Latest news with #AhmedShide
Reuters
7 hours ago
- Business
- Reuters
Ethiopia forecasts faster growth next fiscal year
ADDIS ABABA, June 10 (Reuters) - Ethiopia's economy is forecast to grow slightly faster in the fiscal year that starts next month, while its budget deficit will increase marginally, its finance minister said on Tuesday. The East African nation is implementing far-reaching economic reforms, backed by an International Monetary Fund loan programme. Finance Minister Ahmed Shide told parliament that the economy was forecast to expand 8.9% in fiscal year that runs from July 8 2025 to July 7 2026, up from an estimated 8.4% in the current fiscal year. A budget deficit of 2.2% of gross domestic product (GDP) is expected versus 2.1% of GDP this fiscal year, while overall spending will be about 1.9 trillion birr ($14 billion) next year, he said. Despite being one of the fastest-growing countries in the region in recent years, Ethiopia's economy was held back by a devastating two-year war in the northern Tigray region. ($1 = 134.4212 birr)
Yahoo
16-05-2025
- Business
- Yahoo
Ethiopia secures more than $1.6bn in minerals and energy investment deals
The Ethiopian Finance Ministry has announced the signing of five major investment deals, worth more than $1.6bn (214.99bn birr), to bolster the country's minerals and energy sectors. These agreements, predominantly with Chinese companies, are part of Ethiopia's economic reform strategy. The deals were secured during the two-day Ethiopia High-Level Business Forum 2025 held in Addis Ababa. Among the investments are a $500m commitment from Huawei Mining Processing Company for minerals exploration and processing, and the establishment of a specialised economic zone. Sequa Mining and Processing, a joint venture between Ethiopian and Chinese companies, has pledged $600m to advance coal mining projects within the country. Minister of Finance of the Federal Democratic Republic of Ethiopia Ahmed Shide reiterated the government's commitment to creating a supportive environment for private sector growth, maintaining macroeconomic stability and implementing comprehensive reforms, including the newly introduced Macro Reform Programme. Shide said: "There has never been a more opportune moment to invest in our nation." He highlighted that investment is crucial for achieving shared objectives of resilience, inclusive prosperity and sustainable development. The Ethiopian Finance Ministry also signed deals with Hanergy New Energy Technology Company, which plans to invest $360m in constructing a solar cell manufacturing facility. An additional $250m will be invested by Sesar Energy Advancing Solutions for solar energy development, while Toyo Solar Manufacturing Development plans to invest $14m (Y2.04bn) in solar cell capacity. The Finance Ministry has not specified a timeline for the inflow of these funds into Ethiopia. This influx of capital is set to play a key role in the nation's extensive reform initiatives, which include liberalising its currency and working towards an $8.4bn debt restructuring with its official creditors, following a $3.4bn programme deal with the International Monetary Fund in July, reported Reuters. In May 2024, Gold and copper exploration company KEFI launched the Tulu Kapi Gold project in western Ethiopia. "Ethiopia secures more than $1.6bn in minerals and energy investment deals" was originally created and published by Power Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
16-05-2025
- Business
- Yahoo
Ethiopia secures more than $1.6bn in mining and energy investment deals
The Ethiopian Finance Ministry has announced the signing of five major investment deals, worth more than $1.6bn (214.99bn birr), to bolster the country's minerals and energy sectors. These agreements, predominantly with Chinese companies, are part of Ethiopia's economic reform strategy. The deals were secured during the two-day Ethiopia High-Level Business Forum 2025 held in Addis Ababa. Among the investments are a $500m commitment from Huawei Mining Processing Company for minerals exploration and processing, and the establishment of a specialised economic zone. Sequa Mining and Processing, a joint venture between Ethiopian and Chinese companies, has pledged $600m to advance coal mining projects within the country. Minister of Finance of the Federal Democratic Republic of Ethiopia Ahmed Shide reiterated the government's commitment to creating a supportive environment for private sector growth, maintaining macroeconomic stability and implementing comprehensive reforms, including the newly introduced Macro Reform Programme. Shide said: "There has never been a more opportune moment to invest in our nation." He highlighted that investment is crucial for achieving shared objectives of resilience, inclusive prosperity and sustainable development. The Ethiopian Finance Ministry also signed deals with Hanergy New Energy Technology Company, which plans to invest $360m in constructing a solar cell manufacturing facility. An additional $250m will be invested by Sesar Energy Advancing Solutions for solar energy development, while Toyo Solar Manufacturing Development plans to invest $14m (Y2.04bn) in solar cell capacity. The Finance Ministry has not specified a timeline for the inflow of these funds into Ethiopia. This influx of capital is set to play a key role in the nation's extensive reform initiatives, which include liberalising its currency and working towards an $8.4bn debt restructuring with its official creditors, following a $3.4bn programme deal with the International Monetary Fund in July, reported Reuters. In May 2024, Gold and copper exploration company KEFI launched the Tulu Kapi Gold project in western Ethiopia. "Ethiopia secures more than $1.6bn in mining and energy investment deals" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
13-05-2025
- Business
- Bloomberg
Chinese Firms to Invest $1.75 Billion in Ethiopia Mining, Solar
Ethiopia expects five Chinese companies to invest a total of $1.75 billion in the East African nation, mainly in solar-cell manufacturing and mineral exploration, according to Finance Minister Ahmed Shide. Shanghai-listed CSI Solar Co., in which Canadian Solar Inc holds a majority stake, will spend $250 million on a plant producing solar modules and energy-storage products, while Sequoia Mining & Processing Plc plans to invest $600 million in coal exploration.
