Traders Forced to Evade VAT to Stay Competitive in Shadow Economy Across Merkato and throughout Ethiopia, widespread VAT evasion thrives as traders and tax collectors engage in a ongoing game of cat and mouse. Facing pressure to meet collection targets, officials at times aggressively fine businesses even on minor suspicions. Traders in turn employ various […]
Ethiopian Prime Minister Abiy Ahmed (PhD) gave lawmakers an extensive rundown on Thursday of his government’s economic stewardship to date as well as ongoing fiscal and monetary challenges. In his address to parliament, Abiy said Ethiopia has brought down its debt-to-GDP ratio from previous high levels to 17.5 percent currently. “Our target is to reach
PM Abiy Updates Lawmakers on Ethiopia’s Growth, Debt Woes and IMF Talks Read More »
Ethiopia will introduce a new hotel classification system next month, replacing the existing star ratings, the tourism minister said on Wednesday, in a sector that has seen rapid expansion over the past decade prior to COVID impacts. The hospitality industry showed drastic growth in Ethiopia over the last 10 years, with the country establishing itself
Ethiopia Hits Refresh on Hotel Ratings to Reignite Tourism Read More »
Inspired by Kenya’s success with tea, Ethiopia is scaling up planting to develop the crop into a major foreign exchange earner to rival earnings from its dominant coffee exports. Currently, tea exports bring in two million dollars annually versus over one billion dollar for coffee. But after Prime Minister Abiy Ahmed visited the top producer
Ethiopia Hopes Tea Can Mimic Kenya’s $1B Export Success Read More »
As Ethiopia works to rebuild from recent conflicts, health crises, and devastating economic impacts, establishing the conditions for strong, sustainable growth has never been more important. Attracting domestic and foreign investment will be critical to generating jobs, stimulating business activity, and lifting its citizens out of poverty. However, a burdensome, unpredictable tax system threatens to
CONFUSING TAXES CONFOUND THE COMEBACK Read More »
In April, Ethiopia’s Prime Minister Abiy Ahmed unveiled ambitious reforms to develop the nation’s startup sector at the “Startup Ethiopia” event. He outlined changes to taxation, funding access, international payments, and investment rules that could boost the country’s entrepreneurs. The proposals included letting startups retain 100 percent of foreign earnings from exports, rather than 50
ETHIOPIA MUST IMPLEMENT – NOT JUST PROPOSE – STARTUP CHANGE Read More »
Welcome to the inaugural issue of BirrMetrics Digital Magazine. As we launch this new platform, this editorial aims to shine a light on one of the most pressing challenges facing Ethiopia’s business community – the difficulties associated with operating an enterprise in this market. Running a company in Ethiopia presents significant obstacles, as speaking to
A Message from the Editor: A New Voice Emerges Read More »
SantimPay facilitates over two billion birr in transactions per month By Yared Seyoum The financial technology sector in Ethiopia has seen incredible growth over the past few years as the country continues its rapid digitization. Mobile money accounts now number 68.7 million, surpassing cash-based transactions for the first time. It is within this dynamic environment
Surviving the Gold Rush: SantimPay Faces Off Against Competitors Read More »
International Labour Organization (ILO) experts have recommended the gradual implementation of minimum wage legislation in Ethiopia to improve workers’ living standards without significantly impacting businesses. In a presentation recently, ILO Wage Specialist Guillaume Delautre highlighted that low wages are a major cause of Ethiopia’s high employee turnover rates, forcing companies to spend heavily on recruiting
ILO Experts Recommend Gradual Implementation of Minimum Wage in Ethiopia Read More »
Under a new draft law being considered by parliament, the minimum capital of Ethiopia’s central bank would be increased nearly twentyfold – setting the stage for what would amount to one of the largest capital surges for a monetary authority in history. The proposed changes to the National Bank of Ethiopia’s (NBE) Establishment Proclamation envisions
Draft Proclamation Proposes Record 19x Capital Surge for Central Bank Read More »
