National Bank of Ethiopia...2016/17 1.29 109.20 2017/18 1.27 115.20 Growth rate -1.6 5.5 Source: Ethiopian Roads Authority 22 2017/18 Annual Report NATIONAL BANK OF ETHIOPIA 1.5.3

i

National Bank of Ethiopia

Prepared by: Domestic Economic Analysis and Publication Directorate National Bank of Ethiopia

Contact Address: P.O. Box 5550 Tel. (00251) 115 51 74 30 Tel. (00251) 115 51 45 88 Email: nbe.excd@ethionet .et Website: http//www.nbe.gov.et Addis Ababa, Ethiopia

Telegraphic Address: NATIONAL BANK, TELEX21020, CODES USED PETERSON 3rd & 4th ED BENTELY 2ND PHRAS A.B.C....6TH EDITION

This Publication can be acquired by subscription or exchange Please Contact:National Bank of EthiopiaDEAPDP.O.Box 5550

Tel. (00251) 115 51 17 25 Addis Ababa

2017/18Annual Report


ii 2017/18 Annual

Report

Currency and Time

Cureency Currency Unit: Birr (Br) Exchange Rate: Look at page 68

Time Fiscal Year: July 8th to July 7th Coffee Year: October to September Calendar Year: September 11 to September 10

** There is a difference of about 73/4 years between the Gergorian and the Ethiopian Calendar

iii

NBE BOARD OF DIRECTORS

EXCUTIVE MANAGEMENT MEMBERS

H.E. Dr. Yinager Dessie (Chairman)

H.E. Dr. Yinager Dessie (Chairman)

H.E. Mr. Gebreyesus Guntie(Member & Secretary)

Mr. Gebreyesus Gunte (Member & Secretary)H.E Mr. Tekelewold Atnafu

(Member)

H.E. Mr. Ahmed Shide (Member)

H.E. Dr. Eyob Tekalign (Member)

H.E. Ambassador Girma Birru (Chairman)

Mr. Abate MitikuMember

H .E. Mr. Solomon Desta(Vice Governor Financial

institution cluster)

H.E Mr. Eyob G-Eyesus (Vice Governor-Corporate

Service Cluster)

H.E . Mr. Fikadu Digafie (Vice Governor & cheif Economist

Monetary Stability Cluster)


Report

iv 2017/18 Annual Report

NBE SENIOR MANAGEMENT MEMBERS

Mr. Befekadu Gashaw (Director, Economic Modeling

and Statistical Analysis Directorate)

Mr. Frezer Ayalew (Director, Microfinance Institutions

Supervision Directorate)

Mr. Dagne Bolola(A- Director,Ethiopian Institute of

Financial Studies)

Mr. Muluneh Ayalew (Director, Monetary and Financial

Analysis Directorate)

Ms. Yenehassab Tadesse (Director, Foreign Exchange

Monitoring and Reserve Management Directorate)

. ( External Ecnomic Analysis and International Relation

Directorate )

Mr. Gobena Worana (D-Director, Bank Supervision

Directorate)

Mr. Fitsum Tsehaye (Director, Domestic Economic

Analysis and Publication Directorate)

H.E. Dr. Yinager Dessie (Governor and Chairman)

H.E. Mr. Gebreyesus Guntie(Senior Advisor to Governors)

H .E. Mr. Solomon Desta(Vice Governor Financial

institution cluster)

H.E Mr. Eyob G-Eyesus (Vice Governor-Corporate

Service Cluster)

H.E . Mr. Fikadu Digafie (Vice Governor & cheif Economist

-Monetary Stability Cluster)

v

NBE SENIOR MANAGEMENT MEMBERS

Mr. Kassahun Yohanes (A-Director, Enginering, Transport and

Service Managment Directorate)

Mr. Belay Tulu (Director, Insurance Supervision

Directorate)

Mr. Abate Mitiku (Director, Change Management ,

Planning and Communication Directorate)

Mr. Abebe Senbete (Director, Currency Management

Directorate)

Mr. Wondimeneh Asrat (Director, Internal Audit and

Risk Management Directorate)

Ms. Workabeba Bahiru (Director, Human Resource Management Directorate)

Mr. Getachew Sisay (Director, Corporate & Finance Directorate)

Mr. Nigusse Aklog (Director, Procurment and Service

Management Directorate)

Mr. Temesegen Zeleke (Head, Financial Inclusion

Technical Secretariat)

Mrs Kibre Moges (Director, Legal Services

Directorate)

Ms. Martha Hailemariam (Director, payment & Settlement

System Directorate

Mr. Wondewosen Tsegaw (Director, Information System

Management Directorate)

Report

TABLE OF CONTENT

ETHIOPIA: MACROECONOMIC AND SOCIAL INDICATORS .......................................................IX

GOVERNER NOTE ...........................................................................................................................1

I.THE OVERALL ECONOMIC PERFORMANCE ................................................................................ 5

1.1. Economic Growth ...................................................................................................... 5

1.2. MGDP by Expenditure Components ....................................................................... 11

1.3 Micro and Small-Scale Enterprises .............................................................................. 13

1.4. Access to Water Supply .............................................................................................. 16

1.5 Road Sector Development ........................................................................................... 19

1.7. Telecommunication ..................................................................................................... 24

II. ENERGY PRODUCTION ..............................................................................................................29

2.1. Electric Power Generation ......................................................................................... 29

2.2. Volume and Value of Petroleum Imports ................................................................ 31

III. PRICE DEVELOPMENTS .............................................................................................................35

3.1. Developments in National CPI .................................................................................. 35

3.2. Consumer Price Developments in Regional States ................................................. 37

IV. MONETARY AND FINANCIAL DEVELOPMENTS .......................................................................41

4.1. Monetary Developments and Policy ......................................................................... 41

4.1.1. Developments in Monetary Aggregates .................................................... 41

4.1.2. Developments in Reserve Money and Monetary Ratios ........................... 44

4.2. Developments in Interest Rate ................................................................................... 45

4.3. Developments in Financial Sector ............................................................................. 48

4.3.1. Resource Mobilization ................................................................................... 52

4.3.2. New Lending Activities .................................................................................. 55

4.3.3. Outstanding Loans ......................................................................................... 56

4.4. Financial Activities of NBE ........................................................................................... 58

4.5 Developments in Financial Markets ........................................................................... 59

4.5.1. Treasury Bills Market ........................................................................................ 59

4.5.2 NBE Bill Market ................................................................................................. 61

4.5.3.Bonds Market ................................................................................................... 61

4.5.4. Inter-bank Money Market ............................................................................. 63

vi 2017/18 Annual

V. DEVELOPMENTS IN EXTERNAL SECTOR .....................................................................................65

5.1 Overall Balance of Payments ...................................................................................... 65

5.2. Developments in Merchandise Trade ....................................................................... 68

5.2.1 Balance of Trade ............................................................................................ 68

5.2.2 Merchandise Export ....................................................................................... 68

5.2.3. Import of Goods ............................................................................................. 74

5.2.4 Direction of Trade ........................................................................................... 75

5.3 Services and Transfers .................................................................................................. 78

5.3.1 Services ............................................................................................................ 78

5.3.2 Unrequited Transfers ...................................................................................... 79

5.4. Current Account ......................................................................................................... 81

5.5 Capital Account ........................................................................................................... 81

5.6 Changes in Reserve Position ....................................................................................... 81

5.7 External Debt ................................................................................................................ 81

5.8. Developments in Foreign Exchange Markets ........................................................... 83

5.8.1. Developments in Nominal Exchange Rate ................................................. 83

5.8.2. Movements in Real Effective Exchange Rate ............................................ 86

5.8.3. Foreign Exchange Transactions .................................................................... 86

VI. GENERAL GOVERNMENT FINANCE ..........................................................................................89

6.1. General ......................................................................................................................... 89

6.2. Revenue and Grants ................................................................................................... 90

6.3. Expenditure ................................................................................................................... 92

6.4 Deficit Financing ........................................................................................................... 95

VII. Investment ...............................................................................................................................97

7.1 Investment by Sector .................................................................................................... 100

7.2 Distribution by Region ................................................................................................... 102

VIII. International Developments .................................................................................................105

8.1. International Economic Developments .................................................................... 105

8.1.1. Overview of the World Economy ................................................................. 105

8.1.2 World Trade ..................................................................................................... 108

8.1.3 Inflation and Commodity Prices .................................................................... 108

8.1.4. Exchange Rate ............................................................................................... 109

8.2 Implications of International Economic Developments on the Ethiopia Economy . 109

vii

Report

Financial Statements For the year ended 30 June 2018 ............................................................110

STATEMENT OF DIRECTOR’S RESPONSIBILITY ...................................................................... 111

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS .................................................... 112

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ....................... 116

STATEMENT OF FINANCIAL POSITION ................................................................................... 117

STATEMENT OF CHANGES IN EQUITY ................................................................................... 118

STATEMENT OF CASH FLOWS ................................................................................................ 119

NOTES TO FINANCIAL STATEMENTS ...................................................................................... 120

STATISTICAL TABLES .......................................................................................................................232

viii 2017/18 Annual

ETHI

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560.

0 1

02,4

03.0

0 1

65,3

80.0

0 2

77,2

43.7

2

95,4

56.4

4

02,9

22.0

5

11,6

18.0

5

88,7

05.0

7

04,5

96.0

7

51,6

26.0

Expo

rts 3

5,23

3.0

52,

168.

00

85,

949.

80

102

,887

.0

108

,227

.1

123

,496

.0

121

,532

.2

122

,366

.0

139

,805

.0

184

,282

.0

Impo

rts 9

6,28

5.0

126

,319

.00

162

,486

.80

236

,384

.7

251

,300

.6

308

,691

.3

393

,189

.0

424

,528

.0

428

,400

.0

502

,113

.0

Reso

urce

Bal

ance

-61,

052.

0 (7

4,15

1.00

) (7

6,53

7.00

) (1

33,4

98.0

) (1

43,0

73.5

) (1

85,1

95.3

) (2

71,6

56.0

) (3

02,1

63.0

) (2

88,5

95.0

) (3

17,8

31.0

)

Gro

ss P

rivat

e C

onsu

mpt

ion

(% o

f GD

P) 8

0.7

81.

54

72.

43

72.

5 7

3.5

70.

2 6

9.0

67.

9 6

3.5

65.

5

G

ross

Gov

ernm

ent C

osum

ptio

n (%

of

GD

P) 9

.5

9.1

8 1

0.32

8

.3

9.0

9

.2

9.0

9

.7

12.

3 1

0.2

Gro

ss D

omes

tic F

ixed

Inve

stm

ent (

% o

f G

DP)

24.

9 2

7.01

3

2.11

3

7.1

34.

1 3

8.0

39.

4 3

8.5

39.

0 3

4.1

Reso

urce

Bal

ance

(% o

f GD

P)-1

8.4

(19.

56)

(14.

86)

(17.

9) (1

6.5)

(17.

5) (2

0.9)

(19.

8) (1

6.0)

(14.

4)3.

2: M

onet

ory

Indi

ctor

s

N

arro

w M

oney

Sup

ply

(M1)

( In

Mn.

Birr

)42

,112

.752

,434

.6 7

6,17

1.00

9

4,84

9.88

1

14,7

45.6

9 1

34,0

63.7

8 1

54,7

06.3

4 1

78,6

09.6

6 2

16,7

94.6

0 2

81,1

54.7

0

Broa

d M

oney

Sup

ply

(M2)

( In

Mn.

Birr

)82

,509

.810

4,43

2.4

145

,376

.97

189

,398

.78

235

,313

.59

297

,746

.59

371

,328

.91

445

,266

.25

573

,408

.60

740

,572

.50

Net

For

eign

Ass

ets (

In M

n. B

irr )

17,9

76.8

27,1

89.8

55,

534.

68

39,

787.

69

45,

648.

53

45,

972.

30

37,

570.

95

21,

524.

19

38,

034.

79

39,

376.

20

Rese

rve

Requ

irem

ent (

CBs

)11

,183

.314

,368

.0 2

0,49

5.20

1

8,08

0.56

1

1,70

8.82

1

4,47

9.39

1

8,25

0.35

2

1,74

5.43

2

8,28

0.80

3

6,38

5.80

Con

tinue

d...

Indi

cato

rs20

08/0

920

09/1

020

10/1

120

11/1

220

12/1

320

13/1

420

14/1

5 2

015/

16 2

016/

17 2

017/

18(2

001)

(200

2)(2

003)

(200

4)(2

005)

(200

6)(2

007)

(200

8)(2

009)

(201

0)

In

tere

st R

ate

( In

% )

Min

imum

Dep

osit

Rate

4.

04.

0 5

.00

5.0

0 5

.00

5.0

0 5

.00

5.0

0 5

.00

7.0

0

Le

ndin

g Ra

te

8-16

.512

.25

11.

88

11.

88

11.

88

11.

88

11.

88

12.

75

12.

75

13.

50

T

otal

Net

Dom

estic

Cre

dit

(in m

n. B

irr)

89,2

03.0

104,

413.

5 1

35,5

53.8

7 1

89,0

80.8

1 2

33,4

04.3

2 3

00,0

26.5

8 3

93,4

21.7

3 4

90,2

30.3

5 6

31,1

56.2

0 7

84,6

33.1

0

G

over

nmen

t32

,786

.533

,013

.1 2

8,65

1.65

2

1,55

7.41

2

1,96

5.52

2

6,92

9.74

3

0,73

5.25

4

7,54

8.36

8

5,44

1.85

10

2,00

2.80

Oth

er S

ecto

rs56

,416

.571

,400

.4 1

06,9

02.2

2 1

67,5

23.4

0 2

11,4

38.8

0 2

73,0

96.8

4 3

62,6

86.4

8 4

42,6

81.9

9 54

5,71

4.40

682,

630.

303.

3: A

vera

ge a

nnua

l infl

atio

n ra

te (C

PI g

row

th ra

te)3

Cou

ntry

Lev

el

-G

ener

al in

flatio

n36

.42.

818

.134

.113

.58.

17.

79.

77.

213

.1

-F

ood

infla

tion

44.2

-5.4

15.7

42.9

12.6

5.9

7.4

11.2

7.4

16.5

-Non

-food

infla

tion

(cor

e in

flatio

n)23

.818

.221

.822

.414

.810

.68

8.1

1.1

9.2

Ad

dis

Aba

ba

-G

ener

al in

flatio

n29

.410

.119

.424

.812

.68.

57.

610

.33.

08.

3

-F

ood

infla

tion

41.5

4.1

14.8

30.6

13.1

4.6

12.2

16.6

1.3

8.8

-Non

-Foo

d in

flatio

n (c

ore

infla

tion)

19.2

16.0

23.5

21.1

11.9

11.4

4.4

5.8

4.3

7.9

3.4:

Ext

erna

l Tra

de(In

Mn.

USD)

E

xpor

t of g

ood

s & se

rvic

es33

99.5

4,0

50.3

3 5

,343

.12

5,9

93.4

1 5

,978

.47

6,4

51.6

2 6

,057

.81

6,0

77.3

6

,257

.2

7,0

99.7

Im

port

of g

ood

s & se

rvic

es 9

,292

.3

9,8

58.4

0 1

0,16

0.72

1

3,80

5.17

1

3,86

4.19

1

6,19

7.24

1

9,84

8.9

20,

556.

2 1

9,71

0.0

19,

653.

4

Net

trad

e in

goo

ds &

serv

ices

-5,8

92.8

-5,8

08.4

-4,8

17.6

-7,8

11.8

-7,8

85.7

-9,7

45.6

-13,

791.

1-1

4,47

8.9

-13,

452.

9-1

2,55

3.7

C

urre

nt a

ccou

nt b

alan

ce in

clud

ing

offic

ial

t

rans

fers

-1,6

34.7

-1,1

93.2

-201

.9-2

,778

.0-2

,780

.3-4

,168

.1-7

,401

.6-6

,659

.3-6

,539

.2-5

,227

.3

C

apita

l acc

ount

bal

ance

1648

2,4

21.0

2 2

,995

.93

2,2

83.2

8 3

,291

.23

4,1

34.5

7 8

,285

.61

6,5

77.7

6

,895

.1

6,3

97.3

Ove

rall b

alan

ce o

f pay

men

ts18

.7 3

16.6

8 1

,384

.20

(972

.79)

(6.5

2) (9

6.89

) (5

21.4

1)-8

30.9

658.

6-2

01.6

3.5:

Gov

ernm

ent F

inan

ce (I

n M

n .B

irr4)

Tot

al R

even

ue (i

nclu

din

g gr

ants

)40

,421

.9 6

6,23

7.44

8

5,61

1.00

1

15,6

58.5

0 1

37,1

92.0

0 1

58,0

76.5

2 1

99,6

39.1

1 2

43,6

71.5

6 2

69,1

05.9

4 2

87,5

62.1

4

T

otal

Rev

enue

(exc

lud

ing

gran

ts)

31,9

24.0

53,

861.

34

69,

120.

00

102

,863

.65

124

,077

.00

146

,172

.77

186

,618

.69

230

,657

.28

256

,629

.04

269

,648

.19

o

/w T

ax-R

even

ue23

216.

2 4

3,31

5.36

5

8,98

1.00

8

5,73

9.86

1

07,0

10.3

0 1

33,1

18.2

6 1

65,3

12.4

7 1

89,7

17.1

8 2

10,1

35.8

5 2

35,2

29.4

8

Tax

-Rev

enue

as %

of G

DP

7.0

11.

42

11.

45

11.

47

12.

50

12.

71

13.

37

12.

40

11.

6 1

2.2

Tot

al E

xpen

ditu

res

4387

5.2

71,

334.

79

93,

831.

00

124

,416

.72

153

,929

.00

185

,471

.78

230

,521

.18

272

,930

.09

329

,286

.84

354

,205

.32

C

urre

nt E

xpen

ditu

res

2631

5.5

32,

012.

38

40,

535.

00

51,

445.

45

62,

745.

80

78,

086.

90

113

,375

.50

131

,902

.78

176

,703

.00

210

,470

.21

C

apita

l Exp

end

iture

s17

,559

.7 3

9,32

2.41

5

3,29

7.00

7

2,97

1.26

9

1,18

2.90

1

07,3

84.8

8 1

17,1

45.6

8 1

41,0

27.3

1 1

52,5

83.8

3 1

43,7

35.1

0

Equ

ity C

ontri

butio

n ( S

inki

ng F

und

)

Spe

cial

Pro

gram

s0.

00.

0 -

- -

- -

- -

-

Tot

al E

xpen

ditu

res a

s % o

f GD

P13

.218

.8 1

8.2

16.

6 1

8.1

17.

7 1

7.8

17.

9 1

8.2

16.

1

C

urre

nt S

urpl

us/D

efici

t5,

608.

534

,225

.1 4

5,07

6.5

64,

213.

0 7

4,44

7.0

79,

989.

6 8

6,26

3.6

111

,768

.8

92,

402.

9 7

7,09

1.9

Report

Governor’s Note

1. The Ethiopian economy registered 7.7 percent growth in 2017/18, slower than the 10.9 percent expansion recorded in the previous year. This growth was attributed to 12.2 percent rise in industrial output, 8.8 percent expansion in service sector and 3.5 percent growth in agriculture.

Consequently, the share of industry in GDP rose to 27 percent in 2017/18 from about 26 percent in 2016/17 while that of service increased slightly to 39.2 percent from 38.8 percent in 2016/17. In contrast, the share of agriculture fell to 34.9 percent in 2017/18 from 36.3 percent during the same period. This gradual but steady shift in the structure of the economy reflects the government’s policy direction of developing manufacturing sector and promoting export-led growth while continuing to give due attention to modernizing the agriculture sector which has dominated the country’s economic base for years.

2. The robust and sustained economic growth recorded over the last 15 years has led to improvements in income inequality and poverty reduction. Accordingly, per capita income has continuously increased and reached USD 883 in 2017/18. Poverty has declined to 22 percent from 38.7 percent in 2004/05. Investment to GDP ratio has increased to 34.1 percent while that of domestic savings rose to 22.4 percent.

Ove

rall B

udge

t Defi

cit (

incl

udin

g gr

ants

)-3

453.

3-5

,097

.4 (8

,220

.2)

(8,7

58.2

) (1

6,73

6.0)

(27,

395.

3) (3

0,88

2.1)

(29,

258.

5) (6

0,18

0.9)

(66,

643.

2)

D

efici

t as %

of G

DP

-1.0

-1.3

-1.6

-1.2

-2.0

-2.6

-2.4

-1.9

-3.3

-3.0

Ove

rall B

udge

t Defi

cit (

exc

lud

ing

gran

ts )

-119

51.1

-174

73.5

(24,

711.

5) (2

1,55

3.1)

(29,

851.

0) (3

9,29

9.0)

(43,

902.

5) (4

2,27

2.8)

(72,

657.

8) (8

4,55

7.1)

Defi

cit a

s % o

f GD

P-3

.6-4

.6-4

.8-2

.9-3

.5-3

.8-3

.5-2

.8-4

.0-3

.8

3.6:

Exc

hang

e Ra

te (B

irr/

USD)

Inte

r-Ban

k Fo

rex

Mar

ket R

ate5

*

Per

iod

wei

ghte

d A

vera

ge10

.420

512

.890

916

.117

817

.253

618

.194

719

.074

8 2

0.09

56

21.

1059

2

2.41

37

26.

1082

*

End

per

iod

11.3

009

13.5

321

16.9

081

17.7

305

18.6

426

19.5

771

20.

5659

2

1.80

04

23.

1081

2

7.37

61

Con

tinue

d…

.In

dica

tors

2008

/09

2009

/10

2010

/11

2011

/12

2012

/13

2013

/14

2014

/15

201

5/16

201

6/17

2017

/18

(200

1)(2

002)

(200

3)(2

004)

(200

5)(2

006)

(200

7)(2

008)

(200

9)(2

010)

3.7:

Trea

sury

Bill

Mar

ket (

In M

n .B

irr)

T-B

ills D

eman

ded

( To

tal )

46,7

67.2

51,

258.

02

55,

760.

03

77,

194.

80

109

,184

.60

113

,527

.98

136

,536

.80

161

,575

.24

225

,321

.24

323

,991

.24

T-B

ills S

old

27,8

39.8

41,

736.

42

52,

316.

03

74,

694.

80

109

,184

.60

95,

314.

98

110

,593

.30

161

,475

.24

225

,321

.24

323

,991

.24

Ave

rage

Wei

ghte

d Y

ield

(in

%)

0.74

3 0

.79

1.1

3 1

.87

1.8

9 1

.60

1.4

3 1

.44

1.4

2 1

.42

T-B

ills O

utst

and

ing

by h

old

er77

83.1

11,

566.

20

10,

706.

62

20,

011.

86

26,

044.

90

32,

286.

86

41,

704.

80

57,

252.

56

73,

271.

56

111

,213

.56

Ban

ks16

72 4

,400

.00

900

.00

2,3

83.5

0 3

,436

.00

- -

- -

-

N

on-B

anks

6111

.1 7

,166

.20

9,8

96.6

2 1

7,62

8.40

2

2,60

8.90

3

2,28

6.86

4

1,70

4.80

5

7,25

2.56

7

3,27

1.56

1

11,2

13.5

6 3.

8: In

ter B

ank

Mon

ey M

arke

t Rat

e5

_

_

_

_

_

_

_

_

_

3.

9: F

inan

cial

Inst

itutio

ns

N

umbe

r of C

omm

erci

al B

anks

12 1

4.00

1

7.00

1

7.00

1

8.00

1

8.00

1

8.00

1

8.00

1

8.00

1

8.00

( o/

w P

rivat

e ba

nks )

10 1

2.00

1

4.00

1

6.00

1

6.00

1

6.00

1

6.00

1

6.00

1

6.00

1

6.00

Num

ber o

f Ban

k Br

anch

es63

6 6

81.0

0 9

70.0

0 1

,289

.00

1,7

24.0

0 2

,208

.00

2,6

93.0

0 3

,301

.00

4,2

57.0

0 4

,757

.00

P

opul

atio

n : B

ank

Bran

ch12

0,75

4.7:

1 1

15,7

12.2

:1

83,

195.

9:1

64,

158.

3:1

496

74.8

:1

41,

088

33,

448.

00

27,

932.

00

221

64:1

2

0286

.5:1

N

umbe

r of

Insu

ranc

e C

ompa

nies

12 1

2.00

1

4.00

1

5.00

1

6.00

1

7.00

1

7.00

1

7.00

1

7.00

1

7.00

( o/

w P

rivat

e In

sura

nce

Com

pani

es )

11 1

1.00

1

3.00

1

4.00

1

5.00

1

6.00

1

6.00

1

6.00

1

6.00

1

6.00

Num

ber o

f Ins

uran

ce B

ranc

hes

194

207

.00

221

.00

243

.00

273

.00

332

.00

377

4

26

492

.00

532

.00

P

opul

atio

n : I

nsur

ance

Bra

nch

3958

76:1

383

844:

1 3

6606

3:1

3

4032

9:1

314

428.

9:1

264

918.

8:1

238

928:

1 2

1644

3:1

191

772:

1 1

8139

6:1

Num

ber o

f Dev

elop

men

t Ban

ks1

1.0

0 1

.00

1.0

0 1

.00

1.0

0 1

.00

1.0

0 1

.00

1.0

0

Num

ber o

f Dev

elop

men

t Ban

k Br

anch

es32

32.

00

32.

00

32.

00

32.

00

32.

00

32

110

1

10.0

0 1

07.0

0

N

umbe

r of M

icro

-fina

ncia

l Ins

titut

ions

30 3

0.00

3

1.00

3

1.00

3

1.00

3

1.00

3

5.00

3

5.00

3

5.00

3

8.00

So

urce

: M

inist

ries

of A

gric

ultu

re, R

even

ue, H

ealth

, and

Edu

catio

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Governor’s Note

1. The Ethiopian economy registered 7.7 percent growth in 2017/18, slower than the 10.9 percent expansion recorded in the previous year. This growth was attributed to 12.2 percent rise in industrial output, 8.8 percent expansion in service sector and 3.5 percent growth in agriculture.

Consequently, the share of industry in GDP rose to 27 percent in 2017/18 from about 26 percent in 2016/17 while that of service increased slightly to 39.2 percent from 38.8 percent in 2016/17. In contrast, the share of agriculture fell to 34.9 percent in 2017/18 from 36.3 percent during the same period. This gradual but steady shift in the structure of the economy reflects the government’s policy direction of developing manufacturing sector and promoting export-led growth while continuing to give due attention to modernizing the agriculture sector which has dominated the country’s economic base for years.

2. The robust and sustained economic growth recorded over the last 15 years has led to improvements in income inequality and poverty reduction. Accordingly, per capita income has continuously increased and reached USD 883 in 2017/18. Poverty has declined to 22 percent from 38.7 percent in 2004/05. Investment to GDP ratio has increased to 34.1 percent while that of domestic savings rose to 22.4 percent.


2017/18 Annual Report

2 2017/18 Annual Report

3. Despite the recent uptick, inflation has been kept within single digit level in 2017/18 largely aided by tight monetary and prudent fiscal policy stance. Yet, the annual average headline inflation rose to 13.1 percent in 2017/18 from 7.2 percent a year earlier due to the rise in both food and non-food inflation. Similarly, annual headline inflation went up to 14.7 percent from 8.8 percent owing to 6.7 percentage point and 4.9 percentage point increase in food inflation and non-food inflation respectively.

4. Fiscal policy continued to focus on increasing tax revenue by strengthening tax administration and enforcement, while covering a greater proportion of government expenditures from domestic resources. These government expenditures have largely been geared towards enhancing capital expenditure and pro-poor social spending programs and promoting safety nets. Thus, domestic revenue recorded a 5.1 percent annual growth while general government expenditure showed a 7.6 percent increment resulting in a budget deficit equivalent to 3 percent of GDP, higher than 2.8 percent of GDP target set in the GTP II plan.

5. The National Bank of Ethiopia (NBE) with a view of maintaining inflation at low and single digit level, has kept the growth of reserve money within the target by closely monitoring movements in domestic credit, including direct advance to the government. The Bank has also ensured the stability and predictability of the interest rate by setting the minimum deposit rate while allowing lending rate to be determined by market forces. This policy has resulted in increased saving mobilization and investment activities throughout the fiscal year.

6. Ethiopia has maintained managed float exchange regime to ensure the competitiveness of the local currency. Accordingly, the Birr was allowed to depreciate by 16.5 percent in nominal terms against the US Dollar by end 2017/18. In contrast, the real effective exchange rate appreciated by 5.9 percent largely due to 15 percent devaluation of the Birr against US dollar in October 2017.

7. The Ethiopian financial sector has remained safe, sound, well capitalized and profitable. As a result, commercial banks opened 500 new branches in 2017/18 alone which increased the total number of branches to 4,757 from 4,257 a year ago. The banks also increased their deposit mobilization by 23.6 percent, loan collection by 14.9 percent and loan disbursement by 5.9 percent. Their non-performing loan was within the required ceiling of 5 percent. Similarly, insurance companies and microfinance institutions have scaled up their services by expanding their network and product diversification. Capital goods finance companies have also stepped up

NATIONAL BANK OF ETHIOPIA

3

their operations showing visible signs of improvement.

8. Moreover, the implementation of financial inclusion strategy has resulted not only in terms of increased financial intermediation but also in enhancing the use of electronic money and new financial products. This strategy is expected to further improve access to finance and financial inclusion for a greater proportion of the society which is currently outside the reach modern financial services. To mitigate potential risks associated with this process of modernization, NBE has strengthened its monitoring and supervisory operation using international standard toolkits.

9. Fiscal year 2017/18 has been a challenging year for the Ethiopian external sector Particularly exports. Total merchandise exports revealed a 2.3 percent decline owing to lower earnings from export of coffe, pulses, live animals and chat. Total merchandize import also contracted by 3.5 percent due to slow down in imports of durable consumer goods and capital goods mainly transport and industrial goods. Ethiopia's external sector performance has also exhibited declines in both current account deficit (including offficial transfers ) and capital account surpluses, and recorded deficit in the overall balance of payments. Thus, the gross international reserves of the country stood at 2.1 months of imports coverage.

10. In a nut shell, despite headwinds, economic performance remained robust in2017/18. Most of the macroecnomic indicators were in line with the growth target set in GTP II fr the fiscal year. The ecnomic prospects for the 2018/19 are envisaged to be more postive despite some down side risks reated to export commodity price shocks and temporary inflation pressure.

11. Finally, it is worth to express my whole hearted appreciation to all members of NBE management team and staffs for their unwavering commitment in realizing the strategic objectives of the Bank and in contributing to the country's overall macroeconomic stability and growth . I am confident that they will continue their concerted efforts to achieve more postive outcomes and robust progress during FY 2018/19 and beyound.



THE OVERALL ECONOMIC PERFORMANCE

5

I. The overall Economic Performance1.1 Economic Growth1

The Ethiopian economy which had showed 9.3 percent average annual growth during 2013/14 - 2017/18 fiscal years, recorded 7.7 percent growth in 2017/18 fiscal year, slower than the growth rate registered in the previous year owing to growth deceleration in agriculture and industry sectors. The growth rate of real GDP was lower by 3.4 percentage point than the base case scenario of GTP II target set for the fiscal year. Yet, it was significantly higher than the 3.1 percent average growth estimated for Sub-Saharan Africa (World Economic Outlook Update, October 2018).

The growth in real GDP was mainly attributed to 8.8 percent growth in services, 3.5 percent in agriculture and 12.2 percent in industrial sectors (Table 1.1).

Nominal GDP per capita rose to USD 883, depicting marginal improvement over the previous year.

The Ethiopian economy is targeted to grow 11 percent in 2018/19 fiscal year compared to 3.7 and 3.8 percent growth forecast of the IMF for world economy and Sub-Saharan Africa (SSA), respectively (WEO, October 2018).

_____________________________________1 The real values of the economic sectors in 2016/17and 2017/18 are computed based on the 2015/16 base year; while that of the earlier years are based on 2010/11 base year. As a result, there will be some adjustments when the rebasing of National Accounts Statistics is finalized.


NATIONAL BANK OF ETHIOPIATable 1.1: Sectoral Contributions to GDP and GDP Growth1

(In Billions of Birr)

Items 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

SectorAgriculture 238.8 251.8 267.8 544.1 580.4 600.9Industry 73.9 86.5 103.7 343.9 413.8 464.4Services 259.0 292.0 325.0 575.9 619.3 673.9

Total 571.7 630.3 696.5 1,463.9 1,613.5 1,739.2 Less FISIM 3.0 4.0 4.0 14.5 17.0 19.8Real GDP 568.0 627.0 692.0 1,449.4 1,596.5 1,719.5 Growth in Real GDP 9.9 10.3 10.4 8.0 10.1 7.7

Per capita GDP (USD) (Nominal) 559.0 640.0 725.0 815.0 876.0 883.0

Growth rate in Per capita GDP 6.8 14.4 13.4 9.5 7.5 0.9

Mid-year population(in millions) 84.8 87.0 89.1 91.2 93.4 95.5

Share in GDP (in %)IndustryServices

Agriculture 42.0 40.2 38.7 37.5 36.3 34.9

13.0 13.8 15.0 23.7 25.9 27.0

45.5 46.6 47.0 39.7 38.8 39.2

Agriculture Contribution to GDP growthContribution in %

Absolute Growth 7.1 5.4 6.4 2.3 6.7 3.5

3.1 2.3 2.5 0.9 2.5 1.3

31.2 22.3 24.0 11.3 24.6 16.5

IndustryContribution to GDP growthContribution in %

Absolute Growth 24.1 17.0 19.8 20.6 20.3 12.2

2.8 2.2 2.7 3.1 4.8 3.1

27.9 21.4 26.0 38.8 43.8 40.7

ServicesContribution to GDP growthContribution in %

Absolute Growth 9.0 13.0 11.2 8.7 7.5 8.8

4.1 5.8 5.2 4.0 3.0 3.4

41 56.3 50.0 50.0 27.2 43.9Source: Planning and Development Commission

1 The real values of the economic sectors in 2016/17 and 2017/18 are computed based on the 2015/16 base year; while that of the earlier years are based on 2010/11base year.

7

Fig.I.1: Real GDP Growth by Major Sectors

0.0

5.0

10.0

15.0

20.0

25.0

2010/11 20011/12 20122/13 2013/144 2014/15 2015/16 2016/17 2017//18

Agricul

Industry

Service

Real GD

lture

y

e

DP

Source: Planning and Development Commission

During 2017/18, agricultural output depicted 3.5 percent growth which is lower from 6.7 percent growth registered in the previous year. Similarly it is 4.4 percentage point lower than the 7.9 percent target for the fiscal year.

The total grain production reached 306.1 million quintals showing 5.4 percent increment over the previous year. Of which, cereal production accounted for 87.5 percent, pulses 9.7 percent and oil seeds 2.8 percent. Cereals production went up by 5.5 percent over the preceding year owing to 0.1

percent increase in cultivated land area and improvement in productivity. Similarly, the production of pulses and oilseeds improved by 5.8 and 1.9 percent respectively; due to 3.1 and 5.1 percent expansion in cultivated land area respectively (Table1.2).

The total cultivated land of crop production increased marginally by 0.8 percent to 12.7 million hectares, of which cultivated land of cereals production covered 80.7 percent, while pulses and oil seeds 12.6 and 6.7 percent respectively (Table 1.2).


NATIONAL BANK OF ETHIOPIATable1.2: Estimates of Agricultural Production and Cultivated Areas of Major Grain Crops for Private Peasant Holdings-Meher Season

[Area in thousands of Hectares and Production in thousands of quintals]

Agricultural Production

2014/15 2015/16 2016/17 2017/18

Cultivated Area

Total Production

Cultivated Area

Total Production

Cultivated Area

Total Production

Cultivated Area

Total Production

Cereals 10,144 236,077 9,974 231,288 10,219 253,847 10,232 267,789

(Annual % Change) 3.0 9.4 -1.7 -2.0 2.5 9.8 0.1 5.5

Pulses 1,558 26,718 1,653 27,693 1,550 28,146 1,598 29,785

(Annual % Change) -10.6 -6.5 6.1 3.6 -6.2 1.6 3.1 5.8

Oilseeds 856 7,601 859.1 7,848.1 805 8,392 846 8,550

(Annual % Change) 4.9 6.9 0.4 3.3 -6.3 6.9 5.1 1.9

Total 12,558 270,396 12,486 266,829 12,574 290,386 12,676 306,124

(Annual % Change) 1.2 7.5 -0.6 -1.3 0.7 8.8 0.8 5.4

Source: Central Statistical Agency (CSA)

The share of agriculture in GDP declined to 34.9 percent in 2017/18 from 36.3 percent of a year ago. This was marginally lower than the 35.4 percent GTP II target set for the fiscal year. Likewise, its contribution to GDP growth declined to 16.5 percent from 24.6 percent (Table 1.1). The major output of the agricultural sector was crop production, comprising 65.3 percent, followed by animal farming & hunting (25.6 percent) and forestry (8.8 percent). In terms of growth, crop production increased by 4.7 percent while that of animal farming & hunting and forestry rose by 0.6 and 3.5 percent, respectively (Table 1.3).

The industrial sector showed 12.2 percent output growth and registered 27 percent share in GDP. The sector contributed 40.7 percent to the overall economic growth during the fiscal year (Table1.1). Its performance was lower than GTP II target of 20.6 percent, while its share is higher than the 19.4 percent share targeted for the same period.

Manufacturing sector increased by 5.5 percent and constituted about 25.3 percent of the industrial output. Construction industry, on the other hand, accounted for 71.4 percent of the industrial output and expanded by 15.7 percent signifying the leading role of the

9

construction sector in terms of roads, railways, dams and residential houses expansion.

Electricity & water and mining & quarrying had 2.6 and 0.7 percent contribution to industrial production, respectively (Table 1.3).

Service sector continued to dominate the economy as its share in GDP rose to 39.2 percent while its contribution to the GDP growth increased to 43.9 percent (Table 1.1). The sector showed 8.8 percent growth largely owing to the expansion of wholesale & retail trade

(12.3 percent), public administration & defense (8.9 percent), hotels & restaurants (6.5 percent), transport & communication (6.4 percent) and real estate, renting & business activities (6.2 percent) (Table 1.3).


NATIONAL BANK OF ETHIOPIATable 1.3: Growth and Percentage Distribution of Major Agricultural, Industrial and Service Sub-sectors

Sectors 2013/14 2014/15 2015/16 2016/17 2017/18

Gro

wth

ra

te

Crop 6.6 7.2 3.4 8.2 4.7Animal Farming and Hunting 2.1 4.7 -1.5 4.2 0.6Forestry 4.2 3.5 2.2 3.6 3.5Fishing 32.5 30.6 0.1 0.5 11.3

Shar

e in

A

gric

ultu

re

Crop 70.6 71.1 63.6 64.5 65.3Animal Farming and Hunting 20.6 20.3 27.0 26.4 25.6Forestry 8.7 8.4 9.1 8.8 8.8

Fishing 0.2 0.2 0.3 0.2 0.3

Gro

wth

ra

te

Mining and Quarrying (3.2) (25.6) (3.3) -29.8 -20.8Manufacturing 16.6 18.2 18.4 24.7 5.5Electricity and Water 6.8 4.5 15.0 4.9 3.3Construction 23.9 31.6 25.0 20.7 15.7

Shar

e in

In

dus

try

Mining and Quarrying 9.1 5.7 1.8 1.0 0.7Manufacturing 33.4 33.0 25.9 26.9 25.3Electricity and Water 7.6 6.6 3.2 2.8 2.6Construction 49.9 54.8 69.1 69.3 71.4

Gro

wth

rate

Whole Sale and Retail Trade 17.7 12.3 8.2 6.5 12.3Hotels and Restaurants 26.6 29.6 15.6 0.1 6.5Transport and Communications 12.7 13.3 13.7 15.1 6.4

Real Estate, Renting and Business Activities 3.9 4.1 3.7 4.4 6.2Public Administration and Defense 11.0 6.0 7.4 13.2 8.9Others* 8.1 7.3 7.5 6.4 6.8

Shar

e in

Ser

vice

Whole Sale and Retail Trade 35.3 35.7 35.1 34.8 35.9 Hotels and Restaurants 9.7 11.3 7.2 6.7 6.6 Transport and Communications 10.1 10.2 12.2 13.1 12.8

Real Estate, Renting and Business Activities 16.9 15.8 11.6 11.3 11.0 Public Administration and Defense 10.8 10.3 10.8 11.4 11.4 Others* 17.2 16.6 23.0 22.7 22.3


* Includes: financial intermediation, education, health and social work, private households with employed persons and other community, social and personal services.

11

1.2. GDP by Expenditure Components

Total consumption expenditure (public and private) in percent of GDP declined to 75.7 percent in 2017/18 from 77.6 percent in the preceding year owing to 1.0 percentage point in private consumption expenditure to GDP ratio and 0.9 percentage point drop in government final consumption expenditure to GDP ratio.

As a result, gross domestic saving to GDP ratio rose to 24.3 percent from 22.4 percent and slightly lower than the

24.6 percent GTP II target for the fiscal year (Table 1.4). While domestic saving accelerated by 30.7 percent, total consumption expenditure increased by 17.2 percent during the fiscal year.

Meanwhile, gross capital formation to GDP ratio stood at 34.1 percent depicting 4.3 percentage point contraction over the previous year and domestic absorption to GDP ratio was 109.8 percent.


NATIONAL BANK OF ETHIOPIATable: 1.4: Expenditure on GDP and Gross Domestic Savings (Percentage of GDP)

Year

Domestic Absorption

Consumption Expenditure

Gross Capital

FormationResource Balance

Exports of Goods & Services

Imports of

Goods & Services

Gross Domestic SavingsTotal Govt. Pvt.

2002/03 116.7 92.4 14.3 78.1 24.3 (14.2) 13.5 27.7 7.6

2003/04 113.9 84.9 14.0 70.9 29.0 (16.8) 15.1 31.9 15.1

2004/05 116.5 90.5 13.3 77.3 26.0 (20.6) 15.3 35.8 9.5

2005/06 119.3 91.7 13.1 78.7 27.6 (22.9) 14.0 36.9 8.3

2006/07 111.9 87.6 11.2 76.4 24.2 (19.5) 12.8 32.4 12.4

2007/08 115.3 90.8 10.5 80.3 24.5 (19.6) 11.5 31.1 9.2

2008/09 115.1 90.2 9.5 80.7 24.9 (18.4) 10.6 29.0 9.8

2009/10 117.7 90.7 9.2 81.5 27.0 (19.6) 13.8 33.3 9.3

2010/11 114.9 82.8 10.3 72.4 32.1 (14.9) 16.7 31.5 17.2

2011/12 117.9 80.8 8.3 72.5 37.1 (17.9) 13.8 31.6 19.2

2012/13 116.5 82.4 9.0 73.5 34.1 (16.5) 12.5 29.0 17.6

2013/14 117.5 79.5 9.2 70.2 38.0 (17.5) 11.6 29.1 20.5

2014/15 117.5 78.1 9.0 69.0 39.4 (20.9) 9.4 30.3 21.9

2015/16 115.0 77.6 11.1 66.5 37.3 (19.3) 7.8 27.1 22.4

2016/17 116.1 77.6 11.1 66.5 38.4 (15.8) 7.6 23.5 22.4

2017/18 109.8 75.7 10.2 65.5 34.1 (14.4) 8.4 22.8 24.3Average 2013/14-2017/18 115.2 77.7 10.1 67.5 37.5 (17.6) 9.0 26.6 22.3Average 2008/09-2017/18 115.7 81.2 9.7 71.4 34.5 (17.5) 11.0 28.5 18.8


13

1.3: Micro and Small-Scale Enterprises

During 2017/18 alone, a total of 144,107 new micro and small scale enterprises (MSEs) were established which employed about 187.9 thousand people. These

enterprises received more than Birr 8.6 billion in loans.

Table 1.5: Numbers, Amount of Credit and Jobs Created through MSEs (Credit in Millions of Birr)

Particulars 2015/16 2016/17 2017/18

No. of MSE’s

190,587 157,768 144,107

Amount of credit

5,366.55 7,075.77 8,633.71

No of Total employment 1,665,517 1,172,678 187,945

Source: Federal Urban Job Creation and Food Security Agency


NATIONAL BANK OF ETHIOPIATable 1.6: Numbers, Amount of Credit and Jobs Created through MSEs by Region

(Credit in Millions of Birr)

Addis Ababa Oromia SNNPR Amhara Tigray Dire

Dawa Harari Benishangul Somali Gam

bela Afar Total

No. of MSEs 9,564 34,886 23,374 40,674 31,556 917 348 568 1,600 547 73 144,107

Amount of credit 1,855.0 1,005.6 1,004.9 2,479.1 1,497.1 143.1 44.6 52.3 499.8 21.7 30.5 8,633.7

No. of total Employment created by MSEs

6,563 79,044 37,679 37,982 17,630 3,380 572 390 2,427 1,112 1,166 187,945

Regional Percentage Share

No. of MSEs 6.6 24.2 16.2 28.2 21.9 0.6 0.2 0.4 1.1 0.4 0.1 100

Amount of credit 21.5 11.6 11.6 28.7 17.3 1.7 0.5 0.6 5.8 0.3 0.4 100

No. of total Employment created by MSEs

3.5 42.1 20.0 20.2 9.4 1.8 0.3 0.2 1.3 0.6 0.6 100

Source: FeUJCFSA

In terms of regional distribution, 28.2 percent of the newly established MSEs were located in Amhara followed by Oromia (24.2 percent), Tigray (21.9 percent), SNNPR (16.2 percent) and Addis Ababa (6.6 percent). With respect to total loans, SMEs in Amhara received 28.7 percent, Addis Ababa 21.5 percent, Tigray 17.3 percent, Oromia and SNNPR each 11.6 percent and Somalia 5.8 percent.

