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6 AWESOME PLACES TO VISIT IN ETHIOPIAPosted on 18 November 2015

Located in the Horn of Africa, Ethiopia is a predominantly mountainous landscape which offers the perfect destination for those wishing to trek in dramatic mountain scenery. Here are Matt Wesby's picks for six places to visit.
 

The king and I, A book launch by Prince Dr Asfa-Wossen

Social Media Out in Front After Paris Attacks


The king and I, A book launch by Prince Dr Asfa-Wossen


Watch This Woman Capture 100 Years of Ethiopian Beauty in One Minute


Made for an Emperor — A one of a kind Patek Philippe


6 AWESOME PLACES TO VISIT IN ETHIOPIA


 

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    The planned airport would make it Africa’s biggest airport by far, and even larger than London’s Heathrow, which handled 73.4 million passengers last year, with a capacity of 90 million
     

 

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Prince Michael Mekonnen: THE CORONATION OF HIS IMPERIAL MAJESTY EMPEROR HAILE SELASSIE

 

 

The Prince crown of Ethiopia, Prince Michael Mekonnen, is set to generate fund to renovate Fairfield House,once the official residence of the late emperor of Ethiopia (1935 to 1939) when he was in exile in United kingdom. On 29 August 2015, Prince Michael, his friends and families, the trustees of Fairfield house and along side with the mayor of the city of Bath have organised 'Ethiopian day' which has successfully raised awareness and has set an ongoing plan to raise over one million pound sterling to renovate the historical residential palace of the late emperor of Ethiopia, Fairfield house. Which symbolise the historical and cultural heritages of the two nation
 

The king and I, A book launch by Prince Dr Asfa-Wossen

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  • Emperor Haileselassie I of Ethiopia was born on this day 123 years ago (July 23, 1892)23 July 2015 | View comments

Haile Selassie I (Ge’ez: ቀዳማዊ ኃይለ ሥላሴ) (23 July 1892 – 27 August 1975), born Tafari Makonnen Woldemikael, was Ethiopia’s regent from 1916 to 1930 and Emperor of Ethiopia from 1930 to 1974. He also served as Chairperson of the Organisation of African Unity from 25 May 1963 to 17 July 1964, and again from 5 November 1966 to 11 September 1967.

Ras Mekonnen Woldemikael and his son Lij Teferi Mekonnen the future empero

 

 

 

 

 

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Today in Ethiopian History June 30th: APPEAL TO THE LEAGUE OF NATIONS

Posted on 30 June 2015

Today in Ethiopian History June 30th: APPEAL TO THE LEAGUE OF NATIONS His Imperial Majesty Haile Selassie I
"I, Haile Selassie I, Emperor of Ethiopia, am here today to claim that justice which is due to my people, and the assistance promised to it eight months ago, when fifty nations asserted that aggression had been committed in violation of international treaties. There is no precedent for a Head of State himself speaking in this assembly. But there is also no precedent for a people being victim of such injustice and being at present threatened by abandonment to its aggressor. Also, there has never before been an example of any Government proceeding to the systematic extermination of a nation by barbarous means, in violation of the most solemn promises made by the nations of the earth that there should not be used against innocent human beings the terrible poison of harmful gases. It is to defend a people struggling for its age-old independence that the head of the Ethiopian Empire has come to Geneva to fulfill this supreme duty, after having himself fought at the head of his armies.

 

 

Protesters who gathered in front of the African Union (AU) headquarters called on the continental bloc to take actions against the Eritrean government for the unfolding gross human right abuses.

 

By Daniel Teferra (PhD) no mass movement for freedom and democracy can succeed without an international alliance. For instance, Eastern European countries were able to receive the support of the Roman Catholic Church and the Free World because, for one, their struggle coincided, luckily, with the interests of the Free World. But more importantly, the people were determined to end the system of one-party rule and transition to a democracy.

 

 

 

 

 

 

 

 

In Ethiopia, 45 female poets joined forces to confront gender-based violence, cultural gender expectations, and other pressures of being a girl or woman. They’ve recently released a book, called “Love Rules.”
The poets, between ages of 13 to 55, met in workshops over three months last summer. They performed their work at the Hawassa Literary Festival in Hawassa, in central Ethiopia, about four hours from the capital.
 

