News & Events

Ethiopia GDP surpasses $100 billion says PM Abiy

The Gross Domestic Product (GDP) of Ethiopia has increased last year to 3.375 surpassing $100 Billion for the first time, said Prime Minister Abiy Ahmed. ““…Last year for the first time our GDP of Ethiopia has surpassed $100 billion,” said, recalling that the total GDP of the country the year earlier was 2.7 trillion Birr. He made the remark this morning in the capital Addis Ababa presenting to members of parliament a report on last year economic performance and current affairs.

The GDP growth of the economy last year he indicated that the country has registered 6.1 percent economic growth. Industry has registered has registered 9 percent growth and service sector has registered 9.3 percent, while mining sector has registered 91 percent growth.

Financial sector grows

 The Premier also stated that the financial sector of Ethiopia has shown 10.2 percent growth last year. Out of the total 271 billion Birr loan provided by the banks, the majority of the money was disbursed to the private sector, according to PM Abiy.

31 chartered flight carrying the new currency. When the government launched replacing the old currency with the new ones, most of the new currency notes were already imported by 30 chartered flights, according to Prime Minister Abiy Ahmed. He noted that some 100 billion Birr new currency notes are distributed to over 6,000 bank branches found in the country, while 37 billion Birr is deposited by people who opened new bank accounts.

Agriculture growth

Last year concluded July 7, 2020, Ethiopia has registered 4.3 percent agriculture growth, according to Prime Minister Abiy Ahmed. He indicated that the growth in the sector is registered by the stimulus allocated by the government. He stated that last year the Government has allocated 25 billion Birr stimulus for the growth of agriculture sector. He indicated that the budget this fiscal year has increased to 33.4 billion Birr.“…There are promising conditions for the growth of agriculture sector with challenges,” he said, indicating that the growth of the sector with government stimulus will help the country to reduce unemployment, boost performances of other sectors and reduce the impacts of inflation of the majority of the people of Ethiopia. He also stated that the current invasion of desert locust worm has posed threat to farms as it has already damaged tens of thousands of hectares of crops. Prime Minister Abiy indicated that if the country managed to contain the spread of the locust worm, the country will be able to produce 35 million quintals more crops than last year’s harvest.

Source https://newbusinessethiopia.com/economy/ethiopia-gdp-surpasses-100-billion-says-pm-abiy/

Ethiopia's economy grew 6.1% in 2019/20 fiscal year - PM

 "For eight months we registered a healthy economic growth but after that, then coronavirus came and for the remaining four months we faced challenges," Abiy told lawmakers. Ethiopia has 89,137 confirmed COVID-19 cases, with 1,352 deaths and 42,649 recoveries, according to its health ministry data.

Ethiopia's economy grew 6.1% in the 2019/20 fiscal year to July, less than originally projected because of the impact of the coronavirus pandemic, Prime Minister Abiy Ahmed said on Monday.

In June, the finance ministry had said the economy had been projected to grow 9% for 12 months ending on July 7. "For eight months we registered a healthy economic growth but after that, then coronavirus came and for the remaining four months we faced challenges," Abiy told lawmakers.

Ethiopia has 89,137 confirmed COVID-19 cases, with 1,352 deaths and 42,649 recoveries, according to its health ministry data. It closed schools and universities in March and put curbs on public gatherings. However it allowed international passenger flights open on condition that arriving passengers would either quarantine or produce a negative COVID-19 test certificate no more than five days old. It also did not impose any movement restrictions within its borders. Abiy said inflation had "become very challenging", despite slowing between July and September.

Source https://www.devdiscourse.com/article/business/1266309-moneycontrol-pro-partners-with-financial-times-enhances-its-global-financial-and-business-offerings-for-its-subscribers

 

Tulu Moye power project gets USD 1.55 mln grant

The United States of America, through its International Development Finance Corporation (DFC), has committed USD 1.55 million (equivalent to some 54 million birr) in technical development for the Tulu Moye Geothermal Power Plant Project in Ethiopia. This new grant will enable project development and accelerate the schedule to design the 50-megawatt geothermal power plant, the US Embassy in Addis Ababa said in a statement sent to The Reporter.

When completed, the project will be the first independent power project to generate power on a commercial scale and one of the largest geothermal power plants in Ethiopia, a country with substantial untapped geothermal resources that can provide significant base-load power.  An Ethiopian company, TM Geothermal Operations PLC (TMGO), is developing the Tulu Moye project, which is approximately 100 km Southeast of Addis Ababa. According to the statement, DFC’s technical development will provide funding for up to USD 1.55 million to support detailed design works for the new power plant at an earlier stage in the project development process, enabling the Tulu Moye geothermal plant to deliver the first 50 megawatts of electricity to the Ethiopian power grid more quickly.

