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.
c) The policy mandates the implementation of directives to enable foreign investments in Ethiopia’s banking sector.
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