Of the total jobs created by the newly established SMEs, about 42.1 percent was in Oromia, 20.2 percent in Amhara, 20 percent in SNNPR, 9.4 percent in Tigray and 3.5 percent in Addis Ababa.

15

Fig.I.1: Yearly Distribution of Numbers of MSEs during 2017/18

Source: FeUJCFSA

Fig.I.2: Yearly Distribution of Amount of Credit during 2017/18

Source: FeUJCFSA


NATIONAL BANK OF ETHIOPIAFig.I.3: Yearly Distribution of Employment Created during 2017/18

Source: FeUJCFSA

1.4. Access to Water Supply

During the review period, the proportion of people having access to potable water supply improved by 5.1 percentage point to 71 percent (74 percent rural and 60 percent urban population); relative to 66 percent (68 percent rural and 55 percent urban people) coverage a year earlier (Table 1.7). In other words, rural areas had relatively better access than the urban areas due to difference in newly depicted standards by the ministry of water, Irrigation and Energy.

Against GTP II annual target for the year 2017/18, urban and rural potable water supply coverage showed 5 and 1 percentage point shortfall respectively. GTP II has set potable water supply coverage at national level for the fiscal year at 73 percent which is 2 percentage point higher than actual.

In terms of percentage of people with access to potable water, Afar region had 54 percent accessibility to potable water registered the lowest percentage while that of Amhara performed better with (82 percent) followed by Somali (77 percent), Harari (67 percent), Gambella (66 percent) and Oromia (64 percent each). Except for Addis Ababa and Tigiray access to potable water shows improvements in all regions.

17

In Addis Ababa accesses for potable water drops from 92 percent to 61 percent owing to the standards for computation shifts from 100 litter/capita/day to 110 litter/capita/day. In the same way, in Tigray it shows downward movements by 6.1 percent the reason for annually decline is the size of population increases; while additional access for potable water is not show improvement accordingly.

In terms of access to potable water in urban areas, SNNPR had the leading share of 80 percent followed by Amhara & Somali (74 percent each), Harari (65 percent), Oromia (62 percent). On the

other hand, the least performers are Ben-gumuz (42 percent) followed by Gambella (43 percent) and Afar and Tigray (54 percent each).

Despite some improvements in access to potable water in rural areas, Afar and SNNPR registered the lowest performance 54 and 55 percent respectively.

On the other hand, Dire Dawa and Amhara saw the highest performance of 84 percent each followed by Somali (77 percent), and Gambella (75 percent).


NATIONAL BANK OF ETHIOPIATable 1.7: Percentages of People with Access to Potable Water by Region

Regions

2016/17 2017/18 Change in percentage

pointRural Urban Total Rural Urban Total

A B C D E F D-A E-B F-C

Tigray 67 56 65 61 54 59 -6.4 -1.9 -6.1

Afar 45 48 46 54 54 54 8.5 6.1 8.0

Amhara 76 69 75 84 74 82 7.8 4.8 7.2

Oromia 61 51 59 64 62 64 3.0 11.2 4.8

SNNPR 51 75 52 55 80 58 3.6 5.1 5.6

Somali 67 65 66 77 74 77 10.0 9.0 11.0

B.Gumuz 60 50 58 66 42 61 6.4 -7.8 3.2

Gambella 74 41 64 75 43 66 0.9 2.1 8.8

Harar 65 66 66 68 65 67 3.0 -1.0 0.5

D. Dawa 78 0 0 84 0 6.4 0.0 0.0

AA 0 92 92 0 61 61 0.0 -31.0 -31.0

Total 68 55 66 74 60 71 5.9 5.2 5.1

Source: Ministry of Water, Irrigation and Energy and NBE Staff Computation

Fig.I.5: Access to water supply by Region

Source: Ministry of Water, Irrigation and Energy; and NBE Staff Computation

19

1.5 Road Sector Development

1.5.1 Road Network

In 2017/18, total road network reached 126,773 Km, showing a 5.5 percent annual expansion. The country’s total road network was consisted of 56,732.4 Km (44.8 percent) Woreda road, 35,985 Km (28.4 percent) rural road, 28,699 Km (22.6 percent) federal road and 5,357 Km (4.2 percent) urban road. The Federal road included 15,886 Km (55.4 percent) asphalt and 12,813 Km (44.6 percent) gravel.

Asphalt road network accounted for about 12.5 percent of the road network which was lower than 14.5 percent GTPII target set for the fiscal year.

During the review period, rural road network, administered by regional authorities, showed a 7.8 percent annual growth and reached 35,985 Km while Woreda road stood at 56,732 Km (Table 1.8).


NATIONAL BANK OF ETHIOPIATable 1.8: Classification of Road Network

(Length in km)

Year

Federal RoadRural road

Woreda road *Paved Cobel

Urban RoadsTotal**

Asphalt Gravel Unpaved

Length Growth rate Length Growth

rate Length Growth rate Length Growth

rate Length Length Length Length Growth rate

2004/05 4,972

7.3

13,640

(1.9)

18,406

2.5 NA NA NA NA 37,018 1.4

2005/06 5,002 0.6

14,311 4.9

20,164

9.6 NA NA NA NA 39,477 6.6

2006/07 5,452

9.0

14,628 2.2

22,349

10.8

57,764 - NA NA NA 42,429 7.5

2007/08 6,066

11.3

14,363

(1.8)

23,930

7.1

70,038 21.2 NA NA NA

44,359 4.5

2008/09 6,938

14.4

14,234

(0.9)

25,640

7.1

85,767 22.5 NA NA NA

46,812 5.5

2009/10 7,476

7.8

14,373 1.0

26,944

5.1

00,385 17.0 NA NA NA 48,793 4.2

2010/11 8,295

11.0

14,136

(1.6)

30,712

14.0

854

(99.1) NA NA NA

53,997 10.7

2011/12 9,875

19.0

14,675 3.8

31,550

2.7

6,983 717.7 NA NA NA 63,083 16.8

2012/13 11,301

14.4

14,455

(1.5)

32,582

3.3

27,628 295.6 NA NA NA

85,966 36.3

2013/14 12,640

11.8

14,217

(1.6)

33,609

3.2

39,056 41.4 NA NA NA

99,522 15.8

2014/15 13,551

7.2

14,055

(1.1)

30,641

(8.8)

46,810 19.9

1,693 850 2,814 10,414 10.9

2015/16 14,632

8.0

13,400

(4.7)

31,620

3.2

48,057 2.7

1,693 NA 3,664 13,066 2.4

2016/17 15,886

8.6

12,813

(4.4)

33,367

5.5

52,748 9.8

1,693 NA 3,664 20,171 6.3

2017/18 15,886 -

12,813 - 35,985

7.8

56,732 7.6

1,693 2,814 850 26,773 5.5

Source: Ethiopian Roads Authority

* Includes community road, which was replaced by woreda road and registered as new road in 2010/11 ** Total road length does not include community road length till 2010/11as it is non-engineered road; but it includes woreda road.

21

1.5.2 Road Density

At the end of 2017/18, road density per 1,000 square Km increased to 115.2 km from 109.2 km a year ago depicting a 5.5 percent improvement over the previous year.

Meanwhile, road density per 1,000 populations was 1.27 km which shows slightly down ward movement by 1.6 percent when compared with 1.29 km a year ago.

Table 1.9: Road Densities

Year Road Density /1000 person Road density /1000 sq. km

2004/05 0.50 33.70

2005/06 0.53 35.90

2006/07 0.55 38.60

2007/08 0.56 40.30

2008/09 0.57 42.60

2009/10 0.60 44.40

2010/11 0.65 48.30

2011/120.75 57.30

2012/131.00 78.20

2013/14 1.10 90.50

2014/15 1.20 100.40

2015/16 1.23 102.80

2016/17 1.29 109.20

2017/18 1.27 115.20

Growth rate -1.6 5.5



NATIONAL BANK OF ETHIOPIA1.5.3 Road Accessibility

In 2017/18, annual average distance from all-weather roads declined by 6.5 percent from 4.6 km in 2016/17 to 4.3 km. Similarly, the proportion of area more than 5km from all-weather roads dropped to 31.6 percent from 33.5

percent last year (Table 1.10).

Exclusively 73 percent of the asphalt road and 66 percent of the gravel road were in good condition during 2017/18 (Figure I.6).

Table 1.10: Road Accessibility

Indicator 2016/17 2017/18 Percentage

changeProportion of area more than 5Km from all-weather road

33.5 31.6 -5.7Average distance from all-weather roads

4.6 4.3 -6.5


Fig.I.6: Status of Road


23

1.5.4 Road Sector Financing

Construction and maintenance of roads remained one of the key investments for the Ethiopian government over the past decade.

In 2017/18, total investment in road construction and expansion (excluding urban road) declined by 2.4 percent to Birr 33.1 billion from Birr 33.9 billion a year earlier (Table 1.11 and fig.I.7).

Investment in the Federal road construction and expansion accounted for 77.6 percent of the total road investment capital and reached at Birr 25.6 billion, while regional roads constituted 11.5 percent followed by Woreda road (11 percent). There was no investment in urban road construction and expansion during the period (Table 1.11) and (Fig.1.7).

Table 1.11: Investments in the Road Sector (In millions of Birr)

Road type2016/17 2017/18

Percentage change

A Share (In %) B Share

(In %)

Federal roads 28,797.7 84.8 25,695.7 77.6 -10.8

Regional road 2,756.2 8.1 3,794.6 11.5 37.7

Woreda road 2,392.2 7.0 3,638.7 11.0 52.1

Urban road* NA - NA - -

Total 33,946.1 100.0 33,129.0 100.0 -2.4

Source: Ethiopian Roads Authority* All municipalities’ maintenance.


NATIONAL BANK OF ETHIOPIAFig.I.7: Investment in Road Construction and Expansion


1.7. Telecommunication

Telecommunication is one of the prime support services needed for rapid growth and modernization of various sectors of the economy. Expansion of infrastructure development such as telecommunication would have significant impact on attracting investment, creating market opportunities, enhance competitiveness and boost regional economic integration.

Cognizant of this fact, the Ethiopian government has made major investment for improving service quality, expansion of service coverage and enhancing institutional capacity in the telecom

sector. As a result, Ethio Telecom has set ambitious targets to enhance customer acquisition, customer satisfaction and provision of quality services to customers.

During 2017/18 fiscal year, the number of mobile subscribers declined by 30.4 percent to 40.4 million from 58 million a year ago; the reason for the decline is the decision to clear inactive1 customers for the long time; thus only active customers of specified service are included.

The lion share of mobile subscribers is from pre-paid subscribers comprising 99.5 percent; while the remaining 0.5 percent is post-paid mobile subscribers.

25

Similarly, the numbers of fixed line subscribers marginally declined by 1 percent due to inactive customers are not included.

On the other hand, the number of internet subscribers surged by 8.4 percent and reached 17.8 million from 16.5 million recorded in 2016/17 (Table 1.13).

2Table 1.13: Number of Subscribers3

Service Type 2016/17 2017/18 Percentage Change

I. Fixed line 1,169,625 1,157,779 -1.0

II. ALL MOBIL 58,080,626 40,409,751 -30.4

Total mobile pre-paid 57,784,164 40,213,723 -30.4

Total Mobile post-paid 296,462 196,028 -33.9

III. Total data and Internet 16,505,225 17,883,439 8.4

Broadband (EVDO, WCDMA, ADSL) 6,902,902 8,920,159 29.2

Narrowband (1X, dialup, ADSL*< 256K) 276,294 243,629 -11.8

GPRS 9,326,029 8,719,651 -6.5

Grand Total 59,899,089 117,744,159 96.6

Source: Ethio-Telecom*CDMA )Code Division Multiple Access(, GSM )Global System for Mobiles(,GPRS (General Packet Radio Service(and ADSL )Asymmetric Digital Subscriber Line(

2 Inactive customers imply those customers who didn’nt use their sim cards for two consequative years or more.


NATIONAL BANK OF ETHIOPIAAt the same time, the country’s telecommunication penetration rate (telecom density) decreased from 63 percent in 2016/17 to 43 percent in 2017/18; as well, mobile density moves downward to 41.8 percent in 2017/18 from 61.6 percent a year ago

the annually decline was due to the exclusion of inactive customers. While internet and data density improved to 18.5 from 17.5 a year ago. On the other hand, fixed line density remains unchanged and stable at 1.2 per 100 subscribers during 2017/18 (Table 1.14).

Table 1.14: Telecom Density

Tele Density/100 Subscribers* 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

Fixed line 0.9 1 1 1.2 1.2 1.2

Mobile 27.6 33.3 43 49.8 61.6 41.8

Total 28.5 34.3 44 51 63.6 43.3

Internet and data 5.2 7.3 10 14.7 17.5 18.5

Source: Ethio-Telecom*Tele-density is mobile plus fixed telephone subscribers per 100 inhabitants

During the review period, international outgoing and incoming calls in number decreased by 8.2 and 37.6 percent respectively. At same time, international outgoing and incoming calls in minutes lessen by 8.8 and 38 percent respectively.

The cause for annually decline is a technical shift due to technological advancement. However, the annual traffic for local calls improved by 26.9 percent and reached 44.6 billion (Table 1.15).

27

Table 1.15: Annual Traffic for Local and International Calls

Annual Traffic 2016/17 2017/18 Percentage Change

Mobile local traffic (In millions) 35,142 44,600 26.9

International Traffic

International outgoing calls (In number) 39,137,793 35,911,226 -8.2

International outgoing minutes 54,163,949 49,394,715 -8.8

International incoming calls (In number) 129,033,583 80,508,188 -37.6

International incoming minutes 473,617,783 293,524,005 -38.0

Source: Ethio-Telecom

Income of Ethio-telecom rose by 13.1 percent to Birr 37.6 billion in 2017/18 vis-à-vis Birr 33.3 billion in 2016/17. At same time, its total expenses increased to Birr 10.6 billion showing 25 percent annual

increment.Consequently, Ethio – telecom earned a gross profit of Birr 27 billion in 2017/18 which was 9 percent higher than the previous year (Table 1.16).

Table 1.16: Financial Performance and Asset of Ethio -Telecom (In Millions of Birr)

Finance and Asset

2015/16 2016/17 2017/18 Percentage Change

A B C C/A C/B

Income 28,371.67 33,343.16 37,699 32.9 13.1

Expense 12,888.36 8,551.15 10,677 -17.2 24.9

Gross Profit 15,483.31 792.01 27,022 74.5 9.0

Assets 22,787.00 29,976.81 43,712.48 91.8 45.8

Fixed Gross 30,949.00 32,398.97 47,194 52.5 45.7

Depreciation 8,162.00 2,422.17 3,482 -57.3 43.8

Source: Ethio– Telecom



ENERGY PRODUCTION

29

II. Energy Production2.1. Electric Power Generation

Ethiopia is estimated to have hydro-power potential of 45,000 MW, a geothermal potential of 10,000 MW and 1.3 million MW potential from wind farm. The country’s generating capacity is largely based on hydropower reservoirs as nine of its major rivers are suitable for hydroelectric power generation.

Considering the increasing power demand and capacity shortfall in the system and to have a better power generation mix, the country has been venturing to diversify its production of renewable energy to wind and geothermal sources.

Adama II wind farm has a generating capacity of 153 MW and combined with Adama I (51MW) and Ashegoda (120 MW), the total energy production from wind has reached 324 MW. In addition, the construction of Aysha 300 MW wind power project was under way.

Ethiopia is also identified as having a huge solar energy potential due to its geographical location near the equator. In its bid to become a major power exporter in East Africa and green economy, the country is also building several geothermal power plants.

The amount of electric power generated in 2017/18 was about 13.9 billion KWH, showing 11 percent annual expansion. About 95.2 percent of the electric power was generated through hydropower, 3.7 percent from wind and 1 percent from thermal sources.

The production of hydro power energy got momentum as the total electric energy generated increased to 13.2 billion KWH from 11.7 billion KWH a year earlier showing 12.8 percent annual increase while energy production from wind sources showed a down ward movement by 33.7 percent (Table 2.1).


NATIONAL BANK OF ETHIOPIATable 2.1: Electric Power Generation in ICS and SCS

(I n ‘000 KWH)

Source2015/16 2016/17 2017/18 Percentage

Change

[A] Share (In %) [B] Share

(In %) [C] Share (In %) [C/A] [C/B]

ICS

Hydro Power 9,674,157.6 92.4 11,752,824.4 93.7 13,253,841.6 95.2 37.0 12.8

Thermal Power 1,017.4 0.0 67.9 0.0 141,529.1 1.0 13,811.4 208,435.9

Geothermal - - -Wind 785,505.5 7.5 783,797.7 6.3 519,605.0 3.7 -33.9 -33.7

Sub Total 10,460,680.5 100.0 12,536,690.0 100.0 13,914,975.8 100.0 33.0 11.0

SCS

Hydro Power - - -

Thermal Power 4,259.1 0.0 2,837.8 0.0 2,819.0 0.0 -33.8 -0.7

Sub Total 4,259.1 0.0 2,837.8 0.0 2,819.0 0.0 -33.8 -0.7

Total

Hydro Power 9,674,157.6 92.4 11,752,824.4 93.7 13,253,841.6 95.2 37.0 12.8

Thermal Power 5,276.5 0.1 2,905.6 0.0 144,348.1 1.0 2,635.7 4,867.8

Geothermal - - -Wind 785,505.5 7.5 783,797.7 6.3 519,605.0 3.7 -33.9 -33.7

Grand Total 10,464,939.6 100.0 12,539,527.8 100.0 13,917,794.7 100.0 33.0 11.0

Source: Ethiopian Electric Power

31

2.2. Volume and Value of Petroleum Imports

During 2017/18, about 3.8 million metric tons of petroleum products worth Birr 58.6 billion were imported by the Ethiopian Petroleum Enterprise. As compared to previous year, total value of petroleum imports increased by 57 percent mainly due higher international oil prices and 9.6 percent rise in volume of petroleum imports. Import volume of regular gasoline increased by 21.4 percent

followed by gas oil (14 percent) and fuel oil (10.6 percent), while jet fuel dropped by 7.8 percent.

On the other hand, the value of regular gasoline surged by 72.8 percent followed by gas oil (64.4 percent), fuel oil (54.8 percent) and jet fuel (31.1 percent) (Table 2.2) (Fig.II.1 & Fig.II.2).

Table 2.2: Volume and Value of Petroleum Imports

(Volume in MT and Value in ‘000 Birr)

Petroleum Products

2016/17 2017/18

Percentage ChangeVolume Value Volume Value

A B C D C/A D/B

Regular Gasoline (MGR)

363,845.1

4,399,921.8

441,542.3

7,602,496.3 21.4 72.8

Jet Fuel 800,783.3

9,172,380.3

738,105.6

12,026,911.4 -7.8 31.1

Fuel Oil 75,283.6

657,563.3 83,268.52

1,017,928.6 10.6 54.8

Gas Oil (ADO) 2,199,354.6

23,098,209.4

2,507,672.5

37,966,651.2 14.0 64.4

Total 3,439,266.6

37,328,074.9

3,770,588.9

58,613,987.4 9.6 57.0

Source: Ethiopian Petroleum Enterprise


NATIONAL BANK OF ETHIOPIAFig.II.1: Trends in Volume of Petroleum Imports (In ‘000)


Fig.II.2: Trends in Value of Petroleum Imports (In ‘000)


In line with the increase in international oil prices, domestic retail prices were also adjusted up wards. Thus, retail prices of jet fuel increased by 37.8 percent

followed by kerosene (15.8 percent), gas oil (8.2 percent), regular gasoline (6.8 percent) and fuel oil (6.7 percent) (Table 2.3).

33

Table 2.3: Annual Retail Prices of Petroleum Products in Addis Ababa (Birr/liter)

Year QuarterRegular Gasoline(MGR)

Fuel Oil Gas Oil Kerosene Jet fuel

2015/16

Qtr.1 17.96 13.59 16.10 14.13 16.23Qtr.2 17.96 13.59 16.10 14.13 15.14Qtr.3 17.06 12.59 14.81 13.00 13.95Qtr.4 16.61 12.10 14.16 12.43 12.34Average 17.40 12.97 15.29 13.42 14.41

2016/17

Qtr.1 16.61 12.10 14.16 12.43 13.36Qtr.2 16.61 12.10 14.16 12.43 14.03Qtr.3 18.32 13.46 15.76 15.25 15.74Qtr.4 18.77 13.69 16.35 16.35 15.70Average 17.58 12.84 15.11 14.12 14.71

2017/18

Qtr.1 18.77 13.69 16.35 16.35 15.04Qtr.2 18.77 13.69 16.35 16.35 19.06Qtr.3 18.77 13.69 16.35 16.35 22.59Qtr.4 18.77 13.69 16.35 16.35 24.37Average 18.77 13.69 16.35 16.35 20.27Annual percentage change 6.8

6.7 8.2 15.8 37.8


Fig.II.3: Trends in Average Fuel Price in Addis Ababa

Source: Ethiopian Petroleum Enterprise.



PRICE DEVELOPMENTS

35

III. Price Developments3.1. Developments in Consumer Price at National Level

The annual average headline inflation rose to 13.1 percent in 2017/18, depicting 5.8 percentage point increase over the preceding year owing to 9.1 percentage point rise in food & non-alcoholic beverages inflation and 2.1 percentage point increase in non-food inflation (Table 3.1).

In the review period, annual average food & non-alcoholic beverages inflation accelerated to 16.5 percent from 7.4 percent in the previous year indicating a 9.1 percentage point annual increase due to higher prices of bread &cereals, vegetables, meat, fruit and food products not elsewhere classified.

In the same period, the annual average non-food inflation scaled up by 2.1 percentage point to 9.2 percent (Table 3.1 and Fig III.1).

Likewise, headline inflation soared up to 14.7 percent year-on-year from 8.8 percent in 2016/17 on account of 6.7 percentage points upsurge in food & non-alcoholic beverages inflation and 4.9 percentage points increase in non-food inflation. Annualized food & non-alcoholic beverages and non-food inflation scaled up to 17.9 percent and 11.0 percent from 11.2 percent and 6.1 percent in 2015/16 respectively (Table 3.2 and Fig. III. 2).

Table 3.1: Annual Average Inflation Rates (in percent)

Items 2016/17 2017/18Change (in %age Points)

Contribution to Change in Headline Inflation

(%age points) A B B-A CGeneral 7.2 13.1 5.8 5.8Food &Non-alcoholic beverages 7.4 16.5 9.1 4.8

Non-Food 7.1 9.2 2.1 1.0

Source: CSA and NBE Staff Computation


NATIONAL BANK OF ETHIOPIAFig III 1: Developments in National Inflation


Table 3.2: Annual Inflation Rates (in percent)

Items 2016/17 2017/18Change(in %age

Points)

Contribution to Change in Headline Inflation

( %age points) A B B-A CGeneral 8.8 14.7 5.9 5.9

Food &Non-alcoholic beverages 11.2 17.9 6.7 3.5

Non-Food 6.1 11.0 4.9 2.3


Fig III. 2: Developments in Inflation of Food, Non-Food & Non-alcholic beverages


37

3.2 Consumer Price Developments in Regional StatesDuring the review fiscal year, the regional simple average general inflation accelerated to 11.7 percent from 7.1 percent in the previous year. Beneshangule Gumz, Amhara, SNNP, Somali and Oromia reginal states registered higher headline inflation

rates than the regional average (Table 3.3). The highest headline inflation (17.0 percent) was revealed in Beneshangule Gumz while the lowest (6.5 percent) was registered in Tigray, depicting 10.5 percentage point margin.

Table 3.3: Regional Annual Average Inflation (2017/18 FY)

Regions

2016/17 2017/18 Change

General

Food & Non-

alcoholic beverages

Non-food General

Food & Non-

alcoholic beverages

Non-food General

Food & Non-

alcoholic beverages

Non-food

A B C D E F G=D-A H=E-B I=F-CSNNP 8.6 13.2 4.9 14.3 20.7 8.9 5.7 7.4 4.0Harari 6.6 9.0 4.0 9.9 9.8 10.1 3.3 0.8 6.1Oromia 3.3 1.0 6.1 12.2 14.9 9.2 8.9 13.9 3.1Tigray 10.0 8.9 10.9 6.5 12.1 1.6 -3.5 3.2 -9.3Gambella 5.0 7.1 1.3 11.4 12.5 9.3 6.5 5.4 8.0Addis Ababa 3.0 1.3 4.3 8.3 8.8 7.9 5.3 7.5 3.6Dire Dawa 7.5 9.4 6.3 8.9 12.3 6.8 1.4 2.9 0.4Ben. Gum 5.4 5.6 5.2 17.0 19.5 13.5 11.6 13.9 8.3Somali 10.5 11.2 15.0 14.0 14.5 13.4 3.5 3.3 -1.5Afar 7.8 1.0 15.8 11.4 11.7 11.2 3.6 10.7 -4.6Amhara 10.9 12.2 9.7 15.2 18.3 12.0 4.3 6.1 2.3 Regions Average 7.1 7.3 7.6 11.7 14.1 9.4 Standard deviation 2.8 4.5 4.7 3.2 3.9 3.4 Coefficient of variation 0.4 0.6 0.6 0.3 0.3 0.4

Sources: CSA and NBE’s staff computation


NATIONAL BANK OF ETHIOPIAFig III. 3: Variation in Regional Annual Average Headline Inflation

In 2017/18, the regional simple average food & non-alcoholic beverages inflation rose to 14.1 percent from 7.3 percent recorded in 2016/17. Food & non-alcoholic beverages inflation was higher in SNNP, Beneshangule Gumz, Amhara, Oromia and Somali regional states than the regional average (Table 3.3).

Food & non-alcoholic beverages inflation was registered highest in SNNP (20.7 percent) and the lowest in Addis Ababa (8.8 percent) resulting 11.9 percentage point margin between food & non-alcoholic beverages inflation rates recorded in the two regional states.

Fig III 4: Variation in Regional Annual Average Food & Non-alcoholic Beverages Inflation


39

In the meantime, the regional simple average non-food inflation increased to 9.4 percent from 7.6 percent last year. Beneshangule Gumz, Somali, Amhara, Afar and Harari regional states recorded higher non-food inflation than the

regional simple average (Table 3.3).While Beneshangule Gumz recorded the highest non-food inflation (13.5 percent), Tigray enjoyed with the lowest non-food inflation (1.6 percent), showing 11.9 percentage point margin.

Fig III 5: Variation in Regional Annual Average Non-food Inflation




MONETARY AND FINANCIAL DEVELOPMENTS

41

IV. MONETARY AND FINANCIAL DEVELOPMENTS4.1 Monetary Developments and Policy

Notwithstanding, tighter monetary policy stance inflation has remained off-

target for the past eleven consecutive-months during 2017/18 fiscal year.

4.1.1 Developments in Monetary Aggregates

At the end of 2017/18, domestic liquidity, as measured by broad money supply (M2), reached Birr 740.6 billion depicting 29.2 percent annual expansion. This is mainly due to the surge in domestic credit by 24.3 percent. The high growth of domestic credit is attributed to 19.4 and 25.1 percent increase in both credit to the central government and credit to the non-central government, respectively (Table 4.2).

In 2017/18, all components of broad money has witnessed a surge. Narrow money rose by 29.7 percent due to the rise in demand deposits and currency outside banks, reflecting the growth in economic activities and improvements in money demand for transaction purposes. Similarly, quasi-money that

comprises savings and time deposits rose by 28.8 percent and reached Birr 459.5 billion by the close of the fiscal year. This is attributed to the increased capacity of banks in deposit mobilization driven by the opening of additional new branches (Table 4.1).



Table 4.1: Components of Broad Money

ParticularsYear Ended June 30 Annual Percentage Change

2014/15 2015/16 2016/17 2017/182015/16 2016/17 2017/18

(In Millions of Birr) Narrow Money Supply 154,706.3 178,609.7 216,794.6 281,154.7 15.5 21.4 29.7 . Currency Outside Banks 60,460.9 66686.2 73917.7 86417.3 10.3 10.8 16.9

. Demand Deposits (net) 94,245.4 111923.5 142876.5 194737.4 18.8 27.6 36.3

Quasi-Money 216,622.6 266,656.6 356,614.4 459,418.2 23.1 33.7 28.8 . Savings Deposits 174,632.0 217,034.3 293,431.7 382,549.4 24.3 35.2 30.4 . Time Deposits 41,990.6 49,622.3 63,182.7 76,868.8 18.2 27.3 21.7 Broad Money Supply 371,328.9 445,266.3 573,408.6 740,572.9 19.9 28.8 29.2

Source: National Bank of Ethiopia (NBE)

Source: NBE

43

Table 4.2: Factors Influencing Broad Money(In Millions of Birr)


2014/15 2015/16 2016/17 2017/18 2015/16 2016/17 2017/18

External Assets (net) 37,570.9 21,524.2 38,034.8 39,376.2 -42.7 76.7 3.5Domestic Credit 393,421.7 490,230.3 631156.2 784,633.1 24.6 28.7 24.3 . Claims on Central Gov’t (net) 30,735.3 47,548.4 85,441.8 102,002.8 54.7 79.7 19.4

. Claims on Non-Central Gov’t 362,686.5 442,682.0 545,714.4 682,630.3 22.1 23.3 25.1

Other Items (net) 59,663.8 66,488.3 100,721.6 83,436.4 11.4 51.5 -17.2Broad Money (M2) 371,328.9 445,266.3 573,408.6 740,572.9 19.9 28.8 29.2

Source: NBE


NATIONAL BANK OF ETHIOPIA4.1.2. Developments in Reserve Money and Monetary Ratios

In 2017/18, reserve money or base money witnessed an annual expansion of 19.1 percent. As a result, reserve money reached Birr 174.2 billion at the end of the fiscal year. This growth is attributed to 17.8 and 19.8 percent rise in deposits of banks at NBE and currency in circulation, respectively. In determinant wise, the increment in reserve money was the result of the rise in net domestic credit by 26.6 percent and net foreign assets 19.9 percent. Excess reserves of commercial banks reached Birr 26.7 billion at the end of June 2017/18.

The ratio of M2 to GDP3, an indicator of financial deepening, went up by 7.5 percent to reach 0.34 points in 2017/18, partly indicating the prudent monetary policy measures taken by the national bank. Compared to last year same period, the money multipliers defined

3 The 2017/18 GDP is estimated by assuming that 2016/17 GDP grew by an average GDP growth rates of 2013/14-2016/17.

as narrow money to reserve money reached 1.61 from 1.48 registered last year same period whereas ratio of broad money to reserve money showed slight increments and reached 4.25 from 3.92 position registered last year at the same period, reflecting improvements in deposit mobilization by commercial banks (Table 4.3).

45

4.2. Developments in Interest Rate

Due to the policy measure taken by the national bank of Ethiopia in October 2017, minimum and maximum deposit interest rates raised to 7.0 and 9.0 percent in 2017/18 fiscal year from 5.0 and 5.75 percent registered last year same period, respectively. Consequently, average interest rate on savings deposit registered to be 8.0 percent at the end of the fiscal year. Similarly, simple average lending interest rate reached 13.5 percent from 12.75 percent registered in 2016/17 fiscal year. Whereas weighted annual average interest rates on time and demand deposits show a slight adjustment and reached 8.09 and 0.04 percent respectively.

However, all real interest rates were negative as head line inflation was higher than the interest rates. The annual headline inflation rose to 14.7 percent at the end of 2017/18 from 8.8 percent in 2016/17. Consequently, the average real interest rate were negative at 6.7 percent for saving deposit, 6.6 percent for time deposit and 1.2 percent for lending interest rate (Table 4.4).


NATIONAL BANK OF ETHIOPIATable 4.3: Reserve Money and Monetary Ratios

(In Millions of Birr, where applicable)


2014/15 2015/16 2016/17 2017/18 2015/16 2016/17 2017/18 Reserve Requirement (CB’s) 18,250.4 21,745.4 28,280.8 36,385.8 19.2 30.1 28.7

Actual Reserve (CB’s) 27,562.6 34,999.4 54,977.9 63,117.8 27.0 57.1 14.8 Excess Reserve (CB’s) 9,312.2 13,253.9 26,697.1 26,732.0 42.3 101.4 0.1 Reserve Money 102,467.8 119,164.7 146,257.9 174,175.4 16.3 22.7 19.1 . Currency in Circulation 75,240.7 82,592.7 94,245.5 112,911.0 9.8 14.1 19.8

. Bank Deposits 27,227.1 36,572.0 52,012.4 61,264.5 34.3 42.2 17.8 Money Multiplier (Ratio): . Narrow Money to Reserve Money 1.51 1.50 1.48 1.61 -0.73 -1.12 8.91

. Broad Money to Reserve Money 3.62 3.74 3.92 4.25 3.11 4.92 8.46

Other Monetary Ratios (%):

. Currency to Narrow Money 39.08 37.34 34.10 40.16 -4.46 -8.67 17.77

. Currency to Broad Money 16.28 14.98 12.89 15.25 -8.02 -13.92 18.27

. Narrow Money to Broad Money 41.66 40.11 37.81 37.96 -3.72 -5.75 0.42

. Quasi Money to Broad Money 58.34 59.89 62.19 62.04 2.66 3.85 -0.26

M2/GDP Ratio* 0.29 0.29 0.32 0.34 1.86 8.91 7.48


* M2/GDP ratio for 2017/18 is calculated on the basis of estimated nominal GDP for the same year.

Source: NBE

47

Table 4.4: Interest Rate Structure of Commercial Banks(In percent per annum)

Rates 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

1. Deposit Rate

1.1 Savings Deposit (Simple Average) 5.38 5.38 5.38 5.38 5.38 5.38 8.00

Minimum 5.00 5.00 5.00 5.00 5.00 5.00 7.00

Maximum 5.75 5.75 5.75 5.75 5.75 5.75 9.00

1.2 Time deposit (Weighted Average) 5.55 5.66 5.66 5.77 5.59 5.54 8.09

Up to 1 year 5.48 5.57 5.55 5.71 5.53 5.43 8.05

1 -2 years 5.57 5.68 5.68 5.78 5.60 5.57 8.10

Over 2 years 5.61 5.74 5.74 5.81 5.64 5.63 8.13 1.3 Demand Deposit (Weighted

Average) 0.02 0.03 0.03 0.04 0.04 0.04 0.04

2. Lending Rate (Average) 11.88 11.88 11.88 11.88 12.75 12.75 13.50

Minimum 7.50 7.50 7.50 7.50 7.50 7.50 7.00

Maximum 16.25 16.25 16.25 16.25 18.00 18.00 20.00

3. T-bills (Nominal) 1.25 1.86 1.59 1.43 1.44 1.42 1.39

4. Headline Inflation (Year-onYear) 20.8 7.4 22.4 10.4 7.5 8.8 14.7

5. Real Rate of Interest on:

5.1 SavingDeposit (1.1 - 4) -15.43 -2.03 -17.07 -5.03 -2.13 -3.43 -6.70

5.2 Time Deposit (1.2 - 4) -15.25 -1.74 -16.79 -4.64 -1.91 -3.26 -6.61

5.3 Lending (2 - 4) -8.93 4.47 -10.57 1.47 5.25 3.95 -1.20

Source: NBE



Source: NBE

4.3 Developments in Financial Sector

Banks, insurance companies and micro-finance institutions were the major financial institutions operating in Ethiopia. The number of banks still remained 18, of which 16 are private and 2 are state-owned.

In 2017/18, banks opened 500 new branches, raising the total number of branches to 4757 from 4257 in the previous year. As a result, bank branch to population ratio stood at 1:20,286.54 people in 2017/18. About 35.3 percent of the total bank branches were located in Addis Ababa.

5 Total population is 96,503,000 as CSA estimation for 2018

Major branch expansion was undertaken by Wegagen bank (69 branches), followed by Dashen Bank (66 branches), Commercial Bank of Ethiopia (65 branches), Lion International Bank (52 braches), Cooperative Bank of Oromiya (45 branches), Awash International Bank (43 branches), Buna International Bank (33 branches) and Abyssinia Bank (31 branches). The share of private banks in total branch network rose to 68.8 percent from 66.6 percent last year signifying the steady growth in private banks branch (Table 4.5).

49

Total capital of the banking industry increased by 10 percent and reached Birr 85.8 billion by the end of June 2018 (Table 4.5).

Although, the number of insurance companies remained at 17, their branches increased to 532 following the opening of 40 new branches in 2017/18 alone. About 53.6 percent of insurance branches were situated in Addis Ababa and 84 percent of the

total branches were private owned. Insurance companies increased their total capital by 26.4 percent to Birr 5.5 billion of which the share of private insurance companies was 72.1 percent and that of public insurance company was 27.9 percent (Table 4.6).

Fig.IV.5: Branch Network and Capital of Banking System (2014/15-2017/18)

Source: Commercial Banks including DBE & Staff Computation



1. Public BanksCommercial Bank of Ethiopia 1028 282 1310 30.8 1051 324 1375 28.9 42,579.6 54.6 43,851.8 51.1Development Bank of Ethiopia 106 4 110 2.6 103 4 107 2.2 7,595.1 9.7 7,676.5 9.0

Total Public Banks 1134 286 1420 33.4 1154 328 1482 31.2 50174.7 64.4 51,528.3 60.12. Private BanksAwash International Bank 186 153 339 8.0 213 169 382 8.0 3,807.6 4.9 4,210.0 4.9 Dashen Bank 184 131 315 7.4 238 143 381 8.0 3,420.9 4.4 3,725.6 4.3 Abyssinia Bank 140 113 253 5.9 144 140 284 6.0 2,371.0 3.0 3,265.8 3.8 Wegagen Bank 139 84 223 5.2 174 118 292 6.1 2,824.5 3.6 3,195.7 3.7 United Bank 111 93 204 4.8 116 117 233 4.9 2,221.0 2.8 2,579.9 3.0 Nib International Bank 92 111 203 4.8 101 127 228 4.8 2,570.2 3.3 2,991.4 3.5 Cooperative Bank of Oromiya 232 55 287 6.7 270 62 332 7.0 1,281.7 1.6 1,924.6 2.2 Lion International Bank 110 48 158 3.7 145 65 210 4.4 1,163.5 1.5 1,479.7 1.7 Oromia International Bank 164 73 237 5.6 171 89 260 5.5 1,378.3 1.8 1,890.0 2.2 Zemen Bank 15 7 22 0.5 12 13 25 0.5 1,050.7 1.3 1,391.8 1.6 Buna International Bank 74 69 143 3.4 96 80 176 3.7 1,152.3 1.5 1,667.7 1.9 Berhan International Bank 114 63 177 4.2 76 92 168 3.5 1,536.3 2.0 1,936.5 2.3 Abay Bank 112 40 152 3.6 109 53 162 3.4 1,139.3 1.5 1,514.7 1.8 Addis International Bank 21 32 53 1.2 24 35 59 1.2 688.4 0.9 789.6 0.9 Debub Global Bank 19 19 38 0.9 22 21 43 0.9 373.1 0.5 614.3 0.7 Enat Bank 10 23 33 0.8 15 25 40 0.8 809.3 1.0 1,045.4 1.2

Total Private Banks 1,723 1,114 2,837 66.6 1,926 1,349 3,275 68.8 27,788.1 35.6 34,222.8 39.9 3.Grand Total Banks 2857 1400 4257 100 3,080 1677 4757 100.0 77,962.7 100.0 85,751.2 100.0

Addis Ababa Total

Addis AbabaTotal

% Share Regions

Capital

2016/17 2017/18

Table.4.5: Branch Network and Capital of the Banking System at the Close of June 30, 2018(Branch in Number and Capital in Millions of Birr)

2016/17 2017/18Banks

Branch Network

Regions%

Share%

ShareTotal

Capital%

ShareTotal

Capital

Source: Commercial Banks

51

2016/17 2017/18 % Change

A.A Regions Total A.A Regions Total A B B/A1 Ethiopian Ins. Cor. 20 55 75 25 60 85 1,056.0 1,530.0 44.92 Awash Ins.Com.S.C. 26 15 41 27 17 44 400.0 439.0 9.73 Africa Ins.Com S.C. 14 13 27 15 13 28 271.0 294.0 8.54 National Ins. Co. of Eth. 19 15 34 19 15 34 111.0 166.0 49.55 United Ins.Com. S.C 20 11 31 25 12 37 334.0 368.0 10.26 Global Ins. Com.S.C 8 7 15 8 8 16 128.0 148.0 15.67 Nile Ins.Com.S.C 19 20 39 20 20 40 320.0 436.0 36.38 Nyala Ins.Com.S.C 15 15 30 15 16 31 391.0 516.0 32.09 Nib Ins. Com.S.C 24 13 37 26 13 39 328.0 313.0 -4.610 Lion Ins. Com.S.C 16 15 31 16 15 31 83.0 131.0 57.811 Ethio-Life Ins.Com.S.c 15 4 19 15 5 20 100.0 112.0 12.012 Oromia Ins.Com.S.c 18 19 37 18 20 38 215.0 295.0 37.213 Abay Insurance 12 11 23 13 12 25 217.0 260.0 19.814 Berhan insurance S.C 9 2 11 9 4 13 91.0 112.0 23.115 Tsehay Insurance S.C 10 5 15 12 7 19 98.0 119.0 21.416 Lucy 7 4 11 11 4 15 116.0 129.0 11.217 Bunna Insurance S.C. 11 5 16 11 6 17 73.0 108.0 47.9

Total 263 229 492 285 247 532 4,332 5,476 26.4

Note: A.A=Addis Ababa

Table.4.6: Branch Network & Capital of Insurance Companies as at June 30, 2018

No.

Source: Insurance Companies

Capital

2017/18

Insurance Companies

2016/17

(Branch in Number and Capital in Millions of Birr)

Branch

Fig.IV.6: Branch Network and Capital of Insurance Companies (2014/15-2017/18)

Source: Insurance Companies& Staff Computation



4.3.1. Resource Mobilization

Total resources mobilized by the banking system in the form of deposit, borrowing and loan collection increased by 27.7 percent and reached Birr 298.2 billion at the end of 2017/18 (Table 4.8). Aided by remarkable branch expansion, deposit liabilities of the banking system topped Birr 730.3 billion, reflecting 28.4 percent annual growth rate. Saving deposits grew by 30.4 percent followed by demand deposits (27.6 percent) and time deposits (21.7 percent). Of the total deposits, saving deposits accounted for 52.4 percent, demand deposits 37.1 percent and time deposit (10.5 percent) (Table 4.9).

The share of private banks in deposit mobilization increased to 37.8 percent from 35.5 percent last year due to the opening of 435 new branches. CBE alone mobilized 62 percent of the total deposits due to its extensive branch

network.

Raising funds through borrowing by the banking industry was not an important source of resource mobilization in Ethiopia as most of the banks were sufficiently liquid due to increased deposit mobilization and collection of loans. However, total outstanding borrowing at the end of the fiscal year was Birr 65 billion up from Birr 39.8 billion a year earlier due to borrowing by Development Bank of Ethiopia. Of the total borrowing, domestic sources accounted for 89.5 percent and foreign sources 10.5 percent (Table 4.9).

On the other hand, banks’ loan collection reached Birr 111.6 billion, showing a 14.9 percent annual increment, of which 58.8 percent was collected by private banks (Table 4.8).

53

Public Banks Private Banks Total (A) Public Banks Private Banks Total (B) Public Banks Private Banks Total (C) C/A C/B1. Deposits (net change) 41,941.1 28,816.2 70,757.3 76,058.3 54,607.7 130,666.0 87,120.9 74,318.1 161,439.0 128.2 23.6 Demand 12,897.7 7,670.4 20,568.0 27,103.6 13,959.0 41,062.6 39,481.4 19,106.5 58,587.9 184.8 42.7 Savings 25,960.6 16,374.8 42,335.4 44,423.5 31,979.6 76,403.1 42,937.9 46,194.7 89,132.6 110.5 16.7 T ime 3,082.8 4,771.0 7,853.8 4,531.2 8,669.1 13,200.3 4,701.6 9,016.9 13,718.5 74.7 3.9 2. Borrowing (net change) 2,551.8 - 2,551.8 5,751.5 - 5,751.5 25,167.5 - 25,167.5 886.3 337.6 Local 1,855.9 - 1,855.9 5,656.1 - 5,656.1 23,140.7 - 23,140.7 1,146.8 309.1 Foreign 695.8 - 695.8 95.4 - 95.4 2,026.9 - 2,026.9 191.3 2,024.9 3. Collection of Loans 33,722.8 43,463.9 77,186.7 42,899.1 54,270.0 97,169.1 45,965.7 65,648.9 111,614.5 44.6 14.9 4. Total Resources Mobilized (1+2+3) 78,215.6 72,280.1 150,495.8 124,708.9 108,877.7 233,586.6 158,254.1 139,967.0 298,221.1 98.2 27.7 5. Disbursement 49,626.3 38,396.8 88,023.1 48,386.6 60,624.6 109,011.2 48,230.1 67,168.0 115,398.1 31.1 5.9 6. Change in Liquidity (4-5) 28,589.4 33,883.3 62,472.6 76,322.3 48,253.1 124,575.5 110,024.0 72,799.0 182,823.0 192.6 46.8 Memorandum Item:7. Outstanding Credit 170,719.9 93,181.7 263,901.6 188,366.8 134,640.5 323,007.4 212,449.7 182,105.8 394,555.5 49.5 22.2

(In Millions of Birr)Table 4.8: Annual Resource Mobilization & Disbursing Activities of Commercial Banks and DBE (Specialized Bank) as at June 30, 2018

Percent Change

Source: Commercial Banks & Staff Computation

Particulars

2015/16 2016/17 2017/18

2015/16 2016/17 2017/18 S/R T/SR S T

A. Deposits -Demand 171,019.5 212,082.1 270,670.0 24.0 27.6 -Savings 217,047.8 293,450.9 382,583.5 35.2 30.4 -Time 50,085.5 63,285.8 77,004.3 26.4 21.7T o t a l 438,152.7 568,818.7 730,257.7 29.8 28.4B. Borrowings -Local 29,328.4 34,984.4 58,125.1 19.3 66.1 -Foreign 4,726.8 4,822.2 6,849.1 2.0 42.0T o t a l 34,055.2 39,806.6 64,974.2 16.9 63.2

(In Millions of Birr)Table 4.9: Deposits and Borrowings of Commercial Banks and Specialized Bank as at June 30, 2018




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55

4.3.2 New Lending Activities

Commercial Banks and Development Bank of Ethiopia (DBE) disbursed Birr 115.4 billion in fresh loans which was 5.9 percent higher than a year ago. Of the total new loans, about 58.2 percent was provided by private banks and 41.8 percent by the two public banks (Table 4.10).

