#Ethiopia: World Bank’s $700 million loan targets #CBE restructuring, financial overhaul of NBE and DBE

The World Bank has approved a $700 million loan to strengthen Ethiopia’s financial sector. The funds will support restructuring the Commercial Bank of Ethiopia (CBE), modernizing the National Bank of Ethiopia (#NBE), and transforming the Development Bank of Ethiopia (#DBE) into a sustainable finance institution.

Last month, Ethiopia’s parliament approved a 54.6 billion birr capital boost for CBE. Legislators also passed a law authorizing the Ministry of Finance to issue 10-year Treasury bonds to address 845.4 billion birr in non-performing loans from state-owned enterprises, with a three-year grace period for repayment.

https://addisstandard.com/daily-scoop/

#Ethiopian Catholic bishops report disruption to church operations, urge paths to peace

The Ethiopian Catholic Bishops' Conference reported a "severe disruption" to church operations amid ongoing conflicts, including the "closure of numerous parishes," in their Advent pastoral message, released on Sunday, December 22, at the conclusion of their 57th annual plenary assembly in Mojo.

The bishops highlighted the devastating impact of violence on institutional infrastructure. "Our clinics, schools, and pastoral centers have been devastated," the statement read, noting that church personnel "have had to operate under conditions of extreme insecurity," with some forced to leave their posts due to "credible threats to their safety."

The pastoral message also addressed the broader humanitarian crisis, emphasizing the toll on communities enduring a "legacy of displacement, loss, and destruction." It described families being "torn apart" in regions affected by conflict and economic instability, leaving many without access to "essential pastoral services and spiritual support."

While recognizing recent peace-building initiatives, the bishops called for greater commitment to dialogue among stakeholders. "True leadership is shown in listening, seeking truth, and working tirelessly for the common good," they stated, urging religious and political leaders to prioritize "sustainable paths to peace." They also advocated for "a comprehensive approach to national reconciliation" through inclusive dialogue and tangible action.

https://catholicbishopsconferenceofeth.africa-newsroom.com/press/catholic-bishops-conference-of-ethiopia-pastoral-message-for-advent-december-2024?lang=en

Progress or Hardship?: How #Ethiopia’s economic reforms impact low-income households amid inflation, escalating cost of living

Ethiopia’s ambitious economic reforms, aimed at boosting government revenue and addressing macroeconomic challenges, have left low-income households grappling with skyrocketing living costs and persistent inflation. Civil servants and fixed-wage earners, like Lombebo Mulatu, describe an increasingly unsustainable reality.

“My salary barely covers the basics,” said Lombebo, a federal government worker in #Addis_Abeba. “Rent alone consumes over 65% of my income. It’s a constant struggle to put food on the table.” Similar sentiments were echoed by Milkessa Mohammed, a teacher in Oromia, who noted, “We are praying just to feed our families and raise our children. Saving is unthinkable.”

Economic measures such as increased electricity tariffs, revised tax laws, and rising service fees have intensified the financial burden on households. Despite government efforts to curb inflation and adjust public sector salaries, experts warn that the reforms disproportionately affect lower-income groups. “Any rise in consumption taxes substantially increases their cost of living,” said macroeconomist Merid Tullu.

Amid escalating hardships, there is growing concern over the balance between revenue-boosting policies and the economic wellbeing of ordinary citizens. "Blindly adopting external recommendations without considering domestic realities may lead to unintended negative consequences," emphasized Henok Fasil, a consultant at the #UN Economic Commission for Africa.

https://addisstandard.com/?p=47560

Piracy in #Somalia resurges, fueled by grievances over illegal fishing

In Somalia, Somali fishermen are turning to piracy once again, citing violent confrontations with foreign trawlers and the destruction of their livelihoods. Farah, one of the fishermen who spoke to the BBC, said, "Ships came and took all our equipment and belongings." His colleague Diiriye added, "There were bullets in their bodies. They had no guns; they had gone to the sea with their nets to make their livelihood."

The resurgence of piracy comes after nearly a decade of calm, with Operation Atalanta reporting no incidents between 2020 and 2022. However, piracy returned in 2023, with six attacks, rising to 22 incidents in 2024. Farah justified their actions, saying, "When someone intimidates you and robs you, it is compulsory to fight. They caused the fight."