 

Almeda Textiles, which sells clothes to Swedish fashion chain Hennes & Mauritz AB, plans to increase revenue by 50 percent to $30 million a year by 2018

 Chinese diplomat pitching for potential business opportunities in Ethiopia! 

Posted on 24 June 2015

The ambassador highlighted the Addis Ababa-Djibouti modern electrified railway being built by Chinese companies plays significant role in import and export of business goods for foreign investors operating in Ethiopia.

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  • Obama has visited Africa four times while in office, but has not yet travelled to Kenya during his White House tenure, with a previous trip delayed by Kenyan President Uhuru Kenyatta’s indictment for war crimes by the International Criminal Court.
    በመንግስት እስርቤት ከሌሉ አድራሻቸውን ፍርድቤት ሊያውቀው እንደምን ተስኖታል? በመከላከያ ምስክርነት የተቆጠሩት አቶ አንዳርጋቸው ጽጌ፣ ዛሬ ፍርድ ቤት እንዲቀርቡ ከትናንት በስቲያ የተሰጠው ትዕዛዝ ተግባራዊ ባለመሆኑ፣ ሦስተኛ ትዕዛዝ ተሰጠ፡፡
    We hope you will use your visit to Kenya to press President Uhuru Kenyatta and his administration to take the necessary steps to Restrictions on civil society Refugees While part of your trip to Ethiopia will include a momentous visit to the African Union, we are concerned by the timing of your bilateral meetings with Ethiopia’s leadership. Particularly in the wake of that country’s recent non-competitive elections, your visit may send the message that the United States is giving short shrift to the profoundly repressive policies pursued by the government. The political environment in Ethiopia is dramatically restricted, as is the ability for Ethiopians to freely express themselves.
    #EthiopiansMessageToObama campaign urges the president to address human rights abuses

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Can the right to free speech be justified?09 June 2015 | Comments (0)

I believe that most readers would consider the title of this commentary a bad attempt at rhetoric. “Of course it can!” is the categorical reply from most people with whom I have discussed this issue. The universal acceptance of human rights and democracy has made the right to free speech a household mantra.

Video The Revolutionary Democrats…

The Revolutionary Democrats have now gone through one of their major undertakings of the past few years; national elections. It is perplexing though to see an outcome which has displeased both the winners and losers, gossip observed. There is as much unease within the leadership of the EPRDF on this as was evident in the run up to the national elections, gossip noted.

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Yet The United States, which enjoys close security cooperation with Ethiopia, also said it remained "deeply concerned by continued restrictions on civil society, media, opposition parties, and independent voices and views"

 

 

Old political tricks, new election 17 May 2015 | Comments (0)
A government spokesman said unknown gunmen fired at the prime minister's car after he left the parliament building in the eastern city of Tobruk. More

Two years of conflict have left more than 90% of children fearing they will be killed or injured, warns Save the Children More

 

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In Ethiopia, this is a loaded question. It earned me an extra 45-minute wait at airport immigration as officials thumbed through my passport, pawed through my luggage and asked me what my intentions wer

 

 

 
 
Old political tricks, new election 17 May 2015 | Comments (0)

                             Ethiopia prepares for election with ruling party expecting landslide victoryPosted on 22 May 2015

Ethiopian Peoples’ Revolutionary Democratic Front set to win fifth straight vote due largely to the lack of a viable opposition – and their stern response to dissent  More

Posted on 22 May 2015

Susan Helen, a 2nd class teacher at Burrow National School, Sutton, made the symbolic gesture during Christian Aid Week which took place from May 10-16
 More

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Old political tricks, new election 17 May 2015 | Comments (0)

Old political tricks, new election17 May 2015 | Comments (0)

The overall assessment of the televised debate in Ethiopia looks to be following an established trend of criticisms and counter criticisms with less factual presentations and concrete alternatives being offered to the voter public  More

VideoLand Grabs in Ethiopia & The Legacy of Belgian Colonization

TeleSUR's The Global African looks at land theft in Ethiopia & the connection between Belgian colonization and HIV in Congo More

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Benjamin Netanyahu Vows To Fight Racism Against Ethiopian

 

Netanyahu recounted how he had heard from young representatives of the 135,000-strong Ethiopian Israeli community that they were afraid to walk the street because of their skin color.. Read More

 

 
 

TAl-Manar TV reports top ISIS man Abu Malik Anas al-Nashwan has been killed in Syria

 

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Posted on 14 May 2015

Policeman Who Beat Ethiopian Soldier Fired

he beating was one of the catalysts for Ethiopian-Israeli protests against police brutality and racism that turned violent in Jerusalem and Tel Aviv. Ethiopian-Israeli activists had called for the officer’s dismissal.Read more... 

