Five Big Stories Vol. 25, No. 1285

Property Tax Plan Spurs Battle Over Costs, Equity, Economic Survival

Parliamentarians are debating a new property tax bill aimed at boosting government revenue and strengthening local finances. The bill proposes shifting tax authority to regional and municipal levels, with tax rates set within a federally mandated range. Significant opposition from various sectors, including pharmaceutical manufacturers and real estate developers, displaying concerns about economic strain and potential unfairness. The government accentuates the need for increased revenue to fund infrastructure though challenges remain regarding property valuation, documentation, and equitable implementation, particularly concerning vulnerable populations.

After Billions Poured, the Fields Stay Parched, Minister Admits

The Ministry of Irrigation & Lowlands faces an uphill task due to massive cost overruns and delays in numerous irrigation projects. [Poor planning, inadequate feasibility studies, and a lack of national standards are to blame, leading to suspended projects and millions of dollars wasted.] The Minister is requesting a substantial budget increase to revise existing projects and implement new standards, aiming to improve efficiency and finally deliver on the promise of irrigation-based food security amidst severe drought and widespread food insecurity. The success of this plan hinges on improved project management, timely compensation for displaced farmers, and the cooperation of regional states, according to the minister.

Coffee Actors Enthused, Anxious Over Record Price Surge

International coffee prices surged to a 47-year high, primarily due to decreased production in major exporting countries like Vietnam and Brazil caused by adverse weather conditions. While this benefits some Ethiopian exporters and farmers who see increased profit margins and higher demand, others express concerns about market volatility, lack of access to financing, and potential buyer hesitation at the elevated prices. The government anticipates significant revenue growth from coffee exports, but challenges remain regarding efficient export processes and ensuring fair prices for farmers. Despite the optimistic outlook for some, uncertainty persists about the long-term sustainability of these high prices.

Draft Law Targets Lead-Acid Battery Risks, Tightens Regulations

Ethiopia faces a serious lead poisoning crisis, stemming from widespread lead contamination in everyday items and improper waste disposal. A stalled EPA directive aims to address this, implementing stricter regulations on lead-acid batteries and promoting responsible recycling through an Extended Producer Responsibility (EPR) system. The delay exposes a lack of government prioritization, despite significant health and economic consequences, including high childhood lead exposure and substantial financial losses. Multiple stakeholders, including the Ministry of Health, EPA, and various NGOs, are working to raise awareness and implement solutions, but progress is hampered by bureaucratic delays and a lack of resources. The new regulations and partnerships aim to reduce lead exposure and ultimately eliminate childhood lead poisoning by 2040.

Awash Bank Flows Steady against Industry Currents

Awash Bank's 2023/24 financial report reveals strong performance despite economic challenges, showcasing significant growth in assets, deposits, and profits. Key factors contributing to this success include a substantial capital increase, disciplined lending, and diversified revenue streams. While expenses also rose significantly, the bank maintains above-average profitability and EPS, exceeding industry benchmarks. Future strategies focus on technological advancements, branch expansion, and optimizing cost while prioritizing staff development to achieve its ambitious goals. Analysts view Awash Bank's performance as impressive given the current economic climate.