Zawya
19-02-2025
- Business
- Zawya
Ethiopia signs memorandum of understanding with ATIDI to support PPP renewable energy projects
Addis Ababa, Ethiopia: The Federal Democratic Republic of Ethiopia, represented by the Ministry of Finance and Ethiopian Electric Power (EEP), has signed a Memorandum of Understanding (MoU) with the African Trade Insurance Agency (ATIDI), a leading pan-African multilateral trade and investment insurer. This milestone agreement is designed to accelerate Ethiopia's transition to clean energy by attracting foreign investment into renewable energy projects through ATIDI's Regional Liquidity Support Facility (RLSF). The MoU establishes a framework for collaboration between Ethiopia and ATIDI, ensuring that Independent Power Producers (IPPs) or Public Private Partnerships can leverage RLSF, a liquidity support mechanism developed by ATIDI in partnership with KfW Development Bank and Norad. RLSF provides financial protection to IPPs/PPPs by availing and accelerating payments owed by state-owned utilities, addressing a key challenge in the energy sector by enhancing payment security and financial stability. In his key message H.E. Ahmed Shide, Ethiopia's Minister of Finance, said 'through this partnership, Ethiopia aims to facilitate timely payments to developers, mitigate financial risks, strengthen the bankability of power purchase agreements (PPAs), and enhance the creditworthiness of EEP'. His Excellency further strengthened his message by stating that 'these efforts will create a more attractive investment environment for renewable energy projects'. Ethiopia becomes the 11th ATIDI member state to sign the RLSF MoU joining Benin, Burundi, Côte d'Ivoire, Ghana, Kenya, Madagascar, Malawi, Togo, Uganda and Zambia. Since its inception, guarantees worth USD24.7 million have been approved under the RLSF portfolio; in turn facilitating investments totaling USD373.1 million and the development of 181.95 MW of installed renewable energy capacity across Africa. Ethiopia has made significant strides in expanding its energy sector, primarily relying on hydropower as the backbone of its electricity generation. The Ethiopian government aims to diversify this energy mix by leveraging its vast renewable resources including wind, solar, and geothermal energy to enhance reliability and sustainability. This collaboration marks a significant step towards a more resilient and investor-friendly renewable energy landscape in Ethiopia. With ATIDI's support, the country is poised to achieve its energy transition goals while ensuring financial stability for its power sector stakeholders. Quote from Manuel Moses, CEO, ATIDI "We are honored to partner with the Government of Ethiopia and Ethiopian Electric Power to support the development of the country's renewable energy sector. Through our liquidity support, this collaboration will not only reduce financial risks but also attract more investment into Ethiopia's energy infrastructure. We believe that this partnership will help accelerate the growth of Ethiopia's renewable energy capacity and contribute to the broader goal of sustainable development across the African continent." H.E Minister Ahmed Shide, Minister of Finance, Federal Democratic Republic of Ethiopia 'Ethiopia has embarked on a comprehensive economic reform agenda known as the Homegrown Economic Reform Agenda (1&2). This initiative aims to address structural challenges and promote sustainable economic growth. The key aspects of the reform are creating Macroeconomic Stability; Investment and Trade. Efforts are being made to enhance the investment climate and promote trade by simplifying regulations, improving infrastructure, and encouraging private sector participation. The Regional Liquidity Support Facility (RLSF) is expected to play great role by enhancing the bankability of PPP projects and the sustainable implementation of such projects. The reform also aims to boost productivity in key sectors such as agriculture, manufacturing, and services to drive economic growth and create jobs. Investment Attraction too focuses on creating improved investment climate that has already attracted foreign direct investment, particularly in sectors like energy, manufacturing, and agriculture. We look forward to expanding this positive collaboration with ATIDI to cover additional sectors other than energy.' About ATIDI ATIDI was founded in 2001 by African States to cover trade and investment risks of companies doing business in Africa. ATIDI predominantly provides Political Risk, Credit Insurance and, Surety Insurance. Since inception, ATIDI has supported USD85 billion worth of investments and trade into Africa. For over a decade, ATIDI has maintained an 'A/Stable' rating for Financial Strength and Counterparty Credit by Standard & Poor's (S&P), and in 2019, ATIDI obtained an A3/Stable rating from Moody's, which has now been revised to A3/Positive. More about ATIDI: Media registration link: About the Regional Liquidity Support Facility (RLSF) RLSF is a guarantee instrument provided by ATIDI to renewable energy Independent Power Producers (IPPs) that sell the electricity generated by their projects to state-owned power utilities, located in ATIDI member states that have signed the RLSF Memorandum of Understanding. RLSF was launched in 2017 by ATIDI and the German Development Bank, KfW, with financing from the German Federal Ministry for Economic Cooperation and Development (BMZ); in 2022, the Norwegian Agency for Development Cooperation (Norad) committed additional funding towards its continued implementation. RLSF has a capacity of USD153.7 million and supports small and mid-scale renewable energy projects with an installed capacity of up to 100 MW (larger projects can be considered on a case-by-case basis) by protecting the projects against the risk of delayed payments by public offtakers; in turn improving project bankability and ensuring that more projects reach financial close.