 

Nigeria's Maiduguri under curfew after Boko Haram attack

Posted on 15 May 2015

Streets are deserted with markets, schools and hospitals shut in the densely populated city, reports sayRead more... 

 

 

 

 

Mohammed Idris, a member of the ruling People's Front for Democracy and Justice (PFDJ), had served with Eritrea's diplomatic mission in Addis Ababa for the past five years, has now defected to seek asylum in Ethiopia.Read more... 
የአዲስ አበባ ከተማ ነዋሪዎች በተደጋጋሚና ለረዥም ሰዓታት አንዳንዴም ለቀናት በሚደርሰው የኤሌክትሪክ መቋረጥ መማረራቸውን አስታወቁ ።

 

 

 

Ethiopia to begin exporting renewable energy to neighbouring nations by 2018

Somalia executes two MP assassins

Posted on 15 May 2015

A military court in Mogadishu found them guilty of killing five people, including four members of parliament

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Yonathan Tesfaye, spokesperson for the Blue Party, told The Associated Press on Wednesday that some party members are being beaten, especially in the southern region. He said his party may boycott the elections.

 

Rival military groups battled for control of the Burundi capital on Thursday after a former intelligence chief staged an attempted coup against President Pierre Nkurunziza.

 

While strained of late, relations between Egypt and Ethiopia have taken a positive turn and need to be further bolstered Read more...
 

 

Editors Pick

09 MAY 2015

Defeating the ‘Mother Stealer’ in rural Ethiopia

They called it the Stealer. It came to their homes in this remote part of northern Ethiopia, and claimed the lives of women in childbirth.

Read more... 

 
Emperor Haile Selassie and US President Franklin Roosevelt aboard USS Quincy (CA-71) in the Great Bitter Lake in 1945

Historians, researchers and everyone in between have recorded the life of the last Emperor of Ethiopia, Haile-Selassie I. Zewde Reta, Angelo Del Boca, Ryszard Kapuściński, Harold G. Marcus and Theodore M. Vestal have all chronicled stories of the emperor and his four-decade-long reign.

Read more... 

 

Ethiopian Airlines plans on the transshipment of around 600,000 t of fresh and dry goods per year at the Addis Ababa airport in Ethiopia.

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Italy should issue an apology and compensate Ethiopia for all of its war crimes, in particular for the chemical attack against Ethiopians,' Daniel Jote Mesfin, head of the Ethiopian Patriots' Association, told The AA..

Read more... 

Teddy Fikre vs Barack Obama lawsuit filed
05 MAY 2015

On Wednesday, April 22nd, Theodore (Teddy) Fikre filed a formal lawsuit in the Greenville Civil Courthouse against the Barack Hussein Obama,.

Read more...

Israel's Benjamin Netanyahu embraces Ethiopian Jew victim of videotaped police beating
05 MAY 2015

"I was shocked by the pictures that I saw. We cannot accept this," Mr Netanyahu said, referring to the video, and repeating the message in his tweet. 

Read more...

 

More than 40 people were injured in Tel Aviv when Ethiopian Jews protest against institutionalised racism
05 MAY 2015

demonstrators in the Rabin Square threw stones at law enforcement officers, who waited about 15-20 minutes before using stun grenades and water cannons to disperse the protesters.

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Ethiopian coffee shops sprout up across the US...thanks to Starbucks
03 MAY 2015

Its prices are on par with Starbucks’: the slightly sweet Ethiopian macchiato is a house specialty and sells for $3.50, cappuccinos are $4 and a pound of Buunni’s freshly roasted Ethiopian beans costs $15.

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Malako, who will soon enlist in the IDF, went on to say that "It's clear to me that this incident, like others, only happened because of our skin color, which a lot of people in Israel don't like.

