NBE modifies freight payments rules for the ESLSE to receive half of the freight fees in ETB.

April 1, 2022

The National Bank of Ethiopia modifies freight payments rules for the Ethiopian Shipping and Logistic Services Enterprise to receive half of the freight fees in ETB at the end of each month. Currently, commercial banks cannot pay the 7.8 billion ETB (150 million USD) they owe to the shipping company. In addition, the shipping enterprise has its rental and other fees in debt, adding up to about 100 million USD.

Ethiopia’s foreign exchange reserve has dropped to less than 2 billion USD, which can only cover less than two-month imports. Due to the COVID-19 pandemic, the shipping enterprise quadrupled its freight charges in the past year. This has increased the cost of shipping a 40 feet container from China’s port, Ethiopia’s largest trading partner, to almost 13,000 dollars.

The new rule eases banks’ struggle with forex mobilization following NBE’s retention rules of forgoing 70% of foreign earnings from exports, remittances, and transfers to NGOs. The adjustment aims to increase Ethiopia’s foreign currency reserves, which are currently unable to pay import & external debt fees. This reduces the stress on banks and importers and gives them more time to pay off their debt. This modification applies to all imports except wheat, sugar, coal, and fertilizer, the government’s main imports.

You May Also Like…

Dinaw Mengestu

Dinaw Mengestu

All Our Names (Knopf, 2014), How To Read the Air (Riverhead, 2010), and The Beautiful Things That Heaven Bears (Riverhead, 2010) are Dinaw Mengestu's three books, all of which were named New York Times Notable Books (Riverhead, 2007). Mengestu is an Ethiopian native...

UN Women launches its third Strategic Plan in Uganda

UN Women launches its third Strategic Plan in Uganda

UN Women is an international organization that focuses on ending violence against women and girls (VAWG) and creating Gender Equality & Women Empowerment. It collaborates with several local & international organizations and private & government sectors to...

Tsion Haileselassie – Photographer

Tsion Haileselassie – Photographer

As young professionals in the creative industry, it is usual to see people exploring their talents and their true passions through time, regardless of what they have learned in the past few years. Some people stop learning, some do it while learning and others do it...

Ethiopia releases the Online Trade Registration and Licensing System

Ethiopia releases the Online Trade Registration and Licensing System

Ethiopia’s Ministry of Trade and Regional Integration launched the Online Trade Registration and Licensing System (OTRLS) to provide several benefits, such as reducing physical registration, saving time, and avoiding confusion with its detailed information for each...