About 26.4 percent of the loans went to industry followed by domestic trade (17.3 percent), international trade (16.1 percent), other sectors (11 percent), housing and construction (10.6 percent) and agriculture (9.9 percent) while the remaining balance went to other economic sectors (Table 4.12).

Fig.IV.7: Development in Deposit Mobilization, Lending and Loan Collection Activities of the Banking System (2010/11-2017/18)

0

10000

20000

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40000

50000

60000

70000

80000

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Valu

e in

Mill

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of B

irr

Year & Bank Ownership

Fig IV.7: Development in Deposit Mobilization, Lending and Loan Collection Activities of Banking System (2010/11-2017/18)

Net Deposit Lending Loan collection

Source: Commercial Banks and DBE



Table 4.11: Percentage Share of Loans and Advances by Lenders

D* C* O/S* D* C* O/S*A B C D E F D/A E/B F/C

A.Public Banks1.Commercial Bank of Ethiopia 39.278 39.2 47.7 35.8 37.1 43.9 -8.9 -5.4 -8.02.Development Bank of Ethiopia 5.109 4.9 10.6 6.0 4.1 9.9 17.9 -17.0 -6.3Sub-Total 44.4 44.1 58.3 41.8 41.2 53.8 -5.8 -6.7 -7.7

B.Private Banks3 Awash International Bank 6.1 7.2 7.0 4.2 7.5 7.9 -30.9 4.0 13.24. Dashen Bank 8.0 8.1 5.6 8.6 7.5 5.8 8.2 -7.3 4.55. Bank of Abyssinia 4.9 3.0 4.4 4.1 3.4 4.6 -17.9 14.7 4.66. Wegagen Bank 3.6 5.8 3.2 5.4 5.4 3.8 48.3 -6.3 18.87. United Bank 4.6 6.2 3.7 4.2 6.5 3.7 -8.1 5.1 0.48. Nib International Bank 6.2 4.7 3.4 5.4 4.4 3.5 -13.0 -5.8 3.09. Cooperative Bank of Oromia 6.8 4.8 3.1 7.8 5.9 3.8 15.3 23.4 23.810. Lion Interenational Bank 2.4 2.6 1.7 2.6 2.9 1.9 6.3 11.6 10.611. Oromia International Bank 1.7 2.2 1.3 1.8 1.9 1.3 8.9 -10.6 2.012. Zemen Bank 3.0 3.0 2.2 4.4 4.1 2.9 46.3 37.0 32.313.Berhan International Bank 2.5 2.8 1.7 3.1 3.2 1.8 22.3 15.8 9.014.Bunna International Bank 2.1 1.5 1.6 2.4 1.6 1.8 16.0 5.7 8.815. Abay Bank 1.7 1.8 1.3 1.6 2.0 1.5 -9.2 12.8 12.116. Addis International Bank 0.4 0.6 0.5 0.5 0.5 0.5 20.7 -14.6 6.317. Debub Global Bank 0.6 0.6 0.2 1.2 0.6 0.4 0.0 0.0 0.018. Enat Bank 1.1 1.2 0.8 1.1 1.4 0.8 0.0 0.0 0.0Sub-Total 55.6 55.9 41.7 58.2 58.8 46.2 4.7 5.3 10.7Grand Total 100.0 100.0 100.0 100.0 100.0 100.0 0.0 0.0 0.0Source: Commercial BanksD*=Disbursement, C*=Collection, O/S*= Outstanding Credit

Lenders

2016/17Percentage change

2017/18

4.3.3 Outstanding Loans

Total outstanding credit of the banking system including to the central government increased by 22.8 percent and reached Birr 449 billion at the end of June 2018. Excluding central government, credit to industry accounted for 39.3 percent followed by international trade (19.8 percent), domestic trade (11.4 percent), housing

and construction (11 percent), others sectors (5.8 percent) and agriculture (4.9 percent) (Table 4.12).

The share of private sector in outstanding credit was Birr 284.5 billion (or 63.4 percent) reflecting a 23 percent year-on-year growth (Table 4.13).

57

Table 4.12: Loans & Advances by Economic Sectors

D* C* O/S* D* C* O/S* D* C* O/S*A B C D E F D/A E/B F/C

Government Deficit Financing 0 0 42,593.8 0 0 54,398.5 - - 27.7 Agriculture 13,133.7 13,962.6 20,041.8 11,401.9 14,073.7 19,511.8 (13.2) 0.8 (2.6) Industry 25,035.6 20,942.8 129,977.7 30,503.0 24,413.5 154,904.4 21.8 16.6 19.2 Domestic Trade 23,608.9 18,399.2 41,830.1 19,935.9 21,336.8 44,945.3 (15.6) 16.0 7.4 International Trade 13,494.8 20,993.9 52,207.7 18,606.2 23,135.2 77,976.5 37.9 10.2 49.4 Export 6,062.2 10,478.0 30,017.5 11,603.2 13,375.1 47,774.1 91.4 27.6 59.2 Import 7,432.7 10,515.9 22,190.2 7,003.0 9,760.1 30,202.5 (5.8) (7.2) 36.1 Hotels and Tourism 2,213.4 2,390.9 5,852.8 2,197.9 2,629.0 9,856.6 (0.7) 10.0 68.4 Transport and Communication 6,924.9 4,901.9 14,275.4 4,525.6 5,644.1 13,826.9 (34.6) 15.1 (3.1) Housing and Construction 13,583.6 10,521.0 37,970.6 12,281.4 12,434.2 43,572.6 (9.6) 18.2 14.8 Mines, Power and Water resource 363.4 179.8 225.1 319.5 142.1 221.9 (12.1) (21.0) (1.5) Others 8,452.9 3,938.9 16,373.4 12,674.1 6,353.8 23,044.3 49.9 61.3 40.7 Personal 2,199.8 938.1 4,252.8 2,952.6 1,452.1 6,695.2 34.2 54.8 57.4 Total 109,011.2 97,169.2 365,601.2 115,398.1 111,614.5 448,954.1 5.9 14.9 22.8

D*=Disbursement, C*=Collection, O/S*= Outstanding CreditSource: Commercial Banks & Staff Computation

2016/17 2017/18 Percentage ChangeEconomic Sectors

(In Millions of Birr)

-

50,000.0

100,000.0

150,000.0

200,000.0

250,000.0

300,000.0

350,000.0

400,000.0

2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

In M

illion

s of

Birr

Fiscal Years

Fig.IV.8: Sectoral Breakdown of Bank Credit (2006/07-2017/18)

Agriculture Others Housing & Construction

International Trade Domestic Trade & Services Industry



Table 4.13: Loans and Advances by Borrowers

2014/15 2015/16 2016/17

O/S* O/S* O/S* D* C* O/S*

A B C E F G G/B G/C

Central Government 15,514.4 16,471.6 42,593.8 - 0.0 54,398.5 230.3 27.7

Public Enterprises 69,841.6 84,675.6 91,771.6 18,093.4 13,631.0 110,092.5 30.0 20.0

Cooperatives 13,850.7 13,704.4 13,477.1 12,261.4 13,756.7 16,724.6 22.0 24.1

Private & Individuals 133,618.1 165,467.4 217,758.7 85,043.2 84,226.8 267,738.5 61.8 23.0

Total 232,824.8 280,319.0 365,601.2 115,398.0 111,614.5 448,954.0 60.2 22.8

D*=Disbursement, C*=Collection, O/S*= Outstanding Credit

2017/18

Borrowing SectorPercentage change



4.4. Financial Activities of NBE

As of June 2018, gross claims of NBE on the central government reached Birr 160.1 billion which was 18.1 percent higher than a year earlier. Of the total credit to the central government, direct advance accounted for 95.1 percent and that of bond 4.9 percent.

Similarly, NBE’s outstanding claim on DBE was birr 47.3 billion showing 77.7

percent increase over the preceding year.

On the liability side, total deposits at NBE increased by 7.4 percent and amounted birr 81.6 billion as a result of 8.3 percent growth in deposits in financial institutions and 4.7 percent rise in government deposit (Table 4.14).

59

2015/16 2016/17 2017/18

A B C B/A C/B

Loans and Advances (1+2) 134,687.4 162,247.8 207,421.6 20.5 27.8

1.Claims on Central Gov’t 109,080.4 135,640.8 160,128.8 24.3 18.1

1.1 Direct Advance 100,764.9 127,764.9 152,264.9 26.8 19.2

1.2 Bonds 8,315.5 7,875.9 7,863.9 -5.3 -0.2

2. Claims on DBE 25,607.0 26,607.0 47,292.7 3.9 77.7

3. Deposit Liabilities 51,697.0 75,987.7 81,596.5 47.0 7.4

3.1 Government 14,042.3 19,031.5 19,922.0 35.5 4.7

3.2 Financial Institutions 37,654.7 56,956.2 61,674.5 51.3 8.3

Particulars % Change

Source: NBE and Staff Computation

( In Millions of Birr)Table 4.14: Financial Activities of National Bank of Ethiopia at the Close of June 30, 2018

4.5 Developments in Financial Markets

Although there is no secondary market in Ethiopia, government bonds are occasionally issued to finance

government expenditures and/or to absorb excess liquidity in the banking system.

4.5.1. Treasury Bills Market

The amount offered and demanded in the Treasury-bill market showed a similar development. The amount of Treasury-bills offered registered 36.2 percent rise and reached Birr 286.5 billion in 2017/18. Similarly, the amount of T-bills demanded in the weekly auction market exhibited 43.8 percent growth and stood at Birr 324.0 billion. The amount of T-bills sold during the year stood at Birr 324.0 billion indicating the market was oversubscribed by Birr 37.5 billion (6.14 percent).

At the end of 2017/18, the total outstanding T-bills went up by 51.8 percent and stood at Birr 111.2 billion.

The dominance of non-bank institutions in the T-bill market continued in the review year. Accordingly, the Non-bank institution constituted the entire amount of the total outstanding T-bills (Table 4.15).

The average weighted yield of the four types of bills declined slightly to 1.416 from 1.424 percent, a mere 0.567 percent down from last year (Table 4.15).

The highest yield was recorded for the 364-day T-bill while the lowest yield was for 182-day T-bill with a corresponding rate of 3.000 and 0.622 percent, respectively.


NATIONAL BANK OF ETHIOPIATable 4.15: Results of Treasury Bills Auction

Source: NBE

61

Fig IV.9: Treasury Bills Auction Result

Source: NBE

4.5.2 NBE Bill Market

On April 4, 2011, NBE has introduced NBE-Bill market so as to mobilize resource from private banks for financing of priority sectors which are identified as the driving forces of the economy. Following the introduction

of the NBE Bill market, the total NBE bill purchased by the banking sector reached Birr 21.01 billion at the end of 2017/18.

4.5.3. Bonds Market

During 2017/18 FY, corporate bond purchase of CBE showed 19.8 percent annual increase and reached to Birr 57.4 billion.

In the same year, corporate bond redeemed by City Government of Addis Ababa, Railway Corporation, EEPCO and regional government reached Birr 2.94 billion, 781.4 million, Birr 50.0 million, and Birr 36.5 million showing 36.7 percent annual decline, 894.5 percent

increase, 100 percent rise and 51.2 percent decline respectively (Table 4.16). As a result, total outstanding bond holdings, registered 22.6 percent annual growth and amounted to Birr 291.4 billion. Of the outstanding corporate bond, EEPCO accounted for 74.2 percent, City government of Addis Ababa 15.5 percent, Railway Corporation 10 percent and Regional governments 0.2 percent.

Year


NATIONAL BANK OF ETHIOPIA Table 4.16: Disbursement, Redemption and Outstanding of Coupon and Corporate Bond of CBE

)In Millions of Birr(

ParticularsAnnual Annual Percentage

Change2015/16 2016/17 2017/18

B/AActual A B1. Corporate Bond Purchases by holders 43,023.9 47,951.1 57,448.9 19.8EEPCO 28,000.0 32,100.0 37,100.00 15.6Regional governments - - -Development Bank of Ethiopia - - - -City Government of Addis Ababa 12,575.0 12,300.0 9,300.00 (24.39)Railway Corporation 2,448.9 3,551.1 11,048.91 311.14Private Sector - 0.0 - -2. Redemption of Bonds by Clients 6,963.4 4,801.1 3,808.6 -20.7EEPCO - 0.0 50.00 -Regional governments 380.6 74.7 36.49 -51.2Development Bank of Ethiopia 43.4 0.0 -City Government of Addis Ababa 6,539.4 4,647.80 2,940.70 -36.73Railway Corporation - 78.6 781.36 894.47Private Sector - - - -3. Outstanding Bonds by Clients 188,749.7 237,784.6 291,425.0 22.6EEPCO 143,100.0 179,300.0 216,350.0 20.7Regional governments 700.8 625.4 589.0 -5.8Development Bank of Ethiopia - - - -City Government of Addis Ababa 29,500.0 38,937.8 45,297.1 16.3Railway Corporation 15,448.9 18,921.4 29,189.0 54.3Private Sector - - - -

Source: Commercial Bank of Ethiopia

63

4.5.4. Inter-bank Money Market

The interbank money market remained inactive in Ethiopia due to the existence of excess reserves in the banking system. Accordingly, there was no transaction in the inter-bank money market after April 2008. Since its introduction in September 1998, merely twenty three transactions worth

Birr 259.2 million were transacted with interest rates ranging between 7 to 11 percent per year. The maturity period of these loans widely spanned from overnight to 5 years (Table 4.17).

Table 4.17: Interbank Money Market Transactions up to June 30, 2012

Borrower Lender

Amount Borrowed (In

Thousand Birr)

Interest Rate %

Date of Transaction

Maturity Period

Nib International Bank Awash International Bank 7,000.0 11 16/11/00 OvernightWegagen Bank Commercial Bank of Ethiopia 10,000.0 8 3/1/2001 5 years

Nib International Bank ,, 10,000.0 8 3/31/2001 3 months

Wegagen Bank ,, 10,000.0 8 3/22/2001 1 year



Nib International Bank ,, 778.0 8 30-11-2001 6 months

Nib International Bank Bank of Abyssinia 28,999.8 7 31/12/02 3.5 months




Nib International Bank Commercial Bank of Ethiopia 25,000.0 7.5 7/7/2003 5.2 monthsNib International Bank Bank of Abyssinia 50.1 7.5 26/03/2005 openNib International Bank Bank of Abyssinia 50.5 7.5 26/03/2005 openWegagen Bank Awash International Bank 19,744.6 7.5 December, 2006 21/05/07Wegagen Bank Awash International Bank 19,870.4 7.5 January, 2007 21/05/07Wegagen Bank Awash International Bank 10,937.2 7.5 February, 2007 21/05/07Awash International Bank Nib International Bank 30,000.0 7.5 February, 2007 18/08/07Wegagen Bank Awash International Bank 10,931.4 7.5 March, 2007 21/05/07Nib International Bank Awash International Bank 142.0 8.5 January, 2008 25/4/08Nib International Bank Awash International Bank 7.0 8.5 February, 2008 25/04/08Nib International Bank Awash International Bank 3.0 8.5 March, 2008 25/04/08Nib International Bank Awash International Bank 17.0 8.5 April,2008 25/04/08Total/Average - 259,174.8 7.87 - -

Source: Commercial Bank of Ethiopia



DEVELOPMENTS IN EXTERNAL SECTOR

65

V. DEVELOPMENTS IN EXTERNAL SECTOR

5.1 Overall Balance of Payments

During 2017/18, the overall balance of payments recorded USD 201.6 million deficit against the USD 658.6 million surplus in the previous year. This was mainly due to 14.1 and 7.2 percent decline in net official transfers and net capital account, respectively.However, merchandise trade deficit narrowed by 3.7 percent. Net services registered USD 140.2 million

deficit, showing strong improvement compared to the USD 557.6 million deficit recorded last year. At the same time, net private transfer increased by 10.7 percent. As a result, current account deficit (including official transfers) narrowed to USD 5.3 billion from USD 6.5 billion and its share in the 2017/18 GDP projection stood at 5.7 percent.


NATIONAL BANK OF ETHIOPIATable 5.1: Balance of Payments1

(In Millions of USD)

S/N Particulars2015/16 2016/17* 2017/18 Percentage ChangeA B C B/A C/B

1 Exports, f.o.b. 2,867.7 2,907.5 2,839.8 1.4 -2.3 Coffee 722.7 883.2 839.0 22.2 -5.0

Other 2,145.0 2,024.3 2,000.8 -5.6 -1.2

2 Imports 16,725.2 15,802.6 15,253.4 -5.5 -3.5 Fuel 1,339.0 1,823.6 2,317.3 36.2 27.1

Cereals 1,032.7 554.1 771.7 -46.3 39.3

Aircraft 162.9 150.3 282.3 -7.7 87.8

Imports excl. fuel, cereals, aircraft 14,190.6 13,274.5 11,882.1 -6.5 -10.5

3 Trade Balance (1-2) -13,857.5 -12,895.1 -12,413.5 -6.9 -3.74 Services, net -621.5 -557.6 -140.2 -10.3 -74.9 Non-factor services, net -245.3 -61.3 237.1 -75.0 -486.5

Exports of non-factor services 3,196.4 3,331.1 4,219.5 4.2 26.7

Imports of non-factor services 3,441.8 3,392.5 3,982.5 -1.4 17.4

Income, net -376.1 -496.3 -377.3 31.9 -24.0

O/w Gross official int. payment 377.2 465.9 417.5 23.5 -10.4

Dividend, net -12.1 -48.9 -0.1 303.7 -99.9

5 Private transfers, net 6,428.6 5,485.3 6,074.8 -14.7 10.7 o/w: Private Individuals 4,420.3 4,427.5 5,121.4 0.2 15.7

6Current account balance excluding off. Transfers (3+4+5) -8,050.41 -7,967.5 -6,479.0 -1.0 -18.7

7 Official transfers, net 1,391.1 1,428.3 1,226.3 2.7 -14.18 Current account balance including official transfers(6+7) -6,659.3 -6,539.1 -5,252.6 -1.8 -19.79 Capital account 6,577.7 6,895.1 6,397.4 4.8 -7.2 Off. Long-term Cap., net 1,631.4 1,418.0 1,631.6 -13.1 15.1

Disbursements 1,733.8 1,534.5 1,794.7 -11.5 17.0

Amortization 102.4 116.6 163.1 13.8 39.9

Other pub. long-term cap. 1,116.8 673.5 937.0 -39.7 39.1

Private sector, long term 450.8 502.8 250.7 11.5 -50.1

Foreign Direct Investment(net) 3,268.69 4,170.80 3,723.44 27.60 -10.7

Sort term Capital 110.0 130.0 -145.2 18.2 -211.7

10 Errors and omissions -749.3 302.7 -1,346.4 11 Overall balance (8+9+10) -830.9 658.6 -201.6

12 Financing 830.9 -658.6 201.6

13 Reserves [ Increase(-), Decrease (+)] 830.9 -658.6 201.6

14 Central Bank (NFA) 975.6 -555.7 -17.3

Asset -152.6 204.7 349.8

Liabilities 1,128.2 -760.4 -367.1

15 Commercial banks (NFA) -144.7 -103.0 218.9

16 Debt Relief

Principal

Interest

Source: NBE Staff Compilation

1 2017/18 data are Preliminary*Some items are revised

67

Table 5.2: Components of Current Account as Percentage of GDP

Particulars2015/16 2016/17 2017/18*

Percentage Change

A B C B/A C/B

Exports 3.9 3.6 3.1 -8.1 -14.0

Imports 22.9 19.6 16.7 -14.4 -15.0

Trade Balance -19.0 -16.0 -13.6 -15.7 -15.3

Net Services -0.9 -0.7 -0.2 -18.7 -77.9

Net Private Transfers 8.8 6.8 6.6 -22.7 -2.5Current Account Deficit (excluding official transfers) -11.0 -9.9 -7.1 -10.3 -28.4Current Account Deficit (including official transfers) -9.1 -8.1 -5.7 -11.0 -29.3

Source: NBE Staff Compilation *GDP is a forecast

Source: NBE Staff Computations


NATIONAL BANK OF ETHIOPIA5.2. Developments in Merchandise Trade

5.2.1 Balance of Trade

Merchandise trade deficit in 2017/18 amounted USD 12.4 billion, depicting 3.7 percent improvement over the preceding fiscal year. This was mainly attributed to the reduction of import

bills. As a result, merchandise trade deficit to GDP ratio declined by 2.4 percentage point and stood at 13.6 percent.

5.2.2 Merchandise Export

Total merchandise export earnings declined by 2.3 percent over last year due to lower earnings from export of coffee (5.0 percent), pulses (3.7 percent), gold (52.0 percent), live-animals (9.6 percent), chat (3.6 percent) and other export items (2.9 percent). Hence, the ratio of merchandise export to GDP declined to 3.1 percent from 3.6 percent a year ago.

Specifically, earnings from export of coffee dropped by 5.0 percent wholly due to 10.1 percent decline in its international price despite 5.7 percent increase in its export volume. As a result, the share of coffee in total merchandise export slightly contracted to 29.5 percent from 30.4 percent recorded last year.

Earnings from pulses export also decreased by 3.7 percent to USD 269.5 million solely due to 13.7 percent fall in international price despite 11.5 percent growth in export volume. Hence, the share of pulses in total merchandise export earnings stood at 9.5 percent compared to 9.6 percent share a year earlier.

Similarly, the revenue from export of gold showed 52 percent reduction and amounted USD 100.2 million, driven wholly by 52.8 percent contraction in volume of export despite a 1.6 percent rise in international price. Thus, the share of gold in total merchandise export shrunk to 3.5 percent from 7.2 percent. Chat export earnings declined by 3.6 percent and amounted USD 263.2 million. This was wholly due to 3.7 percent drop in volume of export. Yet, its share in total merchandise export stood 9.3 percent compared to 9.4 percent share recorded last year.

The proceeds from export of live-animals showed 9.6 percent reduction resulting from 11.4 percent contraction in export volume against 2.1 percent rise in world price. Hence, the revenue from live-animals accounted for 2.2 percent of the total merchandise export compared to 2.3 percent share a year ago.

On the other hand, export revenue from oilseeds increased by 20.6 percent and reached USD 423.5 million aided by 15.4 and 4.5 percent rise in international price and export volume,

69

respectively. Hence, the share of oilseeds in total merchandise export improved to 14.9 percent from 12.1 percent recorded last year.

Similarly, earning from export of leather & leather products registered 16.1 percent increment owing to 8.7 percent expansion in export volume and 6.9 percent rise in international price. Consequently, the share of leather & leather products in total merchandise export revenue marginally improved to 4.7 percent from 3.9 percent.

Likewise, earning from export of flower showed 4.6 percent increment over last year. This was attributed to improvements in both export volume (1.5 percent) and international price (3.1 percent). As a result, the share of flower in total export earnings marginally rose to 8.0 percent from 7.5 percent last year.

Receipts from meat & meat products grew by 3.1 percent on account of

1.0 percent increase in global price and 2.0 percent growth in volume of exports. As a result, export of meat & meat products constituted 3.6 percent of the total merchandise export earnings.

Export earnings from fruits and vegetables increased by 9.5 percent vis-à-vis last year driven by 5.8 percent expansion in export volume and 3.5 percent improvement in international price. Thus, the share of fruits and vegetables in total merchandise export earnings rose to 2.2 percent from 1.9 percent last year.

Finally, earnings from electricity export increased by 14.9 percent vis-à-vis last year owing to 16.1 percent growth in export volume despite a 1.1 percent fall in international price. As a result, export of electricity accounted for 3 percent of the total merchandise export earnings compared to 2.5 percent share last year.


NATIONAL BANK OF ETHIOPIATable 5.3 Values of Major Export Items

(In millions of USD)

Particulars2015/16 2016/17 2017/18 Percentage

Change A %share B %share C %share B/A C/B

Coffee 722.7 25.2 883.2 30.4 839.0 29.5 22.2 -5.0Oilseeds 477.2 16.6 351.0 12.1 423.5 14.9 -26.4 20.6Leather and Leather products 115.3 4.0 114.0 3.9 132.4 4.7 -1.1 16.1Pulses 232.4 8.1 279.9 9.6 269.5 9.5 20.5 -3.7Meat & Meat Products 96.4 3.4 98.7 3.4 101.7 3.6 2.3 3.1Fruits & Vegetables 53.7 1.9 56.1 1.9 61.4 2.2 4.5 9.5Live Animals 147.8 5.2 67.6 2.3 61.1 2.2 -54.2 -9.6Chat 262.5 9.2 273.0 9.4 263.2 9.3 4.0 -3.6Gold 290.7 10.1 208.8 7.2 100.2 3.5 -28.2 -52.0Flower 225.3 7.9 218.5 7.5 228.6 8.0 -3.0 4.6Electricity 31.5 1.1 73.4 2.5 84.3 3.0 133.0 14.9Others 212.3 7.4 283.2 9.7 275.0 9.7 33.4 -2.9Total Export 2867.7 100.0 2907.5 100.0 2839.8 100.0 1.4 -2.3Total Export Excluding Electricity 2836.3 2834.1 2755.6 -0.1 -2.8

Source: Ethiopian Revenue and Customs Authority and Ethiopian Electric Power

Source: NBE Staff Computation

71

20.6



NATIONAL BANK OF ETHIOPIATable 5.4: Volume of Major Exports

(In millions of kg unless stated otherwise)

Particulars2015/16 2016/17 2017/18 Percentage Change

A B C B/A*100-100

C/B*100-100

Coffee 198.7 225.7 238.6 13.6 5.7Oilseeds 436.6 333.5 348.5 -23.6 4.5Leather and Leather products 6.0 5.9 6.4 -1.6 8.7Pulses 375.4 392.7 438.1 4.6 11.5Meat & Meat Products 19.0 19.6 20.0 3.2 2.0Fruits & Vegetables 167.1 178.6 189.0 6.9 5.8Live Animals 77.8 36.1 31.9 -53.6 -11.4Chat 47.0 48.8 47.0 3.9 -3.7Gold(in mill of grams) 8.6 6.0 2.8 -30.4 -52.8Flower 50.6 49.4 50.1 -2.5 1.5Electricity(in mill of kwh) 511.3 1305.5 1516.2 155.3 16.1

Source: Ethiopian Revenue and Customs Authority and Ethiopian Electric Power


73

Table 5.5: Unit Value of Major Export Items )In USD/kg unless stated otherwise(

Particulars2015/16 2016/17 2017/18 Percentage Change

A B C B/A*100-100 C/B*100-100Coffee 3.6 3.9 3.5 7.5 -10.1Oilseeds 1.1 1.1 1.2 -3.7 15.4Leather and Leather products 19.3 19.4 20.7 0.5 6.9Pulses 0.6 0.7 0.6 15.1 -13.7Meat & Meat Products 5.1 5.0 5.1 -0.8 1.0Fruits & Vegetables 0.3 0.3 0.3 -2.2 3.5Live Animals 1.9 1.9 1.9 -1.3 2.1Chat 5.6 5.6 5.6 0.1 0.1Gold 33.9 35.0 35.5 3.2 1.6Flower 4.5 4.4 4.6 -0.5 3.1Electricity 0.1 0.1 0.1 -8.8 -1.1

Source: Ethiopian Revenue and Customs Authority



NATIONAL BANK OF ETHIOPIA5.2.3. Import of Goods

Total merchandise import bills amounted USD 15.3 billion depicting 3.5 percent annual decline. This was mainly on account of lower import of capital, consumer and semi-finished goods. As a result, total import to GDP ratio shrunk to 16.7 percent from 19.6 percent last year.

Import bills of capital goods dropped by 12.7 percent driven by lower import of transport goods (20.9 percent), agricultural goods (32.1 percent) and industrial goods (9.7 percent). Thus, the share of capital goods in total merchandise import bills fell to 34.5 percent from 38.2 percent a year ago.

Import bills of consumer goods amounted USD 4.7 billion showing 3.9 percent deceleration over last year owing to lower import of durable consumer goods (20.9 percent) against the increase in non-durable consumer goods (5.2 percent). As a result, the share of consumer goods in total

merchandise import bills remained nearly at 31 percent.

Similarly, semi-finished goods import slowed down by 3.5 percent to USD 2.5 billion and its share in the total merchandize import remained unchanged at 16.6 percent. However, import of fertilizer, increased by 30.0 percent over last year.

On the other hand, import of raw materials increased by 9.8 percent relative to the preceding year and accounted for 0.9 percent of the total merchandise import.

Fuel import bills also surged by 27.1 percent and amounted to USD 2.3 billion. This was attributed to the increase in both international price (16.1 percent) and import volume (9.5 percent). As a result, fuel import accounted for 15.2 percent of the total merchandise import compared to 11.5 percent last year same period.

75

Table 5.6: Value of Imports by End Use)In Millions of USD(

Categories

2015/16 2016/17 2017/18 Percentage change

A % share B % share C % share B/A C/BRaw Materials 149.3 0.9 125.6 0.8 138.0 0.9 -15.8 9.8Semi-finished Goods 2,895.5 17.3 2,620.6 16.6 2,527.8 16.6 -9.5 -3.5 Fertilizers 430.0 2.6 367.9 2.3 478.5 3.1 -14.4 30.0Fuel 1,339.0 8.0 1,823.7 11.5 2,317.3 15.2 36.2 27.1 Petroleum Products 1,280.1 7.7 1,743.7 11.0 2,225.3 14.6 36.2 27.6 Others 58.9 0.4 79.9 0.5 92.0 0.6 35.7 15.1Capital Goods 6,829.4 40.8 6,032.1 38.2 5,269.1 34.5 -11.7 -12.7 Transport 1,535.6 9.2 1,429.7 9.0 1,130.9 7.4 -6.9 -20.9 Agricultural 83.4 0.5 75.8 0.5 51.5 0.3 -9.1 -32.1 Industrial 5,210.4 31.2 4,526.7 28.6 4,086.7 26.8 -13.1 -9.7Consumer Goods 5,264.3 31.5 4,898.3 31.0 4,707.0 30.9 -7.0 -3.9 Durables 1,567.3 9.4 1,707.8 10.8 1,351.7 8.9 9.0 -20.9 Non-durables 3,697.0 22.1 3,190.5 20.2 3,355.3 22.0 -13.7 5.2Miscellaneous 247.8 1.5 302.3 1.9 294.2 1.9 22.0 -2.7Total Imports 16,725.2 100.0 15,802.7 100.0 15,253.4 100.0 -5.5 -3.5

Source: Ethiopian Revenue and Customs Authority and Ethiopian petroleum Enterprise

5.2.4 Direction of Trade

5.2.4.1 Export of Goods

The major export destinations for Ethiopian goods were Asia, Europe and Africa. Asia accounted for 39.8 percent of the total exports. China, mainland was the largest market for Ethiopia’s export with a 21.3 percent share in total export earnings from Asia, followed by Saudi Arabia (16.8 percent), United Arab Emirates (9.8 percent), Israel (8.6 percent), Japan (8.0 percent), India (5.5 percent), South Korea (4.1 percent),

Yemen (4.1 percent), Indonesia (3.4 percent) and Hong Kong (1.5 percent). All these countries accounted for 83.1 percent of Ethiopia’s total export to Asia.

Europe accounted for 28.7 percent of Ethiopia’s total export revenue, Netherlands taking a 23.5 percent share, followed by Germany (22.2 percent), Switzerland (12.4 percent), Belgium (8.9 percent), Italy (7.0 percent), Turkey (5.9 percent), United


NATIONAL BANK OF ETHIOPIAKingdom (5.5 percent), France (3.9 percent) and Russia (2.2 percent). These countries together had a 91.6 percent share of Ethiopia’s total exports to Europe.

On the other hand, about 20.9 percent of Ethiopia’s export earnings originated from markets in Africa, mainly Somalia (38.5 percent), Djibouti (21.1 percent), Sudan (17.4 percent), Kenya (7.0

percent), Nigeria (2.4 percent), Egypt (1.7 percent) and South Africa (1.4 percent) which altogether accounted for 89.6 percent of the total exports to Africa.

America accounted for 9.9 percent of Ethiopia’s total export earning, of which 90.1 percent was from exports to the United States and 6.2 percent to Canada.


77

5.2.4.2 Import of Goods

During 2017/18, Asia accounted for 64.2 percent of the total imports of Ethiopia. The major imports from Asia originated from China (39.3 percent), Kuwait (12.6 percent), India (10.1 percent), U.A.E (5.4 percent), Japan (5.3 percent), Saudi-Arabia (3.6 percent), Malaysia (3.3 percent), South Korea (2.4 percent), Indonesia (2.3 percent) and Thailand (1.8 percent) whose combined share was 86.3 percent.

Imports from Europe accounted for 19.3 percent of Ethiopia’s total imports with the major countries, namely Turkey (20.1 percent), Italy (17.5 percent), Germany (9.4 percent), United Kingdom (7.9 percent), Netherlands (7.8 percent), France (6.2 percent), Ukraine (4.3 percent), Belgium (3.9 percent), Russia (3.1 percent) and Rumania (3.0 percent), these countries

jointly accounted for 83.3 percent of Ethiopia’s total imports from Europe.

Imports from America accounted for 9.4 percent of the total import bill, of which the share of United States was 83.7 percent followed by Brazil and Canada by 9.8 percent and 5.1 percent, respectively.

Africa accounted for about 7.0 percent of Ethiopia’s total merchandise import. The major countries of origin were Egypt (27.6 percent), Morocco (27.1 percent), South Africa (27.0 percent), Sudan (8.8 percent) Nigeria (3.6 percent) and Kenya (3.2 percent), which altogether constituted 97.2 percent of the total imports from the continent.




5.3 Services and Transfers

5.3.1 Services

In 2017/18, net services account recorded USD 140.2 million deficit, which was narrower than the USD 557.6 million deficit recorded a year ago.

This was largely due to the surplus in net travel against the deficit recorded last year, higher surplus in transport services (35.2 percent), coupled with improvements in the deficits of other services and investment income.

79

Table 5.7 Services Accounts (In Millions of USD)

Particulars

2015/16 2016/17 2017/18

A B C D=B/A E=C/B

1 Investment Income (2+5) -376.1 -496.3 -377.3 31.9 -24.0

2 Interest, net (3-4) -364.0 -447.4 -377.2 22.9 -15.7

3 Credit 13.1 18.5 40.3 41.1 117.4

4 Debit 377.2 465.9 417.5 23.5 -10.4

5 Dividend, net -12.1 -48.9 -0.1 303.7 -99.9

6 NON-FACTOR SERVICES, net (7-8) -245.3 -61.3 237.1 -75.0 -486.5

7 Exports of non-factor services 3,196.4

3,331.1

4,219.5 4.2 26.7

Travel 376.8 340.4 749.0 -9.7 120.0

Transport 1 2,228.6

2,304.0 2919.6 3.4 26.7

Gov’t 2 418.2 460.3 295.3 10.1 -35.9

Other 3 172.8 226.4 255.6 31.0 12.9

8 Imports of non-factor services 3,441.8

3,392.5

3,982.5 -1.4 17.4

Travel 442.5 382.9 475.3 -13.5 24.1

Transport 1 1697.5 1921.7 2402.8 13.2 25.0

Gov’t 2 58.1 75.5 79.2 29.9 4.9

Other 3 1243.6 1012.4 1025.3 -18.6 1.3

9 Net Services (10+11+12+13+14) -621.5 -557.6 -140.2 -10.3 -74.9

10 Travel -65.7 -42.5 273.7 -35.4 -744.7

11 Transport 531.1 382.3 516.9 -28.0 35.2

12 Gov’t 360.1 384.8 216.1 6.9 -43.8

13 Other -1070.8 -786.0 -769.6 -26.6 -2.1

14 Investment Income -376.1 -496.3 -377.3 31.9 -24.0

Source: MoFEC, Transport and Telecommunication Companies, NBE- FEMEMD and Staff Compilation.1/ Includes Ethiopian Airlines receipts and payments

2/ Includes transactions with Embassies and international organizations such as UN-ECA, AU, EU, IMF and WB

3/ Includes communication, construction, insurance, financial, information, other business

5.3.2 Unrequited Transfers

During 2017/18, net transfers showed 5.6 percent annual increment wholly driven by 10.7 percent increase in net

private transfers. However, net official transfers dropped by 14.1 percent during the same year.


NATIONAL BANK OF ETHIOPIATable 5.8 Unrequited Transfers

(In Millions of USD)

S/N Particulars

2015/16 2016/17 2017/18Percentage

Change

A%

share B%

share C%

share B/A C/B

1 Private Transfers

6,428.6 82.2

5,485.3

79.3

6,074.8

83.2 -14.7 10.7

1.1 Receipts

6,459.6 82.0

5,544.8

79.1

6,150.9

83.1 -14.2 10.9

NGO’s

2,039.2 25.9

1,117.2

15.9

1,029.5

13.9 -45.2 -7.9

Cash

1,207.7 15.3

922.4

13.2

775.5

10.5 -23.6 -15.9

Food

831.5 10.6

194.8

2.8

254.0

3.4 -76.6 30.4

Other

Private individuals

4,420.3

56.1

4,427.5

63.1

5,121.4

69.2 0.2 15.7

1.2 Payments 31.0

56.5

59.5

60.9

76.2

76.2 91.6 28.1

2 Official Transfers

1,391.1 17.8

1,428.3

20.7

1,226.3

16.8 2.7 -14.1

2.1 Receipts

1,415.0 18.0

1,466.5

20.9

1,250.1

16.9 3.6 -14.8

Cash

1,159.4 14.7

920.0

13.1

1,160.0

15.7 -20.6 26.1

Food

Other

255.6

546.5 90.1 113.8 -83.5

2.2 Payments 23.9

43.5

38.1

39.1

23.8

23.8 59.4 -37.6

Total Receipts

7,874.6

100.0

7,011.2

100.0

7,401.1

100.0 -11.0 5.6

Total Payments 55.0 100.0 97.6 100.0 100.0 100.0 77.6 2.4

3 Net Transfers

7,819.6

100.0

6,913.6

100.0

7,301.1

100.0 -11.6 5.6

Source: National Disaster Risk Management Commission, MoFEC and NBE

81

5.4. Current Account

The deficit in current account balance including official transfers narrowed to USD 5.3 billion from USD 6.5 billion last

year, due to the improvement in trade balance deficit, in net services deficit and strong increment in net private transfers.

5.5 Capital Account

The capital account registered USD 6.4 billion surplus which is 7.2 percent lower than that of last year, owing to the reduction in private sector long term capital (50.1 percent) and foreign direct investment (10.7 percent)

together with short term capital from surplus to deficit. However, official long term net capital and other public long term capital surged by 15.1 and 39.1 percent, respectively.

5.6 Changes in Reserve Position

Net foreign assets of the banking system recorded a reserve decline of USD 201.6 million, due to USD 218.9 million draw down in net foreign assets of the commercial banks. This was more than the USD 17.3 million increase

in net foreign asset of National Bank of Ethiopia. Thus, the gross international reserves sufficiently covered 2.1 months of imports of goods and non-factor services.

5.7 External Debt

Ethiopia’s external debt stock reached USD 26.4 billion in 2017/18, depicting 11.3 percent annual growth largely due to higher debt owed to multilateral and commercial creditors. As aresult, the country’s external debt stock to GDP ratio stood at 28.9 percent. Its ratio to total receipts from export of goods and non-factor services slightly decline to 3.7 from 3.8 a year ago. Commercial debt stockreached USD 7.3 billion, showing a 13.7 percent annual increase and constituted 27.7 percent of the total debt stock. Of the total debt stock, 39.7 percent was owed to multilateral and 32.6 percent to bilateral creditors. The country’s external debt burden as measured by

debt services to export of goods and non-factor services ratio marginally declined to 18.4 percent from 20.6 percent a year earlier.


NATIONAL BANK OF ETHIOPIATable 5.9: External Public Debt*

(In Million of USD)

Particulars

2015/16 2016/17 2017/18Percentage

Change

A B C D=B/A E=C/B

Annual Debt

3,523.7

2,946.4

3,483.4 -16.4 18.2

Debt Stock

21,665.2

23,740.9

26,428.0 9.6

11.3

Multilateral

7,719.2

9,104.9

10,490.1 18.0

15.2

Bilateral

7,473.1

8,207.5

8,626.6 9.8

5.1

Commercial

6,472.9

6,428.5

7,311.3 -0.7 13.7

Debt Service

1,134.0

1,288.1

1,301.4 13.6

1.0

Principal repayments 775.5

854.6

914.8

10.2

7.0

Interest Payments 358.5

433.5

386.5

20.9 -10.8

Debt Stock to GDP Ratio (in %)1 29.7 29.5 28.9 -0.7 -2.0

Debt stock to export of goods and non-factor services

3.6 3.8 3.7 6.5 -1.6

Receipt from Goods & Non-factor Services

6,064.2

6,238.6

7,059.4

2.9

13.2

Debt service ratio (In percent )2 18.7 20.6 18.4 10.4 -10.7

Arears

Principal

Interest

Relief

Principal

Interest

Source: MoFEC and NBE 1/ GDP is a forecast2/ Ratio of debt service to receipts from export of goods and non-factor services *2015/16 and 2016/17 data are revised according to MoFEC statistics 2017/18 data are Preliminary

83

5.8. Developments in Foreign Exchange Markets

5.8.1. Developments in Nominal Exchange Rate

During 2017/18, the weighted average exchange rate of Birr in the inter-bank foreign exchange market depreciated

by 16.5 percent on annual bases and reached Birr 26.1082/USD (Table 5.10).

Table 5.10 Inter-Bank Exchange Rates of Birr per USD

PeriodAverage

Weighted Rate

Amount Traded in millions of USD Number of Trades

Totalo/w Among

CBs Totalo/w Among

CBs2015/16 21.1059 12.65 0.0 253.0 0.0Qtr. I 20.6965 3.15 0.00 63.00 0.00Qtr. II 20.9497 3.25 0.00 65.00 0.00Qtr. III 21.2059 3.10 0.00 62.00 0.00Qtr. IV 21.5713 3.15 0.00 63.00 0.002016/17 22.4137 12.55 0.0 251.0 0.0Qtr. I 21.9262 3.10 0.0 62.0 0.0Qtr. II 22.2228 3.25 0.0 65.0 0.0Qtr. III 22.5832 3.15 0.0 63.0 0.0Qtr. IV 22.9225 3.05 0.0 61.0 0.02017/18 26.1082 12.50 0.00 250.0 0.0Qtr. I 23.2488 3.10 0.00 62.00 0.00Qtr. II 26.7099 3.20 0.00 64.00 0.00Qtr. III 27.2250 3.15 0.00 63.00 0.00Qtr. IV 27.2493 3.05 0.00 61.00 0.00

Source: NBE, Foreign Exchange Monitoring & Reserve Management Directorate and staff compilation

In the retail foreign exchange market, the average buying and selling rates of the Birr at forex bureaus both depreciated by 16.7 percent and 16.6 percent, respectively, with spread margin of 1.91 percent.