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Letter from Prison

Letter from an Ethiopian prison

Posted on 24 April 2015

Natnael Feleke has been imprisoned for a year without trial. In a letter smuggled out of jail, he asks the US secretary of state to stop supporting the regime

 

 

የሰማያዊ ፓርቲን የገንዘብ ምንጭ ለማወቅ ምርመራ ተጀመረ

በኢትዮጵያ ፖለቲካ አነጋጋሪ ሆኖ ብቅ ያለው ሰማያዊ ፓርቲ ለ2007 ዓ.ም. ምርጫ ይፋ ያደረገው የበጀት መጠን ‹‹ከፍተኛ መሆን››፣ የውጭ ፋይናንሰሮች እጅ አለበት የሚል ጥርጣሬ በማስነሳቱ ምርመራ እየተካሄደ መሆኑ ተጠቆመ፡፡," More

VideoEthiopia: Security vs. privacy

Have you ever noticed how many times we go through security inspections in Addis Ababa per day? I decided to count them but gave up as I was going through security check when I was leaving an institution I had an appointment at.. More

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Ethiopian Jews march in anti-racism protest in Haifa

Israelis of Ethiopian descent hold signs during a protest against police brutality and racism in the northern city of Haifa, Israel May 12, 2015. Read More

 

Years after Adisu Massala left Israel for his ancestral homeland, members of his community are still fighting his old battles

Read more... 

 
Emperor Haile Selassie and US President Franklin Roosevelt aboard USS Quincy (CA-71) in the Great Bitter Lake in 1945

Historians, researchers and everyone in between have recorded the life of the last Emperor of Ethiopia, Haile-Selassie I. Zewde Reta, Angelo Del Boca, Ryszard Kapuściński, Harold G. Marcus and Theodore M. Vestal have all chronicled stories of the emperor and his four-decade-long reign.

Read more... 

 
Years after Adisu Massala left Israel for his ancestral homeland, members of his community are still fighting his old battles
Ethiopian Foreign Ministry expresses concern over 'police brutality' in Israel and 'years of widespread discrimination'.
Protest leaders say charges against those arrested at demonstration should be dropped, ask for improvements in housing, education

 

Opposition critics say May 24 elections will not be free and fair, but the government praises the democratic climate

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West African country has had no new cases for 42 days, twice the maximum incubation period of the deadly disease

 

sing phrases more suited to tourist magazines and images of luxury yachts, smugglers based in Egypt and Turkey openly advertise services on social media

 

MIDROC Ethiopia Technology Group, an umbrella group of 21 companies owned and chaired by Sheikh Mohammed Hussein Ali Al-Amoudi.
 

This year, in United Kingdom Ethiopia Patriots' Victory Day was celebrated on Saturday 02 May 2015. The celebration was in Fairfield House, Bath which was the residence of Haile Selassie I Emperor of Ethiopia at the time, which he was using as his official residency during the five years he spent in exile (1936–41). 

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07 MAy 2015

High-ranking Ethiopian police officer defends cops

 As someone who is part of the organization for many years – as someone who served in various units and functions – it is important to stress that the Israeli Police has prepared me, as it trains all police, to give the best possible service to all citizens.

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Plight of Jews from Ethiopia

“Racial profiling,” the most common practice of over-policing, refers to the use of generalizations based on race, ethnicity, religion or national origin as the basis for suspicion in directing law enforcement. 

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It is the dream of every Palestinian to be of Ethiopian descent for even an hour

A group of 35 Ethiopians who had been held in Libya have arrived in the Ethiopian capital, Addis Ababa.

Read more...

Teddy Fikre vs Barack Obama lawsuit filed

On Wednesday, April 22nd, Theodore (Teddy) Fikre filed a formal lawsuit in the Greenville Civil Courthouse against the Barack Hussein Obama,.

Read more...

Disgruntled members file lawsuit against an Ethiopian Orthodox church in Charlotte, North Carolina

At issue in the lawsuit is whether or not the head of the parish council at Holy Trinity Ethiopian Orthodox Church, Dr. Solomon Gugsa, improperly changed the church's bylaws to extend his term and alter membership requirements to exclude those who disagree with him

Read more...

