic Dance
Ethiopia and Djibouti: A Dynamic Diplomatic DanceMarking a significant milestone in the business and diplomatic relations between Djibouti and Ethiopia, the Djibouti Chamber of Commerce recently welcomed a delegation from the Somali region of Ethiopia. This strategic interaction was aimed at bolstering trade exchanges, unearthing new business opportunities, and fostering mutually advantageous partnerships. Strengthening Bilateral RelationsIn what appears to be a calculated move to enhance bilateral relations, the President of Djibouti’s Parliament made a working visit to Ethiopia. Religion and GovernanceFurther demonstrating Ethiopia’s commitment to strengthening its internal frameworks, the Ethiopian Catholic Church (ECC) made a significant announcement. The ECC unveiled its strategic blueprint for the next decade, labeled the ECC Ten-Year Plan (ECC-TYP).
Source:Ethiopian News
December 25, 2023 22:00 UTC
The Battle Against Corneal Blindness in Ethiopia: Challenges and Victories
The Battle Against Corneal Blindness in Ethiopia: Challenges and VictoriesIn Ethiopia, the battle against corneal blindness is a formidable challenge, affecting an estimated hundreds of thousands. The Ongoing Challenge: Demand Outweighs SupplyHowever, the demand for corneal transplants far outpaces the supply. This imbalance is magnified by a severe shortage of corneal transplant ophthalmologists, with only 11 professionals serving the entire country. Support on the Ground: Ethiopian National Cornea Transplant Recipients and Volunteers AssociationIn response, the Ethiopian National Cornea Transplant Recipients and Volunteers Association, formed by transplant recipients, provides holistic support to those affected by corneal blindness. Although the journey ahead is steep, the strides made by the Eye Bank of Ethiopia provide a beacon of hope for those grappling with corneal blindness.
Source:Ethiopian News
December 25, 2023 19:56 UTC
Ethiopia Joins Ranks of Defaulting Nations: A Test of Financial Stability and Debt Management
Ethiopia Joins Ranks of Defaulting Nations: A Test of Financial Stability and Debt ManagementMarking a distressing turn of events, Ethiopia has joined the ranks of defaulting nations in Africa, after falling short of fulfilling a scheduled interest payment post the termination of a grace period on Monday. An Emerging DefaulterEthiopia is following in the footsteps of Ghana and Zambia, defaulting on interest payments within a short span. The government has already reached an agreement with bilateral creditors for the suspension of debt payments. Ethiopia’s debt to GDP ratio stands at 46.37, lower than Kenya’s 67.94, and significantly lower than that of most advanced countries. Approximately half of Ethiopia’s debt is external debt, pushing the nation to the verge of default due to liquidity constraints and high debt repayments relative to its economic capabilities.
Source:Ethiopian News
December 25, 2023 19:18 UTC
Ethiopia Fails to Pay Coupon, Becoming Latest African Defaulter
The CircuitHosted by high-profile journalist Emily Chang, The Circuit is a fast-paced, dynamic series that lives at the intersection of culture, tech, entertainment, and business. Every week, Chang will go on location to meet the world’s most fascinating founders, influencers, and innovators, conducting intimate interviews and bringing audiences behind the scenes of the most impactful stories, launches, and trends
Source:Ethiopian News
December 25, 2023 15:39 UTC
IATA Confirms British Airways, Ethiopian Airlines, Other Foreign Airlines Could Leave Nigeria Soon
The IATA said that trapped funds in Nigeria have become a major problem for foreign airlinesThis followed a report that British Airways, Ethiopian Airlines, and others might leave Nigeria soon. The International Air Transport Association has highlighted that international airlines faced challenges over trapped ticket revenues in Nigeria and other countries. It stated that if the situation is not quickly resolved, it could lead to foreign airlines exiting the country. This comes after a report that British Airways, Ethiopian Airlines, Turkish Airlines, and others might leave Nigeria soon. FG explains why foreign airlines abandon Nigeria, says the country is worst debtor to airlinesLegit.ng reported that the federal government has explained why some airlines prefer neighbouring countries to Nigeria.
Source:Ethiopian News
December 25, 2023 15:01 UTC
News: Teachers in Hadiya Zone endure arrests, intimidation as wage fight intensifies
The source further claimed that those who seek their overdue wages face the risk of imprisonment and threats from security personnel. The issue of delayed salary payments is particularly severe in the rural areas of the Hadiya zone, especially in the East and West Badwacho districts. According to him, frequent arrests have been reported among teachers who publicly address the issue in East Badwacho. The EHRC has documented cases of intimidation, including threats, assaults, and imprisonment, directed at those protesting the lack of payment. Despite these financial hurdles, the administration of Hadiya Zone has been striving to fill the budgetary gaps with loans, ensuring salary payments for eight of the 19 districts, according to the EHRC.
Source:Ethiopian News
December 25, 2023 13:33 UTC