NATIONAL BANK OF ETHIOPIATable 5.11: End Period Mid-Market Rates

(USD per Unit of Foreign Currency)

Currency2015/16 2016/17 2017/18 Percentage Change

A B C B/A C/BPound Sterling 1.3433 1.2965 1.4065 -3.48 8.48

Swedish Kroner 0.1175 0.1173 0.1196 -0.17 1.97

Djibouti Franc 0.0056 0.0056 0.0056 0.00 0.19

Swiss Franc 1.0198 1.0429 1.0457 2.27 0.27

Saudi Riyal 0.2666 0.2666 0.2667 0.00 0.02

UAE Dirhams 0.2723 0.2722 0.2722 -0.04 0.01

Canadian Dollar 0.7696 0.8106 0.7744 5.33 -4.47

Japanese Yen 0.0097 0.0089 0.0094 -8.25 5.52

Euro 1.1083 1.1405 1.2313 2.91 7.96

SDR 1.3954 1.3876 1.4576 -0.56 5.04

Source: Staff Compilation

In 2017/18, the end period mid-market exchange rate of the US dollar depreciated against Pound Sterling (8.5 percent), Euro (8.0 percent), Japanese Yen (5.5 percent), SDR (5.0 percent), Swedish Kroner (2.0

percent), Swiss Franc (0.3 percent), Djibouti Franc (0.2 percent), Saudi Riyal (0.02 percent) and UAE Dirham’s (0.01 percent), whereas it appreciated against Canadian Dollar (4.5 percent). (Table 5.11)

85

Table 5.12: End Period Mid-Market Rates (Birr per Unit of Foreign Currency)

Currency2015/16 2016/17 2017/18 Percentage Change

A B C B/A C/BUSD 21.9094 23.2237 27.3761 6.00 17.88Pound 29.4309 30.1095 38.5045 2.31 27.88Swedish Kroner 2.5751 2.7248 3.2746 5.81 20.18Djibouti Franc 0.1229 0.1303 0.1536 6.02 17.88Swiss Franc 22.3429 24.2191 28.6271 8.40 18.20Saudi Riyal 5.8416 6.1923 7.2999 6.00 17.89UAE Dirhams 5.9650 6.3222 7.4525 5.99 17.88Canadian Dollar 16.8612 18.8260 21.1988 11.65 12.60Japanese Yen 0.2135 0.2061 0.2571 -3.47 24.75Euro 24.2822 26.4866 33.7082 9.08 27.27SDR 21.9094 32.2251 39.9034 47.08 23.83


The Birr also depreciated vis-à-vis most international currencies, particularly, Pound Sterling (27.9 percent), Euro (27.3 percent), Japanese Yen (24.8 percent), SDR (23.8 percent), Swedish Kroner (20.2 percent), Swiss Franc

(18.2 percent) and Canadian Dollar (12.6 percent). In addition, the Birr depreciated by 17.9 percent against USD, Djibouti Franc, Saudi Riyal and UAE Dirham. (Table 5. 12)


NATIONAL BANK OF ETHIOPIA5.8.2. Movements in Real Effective Exchange Rate

The real effective exchange rate (REER) of the Birr has been appreciating since 2010/11 as a result of higher domestic inflation relative to that of the country’s major trading partners. During 2017/18, the REER however, depreciated by 5.9 percent due to the devaluation

measure taken in October 2017. (Table 5.13)

Similarly, the nominal effective exchange rate (NEER) of the Birr depreciated by 10.9 percent on annual basis.

Table 5.13: Trends in Real and Nominal Effective Exchange Rates

Fiscal Year REERI NEERIPercentage Change

REERI NEERI2010/11 122.8 42.9 1.33 -23.52011/12 139.4 43.2 13.49 0.72012/13 140.2 42 0.59 -2.72013/14 140.8 40.7 0.44 -3.32014/15 157.6 42.3 11.93 42015/16 159.3 41.2 1.1 -2.72016/17 171.9 41.8 7.9 1.62017/18 161.8 37.2 -5.9 -10.9

Source:NBE Staff Compilation

An increase in REERI and NEERI indicates appreciation and vice versa. Where: REERI = Real Effective Exchange Rate Index NEERI = Nominal Effective Exchange Rate Index

5.8.3. Foreign Exchange Transactions

During 2017/18, USD 12.5 million was traded in the inter-bank foreign exchange market which was 0.4 percent lower than last year. All the foreign exchange traded in the inter-bank market was supplied by National Bank of Ethiopia (Table 5.10).

Meanwhile, forex bureaus of commercial banks purchased foreign exchange to the tune of USD 320.0 million showing a 0.6 percent marginal increase over the preceding year. Their foreign exchange sales rose by 40.2 percent to USD 270.2 million (Table 5.14).

87

Table 5.14: Foreign Exchange Transactions by Forex Bureaus of Commercial Banks )In Millions of USD(

Name of Forex Bureau

2015/16 2016/17 2017/18Percentage

ChangeA B C D E F E/C F/D

Purchases Sales Purchases Sales Purchases Sales Purchases SalesCommercial Bank of Ethiopia 262.02 93.50 242.05 84.48 239.76 151.52 -0.95 79.36Bank of Abyssinia 5.06 9.64 6.32 11.32 2.89 14.69 -54.24 29.75Dashen Bank 16.87 30.34 12.97 20.59 14.12 20.77 8.88 0.89Awash International Bank 6.28 10.71 4.85 16.70 5.44 16.31 12.16 -2.34Construction & Business Bank 3.09 1.72 0.00 0.00 0.00 0.00 Wegagen Bank 3.77 5.99 4.16 5.61 11.44 8.30 175.11 47.98United Bank 9.96 14.50 6.03 13.10 10.00 16.15 65.76 23.27Development Bank 0.03 0.37 0.00 0.28 0.00 0.33 17.34Nib International Bank 1.40 5.27 1.35 7.60 2.29 4.83 69.43 -36.46Lion International Bank 19.04 4.77 25.59 5.61 8.32 3.73 -67.50 -33.58Oromia International Bank 9.01 5.09 3.46 5.02 6.50 7.40 87.92 47.47Zemen Bank 0.65 6.19 0.72 11.74 0.37 8.41 -48.85 -28.34Cooperative Bank of Oromia 0.67 1.67 0.75 2.17 0.95 5.19 26.57 139.16Buna International Bank 0.54 1.17 4.25 2.39 8.99 3.09 111.58 29.29Birhan International Bank 0.14 0.47 0.68 2.38 0.98 4.34 43.44 82.25Abay Bank 0.07 1.00 1.38 1.34 1.82 1.30 32.18 -2.99Addis International Bank 0.78 1.55 3.20 1.55 4.37 1.90 36.63 22.62Debub Global Bank 0.16 0.36 0.07 0.29 0.17 0.24 141.39 -18.60

Enat Bank 0.32 0.25 0.25 0.52 1.62 1.70 547.96 226.77

Total 339.86 194.57 318.09 192.67 320.0 270.2 0.6 40.2




GENERAL GOVERNMENT FINANCE

89

VI. GENERAL GOVERNMENT FINANCE6.1. General

During 2017/18 F.Y, the overall fiscal operation of the general government resulted in a deficit of Birr 66.6 billion. It was greater than Birr 60.1 billion (including grants) recorded in last year (Table 6.4).

Total revenue (including grants) was Birr 287.5 billion and depicted a 6.9 percent annual growth. Its performance was 85 percent of the annual plan (Table 6.2). However, revenue to GDP ratio

decreased to 12.2 percent when compared with 14.2 percent of last year (Table 6.1).

Meanwhile, General government expenditure reached Birr 354.2 billion and went up by 7.6 percent compared to a year ago due to rose in current expenditure (Table 6.3). Hence, the ratio of expenditure to GDP reached 16.1 percent compared with 18.2 percent a year earlier (Table 6.1).

Table 6.1 Measuring Fiscal Sustainability(In Percent)

Fiscal Year PD/GDP IP/RR Debt/GDP R(Debt) R(GDP) Exp/

GDPRev/GDP R(OR)

2004/05 -4.5 6.5 38.2 29.4 22.9 23.5 14.7 11.1

2005/06 -4.7 5.4 37.8 22.3 23.6 22.5 15.0 26.3

2006/07 -3.7 5.5 36.3 25.5 30.6 20.9 12.8 11.6

2007/08 -2.9 3.8 32.5 29.3 44.4 19.1 12.1 36.7

2008/09 -0.9 3.2 26.9 11.5 35.1 17.4 12.1 34.8

2009/10 -1.3 2.9 27.5 17.1 14.2 18.8 14.2 34.1

2010/11 -1.6 2.8 26.8 29.8 33.4 18.6 13.7 28.3

2011/12 -1.2 2.2 25.6 39.5 46.1 16.8 13.9 48.8

2012/13 -2.0 2.4 27.4 23.4 15.5 18.1 14.6 20.6

2013/14 -2.6 2.6 28.6 28.4 21.1 17.5 13.8 17.8

2014/15 -2.5 2.9 31.8 31.1 16.6 18.6 15.1 27.7

2015/16 -1.9 3.1 32.1 24.6 23.6 17.9 15.1 23.6

2016/17 -3.3 3.2 34.9 28.7 18.2 18.2 14.2 11.3

2017/18 3.0 4.3 35.6 24.3 21.9 16.1 12.2 5.1

Source: Staff ComputationPD = Primary DeficitIP/RR = Share of interest payments in Recurrent revenueDebt/GDP = Ratio of Domestic Debt to GDPR(Debt) = Growth rate of Domestic DebtR(GDP) = Growth rate of GDP at current market priceExp/GDP = Ratio of General Government Expenditure to GDPRev/GDP = Ratio of General Government Revenue to GDPR(OR) = Growth rate of ordinary Revenue


NATIONAL BANK OF ETHIOPIA6.2. Revenue and Grants

In the review year, Birr 287.5 billion total revenue and grants collected. It was 85 percent of annual budget. Its GDP ratio was 13.1 percent relative to 14.9 percent in 2016/17.

About 87.2 percent of the total revenue was generated through taxes which surged by 11.9 percent and was Birr 235.2 billion. The rose was due to improved income from direct and indirect taxes by 19.9 and 6.9 percent respectively. Direct taxes contributed

41.5 percent of total tax revenue while indirect tax was 58.5 percent.

Non-tax revenue during the review period was Birr 34.4 billion and showed a down ward movement by a 26 percent over last year same period due to decline in reimbursement & property sales, government investment and others (Table 6.2).

Grants were Birr 17.9 billion and 43.6 percent higher than a year earlier.

91

Table 6. 2: Summary of General Government Revenue by Component (In Millions of Birr)

Particulars

2016/17 2017/18 Percentage Change Performance

Rate[A] [B] [C]

[C/A]Pre. Act Revised

Revenue Plan Pre. Act [C/B]

Total Revenue and Grants 269,105.9 338,280.0 287,562.1 6.9 85.0Total Revenue 1/ 256,629.0 321,103.3 269,648.2 5.1 84.0Tax Revenue 210,135.9 266,609.4 235,229.5 11.9 88.21. Direct Tax Revenue 81,410.4 101,768.6 97,646.0 19.9 95.9

1.1 Income and Profit Taxes 78,321.7 98,632.1 94,837.3 21.1 96.2

Personal 26,577.5 30,896.0 34,810.6 31.0 112.7

Business 42,260.2 52,146.7 44,732.7 5.9 85.8

Others 2/ 9,484.0 15,589.3 15,294.1 61.3 98.1

1.2 Rural Land Use Fee 410.9 486.1 376.3 (8.4) 77.4

1.3 Urban Land Use Fee 2,677.8 2,650.4 2,432.4 (9.2) 91.8

2. Indirect Taxes 128,725.4 164,840.7 137,583.5 6.9 83.52.1 Domestic Taxes 62,523.1 78,503.1 67,172.4 7.4 85.6

2.2 Foreign Trade Taxes 66,202.4 86,337.7 70,411.0 6.4 81.6

Import 66,202.4 86,337.7 70,411.0 6.4 81.6

3. Non-Tax Revenue 46,493.2 54,493.9 34,418.7 (26.0) 63.23.1 Charges and Fees 3,567.8 2,697.3 4,182.5 17.2 155.1

3.2 Govt. Invt. Income 3/ 14,746.0 17,210.9 12,222.8 (17.1) 71.0

3.3 Reimb. And Property Sales 145.9 9,986.6 121.2 (16.9) 1.2

3.4 Sales of Goods & Services 4,956.9 5,679.5 5,282.4 6.6 93.0

3.5 Others 4/ 23,076.6 18,919.7 12,609.8 (45.4) 66.6

4. Grants 12,476.9 17,176.7 17,913.9 43.6 104.3

Source: Ministry of Finance and Economy

1/ It does not include privatization proceeds 2/ others include rental income tax, withholding income tax on imports, interest income tax, capital gains tax, agricultural income and other income 3/ Government investment income includes: residual surplus, capital charge, interest payments and state dividend. 4/other extraordinary, miscellaneous and pension contribution


NATIONAL BANK OF ETHIOPIA6.3. Expenditure

Total general government expenditure reached Birr 354.2 billion and was 7.6 percent higher than a year ago as a result of rose in current expenditure by 19.1 percent (Table 6.3).

Current expenditure stood at Birr 210.5 billion and Its share in total expenditure became 59.4 percent.

Capital expenditure was Birr 143.7 billion and depicted 5.8 percent annual decrease and its share in total expenditure was 40.6 percent.

In summary, the performance of general government expenditure was 85.1 percent of the annual budget.

.

93

Table 6.3: Summary of General Government Expenditure (In Millions of Birr)

Particulars

2016/17 2017/18Percentage

Change Performance Rate[A] [B] [C]

[C/A]Pre. ActRevised Expenditure

Plan Pre. Act [C/B]

Total Expenditure 329,286.8 416,120.8 354,205.3 7.6 85.1

1. Current Expenditure 176,703.0 227,108.0 210,470.2 19.1 92.7

General Services 53,697.4 54,203.3 62,715.7 16.8 115.7

Economic Services 23,536.3 30,787.4 26,503.3 12.6 86.1

Social Services 86,659.4 92,624.3 9,7845.8 12.9 105.6

Interest and Charges 8,248.1 12,051.4 11,570.7 40.3 96.0

Others )miscellaneous( 4,561.9 37,441.5 11,834.9 159.4 31.6

2. Capital Expenditure 152,583.8 189,012.8 143,735.1 (5.8) 76.0

Economic Development 98,781.3 119,557.6 89,717.1 (9.2) 75.0

Social Development 39,869.0 45,711.1 37,477.1 (6.0) 82.0

General Development 13,933.6 23,744.1 16,540.9 18.7 69.7

3. Special programs Source: Ministry of Finance and EconomyNote: 1/ Includes mapping, science and technology, public buildings, etc



95

6.4 Deficit Financing

General government budgetary operation including grants resulted in a fiscal deficit of Birr 66.6 billion during 2017/18.

It was 10.7 percent higher than a year earlier.

Primary deficit as percentage of GDP was 3.0 percent and was financed by net external borrowing, net domestic borrowing, privatization receipts and others & residuals while there was repayment to the banking System.

Table 6.4 Summary of General Government Finance (In Millions of Birr)

Particulars

2016/17 2017/18 Percentage Change

Performance Rate

[A] [B] [C][C/A] [C/B]

Pre. Act Revised Budget Pre. Act

Revenue and Grants 269,105.9 338,280.0 287,562.1 6.9 85.0

Revenue 256,629.0 321,103.3 269648.2 5.1 84.0Grants 12,476.9 17,176.7 17913.9 43.6 104.3

Total Expenditure 329,286.8 416,120.8 354,205.3 7.6 85.1Current Expenditure 176,703.0 227,108.0 210470.2 19.1 92.7Capital Expenditure 152,583.8 189,012.8 143735.1 (5.8) 76.0

Overall Surplus/ Deficit(Including Grants) (60,180.9) (77,840.8) (66,643.2) 10.7 85.6(Excluding Grants) (72,657.8) (95,017.5) (84,557.1) 16.4 89.0Total Financing 60,180.9 77,841.0 66,643.2 10.7 85.6Net External Borrowings 28,952.5 24,557.2 28134.7 (2.8) 114.6

Gross Borrowing 31,621.5 28,878.5 32449.7 2.6 112.4o/w Special Programs

Amortization Paid 2,668.9 4,321.4 4315.1 61.7 99.9HIPC Relief

Net Domestic Borrowings 34,629.5 53,283.8 14871.2 (57.1) 27.9Banking System 18,651.6 (23423.8) (225.6)Non-Banking Systems 15,977.9 38295.0 139.7

Privatization Receipts 10,883.3 9349.1 (14.1)Others and Residuals 14,284.4) 14288.3 (200.0)

Source: Ministry of Finance and Economy



INVESTMENT

97

VII. Investment

During 2017/18 fiscal year, 1,550 projects become operational under Ethiopian Investment Commission and regional investment offices; which were 231.2 percent higher than a year earlier. All of which were private and at operational stage. These projects command investment capital Birr 25.9 billion; showing 190.8 percent annual growth. Of the total investment projects, 1,496 (96.5 percent) were domestic with a capital of Birr 20.7 billion (80 percent); and 54 projects were foreign having

Birr 5.2 billion capital.

The average capital per project for domestic investors was Birr 13.8 million and that of foreign investors Birr 95.9 million, signifying that foreign investment projects were more of capital intensive than domestic ones.

It is estimated that these investment projects have created job opportunities for about 332,003 permanent and 36,214 casual workers; showing 1,502.9 and 270.5 percent expansion respectively compared with the previous year (Table 7.1).


NATIONAL BANK OF ETHIOPIATable 7.1: Number of Projects, Capital and Jobs Created by Operational Investment

(Capital in millions of Birr)

Types of Project Items

2015/16 2016/17 2017/18 Percentage change

A B C Share C/A C/B

1. Total Investment

Number 852 468 1,550 100.0 81.9 231.2

Capital 6,708.6 8,896.9 25,876.3 100.0 285.7 190.8

Permanent Workers 12,724 20,712 332,003 100.0 2,509.3 1,502.9

Temporary Workers 12,710 9,775 36,214 100.0 184.9 270.5

1.1. Total Private

Number 852 467 1,550 100.0 81.9 231.9

Capital 6,708.6 3,896.9 25,876.3 100.0 285.7 564.0



1.1.1. Domestic

Number 772 424 1,496 96.5 93.8 252.8

Capital 5,463.7 3,295.0 20,698.2 80.0 278.8 528.2



1.1.2. Foreign

Number 80 43 54 3.5 (32.5) 25.6

Capital 1,244.9 602.0 5,178.1 20.0 316.0 760.2


Temporary Workers 3,717 724 22,170 61.2 496.4 2,962.2

1.2.Public

Number 1

Capital 5,000.0

Permanent Workers 20

Temporary Workers

Source: Ethiopian Investment Commission

99

Fig.VII.1: Number of Operational Investment Projects by Type

Source: Ethiopian Investment Commission.

Fig.VII.2: Capital of Operational Investment Projects by Type

Source: Ethiopian Investment Commission


NATIONAL BANK OF ETHIOPIA7.1 Investment by Sector

Of the total investment projects, about 37.3 percent were in manufacturing, followed by real estate, renting & business activities (32 percent), and construction (22.2 percent) and agriculture, hunting & forestry (2.7 percent). The rest of the sectors attracted about 5.8 percent of total

investment projects.As for investment capital, manufacturing constituted 56 percent followed by real estate, renting & business activities (27.8 percent), construction (11.6 percent), agriculture, hunting & forestry (1.2 percent) and the remaining sectors 3.3 percent (Table 7.2).

Fig.VII.3: Distribution of Operational Investment capital by Sector in 2017/18

Source: Ethiopian Investment Commission.Others*: hotel & restaurant, education, health & social work, tour operation, transport & communication, mining & quarrying, others and other community, social and personal service activities.

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Table: 7.2: Numbers and Capital of Operational Investment Projects by Sector(Capital in millions of Birr)

Sectors2015/16 2016/17 2017/18 Percentage share

No. of Projects

Investment Capital

No. of Projects

Investment Capital

No. of Projects

Investment Capital

No. of Projects

Investment Capital

Manufacturing 85 2,539.5 149 1,888.0 578 14,494.8 37.3 56.0

Agriculture, hunting and forestry 35 66.0 14 119.6 42 322.8 2.7 1.2

Real estate, renting and Business activities 637 3,550.7 81 5,737.4 496 7,204.8 32.0 27.8

Hotel and restaurants 3 10.8 2 9.5 5 57.8 0.3 0.2Education 3 7.1 4 6.1 7 67.8 0.5 0.3Health and social work 3 13.7 15 276.4 1.0 1.1

Construction 75 506.7 199 1,081.9 344 3,002.1 22.2 11.6

Tour operation, transport and communication 5 10.7 3 14.7 5 11.4 0.3 0.0

Whole sale, retail trade and repair service 1 2.0 0.1 0.0

Mining and quarrying 6 12.1 8 18.7 7 81.0 0.5 0.3

Electricity, gas, steam and water supply 1 100.0 0.1 0.4

Other community, social and personal service activities

2 0.9 4 5.2 46 245.8 3.0 0.9

Others 1 4.0 1 1.9 3 9.5 0.2 0.0

Grand Total 852 6,708.6 468 8,896.9 1550 25,876.2 100.0 100.0



NATIONAL BANK OF ETHIOPIA7.2 Distribution by Region

Of the total 1,550 investment projects that went in to operation in 2017/18, about 1,362 projects (87.9 percent) with Birr 19.9 billion capital (76.7 percent) were located in Addis Ababa, followed by 66 projects (4.3 percent) with Birr 395.5 million capital were in Tigray region. Similarly there were 46 projects (3 percent) with investment capital of Birr 380 million in Afar; 15 projects (1 percent) with Birr 39.7 million capital in Amhara, 1 project (0.1 percent) with Birr

2 million capital in Benishangul-Gumuz and 1 project with investment capital of Birr 2.5 million in SNNPR. There was no operational investment project in Oromia, Somali, Gambella, Harari and Diredawa during 2017/18 fiscal year (Table 7.3). While, there is 59 projects or 3.8 percent of total projects, with Birr 5.2 billion capital went to operation in multiregional projects in 2017/18 fiscal year.

103

Table 7.3: Number and Capital of Operational Projects by Region(Capital in millions of Birr)

Regions2015/16 2016/17 2017/18 Percentage share

No. of projects

Investment Capital

No. of projects

Investment Capital

No. of projects

Investment Capital

No. of projects

Investment Capital

Tigray 49 207.3 21 65.9 66 395.3 4.3 1.5

Afar 15 97.5 46 380.0 3.0 1.5

Amhara 4 10.0 42 104.5 15 39.7 1.0 0.2

Oromia 304 1,398.4 19 335.6 0.0 0.0

Somali 0 0 0.0 0.0

Benishangul-Gumuz 0 0 1 2.0 0.1 0.0

SNNPR 1 13.8 10 83.5 1 2.5 0.1 0.0

Gambella 0 0 0.0 0.0

Harari 3 27 0.0 0.0

Addis Ababa 31 2,381.5 376 8,307.5 1,362 19,839.3 87.9 76.7

Dire Dawa 0 0 0.0 0.0

Multiregional Projects 0 0 59 5,217.5 3.8 20.2

Grand Total 407 4,135.0 468 8,896.9 1,550 25,876.2 100.0 100.0




INTERNATIONAL DEVELOPMENTS

105

VIII. International Developments8.1. International Economic Developments

8.1.1. Overview of the World Economy

Global growth strengthened and marked improvements in 2017 to 3.7 percent, due to recovery in investment in advanced economies and continued strong growth in emerging Asia and signs of recovery in several commodity exporters. Economic activity in both advanced economies and emerging & developing economies is forecast to accelerate in 2018, to 2.4 percent and 4.9 percent, respectively, with global growth projected to be 3.9 percent.

In the United States, growth is expected to rise from 2.3 percent in 2017 to 2.9 percent in 2018, before moderating slightly to 2.7 percent in 2019.

In Japan, economic growth is projected to moderate to 1.0 percent in 2018 (from a strong above trend outturn of 1.7 percent in 2017 before slowing further to 0.9 percent in 2019.

Growth in the United Kingdom is projected to slow from 1.7 percent in 2017 to 1.4 percent in 2018 and 1.5 percent in 2019, with business investment expected to remain weak in light of heightened uncertainty about post-Brexit arrangements. The medium-term growth forecast is also broadly unchanged at 1.6 percent, due to the likely effect of higher barriers to trade and lower foreign direct investment following Brexit.

In the euro area growth is projected

to slightly moderate to 2.2 percent in 2018 from 2.4 percent in 2017, before slowing further to 1.9 percent in 2019. Medium-term growth in the euro area is projected at 1.4 percent, held back by low productivity amid weak reform efforts and unfavorable demographics.

Growth in emerging market and developing economies is expected to increase further—from 4.7 percent in 2017 to 4.9 percent in 2018 and 5.1 percent in 2019. Although the high growth rate reflects primarily continued strong economic performance in emerging Asia, the projected pickup in growth reflects improved prospects for commodity exporters after three years of very weak economic activity. Beyond 2019, growth in emerging market and developing economies is projected to stabilize at about 5 percent over the medium term. China’s growth is projected to soften slightly from 6.9 percent in 2017 to 6.6 percent in 2018 and 6.4 percent in 2019. Over the medium term, the economy is projected to continue rebalancing away from investment toward private consumption and from industry to services.

Growth in the Middle East, North Africa, Afghanistan, and Pakistan region is also expected to pick up 3.5 percent in 2018 and 3.9 percent in 2019. Stronger oil prices are expected to help recovery in domestic demand in oil exporters, including Saudi Arabia.


NATIONAL BANK OF ETHIOPIAGrowth in Sub-Saharan Africa is also projected to rise gradually during 2018–19 to 3.4 percent and 3.8 percent, respectively, as the challenging outlook in commodity exporters gradually improve. Growth in South Africa is expected to strengthen from 1.3 percent in 2017 to 1.5 percent in 2018 and 1.7 percent in 2019. Though the likely effects of improvement in business confidence due to the change in the political leadership

are expected to have positive effects, growth prospects however, remain weighed down by structural bottlenecks. In Nigeria, the economy is projected to grow 2.1 percent in 2018 and 2.3 percent in 2019 (up from 0.8 percent in 2017), reflecting improved oil prices, revenue, and production and recently introduced foreign exchange measures that contribute to better foreign exchange availability.

107

Table 8.1: Overview of World Economic Outlook and Projection(Annual Percentage Change)

Particulars 2016 2017Projection2018 2019

World Output 3.2 3.7 3.9 3.9 Advanced Economies 1.7 2.4 2.4 2.2United States 1.5 2.3 2.9 2.7Euro Area 1.8 2.4 2.2 1.9Japan 1.0 1.7 1.0 0.9United Kingdom 1.8 1.7 1.4 1.5 Emerging Market & Developing Economies 4.4 4.7 4.9 5.1Middle East, North Africa, Afghanistan and Pakistan 5.0 2.2 3.5 3.9Sub-Saharan Africa 1.5 2.8 3.4 3.8Nigeria -1.6 0.8 2.1 2.3South Africa 0.6 1.3 1.5 1.7World Trade Volume (goods & services) * 2.3 4.9 5.1 4.7ImportsAdvanced Economies 2.7 4.0 5.1 4.5Emerging Market and Developing Economies 1.8 6.4 6.0 5.6 ExportsAdvanced Economies 2.0 4.2 4.5 3.9Emerging Market and Developing Economies 2.6 6.4 5.1 5.3Commodity Prices (U.S. dollars) Oil -15.7 23.3 33.0 -1.8Non- oil -1.5 6.8 6.0 0.5Consumer Prices* Advanced Economies 0.8 1.7 2.0 1.9United States 1.3 2.1 2.5 2.4Euro Area 0.2 1.5 1.5 1.6United Kingdom 0.7 2.7 2.7 2.2Japan -0.1 0.5 1.1 1.1 Emerging Market & Developing Economies 4.3 4.0 4.6 4.3China 2.0 1.6 2.5 2.6Mexico 2.8 6.0 4.4 3.1Turkey 7.8 11.1 11.4 10.5Brazil 8.7 3.4 3.5 4.2 Russia 7.1 3.7 2.8 3.7 Sub-Saharan Africa 11.3 11.0 9.5 8.9Angola 32.4 31.7 27.9 17.0Nigeria 15.7 16.5 14.0 14.8Ghana 17.5 12.4 8.7 8.0

Source: IMF, World Economic Outlook, July, 2018 *IMF, World Economic Outlook, April, 2018


NATIONAL BANK OF ETHIOPIA8.1. 2 World Trade

Global volume of world trade growth of goods and services in 2017 is estimated to have grown by 4.9 percent in volume terms. It is estimated to expand by 5.1 percent in 2018 and is projected to increase by 4.7 percent in 2019. Imports of goods and services by advanced economies rise by 5.1 percent in 2018 and by 4.5 percent in 2019. Similarly, imports by emerging market and developing economies forecasted to grow by 6.0 percent and 5.6 percent in 2018 and 2019, respectively. Likewise, export of goods and services from advanced economies and emerging and developing economies is forecasted to expand by 4.5 percent and 5.1 percent in 2018, respectively.

8.1.3 Inflation and Commodity Prices

Global headline inflation is picking up as a result of a strengthening global outlook, narrowing output gaps, supply effects together with stronger demand. As wage dynamics start reflecting tighter labor markets, core inflation is also expected to rise. In advanced economies, head line inflation rate is forecasted to be 2.0 percent in 2018 and 1.9 percent in 2019, up from 1.7 percent in 2017. Headline inflation in emerging market and developing economies is projected to rise to 4.6 percent in 2018 from 4.0 percent in 2017. In 2019, inflation is expected to moderate to about 4.3 percent.

In the United States, headline consumer price inflation is expected to increase from 2.1 percent in 2017 to 2.5 percent in 2018 before declining to 2.4 percent in 2019.

In Euro area headline inflation is expected to remain at about 1.5 percent in 2018 and it is expected to increase to 1.6 percent in 2019. In the United Kingdom, headline inflation in 2018 is projected at 2.7 percent, same as in 2017, before declining to 2.2 percent in 2019.

Headline inflation in Japan forecasted to be 1.1 percent in 2018 and 2019 from 0.5 percent in 2017. Higher energy and food prices and strong domestic demand are the main causes for the rise in inflation rate in Japan.

In emerging market economies, inflation development is diverse. In China inflation is expected to pick up to 2.5 percent in 2018 from 1.6 percent in 2017. Headline inflation rates in Brazil and Russia are expected to continue to remain subdued in a range of 3 percent to 4 percent in 2018 as output gaps gradually close, with growth continuing to recover from the recession between 2015 and 2017. In Mexico, the inflation rate is projected to decline to 4.4 percent in 2018 from 6.0 percent in 2017 as the effects of fuel price liberalization fade.

Inflation is expected to moderate in 2018 and 2019 in Sub-Saharan Africa, but is expected to remain double digits in key large economies reflecting the pass-through effects of currency depreciation and their impact on inflation expectations in Angola, supply factors, and assumed monetary policy accommodation to support fiscal policy (Nigeria).

Oil prices have continued to increase, due to supply outages, the extension of the production agreement of OPEC members, and stronger global economic

109

growth.

Metal prices increased by 8.3 percent between August 2017 and February 2018. The increase in price is attributed to the solid growth in global economy and a wider demand-supply gap for all base metals specially aluminum.The IMF agriculture price index, which consists of food, beverages, and agricultural raw materials prices, has increased by 4.1 percent from August 2017 to February 2018. The sub-indices of food and agricultural raw materials rose by 4.1 and 6.0 percent, respectively. The beverages index declined by 3.6 percent as results of a substantial decline in the price of coffee (by 12.7 percent) while the gain in the index of raw agricultural materials was due to the increase in the price of cotton.

8.1.4. Exchange Rate

Between August 2017 and March 2018, the U.S. dollar weakened modestly in real effective terms by about 1.5 percent. The euro has appreciated by 1 percent and becomes 4 percent stronger than its 2017 average. The Japanese yen has remained broadly stable, while the British pond appreciated by 5.5 percent. Among emerging market currencies, the Chinese renminbi appreciated by 3.5 percent in real effective terms. The South African rand rebounded by 10 percent on reduced political uncertainty and the Malaysian ringgit by over 8 percent in line with improved growth outlook and stronger commodity prices. The Turkish lira depreciated by more than 10 percent on account of the higher inflation.

8.2 Implications of International Economic Developments on the Ethiopia Economy

Global growth strengthened and marked improvements in 2017 due to recovery in investment in advanced economies and continued strong growth in emerging Asia and signs of recovery in several commodity exporters. Economic activity in both advanced economies and emerging & developing economies is forecast to accelerate in 2018.

Oil prices have continued to increase, due to supply outages, the extension of the production agreement of OPEC members, and stronger global economic growth. The increase in oil price during 2017/18 has increased the country’s import bills during the period.

On the other hand, the beverages index declined as results of a substantial decline in the price of coffee. The decrease in the price of coffee in the international market reduced Ethiopia’s export earnings from coffee which is the major export item of the country.



National Bank of Ethiopia(Federal Democratic Republic of Ethiopia)

Financial StatementsFor the year ended 30 June 2018

111

NATIONAL BANK OF ETHIOPIANational Bank of EthiopiaFinancial Statements For the Year Ended 30 June 2018

Statement of Director’s Responsibility

The Directors are responsible for the preparation and fair presentation of the financial statements of National Bank of Ethiopia (“The Bank”), comprising the statement of financial position as at 30 June 2018, statements of comprehensive income, changes in equity and cash flows for the year then ended and the notes to the financial statements, which include a summary of significant accounting policies and other explanatory notes, in accordance with International Financial Reporting Standards.

To enable the Directors to meet those responsibilities, the Board of Directors (the “Board”) and management sets standards and management implements systems of internal control, accounting and information systems aimed at providing reasonable assurance that assets are safeguarded and the risk of error, fraud or loss is reduced in a cost effective manner. These controls, contained in established policies and procedures, include the proper delegation of responsibilities and authorities within a clearly defined framework, effective accounting procedures and adequate segregation of duties.

To their best knowledge and belief, based on the above, the Directors are satisfied that no material breakdown in the operation of the systems of internal control and procedures has occurred during the year under review. The Directors have reviewed the performance and financial position of the Bank to the date of signing of these financial statements and its prospects based on prepared budgets, and are satisfied that the Bank is a going concern and, therefore, have adopted the going concern assumption in the preparation of these financial statements.

Approval of the annual financial statements

The financial statements on pages 6 to 124 were approved by the Governor on behalf of the Board of Directors on 14 May 2020.

H.E. Dr Yinager Dessie ……… Date 14 May 2020H.E. Dr Yinager Dessie ……… Date 14 May 2020


NATIONAL BANK OF ETHIOPIAINDEPENDENT AUDITOR'S REPORTTO THE SUPERVISING AUTHORITY OFNATIONAL BANK OF ETHIOPIA (Continued)

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of National bank of Ethiopia (the Bank), which comprise the statement of financial position as at 30 June 2018, and the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Bank as at 30 June 2018 and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Bank in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants )IESBA Code( together with the ethical requirements that are relevant to our audit of the financial statements in Ethiopia, and we have fulfilled our other ethical responsibilities in accordance with those requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

_______________________________________________________________________________________________________________ 251-011-551 52 22 Fax. 251-011-551 30 83 E-mail: [email protected] 5720 251-011-553 50 12 251-011-553 50 15 251-011-553 50 16

_______________________________________________________________________________________________________________ 251-011-551 52 22 Fax. 251-011-551 30 83 E-mail: [email protected]

113


A. First time adoption of IFRS

As was required by Financial Reporting Proclamation No. 847/2014, the Bank has prepared financial statements in accordance with IFRS issued by IASB. This required a long process including restatements of the statement of financial position as at 30 June 2016 and of the financial statements for the year ended 30 June 2017. Not only was it necessary for the Bank to ensure that the restated financial statements complied with all applicable Standards, but it was also essential to discover information that was not previously needed when preparing previous financial reports. The possibilities for omissions and clerical errors were many. Therefore, we checked compliance with IFRS, as to measurement and disclosure requirements, in detail; we also checked how crucial information was obtained and we verified significant calculations exhaustively. Our audit procedures did not identify significant errors in compliance with IFRS or in related calculations.

B. Revenue and expenses

There are risks that interest income and expenses may not be properly calculated and recorded. We compared the current year’s income and expenditure with the prior to analyse the variations. We enquired and documented the reasons for variations. We selected samples of recorded interest income and expense and checked their computation and examined supporting documentation to verify the correctness of the amounts recorded. We also checked the system for recording exchange commission income and gain on foreign exchange and checked sample recorded balances. Based on our assessment we found no concerns regarding revenue and expense recognition. Responsibilities of Management and Those Charged with Governance for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with International Financial Reporting Standards and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Bank’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intendeds to liquidate the Banks or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Bank’s financial reporting process



Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Bank’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Bank’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Bank to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

115


Auditors’ Responsibilities for the Audit of the Financial Statements (continued)

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partner on the audit resulting in this independent auditor’s report is Woizero Azeb Teklesilassie.

15 May 202015 May 2020


NATIONAL BANK OF ETHIOPIASTATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 JUNE 2018(In Ethiopian Birr)

Note 30 June 2018 30 June 2017Interest income 4 8,583,209,279 6,424,889,051Interest expense 4 (3,231,557,791) (2,803,316,797)Net interest income 5,351,651,488 3,621,572,254

Fee and commissions income 5 3,388,401,155 2,819,412,261Revenue from sale of gold 6 769,010,364 3,136,203,638Other income 7 1,343,969,104 1,551,381,566Net non interest income and other income 5,501,380,623 7,506,997,465

Net operating income 10,853,032,111 11,128,569,719

Currency costs 8 (a) (711,378,750) (714,166,298)General and administration costs 8 (b) (227,129,862) (191,790,519)Salaries and related benefits 8 (c) (143,905,101) (124,717,122)Gold purchase, refinery and other related costs 8 (d) (774,578,601) (3,068,029,900)Impairment losses on financial instruments 8(e),9,15 (77,565,415) 60,968,383

Operating surplus before (un)realised gains / (losses) 8,918,474,382 7,090,834,263

Other comprehensive income:Items that will not be reclassified to profit or loss:Remeasurement of defined benefit obligation 24 (b) 71,666,951 (5,483,916)Fair value gains/(losses) on monetary gold 11 (a) (214,797) (1,544)Fair value gains / (losses) on financial assets 10 & 28 (1,853,142,356) (436,585,714)Other comprehensive income (1,781,690,202) (442,071,174)

Total comprehensive income 7,136,784,180 6,648,763,089

The notes on pages 120 to 232 are an integral part of these financial statements.

117

NATIONAL BANK OF ETHIOPIASTATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2018(In Ethiopian Birr)

30 June 2018 30 June 2017 1 July 2016Assets NoteBalances due from foreign entities – com-mercial banks 9 (d) 14,369,590,479 12,026,437,870 10,259,051,202Balances due from foreign entities – Cen-tral banks 9 (e) 60,893,267,700 58,862,864,221 59,060,174,943

Cash - foreign currencies 9 (f) 642,412,034 1,094,741,250 1,471,219,998Funds held with IMF 9 (g) 42,810,117 392,164,555 1,522,233,935 Monetary gold 11 (a) 273,107,481 230,130,835 229,822,214Gold commodity 11 (b) 750,537,251 741,333,068 1,113,920,333 Loans to government banks 9 (b) 87,720,265,023 66,852,739,434 44,048,816,393Loans to private commercial banks 9 (c) - 499,222,021 -Investment securities 10 11,736,277,070 9,394,633,652 9,116,365,465 Property and equipment 13 1,409,541,864 1,495,665,010 1,559,362,317Other assets 15 1,417,888,043 1,675,018,790 23,923,572,726Intangible asset 14 21,769,337 28,769,521 43,247,709Due from Government of Ethiopia 9 (a) 157,754,003,183 133,558,105,352 106,756,386,236Right of use asset 16 2,453,178 2,606,502 2,759,826Total assets 337,033,922,760 286,854,432,081 259,106,933,297

LiabilitiesCurrency in circulation 20 112,910,966,031 94,245,514,534 82,592,706,383Deposits due to local financial institutions, government and government institutions 17 174,570,678,122 142,862,328,450 128,930,055,394

Funds due to international financing insti-tutions 18 19,010,310,428 16,665,286,857 17,162,567,832

Due to other institutions 19 20,755,648,478 23,417,568,963 22,011,848,042Due to the Ministry of Finance 23 8,185,860,505 6,407,483,115 5,318,057,037Deferred revenue 22 (d) 447,439 - 202,894Lease liability 16 2,555,170 2,649,886 2,739,241Provisions 21 10,292,665 9,213,688 8,197,975Employee benefits 24 113,901,230 163,866,323 141,193,620Other liabilities 25 459,813,907 1,017,995,143 1,118,119,731Total Liabilities 336,020,473,975 284,791,906,959 257,285,688,149

EquityCapital 26 (a) 500,000,000 500,000,000 500,000,000General reserve 26 (b) 500,000,000 500,000,000 500,000,000Fair value reserve 26(e) (5,595,775,199) (3,742,418,046) (3,305,830,788)Defined benefit reserve 24 / 26 (f) 66,183,035 (5,483,916) -International reserve valuation 26 (c) 3,849,198,654 3,849,198,654 3,849,198,654 Other reserve 26 (g) 1,693,842,295 961,228,430 277,877,282Total equity 1,013,448,785 2,062,525,122 1,821,245,148Total liabilities and equity 337,033,922,760 286,854,432,081 259,106,933,297

The notes on pages 120 to 232 are an integral part of these financial statements


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119

NATIONAL BANK OF ETHIOPIASTATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 JUNE 2018(In Ethiopian Birr)

For the year ended Cash flows from operating activities: Note 30 June 2018 30 June 2017Operating surplus for the year 7,136,784,180 6,648,763,089

Impairment of loans and advances 8(e),9, 15 77,565,412 (60,968,380)

Depreciation and amortization 13, 14 121,611,770 122,971,087

Interest paid on lease obligation 16 152,304 157,665

Fair value gains on investment securities 10 19,421,616 15,714,138

Loss/(Gain) on disposal of property and equipment 13 - 5,8737,355,535,282 6,726,643,472

Changes in working capital:

Loans to government banks and commercial banks 9 (b, c) (20,401,848,690) (23,303,924,047)Deposits due from foreign entities – central banks (IBRD investment) 9 (h) (187,861,500) (59,143,500)

Other assets 15 257,479,427 22,248,162,435

Currency in circulation 20 18,665,451,497 11,652,808,151

Due to International financing institutions 18 2,345,023,571 (497,280,975)

Due to other institutions 19 (2,661,920,485) 1,405,720,921Deposits due to local financial institutions, government and government institutions 17 31,708,349,672 13,932,273,056

Monetary gold 11 (42,976,646) (308,621)Gold commodity (9,204,183) 372,587,265 Due from Government of Ethiopia 9 (a) (24,240,266,801) (26,739,580,250)Provisions 21 1,078,977 1,015,713Deferred revenue 22 (d) 447,439 (202,894)Payments on finance lease obligations 16 (247,020) (247,020)Employee benefits 24 (49,965,093) 22,672,703 Other liabilities 25 (558,181,236) (100,124,588)Net cash provided by operating activities 12,180,894,211 5,661,071,821Cash flows from investing activities:Increase in investment securities 10 (2,361,065,034) (293,982,325)Acquisition of properties and equipment 13 (19,639,762) (44,648,141)Increase of ROU assets 16 - -Acquisition of intangibles 14 (8,695,354) -Net cash used in investing activities (2,389,400,150) (338,630,466)Cash flows from financing activities:Payments to MOF 23 (6,407,483,127) (5,318,057,037)Net cash from financing activities (6,407,483,127) (5,318,057,037)Increase (decrease) in cash and cash equivalents 3,384,010,934 4,384,318 Cash and cash equivalents at beginning of period 71,331,141,396 71,326,757,078Cash and cash equivalents at end of period 9 (h) 74,715,152,330 71,331,141,396

The notes on pages 120 to 232 are an integral part of these financial statements.


NATIONAL BANK OF ETHIOPIANOTES TO FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2018

(in Ethiopian Birr)

1. Reporting entity

National Bank of Ethiopia (“the Bank”) is the Central Bank of Ethiopia. It was established by Order No. 30/1963 as an autonomous institution. It is governed by the National Bank of Ethiopia Establishment (as Amended) Proclamation No. 591/2008 and is wholly owned by the Government of the Federal Democratic Republic of Ethiopia.

Its principal place of business is Addis Ababa.

It operates as the central bank of Ethiopia and acts as the banker, advisor and agent of the Government of Ethiopia and is predominantly in one geographical area.

2. Basis of preparation

(a) Statement of compliance

The accompanying financial statements of the Bank have been prepared in accordance with the International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

These are the Bank’s first financial statements prepared in accordance with IFRS; therefore, IFRS 1 First-time Adoption of International Financial Reporting Standards has been applied. For all periods up to and including the year ended 30 June 2018, the Bank previously prepared its financial statements in accordance with local generally accepted accounting practice (hereafter referred to as “Previously Local GAAP”).

An explanation of how the transition to IFRS has affected the previously reported financial position, financial performance and cash flows of the Bank under Previous Local GAAP is provided in note 31.

On 15 May 2020, the Governor authorized the issuance of the accompanying financial statements.

(b) Basis of preparation

The financial statements have been prepared on the historical cost basis, except for the following significant items:

1. Equity instruments measured at fair value;2. Financial instruments measured at amortised cost; 3. Financial instruments measured at fair value;4. Monetary gold measured at fair value; 5. Property and equipment items measured at fair value as at transition date; and6. The liability for defined benefit obligations is recognized as the present value of the

defined obligation less the net total of the plan assets, plus unrecognized actuarial gains less unrecognized past service cost and unrecognized actuarial losses.

121


(in Ethiopian Birr)

2. Basis of preparation

(b) Basis of preparation (continued)

Functional and presentation currency

Items included in the financial statements are measured using the currency of the primary economic environment in which the Bank operates (the “Functional currency”).

The financial statements are presented in Ethiopian Birr (ETB), which is the Bank’s functional currency and all values are rounded to the nearest Birr, except when otherwise indicated.

(c) Use of judgments and estimates

In preparing these financial statements, management has made judgments, estimates and assumptions that affect the application of the Bank’s accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognized prospectively.

Judgments

Information about judgement made in applying accounting policies that have the most significant effects on the amounts recognized in the financial statements is included in the following notes:

Note 3 (a (ii)) - Classification of financial assets: assessment of the business model within which the assets are held and assessment of whether the contractual terms of the financial assets are SPPI on the principal amount outstanding.

Note 3 (a (viii)) - Establishing the criteria for determining whether credit risk on the financial asset has increased significantly since initial recognition, determining methodology for incorporating forward-looking information into measurement of ECL and selection and approval of models used to measure ECL.