 
ሚያዝያ 27 የድላችን ቀን
07 MAY 2015

ሚያዝያ 27 የድላችን ቀን​

በቀዳማዊ ኃይለ ሥላሴ ዘመን ከ1934 ዓ.ም. እስከ 1966 ዓ.ም. ድረስ የድሉ በዓል ይከበር የነበረው ሚያዝያ 27 ቀን ሲሆን፣ ከደርግ መንግሥት መምጣት በኋላ በዓሉን ወደ መጋቢት 28 ለውጦት ከወደቀም በኋላ እስከ 1987 ዓ.ም. ሲከበር ኖሯል፡፡

Read more...

 
Israel's Benjamin Netanyahu embraces Ethiopian Jew victim of videotaped police beating

"I was shocked by the pictures that I saw. We cannot accept this," Mr Netanyahu said, referring to the video, and repeating the message in his tweet. 

Read more...

Canon highlights plight of Ethiopian women

Canon Stuart Lloyd trekked through the centre of Ballymena on Friday to raise the profile of Christian Aid Week.

Read more...

101 Ethiopian Medics Jet in to Fight Ebola

The African Union has aided Sierra Leone with 101 Ethiopian medical personnel in the fight against Ebola. The medical team comprises doctors, nurses, pharmacists, epidemiologists, public health officers, and information and communication specialists.

The Crop Challenge

Policy makers have been in a quandary with regard to reducing the loss of crops during the post-harvest season. Recent data indicates that Ethiopia is losing 10pc of its total…

 


 

 

 

 

Nyala Posts Increased Paid-Up Capital

Nyala Insurance Company S.C. (NISCO) has registered a 257pc increase in paid-up capital to 125 million Br. However, their earnings per share (EPS) has gone down to 1,396 Br from…

 


 

 

 

 

Oromia Insurance Paid-Up Capital Grows By 100pc

Oromia Insurance Company S.C.(OIC) has expanded its paid-up capital by 100pc, raising it from 42 million Br to 83.8 million Br, satisfying the minimum paid-up capital set by the National…

 

 

 

 

 

 


CBO Celebrates Tenth Anniversary with 81pc Increase in Profits

The Cooperative Bank of Oromia (CBO) has marked its tenth year existence in the market with a remarkable profit after tax of 344 million Br, showing an increase of 81pc…

 

 

 

 

 


Dilla Intends to Use World Bank Money to Erect Monument

Aproject in Dilla, assisted by the International Development Association (IDA), is facing a setback because of the town administration’s intention to use part of the money for the construction of…

 

 

 

 

 


Habesha Cement Awaits Exploration License

Habesha Cement Factory is expecting to get an exploration license for the mineral called pumice from the Ministry of Mines (MoM) in the next two weeks. It was in May…

 

 

 

 


High Court Upholds Lower Court’s Decision on AACCSA vs United

On November 25, 2014, the Federal High Court decided to uphold the Lower Court’s decision to invalidate the decision at the Addis Abeba Chamber of Commerce & Sectoral Association’s ninth…

 

 

 

 

 


ERCA Puts Hand off Transport Allowance

The Ethiopian Revenues & Customs Authority (ERCA) has increased the taxable levels for transport allowance and per diem saying that the cost of living is higher than it used to…

 

 

 

ERCA’s First Quarter Meeting with Businesses Dominated by Deficiencies at Airport Branch

Airport Brach Office of the Ethiopian Revenues & Customs Authority (ERCA) was mentioned as a source of disappointment for the importers, during the last week’s meeting which the officials of the Authority meet close to 400 businesspeople for a discussion which was taking place in the previous times at Ghion Hotel, the importers mentioned delay in revising the CD price list and using commercial websites as a source of identifying prices for tax valuation as main reasons for the disappointment, reports FASIKA TADESSE, FORTUNE STATF WRITER.

  • News

Central Bank Approves Lion Bank’s New President in a Week

Bank’s Profit nearly doubled in three years to 127m Br as deposit mobilisation reaches 2.7b Br

The central bank has approved Lion International Bank’s (LIB) choice of president, Getachew Solomon, a week after the request submitted to it.

The Lion’s Board of Directors, chaired by Berhanu Gebremedhin, requested the central bank for the approval of its acting president to take the post permanently on October 14, 2014 and get the approval a week later on October 22, 2014, which is said to be the fastest approval the central bank ever gave. Getachew, who was operations vice president, took over the acting president post on September 1, 2014 after Negusu Gebregziabher resigned on August 28, 2014, after four years with the Bank. .