After the development is completed, DFC will evaluate additional financing for the implementation phase.  DFC’s technical development builds upon this recent progress and longer-term US government support for the nation’s power sector, including by Power Africa, the US Agency for International Development (USAID), the US Trade and Development Agency, and the US Department of the Treasury, the statement added.

TMGO was established in December 2017. The company signed the Power Purchase Agreement and the Implementation Agreement with the Ethiopia Electric Power and the Government of Ethiopia in 2017 and restated documentation in March 2019, making it one of the first independent power projects in Ethiopia. The Tulu Moye geothermal prospect site is situated Northwest of Asela. It is a wide zone where tectonic and volcanic activities are concentrated.

The Tulu Moye geothermal prospect is located about 100 kilometers southeast of Addis Ababa in Oromia Regional State, with Lake Koka to the North and Lake Ziway to the South.

Source- https://www.thereporterethiopia.com/article/tulu-moye-power-project-gets-usd-155-mln-grant

Two-billion steel manufacturer on the horizon

A local company established by four Ethiopian investors, Tadash Steel Manufacturing Industry Plc, has built a steel factory at a total cost of two billion birr in Dukem town, in the Special Zone of the Oromia Regional State. Built on 50,000 sq.m of land, the factory uses scrap metals to produce reinforced bars and wire rods, which in turn are used to make nails. Founder and CEO of Tadash Steel Manufacturing Industry, Kibiryessefa Tekle, told The Reporter that considering the challenges in the local steel market and construction industry he decided to team up with his three friends to build a modern steel factory plant in Dukem, a town located in the outskirts of Addis Ababa. Construction commenced in 2016 and currently 98 percent of the work is completed.

Kibiryessefa said the machineries were purchased from Europe, Dubai and India and have been installed. The cranes were purchased from Austria, steel structure from Dubai and the foundries from a well-known Indian company. The steel plant that manufactures steel and wire rods has four foundries. The steel plant has the capacity to manufactures 600 tons of steel per day, one of the biggest in the current Ethiopian market. Kibiryessefa also said that during the construction phase, some 400 youth were employed by the project adding that 800 jobs will be created once the factory is up and running.

Kibiryessefa said the machineries installation work is completed. However, the Indian company that supplied the machineries is unable to commission the steel plant as its experts could not travel out of India due to the COVID-19 travel ban. “Due to the COVID-19 pandemic, the experts could not leave India. Once Ethiopian Airlines resumes flights to India the experts would come and commission the plant,” he said. “We hope that the factory will start operation within three months.”

Kibiryessefa lauded the Commercial Bank of Ethiopia (CBE) and Oromiya International Bank (OIB). CBE provided loans for the project while OIB provided foreign currency for the purchase of machineries.

The factory has also built a three-storey building on 1000 sq. m of land that serves as office and guest house. The steel factory needs 20 MW of energy. Tadash Steel Manufacturing Plc has spent 40 million birr to build 11 km power transmission lines that brings power from a substation near Bishoftu town.

Kibiryessefa, who spent more than 20 years in scrap metals trade, said that he decided to venture into the steel manufacturing plant after he witnessed all the challenges in the local steel and construction industries. “There is always shortage of steel in the local market. Steel is an expensive strategic commodity that is critical in the local construction industry. The country spends millions of dollars on steel import,” Kibiryessefa said.

According to him, he and his friends faced a number of challenges in building the steel manufacturing plant. “Securing bank loan is the biggest challenge. When you import steel the banks would provide you with loans. But, when you decide to build a steel factory the banks are reluctant to finance such an important industry. If I wanted to make money I would have imported and sell steel. But, I wanted to make this establishment that adds value and contribute to the development of the country and that gives me mental satisfaction,” he said.   Kibiryessafa claims that foreign companies get preferential treatment adding that the system does not encourage local investors to venture into the manufacturing sector. Tadash Steel Manufacturing Plc is planning to build nail factory and an oxygen plant in the second phase. The company has already secured plot of land for the expansion project. Kibiryessefa said he and his colleagues are grateful for the support the Duken Town Administration extended to their company.

Source https://www.thereporterethiopia.com/article/two-billion-steel-manufacturer-horizon

Quick Contact

  • Mayswi building, 3rd Floor, 302
  • Ethio-China Avenue
  • +251-954-955-523
  • +251-911-529-749
  • +251-911-822-366
  • info@lucypartners.com

Newsletter