Note 3 (d) - Leases; whether an arrangement contains a lease.



(in Ethiopian Birr)

2. Basis of preparation (continued)

(c) Use of judgments and estimates (continued)

Assumptions and estimation of uncertainties Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment in the year ending 30 June 2018 are set out below:

Note 3 ((a (i; ii)) – identification and measurement of financial instruments;Note 3 (b) and Note (c) – useful lives and salvage value of tangible and intangible assets;Note 3 (j) – measurement of defined benefits obligations: key actuarial assumptions; andNote 3 (i) and Note 3 (s) – recognition and measurement of provisions and contingencies.Note 3 (a) (viii) - impairment of financial instruments: key assumptions used in estimating recoverable cash flows.

The accounting policies set out below have been applied consistently to all periods presented in these financial statements.

(d) Foreign currency transactions

Transactions in foreign currencies on a day to day basis are recorded at the respective buying and selling rate. The closing balance on these foreign currency accounts at the close of business are translated using the mid-exchange rate.

Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated into the functional currency at the mid-exchange rate at that date. The foreign currency gain or loss on monetary items is the difference between the amortized cost in the functional currency at the beginning of the year, adjusted for effective interest and payments during the year, and the amortized cost in the foreign currency translated at the mid-exchange rate at the end of the year.

Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated into the functional currency at the spot exchange rate at the date on which the fair value is determined. Non-monetary items that are measured based on historical cost in a foreign currency are translated using the spot exchange rate at the date of the transaction.

Foreign currency differences arising on translation are generally recognised in profit or loss.

123


(in Ethiopian Birr)

3. Significant accounting policies

(a) Financial assets and financial liabilities

(i) Recognition and initial measurement

The Bank initially recognizes cash, loans and advances, deposits and debt securities on the date on which they are originated. All other financial instruments (including assets designated at fair value through profit or loss) are initially recognized on the trade date on which the Bank becomes a party to the contractual provisions of the instrument.

(ii) Classification and measurement

a. Financial assets:

On initial recognition, financial assets are classified into one of the following measurement categories:

• Amortised cost;• Fair value through other comprehensive income (FVOCI);• Fair value through profit or loss (FVTPL);• Elected at fair value through other comprehensive income (equities only); or• Designated at FVTPL

Financial assets include both debt and equity instruments.

A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL:• the asset is held within a business model whose objective is to hold assets to collect

contractual cash flows; and• the contractual terms of the financial asset give rise on specified dates to cash flows

that are solely payments of principal and interest on the principal amount outstanding.

A debt instrument is measured at FVOCI only if it meets both of the following conditions and is not designated as at FVTPL:� the asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and� the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

On initial recognition of an equity investment that is not held for trading, the Bank may irrevocably elect to present subsequent changes in fair value in OCI. This election is made on an investment-by-investment basis.

All other financial assets are classified as measured at FVTPL.



(in Ethiopian Birr)

3. Significant accounting policies (continued)

(a) Financial assets and financial liabilities (continued)

(ii) Classification and measurement (continued)

a. Financial assets (continued)

In addition, on initial recognition, the Bank may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

Debt instruments, including loans and debt securities, are classified into one of the following measurement categories:

• Amortised cost;• Fair value through other comprehensive income (FVOCI);• Fair value through profit or loss (FVTPL); or• Designated at FVTPL

Classification of debt instruments is determined based on:(i) The business model under which the asset is held; and(ii) The contractual cash flow characteristics of the instrument.

Business model assessment

Business model assessment involves determining how financial assets are managed in order to generate cash flows. The Bank’s business model assessment is based on the following categories:

• Held to collect: The objective of the business model is to hold assets and collect contractual cash flows. Any sales of the asset are incidental to the objective of the model.

• Held to collect and for sale: Both collecting contractual cash flows and sales are integral to achieving the objectives of the business model.

• Other business model: The business model is neither held-to-collect nor held-to-collect and for sale.

The Bank makes an assessment of the objective of a business model in which an asset is held at a portfolio level because this best reflects the way the business is managed and information is provided to management. The information considered includes:

125


(in Ethiopian Birr)




a. Financial assets (continued):

Business model assessment (continued)

• the stated policies and objectives for the portfolio and the operation of those policies in practice. In particular, whether management’s strategy focuses on earning contractual interest revenue, maintaining a particular interest rate profile, matching the duration of the financial assets to the duration of the liabilities that are funding those assets or realising cash flows through the sale of the assets;

• how the performance of the portfolio is evaluated and reported to the Bank’s management;

• the risks that affect the performance of the business model (and the financial assets held within that business model) and how those risks are managed;

• how managers of the business are compensated – e.g. whether compensation is based on the fair value of the assets managed or the contractual cash flows collected; and

• the frequency, volume and timing of sales in prior periods, the reasons for such sales and its expectations about future sales activity. However, information about sales activity is not considered in isolation, but as part of an overall assessment of how the Bank’s stated objective for managing the financial assets is achieved and how cash flows are realised.

Financial assets that are held for trading or managed and whose performance is evaluated on a fair value basis are measured at FVTPL because they are neither held to collect contractual cash flows nor held both to collect contractual cash flows and to sell financial assets.

Assessment whether contractual cash flows are solely payments of principal and interest

The contractual cash flow characteristics assessment involves assessing the contractual features of an instrument to determine if they give rise to cash flows that are consistent with a basic lending arrangement. Contractual cash flows are consistent with a basic lending arrangement if they represent cash flows that are solely payments of principal and interest on the principal amount outstanding (SPPI).

For the purposes of this assessment, ‘principal’ is defined as the fair value of the financial asset on initial recognition. ‘Interest’ is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as profit margin.



(in Ethiopian Birr)




a. Financial assets (continued): Assessment whether contractual cash flows are solely payments of principal and interest (continued)

In assessing whether the contractual cash flows are solely payments of principal and interest, the Bank considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition. In making the assessment, the Bank considers:

• contingent events that would change the amount and timing of cash flows;• leverage features;• prepayment and extension terms;• terms that limit the Bank’s claim to cash flows from specified assets (e.g. non-recourse

asset arrangements); and• features that modify consideration of the time value of money – e.g. periodical reset

of interest rates.

Debt instruments measured at amortized cost

Debt instruments are measured at amortized cost if they are held within a business model whose objective is to hold for collection of contractual cash flows where those cash flows represent solely payments of principal and interest. After initial measurement, debt instruments in this category are carried at amortized cost. Interest income on these instruments is recognized in interest income using the effective interest rate method. The effective interest rate is the rate that discounts estimated future cash payments or receipts through the expected life of the financial asset to the gross carrying amount of a financial asset. Amortized cost is calculated by taking into account any discount or premium on acquisition, transaction costs and fees that are an integral part of the effective interest rate.

Impairment on debt instruments measured at amortized cost is calculated using the expected credit loss approach. Loans and debt securities measured at amortized cost are presented net of the allowance for credit losses (ACL) in the statement of financial position.

127


(in Ethiopian Birr)





Debt instruments measured at FVOCI

Debt instruments are measured at FVOCI if they are held within a business model whose objective is to hold for collection of contractual cash flows and for selling financial assets, where the assets’ cash flows represent payments that are solely payments of principal and interest. Subsequent to initial recognition, unrealized gains and losses on debt instruments measured at FVOCI are recorded in other comprehensive income (OCI). Upon derecognition, realized gains and losses are reclassified from OCI and recorded in Non-interest income in the Statement of Profit or Loss and Other Comprehensive Income on an average cost basis. Foreign exchange gains and losses that relate to the amortized cost of the debt instrument are recognized in the Statement of Profit or Loss and Other Comprehensive Income.

Premiums, discounts and related transaction costs are amortized over the expected life of the instrument to Interest income in the Statement of Profit or Loss and Other Comprehensive Income using the effective interest rate method.

Impairment on debt instruments measured at FVOCI is calculated using the expected credit loss approach. The allowance for credit losses (ACL) on debt instruments measured at FVOCI does not reduce the carrying amount of the asset in the Statement of Financial Position, which remains at its fair value. Instead, an amount equal to the allowance that would arise if the assets were measured at amortised cost is recognised in OCI with a corresponding charge to provision for credit losses in the Statement of Profit or Loss and Other Comprehensive Income. The accumulated allowance recognised in OCI is recycled to the Statement of Profit or Loss and Other Comprehensive Income upon derecognition of the debt instrument.



(in Ethiopian Birr)





Debt instruments measured at FVTPL

Debt instruments are measured at FVTPL if assets:i) Are held for trading purposes;ii) Are held as part of a portfolio managed on a fair value basis; oriii) Whose cash flows do not represent payments that are solely payments of principal

and interest.

These instruments are measured at fair value in the Statement of Financial Position, with transaction costs recognized immediately in the Statement of Profit or Loss and Other Comprehensive Income as part of Non-interest income. Realized and unrealized gains and losses are recognized as part of Non-interest income in the Statement of Profit or Loss and Other Comprehensive Income.

Debt instruments designated at FVTPL

Financial assets classified in this category are those that have been designated by the Bank upon initial recognition, and once designated, the designation is irrevocable. The FVTPL designation is available only for those financial assets for which a reliable estimate of fair value can be obtained.

Financial assets are designated at FVTPL if doing so eliminates or significantly reduces an accounting mismatch which would otherwise arise. The decision to designate relates to assets that otherwise meet requirements to be measured at amortised cost or as at FVOCI but are designated as at FVTPL to reduce account mismatch.

Financial assets designated at FVTPL are recorded in the Statement of Financial Position at fair value. Changes in fair value are recognized in Non-interest income in the Statement of Profit or Loss and Other Comprehensive Income.

Equity instruments

Equity instruments are classified into one of the following measurement categories:

• Fair value through profit or loss (FVTPL); or• Elected at fair value through other comprehensive income (FVOCI).

129


(in Ethiopian Birr)





Equity instruments measured at FVTPL

Equity instruments are measured at FVTPL, unless an election is made to designate them at FVOCI upon purchase, with transaction costs recognized immediately in the Statement of Income as part of Non-interest income. Subsequent to initial recognition the changes in fair value are recognized as part of Non-interest income in the Statement of Profit or Loss and Other Comprehensive Income.

Equity instruments measured at FVOCI

At initial recognition, there is an irrevocable option for the Bank to classify non-trading equity instruments at FVOCI. This election is used for certain equity investments for strategic or longer term investment purposes. This election is made on an instrument-by-instrument basis and is not available to equity instruments that are held for trading purposes.

Gains and losses on these instruments including when derecognized/sold are recorded in OCI and are not subsequently reclassified to the Statement of Profit or Loss and Other Comprehensive Income. As such, there is no specific impairment requirement.

Dividends received are recorded in Interest income in the Statement of Profit or Loss and Other Comprehensive Income. Any transaction costs incurred upon purchase of the security are added to the cost basis of the security and are not reclassified to the Statement of Profit or Loss and Other Comprehensive Income on sale of the security.

Reclassifications

Financial assets are not reclassified subsequent to their initial recognition, except in the period after the Bank changes its business model for managing financial assets.



(in Ethiopian Birr)




a. Financial liabilities

The Bank classifies its financial liabilities, other than financial guarantees and loan commitments, as measured at amortised cost.

The financial instruments at NBE have been classified into one of the following categories and their measurement criteria defined as follows based on their nature and business purpose:

Financial assets Measurement criteriaDue from Government of Ethiopia (Note 9)a(( Amortised costLoans to government banks (Note 9)b(( Amortised costLoans to private commercial banks (Note 9 )c(( Amortised costDue from foreign institutions – commercial banks (Note 9 )d(( Amortised costDue from foreign institutions – central banks (Note 9)e( ( Amortised costCash - foreign currencies (Note 9 )f(( Amortised costFunds held with IMF (Note 9 )g(( Amortised costLoans to employees (Note 15 )a() Amortised costInvestment securities (Note 10) Fair value through OCI

Financial liabilities Measurement criteriaDeposits from banks and government )Note 17( Amortised costDue to international financing institutions )Note 18( Amortised costDue to other institutions )Note 19( Amortised costCurrency in circulation )Note 20( Fair value (iii) Derecognition

Financial assets

The Bank derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Bank neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

On derecognition of a financial asset, the difference between the carrying amount of the asset (or the carrying amount allocated to the portion of the asset derecognized) and the sum of (i) the consideration received (including any new asset obtained less any new liability assumed) and (ii) any cumulative gain or loss that had been recognized in OCI is recognized in profit or loss.

131


(in Ethiopian Birr)



(iii) Derecognition (continued)

Financial assets (continued)

Any cumulative gain/loss recognized in OCI in respect of equity investment securities designated as at FVOCI is not recognized in profit or loss on derecognition of such securities. Any interest in transferred financial assets that qualify for derecognition that is created or retained by the Bank is recognized as a separate asset or liability.

In transactions in which the Bank neither retains nor transfers substantially all of the risks and rewards of ownership of a financial asset and it retains control over the asset, the Bank continues to recognize the asset to the extent of its continuing involvement, determined by the extent to which it is exposed to changes in the value of the transferred asset.

Financial liabilities:

The Bank derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire.

(iv) Modifications of financial assets and financial liabilities

Financial assets:

If the terms of a financial asset are modified, the Bank evaluates whether the cash flows of the modified asset are substantially different. If the cash flows are substantially different, then the contractual rights to cash flows from the original financial asset are deemed to have expired. In this case, the original financial asset is derecognized and a new financial asset is recognized at fair value.

If the terms of a financial asset were modified because of financial difficulties of the borrower and the asset was not derecognized, then impairment of the asset was measured using the pre-modification interest rate.

Financial liabilities:

The Bank derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are substantially different. In this case, a new financial liability based on the modified terms is recognized at fair value. The difference between the carrying amount of the financial liability extinguished and the new financial liability with modified terms is recognized in profit or loss.



(in Ethiopian Birr)



(v) Offsetting

Financial assets and liabilities are offset and the net amount is presented in the statement of financial position when, and only when, the Bank has a legally enforceable right to offset the amounts and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously.

Income and expenses are presented on a net basis only when permitted under IFRS, or for gains and losses arising from a group of similar transactions such as in the Bank’s trading activity.

(vi) Amortized cost measurement

The ‘amortized cost’ of a financial asset or financial liability is the amount at which the financial asset or financial liability is measured at initial recognition, minus principal repayments, plus or minus the cumulative amortization using the effective interest method of any difference between the initial amount recognized and the maturity amount, minus any reduction for impairment.

(vii) Fair value measurement‘Fair value’ is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or, in its absence, the most advantageous market to which the Bank has access at that date. The fair value of a liability reflects its non-performance risk.

When available, the Bank measures the fair value of an instrument using the quoted price in an active market for that instrument. A market is regarded as active if transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.

If there is no quoted price in an active market, then the Bank uses valuation techniques that maximize the use of relevant observable inputs and minimize the use of unobservable inputs. The chosen valuation technique incorporates all of the factors that market participants would take into account in pricing a transaction.

(viii) Impairment

The Bank recognises loss allowances for ECL on the following financial instruments that are not measured at FVTPL:

• financial assets that are debt instruments;• lease receivables;• financial guarantee contracts issued; and• loan commitments issued.

133


(in Ethiopian Birr)



(viii) Impairment (continued)

No impairment loss is recognised on equity investments.

The Bank measures loss allowances at an amount equal to lifetime ECL, except for the following, for which they are measured as 12-month ECL: debt investment securities that are determined to have low credit risk at the reporting

date; and other financial instruments (other than lease receivables) on which credit risk has not

increased significantly since their initial recognition.

Loss allowances for lease receivables are always measured at an amount equal to lifetime ECL.

At each reporting date, the Bank assesses whether there is objective evidence that financial assets not carried at fair value through profit or loss are impaired. A financial asset is ‘impaired’ when objective evidence demonstrates that a loss event has occurred after the initial recognition of the asset(s) and that the loss event has an impact on the future cash flows of the asset(s) that can be estimated reliably.

The Bank considers a debt security to have low credit risk when their credit risk rating is equivalent to the globally understood definition of ‘investment grade’.

12-month ECL is the portion of ECL that result from default events on a financial instrument that are possible within the 12 months after the reporting date.

Measurement of ECL

ECL is a probability-weighted estimate of credit losses. They are measured as follows:• financial assets that are not credit-impaired at the reporting date: as the present

value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that the Bank expects to receive);

• financial assets that are credit-impaired at the reporting date: as the difference between the gross carrying amount and the present value of estimated future cash flows;

• undrawn loan commitments: as the present value of the difference between the contractual cash flows that are due to the Bank if the commitment is drawn down and the cash flows that the Bank expects to receive; and

• financial guarantee contracts: the expected payments to reimburse the holder less any amounts that the Bank expects to recover.



(in Ethiopian Birr)




Restructured financial assets

If the terms of a financial asset are renegotiated or modified or an existing financial asset is replaced with a new one due to financial difficulties of the borrower, then an assessment is made of whether the financial asset should be derecognised and ECL are measured as follows.• If the expected restructuring will not result in derecognition of the existing asset, then

the expected cash flows arising from the modified financial asset are included in calculating the cash shortfalls from the existing asset.

• If the expected restructuring will result in derecognition of the existing asset, then the expected fair value of the new asset is treated as the final cash flow from the existing financial asset at the time of its derecognition. This amount is included in calculating the cash shortfalls from the existing financial asset that are discounted from the expected date of derecognition to the reporting date using the original effective interest rate of the existing financial asset.

Credit-impaired financial assets

At each reporting date, the Bank assesses whether financial assets carried at amortised cost and debt financial assets carried at FVOCI are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.

Evidence that a financial asset is credit-impaired includes the following observable data:• significant financial difficulty of the borrower or issuer;• a breach of contract such as a default or past due event;• the restructuring of a loan or advance by the Bank on terms that the Bank would not consider otherwise;• it is becoming probable that the borrower will enter bankruptcy or other financial

reorganisation;or• the disappearance of an active market for a security because of financial difficulties.

A loan that has been renegotiated due to a deterioration in the borrower’s condition is usually considered to be credit-impaired unless there is evidence that the risk of not receiving contractual cash flows has reduced significantly and there are no other indicators of impairment.

135


(in Ethiopian Birr)




Credit-impaired financial assets (continued)

In making an assessment of whether an investment in sovereign debt is credit-impaired, the Bank considers the following factors:• The market’s assessment of creditworthiness as reflected in the bond yields.• The rating agencies’ assessments of creditworthiness.• The country’s ability to access the capital markets for new debt issuance.• The probability of debt being restructured, resulting in holders suffering losses through

voluntary or mandatory debt forgiveness.

There are also international support mechanisms in place to provide the necessary support to NBE as ‘lender of last resort’ to that country, as well as the intention, reflected in public statements, of governments and agencies to use those mechanisms. This includes an assessment of the depth of those mechanisms and, irrespective of the political intent, whether there is the capacity to fulfil the required criteria.

Presentation of allowance for ECL in the statement of financial position

Loss allowances for ECL are presented in the statement of financial position as follows:• financial assets measured at amortised cost: as a deduction from the gross carrying

amount of the assets;• loan commitments and financial guarantee contracts: generally, as a provision;• where a financial instrument includes both a drawn and an undrawn component, and

the Bank cannot identify the ECL on the loan commitment component separately from those on the drawn component: the Bank presents a combined loss allowance for both components. The combined amount is presented as a deduction from the gross carrying amount of the drawn component. Any excess of the loss allowance over the gross amount of the drawn component is presented as a provision; and

• debt instruments measured at FVOCI: no loss allowance is recognised in the statement of financial position because the carrying amount of these assets is their fair value. However, the loss allowance is disclosed and is recognised in the fair value reserve.

Write-off

Loans and debt securities are written off (either partially or in full) when there is no realistic prospect of recovery. This is generally the case when the Bank determines that the borrower does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the write-off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Bank’s procedures for recovery of amounts due.



(in Ethiopian Birr)


(b) Property and equipment

(i) Recognition and measurement

Items of property and equipment are measured at cost, which includes capitalized borrowing costs, less accumulated depreciation and cumulative impairment losses.

Purchased software that is integral to the functionality of the related equipment is capitalized as part of that equipment.

If significant parts of an item of property or equipment have different useful lives, then they are accounted for as separate items (major components) of property and equipment.

Any gain or loss on disposal of an item of property and equipment are determined by comparing the proceeds from disposal with the carrying amount of property and equipment, and are recognized net within operating and administrative expenses in profit or loss.

(ii) Subsequent costs

Subsequent expenditure is capitalized only when it is probable that the future economic benefits of the expenditure will flow to the Bank. Ongoing repairs and maintenance are expensed as incurred.

(iii) Depreciation

Depreciation is calculated to write off the cost of items of property and equipment less their estimated residual values using the straight-line method over their estimated useful lives, and is generally recognized in profit or loss. Land is not depreciated.

The estimate useful lives of significant items of property and equipment are as follows:

● Building 5%● Furniture and fittings 20%● Office and other equipment 20% ● Motor vehicles 20%

Depreciation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate.

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(c) Intangible assets

(i) Software

Software acquired by the Bank is measured at cost less accumulated amortization and any accumulated impairment losses.

Subsequent expenditure on software assets is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure is expensed as incurred.

Software is amortized on a straight-line basis in profit or loss over its estimated useful life, from the date on which it is available for use. The estimated useful life of software for the current and comparative periods is 5 years and the same is depreciated at a rate of 20%.

Amortization methods and useful lives are reviewed at each reporting date and adjusted if appropriate.

(d) Leases (i) Bank acting as a lessee

The Bank recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial costs incurred.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. In addition, the right-of-use asset is periodically reduced by impairment losses.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the Bank’s incremental borrowing rate as the discount rate.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in a rate.

After the commencement date, the Bank measures the right-of-use asset applying a cost model (cost less any cumulative depreciation and any cumulative impairment). In the case of the lease liability, the Bank measures it by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made, and remeasuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised in-substance fixed lease payments.



(in Ethiopian Birr)


(d) Leases (continued) (i) Bank acting as a lessee (continued)

Short-term leases and leases of low-value assetsThe Bank has elected not to recognise right-of-use assets and lease liabilities for short-term leases of equipment that have a lease of 12 months or less and leases of low-value assets defined as those below ETB 135,000. The Bank recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

(ii) Bank acting as a lessor – Finance leases

Where the Bank is the lessor, it determines at lease inception whether each of its leases is an operating or finance lease.

Finance lease

A lease agreement that transfers substantially all of the risks and rewards incidental to ownership of the asset to the lessee, then the arrangement is classified as a finance lease and a receivable equal to the net investment in the lease is recognized and presented within receivable.

At the commencement date, the Bank recognizes assets held under a finance lease in its statement of financial position and present them as a receivable at an amount equal to the net investment in the lease. After the initial measurement, the Bank recognize finance income over the lease term, based on a pattern reflecting a constant periodic rate of return on the lessor’s net investment in the lease.

Operating lease

A lease agreement that does not transfer substantially all of the risks and rewards incidental to the ownership of the asset to the lease is classified as an operating lease.

The Bank recognizes lease payments from operating leases as income on either a straight-line basis or another systematic basis. The Bank applies another systematic basis if that basis is more representative of the pattern in which benefit from the use of the underlying asset is diminished.

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(e) Taxes

The Bank is exempt from income tax as defined under article 23 of Proclamation No. 591/2008.

(f) Accounting for currency expenses

Bank notes and coins costs are charged to profit or loss in the year in which the notes and coins are issued.

(g) Currency in circulation

Notes and coins in circulation are recorded at fair value. The fair value of notes and coins approximates their carrying value and represents the nominal value of all bank notes and coins held by the public and commercial banks.

(h) Inventories

The bank holds gold and office consumables as inventory. Included in the office consumables are spare parts, stationery ítems, fuel and lubricants, tyres and inner tubes and cleaning and sanitary ítems.

Gold inventory is initially measured at the lower of cost and net realisable value while office consumables are measured at cost.

Cost of inventories comprises of purchase price (after deducting trade discounts), and related tax and duty for imports, any costs directly attributable to the acquisition of the stock item such as transport costs, labour costs, unpacking, temporary warehousing fees and inspection costs and destination charges in case of imports.

Net realisable value is the price at which the inventory can be realised in the normal course of business after allowing for costs of realisation. The cost of inventories to the Bank is determined on a First in First Out (FIFO) basis.

(i) Provisions

A provision is recognized if, as a result of a past event, the Bank has a present legal or constructive obligation that can be estimated reliably as at the Statement of Financial Position date, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions at NBE are recognized in respect of legal cases and e mployee bonus payments.



(in Ethiopian Birr)


(j) Employee benefits

(i) Defined benefit plans

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Bank accounts not only for its legal obligation but also for any constructive obligation that arise from the Bank’s customary practices. A customary practice in place gives rise to a constructive obligation where the Bank has no realistic alternatives but to pay employee benefits.

The Bank’s net obligation in respect of defined benefit plans is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods. The benefit is discounted to determine its present value, and any unrecognized past service costs and the fair value of any plan assets is deducted. The discount rate is the yield at the reporting date on governmental bonds that have maturity dates approximating the terms of the Bank’s obligations and that are denominated in the same currency in which the benefits are expected to be paid.

The calculation is performed annually by a qualified actuary using the projected unit credit method. This method takes into account various parameters, specific to the Ethiopia market such as demographic assumptions, the probability that employees will leave before retirement age, salary inflation, a discount rate, general inflation rate as well as any other relevant financial assumptions. The net liability recognized with respect to post-employment benefit plans is the difference between the present value of the defined-benefit obligation and the fair value of any plan assets, if any.

When the benefits of a plan are improved, the portion of the increased benefit relating to past service by employees is recognized in profit or loss during which the services are rendered. The annual expenses recognized in the profit or loss statement under “Salaries and employee benefits” with respect to defined-benefit plans includes the current service cost (the rights vested by each employee during the period in return for service rendered), the net interests linked to the effect of discounting the net defined-benefit liability, the past service cost arising from plan amendments or curtailments, and the effect of any plan settlements.

Remeasurements of the net defined-benefit liability are recognized in other comprehensive income in the period they arise and are never reclassified to profit or loss. These include: all actuarial gains and losses arising from defined benefit plans.

141


(in Ethiopian Birr)


(j) Employee benefits (continued)

(ii) Short-term benefits

Short-term benefit obligations consist of salaries, bonuses and any non-monetary benefits. They exclude the following benefits which are expected to be paid over periods exceeding 12 months: funeral expenses; medical expenses for pension employees; prize pay; severance pay and leave benefits. Short-term benefits are measured on an undiscounted basis and are expensed as the related service is provided.

A liability is recognized for the amount expected to be paid under short-term cash bonuses if the Bank has a present legal or constructive obligation to pay this amount as a result of past services provided by the employees, and the obligation can be estimated reliably.

(iii) Termination benefits

Termination benefits are employee benefits payable in exchange for the termination of an employee’s contract as a result of either a decision by the Bank to terminate a contract of employment before legal retirement age, or a decision by an employee to accept voluntary redundancy in exchange for these benefits. Some of the termination benefits at NBE include: severance payments.

Termination benefits are expensed at the earlier of when the Bank can no longer withdraw the offer of those benefits and when the Bank recognizes costs for a restructuring. If benefits are not expected to be wholly settled within 12 months of the reporting date, then they are discounted.

(iv) Long-term benefits

These are benefits, other than short-term benefits, post-employment benefits and termination benefits. These benefits relate to compensation deferred for more than 12 months, which is accrued in the financial statements for the period in which it is earned.

The actuarial techniques used are similar to those used for defined-benefit post-employment benefits except that the revaluation items are recognized in the profit or loss and not in equity.



(in Ethiopian Birr)


(k) General reserve

The General reserve is defined in the NBE proclamation No. 591/2008. The balance of this reserve fund is dependent on the Capital amount. The limit of the General reserve should equal the Capital account.

The proclamation defines that 20% of annual profits be transferred to the General reserves till it equals the Capital. The purpose of the fund is to protect the Bank against any profit fluctuations. When the Bank experiences any losses during the year, these are transferred to the General reserve.

(l) Revenues

Revenue comprises of;● Interest income (Note 3 (m))● Revenue from gold (Note 3(n))● Fee and commission (Note 3(n))

(m) Interest

Effective interest rate

Interest income and expense are recognized in profit or loss using the effective interest method. The effective interest rate is the rate that discounts the estimated future cash payments or receipts through the expected life of the financial instrument to:

• the gross carrying amount of the financial assets; or• the amortized cost of the financial liability.

When calculating the effective interest rate for financial instruments other than credit-impaired assets, the Bank estimates future cash flows considering all contractual terms of the financial instrument, but not future credit losses. For credit-impaired financial assets, a credit adjusted effective interest rate is calculating using estimated future cash flows including expected credit losses.

The calculation of the effective interest rate includes transaction costs, fees and points paid or received that are an integral part of the effective interest rate. Transaction costs include incremental costs that are directly attributable to the acquisition or issue of a financial asset or financial liability.

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(in Ethiopian Birr)


(m) Interest (continued)

Amortized cost and gross carrying amount

The amortized cost of a financial asset or financial liability is the amount at which the financial asset or financial liability is measured on initial recognition minus the principal repayments, plus or minus the cumulative amortization using the effective interest method of any difference between the initial amount and the maturity amount and, for financial assets, adjusted for any expected credit loss allowance.

The gross carrying amount of a financial asset is the amortized cost of a financial asset before adjusting for any expected credit loss.

Calculation of interest income and expenses

In calculating interest income and expenses, the effective interest rate is applied to the gross carrying amount of the asset (when the asset is not credit-impaired) or to the amortized cost of the liability.

However, for financial assets that have become credit-impaired subsequent to initial recognition, interest income is calculated by applying the effective interest rate to the amortized cost of the financial asset. If the asset is no longer credit-impaired, then the calculation of interest income reverts to the gross basis.

For financial assets that were credit-impaired on initial recognition, interest income is calculated by applying the credit-adjusted effective interest rate to the amortized cost of the asset. The calculation of interest income does not revert to a gross basis, even if the credit risk of the asset improves.

Presentation of interest income and expenses

Interest income and expense presented in the statement of profit or loss and OCI include:• interest on financial assets and financial liabilities measured at amortised cost

calculated on an effective interest basis;• interest on debt instruments measured at FVOCI calculated on an effective interest

basis; and• interest expense on lease liabilities.

Interest income and expense on all assets and liabilities are considered to be incidental to the Bank’s trading operations and are presented together with all other changes in the fair value of assets and liabilities in net trading income.



(in Ethiopian Birr)


(n) Revenues from contracts with customers

Revenue from sale of gold, fee and commission income from contracts with customers is based on the consideration specified in a contract with a customer. The Bank recognizes revenue when it transfers control over a good or service to a customer.

The following table provides information about the nature and timing of the satisfaction of performance obligations in contracts with customers, including significant terms, and the related revenue recognition policies.

Type of product (good or(service

Nature and timing of satisfaction of performance obligations,including significant payment terms

Gold NBE recognizes revenue from gold when the customer receives right and ownership of the gold. This occurs when a deal is struck between the Bank and the customer on pricing.and the customer takes possession of the product

The Bank’s performance obligation is satisfied at a point in time.when the gold is delivered to the customer

Fee and commission income The Bank provides foreign currency transactions services to resident and non-resident entities trading in Ethiopia. It also provide services relating to selling gold, issuance of bonds and.treasury bills on behalf of the government

Transaction based fees are charged to the customer when the transaction takes place. The Bank’s performance obligations.are satisfied at a point in time

(o) Dividend income

Dividend income is recognized when the right to receive income is established. Usually, this is the ex-dividend date for quoted equity securities. Dividends are presented in net trading income, net income from other financial instruments at fair value through profit or loss (FVPTL) or other revenue based on the underlying classification of the equity investment.

(p) Due from Government of Ethiopia

Balances due from the Government of Ethiopia arise from the following transactions: — Direct advances bearing interest at 3% per annum, issued with no maturity date; — Bonds bearing interest at the rate of 2% per annum which mature on 11 June 2019 and 5 September 2020; and— Non-interest bearing bond that is expected to mature in 2030.

Other than non interest bearing bonds which are measured at fair value by discounting them using a market related interest rate, all other balances due from the Government of Ethiopia are measured at amortized cost.

145


(in Ethiopian Birr)


(q) Funds held at/due to International Monetary Fund (IMF)

Ethiopia has been a member of the International Monetary Fund (IMF) since 1966. The Bank is the designated depository for IMF’s holdings of Ethiopia’s currency. IMF currency holdings are held in the No. 1 and No. 2 Accounts, which are deposit accounts of the IMF with the Bank.

Borrowings from and repayments to the IMF are denominated in Special Drawing Rights (SDRs). The SDR balances in IMF accounts are translated into Birr at the prevailing exchange rates and any unrealized gains or losses are accounted for in accordance with accounting policy on foreign currencies.

(r) Gold

NBE is mandated by the Government to buy gold deposits locally and sell the same in international markets. NBE works in conjuction with the Ministry of Mines and Ethiopian Geology survey to undertake gold purchase activities. The Ministry is responsible for verifying purity of gold purchased by the Bank. NBE recognizes three types of gold transactions which are: gold commodity; gold in transit and monetary gold.

Gold commodity comprises of raw gold sourced locally before it is refined and sold abroad as well as gold bullion. Gold commodity not sold at year end is considered as inventory and is measured at lower of cost or net realizable value.

Gold in transit refers to gold that is held by the refineries or is in transit to refineries before it is processed to gold bullion. It is measured at the lower of cost or net realizable value.

Monetary gold refers to gold that is held at foreign reserves for monetary policy purposes. NBE invests a maximum of 8,000 ounces of gold in the form of time deposits at Commerz Bank. Monetary gold is measured at fair value with gains and losses being recognized in statement of other comprehensive income (OCI).

(s) Contingencies

Liabilities for loss contingencies are recorded when it is probable that a liability has been incurred and the amount thereof can be reasonably estimated. When a reasonable estimation cannot be made, disclosure is provided in the notes to the financial statements. Contingent revenues, earnings or assets are not recognized until realization is assured.



(in Ethiopian Birr)


(t) Comparatives

Where necessary, comparatives figures have been adjusted to conform to changes in presentation in the current year.

(u) New Standards, amendments and interpretations

(i) New standards, amendments and interpretations effective and adopted during the period ended 30 June 2018

The Bank has early adopted the following new standards and amendments during the period ended 30 June 2018. The nature and effects of the changes are explained below: New standard or amendments Effective for financial period be-

ginning on or after- Revenue contracts with customers (IFRS 15) 1 July 2018- Leases (IFRS 16) 1 July 2019- Financial instruments (IFRS 9) 1 July 2018- Prepayment Features with Negative Compensation (Amendments to IFRS 9)

1 July 2019

Revenue contracts with customers (IFRS 15)

This standard contains a single model that applies to contracts with customers and two approaches to recognising revenue: at a point in time or over time. The model features a contract-based five-step analysis of transactions to determine whether, how much and when revenue is recognised. Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The bank recognises revenue when it transfers a service to a customer. Refer to Note 6 for the impact the adoption of this standard has had on the financial statements of the Bank. Leases (IFRS 16)

The Bank recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. Refer to Note 16 for the impact the adoption of this standard has had on the financials statements of the Bank.

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(in Ethiopian Birr)


(u) New Standards, amendments and interpretations (continued)

(i) New standards, amendments and interpretations effective and adopted during the period ended 30 June 2018 (continued) Financial instruments (IFRS 9) and Prepayment Features with Negative Compensation (Amendments to IFRS 9)

IFRS 9 drives changes in the measurement bases of the Bank’s financial assets to amortised cost, fair value through other comprehensive income of fair value through profit or loss. The standard also defines measurement of impairment from an “incurred loss” model under IAS 39 to an “expected credit loss” model. The amendments to IFRS 9 clarify that financial assets containing prepayment features with negative compensation can now be measured at amortised cost or at fair value through other comprehensive income (FVOCI) if they meet the other relevant requirements of IFRS 9. Refer to Notes 9, 10 and 15 for the impact the adoption of this standard has had on the financial statements of the Bank.

(ii) New and amended standards in issue but not yet effective during the period ended 30 June 2018

The following new standards and amendments are in issue but are not yet effective during the year ended 30 June 2018, including consequential amendments to other standards with the date of initial application by the Bank being 1 July 2018. The nature and effects of the changes are as explained here in.

All standards and Interpretations will be adopted at their effective date (except for those Standards and Interpretations that are not applicable to the Bank).

New standard or amendments Effective for financial period beginning on or after

- Classification and Measurement of Share-based Payment Transactions (Amendments to IFRS 2) 1 July 2018

- IFRIC 22 Foreign Currency Transactions and Advance Consideration 1 July 2018

- IAS 40 Transfers of Investment Property 1 July 2018- Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts (Amendments to IFRS 4) 1 July 2018

- IFRIC 23 Uncertainty over Income Tax Treatments 1 July 2019- Prepayment Features with Negative Compensation (Amendments to IFRS 9) 1 July 2019

- Long-term Interests in Associates and Joint Ventures (Amendments to IAS 28) 1 July 2019

- Plan Amendment, Curtailment or Settlement (Amendment to IAS 19) 1 July 2019

- Insurance contracts (IFRS 17) 1 July 2021.



(in Ethiopian Birr)



(ii) New and amended standards in issue but not yet effective during the period ended 30 June 2018 (continued) The impact of the standards that are applicable to the Bank will be as follows:

IFRIC Interpretation 22 Foreign Currency Transactions and Advance Consideration

This Interpretation applies to a foreign currency transaction (or part of it) when an entity recognises a non-monetary asset or non-monetary liability arising from the payment or receipt of advance consideration before the entity recognises the related asset, expense or income (or part of it).

This Interpretation stipulates that the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income (or part of it) is the date on which an entity initially recognises the non-monetary asset or non-monetary liability arising from the payment or receipt of advance consideration.

This Interpretation does not apply to income taxes, insurance contracts and circumstances when an entity measures the related asset, expense or income on initial recognition:

(a) at fair value; or(b) at the fair value of the consideration paid or received at a date other than the date

of initial recognition of the non-monetary asset or non-monetary liability arising from advance consideration (for example, the measurement of goodwill applying IFRS 3 Business Combinations).

The amendments apply retrospectively for annual periods beginning on or after 1 January 2018, with early application permitted.

The management is still assessing the impact of adoption of these changes on the amounts and disclosures of the Bank’s financial statements.

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(in Ethiopian Birr)



(ii) New and amended standards in issue but not yet effective during the period ended 30 June 2018 (continued)

Plan Amendment, Curtailment or Settlement (Amendments to IAS 19)

The IASB’s amendments to IAS 19 address the accounting when a plan amendment, curtailment or settlement occurs during a reporting period.

The amendments clarify that:• on amendment, curtailment or settlement of a defined benefit plan, it is now mandatory

for entities to use the updated actuarial assumptions to determine the current service cost and net interest for the period; and

• the effect of the asset ceiling is disregarded when calculating the gain or loss on any settlement of the plan and is dealt with separately in other comprehensive income (OCI).

The management is still assessing the impact of adoption of these changes on the amounts and disclosures of the Bank’s financial statements.



(in Ethiopian Birr)

4. Interest income and expense

Interest income and expense are analyzed as follows:

Interest income For year ended

30 June 2018 For year ended

30 June 2017Advance to Central Treasury 4,401,756,571 3,410,975,747Priority sector loans 900,191,002 784,660,423Foreign time deposits 324,229,036 119,785,425Call and ordinary accounts 610,177,012 230,698,573Foreign securities 55,860,939 21,211,066Advance to domestic banks 2,110,777,919 1,669,667,566Government bonds 180,216,800 187,890,251Total interest income 8,583,209,279 6,424,889,051

Interest expense For year ended


30 June 2017NBE bills to domestic banks 1,884,351,397 1,453,861,523Government deposits 579,579,577 572,701,329International Monetary Fund 27,099,275 7,421,063Correspondent banks 1,569,335 3,118,363Interest on time deposits 738,958,207 766,214,519Total interest expense 3,231,557,791 2,803,316,797

5. Fee and commission income

Exchange service commission For year ended


30 June 2017Foreign exchange transfers 771,566,055 380,799,945Local banks 1,604,488,086 2,141,767,981Government and Government institutions 808,692,494 155,899,799Exchange service commission 3,184,746,635 2,678,467,725

Service charge commissionTreasury bills 203,494,526 140,818,275 Commission charged on local sale of gold 159,994 126,261 Service charge commission 203,654,520 140,944,536Total fee and commission income 3,388,401,155 2,819,412,261

151


(in Ethiopian Birr)

6. Revenue from sale of gold For year ended


30 June 2017Local sales 27,998,896 25,252,295Foreign sales 741,011,468 3,110,951,343

769,010,364 3,136,203,638

7. Other income For year ended


30 June 2017Dividend income 1,691,492 1,559,767 Postage, telephone and telex refunds 90,062 95,882 *License fee 5,756,158 4,644,240 Auction fee 124,249 63,961 Penalty on currency sorting 13,250 17,200 Stationery and printing 2,780 406 Sundries 8,471,326 8,115,845Service charge on cheque books 12,480 5,594 Income from local currency notes 22,000 144,227 **Gain on foreign exchange differences 1,327,773,737 1,536,531,550 Amortisation of deferred revenue 11,570 202,894

1,343,969,104 1,551,381,566

*License fees: These are earned from the issuance of new and renewal of business licenses to financial institutions giving them mandate to operate in Ethiopia. The financial institutions that are licensed include: banks, microfinance institutions as well as insurance businesses, insurance agencies, insurance actuaries, insurance surveyors and insurance brokers.

**Gain on foreign exchange differences: This balance arises when there is a gain from transactions denominated in currencies other than the Bank’s functional currency. This represents realised gains from foreign Exchange earnings

8. Operating expenses a). Currency costs

For year ended30 June 2018


Printing of bank notes 600,377,584 435,573,933 Minting of coins 111,001,166 278,592,365 Total currency costs 711,378,750 714,166,298



(in Ethiopian Birr)

8. Operating expenses (continued)

b). General and administration costs For year ended

30 June 2018For year ended

30 June 2017Depreciation and Amortisation 121,458,446 122,817,763Depreciation – Right of use asset 153,324 153,324Fuel and lubricants 1,811,946 1,814,021Membership fees 869,823 1,147,280Travelling and per diem 6,736,789 5,616,564Stationery and printing 5,305,890 3,267,984Notes destruction expenses 4,867,635 3,916,949Repair and maintenance of buildings, office furniture and equipment and motor vehicles

20,908,717 12,880,651

Advertisements 768,588 571,540Communications 8,294,888 5,694,589Utilities 1,496,383 1,863,936Reuters’ service 1,831,706 1,441,642Insurance 3,468,509 3,640,663Tuition fees 929,466 2,046,747Subscriptions 926,925 718,601Audit fees 736,000 673,381Bankers’ club 521,300 505,550Uniforms 1,392,263 1,258,178Entertainment 1,490,544 2,534,114Uncollectible amounts written-off 26,428,866 10,439,362Board fees 1,016,200 824,000Miscellaneous 15,715,654 7,963,680Total general and administration expenses 227,129,862 191,790,519c). Salaries and related benefits

For year ended 30 June 2018

For year ended 30 June 2017

Staff salaries 71,781,498 65,585,423 Periodic employees’ benefits costs 21,701,858 17,188,787Overtime 4,245,381 3,233,206 Bonus 10,209,617 9,213,688 Medical 6,638,530 6,638,494 Representation allowance 7,623,407 5,912,554 Fuel allowance 8,703,391 7,259,000 Housing allowance 9,105,002 5,829,422 Transportation allowance 149,403 203,180 Salary outsourcing 3,254,718 3,362,002 Accumulated leave expenditure 492,296 291,366 Total salaries and related benefits 143,905,101 124,717,122

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(in Ethiopian Birr)

8. Operating expenses (continued)

d). Gold purchase, refinery and other related costs



Gold purchase costs 765,937,324 3,056,830,683Gold refinery costs 7,175,774 6,612,562Gold transport and other costs 1,465,503 4,586,655

774,578,601 3,068,029,900

e). Impairment losses on financial instruments For year ended


30 June 2017Balance as at 1 July – Financial assets1 350,445,345 411,805,228Balance as at 1 July – Other assets: Loans to employees2 (920,309) (558,581)Balance as at 1 July – Other assets: Staff advances3 (663,832) (634,058)

Total Balance as at 1 July 348,861,204 410,612,589

Charged to profit or loss – Financial assets1 77,914,095 (61,359,883)Charged to profit or loss – Other assets: Loans to employees2 (248,489) 361,726 Charged to profit or loss – Other assets: Staff advances3 (100,191) 29,774Total charged to profit or loss 77,565,415 (60,968,383)

426,426,619 349,644,206

1Financial assets relates to instruments held by the bank or owed to the bank by other financial institutions. The bank has obligations of the following nature due to it from different institutions: due the Government of Ethiopia, loans to Government banks and loans to foreign commercial banks. These obligations owed to the Bank are assessed at the end of each reporting period and impairment assessments made against the outstanding balances for each. The applicable impairment loss is then recorded in the Bank’s books’ for each of the assets.

2The bank also provides loans to employees at lower rates compared to prevailing market rates. These loans to employees are assessed at the end of each reporting period and impairment assessments made against the same after which the applicable impairment loss is recorded in the Bank’s books.

3The Bank also provide staff advances to employees. These advances are checked off against the staff payroll. However, in some cases employees may leave the Bank without settling their due advances in full. The Bank therefore assesses each of these cases and provides an impairment loss allowance against the outstanding staff advance balance.



