DBE Moves to Foreclose Dembel

Officials of the Development Bank of Ethiopia (DBE) appear determined to recover a loan extended to the developer of the yellow behemoth prominent on the city’s skyline, on Africa Avenue. Although DBE threatens to take over the 12-storey building, to put it on the auction bloc, the developer, Yemiru Nega, claims to have the ability to fullfil an agreed loan....Read More

City to Issue First Bond to CBE

The Cabinet of the Addis Abeba Caretaker Administration, whose mandate was extended by Parliament for another year in September 2007, is to issue a bond in order to finance the constructions of condominiums in the capital. The city is to sell a one billion Birr bond to the state-owned Commercial Bank of Ethiopia (CBE), to be paid back in three years, with four per cent interest, sources disclosed to Fortune.

The Board of Directors of the state-owned Ethiopian Insurance Corporation (EIC), chaired by Mesay Girma, rejected last week the selection of Luigi Varnero Impresa Costruzioni, a.k.a. Varnero, to build a multifunctional structure, while terminating the firm’s relationship with the consulting company, Seleshi Consulting Architects and Engineering.

Kenyan Companies Dominate CBE Tender for Payment System

Five companies are in contention to win a contract worth as much as 60 million Br for the installation of the Electronic Payment System (EPS) for the state-owned Commercial Bank of Ethiopia (CBE).

New Leather, Textile Centre Aims to Boost Exports

The Leather, Textile and Garment Development Department under the Ministry of Trade and Industry (MoTI) is to be restructured as a centre, sources disclosed. The centre is expected to be the supervisor of the Leather and Leather Production Technology Institute (LLPTI), located in Kaliti, and the Textile and Garment Industry Institute under construction.

United Continues Positive Earnings Trend in Banking

Executives at United Bank SC had a good day yesterday at the Hilton Addis, reporting their rosy annual performance from the last fiscal year to the shareholders of the Bank in the ninth annual general meeting. Eyesus Work Zafu, board chairman, proudly disclosed that the bank grossed a net profit of 48.2 million Br, a 47pc rise from 32.8 million Br in the previous fiscal year.

German Shoemaker Enters Agreement with Ethiopian Factories

The up-and-coming leather sector has a new patron. The largest shoemaker in Europe is now sourcing its inputs from two domestic factories and hopes to begin completed product production with its own plant in the future. The leather industry has been receiving a big push lately from the government and is diversifying its export destinations past the traditional trade partner, Italy.

City Adm’n to Request Federal Budget Subsidy

The Addis Abeba City Caretaker Administration (AACCA) Cabinet on November 9 approved a decision to request a subsidy from the federal government for the first time ever, as the latter’s programmes exceed the city’s ability to raise revenue.

NOC Takes Fuel Supply Defence Contract from Total

National Oil Company (NOC) will be the sole supplier of fuel and lubricants to the Ministry of National Defence (MoND) for the next three years after winning a tender last week.

Caretaker Performance Falling Behind in First Quarter

The first quarter performance of the Addis Abeba City Caretaker Administration (AACCA) in the 2007/08 budget year turned out to be a disappointment. The city’s expenditures surpassed its revenues by 33.6 million Br.

Addis Abeba Land Auction for Hotel Construction Delayed

Addis Abeba has big plans to develop the capital with new infrastructure meeting international standards. Improving and increasing the hospitality sector’s offerings is seen as crucial to this push. However, a recent crackdown campaign by the Anticorruption Commission on alleged shady land deals is bringing service provision in many land offices to a halt do to closures or employees unwilling to carryout their duties for fear of apprehension.

UNCTAD: Ethiopia Lagging in Trade and

Development

Ethiopia has been ranked 114 among 123 countries included in the latest Trade and Development Index released by the UN Conference on Trade and Development. The UN has been urging Ethiopia, among other African countries, to lift trade barriers to stimulate economic growth, but some experts warn that free trade could be detrimental to the country's economic well-being.

City Cabinet Moves to Grant Condo Plots for Ass’ns

The Addis Abeba City Administration Cabinet, in its regular meeting a week ago, decided to grant plots for housing associations to construct condominiums.

Sources revealed that the latest move is intent on encouraging multiple-storey vertical developments by associations as opposed to the shorter constructions individuals seek.

Awash Makes Down Payment for Yerer Flour

Awash Horticulture Plc, the sole bidder in the government auction of Yerer Flour SC, made a down payment of nearly one million Birr, securing its acquisition of the flour mill.

Awash has agreed to pay a total of 9.8 million Br for Yerer by servicing the company’s seven million Birr in outstanding debt and paying PPESA an additional 2.8 million Br in cash.