Illegal fishing by foreign vessels, often armed, has fueled tensions in Eyl, a town historically dependent on fishing. The fishermen accuse trawlers of taking their catch and killing locals. "We use the RPG to stop the ship. When the ship doesn’t stop, we shoot over it. We don’t kill. The aim is to get something, not to kill," Diiriye said.

#Puntland authorities acknowledge the challenges of illegal fishing but highlight progress in security. Puntland Maritime Police Force commander Farhan Awil Hashi stressed the need for economic solutions: "Young people must get jobs, always. If the person is busy doing something, they will not think about heading to the sea and hijacking ships."

https://www.bbc.com/news/articles/cq8vl8n9gypo.amp

Two farmers killed in militant attack in South #Ethiopia's #Kore zone

Two farmers were killed on Sunday, December 22, 2024, in an attack by armed militants in Qore Kebele, Gorka District, Kore Zone, South Ethiopia Regional State. The victims were reportedly tending to their cattle when the assailants launched the attack, residents and officials told Addis Standard.

A resident, speaking anonymously for safety reasons, claimed the perpetrators were “Shene militants who crossed over from West Guji Zone of Oromia Region.” Describing the incident, the resident said, “First, they shot them with Kalashnikovs, then butchered them with machetes. What happened was beyond words—a very shameful and horrific act.” Deputy Chairperson of Qore Kebele, Destaye Yohannes, confirmed the killings and expressed frustration over the lack of support from higher authorities despite frequent reports of insecurity.

https://addisstandard.com/?p=47580

#Somalia delegation heads to #Addis_Abeba to strengthen ties under Ankara Declaration

A delegation from Somalia, led by the Minister of State for Foreign Affairs and International Cooperation, Ali Omar, is set to visit Addis Abeba today, December 23, 2024, to reinforce commitments outlined in the Ankara Declaration. In a statement on Monday, Somalia's Minister of State for Foreign Affairs and International Cooperation said that the visit “underscores Somalia's unwavering commitment to deepening bilateral ties with #Ethiopia, as outlined in the Ankara Declaration forged by the leadership of both nations.” The delegation will “focus on exploring transformative opportunities to cultivate a partnership founded on mutual respect, common interest, and cooperation.”

The Ankara Declaration, signed in Ankara during a meeting between Turkish President Recep Tayyip Erdoğan, Ethiopian Prime Minister Abiy Ahmed, and Somalia’s President Hassan Sheikh Mohamud, reaffirmed “respect and commitment to one another’s sovereignty, unity, independence, and territorial integrity.” It also addressed Ethiopia’s desire for “assured access to and from the sea,” while emphasizing respect for “the territorial integrity of the Federal Republic of Somalia.”

https://addisstandard.com/?p=47584

#News_Alert: #Somalia accuses #Ethiopian forces of “blatant aggression” in border town of #Doolow

The accusation came a few hours after Somalia announced a visit by a delegation, led by the Minister of State for Foreign Affairs and International Cooperation, Ali Omar, to travel to Addis Abeba today to reinforce commitments outlined in the Ankara Declaration.

Earlier today, local media in Somalia reported about clashes in Doolow, a town near the border with Ethiopia.Forces from Somalia federal army and Jubaland regional troops are present in the area where Ethiopian forces patrol strategic locations including the local airport.

As of the publication of this news, there has been no comment from the Ethiopian government.

Read the news here: https://addisstandard.com/?p=47587

Progress or Hardship?: How #Ethiopia’s economic reforms impact low-income households amid inflation, escalating cost of living

As Ethiopia pursues sweeping economic reforms to secure financial stability and external loans, the cost of living continues to rise, impacting low-income households and public servants across the country.

For Lombebo Mulatu, a federal employee in #Addis_Abeba, inflation has turned daily life into a battle. “Rent alone consumes over 65% of my income,” he said. “It’s a constant struggle to put food on the table.” The weight of these struggles echoes across Ethiopia, as public servants like Milkessa Mohammed, a teacher in the #Oromia region, face similar challenges. “Saving is unthinkable,” Milkessa noted.

While government officials tout the necessity of reforms, including new taxes and increased public service fees, experts caution against measures that disproportionately burden the vulnerable.

https://addisstandard.com/?p=47560

#Egypt FM says external presence in #Red_Sea "unacceptable," discusses regional stability with #Somalia

Egypt's Foreign Minister Badr Abdelatty declared that "the presence of any party other than coastal countries of the Red Sea is unacceptable" during bilateral talks in Cairo on Monday with Somali Foreign Minister Ahmed Moalim Fiqi.

