AddisZefen - Ethiopian Video

Business & Money

  • Ethiopia aims at transforming speciality coffee market

    Ethiopia, the world’s fifth largest coffee producer and home of arabica, has overhauled the way it markets the commodity in a bid to increase export earnings and clamp down on a thriving domestic black market.

    Experts say the reforms, which centre on improving traceability of beans and stimulating higher quality production, could transform the global speciality coffee market because of the expected increased supply from one of the world’s premier producers.

    A worker picks coffee in Yergachefe, Ethiopia © Bloomberg

    Arkebe Oqubay, the government minister overseeing the reform, said he hopes the changes, which are modelled on Colombia’s experience, will see Ethiopia’s annual coffee exports soar from their current $1bn.

    “We could easily earn five times what we’re earning if we do it in the right way,” he told the Financial Times. “Our aim is to improve traceability and encourage farmers to increase productivity and expand coffee farms.”

    Under the old arrangements, which were introduced in 2008, the vast majority of coffee was transported to the Ethiopian Commodity Exchange, mixed and then auctioned. This resulted in it losing much of its value because its origin was untraceable, a key requirement in the speciality industry.

    Read more at FT

    Read more »
  • Commercial rail begins service from Addis Ababa to Dire Dawa

    Ethiopia's cross country rail way connecting the heart of the country to the port of Djibouti has begun delivering official transport service for both passengers and cargo. The close to 700 kilometers railway was inaugurated in January and was so far undertaking trial trips. CGTN's Girum chala has more..


    Read more »
  • Indonesian textile industry facing competition from Ethiopia

    A textile shop on Jalan Pintu Air in Central Jakarta. (JP/Jessicha Valentina)

    The government's effort to lure textile manufacturers away from China to the archipelago is facing a rising threat from East African country Ethiopia, which is offering companies a competitive cost structure.

    Under an agreement with the United States, namely the African Growth and Opportunity Act (AGOA), Ethiopian exports are not limited by duties and quotas, said Indonesian Textile Association (API) chairman Ade Sudrajat in Jakarta on Wednesday.

    The country also has cheap labor and cheap electricity, as low as 4 US cents per kilowatt hour, he added.

    "China’s textile manufacturers are shifting their production overseas due to increased labor costs and air pollution. We want to attract them here. But some are already moving to Ethiopia," Ade said during a discussion on the textile industry.

    According to data from the Ethiopian Investment Commission, 124 foreign investors have expressed an interest in the Ethiopian textile sector, 71 of which are from China.

    Meanwhile, according to data from the Investment Coordinating Board (BKPM), investment realization in the Indonesian textile industry in 2016 decreased by 7.3 percent to Rp 7.55 trillion compared to 8.14 trillion in 2015.

    Foreign investors only contributed 42.5 percent in 2016, the lowest in six years.

     "Some of our members have actually already invested in Ethiopia," Ade said.

    Source: thejakartapost

    Read more »
  • Diaspora Raises Over U.S.$2 Million GERD Support

    The Ministry of Foreign Affairs announced that the Ethiopian Diaspora Community in different parts of the world raised 2,101,000 USD to back the construction of the Grand Ethiopian Renaissance Dam (GERD).

    In a press briefing Friday, Ministry Spokesperson Tewolde Mulgeta said the contribution was made during the last six months in the form of bond purchases, donation and other funding mechanisms.

    Tewolde added that the ministry met 199 times over the last six months with the diaspora community through various forums. Following this, the Diaspora made active participation in the fund raising and other programs including ICT, health and educational support, according to the Spokesperson.

    For its part, the ministry has made supports to 8,400 people in providing legal protection, investment tips as well as settling salary cases, Tewolde noted.

    Reports indicate that Ethiopia has over three million diaspora in different parts of the globe, it was learnt.

    Source: the Ethiopian herald

    Read more »
  • Ethiopia's tourism potential yet to be fully exploited

    In 2016, over 800,000 tourists visited Ethiopia, bringing over ETB 128 billion ($5.6 billion) to the country. This is a decrease of approximately 11% from over 900,000 visitors in 2015. This is according to a new report by Jumia Travel Ethiopia, which further states that the Ministry of Culture and Tourism hopes to increase the number of tourists to one million, and the revenue to well over ETB 675 billion ($29.8 billion) in 2017. On the other hand, a remarkable growth has been achieved in terms of investment in the sector, rising by 3.7% end of 2016.

    “The country is looking for a transformational growth that will take the sector to the next level, marketing Ethiopia locally and internationally to list the country among Africa’s top five destinations. We are also shifting gear to incorporating technology into the industry,” said Solomon Tadesse, CEO of Ethiopian Tourism Corporation.

    Challenges abound but the sector is resilient

    Among top challenges leading to the decline of tourist arrivals are recent safety and security concerns that have been a major setback to the country’s growing leisure and conference tourism industry. However, the sector remains resilient as the country continues working towards prioritising security to ensure the safety of visitors and citizens, as well as minimise the impact of security threats.

    Paul Midy, CEO of Jumia Travel remains optimistic saying, “Challenges abound but the future is inspiring. We look forward to bringing the intended growth and progress into reality.”

    The report focuses on interesting findings, indicating that although conference tourism is growing in Ethiopia, leisure spending contributes 84.4% to GDP while 15.6% is from business spending. In 2015, the direct contribution of travel and tourism to GDP was ETB 51.3 billion ($2.26 billion) - accounting for 4.1% of total GDP, and is forecast to rise to ETB 85 billion ($3.7 billion) by 2026.

    In terms of hotel booking, Addis Ababa has the highest demand at 39%, followed by Hawassa at 11.2%, Bishoftu at 8.1%, and Bahir Dar at 7.5%. The majority of international arrivals are from other African countries (31%), and Europe (30%). While domestic tourism continues to gain popularity among Ethiopians (31.3%), foreign visitor spending is still higher at 68.7%.

    According to Alexander Burtenshaw, the country manager of Jumia Travel Ethiopia, expansion of tourism activities has reduced Ethiopia's dependence on agriculture. “Until recently, little had been invested in mapping the country’s tourism, but the last decade has seen intensified interest from investors.”

    Preferences are high for the 2 and 3-star hotels, attracting 37% and 36% of total hotel bookings respectively. Notably, a large number of customers favor online payment (59%) as compared to pay-at-hotel (41%). The rising growth of online payments can be attributed to foreign travelers who book hotels with international credit cards.

    Find the full report here.

    Read more »
ethiopian music addiszefen
Like our AddisZefen facebook page for more latest Ethiopian news!