Approving Getachew’s appointment took short because the Bank had presented relevant documents in time, according to Alemayehu Kebede, change management & communications director at the NBE.

“The nominee was also working as a vice president of the Bank so it was easy to know his background,” he added.

Getachew has a BA Degree in accounting from Mekelle University (MU) and obtained his Masters of Business Administration from Greenwich University, England, by specialising in International Business. He has worked in the banking industry for the last 19 years by starting his career with the Commercial Bank of Ethiopia (CBE), rising through the ranks of bank clerk, corporate communication, branch manager and district manager. He has been working as operations vice president for the LIB for the last one year.

Lion was established in October 2006 by 6,392 shareholders with 200 million Br in paid-up and 432 million Br authorised capital, which are now up to 446.8 million Br and 627.8 million Br , respectively. Currently, the Bank has 67 branches, with 870 permanent and 580 temporary employees.

LIB is now the second bank to get its presidential nominee to be accepted by the NBE following Debub Global Bank (DBG), whose new president, Addissu Haba, resigned from Bank of Abyssinia (BoA) to join it. Abyssinia and Berhan International Bank (BIB) are currently managed by acting presidents after their presidents resigned in September.

The Bank’s profit has been growing over the past three years, increasing from a profit after tax of 75.4 million Br, to 111.3 million Br and 127 million Br during the last fiscal year 2013/14. Lion has a deposit of 2.7 billion Br from its 134,500 account holders, and provided a loan of 1.56 billion Br during the last fiscal year.

Getachew becomes the fourth president of Lion following Negussu, who took the presidency in May 2010, following the resignation of Meressa Gebremariam, the Bank’s second president. The first president was Tsegaye Tetemke, who stayed on the job for two years starting from the establishment of the Bank.

“We will assign a new operation vice president soon,” said Getachew.



BY FASIKA TADESSE 
FORTUNE

Ethiopia's GDP Reaches 1.5trillion Birr

The Ministry of Finance and Economic Development has announced that Ethiopia's Gross Domestic Product (GDP) has reached 1.5 trillion birr, and registered an estimated 10.3 percent economic growth last Ethiopian fiscal year (EFY).

Ethiopian expansion for China’s XCMG

Chinese crane manufacturer XCMG has displayed two QY25K-II cranes at an exhibition in Ethiopia, where the company’s cranes are also currently completing the construction of a shopping centre.

At the recent Eleventh International Construction Machinery Exhibition, held at the Ethiopian capital of Addis Ababa, XCMG's local division also showcased its ZL50G loaders, XMR082 rollers, and GR180 and GR215 graders.


XCMG's QY25K-II cranes are currently working on the ENDA shopping centre construction site in the city, one of a number of similar projects launched by the Ethiopian government in recent years. XCMG's cranes are also being used on the National Grid Project in the country, initiated following rapid growth of the national economy.

The Chinese manufacturer, meanwhile, has also adapted its QY25KS truck crane for arctic conditions. The crane has passed Russian OTTC certification and is suitable for operation in temperatures down to -40°C

Business News: Ethiopia awards road construction projects

The Ethiopian Roads Authority (ERA) has awarded US$1107 million of road construction projects to China Hunan Hunda Road & Bridge Construction and Spanish company UTE Elsamex.

UTE Elsamex will upgrade 63.3 kilometres of gravel road to asphalt concrete; the total cost of US$60 million will be covered by a loan from the International Development Association (IDA) of the World Bank (WB).

The project will also include three bridges 10 to 30 metres high, 35 drainage systems and other structural works and is expected to be completed within three years.

Lion Bank Profits Decline as Expenses Soar Higher

The bank’s profits decline 13.3pc as expenses mount with its rapidly expanding branch network

 

 

In a year marked by a nearly 40pc branch expansion, Lion International Bank (LIB) reported earnings of 96.5 million Br for 2013/14, down from the 111.3 million Br after taxes it had registered the previous year.

After further deductions of 24 million Br and 27.8 million respectively for legal provisions, the bank’s profit in both years were 72.4 million Br and 83.4 million Br according to financial statements released at the bank’s general assembly on October 25, 2014.