(in Ethiopian Birr)

9. Financial assets (continued)

The following balances represent financial assets disclosures after factoring in expected credit loss (ECL):

Financial assets 30 June 2018 30 June 2017 1 July 2016Due from Government of Ethiopia )a( 158,025,807,572 133,785,540,771 107,045,960,521

Loans to government banks )b( 87,874,666,731 66,973,864,941 44,169,509,975

Loans to private commercial banks*)c( - 499,222,021 -Due from foreign institutions – commercial banks )d( 14,371,743,822 12,028,240,082 10,260,588,563

Due from foreign institutions – central banks* )e( 60,893,267,700 58,862,864,221 59,060,174,943

Cash - foreign currencies* )f( 642,412,035 1,094,741,250 1,471,219,998Funds held with IMF*)g( 42,810,117 392,164,555 1,522,233,935Total Gross amounts 321,850,707,977 273,636,637,841 223,529,687,935

Allowance for credit losses 30 June 2018 30 June 2017 1 July 2016

Due from Government of Ethiopia )a( (271,804,389) (227,435,419) (289,574,285)

Loans to government banks )b( (154,401,708) (121,207,714) (120,693,582)

Loans to private commercial banks*)c( - - -Due from foreign institutions – commercial banks )d( (2,153,343) (1,802,212) (1,537,361)

Due from foreign institutions – central banks* )e( - - -

Cash - foreign currencies* )f( - - -Funds held with IMF* )g( - - -Total impairment (428,359,440) (350,445,345) (411,805,228)

Financial assets net of allowance forcredit losses 321,422,348,537 273,286,192,496 223,117,882,707

155


(in Ethiopian Birr)

9. Financial assets (continued)

Allowance for credit losses movement 30 June 2018 30 June 2017 1 July 2016Balance as at 1 July 350,445,345 411,805,228 -Charged to profit or loss 77,914,095 (61,359,883) 411,805,228Balance as at 30 June 428,359,440 350,445,345 411,805,228

*These financial assets were not impaired. For the rest of the financial assets that were impaired, the following disclosures denote the impairment of the same.

(a) Due from Government 30 June 2018 30 June 2017 1 July 2016

Direct advance1 152,264,945,000 127,764,945,000 100,764,945,000Non-interest bearing bond2 5,734,502,901 5,990,342,622 6,238,730,700Interest bearing bonds3 26,359,671 30,253,149 42,284,821

Less: allowance for credit losses (271,804,389 (227,435,419) (289,574,285)

157,754,003,183 133,558,105,352 106,756,386,236

1NBE issues on a regular basis a perpetual direct advance to the government which bears interest at the rate of 3% per annum.

2NBE has issued a non-interest bearing bond with a maturity date 1 July 2034.

3NBE has issued a 2% annual interest bonds which mature on 11 June 2019 and 5 September 2020.

(b) Loans to government banks30 June 2018 30 June 2017 1 July 2016

Development Bank of Ethiopia priority sec-tor loans1 47,692,858,488 27,543,280,813 25,907,857,662

Commercial Bank of Ethiopia Bonds2 27,751,561,643 27,362,465,753 -

Commercial Bank of Ethiopia Certificates of deposit3 12,430,246,600 12,068,200,582 18,261,652,313

Less: allowance for credit losses (154,401,708) (121,207,714) (120,693,582)87,720,265,023 66,852,739,434 44,048,816,393

1NBE issues loans to DBE for priority sector investment projects and charges interest at the rate of 3%. Such loans have a loan tenure of 5 years. 2The Bank issues bonds to the Commercial Bank of Ethiopia that bears interest at the rate of 5% (adjusted upwards to 7% in October 2017) per annum. The bond has a maturity period of 5 years repayable in six (6) equal semi-annual instalments.3NBE deposits money in Commercial Bank of Ethiopia (CBE) and in return receives certificates of deposits evidencing such deposits. The certificates of deposits are valid for six months and are subject to renewal.



(in Ethiopian Birr)

9. Financial assets (continued)(c) Loans to private commercial banks

The Bank acts a lender of last resort to local commercial banks. Such loans, which are for a period not longer than 6 months, are issued at an interest rate equivalent to the loaner’s highest lending interest rate. Banks are also required to surrender NBE bills equivalent to the loan issued.

As at the end of 30 June 2017, NBE had in its books a loan issued to one commercial bank. However the loan was not impaired as it was fully collateralized by NBE bills.

(d) Due from foreign institutions – commercial banks

30 June 2018 30 June 2017 1 July 2016Due from foreign institutions – commercial banks 14,371,743,822 12,028,240,082 10,260,588,563Less: Impairment (2,153,343) (1,802,212) (1,537,361)

14,369,590,479 12,026,437,870 10,259,051,202

The balance due from commercial banks by NBE represents call, current and time deposit accounts held with the following foreign institutions: CITIBANK New York (USD); JP Morgan Chase (USD); National Westminster - London (GBP); Nordea Bank (NOK); Commerz International bank (XAU / XAG); Commerz bank AG Luxemburg (USD and GBP); Commerz bank AG Frankfurt; Bank of Tokyo (YEN) and Standard Chartered Bank – London (GBP).

(e) Due from foreign institutions – central banks

The Bank maintains call, current and time deposits with several central banks domiciled in Europe, USA and Asia. These central banks include: Federal Reserve Bank of New York (USD); Bank for International Settlements (BIS); Bank of England (GBP); Deutsche Bundesbank (EURO); Banque Nati de Belgique (EURO); Banca D’Italia (EURO) and International Bank of Reconstruction and Development (IBRD).

(f) Cash - foreign currencies

These relate to cash held by NBE in foreign currency denominations.

The above foreign currency balances are translated to Ethiopian Birr (ETB) at each reporting date using the spot rate applicable on that date.

(g) Funds held with IMF

This is stock of IMF currency for NBE held by IMF. The holdings are held as collateral against a loan issued by IMF. The account which is denominated in SDR is used to deposite funds to effect payments against IMF obligations such as loan repayments.The SDR currency is derived from a basket of 5 currencies (USD, EURO, GBP, JPY and Yuan).

157


(in Ethiopian Birr)

9. (h) Cash and cash equivalents

Cash and cash equivalents comprise balances with less than three months’ maturity from the date of acquision, including foreign currencies on hand, balances held with foreign institutions commercial and central banks and funds held with IMF.

Cash and cash equivalents comprise:

30 June 2018 30 June 2017Balances due from foreign entities Commercial banks 14,369,590,479 12,026,437,870Balances due from foreign entities - Central banks 60,893,267,700 58,862,864,221Cash - foreign currencies 642,412,034 1,094,741,250Funds held with IMF 42,810,117 392,164,555

75,948,080,330 72,376,207,896Less: IBDR investment with maturity period over three months 1,232,928,000 1,045,066,500

74,715,152,330 71,331,141,396 10. Investment securitiesThe Bank has the following investment securities:

30 June 2018 30 June 2017 1 July 2016International Monetary Fund quota 11,595,160,049 9,282,841,517 9,023,433,145African Export-Import Bank 77,084,167 63,845,458 51,336,084Africa Re-insurance 64,032,854 47,946,677 41,596,236

11,736,277,070 9,394,633,652 9,116,365,465 The equity investments in investment securities have been measured at fair value with gains and losses recognised in other comprehensive income.The changes in the fair values of the investment instruments were as follows:

Amount ETBClosing balances – 1 July 2016 9,116,365,465

Fair value adjustments – IMF 259,408,372

Fair value adjustments – other securities 15,714,138

Foreign exchange adjustments 3,145,677

Closing balances – 30 June 2017 9,394,633,652

Fair value adjustments – IMF 2,312,318,532

Fair value adjustments – other securities 19,421,616

Foreign exchange adjustments 9,903,270

Closing balances – 30 June 2018 11,736,277,070

IMF quota is membership requirement that NBE has subscribed to. The IMF quota valuation is done on a quarterly basis by IMF.



(in Ethiopian Birr)

11. Gold

(a) Monetary gold

The Bank holds gold deposits at Commerz Bank for monetary policy purposes. This gold is measured at fair value with gains and losses relating to price changes and exchange differences being recognized in OCI.

The value of gold held as time deposits in Commerz bank is as follows:

Amount ETBOpening balances – 1 July 2016 229,822,214

Exchange rate adjustments 310,165Fair value adjustments (1,544)Closing balances – 30 June 2017 230,130,835

Exchange rate adjustments 43,191,443Fair value adjustments (214,797)Closing balances – 30 June 2018 273,107,481

(b) Gold commodity

Gold commodity comprises of raw gold sourced locally before it is refined and sold abroad as well as gold bullion. Gold commodity not sold at year end is considered as inventory and is measured at lower of cost or net realizable value.

12. Related parties

(a) Parent and ultimate controlling party

The National Bank of Ethiopia was established in 1963 under order No. 30/1963 and is fully owned by the government of Ethiopia through the Ministry of Finance (MOF).

In the normal course of its operations, the Bank enters into transactions with related parties who include the following:

i.) Key management personnel ii.) Commercial Bank of Ethiopia (NBE)iii.) Development Bank of Ethiopia (DBE)

159


(in Ethiopian Birr)

12. Related parties (continued)

(b) Key management personnel

The key management personnel of the National Bank of Ethiopia comprise of the following:

i.) The Board which includes the Governor and Vice governor in charge of monetary stability cluster ii.) Vice-Governor – Financial Institution Supervisioniii.) Vice-Governor – Corporate Service

Key management members received the following remuneration during the years ended 30 June 2018, 30 June 2017 and 1 July 2016:

30 June 2018 30 June 2017 1 July 2016

Short-term employees benefits 3,153,237 3,424,944 2,466,809

Other long term benefits 153,947 407,663 507,075Post-employment benefits 310,173 771,908 656,996

3,617,357 4,604,515 3,630,880

Compensation of the Bank’s key management personnel includes all short and long term benefits as well as consideration of their post-employment benefits. Some of the key management personnel who are not part of NBE staff such as some of the Board members, are only entitled to monthly board fee and annual bonus. These amounts are also included within salaries and related benefits note (Note 8 (c)).

(c) Loans to key management personnel

Loans to key management personnel which are issued in accordance with the Bank’s policy, are at no interest hence are at a lower rate compared to the prevailing market rates of 17.6%. These loans are guaranteed by a member of staff of NBE.

At the end of each reporting period the Bank performs an impairment assessment on the outstanding balances and provides an allowance for impairment losses. The impairment has been included in the sum total of impairment of all staff loan balances for the periods ended 30 June 2018, 30 June 2017 and 1 July 2016. The loans to key management for these periods were as follows:

30 June 2018 30 June 2017 1 July 2016Loans to key management 272,004 127,960 70,760

(d) Other related parties transactions

Some related party transactions were made on terms not equivalent to those that prevail in arm’s length transactions. These transactions include loans, deposits and foreign currency transactions.



(in Ethiopian Birr)

12. Related parties (continued)

The volumes of the related party transactions, outstanding balances at the end of the year and the related expenses and incomes for the year are as follows:

i.) Transactions with Commercial Bank of Ethiopia:

30 June 2018 30 June 2017 1 July 2016

A/R CBE Certificate of deposit USD 1,101,415,680 933,592,740 880,757,880A/R CBE Certificate of deposit USD 8,329,113,600 7,060,004,800 6,660,457,600A/R CBE Certificate of deposits ETB 5,287,591,660 5,287,591,660 12,028,892,9605% CBE Coupon bond 27,000,000,000 27,000,000,000 -

41,718,120,940 40,281,189,200 19,570,108,440

The interest earned on the CBE coupon bond was ETB 1,350,000,000 (2017: ETB 1,028,219,178).CBE certificate of deposit is a coupon rate of 0% however a market interest rate of 3% has been applied. The notional interest income recognized was ETB 362,046,018 (2017: ETB 547,849,569)

ii.) Transactions with Development Bank of Ethiopia:

30 June 2018 30 June 2017 1 July 2016

DBE Priority loan 47,292,710,000 27,226,000,000 25,607,000,00047,292,710,000 27,226,000,000 25,607,000,000

The interest earned on the DBE priority loan was ETB 900,191,002 (2017: ETB 784,660,423).

13. Property and equipment

2018 Balance at 30 June 2017 Additions Disposals Reclassif

icationsBalance at

30 June 2018

Cost Buildings ETB 1,325,897,709 - - - 1,325,897,709Office and other equipment 322,545,576 10,463,947 - - 333,009,523Office furniture and fittings 15,744,903 304,800 - - 16,049,703Motor vehicles 58,056,295 7,554,113 - - 65,610,408Work in progress 20,897,070 1,316,902 - - 22,213,972 1,743,141,553 19,639,762 - - 1,762,781,315

Depreciation Building (49,721,164) (49,721,164) - - (99,442,328)Office and other equipment (178,277,988) (45,544,995) - - (223,822,983)Office furniture and fittings (10,768,947) (1,448,369) - - (12,217,316)Motor vehicles (8,708,444) (9,048,380) - - (17,756,824) (247,476,543) (105,762,908) - - (353,239,451)

Net carrying amount ETB 1,495,665,010 (86,123,146) - - 1,409,541,864

161


(in Ethiopian Birr)

13. Property and equipment (continued)

2017 Balance at 1 July 2016 Additions Disposals Reclassif

ications Balance at 30

June 2017Cost Building ETB 1,325,897,709 - - - 1,325,897,709

Office and other equipment 287,612,227 35,215,077 (281,728) - 322,545,576

Office furniture and fittings 13,912,749 2,127,414 (295,260) - 15,744,903Motor vehicles 58,056,295 - - - 58,056,295Work in progress 13,591,420 7,305,650 - - 20,897,070 1,699,070,400 44,648,141 (576,988) - 1,743,141,553 Depreciation Building - (49,721,164) - - (49,721,164)

Office and other equipment (130,015,589) (48,541,310) 278,911 - (178,277,988)

Office furniture and fittings (9,692,494) (1,368,657) 292,204 - (10,768,947)Motor vehicles - (8,708,444) - - (8,708,444) (139,708,083) (108,339,575) 571,115 - (247,476,543)

Net carrying amount ETB 1,559,362,317 (63,691,434) (5,873) - 1,495,665,010

There were no capitalized borrowing costs related to the acquisition of property and equipment during the year (2017: Nil). Capital work in progress relates to construction of NBE branches and other IT related projects.



(in Ethiopian Birr)

14. Intangible assets

SoftwareCostBalance at 30 June 2017 ETB 81,793,144Additions 8,695,354Balance at 30 June 2018 90,488,498

Amortization and impairmentBalance at 30 June 2017 (53,023,623)Additions (15,695,538)Balance at 30 June 2018 (68,719,161)

Net carrying amount ETB 21,769,337

SoftwareCostBalance at 1 July 2016 ETB 81,793,144Additions -Balance at 30 June 2017 81,793,144

Amortization and impairmentBalance at 1 July 2016 (38,545,435)Additions (14,478,188)Balance at 30 June 2017 (53,023,623)

Net carrying amount ETB 28,769,521

Net carrying amount as at 1 July 2016 43,247,709

Intangible assets relate to software that includes banking and other related softwares.

There were no idle assets as at 30 June 2018, 2017 and 2016.

163


(in Ethiopian Birr)

15. Other assets

30 June 2018 30 June 2017 1 July 2016CBE accounts receivables 1,191,661,582 898,967,044 23,008,865,538

Commemorative souvenirs in gold and silver 11,424,926 11,489,345 11,611,642

Loans to employees )a( 12,075,040 9,621,922 7,499,407Staff advances )b( 3,076,642 3,732,351 1,739,335Inventory )c( 8,784,495 10,610,414 8,373,403Uncleared effects 5,044,182 7,495,769 7,269,316Sundry receivables 288,581,393 825,868,557 768,535,099Miscellaneous* (102,760,217) (92,766,612) 109,678,986

1,417,888,043 1,675,018,790 23,923,572,726 * The balances under the Miscellaneous account relate to the following items: Defective new printing bank notes claim, system differences on time deposits and IBRD, CMD cash shortage excess and CMD unadjusted notes in circulation. The CMD unadjusted notes in circulation is the biggest contributor to the negative debit balance as shown in periods 30 June 2018 and 30 June 2017.

(a) Loans to employees

The Bank extends interest free loans, which are therefore at a lower rate compared to the prevailing market rates and bear annual interest of 17.6%, to all its staff in accordance with the Bank’s policy. The loans are repayable within three years and are secured by a guarantor.

The Bank performs an impairment test on a continuous basis and provides an allowance for impairment losses at the reporting date. Loans to employees for the three periods were as follows:

30 June 2018 30 June 2017 1 July 2016Gross Loans to employees 16,655,817 12,230,692 8,049,139 Write off uncollectible amounts ( 50,537) (64,949) 8,849Fair value adjustment (3,858,420) (1,623,512) -Cumulative Impairment losses (671,820) (920,309) (558,581) Net Loans to employees 12,075,040 9,621,922 7,499,407

Movement of impairment losses for staff loan accounts 30 June 2018 30 June 2017 1 July 2016Balance as at 1 July (920,309) (558,581) -Charged to profit or loss 248,489 (361,728) (558,581)Balance as at 30 June (671,820) (920,309) (558,581)



(in Ethiopian Birr)

15. Other assets (continued)

(b) Staff advances

The following table shows the staff advances breakdown:

30 June 2018 30 June 2017 1 July 2016Gross staff advances 3,640,283 4,396,183 2,373,393 Cumulative Impairment losses (563,641) (663,832) (634,058) Net staff advances 3,076,642 3,732,351 1,739,335

Movement of impairment losses for staff advances 30 June 2018 30 June 2017 1 July 2016

Balance as at 1 July (663,832) (634,058) -Charged to profit or loss 100,191 (29,774) (634,058)Balance as at 30 June (563,641) (663,832) (634,058)

(c) Inventory

The breakdown of inventory items is as shown below: Inventory 30 June 2018 30 June 2017 1 July 2016Gross carrying amount 12,447,197 13,633,712 7,563,331 Inventory items – adjustments (3,662,702) (3,023,298) 810,072 Net carrying amount 8,784,495 10,610,414 8,373,403

The Bank’s inventories comprise office consumables such as spare parts, stationary items, uniforms, stocks of facilities for office equipment, buildings, sorting and shredding machine, cleaning and sanitary materials, fuel and lubricant, tyres and inner tubes. These inventories are not meant for resale and are therefore measured at cost.

The Bank has adopted a policy to recognize such inventory at cost and thereby expense the costs as the stocks are used.

165


(in Ethiopian Birr)

16. Right of use assets

The Bank leases a number of assets comprising of buildings. Information about leases for which the Bank is a lessee is presented below:

Right-of-use assets:

30 June 2018 30 June 2017 1 July 2016

Cost

Balance at the beginning of the year 2,759,826 2,759,826 -

Additions - - 2,759,826 Balance as at 30 June 2,759,826 2,759,826 2,759,826

DepreciationBalance as at 1 July (153,324) (-) (-)Charge for the year (153,324) (153,324) (-)Balance at 30 June (306,648) (153,324) (-)

Net carrying value 2,453,178 2,606,502 2,759,826

Lease liabilities:30 June 2018 30 June 2017 1 July 2016

Balance at beginning of the year 2,649,886 2,739,241 -Lease liability for the year - - 2,739,241Interest expense 152,304 157,665 -Payments made during the year (247,020) (247,020) -

Net carrying value 2,555,170 2,649,886 2,739,241



(in Ethiopian Birr)

16. Right of use assets (continued)Maturity analysis:

30 June 2018 30 June 2017 1 July 2016Less than 1 year 247,020 247,020 247,020 1 – 2 years 247,020 247,020 247,020 3 – 5 years 741,060 741,060 741,060 More than 5 years 1,320,070 1,414,786 1,504,141

Total 2,555,170 2,649,886 2,739,241

NBE calculated lease related assets and liabilities per its accounting policy disclosed on Note 3 (d). As a lender of last resort, the Bank is not subject to conventional borrowing patterns of a conventional commercial bank. In the event that the Bank had to borrow funds equivalent to the value of the right of use asset, the Bank would be financed by the Government through issuance of a bond. The Bank used an incremental borrowing rate that is equivalent to the Grand Renaissance bond issued by the government. As at 1 July 2016, the Grand Renaissance bond was issued at a rate of 6%. The Bank adopted this rate as its incremental borrowing rate for purposes of computing its lease liabilities.

17. Deposits due to local financial institutions, government and government institutions

Deposits due to banks and the Government were as follows:

Domestic currency deposits 30 June 2018 30 June 2017 1 July 2016Deposits from banks 61,652,838,774 52,315,458,014 37,608,498,849NBE bills payable to domestic banks1 72,122,986,284 56,520,240,626 43,680,971,689Due to insurance companies 21,645,403 35,989,541 46,156,616Government and governmental agencies2 19,911,019,054 14,741,806,271 14,042,322,992

153,708,489,515 123,613,494,452 95,377,950,146

Foreign currency depositsGovernment and governmental agencies 20,862,188,607 19,248,833,998 33,552,105,248

20,862,188,607 19,248,833,998 33,552,105,248Deposits from banks and government 174,570,678,122 142,862,328,450 128,930,055,394

1NBE requires that all private banks purchase bills valued at 27% of the value of their monthly loans issued to their customers. NBE issues five-year bills at a rate of 3% in order to foster financial stability within the country and control inflation.2The Government and Government agencies deposit money with NBE. These deposits are denominated in both domestic and foreign currencies with domestic deposits earning interest at the rate of 3% pa. The obligation arising from NBE holding these deposits is measured at cost i.e. the actual value of the deposit. The finance cost is recognized as an expense in the statement of profit or loss over the period NBE holds the deposit.

167


(in Ethiopian Birr)

17. Deposits due to local financial instiitutions, government and government institutions (continued)

Deposits from banks is made up of the following:

30 June 2018 30 June 2017 1 July 2016

Payment and Settlement accounts 13,503,515,809 16,699,601,495 9,375,948,251

Reserve accounts 36,931,342,105 28,554,809,454 22,069,552,943

Issue accounts 11,217,980,860 7,061,047,065 6,162,997,655

61,652,838,774 52,315,458,014 37,608,498,849

18. Due to International Financing institutions

Deposits due to international financing institutions were as follows:

30 June 2018 30 June 2017 1 July 2016International Monetary Fund (IMF) 18,987,913,618 16,655,699,436 17,159,313,996

International Bank for Reconstruction and Development (IBRD) 21,534,960 8,725,571 2,391,986

International Development Association 705,068 705,068 705,068Multilateral Investment Guarantee Agency 156,782 156,782 156,782

19,010,310,428 16,665,286,857 17,162,567,832

NBE holds funds it has received from international financing institutions as either loans or direct bank deposits that it is obliged to repay back as per the membership agreements. The obligation is measured at amortized cost.

NBE has four types of obligations to IMF as follows:

International Monetary Fund 30 June 2018 30 June 2017 1 July 2016

IMF deposits 5,736,378,654 3,424,374,652 3,163,950,632

IMF loans 2,502,213,082 3,295,999,342 4,271,468,725SDR allocation 4,936,570,884 4,122,574,444 3,911,143,641Promissory notes 5,812,750,998 5,812,750,998 5,812,750,998

18,987,913,618 16,655,699,436 17,159,313,996



(in Ethiopian Birr)

19. Due to other institutions

30 June 2018 30 June 2017 1 July 2016Deposits from foreign institutions

Foreign currency deposits due to International institutions 133,215,278 111,574,944 102,448,042

Time deposits due to Saudi Arabia* 20,622,433,200 23,305,994,019 21,909,400,00020,755,648,478 23,417,568,963 22,011,848,042

* The time deposits due to Saudi Arabia relates to funds received from the Saudi Arabia government in November 2015. The amount deposited with NBE was US$ 1 billion and was deposited for a period of 6 years at an interest rate of 3%. NBE did not offer any collateral for the time deposit.

20. Currency in circulation

30 June 2018 30 June 2017 1 July 2016Notes 111,866,697,505 93,373,868,039 81,912,124,772 Coins 1,044,268,526 871,646,495 680,581,611

112,910,966,031 94,245,514,534 82,592,706,383

NBE issues notes and coins on behalf of the government to the country to run the economy; monitor the inflation rates and maintain economic stability. These are non-interest bearing liabilities and are due on demand.

21. ProvisionsBonuses Legal Total

Balances at 1 July 2016 8,197,975 - 8,197,975Increases (decrease) recorded in income 9,213,688 - 9,213,688Paid during the year (8,197,975) - (8,197,975)

Balances at 30 June 2017 9,213,688 - 9,213,688

Increases /(decrease) recorded in income 10,209,617 83,048 10,292,665Provisions used during the year (9,213,688) - (9,213,688)

Balances at 30 June 2018 10,209,617 83,048 10,292,665

Bonus represent short-term benefits arising from past services provided by employees and are expected to be paid within the next 12 months.

Legal provisions represent various claims that are pending outcome at the courts. The Bank has created a provision for this amount to ensure the Bank is covered when the legal claims are decided against the Bank’s favour. Historically, the Bank has lost majority of the labour related cases and as such deems it prudent to create a provision to cover for this eventuality. The Bank is currently involved in a labour case whose monetary value is ETB 83,048. The ruling on this case is yet to be determined as at 30 June 2018.

169


(in Ethiopian Birr)

22. Government grants

(a) Land grant

NBE received 5 pieces of land from the Federal government. On these pieces, the Bank has constructed the following buildings namely: old building, new building, mint building, Akaki building and CBB building. Below are the details of land received from Federal government:

Location Sub-city Land issue date Size (metres squared) Lease termAddis Ababa Akaki Kaliti 03 July 2019 165,067 -Addis Ababa Lideta 17 July 2011 7,669 -Addis Ababa Lideta 12 January 1999 5,862 -Addis Ababa Lideta 01 July 1978 - -Addis Ababa Kirkos 23 November 2016 - -

The Bank further received 5 pieces of land from the regional governments and chartered cities which were awarded free of charge. The Bank settled displacement cost and annual government land use rates related to the land received. The land was donated to NBE in order to enhance the Banks’ ability to provide central banking services to institutions in various regions and cities. The right to use additional land in Kombolcha (Amhara region) commenced on 9 February 2016 and is still in progress. There are no unfulfilled conditions or contingencies attached to these government assistance.

Below are the details of land received from the regional governments:

Regional government Location Land issue date Size (metres squared) Lease term

Tigre Mekele 20 October 2015 8,807 -Amhara Bahir Dar City 20 October 2015 12,000 70 yearsSNNP Hawasa 05 August 2016 10,855 99 yearsSNNP Wolata Sodo 29 October 2015 12,000 -Diredawa Dire dawa 06 July 2017 12,000 99 yearsAmhara Kombolcha 09 February 2016 - -

(b) Monetary donation

Monetary grants refer to donations received in the form of money. The Bank received a monetary donation for the purchase of twenty laptops from Rural Financial Intermediation Programme II (RUFIP) on 14 May 2018.

The laptops were donated for use by the Microfinance Supervision Directorate to enhance efficiency in provision of services to Microfinance institutions. The Bank adopted government grant accounting for asset-based grants and recognizes the laptops at cost under property and equipment. The laptops have been classified under property and equipment.



(in Ethiopian Birr)

22. Government grants (continued)

(c) Non-monetary donation

Non monetary grants refer to donations received in kind. The Bank received one motor vehicle from the European Union on 01 October 2003 and two motor vehicles (Toyota land cruiser station wagon) from RUFIP for the RUFIP project on 7 September 2005. The Bank also received donated hardware and software from World Bank for the CIC system project in the year 2011 and 2012.

The Bank recognised the motor vehicles at fair value using the gross method while the computer software and hardware were recognized at nominal value using the gross method.

There are no unfulfilled conditions or contingencies attached to these donations

(d) Deferred revenue

Deferred revenueCostBalance at 30 June 2017 ETB 202,894 Additions 459,009Balance at 30 June 2018 661,903

AmortizationBalance at 30 June 2017 (202,894) Additions (11,570)Balance at 30 June 2018 (214,464)

Net balance ETB 447,439

Deferred revenueCostBalance at 1 July 2016 ETB 202,894 Additions -Balance at 30 June 2017 202,894

AmortizationBalance at 1 July 2016 -

Additions (202,894)Balance at 30 June 2017 (202,894)

Net balance ETB -

Net balance as at 1 July 2016 202,894

171


(in Ethiopian Birr)

23. Due to the Ministry of Finance

30 June 2018 30 June 2017 1 July 2016Balance as at 30 June 6,407,483,115 5,318,057,037 6,751,579,441

Less: Dividends paid during the year (6,407,483,115) (5,318,057,037) (6,751,579,441)

- - -

Add: Operating surplus for the year 8,185,860,505 6,407,483,115 5,318,057,037Balance as at 30 June 8,185,860,505 6,407,483,115 5,318,057,037

The Bank is owned by the Government through the Ministry of Finance. It is expected to remit all profits earned during the year as dividends to the Ministry subject to having fulfilled the required threshold for its General reserves (Note 26).

24. Employee benefits

(a) Movements in the present value of defined benefit obligations (DBO)

30 June 2018 30 June 2017 1 July 2016DBO at beginning of the year 163,866,323 141,193,620 141,193,620Current service costs 14,375,516 11,450,932 -Interest cost 9,715,674 8,371,243 -Past service cost - 13,703 -Payments/Settlements in the year (2,389,332) (2,647,091) (-)Included in profit or loss 185,568,181 158,382,407 -Actuarial gains (losses) recognized in other comprehensive income (71,666,951) 5,483,916 -

DBO at the end of the year 113,901,230 163,866,323 141,193,620

This defined benefit plan exposes the Bank to actuarial risks, such as longevity risk, currency risk, interest risk and market risk.

(b) Actuarial losses/ (gains) recognized in other comprehensive income

30 June 2018 30 June 2017Cumulative amount at 1 July (5,483,916) -Recognized during the year 71,666,951 (5,483,916)Actuarial losses/(gains) 66,183,035 (5,483,916)



(in Ethiopian Birr)

24. Employee benefits (continued)

(c) Actuarial assumptions

The principal actuarial assumptions at the reporting date are detailed below:

30 June 2018 30 June 2017 1 July 2016Discount rate 8.00 % 6.00 % 6.00 %Salary increase rate 12.00 % 12.00 % 12.00 %Long term inflation rate 8.70 % 8.70 % 8.70 %Long term medical inflation rate 10.70 % 10.70 % 10.70 %

The assumed discount rates are derived from rates available on government bonds for which the timing and amounts of payments match the timing and the amounts of our projected post-employment benefits pay-outs.

Reasonably possible changes at the reporting date, in any of the actuarial assumptions and assuming that all the other variables remain constant, would have affected the defined benefit obligations as of 30 June 2018 by the amounts shown below:

Sensitivity analysis:June 2018 30

Increase Decrease(Discount rate (0.50% movement (8,999,644) 10,310,928

(Salary increase rate (1.00% movement 1,789,556 (1,540,557)

The above sensitivity analysis has been determined based on reasonably possible changes on the actuarial assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

25. Other liabilities

Other liabilities as of the reporting dates are as follows:

30 June 2018 30 June 2017 1 July 2016Letters of credit 290,551,144 800,680,879 728,719,889Accounts payable 128,634,666 147,575,398 317,800,152Sundry creditors 40,628,097 69,738,866 71,599,690

459,813,907 1,017,995,143 1,118,119,731

173


(in Ethiopian Birr)

26. Capital and other Reserves (a) Capital

Capital is defined in the NBE proclamation No. 591/2008 and has been set at ETB 500 M (2017: ETB 500 M) as per parliamentary mandate. Any changes in the Capital are determined through review of economic policy issues and the need to manage macro-economic policy issues and maintain market stability.

Capital is meant to act as a risk management tool and covers the Bank against any risk and also prevents insolvency. The Bank is wholly owned by the Government of the Federal Democratic Republic of Ethiopia.

(b) General reserve

The General Reserve is a statutory reserve and is defined in the NBE proclamation No. 591/2008. The Balance of this reserve is dependent on the Capital amount. The proclamation defines that 20% of annual profits be transferred to the General reserve till it equals Capital.

The purpose of this reserve is to protect the Bank against any profit fluctuations. In the event that the Bank experiences any losses during the year, these are transferred to the General reserve.

The current limit of the General Reserve has been met since it equals the Capital account’s current balance of ETB 500 M. No further transfers to this reserve are required for now.

(c) International reserve valuation

This reserve was set up to absorb foreign currency gains and losses during translation. The NBE proclamation and parliamentary directives have not set any limits or thresholds for this reserve.

The balance of this reserve account is not available for distribution since it relates to unrealized effects from foreign currency translations.

(d) Retained Earnings

This reserve acts as a temporary reserve. The proclamation states that 20% of annual profits be transferred to the General reserve till it matches the Capital. After this limit has been reached, all profits earned during the year are transferred to the Ministry of Finance (MOF) as dividends.

(e) Fair value reserve

This reserve comprises the cumulative net change in the fair value changes on financial instruments (non-interest bearing bond, CBE certificate of deposit), investment securities and monetary gold. All unrealized gains and losses are recognized in other comprehensive income and credited to the fair value reserve until the investment is derecognized or impaired.



(in Ethiopian Birr)

26. Capital and other Reserves (continued)

(f) Defined benefit reserve

This reserve represents the present value of the defined benefit obligation that the Bank has set aside to enable pay-out of employees’ long-term and post-employment liabilities as they fall due. This reserve is not available for distribution.

(g) Other reserve

This reserve arises from the IFRS transition adjustments. This reserve is not available for distribution.

27. Financial risk review

The Bank is involved in policy-oriented activities including targeted inflationary monetary policy using monetary controlling instruments. With this regard, the Bank’s risk management framework differs from the risk management frameworks for commercial banks because of the difference in their perspective objectives and the nature of assets and liabilities. The Bank’s overall risk management programme focuses on the Bank’s role of maintaining price and exchange rate stability and supporting sustainable economic growth.

The Bank is exposed to a wide array of risks such as foreign currency liquidity, credit, foreign exchange rate, interest rate and gold price movement risks. Financial risk management requires identifying sources of risks, measuring of risks, and designing and implementing appropriate risk management tools, techniques and structure.

The Financial risks have been measured using foreign exchange liquidity gap, interest sensitive asset-liability gap, single foreign currency asset-liability open positions, and credit risk exposure measurement techniques. The major sources of Bank’s financial risks are mismatches of assets and liabilities, counter party failure to repay the balances, changes in foreign exchange and interest rate as well as movement in gold prices.

a.) Financial risks (continued)

The responsibility for risk management is decentralized and is carried out by the different directorates with the Board of Directors providing oversight role. A Risk management team is responsible for advising the management on the monitoring and management of all risks that the Bank faces. The Internal Audit and Risk Management Directorate (IAMRD) is responsible for the development and regular update of the Risk Management Framework. The Directorate regularly reviews and monitors the implementation and effectiveness of the risk management process, including the development of an appropriate risk management culture across the Bank.

175


(in Ethiopian Birr)

27. Financial risk review (continued)

The main financial risks to which the Bank is exposed include:

a.) Financial risks include:● Credit risk● Market risks including: Interest rate risk; Gold commodity price risk and Foreign exchange risk

b.) Liquidity risk

c.) Non-financial risks include:● Operational risk● Human resource risk● Reputational risk● Cyber security risk assessment

i.) Credit risk Credit risk is the risk of loss arising from the failure of a borrower, issuer, counterparty or customer to meet its financial obligation to the Bank. Credit risk could result from complete or partial failure of the counterparties to fulfill their contractual financial obligations with the Bank in accordance with agreed terms or from change in credit quality.

Credit risk exposures arise from investment securities, balances due from banking institutions, funds held with IMF, loans and advances as well as other assets. The Bank has no significant concentrations of credit risk except for the securities relating to Government of Ethiopia.

Management of credit risk is through a choice of depository banks. The Bank’s choice of depository banks is confined to top international banks that meet the set eligibility criteria of financial soundness on long-term credit rating (A), short-term credit rating (F1), composite rating and capital adequacy.

The amount that best represents the Bank’s maximum exposure to credit risk is per the statement of financial position.The Bank assesses the credit quality of these assets. None of the balances have had their terms renegotiated as a result of non-performance. Management monitors the credit exposure of staff on a continuous basis, taking into account their financial position, past experience and other factors.



(in Ethiopian Birr)



Credit quality analysis

The following table sets out information about the credit quality of financial assets measured at amortised cost, FVOCI debt investments. Unless specifically indicated, for financial assets, the amounts in the table represent gross carrying amounts. For loan commitments the amounts in the table represent the amounts committed.

30 June 2018

Staging 30 June 2017 1 July 2016

Financial assets Stage 1 Stage 2 Stage 3 Total TotalBalances due from foreign en-tities – commercial banks 14,369,590,479 - - 12,026,437,870 10,259,051,202

Balances due from foreign en-tities – Central banks 60,893,267,700 - - 58,862,864,221 59,060,174,943

Cash - foreign currencies 642,412,034 - - 1,094,741,250 1,471,219,998 Funds held with IMF 42,810,117 - - 392,164,555 1,522,233,935 Loans to government banks 87,720,265,023 - 66,852,657,227 44,048,816,393Loans to private commercial banks - - - 499,222,021 -

Other assets – Loans to em-ployees 11,737,619 - 337,421 9,621,922 7,499,407Other assets – Staff advances 2,577,572 - 499,070 3,732,352 1,739,335Due from Government of Ethi-opia 157,754,003,183 - - 133,558,105,352 106,756,386,236

Carrying amount 321,436,663,727 - 836,491 273,299,546,770 223,127,121,449

Impairment of loans is recognised - on an individual or collective basis - in three stages under IFRS 9. Stage 1 refers to defualt events that are possible within the next 12 months from loan origination. Stage 2 refers to significant increase in credit risk since initial recognition. Stage 3 refers to an increase in a loan’s credit risk to the point where it is considered credit-impaired. Further explanations on the approaches to staging are included in Note 3 (a). None of NBE’s financial assets have been classified under stage 2 during the three financial years.

177


(in Ethiopian Birr)



i.) Credit risk (continued)

Credit Risk Exposure

Credit Risk Exposure by Credit Rating

The table below shows the credit ratings by rating agencies for the different counterparties that the Bank engages with and denotes the credit quality of financial assets traded with these entities.

No List of Correspondent Banks – Current Accounts Balances Type of Institution Credit Ratings as of 30 June

2018Fitch S&P Moody’s

1 Commercial Bank of Ethiopia Commercial Bank NR NR NR2 Federal Reserve Bank of New York Central Bank AAA AAA Aaa3 Bank of England Central Bank AAA AA Aa24 Deutsche BundesBank, Zentrale Central Bank A A A25 BIS Basel Central Bank AAA AAA Aaa6 Citibank, New York Commercial Bank A+ A+ A17 Bank of Tokyo, Mitsubishi Commercial Bank A+ A+ A18 Commerz Bank, A.G. Dusseldorf Commercial Bank BBB+ BBB+ Baa19 National West Minster Bank, London Commercial Bank A A A210 Standard Chartered Bank, London Commercial Bank A+ A+ A111 JP Morgan Chase Bank, New York Commercial Bank A+ A+ A112 Nordea Bank, NBE Commercial Bank AA- AA- Aa313 ING Belgium SA/NV Commercial Bank A+ A+ A1

‘NR’ refers to No Rating by Credit Agencies.



(in Ethiopian Birr)




a.) Amounts arising from ECL

Inputs, assumptions and techniques used for estimating impairment

Significant increase in credit risk

When determining whether the risk of default on a financial instrument has increased significantly since initial recognition, the Bank considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Bank’s historical experience and expert credit assessment and including forward-looking information. The Bank assesses significant increase in credit risk at portfolio level, of which the definition varies based on the asset type and contractual obligation of the counterparty.

If there is evidence that there is no longer a significant increase in credit risk relative to initial recognition, then the loss allowance on an instrument returns to being measured as 12-month ECL.

Some qualitative indicators of an increase in credit risk, such as delinquency or forbearance, may be indicative of an increased risk of default that persists after the indicator itself has ceased to exist. In these cases, the Bank determines a probation period during which the financial asset is required to demonstrate good behavior to provide evidence that its credit risk has declined sufficiently.

When contractual terms of a loan have been modified, evidence that the criteria for recognizing lifetime ECL are no longer met includes a history of up-to-date payment performance against the modified contractual terms.

The Bank monitors the effectiveness of the criteria used to identify significant increases in credit risk by regular reviews to confirm that:

– The criteria are capable of identifying significant increases in credit risk before an exposure is in default;

– The average time between the identification of a significant increase in credit risk and default appears reasonable;

– there is no unwarranted volatility in loss allowance from transfers between 12-month PD (Stage 1) and lifetime PD (Stage 2).

Definition of default

The Bank considers a financial asset to be in default when:– The borrower is unlikely to pay its credit obligations to the Bank in full, without recourse by

the Bank to actions such as realizing security (if any is held);– A counterparty goes into delinquency, liquidation or forbearance;– For short – term loans, the borrower is in arrears beyond the contractual maturity date; or– it is becoming probable that the borrower will restructure the asset as a result of

bankruptcy due to the borrower’s inability to pay its credit obligations.

179


(in Ethiopian Birr)




a.) Amounts arising from ECL (continued)

Inputs, assumptions and techniques used for estimating impairment (Continued)

Definition of default (continued)

In assessing whether a borrower is in default, the Bank considers indicators that are:– Qualitative: e.g. breaches of covenant and liquidation;– Quantitative: e.g. overdue status and non-payment on another obligation of the same

issuer to the Bank due to credit distress; and– based on data sourced internally and obtained from external sources. Inputs into the assessment of whether a financial instrument is in default and their

significance may vary over time to reflect changes in circumstances.

Incorporation of forward-looking information

The Bank incorporates forward-looking information into both the assessment of whether the credit risk of exposures has increased significantly since its initial recognition and the measurement of ECL.

The Bank uses historical default rates (2012 to 2017) by external rating agencies as well as lagged, Business Monitor International (BMI) Ethiopian historical macroeconomic data (2011 to 2016) to establish linear regression relationships. From an initial data assessment of 541 macroeconomic factors, a combination of correlation, quantitative and qualitative covariance analysis is used to establish significance. A series of regression analysis is then performed. The resultant linear regression equation is used to adjust the rating agencies’ probabilities of default for quantitative expectations on future movements in established macroeconomic factors. The Bank revises this approach at least annually to incorporate changes within reporting periods.

Where statistical methods of forward – looking incorporation are unfeasible, the Bank applies a segment – level management overlay adjustment based on qualitative analysis of current economic conditions, operating environment and future expectations.

Based on the Bank’s statistical analysis, the key drivers for credit risk for local government – affiliated exposures are: private final consumption and total revenue as a percentage of the GDP.

Modified financial assets

The contractual terms of a financial asset may be modified for a number of reasons, including changing market conditions, customer retention and other factors not related to a current or potential credit deterioration of the customer. An existing facility whose terms have been modified may be derecognised and the renegotiated loan recognised as a new facility at fair value in accordance with the accounting policy set out in Note 3 (a (iv)).



(in Ethiopian Birr)




a.) Amounts arising from ECL (Continued) Inputs, assumptions and techniques used for estimating impairment (Continued)Modified financial assets (Continued)

When the terms of a financial asset are modified and the modification does not result in derecognition, the determination of whether the asset’s credit risk has increased significantly reflects comparison of:

– The rationale for modification; with– The Bank’s assessment of available and supportable information with regards to the

counterparty’s credit risk profile prior to and after modification.

When modification results in derecognition, a new facility is recognised and allocated to Stage 1 (assuming it is not credit-impaired at that time).The Bank may renegotiate loans to banks in financial difficulties (referred to as ‘forbearance activities’) to maximise collection opportunities and minimise the risk of default. Under the Bank’s forbearance policy, loan forbearance is granted on a selective basis if the debtor is currently in default on its debt or if there is a high risk of default, there is evidence that the debtor made all reasonable efforts to pay under the original contractual terms and the debtor is expected to be able to meet the revised terms.

The revised terms usually include extending the maturity, changing the timing of interest payments and amending the terms of covenants.

For financial assets modified as part of the Bank’s forbearance policy, the estimate of PD reflects whether the modification has improved or restored the Bank’s ability to collect interest and principal and the Bank’s previous experience of similar forbearance action. As part of this process, the Bank evaluates the borrower’s payment performance against the modified contractual terms and considers various behavioural indicators.

Generally, forbearance is a qualitative indicator of a significant increase in credit risk and an expectation of forbearance may constitute evidence that an exposure is credit-impaired (see Note 3 (a (viii)). A counterparty needs to demonstrate consistently good payment behaviour over a period of time before the exposure is no longer considered to be credit-impaired/in default or the PD is considered to have decreased such that the loss allowance reverts to being measured at an amount equal to Stage 1.

Measurement of ECLThe key inputs into the measurement of ECL are the term structure of the following variables:

– Probability of default (PD);– Loss given default (LGD); and– Exposure at default (EAD).

ECL for exposures in Stage 1 is calculated by multiplying the 12-month PD by LGD and EAD. Lifetime ECL is calculated by multiplying the lifetime PD by LGD and EAD.The methodology of estimating PDs is discussed above under the heading ‘Generating the term structure of PD’.

181


(in Ethiopian Birr)27. Financial risk review (continued)



a.) Amounts arising from ECL (continued)

Inputs, assumptions and techniques used for estimating impairment (Continued)

Measurement of ECL )Continued(

LGD is the magnitude of the likely loss if there is a default. The Bank primarily estimates LGD parameters based on the history of recovery rates of claims against defaulted counterparties. The LGD is measured at segment level. For segments with no previous default experience, the Bank applies a minimum LGD approach, benchmarking against the Basel internal ratings – based measurement approach.