The ministerial discussions addressed regional developments, including the recent #Ankara-mediated negotiations between Somalia and Ethiopia. Fiqi noted these diplomatic efforts were "successful in curbing further violence in the region," preventing what he described as "a dangerous explosion that could have burned everyone's interests."

The talks focused on regional maritime security following Ethiopia's January agreement with #Somaliland. Fiqi emphasized the importance of preserving "Somalia's sovereignty, independence and territorial integrity" as technical discussions between Somalia and Ethiopia are set to commence by February 2025.

Both ministers concluded their Cairo meeting by signing a joint statement committing to elevate their nations' ties "to the level of a comprehensive strategic partnership."

https://www.africanews.com/amp/2024/12/23/egypt-and-somalia-meet-to-discuss-red-sea-and-developments-in-somaliland/

#Ethiopia: Seismic activity rises near #Fentale Mountain: 4.9 magnitude quake reaches #Addis_Abeba

Two earthquakes were reported near Fentale Mountain, in the Metehara area, yesterday, 23 December, 2024. The first occurred around 3:00 PM, while the second and stronger earthquake struck at 10:41 PM, registering a magnitude of 4.9 on the Richter scale.

The tremors from this later earthquake were felt as far as Addis Abeba, as confirmed by Addis Ababa University (#AAU). Earlier in the day, another earthquake with a magnitude of 4.6 on the Richter scale was also recorded near Fentale Mountain around 3:00 PM.

According to Professor Atalay Ayele, Head of the Seismology Department at AAU, the Awash Fentale district and the Metehara area have experienced a series of earthquakes of varying magnitudes since 19 December, 2024. However, the recent 10:41 PM earthquake stands out as one of the strongest, with its tremors reaching Addis Abeba.

Ever since late September 2024, the Awash Fentale Mountain area has been experiencing a series of earthquakes. Since then, repeated earthquakes have been recorded, with tremors reaching Addis Abeba, Afar, Dire Dawa, and surrounding areas.

In a recent interview with Addis Standard, Professor Atalay explained that while large, destructive earthquakes are rare in Ethiopia, minor tremors are frequent. “However, they still pose a significant risk to infrastructure and human safety, particularly in regions with vulnerable buildings and populations,” he emphasized.

Follow the link to read the full interview.

https://addisstandard.com/?p=47027

#Ethiopia reiterates commitment to ‘fully implement’ #Ankara agreement following discussions with #Somalia delegation

Ethiopia’s State Minister for Foreign Affairs, Ambassador Mesganu Arga, affirmed the country's commitment to "fully implement" the Ankara Agreement after high-level discussions with a Somali delegation led by Ali Omar, Somalia’s Minister of State for Foreign Affairs and International Cooperation.

The Somali delegation, which arrived in #Addis_Abeba on December 23, 2024, engaged in talks focusing on “strengthening bilateral relations” and exploring strategies for effectively implementing the agreement. Ambassador Mesganu emphasized Ethiopia's dedication to ensuring “peace in Somalia is peace for Ethiopia,” while Ali Omar described the discussions as “fruitful,” reiterating Somalia’s resolve to deepen cooperation under the Ankara Declaration.

https://addisstandard.com/?p=47595

#Ethiopia’s bid to rejoin #AGOA falls short, again, as #US maintains suspension in latest announcement

Ethiopia’s bid to rejoin the African Growth and Opportunity Act (AGOA) has failed again, as the Office of the United States Trade Representative (USTR) announced on 21 December that “the list of African countries eligible for AGOA will remain unchanged for the upcoming fiscal year.” Ethiopia was initially removed in 2021 following the brutal war in the #Tigray region, which witnessed “gross violations of internationally recognized human rights,” as stated in President Joe Biden’s executive order.

The suspension has hurt Ethiopia’s economy, with foreign companies exiting its industrial parks. Ethiopia called the decision “misguided,” saying it “fails to take into account the commitment of the Government of the United States to value the well-being of ordinary citizens” and impacts “the livelihoods of more than 200,000 low-income families, mostly women who have nothing to do with the conflict.” Sam Michel, USTR Spokesperson, confirmed that “the list of eligible and ineligible countries will remain unchanged for 2025.”

https://addisstandard.com/?p=47601

#Ethiopia denies #Somalia’s accusation of attack, blames ‘spoilers of peace’ for #Doolow incident

Ethiopia's Ministry of Foreign Affairs (#MoFA) rejected Somalia’s claims of Ethiopian forces’ involvement in clashes in the town of Doolow, describing the allegations as “not true.” The Ministry attributed the incident to “certain elements intent on destabilizing the Horn of Africa,” labeling them as “perennial spoilers of peace in the region” who aim to derail the normalization of Ethiopia-Somalia relations under the #Ankara Declaration.