The latest report showed that the bank’s income grew at 15pc to 342 million Br last year, a far lower rate of increase than the 47pc growth in expenses to Br 214.85 million. LIB’s earnings per share also declined by 25pc to 5.90 Br (the par value of the bank’s shares is 25 Br).

The bank saw a decline in earnings and profits “because of the faster than expected expansion of our branch network, as well as associated building rental costs and employee expenses” said the Bank’s President Getachew Solomon. “The new branches are not expected to be immediately profitable, but deposits from these branches did run at 215 million Br.”

The bank has opened 17 branches, whereas its original plan was for 10 to 12 new branches. With eight more branches opened in the first quarter of the 2014/15 fiscal year, the bank now has 68 branches, with seven more branches scheduled for openingin the remainder of this year.

The bank has seen a 24pc increase in interest income as proceeds from loans & cash advances, timed deposits, treasury bills & NBE bills increased from 169 million Br in 2012/13 to 209 million Br in 2013/14. On the other hand, says Abdulmena Mohammed Hamza, an analyst working as an account manager at Portobello Ltd., income from foreign exchange dealings have declined by 13 pc to 24.34 million Br, while income from commission & service charges has dropped by eight percent to 56.12 million Br.

Getachew attributed the drop in forex earnings to “inefficient export performance of the country, which undermined foreign currency earnings.” “The bank has faced difficulties securing its fair share of income from foreign exchange dealings,” Abdulmena says.

“With the exception of a slight increase last year, income from this area of business has been in constant decline over the past three years. The bank needs to design strategies to reverse this trend,” he said.

LIB’s expense growth has been highly disproportionate to the bank’s income. Interest paid out on deposits has increased by 33pc to 73.95 million Br while salaries and benefits of bank employees have seen growth of 52pc to 71.33 million Br.

Abdulmena suggests that “as far as the expansion in general administration and employee-related expenses are concerning, the bank’s management should investigate the areas that are costing the bank without generating proportionate income and take rectification measures”.

The Bank has identified so-called controllable and uncontrollable expenses, and has employed a monetary evaluation system to take control of its expenses, according to Getachew. Uncontrollable expenses include salaries and building rental costs, but the bank tries to control such expenses as telephone usage, overtime, and the usage of bank stationary, according to the president

“We evaluate our expenses every month by controlling these elements,” he said

LIB’s assets have increased by 23pc to 3.61 billion in the past year. Loan disbursements and cash advances have grown by 18pc to 1.54 billion Br. The bank has invested 2.67 billion Br in the National Bank of Ethiopia’s five-year bonds, representing 20pc of the bank’s total assets.

“There is some room for increasing the bank’s loan-to-deposit ratio to last year’s levels. If Lion attempts too much of an increase it will risk a liquidity squeeze as its investment in NBE bonds builds up,” observes Abdulmena.

The bank’s liquidity rates have all seen a rise over the past year, with the rate of liquid assets to total assets rising from 27.2pc to 31pc, the rate of liquid assets to deposits rising from 38pc to 42pc, and the rate of liquid assets to total liabilities having increased from 32pc to 36.7pc.

LIB’s deposits in foreign banks have decreased from 171.45 million Br to 74.02 million Br.

Abdulmena stated that the “building up of liquidity has deprived Lion of some income that should have been brought in from a more productive use of resources; the management of Lion needs to drain out some of its liquidity and use those liquid assets to generate income”.

The bank plans to reduce its liquid assets by generating more loans,according to LIB’s president.

The paid-up capital of the bank has grown by 19pc to Br 446.83 mln. The bank has also managed to have a capital adequacy ratio (i.e. total capital divided by adjusted assets) of 35pc. Adjusted assets are the total assets of the bank minus uncertain amounts like bad loans.

“Lion is a well-capitalized bank. It can easily comply with the NBE directive that compels banks to have a paid-up capital of 500 million Br by 2016 by increasing its paid-up capital by six per cent per annum,” says Abdulmena.

“Our profit has decreased compared to the previous year but we are not disappointed by this as the sector is competitive and there is hope for an increase in the next year as the new branches will make profits,” says Kiros Abreha, a shareholder of the Bank.

The bank expects to make a Br 233 mln profit before taxes with deposits doubling to 1.1 billion Br for the 2014/15 fiscal year.



BY JEMAL ABDU 
FORTUNE
Ethiopian Tribune's photo.
 
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