EAD represents the expected exposure in the event of a default. The Bank derives the EAD from the current exposure to the counterparty and potential changes to the current amount allowed under the contract and arising from amortization. The EAD of a financial asset is its gross carrying amount at the time of default.

As described above, and subject to using a maximum of a 12-month PD for Stage 1 financial assets, the Bank measures ECL considering the risk of default over the maximum contractual period (including any borrower’s extension options) over which it is exposed to credit risk, even if, for credit risk management purposes, the Bank considers a longer period.

Where modelling of a parameter is carried out on a collective basis, the financial instruments are grouped on the basis of shared risk characteristics that primarily include risk assessment of the Bank’s counterparties.

The groupings are subject to regular review to ensure that exposures within a particular group remain appropriately homogeneous.

For portfolios in respect of which the Bank has limited historical data, external benchmark information is used to supplement the internally available data. The portfolios for which external benchmark information represents a significant input into measurement of ECL are as follows:

External rating usedSegment Exposure ETB PD LGDGovernment 158,025,807,572 S&P default studies BaselGovernment banks 87,874,666,731 S&P default studies BaselForeign deposits - S&P default studies Internal modelLocal commercial banks - S&P default studies Basel

No List of Active Depository Banks Type of InstitutionCredit Ratings as of 30 June 2018Fitch S&P Moody’s

1 Commercial Bank of Ethiopia Commercial Bank NR NR NR



(in Ethiopian Birr)



ii.) Market risk

‘Market risk’ is the risk that changes in market prices – e.g. interest rates, equity prices, foreign exchange rates and credit spreads – will affect the Bank’s income or the value of its holdings of financial instruments. The objective of the Bank’s market risk management is to manage and control market risk exposures within acceptable parameters to ensure the Bank’s solvency while optimizing the return on risk.

Market risks arise from open positions in interest rate, currency and equity prices, all of which are exposed to general and specific market movements and changes in the level of volatility of market rates or prices such as interest rates, foreign exchange rates and equity prices.

Equity price risk

Equity price risk refers to the potential loss in fair value resulting from adverse changes in the fair value of stocks that the Bank has invested in. Equity price risk is subject to regular monitoring, but is not currently significant in relation to the Bank’s overall results and financial position.

Interest rate riskInterest rate risk is the exposure of the Bank’s financial assets and liabilities to adverse movements in interest rates. If unexpected changes arise in interest rates, there is a possibility of loss due to sensitivity of the Bank’s assets and liabilities to rate variability.

The main source of the Bank’s interest rate risk is re-pricing risk. Bank’s interest bearing assets and liabilities may be re-priced at different times and rates. The Bank’s foreign currency reserve may be exposed to foreign currency interest rate risk when the adjustment of the rates earned and paid on different instruments are re-priced. When interest rates change, these differences can change the cash flows and spread between foreign assets and foreign liabilities of similar maturities or re-pricing frequencies.

The Bank measures its interest rate exposure using a maturity/re-pricing schedule that distributes interest-sensitive assets and liabilities into “time-bands” according to their maturity or time remaining to their next re-pricing. The size of the gap for a given time band (assets less liabilities that re-price or mature within that time band) gives an indication of the Bank’s re-pricing risk exposure.

The Interest rate risk is managed principally through monitoring interest rate gaps and by having pre-approved limits for interest rate fluctuations. The Foreign Exchange Monitoring and Reserve Management (FEMRMD) Directorate is the monitoring body for compliance within these limits. These day-to-day activities include monitoring changes in the Bank’s interest rate exposures, which include the impact of the Bank’s outstanding or forecast debt obligations.

183




ii.) Market risk (continued)

Interest rate risk

The following is a summary of the Bank’s interest rate risk gap position on financial instruments. The interest rate repricing gap table analyses the full-term structure of interest rate mismatches within the Bank’s balance sheet based on either (i) the next repricing date or the maturity date if floating rate or (ii) the maturity date if fixed rate.

30 June 2018

1 – 3 months

ETB

3 – 12 months

ETB

1 - 5 years

ETB

Over 5 years

ETB

Non-interest bearing bond

ETB

TotalETB

Financial assetsDue from Government of Ethiopia - 2,359,672 152,017,140,610 - 5,734,502,901 157,754,003,183

Loans to government Banks - 1,151,710,131 74,138,308,292 - 12,430,246,600 87,720,265,023

Loans to private commercial banks - - - - - -

Due from foreign institutions - commercial Banks -

14,369,590,479 - - - 14,369,590,479

Due from foreign institutions - central Banks - 60,893,267,700 - - - 60,893,267,700 Funds held with IMF - - 42,810,117 - - 42,810,117 Other assets - Loans to employees - 12,075,040 - - - 12,075,040

Other assets - Staff advances - 3,076,642 - - - 3,076,642

Total financial assets - 76,432,079,664 226,198,259,019 - 18,164,749,501 320,795,088,184Financial liabilitiesDeposits from banks and government - 174,570,678,122 - - - 174,570,678,122

Funds due to international financing institutions - - - - 19,010,310,428 19,010,310,428

Due to other institutions - - - - 20,755,648,478 20,755,648,478

Ministry of Finance - - - - 8,185,860,505 8,185,860,505Total financial liabilities - 174,570,678,122 - - 47,951,819,411 222,522,497,533 Interest rate risk sensitivity gap - (98,138,598,458) 226,198,259,019 - (29,787,069,910) 98,272,590,651



(in Ethiopian Birr)27. Financial risk review



Interest rate risk

30 June 20171 – 3

monthsETB

3 – 12 months

ETB

1 - 5 yearsETB

Over 5 years

ETB


ETB

TotalETB

Financial assetsDue from Government of Ethiopia - 2,253,149 127,565,509,581 - 5,990,342,622 133,558,105,352 Loans to government Banks - 679,746,566 54,104,710,079 - 12,068,200,582 66,852,657,227 Loans to private commercial Banks - 499,222,021 - - - 499,222,021 Due from foreign institutions - commercial Banks -

12,026,437,870 - - -

12,026,437,870

Due from foreign institutions - central Banks - 58,862,864,221 - - -

58,862,864,221

Funds held with IMF - - 392,164,555 - - 392,164,555 Other assets - Loans to employees -

9,621,922 - - - 9,621,922

Other assets - Staff advances - 3,732,352 - - - 3,732,352 Total financial assets - 72,083,878,101 182,062,384,215 - 18,058,543,204 272,204,805,520Financial liabilitiesDeposits from banks and government - 142,826,328,450 - - 142,826,328,450


Due to other institutions - - - - 23,417,568,963 23,417,568,963 Ministry of Finance - - - 6,407,483,115 6,407,483,115Total financial liabilities - 142,826,328,450 - - 46,490,338,935 189,316,667,385

Interest rate risk sensitivity gap - (70,742,450,349) 182,062,384,215 - (28,431,795,731) 82,888,138,135

185


(in Ethiopian Birr)27. Financial risk review (continued)a.) Financial risks (continued)ii.) Market risk (continued)

Interest rate risk

1 July 2016

1 – 3 months

ETB

3 – 12 months

ETB

1 - 5 years

ETB

Over 5 years

ETB


ETB

TotalETB

Financial assets

Due from Government of Ethiopia - 2,284,821 100,515,370,714 - 6,238,730,701

106,756,386,236

Loans to government Banks - 300,857,662 25,486,306,418 - 18,261,652,313 44,048,816,393

Loans to private commercial Banks - - - - - -

Due from foreign institutions - commercial Banks -

10,259,051,202 - - -

10,259,051,202

Due from foreign institutions - central Banks - 59,060,174,943 - - -

59,060,174,943

Funds held with IMF - - 1,522,233,935 - - 1,522,233,935

Other assets - Loans to employees - 7,499,407 - - - 7,499,407

Other assets - Staff advances - 1,739,335 - - - 1,739,335

Total financial assets - 69,631,607,370 127,523,911,067 - 24,500,383,014 221,655,901,451 Financial liabilities

Deposits from banks and government - 128,930,055,394 - - - 128,930,055,394


Due to other institutions - - - - 22,011,848,042 22,011,848,042

Ministry of Finance - - 5,318,057,037 5,318,057,037

Total financial liabilities - 128,930,055,394 - - 44,492,472,911 173,422,528,305

Interest rate risk sensitivity gap - (59,298,448,024) 127,523,911,067 - (19,992,089,897) 48,233,373,146





ii.) Market risk (continued) Interest rate risk sensitivity analysis

The Bank takes on exposure to the effects of fluctuations in the prevailing levels of market interest rates on both its fair value and cash flow risks. Interest margins may increase or decrease as a result of such changes which may cause either an increase or decrease in profit or loss. The impact on financial assets and liabilities of an increase or decrease in interest rates by 0.5 percent would be as follows:

30 June 2018 Effect on Profit/Loss Effect on EquityFinancial Instruments 0.5% increase 0.5% decrease 0.5% increase 0.5% decrease Financial assetsLoans to employees (101,480) 101,480 (101,480) 101,480 Due from Government of Ethiopia (790,117,240) 790,117,240 (790,117,240) 790,117,240 Loans to government Banks (433,739,313) 433,739,313 (433,739,313) 433,739,313 Due from foreign institutions - central Banks (304,466,338) 304,466,338 (304,466,338) 304,466,338

Loans to private commercial banks - - - -Due from foreign institutions - commercial Banks (73,269,855) 73,269,855 (73,269,855) 73,269,855

Total assets (ETB) (1,601,694,226) 1,601,694,226 (1,601,694,226) 1,601,694,226

Financial liabilitiesDue to local financial institutions, Government and governmental agencies

(99,555,095) 99,555,095 (99,555,095) 99,555,095

Due to other institutions (103,112,166) 103,112,166 (103,112,166) 103,112,166Total liabilities (ETB) (202,667,261) 202,667,261 (202,667,261) 202,667,261Net interest (increase)/ decrease (1,399,026,965) 1,399,026,965 (1,399,026,965) 1,399,026,965Impact on profits (1,399,026,965) 1,399,026,965 (1,399,026,965) 1,399,026,965

187


(in Ethiopian Birr)



ii.) Market risk (continued) Interest rate risk sensitivity analysis (continued)

30 June 2017 Effect on Profit/Loss Effect on Equity

Financial Instruments 0.5% increase 0.5% decrease 0.5% increase 0.5% decrease

Financial assets

Loans to employees (83,124 83,134 (83,124 83,134

Due from Government of Ethiopia (668,916,438) 668,916,438 (668,916,438) 668,916,438

Loans to government banks (331,591,906) 331,591,906 (331,591,906) 331,591,906

Due from foreign institutions - central Banks (294,314,321) 294,314,321 (294,314,321) 294,314,321

Loans to private commercial banks (2,496,110) 2,496,110 (2,496,110) 2,496,110 Due from foreign institutions - commercial Banks (61,343,808) 61,343,808 (61,343,808) 61,343,808

Total assets (ETB) (1,358,745,717) 1,358,745,717 (1,358,745,717) 1,358,745,717

Financial liabilities

Due to local financial institutions, Government and governmental agencies (73,709,031) 73,709,031 (73,709,031) 73,709,031

Due to other institutions (116,529,970) 116,529,970 (116,529,970) 116,529,970

Total liabilities (ETB) (190,239,001) 190,239,001 (190,239,001) 190,239,001

Net interest (increase)/ decrease (1,168,506,716) 1,168,506,716 (1,168,506,716) 1,168,506,716

Impact on profits (1,168,506,716) 1,168,506,716 (1,168,506,716) 1,168,506,716






Interest rate risk sensitivity analysis (continued)

1 July 2016 Effect on Profit/Loss Effect on EquityFinancial Instruments 0.5% increase 0.5% decrease 0.5% increase 0.5% decrease Financial assetsLoans to employees (52,113) 52,113 (52,113) 52,113 Due from Government of Ethiopia (535,218,379) 535,218,379 (535,218,379) 535,218,379

Loans to government Banks (219,460,643) 219,460,643 (219,460,643) 219,460,643 Due from foreign institutions - central Banks (303,175,868) 303,175,868 (303,175,868) 303,175,868 Loans to private commercial banks - - - -

Due from foreign institutions - commercial Banks (55,566,977) 55,566,977 (55,566,977) 55,566,977

Total assets (ETB) (1,113,473,979) 1,113,473,979 (1,113,473,979) 1,113,473,979

Financial liabilitiesDue to local financial institutions, Government and governmental agencies (70,211,615) 70,211,615 (70,211,615) 70,211,615

Due to other institutions (109,547,000) 109,547,000 (109,547,000) 109,547,000 Total liabilities (ETB) (179,758,615) 179,758,615 (179,758,615) 179,758,615 Net interest (increase)/ decrease (933,715,364) 933,715,364 (933,715,364) 933,715,364

Impact on profits (933,715,364) 933,715,364 (933,715,364) 933,715,364

189


(in Ethiopian Birr)




Foreign Exchange rate risk

Foreign exchange rate fluctuation risk is the risk of adverse movements in exchange rates that will result in a decrease in value of foreign exchange assets or an increase in the value of foreign currency liabilities. Foreign exchange fluctuations expose the Bank to changes in the amounts of foreign assets and liabilities held by the Bank. The Bank measures its foreign exchange risk using a single foreign currency open position based on balance sheet amounts in spot markets. It is a risk of volatility due to a mismatch and adverse exchange rate movements during a period in which it has an open balance sheet position in an individual foreign currency.

The mid-exchange rates of major currencies against the Ethiopian Birr at each year end was as follows;

Mid-Exchange rates

Currency 30 June 2018 30 June 2017 1 July 2016US dollar (USD) 27.40 23.22 21.91Great Britain Pound (GBP) 35.86 30.11 29.43EURO 31.73 26.49 24.28Special drawing rights (SDR) 38.59 32.23 30.57Ounce of Gold (XAU) 34,307.47 28,908.79 28,870.02Norwegian Krone (NOK) 3.35 2.76 2.60Japanese Yen (JPY) 0.25 0.21 0.21


NATIONAL BANK OF ETHIOPIAN

OTE

S TO

FIN

AN

CIA

L ST

ATE

MEN

TSFO

R TH

E YE

AR

ENDE

D 30

JUN

E 20

18(in

Eth

iopi

an B

irr)

27.

Fina

ncia

l risk

revi

ew (c

ontin

ued)

a.)

Fina

ncia

l risk

s (c

ontin

ued)

ii.)

Mar

ket r

isk (c

ontin

ued)

Fore

ign

Exch

ange

risk

(con

tinue

d)

The

tabl

e be

low

sum

mar

ises t

he B

ank’

s exp

osur

e to

fore

ign

curre

ncy

exch

ange

rate

risk

as a

t 30

June

201

8. In

clud

ed in

the

tabl

e ar

e th

e Ba

nk’s

fina

ncia

l inst

rum

ents

cat

egor

ized

by

curre

ncy:

USD

GBP

EUR

SDR

XAU

NO

KJY

PO

ther

sTo

tal

ETB

ETB

ETB

ETB

ETB

ETB

ETB

ETB

ETB

At 3

0 Ju

ne 2

018

Ass

ets

Due

from

fore

ign

inst

itutio

ns -

com

mer

cial

Ban

ks 4

5,41

7,14

0,40

6 2

,544

,838

,167

4

,537

,323

-

274

,614

,125

1

5,11

1,27

6 10

,240

,038

(4

25)

48,2

66,4

80,9

10

Due

from

fore

ign

inst

itutio

ns -

cent

ral B

anks

27,2

82,5

61,2

34

--

--

--

-27

,282

,561

,234

Fund

s hel

d w

ith IM

F-

--

42,8

10,1

17-

--

- 4

2,81

0,11

7

Fore

ign

curre

ncie

s 6

15,1

88,6

10

8,1

58,7

40

18,

706,

798

--

415

,498

-

357

,803

6

42,8

27,4

49

Tota

l fina

ncia

l ass

ets

73,3

14,8

90,2

502,

552,

996,

907

23,2

44,1

2142

,810

,117

274,

614,

125

15,5

26,7

7410

,240

,038

357,

378

76,2

34,6

79,7

10

Liabi

litie

sD

epos

its fr

om b

anks

and

go

vern

men

t(1

9,33

8,08

1,78

7)(1

3,27

8,25

0)(1

,453

,182

,903

)-

-(5

7,64

5,66

1)-

-(2

0,86

2,18

8,60

1)

Fund

s due

to in

tern

atio

nal

finan

cing

inst

itutio

ns-

--

(7,4

47,0

00,6

80)

--

--

(7,4

47,0

00,6

80)

Due

to o

ther

inst

itutio

ns(2

0,62

2,43

3,20

0)-

(126

,931

,635

)-

--

-(6

,283

,642

)(2

0,75

5,64

8,47

7)

Writ

e of

f-

--

--

-

Tota

l fina

ncia

l lia

bilit

ies

(39,

960,

514,

987)

(13,

278,

250)

(1,5

80,1

14,5

38)(

7,44

7,00

0,68

0)-

(57,

645,

661)

-(6

,283

,642

)(49

,064

,837

,758

)N

et p

ositi

on 3

3,35

4,37

5,26

32,

539,

718,

657

(1,5

56,8

70,4

17) (

7,40

4,19

0,56

3)27

4,61

4,12

5 (4

2,11

8,88

7) 1

0,24

0,03

8 (5

,926

,264

)27

,169

,841

,952

191


OTE

S TO

FIN

AN

CIA

L ST

ATE

MEN

TSFO

R TH

E YE

AR

ENDE

D 30

JUN

E 20

18(in

Eth

iopi

an B

irr)

27.

Fina

ncia

l risk

revi

ew (c

ontin

ued)

a.)

Fina

ncia

l risk

s (c

ontin

ued)

ii.)

Mar

ket r

isk (c

ontin

ued)

Fore

ign

Exch

ange

risk

(con

tinue

d) USD

GBP

EUR

SDR

XAU

NO

KJY

PO

ther

sTo

tal

ETB

ETB

ETB

ETB

ETB

ETB

ETB

ETB

ETB

At 3

0 Ju

ne 2

017

Ass

ets

Due

from

fore

ign

inst

itutio

ns

- com

mer

cial

ban

ks44

,785

,327

,391

2,36

6,00

4,35

3 4

3,42

2,73

1 -

231

,375

,240

550,

093,

130

48

,810

,219

(5

99)

48,0

25,0

32,4

65

Due

from

fore

ign

inst

itutio

ns

- cen

tral B

anks

23,

107,

581,

500

--

--

--

- 2

3,10

7,58

1,50

0

Fund

s hel

d w

ith IM

F-

--

392,

562,

564

--

--

392

,562

,564

Fo

reig

n cu

rrenc

ies

989

,574

,960

1

7,59

6,53

3 6

,489

,216

-

--

- 6

8,53

5,92

1 1

,082

,196

,630

Tota

l fina

ncia

l ass

ets

68,8

82,4

83,8

512,

383,

600,

886

49,9

11,9

47

392,

562,

564

231,

375,

240

550,

093,

130

48,8

10,2

19

68

,535

,322

72,6

07,3

73,1

59

Liabi

litie

s (1

8,22

0,19

9,71

6) (3

1,65

3,10

0) (9

36,0

43,9

06)

-(6

0,93

3,48

2)-

(3,9

22)

(19,

248,

834,

126)

Dep

osits

from

ban

ks a

nd

gove

rnm

ent

-(7

,425

,435

,636

)-

--

- (7

,425

,435

,636

)

Fund

s due

to in

tern

atio

nal

finan

cing

inst

itutio

ns-

--

Due

to o

ther

inst

itutio

ns (2

3,30

5,58

6,76

6)-

(105

,955

,800

) -

- (5

,619

,144

)- (2

3,41

7,16

1,71

0)

Tota

l fina

ncia

l lia

bilit

ies

(41,5

25,78

6,482

)(3

1,653

,100)

(1,04

1,999

,706)

(7,42

5,435

,636)

-(6

0,933

,482)

-(5

,623,0

66)

] (50

,091,4

31,47

2)

Net

pos

ition

27,35

6,697

,369

2,351

,947,7

86(9

92,08

7,759

)(7

,032,8

73,07

2)23

1,375

,240

489,1

59,64

848

,810,2

1962

,912,2

56 22

,515,9

41,68

7


NO

TES

TO F

INA

NC

IAL

STA

TEM

ENTS

FOR

THE

YEA

R EN

DED

30 J

UNE

2018

(in E

thio

pian

Birr

)27

. Fi

nanc

ial r

isk re

view

(con

tinue

d)a.

) F

inan

cial

risk

s (c

ontin

ued)

ii.) M

arke

t risk

(con

tinue

d)

Fore

ign

Exch

ange

risk

(con

tinue

d)US

DG

BPEU

RSD

RXA

UN

OK

JYP

Oth

ers

Tota

lET

BET

BET

BET

BET

BET

BET

BET

BET

BA

t 1 J

uly

2016

Ass

ets

Due

from

fore

ign

inst

itutio

ns -

com

mer

cial

ban

ks 4

7,57

1,01

2,81

0 2,

772,

498,

945

59,

834,

127

-23

0,97

1,41

1 4

01,3

25,0

46

5,11

6,32

0 (6

14)

51,

040,

758,

045

Due

from

fore

ign

inst

itutio

ns -

cent

ral

Bank

s18

,519

,728

,721

-

--

--

--

18

,519

,728

,721

Fund

s hel

d w

ith IM

F -

--

1,52

2,42

4,72

2-

--

- 1

,522

,424

,722

Fo

reig

n cu

rrenc

ies

959

,751

,303

2

2,59

1,45

4 1

05,9

21,6

26

--

5,1

95,6

00

4,48

3,50

0 37

3,28

2,77

4 1

,471

,226

,257

To

tal fi

nanc

ial

asse

ts 6

7,05

0,49

2,83

4 2

,795

,090

,399

16

5,75

5,75

3 1,

522,

424,

722

230

,971

,411

406

,520

,646

9,5

99,8

2037

3,28

2,16

0 72

,554

,137

,745

Liabi

litie

sD

epos

its fr

om b

anks

an

d g

over

nmen

t(3

1,60

2,41

7,09

7)

(955

,527

,501

) (9

74,7

05,4

74)

--

(19,

451,

572)

- (3

,709

) (3

3,55

2,10

5,35

3)

Writ

e of

f -

Fund

s due

to

inte

rnat

iona

l fin

anci

ng in

stitu

tions

--

-(4

,277

,978

,658

)-

--

- (4

,277

,978

,658

)

Due

to o

ther

in

stitu

tions

(21,

909,

400,

000)

-

(97,

137,

418)

-

--

- (5

,310

,624

) (2

2,01

1,84

8,04

2)

Tota

l fina

ncia

l lia

bilit

ies

(53,

511,

817,

097)

(9

55,5

27,5

01) (

1,07

1,84

2,89

2) (

4,27

7,97

8,65

8)-

(19,

451,

572)

- (5

,314

,333

) (5

9,84

1,93

2,05

3)

Net

pos

ition

13,

538,

675,

737

1,8

39,5

62,8

98 (

906,

087,

139)

(2,

755,

553,

936)

230

,971

,411

387

,069

,074

9,5

99,8

20 3

67,9

67,8

27

12,7

12,2

05,6

92)

193


(in Ethiopian Birr)

27. Financial risk review (continued)a.) Financial risks (continued)ii.) Market risk (continued)

The table below shows the effect of the ETB weakening/strengthening by 10% against all the major currencies with all other variables held constant:

Financial Instruments Effect on Profit/Loss Effect on Equity

30 June 2018 10% increase(Weakening)

10% decrease(Strengthening)

10% increase(Weakening)


Financial assets (7,623,467,264) 7,623,467,263 (7,623,467,264) 7,623,467,263 Financial liabilities (4,906,483,279) 4,906,483,278 (4,906,483,279) 4,906,483,278 Total (ETB) (12,529,950,543) 12,529,950,541 (12,529,950,543) 12,529,950,541













Gold commodity price risk

Gold commodity price risk is the risk that gold commodity prices will change adversely. It refers to uncertainties of future market values and size of the future income, caused by fluctuations in the prices of gold commodities. The Bank as part of its operations, is responsible for purchase and sale of gold commodities. Gold by nature is subject to price fluctuation risk. The average gold per ounce for the last 3 years and the effect of a 10% change in the same on profit/loss and equity are shown below:

Period Average price of gold/Ounce

Effect on Profit/Loss

Effect onEquity

ETB 10% increase 10% decrease 10% increase 10% decrease30 June 2018 34,510.35 345 (345) 345 (345)30 June 2017 28,839.14 288 (288) 288 (288)1 July 2016 28,629.03 286 (286) 286 (286)



(in Ethiopian Birr)


b.) Liquidity risk

Liquidity risk is the risk of encountering difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset in a timely manner at reasonable prices. Some liabilities in the Bank’s books have no fixed maturity including Currency in circulation and Domestic currency deposits from banks, insurance companies and Government and governmental agencies.

Liquidity risk represents the potential loss to the Bank if it is unable to settle its financial obligations as they fall due and is represented through a maturity mismatch assessment between foreign exchange assets and liabilities.

This risk emanates from the nature of banking business, from the macro factors that are exogenous to the Bank, as well as from financing and operational policies that are internal to the Bank.

In Ethiopian Birr, there is no liquidity risk as the Bank is able to create Birr liquidity through its market operations.

For foreign currency, in addition to holding appropriate cash balances, the Bank manages liquidity through holding a portfolio of liquid foreign exchange reserves.

The Foreign Exchange Monitoring and Reserve Management Directorate (FEMRMD) monitors and reviews information on the Bank’s liquidity developments and reports risk exposures and funding needs to the Executive Management on a regular basis. The FEMRMD mitigates its foreign currency liquidity risk by conducting detailed analysis of the maturities of foreign currency asset-liability gap size. The Bank sets limits, where appropriate, on liquidity metrics and employs monitoring and controlling of liquidity risk exposures for each maturity ladder.

The table below analyses the Bank’s financial liabilities that will be settled on a net basis into relevant maturity groupings based on the remaining period at the statement of financial position date to the contractual maturity date. The amounts disclosed in the table below are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances, as the impact of discounting is not significant.

195


(in Ethiopian Birr)


b.) Liquidity riskUpto 12 months

ETB1 - 5 years

ETBOver 5 years

ETBTotalETB

At 30 June 2018AssetsDue from Government of Ethiopia 2,359,672 157,751,643,511 - 157,754,003,183Loans to government Banks 13,581,956,731 74,138,308,292 - 87,720,265,023Loans to private commercial banks - - - -Due from foreign institutions - commercial Banks 14,369,590,479 - - 14,369,590,479

Due from foreign institutions - central banks 60,893,267,700 - - 60,893,267,700 Funds held with IMF - 42,810,117 - 42,810,117 Other assets - Loans to employees 12,075,040 - - 12,075,040Other assets - Staff advances 3,076,642 - - 3,076,642Total financial assets 88,862,326,264 231,932,761,920 - 320,795,088,184LiabilitiesDeposits from local financial institutions, government and government institutions 174,570,678,122 - - 174,570,678,122Funds due to international financing institutions 19,010,310,428 - - 19,010,310,428Due to other institutions 20,755,648,478 - - 20,755,648,478Due to the Ministry of Finance 8,185,860,505 - - 8,185,860,505Other liabilities 459,813,907 - - 459,813,907Total financial liabilities 222,982,311,440 - - 222,982,311,440Net maturity difference (134,119,985,176) 231,932,761,920 - 97,812,776,744

Upto 12 months

ETB

1 - 5 years

ETB

Over 5 years

ETBTotalETB

At 30 June 2017AssetsDue from Government of Ethiopia 2,253,149 133,555,852,203 - 133,558,105,352 Loans to government Banks 12,747,947,148 54,104,710,079 - 66,852,657,227 Loans to private commercial banks 499,222,021 - - 499,222,021 Due from foreign institutions - commercial Banks 12,026,437,870 - - 12,026,437,870

Due from foreign institutions - central banks 58,862,864,221 - - 58,862,864,221 Funds held with IMF - 392,164,555 - 392,164,555 Other assets - Loans to employees 9,621,922 - - 9,621,922Other assets - Staff advances 3,732,352 - - 3,732,352 Total financial assets 84,152,078,683 188,052,726,837 - 272,204,805,520LiabilitiesDeposits from local financial institutions, government and government institutions 142,826,328,450 - - 142,826,328,450

Funds due to international financing institutions 16,665,286,857 - - 16,665,286,857 Due to other institutions 23,417,568,963 - - 23,417,568,963 Due to the Ministry of Finance 6,407,483,115 - - 6,407,483,115 Other liabilities 1,017,995,143 - - 1,017,995,143 Total financial liabilities 190,334,662,528 - - 190,334,662,528 Net maturity difference (106,182,583,845) 188,052,726,837 - 81,870,142,992



(in Ethiopian Birr)


b.) Liquidity risk (continued)

Upto 12 monthsETB

years 5 - 1ETB

Over 5years

ETB

TotalETB

At 30 June 2016AssetsDue from Government of Ethiopia 2,284,821 106,754,101,415 - 106,756,386,236Loans to government Banks 18,562,509,975 25,486,306,418 - 44,048,816,393Loans to private commercial banks - - - -

Due from foreign institutions - commercialBanks 10,259,051,202 - - 10,259,051,202

Due from foreign institutions - centralbanks 59,060,174,943 - - 59,060,174,943

Funds held with IMF - 1,522,233,935 - 1,522,233,935Other assets - Loans to employees 7,499,407 - - 7,499,407Other assets - Staff advances 1,739,335 - - 1,739,335Total financial assets 87,893,259,683 133,762,641,768 - 221,655,901,451Liabilities

Deposits from local financial institutions,government and government institutions 128,930,055,394 - - 128,930,055,394

Funds due to international financinginstitutions 17,162,567,832 - - 17,162,567,832

Due to other institutions 22,011,848,042 - - 22,011,848,042Due to the Ministry of Finance 5,318,057,037 - - 5,318,057,037Other liabilities 1,118,119,731 - - 1,118,119,731Total financial liabilities 174,540,648,036 - - 174,540,648,036Net maturity difference (86,647,388,353) 133,762,641,768 - 47,115,253,415

197



c.) Non-financial risks

i.) Strategic risk

Strategic risk might arise from the deviation of monetary policy target, which may adversely affect the economy and the effectiveness of financial institutions in following set policies and directives, its monetary policy operations and supervisory activities and governance of financial institutions that determine stability of the financial sector.

The Bank manages its strategic risk through undertaking effective monetary policy, the country’s exchange rate policy; and conducting periodic economic studies, together with forecasts of the balance of payments, money supply, prices and other relevant statistical indicators of the Ethiopian economy useful for analysis and for the formulation and determination of its monetary, saving and exchange policies.

Furthermore, the Bank has undertaken prudential onsite and offsite inspection and monitoring of the financial sector on a continuous basis that is aimed at ensuring the soundness of the country’s financial system.

ii.) Operational risk

Operational risk is the financial and non-financial risk to the Bank that could result in financial loss, reputational damage or inability to achieve business objectives. This could arise from human errors, failure of internal processes, people and systems or from external events. Operational risks to the Bank includes: legal, security, business disruption, project management, human resource, IT systems and general business practices and fraud risks.

The Bank has made continuous efforts to minimize losses from operational risks by establishing effective internal control systems which prevent or detect all errors and situations which might cause losses through failure of people or processes. The work units of the Bank perform their activities based on their respective policies and procedures and take their own roles and responsibilities to manage operational risks emanating from their activities on their day to day business operations.

iii.) Cyber security risk

The Bank is exposed to cyber security risk. This is the inherent risk arising from technologies, processes and practices designed to protect the Bank’s information assets, that is, computers, networks, programs and data from unauthorized access.



(in Ethiopian Birr)


c.) Non-financial risks (continued)

iii.) Cyber security risk (continued)

The Bank performs an assessment of this risk at two different levels of management to identify the potential risk and manage proactively to ensure the Bank’s information security is safeguarded. At strategic management level, creating security policies dealing with people issues and evaluating threats and risks. Tactical management level deals with how the security systems are developed and implemented to meet policy requirements.

iv.) Reputational risk

This is the risk associated with the real or perceived loss of credibility and effectiveness as a result of negative publicity arising from a failure to comply with applicable laws or in managing risks, lack of fulfillment of roles and objectives or other external events.

It can be viewed as secondary since the reputational damage is usually caused by a loss or failure in the following areas: strategic; finance or operational risk.

The Bank has the responsibility to stabilize the value of money, the soundness and efficiency of the financial system and the issue of currency (Bank notes and coins). All of these matters have direct impact on all citizens; therefore, how the Bank communicates to the public is of critical importance to maintaining its credibility and in the successful fulfillment of its responsibilities.

In managing reputational risk, the Bank communicates to the public by crafting a consistent message regarding its role and policies, and ensures that this message is effectively communicated to the public.

v.) Custodial risk on statutory deposits

The Bank is a custodian of government bonds and securities that are pledged by insurance companies as statutory deposits pursuant to the provisions of insurance business proclamation No. 746/2012. The Bank has a responsibility to keep the bond certificates safe to avoid any financial losses. To mitigate the risk, the Bank records and keeps all copies of statutory deposits certificates in its custody in secure vaults.

199


(in Ethiopian Birr)

28. Fair value of financial instrument

a. Valuation models

The Bank measures fair values using the following fair value hierarchy, which reflects the significance of the inputs used in making the measurements.

— Level 1: Inputs that are quoted market prices (unadjusted) in active markets for identical instruments.

— Level 2: Inputs other than quoted prices included within Level 1 that are observable either directly (i.e. as prices) or indirectly (i.e. derived from prices). This category includes instruments valued using: quoted market prices in active markets for similar instruments; quoted prices for identical or similar instruments in markets that are considered less than active; or other valuation techniques in which all significant inputs are directly or indirectly observable from market data.

— Level 3: Inputs that are unobservable. This category includes all instruments for which the valuation technique includes inputs that are not observable and the unobservable inputs have a significant effect on the instrument’s valuation. This category includes instruments that are valued based on quoted prices for similar instruments for which significant unobservable adjustments or assumptions are required to reflect differences between the instruments.

Valuation techniques include net present value and discounted cash flow models, comparison with similar instruments for which observable market prices exist.

The objective of valuation techniques is to arrive at a fair value measurement that reflects the price that would be received to sell the asset or paid to transfer the liability in an orderly transaction between market participants at the measurement date. The fair value of a liability reflects the effect of non-performance risk.

The following sets out the Bank’s basis of establishing fair values of financial instruments:Investment securities with observable market prices including equity securities are fair valued using that information. Investment securities that do not have observable market data are fair valued using discounted cash flow method or quoted market prices for securities with similar yield characteristics.

Loans and advances to government, government institutions and staff are net of allowance for impairment. The estimated fair value of the loans represents the discounted amount of future cash flows expected to be received. Expected cash flows are discounted at current market rates to determine fair value hence their fair values approximates their carrying amounts.

Estimated fair value of fixed interest bearing deposits and bonds without quoted market prices is based on discounting cash flows using the prevailing market rates for debts with similar maturities and interest rates, hence their fair value approximates their carrying amounts.



OTE

S TO

FIN

AN

CIA

L ST

ATE

MEN

TSFO

R TH

E YE

AR

ENDE

D 30

JUN

E 20

18(in

Eth

iopi

an B

irr)

28.

Fair

valu

e of

fina

ncia

l ins

trum

ents

(con

tinue

d) b.

Acc

ount

ing

clas

sifica

tions

(con

tinue

d)Th

e ta

ble

belo

w sh

ows t

he c

arry

ing

amou

nts a

nd fa

ir va

lues

of fi

nanc

ial a

sset

s and

fina

ncia

l liab

ilitie

s, in

clud

ing

thei

r lev

els i

n th

e fa

ir va

lue

hier

arch

y. It

doe

s not

incl

ude

fair

valu

e in

form

atio

n fo

r cas

h an

d c

ash

equi

vale

nts,

rece

ivab

les a

nd p

ayab

les,

who

se c

arry

ing

amou

nts a

re a

reas

onab

le a

ppro

ximat

ion

of fa

ir va

lue,

or f

or le

ase

liabi

litie

s. Th

e ta

bles

bel

ow in

clud

e bo

th in

stru

men

ts m

easu

red

at

fairv

alue

and

thos

e th

at a

re n

ot.

30 J

une

2018

Car

ryin

g am

ount

sET

BFa

ir va

lue

Fair

valu

eA

mor

tised

cos

tFV

– O

CI

FVTP

LTo

tal c

arry

ing

amou

nts

Leve

l 1Le

vel 2

Leve

l 3

ETB

ETB

ETB

ETB

ETB

ETB

ETB

ETB

Fina

ncia

l Ins

trum

ents

mea

sure

d at

fair

valu

eFi

nanc

ial a

sset

sIn

vest

men

t sec

uriti

es-1

1,73

6,27

7,07

0-

11,7

36,2

77,0

70-

11,7

36,2

77,0

70-

11,7

36,2

77,0

70Fi

nanc

ial I

nstru

men

ts n

ot m

easu

red

at fa

ir va

lue

Fina

ncia

l Ass

ets:

Due

from

Gov

ernm

ent o

f Eth

iopi

a15

7,75

4,00

3,18

3 -

-15

7,75

4,00

3,18

3 -

-15

7,75

4,00

3,18

3 15

7,75

4,00

3,18

3 Lo

ans t

o go

vern

men

t Ban

ks87

,720

,265

,023

-

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,720

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-

-87

,720

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87

,720

,265

,023

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ans t

o pr

ivat

e co

mm

erci

al b

anks

--

- -

--

--

Due

from

fore

ign

inst

itutio

ns -

com

mer

cial

Ban

ks14

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-

-14

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-

-14

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14

,369

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D

ue fr

om fo

reig

n in

stitu

tions

- ce

ntra

l Ban

ks60

,893

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,700

-

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,893

,267

,700

-

- 6

0,89

3,26

7,70

0 6

0,89

3,26

7,70

0 Fu

nds h

eld

with

IMF

42,8

10,1

17

--

42,8

10,1

17

--

42,

810,

117

42,

810,

117

Oth

er a

sset

s - L

oans

to e

mpl

oyee

s12

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--

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ther

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ets -

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ff ad

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--

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2 -

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3

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To

tal fi

nanc

ial a

sset

s32

0,79

5,10

5,55

811

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-33

2,53

1,38

2,62

8-

11,7

36,2

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7032

0,79

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5,55

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2,53

1,38

2,62

8Lia

bilit

ies

Dep

osits

from

loca

l fina

ncia

l inst

itutio

ns, g

over

mne

nt a

nd

giov

ernm

ent e

ntiti

es17

4,57

0,67

8,10

8 -

-17

4,57

0,67

8,10

8 -

-17

4,57

0,67

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8 17

4,57

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8

Fund

s due

to in

tern

atio

nal fi

nanc

ing

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itutio

ns19

,011

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-

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-19

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19

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D

ue to

oth

er in

stitu

tions

20,7

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78

--

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55,6

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78

--

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48,4

78

20,7

55,6

48,4

78

Due

to th

e M

inist

ry o

f Fin

ance

8,18

5,86

0,50

5 -

-8,

185,

860,

505

--

8,18

5,86

0,50

5 8,

185,

860,

505

Tota

l fina

ncia

l lia

bilit

ies

222,

523,

718,

982

--

222,

523,

718,

982

--

222,

523,

718,

982

222

,523

,718

,982

201


OTE

S TO

FIN

AN

CIA

L ST

ATE

MEN

TSFO

R TH

E YE

AR

ENDE

D 30

JUN

E 20

18(in

Eth

iopi

an B

irr)

28. F

air v

alue

of fi

nanc

ial i

nstru

men

ts (c

ontin

ued)

b. A

ccou

ntin

g cl

assifi

catio

ns (c

ontin

ued)

30 J

une

2017

Car

ryin

g am

ount

sFa

ir va

lue

Fair

valu

eA

mor

tised

cos

tFV

– O

CI

FVTP

LTo

tal c

arry

ing

amou

nts

Leve

l 1Le

vel 2

Leve

l 3

ETB

ETB

ETB

ETB

ETB

ETB

ETB

ETB

Fina

ncia

l Ins

trum

ents

mea

sure

d at

fair

valu

eFi

nanc

ial a

sset

sIn

vest

men

t sec

uriti

es-

9,39

4,63

3,65

2-

9,39

4,63

3,65

2-

9,39

4,63

3,65

2-

9,39

4,63

3,65

2

Fina

ncia

l Ins

trum

ents

not

mea

sure

d at

fair

valu

eFi

nanc

ial A

sset

s:-

-

Due

from

Gov

ernm

ent o

f Eth

iopi

a13

3,55

8,10

5,35

2 -

- 1

33,5

58,1

05,3

52

--

133,

558,

105,

352

133,

558,

105,

352

Loan

s to

gove

rnm

ent B

anks

66,

852,

739,

434

--

66,

852,

739,

434

--

66,8

52,7

39,4

34

66,8

52,7

39,4

34

Loan

s to

priv

ate

com

mer

cial

ban

ks 4

99,2

22,0

21

--

499,

222,

021

--

499,

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021

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222,

021

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from

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ign

inst

itutio

ns -

com

mer

cial

Ban

ks12

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-

-12

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-

-12

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12

,026

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Due

from

fore

ign

inst

itutio

ns -

cent

ral B

anks

58,

862,

864,

221

--

58,8

62,8

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21

--

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62,8

64,2

21

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62,8

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21

Fund

s hel

d w

ith IM

F 3

92,1

64,5

55

--

392

,164

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-

-39

2,16

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5 39

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5

Oth

er a

sset

s - L

oans

to e

mpl

oyee

s 9

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-9,

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1,92

2

Oth

er a

sset

s - S

taff

adva

nces

3,7

32,3

52

--

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2 -

-3,

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2

Tota

l fina

ncia

l ass

ets

272,

204,

921,

981

9,39

4,63

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2-

281,

599,

555,

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-9,

394,

633,

652

272,

204,

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981

281,

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555,

633

Liabi

litie

s

Dep

osits

from

loca

l fina

ncia

l inst

itutio

ns, g

over

mne

nt a

nd

giov

ernm

ent e

ntiti

es14

2,82

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-14

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50 1

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Fund

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itutio

ns 1

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0

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to o

ther

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itutio

ns 2

3,41

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- 2

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- 2

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7,56

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3,41

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3

Due

to th

e M

inist

ry o

f Fin

ance

6,4

07,4

83,1

15

--

6,4

07,4

83,1

15

--

6,4

07,4

83,1

15

6,4

07,4

83,1

15

Tota

l fina

ncia

l lia

bilit

ies

189

,317

,888

,848

-

- 1

89,3

17,8

88,8

48

--

189,

317,

888,

848

189,

317,

888,

848



OTE

S TO

FIN

AN

CIA

L ST

ATE

MEN

TSFO

R TH

E YE

AR

ENDE

D 30

JUN

E 20

18(in

Eth

iopi

an B

irr)

28.

Fair

valu

e of

fina

ncia

l ins

trum

ents

(con

tinue

d)

b. A

ccou

ntin

g cl

assifi

catio

ns (c

ontin

ued)

30 J

une

2016

Car

ryin

g am

ount

sFa

ir va

lue

Fair

valu

eAm

ortis

ed c

ost

FV –

OC

IFV

TPL

Tota

l car

ryin

g am

ount

sLe

vel 1

Leve

l 2Le

vel 3

ETB

ETB

ETB

ETB

ETB

ETB

ETB

Fina

ncia

l Ins

trum

ents

mea

sure

d at

fair

valu

eFi

nanc

ial a

sset

sIn

vest

men

t sec

uriti

es-

9,11

6,36

5,46

5-

9,11

6,36

5,46

5-

9,11

6,36

5,46

5-

9,11

6,36

5,46

5

Fina

ncia

l Ins

trum

ents

not

mea

sure

d at

fair

valu

eFi

nanc

ial A

sset

s:D

ue fr

om G

over

nmen

t of E

thio

pia

106,

756,

386,

236

--

106,

756,

386,

236

--

106,

756,

386,

236

106,

756,

386,

236

Loan

s to

gove

rnm

ent B

anks

44,0

48,8

16,3

93

--

44,

048,

816,

393

--

44,0

48,8

16,3

93

44,0

48,8

16,3

93

Loan

s to

priv

ate

com

mer

cial

ban

ks-

--

--

--

Due

from

fore

ign

inst

itutio

ns -

com

mer

cial

ban

ks10

,872

,152

,760

-

-10

,872

,152

,760

-

-10

,872

,152

,760

10

,872

,152

,760

D

ue fr

om fo

reig

n in

stitu

tions

- ce

ntra

l Ban

ks58

,447

,087

,755

-

-58

,447

,087

,755

-

-58

,447

,087

,755

58

,447

,087

,755

Fu

nds h

eld

with

IMF

1,52

2,23

3,93

5 -

- 1

,522

,233

,935

-

-1,

522,

233,

935

1,52

2,23

3,93

5 O

ther

ass

ets -

Loa

ns to

em

ploy

ees

7,49

9,40

7 -

- 7

,499

,407

-

-7,

499,

407

7,49

9,40

7 O

ther

ass

ets -

Sta

ff ad

vanc

es1,

739,

335

--

1,7

39,3

35

--

1,73

9,33

5 1,

739,

335

Tota

l fina

ncia

l ass

ets

221,

655,

915,

821

9,11

6,36

5,46

523

0,77

2,28

1,28

6 -

9,11

6,36

5,46

522

1,65

5,91

5,82

1 23

0,77

2,28

1,28

6 Lia

bilit

ies

Dep

osits

from

loca

l fina

ncia

l inst

itutio

ns, g

over

mne

nt a

nd

giov

ernm

ent e

ntiti

es12

8,93

0,05

5,39

4 -

-12

8,93

0,05

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4 -

-12

8,93

0,05

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4 12

8,93

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5,39

4

Fund

s due

to in

tern

atio

nal fi

nanc

ing

inst

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ns17

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-

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-

-17

,163

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17

,163

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D

ue to

oth

er in

stitu

tions

22,0

11,8

48,0

42

--

22,0

11,8

48,0

42

--

22,0

11,8

48,0

42

22,0

11,8

48,0

42

Due

to th

e M

inist

ry o

f Fin

ance

5,31

8,05

7,03

7 -

-5,

318,

057,

037

--

5,31

8,05

7,03

7 5,

318,

057,

037

Tota

l fina

ncia

l lia

bilit

ies

173,

423,

749,

768

--

173,

423,

749,

768

--

173,

423,

749,

768

173,

423,

749,

768

203


(in Ethiopian Birr)

29. Commitments

The Bank has entered into certain contracts which are irrevocable in nature. Even though these obligations may not be recognized on the statement of financial position, they have fixed obligation settlement dates. As such, the effect of these commitments will be captured when the obligation to settle the same occurs. Part of the commitments that the Bank entered include some construction work relating to maintenance of ex-CBB building and additional site works project. Work on these projects started during the financial year ended 30 June 2018 with expected completion for the same being 2020. The unpaid portion for this construction in progress is an amount ETB 32,080,878.21.

