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Aug 11 6 tweets 3 min read
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🚨#Ethiopia: 𝗪𝗕 𝗰𝗼𝗻𝗱𝗶𝘁𝗶𝗼𝗻𝗮𝗹𝗶𝘁𝗶𝗲𝘀 𝗮𝗻𝗱 𝗸𝗲𝘆 𝘁𝗮𝗿𝗴𝗲𝘁𝘀:

𝗦𝘂𝗺𝗺𝗮𝗿𝘆:

a) Ethio-Telecom’s 40 % stake is set to be privatized in 2025.

b) the targeted 205% VAT increase and 290% electricity price spike are punitive austerity measures that will exacerbate the already crushing cost of living, resulting in a combined additional financial burden of over $4 billion on the public by 2027.

• ∑ [𝟮(𝟭) + 𝟮(𝟱), (2023)] = $2.1 billion USD
• ∑ [𝟮(𝟭) + 𝟮(𝟱), (2027)] = $6.4 billion USD

c) The policy mandates the implementation of directives to enable foreign investments in Ethiopia’s banking sector.Image 𝗣𝗶𝗹𝗮𝗿 𝟭: 𝗔𝗱𝘃𝗮𝗻𝗰𝗲 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝘀𝗲𝗰𝘁𝗼𝗿 𝗿𝗲𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗶𝗻𝗴 𝗮𝗻𝗱 𝘁𝗿𝗮𝗱𝗲 𝗹𝗶𝗯𝗲𝗿𝗮𝗹𝗶𝘇𝗮𝘁𝗶𝗼𝗻:

1- Commercial banks lending to private sector as a % of total banking sector assets:
• Baseline (2023): 45% (CBE: 20%)
• Target (2027): 55% (CBE: 30%)

2- Compliance of CBE with Basel Core Principles:
• Baseline (2023): Not compliant.
• Target (2027): 30% CBE board to be independent.

3- NBE capital adequacy vs Basel Core Principles: attain 8% (currently 14.7%).

4- Total volume of agricultural exports (MT/ year):
• Baseline (2023): 1.2 million MT/year
• Target (2027): 1.6 million MT/year