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Marathon Motor Engineering Plc, an assembler of Korean-owned Hyundai car, has announced that it will begin assembling electric cars in the coming three months. Preparations are underway to complete the first phase importation of the cars that will be fully assembled by the company. While the vehicles can be recharged with electricity available at home, they don’t require using lubricants and oil, which potentially help the country save foreign currencies spent to import such items.

 The electric cars are also expected to be affordable and they will not be more than 10Pct higher than the price of a regular vehicle with 1600 CC, the company said. An excise tax of five percent is going to be levied on electric cars, making it cheaper compared to old cars that face as much as 500Pct tax, according to the new draft proclamation that is now being reviewed by the Ministry of Finance.

Source: - https://ethiopianbusinessreview.net/archives/6025

PepsiCo joins Veris Investments as a major Shareholder of Senselet Food Processing Plc (SUN Chips)

PepsiCo has joined Veris Investments, a growing and influential investment company, as a major shareholder in Crisps Company, Senselet Food Processing Plc. (Senselet), in Ethiopia.

While Veris Investments is to remain a minority shareholder, PepsiCo, one of the leading producers of food and beverages in the world, is to be a majority shareholder in the business. Senselet was founded by Veris Investments in 2015 and is also the producer of SUN Chips, one of the locally made products which has multi-flavors including Habesha Spice, Paprika and Natural chips from its factory located on the outskirts of Addis Ababa and employees 150 people.

“PepsiCo shares our commitment to work with small and medium scale Ethiopian farmers as well as developing the potato value chain and sustainable farming in Ethiopia. Having PepsiCo as a partner will enable Senselet to leverage their extensive global expertise on potato cultivation, manufacturing and go-to-market capabilities as to further grow the company,” said Juliette de Wijkerslooth, managing director of Veris Investments. From its inception, Veris has partnered with the Government of Holland through the Netherlands Enterprise Agency, the Ethiopian Institute of Agriculture Research and the Wageningen University and Research, to sustain and expand its operations.

“We are excited for this new chapter for Senselet as we believe PepsiCo’s expertise will help accelerate the growth of Senselet in Ethiopia by boosting the company’s potato sourcing programs, as well as its manufacturing and go-to-market capabilities,” said Ferhiwot Bitew, Senselet’s Management team, adding, “In line with Senselet’s ongoing practice of strongly collaborating with smallholder farmers, Pepsico also has the commitment to build a more sustainable future together. As such, we are happy that by joining forces, Senselet will continue to develop further in the potato value chain in Ethiopia sharing knowledge; technology and best practices with local farmers to enable them increase their yield.”

Last year, Veris – an IMPACT investor – teamed up with Dutch owned FrieslandCampina to invest in the operations of Holland Dairy Ethiopia, as it expands into dairy production such as milk and yogurt. Within Ethiopia, Holland Dairy has established itself to work towards in the areas of food security and works with local farmers with the production of its raw materials.

Source: - https://addisbiz.com/business-news/1663-1663/

The external debt of Ethiopia, which is in high risk, has shown a quarter billion dollar decrement for the first time in the last couple of years. The budget year first quarter ‘Public Sector Debt Statistical Bulletin’ published by Debt Management Directorate, Ministry of Finance (MoF), stated the external public debt of the country has declined to USD 26.778 billion.

The report published indicates that the external debt under government guaranteed and non-government guarantee have shown decrement compared with the figure sated at the end of the last budget year. Meanwhile the central government debts type shows minimal increment.

The report indicated that the total external debt at the end of 2018/19 budget year has been USD 27.029 billion but that is reduced to USD 26.778 million as of September 30, 2019, which is the end of the first quarter of the 2019/20 budget year.

Due to that the total debt has reduced by more than USD 251 million.

The bulletin indicated that the government guaranteed external debt that is mainly secured for public enterprises and sometimes called mega projects at the first quarter of the budget year that has stood at USD 7.169 billion from USD 7.285 billion in June 2019 that was USD 116 million higher than the latest figure. At the same time nongovernmental guaranteed debt has dropped to USD 3.671 billion by the reduction of USD 141 million from USD 3.812 billion at the end of the past budget year.

In the stated three months USD 395.6 million total principal was repaid and a total interest and commission of USD 152.7 million.

In the whole year of last budget year the country has paid USD 1.403 billion total principal.

Haji Ibsa, Public Relation Head of MoF, said that since the last budget year the government has fully stopped commercial loans.

Even though the country highly reduced commercial loans and only focuses on concessional loans for the past few years, some of the loan agreements that have been signed in the past will be disbursed in the period that the country stopped non concessional loans, according to the sector experts.

Haji also told Capital that meanwhile the country cut the non-concessional loans based on the deals, the finances have been dispersed in different phases. “Due to that the external debt burden of the country was not reduced even in last budget year, a period that the country fully halts using commercial loans,” he explained. “But now the effect is seen,” he added.

Different international organization and partners indicated that Ethiopia’s debt burden remains at high risk which is 60 percent of the gross domestic product. Half of this rate is the external debt mainly that the government received. In the past few years the government debt has been increased significantly every year. For instance the country external debt in 2015/16 budget year was stood at USD 21.3 billion that expanded to more than USD 27 billion in the 2018/19 budget year. However the past couple of year’s decision has contributed to slow the growing trend and that this year becomes reduced. Haji forecasts the half year figure of the budget year that will be realized in the near future would be reduced more.

Source: - https://www.capitalethiopia.com/featured/ethiopias-external-debt-drops/

The sole telecom provider in Ethiopia, Ethio Telecom, on Wednesday disclosed that its revenue has increased by a whopping 32 percent. In a press conference held in her office CEO Frehiwot Tamiru revealed that the company earned revenue of 22.04 billion birr in the first six months of the budget year. Frehiwot said the company for the first time in its 126 year history achieved 104 percent of its targeted revenue, adding that the increase was by a whopping 32 percent compared to the same period last budget year.

The state monopoly generated USD 73 million from international business services, up by 116 percent from the same period last year. The company paid 3.89 billion birr in tax and 2 billion birr dividend to the government. The company has serviced a loan amounting to USD 148.15 million in the stated period. Mobile voice accounted for 50.4 percent of the total revenue, where data and internet accounted for 27.3 percent, revenue from international business 9.8 percent, value-added service 8.5 percent and the remaining 3 percent was generated from other sources.

Ethio Telecom’s customers have reached 45.6 million in the budget in question. Meanwhile, mobile voice subscribers have also increased to 44.03, data and internet to 22.74 million and fixed-line services 1.01 million. The overall Tele density has increased to 45.4 percent.   

Source: - https://www.thereporterethiopia.com/article/ethio-telecoms-revenue-surges-32-percent

 

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