Starting July 29, 2024, [import duties are now calculated based on the daily exchange rates] of National Bank of Ethiopia (NBE). The Ethiopian Customs Commission has introduced a major shift which has caused volatility and unpredictability for importers, with many businesses facing higher costs. The transition to a market-based exchange rate system is intended to curb illicit trading and foreign currency shortages but has left companies scrambling to adjust. The move has been particularly tough on businesses that had opened Letters of Credit (LCs) prior to the reform, as they are now paying duties at the new, higher rates.
https://addisfortune.news/customs-exchange-rule-bites-importers-cash/
A draft [corporate governance bill to improve the stability and effectiveness of the insurance sector] was introduced by the central bank recently. The bill focuses on enhancing qualifications, oversight, and administration within the sector, with a particular emphasis on good governance as the foundation for industry growth. As Ethiopia opens up to foreign financial institutions and the capital market, stronger governance is seen as crucial for ensuring financial stability and sustainability. The NBE's move is part of broader efforts to strengthen the financial sector and support the country's economic development.
https://addisfortune.news/insurers-pushback-central-banks-governance-bill/
The Ethiopian Food & Drug Authority [(EFDA) has eased regulatory requirements for manufacturing products classified as "low risk,"] such as sanitary pads, diapers, and prosthetics. The new directive reduces the number of required production rooms and simplifies staffing requirements, aiming to cut down on bureaucratic red tape and encourage local manufacturing. The changes are expected to lower compliance costs and make it easier for companies to enter the market, ultimately saving foreign exchange reserves. The move has been welcomed by manufacturers, who believe it will spur local production and reduce reliance on imports.
https://addisfortune.news/authority-moves-to-spur-local-medical-device-production/
SBG Industry Plc, [the bottler behind the "Arki" water brand is launching a new juice brand "Smiley,"] with a five-million-dollar expansion project. The company plans to distribute its products both in Addis Abeba and regional markets, despite facing difficulties such as power outages and security issues. The expansion comes as Ethiopia's manufacturing sector struggles with supply chain bottlenecks and declining contributions to GDP. SBG's efforts to diversify its business reflect broader trends in the sector, as companies seek to mitigate risks and ensure long-term sustainability.
https://addisfortune.news/saudi-owned-arki-water-bottler-bets-on-juice-production/
The founding Director General of the Ethiopian Capital Market Authority (ECMA), [Brook Taye (PhD) has been appointed to lead Ethiopia's first sovereign wealth fund,] Ethiopian Investment Holdings (EIH). After laying the groundwork for Ethiopia's nascent capital markets, Brook now oversees nearly 30 state-owned enterprises, including formidable institutions Ethiopian Airlines and Ethio telecom. His successor at ECMA, Hana Tehelku, is expected to build on his work, focusing on investor protection and market discipline.
https://addisfortune.news/capital-market-architect-now-takes-on-the-countrys-wealth-fund/