ETHIOPIA: Shootout in Metekel & more – 16th Jan 2025

Salaam salaam from BA! This is the Rorshok Ethiopia Update from the 16th of January twenty twenty-five. A quick summary of what's going down in Ethiopia.

Tragic news from western Ethiopia as a shootout between Shenie militants and militias claimed lives in the Metekel Zone of the Benishangul-Gumuz region. Conflict ensued after Shenie militants of the Oromo Liberation Army (or OLA) - who are against the government - traveled over thirty kilometers or eighteen miles, to rob a Commercial Bank branch. The militia successfully managed to defend the bank and didn’t suffer casualties. However, three OLA militants and at least one civilian were killed. In their retreat, militants also robbed cellphones and other goods on their way back.

Those familiar with the issue have said that although the area enjoyed relative stability for a while, recently, security issues have cropped back up. Apart from the OLA’s attacks, they explained that the militants aren’t happy that Midroc, an investment group, is going to start mining gold in the area soon since the Benishangul-Gumuz is rich in gold deposits. Militants make money off of trading gold illegally and they think that the group’s business will adversely affect their trade.

OLA, along with Fano from the Amhara region, in the north-central part of the country, have been a headache for the government, whose efforts to uproot the militants have failed so far. Peace talks with these groups have also fallen apart.

Amid the current situation, Irvin Massinga, the US ambassador in Ethiopia, said on Monday the 13th, that the US is committed and ready to support peace talks between the government and rebels in the Oromia and Amhara region. He also called on rebels to protect civilians, respect human rights, and prepare for negotiations. Aside from the conflicts, he addressed the longstanding relationship between the US and Ethiopia, business relationships and aid.

He called on all involved to ensure that the civic landscape is preserved and that media outlets operate freely, worried about recent government measures against civil society organizations.

More on foreign affairs as Hassan Sheikh Mohammed, Somalia’s president, went to Ethiopia’s capital Addis Ababa on a work trip on Saturday the 11th. Prime Minister Abiy Ahmed welcomed him at the National Palace where they agreed to reinstate full diplomatic representations in their capitals. Recall that the two countries' relationship got severely strained after Ethiopia struck an agreement with Somaliland, a breakaway region in Somalia, whose government doesn’t recognize it, for a sea outlet. A year after this development, however, Turkey brokered a deal between Ethiopia and Somalia, ending their strife.

Aside from building on this deal, President Hassan’s trip to Addis resulted in an agreement to instruct their respective security agencies to bolster cooperation in promoting peace and stability.

In local news, the House of People’s Representatives finally approved the draft property tax bill when it gathered on Tuesday the 14th. Even though the bill passed with a very significant majority some members expressed their concerns that the levy would fuel public dissent as residents were being asked to pay more in taxes and fees. The draft bill only exempts a select few properties from tax, and most homeowners will be forced to pay.

They also criticized the government saying that it does not plan to build more homes using the revenue from the levy, but is rather focused on completing a corridor development project, an initiative to beautify cities and fix traffic congestion.

On the other hand, the government representative, who is a member of the executive branch and represents the executive in the legislature, said that the property tax bill would help the government address wealth inequalities.

But it is not clear if real estate companies believe that the new property tax bill will dissuade homebuyers. Why? Because real estate company Ovid revealed plans to build and deliver a hundred and twenty-thousand housing units in the next five years. The company has even named its plan as the Vision twenty thirty strategy. The majority of these units, ninety-thousand, to be exact, will be built in the peripheries of the capital and the other thirty-thousand in various sites.

The company expects costs to run to almost half a trillion birr, which is four billion US dollars. The company’s head expressed optimism as he mentioned that it is estimated at least six hundred thousand families are looking to buy a house. Ovid also announced that it will be providing creative financial solutions for buyers to afford housing.

Big news in business as the Ethiopian Securities Exchange or ESX, the country’s first-ever stock exchange, was inaugurated on Friday the 10th. Prime Minister Abiy Ahmed attended the launch; he rang the bell, signaling that the Exchange was officially open for business. The PM expressed optimism over this development, dubbing it a historic milestone for the country’s economic and financial landscape. The ESX is set to operate in three market segments: equity market, fixed income market, and money market.

Ethio Telecom initially planned to list its shares in the ESX but because the ESX launch kept getting postponed, it began selling shares via its own platform, Telebirr, three months ago. The company said at the time that its offering was limited until the 3rd of January, twenty twenty-five. However, it revealed that it has extended the purchase deadline to the 14th of February, twenty twenty-five.

Ethio Telecom originally offered ten percent of its shares at a value of thirty billion birr, which is two hundred and forty million US dollars. The company didn’t explain why it decided to push the deadline. Recall that, although experts weren’t necessarily against the offering, they did express their doubts that shares were gonna sell out quickly because the company was overvalued. It seems like the company had a hard time finding buyers at that price, with many guessing that this is the reason behind the postponement.

In other news, The Petroleum and Energy Authority sent a letter on Thursday the 9th informing gas retailers and Ethio Telecom that Telebirr and other mobile banking agents working at gas stations that streamline the digital payment process are no longer allowed to work in and around retail gas stations. The Authority warned that it would take measures against those who do not comply with this order. It explained that customers will have to make payments via their own accounts because this will enable the government to monitor purchases and ensure that purchases and distributions remain stable.

Recall that the government mandated that all gas purchases be made using digital payment solutions a year and a half ago. Since then, Ethio Telecom’s Telebirr is by far the most used payment solution.

The saga surrounding the Addis Chamber of Commerce election continues as the Federal First Instance Court’s trade and investment bench passed an injunction ordering the cancellation of the election the Chamber scheduled for Saturday the 11th. The Court passed this injunction as part of a suit that a Chamber member brought against the Chamber and its Chairwoman.

The suing member accused the Chamber and its Chairwoman of having wrongly removed him from his post and forced him to drop out of the race in the election for the Chamber’s next chairperson. The Court encouraged litigants to consider mediation and appear before it this week to choose a mediation center. The Court further ruled that if they don’t choose the mediation path, the trial will be in two weeks on Friday the 31st of January and that they can argue their cases before the Court then.

And to wrap up this edition, China’s tech company Huawei announced that Ethiopian computer science student Asiya Kelifa will be one of the twelve ambassadors of its Seeds for the Future Program, the company’s major corporate social responsibility program. It is part of Huawei’s efforts to cultivate and empower young, talented individuals and boost their skills in digital tech and innovation. It includes training, competitions, and alumni activities. Aliya was chosen as the Program’s global ambassador following her successful participation in its twenty twenty-four edition.

And that's it for this week!

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Ciao!