Somalia had earlier condemned what it called an “unprovoked and unexpected attack” by Ethiopian troops on Somali National Army, intelligence, and police bases in Doolow. The attack, Somalia alleged, violated the Ankara Declaration and posed a challenge to “ongoing peace efforts,” further warning against additional incidents and asserting it “will not remain silent in the face of such violations.”

https://addisstandard.com/?p=47605

#Ethiopia sees 72% surge in coffee exports, $797 million earned in five months

The Ethiopian Coffee and Tea Authority announced that the country earned $797 million from exporting 178,000 metric tons of coffee in the first five months of the current fiscal year. This marks a 72% increase in export volume and a 55% rise in revenue compared to the same period last year, surpassing the target of 117,000 metric tons set for the period.

Shafi Umar, Deputy Director-General and Head of Marketing at the Authority, stated that Ethiopia is on track to generate $1 billion from exporting over 200,000 metric tons of coffee by mid-year. Coffee remains Ethiopia’s top export commodity, contributing over a quarter of the nation’s annual export earnings and supporting the livelihoods of more than ten million individuals in the supply chain.

https://addisstandard.com/?p=47592

World Bank staff question #Ethiopia debt assessment reached with #IMF, memo shows

An internal #World_Bank memo has raised concerns over Ethiopia’s debt sustainability analysis (DSA), jointly prepared by the International Monetary Fund (IMF) and the World Bank’s International Development Association (IDA). The document, reviewed by Reuters, questions the validity of the assessment, a key reference in Ethiopia’s ongoing debt restructuring discussions.

Authored by World Bank consultant Brian Pinto and Chief Economist Indermit Gill, the memo stated, "We found that the bondholders have interpreted the DSA correctly, but the DSA itself may be faulty." It added, "The disagreements about Ethiopia's debt sustainability will be repeated as other countries become debt distressed."

Ethiopia’s State Finance Minister Eyob Tekalign said the DSA was recently reviewed by IMF and World Bank teams during the latest evaluation of the Fund’s loan program, adding that “no major changes” were made. An IMF spokesperson confirmed the November review, noting that DSA updates are a routine part of such assessments but declined to comment on the memo.

https://www.reuters.com/world/africa/world-bank-staff-question-ethiopia-debt-assessment-reached-with-imf-memo-shows-2024-12-23/

#Ethiopia: Assistance underway for #Amhara's #Bugna district amid severe food shortages

Tesfaw Batable, Commissioner of the Amhara Disaster Prevention and Food Security Commission, announced that food aid has been distributed to Bugna District with the support of #UNICEF and the World Food Programme (#WFP).

The commissioner stated that plans are underway to assist 110,000 individuals through collaborative efforts involving the Organization for Rehabilitation and Development in Amhara (ORDA) and the Ethiopian Disaster Risk Management Commission. "The response is coordinated and supported by a research team on the ground," he added.

Food aid to the district had been suspended for several months due to security challenges in the area, leaving over 110,000 residents in critical need.

Watch!

#German official accused of pressuring embassy to grant #Schengen visas to group of #Ethiopians

A German Ministry of Foreign Affairs official has been accused of pressuring staff at the country’s embassy in #Addis_Abeba to issue Schengen visas to a group of Ethiopian nationals. According to reports, the official issued formal instructions to approve the visas despite objections. One recipient of the visas reportedly sought asylum in Nuremberg after entering Germany.

Embassy staff raised concerns about the directives with relevant authorities, highlighting that they felt compelled to grant the visas under pressure. The Ministry of Foreign Affairs has not commented on the allegations, and specific details, including the number of visas issued or the status of the recipients, remain unclear.

This accusation follows a series of controversies involving the Ministry. In July, it faced scrutiny over allegations of issuing visas based on forged documents for nationals of Afghanistan, Syria, and Türkiye. Investigations into these claims are ongoing.

In August, additional allegations emerged involving nepotism, with reports that the spouse of a senior official played a role in influencing visa decisions and training embassy staff.

https://schengen.news/german-official-accused-of-pressuring-embassy-to-grant-schengen-visas-to-a-group-of-ethiopians/