30. Events after the reporting period

During the beginning of December 2019, there was an outbreak of the COVID-19 virus infection in China. The outbreak quickly escalated to global levels in March 2020 with a pandemic state being confirmed of the outbreak. The outbreak has led to a significant impact on global markets. The impact has also affected the Ethiopian market. We are yet to quantify the exact level of impact that COVID-19 is likely to have on NBE financials. We will however get a clear position on the impact as the situation returns to normal operating conditions.

NBE has successfully redeemed all NBE bills maturing during the period between 1 April 2020 to 30 June 2021 and paid the principal plus interest thereon to the respective banks. The cumulative total of the payments amounts to ETB 15,189,608,907.68.

The IMF also extended two loan facilities to the NBE during the period after the reporting date. The amounts for the two loans borrowed were US dollars 124,280,506.66 on 26 December 2019 and US dollars 184,443,990.53 on January 3, 2020.



(in Ethiopian Birr)

31. Explanation of transition to IFRS

As discussed in note 2, these are the Bank’s first financial statements prepared in accordance with IFRS as issued by the IASB.

The accounting policies set out in note 3 have been applied in preparing the financial statements for the period ended 30 June 2018, the comparative information presented in these financial statements for the year ended 30 June 2017 and in the preparation of an opening separate IFRS statement of financial position as of 1 July 2016 (the Bank´s date of transition).

IFRS 1, First-time adoption of International Financial Reporting Standards, currently in force, establishes certain exceptions and exemptions for first-time adopters regarding the general requirement of retrospectively applying IFRS at the date of transition. The Bank applied the mandatory exceptions with respect to the determination of estimates at the date of transition and the prospective application of cancellation of financial assets and liabilities. The following mandatory exceptions and optional exemptions were applied by the Bank:

Mandatory exceptions:

(a) Estimates made under previous GAAP: Estimates in the opening statement of financial positions were consistent with estimates made under previous GAAP; therefore, estimates are not updated for information received at a later date. If changes in estimates are appropriated, then they were accounted for prospectively. In the specific case of impairment losses on financial instruments, the Bank adjusted its General reserves based on the expected credit loss model. The Bank also recognized fair value adjustments arising from fair valuation of its investment securities held at other comprehensive income.

Optional exemptions:

(a) Fair value or revaluation as deemed cost: This exemption permits the carrying amount of an item of property, plant and equipment to be measured at the date of transition based on a deemed cost. This exemption is not limited to a particular asset or liability and establishes a deemed cost at transition to IFRS in accordance with previous GAAP. The Bank elected the fair value optional exemption and revaluation adjustment was done on the following classes of property and equipment: Buildings and Motor vehicles.

(b) Arrangements containing a lease: The Bank has applied the transitional provision in IFRIC 4 determining whether an arrangement contains a lease and has assessed all arrangements based upon the conditions in place as at 1 July, 2016 the date of transition.

(c) Fair value measurement of financial asset and financial liabilities: The Bank has applied the exemption requirements of recognizing a ‘Day 1’ gain or loss provision prospectively. These will be recognised prospectively from date of transition, 1 July 2016.

205


(in Ethiopian Birr)

31. Explanation of transition to IFRS (continued)

(d) Leases: The Bank opted to apply the following exemptions for leases:- Option to use a single discount rate to a portfolio of leases with similar characteristics- Option to not apply IFRS 16 recognition requirements on short-term leases – that is, leases for which the lease term as determined under the new standard is 12 months or less.- Option to exclude initial direct costs from the initial measurement of ROU.- Option to measure the lease liability at the present value of the remaining lease payments

discounted using the incremental borrowing rate at transition date.- Option to measure ROU at an amount equal to the lease liability adjusted for prepaid or

accrued lease payments relating to that lease recognized in the statement of financial position immediately before the date of transition.

In preparing its opening IFRS statement of financial position, the Bank has adjusted amounts reported previously in financial statements prepared in accordance with local GAAP (previous GAAP). For all periods subsequent to 1 July 2016, the Bank has used IFRS guidelines to prepare these financial statements.

An explanation of how the transition from previous GAAP to IFRSs has affected the Bank’s financial position, financial performance and cash flows is set out in the following tables and the notes that accompany the tables.



(in Ethiopian Birr)


(a) Reconciliation of statement of financial position as at 1 July 2016

NotePrevious GAAP

Effect of transition to IFRS 1 July 2016

AssetsEthiopian Government obligations c, e 109,080,395,000 (109,080,395,000) -Balances due from foreign entities – commercial Banks c,f

-10,259,051,202 10,259,051,202

Balances due from foreign entities – Central Banks c,g

- 59,060,174,943 59,060,174,943

Cash - foreign currencies c,h 72,553,935,837 (71,082,715,839) 1,471,219,998Funds held with IMF c,i - 1,522,233,935 1,522,233,935Gold commodity 1,113,920,333 - 1,113,920,333Monetary gold J 229,822,214 229,822,214Loans C 25,607,000,000 (25,607,000,000) -Loans to government Banks c,k - 44,048,816,393 44,048,816,393Loans to private commercial banks c,l

--

-Investment securities c,m - 9,116,365,465 9,116,365,465Foreign currency investments c ,m 9,180,390,181 (9,180,390,181) -Property and equipment o 483,229,931 1,076,132,386 1,559,362,317Other assets c,s 44,277,436,830 (20,353,864,104) 23,923,572,726Intangible asset p - 43,247,709 43,247,709Due from Government of Ethiopia e

-106,756,386,236

106,756,386,236Right of use asset r - 2,759,826 2,759,826Total assets 262,296,308,112 (3,189,374,815) 259,106,933,297

207


(in Ethiopian Birr)


(a) Reconciliation of statement of financial position as at 1 July 2016 (continued)

Note Previous GAAP Effect of transition to IFRS 1 July 2016

LiabilitiesCurrency in circulation 82,592,706,383 - 82,592,706,383Due to local financial institutions and government z - 128,930,055,394 128,930,055,394

Domestic currency deposits aa 51,696,978,457 (51,696,978,457) -Funds due to international financing institutions bb - 17,162,567,832 17,162,567,832

Due to other institutions y - 22,011,848,042 22,011,848,042Foreign currency deposits x 72,733,928,838 (72,733,928,838) -Due to the Ministry of Finance 5,318,057,037 - 5,318,057,037Deferred revenue w - 202,894 202,894Lease liability R - 2,739,241 2,739,241Provisions N 62,161,469 (53,963,494) 8,197,975Employee benefits U - 141,193,620 141,193,620Other liabilities V 45,043,277,274 (43,925,157,543) 1,118,119,731Total liabilities 257,447,109,458 (161,421,309) 257,285,688,149

Note Previous GAAP Effect of transitionto IFRS July 2016 1

EquityCapital 500,000,000 - 500,000,000General reserve 500,000,000 - 500,000,000Fair value reserve cc - (3,305,830,788) (3,305,830,788)Remeasurement of definedbenefit liability - - -

International reserve valuation 3,849,198,654 - 3,849,198,654Other reserve dd - 277,877,282 277,877,282Total equity 4,849,198,654 (3,027,953,506) 1,821,245,148Total liability and equity 262,296,308,112 (3,189,374,815) 259,106,933,297



(in Ethiopian Birr)

31. Explanation of transition to IFRS - continued

(a) Reconciliation of statement of financial position as at 30 June 2017

Note Previous GAAP Effect of transition to IFRS 30 June 2017

AssetsEthiopian Government obligations c, e 135,632,845,000 (135,632,845,000) -Balances due from foreign entities – commercial banks c,f - 12,026,437,870 12,026,437,870

Balances due from foreign entities – Central banks c,g - 58,862,864,221 58,862,864,221

Cash - foreign currencies c,h 72,618,510,793 (71,523,769,543) 1,094,741,250Funds held with IMF c,i - 392,164,555 392,164,555Gold commodity 741,333,068 - 741,333,068Monetary gold j - 230,130,835 230,130,835Loans c 54,724,116,612 (54,724,116,612) -Loans to government banks c,k - 66,852,739,434 66,852,739,434Loans to private commercial banks c,l - 499,222,021 499,222,021Foreign currency investments c,m 9,449,214,085 (9,449,214,085) -Investment securities c,m - 9,394,633,652 9,394,633,652Property and equipment o 471,342,715 1,024,322,295 1,495,665,010Other assets c,s 16,298,799,467 (14,623,780,677) 1,675,018,790Intangible asset p - 28,769,521 28,769,521Due from Government of Ethiopia e - 133,558,105,352 133,558,105,352Right of use asset r - 2,606,502 2,606,502Total assets 289,936,161,740 (3,081,729,659) 286,854,432,081

Note Previous GAAP

Effect of transition to IFRS 30 June 2017

Liabilities -

Currency in circulation 94,245,514,534 - 94,245,514,534Due to local financial institutions and government Z - 142,862,328,450 142,862,328,450

Domestic currency deposits Aa 67,093,253,826 (67,093,253,826) -Funds due to international financing institutions Bb - 16,665,286,857 16,665,286,857

Due to other institutions Y - 23,417,568,963 23,417,568,963Foreign currency deposits x 59,339,097,534 (59,339,097,534) -Due to the Ministry of Finance 6,407,483,115 - 6,407,483,115Deferred revenue W - - -Lease liability R - 2,649,886 2,649,886

Provisions N 62,161,469 (52,947,781) 9,213,688

Employee benefits U - 163,866,323 163,866,323

Other liabilities V 57,939,452,608 (56,921,457,465) 1,017,995,143Total liabilities 285,086,963,086 (295,056,127) 284,791,906,959

209


(in Ethiopian Birr)


(a) Reconciliation of statement of financial position as at 30 June 2017 (continued)

Note Previous GAAP

Effect of transition to IFRS 30 June 2017

EquityCapital 500,000,000 - 500,000,000General reserve 500,000,000 - 500,000,000Fair value reserve cc - (3,742,418,046) (3,742,418,046)Remeasurement of defined benefitLiability - (5,483,916) (5,483,916)

International reserve valuation 3,849,198,654 - 3,849,198,654Other reserve dd - 961,228,430 961,228,430Total equity 4,849,198,654 (2,786,673,532) 2,062,525,122Total liability and equity 289,936,161,740 (3,081,729,659) 286,854,432,081

(b) Reconciliation of statement of profit or loss and other comprehensive income for the year ended 30 June 2017

Note Previous GAAP Effect of transi-tion to IFRSs IFRS Balances

Interest income ee 5,689,877,560 735,011,491 6,424,889,051Exchange commission 2,297,667,780 (2,297,667,780) -Interest expense (2,803,316,797) - (2,803,316,797)Net interest income 5,184,228,543 (1,562,656,289) 3,621,572,254Revenue from sale of gold ff 79,372,955 3,056,830,683 3,136,203,638Fee and commission income 521,744,481 2,297,667,780 2,819,412,261Other income gg 1,550,648,550 733,016 1,551,381,566Net non interest and other income 2,151,765,986 5,355,231,479 7,506,997,465

Net operating income 7,335,994,529 3,792,575,190 11,128,569,719

General and administrative costs jj (107,832,494) (83,958,025) (191,790,519)Currency costs (714,166,298) - (714,166,298)Gold purchase and other costs ii - (3,068,029,900) (3,068,029,900)Salaries and related benefits u (106,512,622) (18,204,500) (124,717,122)Impairment losses on financial instruments q - 60,968,383 60,968,383Operating expenses (928,511,414) (3,109,224,042) (4,037,735,456)Operating surplus before unrealised gains / (losses) 6,407,483,115 683,351,148 7,090,834,263Other comprehensive income:Items that will never be reclassified to profit or loss:Remeasurement of defined benefit liability u - (5,483,916) (5,483,916)Fair value gains/ (losses) on monetary gold j - (1,544) (1,544)Fair value gains/ (losses) on financial assets hh - (436,585,714) (436,585,714)

Other comprehensive income for the year - (442,071,174) (442,071,174)Total comprehensive income/(loss) for the year 6,407,483,115 241,279,974 6,648,763,089



NOTES TO FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2018

(in Ethiopian Birr)


(c) Reclassifications on the financial statements

In accordance with IAS 1 Presentation of Financial Statements an entity should present separately certain items in the statement of financial position. At the date of transition to IFRS, the Bank reclassified the line items following described to present them separately in its statement of financial position:

● Investment securities – The Bank reclassified balances relating to Foreign currency investments and Cash - foreign currencies to this line item. In accordance with IFRS 7 and 9, these items qualify as financial instruments hence the need to cluster them within same reporting category.

● Balances due to/)from( IMF – The Bank created this separate line item in order to reclassify balances specific to IMF and disclose the same independently due to the significance of IMF as a transacting party.

● Balance due from banking institutions – The Bank isolated the balances that arise from banking institutions and disclosed these separately in accordance with IFRS 7 and 9.

(d) Derecognition of financial instruments

At transition date, the Bank assessed the characteristics of the following financial instruments as disclosed under previous GAAP and made a decision to derecognize them. NBE shall not recognize these instruments in accordance with IFRSs unless they qualify for recognition based on the possibility of realizing the same at a later date:

Statement of financial position30 June 2017 1 July 2016

Investment securities previously paid by NBE on behalf of government / MOF (110,788,407) (104,518,552)

Write off of BCCI deposits (9,205,662) (8,733,842)Write off of USSR account deposits (13,447) (13,144)Adjustment to financial instruments (120,007,516) (113,265,538)

211


NOTES TO FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2018

(in Ethiopian Birr)


(e) Due from Government of Ethiopia

At transition date, the Bank reclassified the financial assets denoted as Ethiopian Government Obligations to a new disclosure line denoted as Due from Government of Ethiopia. There was also a reclassification of accrued income from Other assets to Due from Government of Ethiopia. Further to the reclassification, there was also a need to further assess the nature of these instruments and carry out the necessary impairments and fair value adjustments on these instruments. The summary below shows a summary of the adjustments made for this disclosure item to comply with IFRS:


Previous GAAP: Due from Government of Ethiopia - -Reclassification adjustments:Reclassification from Ethiopia Government obligations to Due from Government of Ethiopia 135,632,845,000 109,080,395,000Reclassification of Accrued income to Due from Government of Ethiopia 2,253,149 2,284,821IFRS adjusting entries:Recognise impairment on loans due from Government of Ethio-pia (227,435,419) (289,574,285)Recognising fair value adjustment on year 1 valuation of non-in-terest government bond (2,036,719,300) (2,036,719,300)

Recognition of notional interest on non-interest bond 187,161,922 -

IFRS balance: Due from Government of Ethiopia 133,558,105,352 106,756,386,236

Statement of profit or loss and other comprehensive income30 June 2017

Impairment losses on financial instruments: Recognise im-pairment on loans due from Government of Ethiopia )Refer to note 31 )q( (62,138,866)Adjustment to Impairment losses on financial instruments (62,138,866)

Interest income: Recognise notional income on non-interest government bond )Refer to note 31 )ee( 187,161,922Adjustment to Interest Income 187,161,922



(in Ethiopian Birr)


(f) Balances due from foreign entities – commercial banks

At transition date, the Bank unbundled previous GAAP balances to separately disclose and present financial assets in distinct manner. One of the financial assets identified and treated separately was the balances due from foreign entities – commercial banks which was unbundled from foreign exchange holdings. The summary below shows a summary of the adjustments made for this disclosure item to comply with IFRS:


Previous GAAP: Balances due from foreign entities – commercial banks

- -

Reclassification adjustment:Reclassification to Balances due from foreign entities – commer-cial banks

12,037,459,191 10,269,335,550

IFRS adjusting entries:Recognise impairment on cash due from foreign commercial banks

(1,802,212) (1,537,362)

Write off deposits held with BCCI (9,205,662) (8,733,842)Write off deposits held with USSR (13,447) (13,144)IFRS: Balances due from foreign entities – commercial banks 12,026,437,870 10,259,051,202


Impairment adjustment: Recognise impairment on loans due from commercial banks )Refer to Note 31 )q(( 264,850

Adjustment to Impairment provision 264,850

General and administrative expenses: Write off of BCCI bank de-posit 471,820General and administrative expenses: Write off of USSR bank de-posit 303Adjustment to General and administrative expenses )Refer to Note 31 )jj(( 472,123

213


(in Ethiopian Birr)


(g) Balances due from foreign entities – central banks

At transition date, the Bank unbundled previous GAAP balances to separately disclose and present financial assets in distinct manner. One of the financial assets identified and treated separately was the balances due from foreign entities – central banks which was unbundled from foreign exchange holdings. The summary below shows a summary of the adjustments made for this disclosure item to comply with IFRS:


Previous GAAP: Balances due from foreign entities – Cen-tral banks - -

Reclassification adjustment:Reclassification from Foreign exchange holdings 58,862,864,221 59,060,174,943

IFRS: Balances due from foreign entities – Central banks 58,862,864,221 59,060,174,943

(h) Cash – foreign currencies

At transition date, the Bank unbundled previous GAAP balance within Foreign exchange holdings to separately disclose and present financial assets in distinct manner. One of the financial assets identified and treated separately was the Cash – foreign currencies which was unbundled from foreign exchange holdings. The summary below shows a summary of the reclassifications made for this disclosure item to comply with IFRS:


Previous GAAP: Cash – foreign currencies 72,618,510,793 72,553,935,837

Reclassification adjustment:Reclassify balances relating to Due from foreign entities – commercial banks (12,037,459,191) (10,269,335,550)

Reclassify balances relating to Funds held with IMF (392,164,555) (1,522,233,935)

Reclassify balances due from foreign entities – Central banks (58,862,864,221) (59,060,174,943)

Reclassify balances relating to Monetary gold (231,281,576) (230,971,411)

IFRS: Cash – foreign currencies 1,094,741,250 1,471,219,998



(in Ethiopian Birr)


(i) Funds held with IMF

At transition date, the Bank unbundled previous GAAP balances to separately disclose and present financial assets in distinct manner. One of the financial assets identified and treated separately was the funds held with IMF which was unbundled from foreign exchange holdings. The summary below shows a summary of the adjustments made for this disclosure item to comply with IFRS:


Previous GAAP: Funds held with IMF - -Reclassification adjustment:Reclassification from Funds held with IMF 392,164,555 1,522,233,935IFRS: Funds held with IMF 392,164,555 1,522,233,935

(j) Monetary gold

At transition date, the Bank unbundled previous GAAP balances to separately disclose and present financial assets in distinct manner. One of the financial assets identified and treated separately was Monetary gold which was unbundled from foreign exchange holdings. The summary below shows a summary of the adjustments made for this disclosure item to comply with IFRS:


Previous GAAP: Monetary gold - -

Reclassification adjustment:Reclassification from Foreign exchange holdings (231,281,576) (230,971,411)

IFRS adjusting entries:Recognise fair value adjustment on Monetary gold 1,150,741 1,149,197IFRS: Monetary gold (230,130,835) (229,822,214)


Previous GAAP: Fair value gains/(losses) on Monetary gold -IFRS adjusting entries:Fair value gains/(losses) on Monetary gold (1,544)IFRS: Fair value gains/(losses) on Monetary gold (1,544)

215


(in Ethiopian Birr)


(k) Loans to government banks

At transition date, the Bank made a decision to aggregate and disclose loans by their nature. In view of this decision, the Bank reclassified all loans to government banks to a separate disclosure line. The summary below shows a summary of the adjustments made for this disclosure item to comply with IFRS:


Previous GAAP: Loans to government banks - -Reclassification adjustments:Reclassification from Loans to Loans to government banks 54,226,000,000 25,607,000,000Reclassification of accrued income from other assets to Loans to government banks 679,664,358 300,857,662Reclassification of certificates of deposit from other assets to Loans to government banks 13,281,189,200 19,570,108,440IFRS adjusting entries:Impairment on loans to Government banks (121,207,714) (120,693,582)Fair value adjustment on non-interest bearing CBE certifi-cate of deposit (1,760,755,979) (1,308,456,127)Notional income on non-interest bearing certificate of de-posit 547,849,569 -IFRS: Loans to government banks 66,852,739,434 44,048,816,393 Statement of profit or loss and other comprehensive income

June 2017 30 Impairment adjustment: Recognise impairment on loans due from))Government banks )Refer to note 31 )q

514,132

Adjustment to Impairment provision 514,132

Interest income: Recognise notional income on non interest bear-))ing )Refer to note 31 )ee 547,849,569Adjustment to Interest income 547,849,569

))Fair value gains/(losses) on financial assets )Refer to note 31 )hh 452,299,852Adjustment to fair value gains / (losses) on financial asset 452,299,852



(in Ethiopian Birr)


(l) Loans to private commercial banks

At transition date, the Bank made a decision to aggregate and disclose loans by their nature. In view of this decision, the Bank reclassified all loans to private commercial banks to a separate disclosure line. The summary below shows a summary of the adjustments made for this disclosure item to comply with IFRS:


Previous GAAP: Loans to private commercial banks - -

Reclassification adjustments:Reclassification to Balances due from foreign entities – central banks 498,116,612 -

Reclassification of accrued interest to Loans to private banks 1,105,409 -

IFRS: Loans to private commercial banks 499,222,021 -

(m) Investment securities

Under previous GAAP, the Bank accounted for principle balance on financial assets and interest receivable on the same separately. Interest receivable on these instruments was recorded under receivables. Under IFRS, they have been reclassified and accounted for as Investment securities. Interest receivable has been reclassified from receivables and presented together with the asset which generates it under investment securities. The impact from such change is summarized as follows:


Previous GAAP: Investment securities - -

Reclassification adjustments: - -Foreign currency investments to Investment securities 9,449,214,085 9,180,390,181IFRS adjusting entries:Fair value adjustment of Investment securities 56,207,974 40,493,836Derecognise investments paid for by NBE but held by MOF (110,788,407) (104,518,552)

IFRS: Investment securities 9,394,633,652 9,116,365,465

217


(in Ethiopian Birr)


(n) Provisions

Under previous GAAP, the Bank carried out cash accounting for items that may have required a provision. This accounting practice contrasts with the measurement required by IAS 37 Provisions, Contingent Liabilities and Contingent Assets, which requires an entity to recognize provisions when: (a) an entity has a present obligation (legal or constructive) as a result of a past event; (b) it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and (c) a reliable estimate can be made of the amount of the obligation. If these conditions are not met, no provision shall be recognized.

The impact from such change is summarized as follows:


Previous GAAP: Provisions 62,161,469 62,161,469

IFRS adjusting entries: - -

Previous GAAP provisions on DBE (1,000,100) (1,000,100)

Previous GAAP provisions on fake gold account (61,161,369) (61,161,369)

IFRS provision for bonus 9,213,688 8,197,975

IFRS provision for legal cases - -

IFRS: Reversal on provisions on DBE - -

IFRS: Reversal on fake gold account - -

IFRS: Provisions 9,213,688 8,197,975 Statement of profit or loss and other comprehensive income

30 June 2017

Previous GAAP: staff costs (bonus) -

IFRS provisions: staff costs (bonus) )Refer to note 31)u( 9,213,688

Adjustment to General and administrative expenses 9,213,688



(in Ethiopian Birr)


(o) Property and equipment

At the transition date to IFRS, the Bank chose to apply the option of using the fair value of its buildings and motor vehicles as the deemed cost, through an assessment of such properties, conducted by an independent expert appraiser.

For all the other types of assets, the Bank decided to use the values under previous GAAP as the deemed cost at transition. The Bank also reassessed the useful lives of all its PPE classes and applied salvage values in calculation of depreciation. The Bank recognized a reduction in depreciation expense over the different classes due to calculations involving salvage values that were not taken into account earlier while reporting under local GAAP. This resulted in the value of PPE reported under IFRS going up by ETB 66,946,572 as a result of restating the depreciation by the same amount.



Previous GAAP:Property and equipment 471,342,715 483,229,931

Reclassification adjustments: - -

Reclassify PPE items held in other assets 2,126,078 2,126,078

IFRS adjusting entries:

Recognise capitalized Capital WIP held in PPE (26,746,044) (26,746,044)

Reverse previous GAAP costs and accumulated depreciation (332,885,665) (281,075,574)

Fair value adjustments on IFRS transition 1,383,954,004 1,383,954,004

Derecognise Other assets’ items held in PPE (2,126,078) (2,126,078)

IFRS: Property and equipment 1,495,665,010 1,559,362,317 Statement of profit or loss and other comprehensive income

30 June 2017Previous GAAP: depreciation charge 41,326,895IFRS depreciation adjustment 67,012,680IFRS: Property and equipment depreciation charge 108,339,575

219


(in Ethiopian Birr)


(p) Intangible assets

Under the previous GAAP, the Bank recognized intangible assets as part of fixed assets under property and equipment.

Under IFRS, the intangible assets and their corresponding amortization were reclassified to a separate account – intangible assets as per provisions of IAS 38.

The impact of this change is as summarized below:


Previous GAAP: Intangible assets - -

Reclassification of intangible assets from PPE 81,793,144 81,793,144

Reclassification of accumulated amortization (53,023,623) (38,545,435)

IFRS: Intangible assets 28,769,521 43,247,709

(q) Impairment losses on financial instruments

Under the previous GAAP, the Bank did not recognize impairment losses on its financial assets.

Under IFRS, the Bank has adopted an expected credit loss model in line with IFRS 9 requirements. Under this approach, the Bank is required to recognize an impairment loss before a loss occurs



Previous GAAP: Impairment losses on financial instruments -

IFRS adjusting entries:Impairment loss on loans due from Government of Ethiopia 62,138,866Impairment loss on loans due from Government banks (514,132)Impairment loss on loans due from foreign entities – commercial banks (264,850)Impairment loss on staff loans (361,727)Impairment loss on staff advances (29,774)IFRS: Impairment losses on financial instruments 60,968,383



(in Ethiopian Birr)


(r) Leases

Under the previous GAAP, the rent agreements on buildings were classified as operating leases and any rent payments were recognized in the income statement on a straight-line basis.

At the transition date to IFRS, the Bank early adopted IFRS 16. The Bank elected to define low value lease items as well as leases with a lease term of less than 12 months. As a result, the Bank elects to recognize a right of use asset and a lease liability for a lease with a lease period of more than one year and of a value higher than ETB 135,000.

The effect was to introduce a right of use asset and lease liability in the statement of financial position, recognize depreciation on the right of use asset and interest on the lease liability in the statement of profit or loss and other comprehensive income and reverse rent payments previously recognised in the income statements.

The impact from this change is as follows:


Previous GAAP Right of use asset - -Previous GAAP lease liability - -

IFRS adjusting entries:IFRS Right of use asset 2,606,502 2,759,826IFRS lease liability 2,649,886 2,739,241IFRS: Right of use asset 2,606,052 2,759,826IFRS: Lease liability 2,649,886 2,739,241

221


(in Ethiopian Birr)


(s) Other assets

Under IFRS, a number of adjustments and write-offs have been made to the other assets as part of the IFRS transition adjustments.



Previous GAAP Other assets 16,298,799,467 44,277,436,830

Reclassification adjustments:

Derecognize government securities held as statutory deposits from the balance disclosed as off-balance sheet (451,067,450) (301,747,975)

Reclassify PPE items held in other assets to PPE (2,126,078) (2,126,078)Reclassify accrued income from other assets to due from Government of Ethiopia (2,253,149) (2,284,821)Reclassify accrued income from other assets to Loans to government banks (679,664,358) (300,857,662)Reclassify certificate of deposits from other assets to Loans to government banks (13,281,189,200) (19,570,108,440)Reclassify accrued interest from other assets to loans to private commer-cial banks (1,105,409) -

:IFRS adjusting entries

Write off long outstanding receivables from government that is irrecover-able (24,722,661) (24,722,661)Write off outstanding sundry debtors (10,560,581) (10,560,581)Write off outstanding uncleared effects (3,540,790) (3,440,206)Write off outstanding currency position (277,894) (277,894)Write off long outstanding claims on defective notes (1,800) (1,800)Write off long outstanding debts (95,537,414) (95,537,414)Unrecoverable amount from DBE (1,000,100) (1,000,100)Write off unreconciled suspense (5,062,479) (5,546,229)Non-performing staff loans (56,100) 8,849Amortisation of staff loans fair value loss (1,632,362) - ))Impairment on staff loans )Refer to note 31 )q (920,308) (558,581)Write up of office supplies (3,023,298) 810,072Write-off f Advance payment for Intangible assets (59,405,972) (35,309,083)Reversal of EIFS balance 30,558 30,558 )Impairment on staff advances )Refer to note 31)q (663,832) (634,058)IFRS: Other assets 1,675,018,790 23,923,572,726



(in Ethiopian Birr)


(t) Loans to employees

Under the previous GAAP, the Bank did not recognize Loans to employees at below market rates at their fair values based on the prevailing market rates.

IFRS 9 requires the Bank to recognize these below market rate Loans to employees at fair value based on the prevailing market rates. The effect of this was to recognize the difference between the staff loan at market rate and the fair value amount as a prepaid employee cost and amortise it over the period of the loan.



Previous GAAP: Other assets – Loans to employees 12,230,692 8,049,139

IFRS Other assets – Loans to employees 9,621,922 7,499,407

Adjustment to Other assets – Loans to employees 2,608,770 549,732

(u) Employee benefits

Under local GAAP, all long-term service and post-employment benefits such as severance payment, post-employment medical pay, prize pay and funeral expenses were recognized on a cash basis.

IFRS requires such benefits be recognized on an accrual basis. On transition to IFRS, the Bank recognized a defined benefit obligation for its long-term and post employment benefits in accordance with IAS 19 Employee Benefits requirements. The effect of this was to recognize a defined liability in the statement of financial position and also the statement of profit or loss and other comprehensive income.



Previous GAAP: Employee benefits - -

IFRS adjustment: Employee benefits 163,866,323 141,193,620

IFRS: Employee benefits liability 163,866,323 141,193,620

223


(in Ethiopian Birr)


(u) Employee benefits – continued


Previous GAAP: Salaries and related benefits 106,512,622

IFRS adjustments: Bonus provision paid during the eyar (8,197,975)Bonus provision for next financial year 9,213,688Employee benefits as computed under IAS 19 22,672,703Remeasurement of defined benefit liability (5,483,916) IFRS: Salaries and related benefits 124,717,122

(v) Other liabilities

Under previous GAAP, the following items were disclosed within other liabilities: NBE bills and Government securities. These were subsequently reclassified on transition to IFRS. In addition to this, write back was made for long outstanding letters of credit, payables resulting from motor vehicle, buildings and CCTV equipment and reversal of EIFS balances from other assets to other liabilities.

The impact from such change is summarized as follows: Statement of financial position

30 June 2017 1 July 2016Previous GAAP: Other liabilities 57,939,452,608 45,043,277,274

Reclassification adjustments:Reclassification of NBE bills from other liabilities to Deposits due to local financial institutions (56,520,240,626) (43,680,971,689)Derecognition of government securities held as statutory de-posits (451,067,450) (301,747,975)IFRS adjusting entries:Write back of long outstanding letters of credit (3,807,482) (3,490,139)

Recognize portion of advance payment against PPE items 12,343,850 19,738,017Recognise payables as a result of PPE items 41,283,685 41,283,685

Reverse EIFS balance from Other assets to other liabilities 30,558 30,558IFRS: Other liabilities 1,017,995,143 1,118,119,731


Write back of long outstanding letters of credit )Refer to note 31 )gg((

317,343

Adjustment to Other income 317,343



(in Ethiopian Birr)


(w) Deferred revenue

Under previous GAAP, the Bank previously received grants of certain equipment from various insitutions such as EU, RUFIP and CIC. These grants require to be recognized in the correct manner hence the need for creation of a deferred revenue account to recognize these advances which are recognized as liabilities until the point when the use of these assets is fully onboarded onto NBE’s books.

The impact of this recognition of equipment received is summarized as follows:


Previous GAAP: Deferred revenue - -

IFRS adjusting entries:Recognition of receipt of computer hardware as grants from EU, RUFIP and CIC 202,894 202,894Amortisation of deferred income liability over the life of the donated assets (202,894) -IFRS: Deferred revenue - 202,894

(x) Foreign currency deposits

Under previous GAAP, the Bank previously recognized balances due to other institutions, deposits due to IMF and deposits relating to banks and government institutions under the classification defined as foreign currency deposits. In line with requirements of IFRS 7 and IFRS 9, the bank has unbundled this cluster and reclassified the balances to separate and distinct categories.

The impact of this reclassification of foreign currency deposits is summarized as follows:


Previous GAAP: Foreign currency deposits 59,339,097,534 72,733,928,838

Reclassification adjustments:Reclassification of balances due to other institu-tions from foreign currency deposits (23,417,568,963) (22,011,848,042)Reclassification of deposits due to international financial institutions from foreign currency de-posits

(16,672,694,573) (17,169,975,548)

Reclassification of deposits due to local financial institutions from foreign currency deposits (19,248,833,998) (33,552,105,248)IFRS: Foreign currency deposits - -

225


(in Ethiopian Birr)


(y) Due to other institutions

As a result of disclosure requirements arising from adoption of IFRS 7 and IFRS 9, the bank has unbundled and reclassified the balances due to other institutions to a separate categories.

The impact of this reclassification of foreign currency deposits to due to other institutions is summarized as follows:


Previous GAAP: Due to other institutions - -

Reclassification adjustments:Reclassification of balances due to other institutions from foreign currency deposits 23,417,568,963 22,011,848,042

IFRS: Due to other institutions 23,417,568,963 22,011,848,042(z) Due to local financial institutions and government agencies

As a result of disclosure requirements arising from adoption of IFRS 7 and IFRS 9, the bank has reclassified the balances due to local financial institutions and government agencies that were previous clustered as part of domestic currency deposits, foreign currency deposits and other liabilities and bundled these within one category.

The impact of these reclassifications to due to local financial institutions and government agencies is summarized as follows:


Previous GAAP: Due to local financial institutions and government agencies - -

Reclassification adjustments:Reclassification of balances due to local financial institutions from domestic currency deposits 67,093,253,826 51,696,978,457Reclassification of balances due to local financial institutions from foreign currency deposits 19,248,833,998 33,552,105,248Reclassification of balances due to local financial institutions and government agencies from other liabilities 56,520,240,626 43,680,971,689IFRS: Due to local financial institutions and govern-ment agencies 142,862,328,450 128,930,055,394



(in Ethiopian Birr)


(aa) Domestic currency deposits

As a result of disclosure requirements arising from adoption of IFRS 7 and IFRS 9, the bank has reclassified the domestic currency deposits to due local financial institutions.

The impact of this reclassifications to domestic currency deposits is summarized as follows:


Previous GAAP: Domestic currency deposits 67,093,253,826 51,696,978,457

Reclassification adjustments:Reclassification of balances due to local financial institutions from domestic currency deposits (67,093,253,826) (51,696,978,457)

IFRS: Domestic currency deposits - -

(bb) Funds due to international financing institutions

Under previous GAAP, fund due to international financing institutions were held within foreign currency deposits. Under IFRS, this had since been unbundled to a disclosure line defined as funds due to international financing institutions. In addition, there are additional IFRS adjustments relating to write offs of promissory note and accrued interest on SDR allocations which have been done.

The impact from these changes is summarized as follows:


Previous GAAP: Funds due to international financing institutions - -

Reclassification adjustments:Reclassification from foreign currency deposts 16,672,694,573 17,169,975,548IFRS adjusting entries:Write back of promissory note issued instead of cash purchase of shared in IDA (1,221,463) (1,221,463)Write back of accrued interest on SDR allocation that has already been paid off (6,186,253) (6,186,253)IFRS: Funds due to international financing institu-tions 16,665,286,857 17,162,567,832

227


(in Ethiopian Birr)


(cc) Fair value reserve

Under previous GAAP, balances relating to financial instruments were held at cost and no consideration for time value of money adjustment was factored in. Under IFRS, these instruments have been adjusted for fair value and the same has been disclosed.

The impact from these changes is summarized as follows:


Previous GAAP: Fair value reserve - -

IFRS adjusting entries:Recognise fair value adjustment on equity instruments (56,207,974) (40,493,836)Recognise fair value adjustment on year 1 valuation fo government bond 2,036,719,300 2,036,719,300Recognize fair value adjustment on monetary gold 1,150,741 1,149,197

Recognise fair value adjustment on year 1 valuation of non interest bearing CBE certificates of deposit 1,760,755,979 1,308,456,127

IFRS: Fair value reserve 3,742,418,046 3,305,830,788(dd) Other reserve

On IFRS transition, IFRS 1 provides that all adjustments required to align the financial statements for IFRS compliance should be passed through retained earnings or other appropriate reserve. Since retained earnings is usually nil due to a need to appropriate all surplus for the year to Ministry of Finance as dividends, the Other reserve account was created to accommodate the IFRS transition adjustments. This reserve is however not available for distribution as dividends.

The impact of all adjustments against Other reserve is summarized as follows:



(in Ethiopian Birr)


Previous GAAP: Other reserve - -

IFRS adjusting entries:Reversal of provisions made on DBE shareholding (1,000,100) (1,000,100)

Reversal of provision made on fake gold account (61,161,369) (61,161,369)

Creation of bonus provision 9,213,688 8,197,975

Write off outstanding debts from fake gold supplier 95,637,998 95,537,414

Write off outstanding receivables from government 24,722,661 24,722,66131. Explanation of transition to IFRS – continued(dd) Other reserve Write off long outstanding uncleared effects balances 3,440,206 3,440,206Write off long outstanding sundry debtors 5,223,567 5,223,567Write off long outstanding currency position 277,894 277,894Write off long outstanding claim on defective notes 1,800 1,800Write off unrecoverable amount from DBE 1,000,100 1,000,100Write off unreconciled suspense 5,062,479 5,546,229Write off long outstanding letters of credit (3,807,482) (3,490,139)Write off promisory note issued for IDA shares (1,221,463) (1,221,463)Write back accrued interest on SDR allocation (6,186,253) (6,186,253)Recognize lease depreciation and finance charges 43,384 (20,585)Impairment of due from Government of Etniopia 227,435,419 289,574,285mpairment of loans due from Government banks 121,207,714 120,693,582Impairment on loans due from foreign entities 1,802,212 1,537,362Write off of non-performing staff loans 56,100 (8,849)Recognise amortization of fair value loss 1,994,089 -Recognize impairment of staff loans 558,581 558,581Derecognise investment securities owned by MOF 110,788,407 104,518,552Recognize amortization expense on intangible assets 53,023,623 38,545,435Recognise PPE adjustments on IFRS transition 390,872,072 322,359,259Fair value adjustments of PPE items (1,383,954,004) (1,383,954,004)Write up office supplies to reconcile to stock balances 3,023,298 (810,072)Notional income on non interest government bond (187,161,922) -Notional income on CBE certificate of deposit (547,849,569) -Recognise impairment of staff advances 663,832 634,058Recognise receipt of grants from EU,RUFIP and CIC - 202,894Recognise employee benefits 158,382,407 141,193,620Write off deposits held with BCCI 9,219,109 8,746,986Expense sundry other debtors previously recorded as assets 5,337,014 5,337,014Eliminate other assets balance transferred to PPE and subsequently eliminated after PPE revaluation 2,126,078 2,126,078IFRS: Fair value reserve (961,228,430) (277,877,282)

229


(in Ethiopian Birr)


(ee) Interest income

On transition to IFRS, the Bank needed to re-measure and disclose its financial assets at fair value. As a result of the fair value, there is a notional income on non interest government bond as well as on non interest bearing CBE certificate of deposit that arises. These are subsequently adjusted within the Interest income line item.

The impact arising from this change is summarized as follows:


Previous GAAP: Interest income5,689,877,560

IFRS adjustments:Notional income on non-interest bearing government bond 187,161,922

Notional income on non-interest bearing CBE certificate of deposit 547,849,569

IFRS: Interest income 6,424,889,051

(ff) Revenue from sale of Gold

On transition to IFRS, the Bank made a decision to separate incomes from expenses so as to comply with IFRS 15 requirements. One of the items affected was gain/(loss) of gold commodity which was split between the constituent revenue and cost items.



Previous GAAP: Revenue from sale of Gold 79,372,955

Reclassification adjustments:Reclassify sale of Gold commodity as a separate line item from com-bined amounts disclosed as gain/(loss) on sale of gold 3,056,830,683

IFRS: Revenue from sale of Gold 3,136,203,638



(in Ethiopian Birr)


(gg) Other income

On transition to IFRS, the following adjustments were made against the other income line item. The adjustments relate to deferred income liability, write back of long outstanding letters of credit at NBE as well as amortization of employee staff benefit. The impact arising from this change is summarized as follows:


Previous GAAP: Other income -IFRS reclassifications:Miscellaneous income to Other income 14,117,000Gain/(Loss) on foreign exchange income to Other income 1,536,531,550IFRS adjustments:Write back of letters of credit 317,343Amortisation of fair value loss on prepaid expenses 212,779Deferred income liability of donated assets 202,894IFRS: Other income 1,551,381,566

(hh) Fair value gains / (losses) on financial assets

Under local GAAP, the Bank recognized fair value adjustments in equity instruments as well as write back fair value adjustment on the non interest CBE certificate of deposit upon partial payment of the balance due.



Previous GAAP: Fair value gains / (losses on foreign assets -

IFRS adjustments:Fair value adjustment in equity instruments (15,714,138)Write back fair value adjustment on non interest CBE certificate of de-posit upon partial payment of balance due 452,299,852IFRS: Fair value gains / (losses) on financial assets 436,585,714

231


(in Ethiopian Birr)


(ii) Gold purchase and other costs

On transition to IFRS, the Bank made a decision to separate incomes from expenses so as to comply with IFRS 15 requirements. One of the items affected was gain/(loss) of gold commodity which was split between the constituent revenue and cost items.The impact arising from this change is summarized as follows:


Previous GAAP: Gold purchase and other costs -

Reclassification adjustments:Reclassify sale of Gold commodity as a separate line item from com-bined amounts disclosed as gain/(loss) on sale of gold 3,056,830,683Reclassify gold processing and refinery costs from General and ad-ministrative expenses 11,199,217IFRS: Gold purchase and other costs 3,068,029,900

(jj) General and administrative expenses

On transition to IFRS, the following adjustments were made against the general and administrative expenses line item. The impact arising from this change is summarized as follows:


Previous GAAP: General and administrative expenses 107,832,494IFRS reclassifications:Cost of Gold sold (11,199,217)IFRS adjustments: Write off long outstanding uncleared effects 100,584 Write off unreconciled suspense (483,750)Right of use depreciation 153,324Finance lease charge 157,665Lease payments (247,020)Non performing staff loans 64,949Amortisation of fair value loss (prepaid expenses) 1,845,141Derecognise investment securities paid for by MOF 6,269,855Amortisation expense 14,478,188PPE IFRS transition adjustments 68,512,812Office supplies/inventories 3,833,371 Write off of BCCI deposits 472,123 IFRS: General and administrative expenses 191,790,519



STATISTICAL TABLES

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Smal

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Elec

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Who

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.8

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.6

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Tran

spor

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Com

mun

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ions

14,5

45.3

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90.5

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Fina

ncia

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8,30

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7

9,

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6

11,9

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14,7

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47

,061

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Rea

l Est

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ness

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Publ

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dmin

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tion

and

Def

ense

12,3

68.4

14,6

39.8

15,9

44.3

25,7

35.8

26,5

29.0

28,5

54.4

31,7

01.1

33,6

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62,2

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70

,488

.5

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54.1

Educ

atio

n7,

284.

0

8,23

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12

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.6

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Hea

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0

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18,1

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Oth

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11

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12

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14

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15

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15

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18

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98.4

20

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.9

Priv

ate

Hou

seho

lds

with

Em

ploy

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1.1

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1,

121.

0

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5

1,40

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7

1,53

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Tot

al

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3

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6

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1

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9

519,

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571,

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3

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7

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8

1,46

3,88

3.8

1,

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519.

9

1,73

9,25

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Less

: F

ISIM

2,39

3.7

2,

693.

7

2,

898.

1

3,21

9.3

2,87

6.9

3,

061.

0

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1

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Gro

ss V

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t Con

stan

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ic P

rices

344,

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9

378,

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4

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0

475,

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5

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3

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7

1,44

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1,

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6

1,71

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1.3

Taxe

s on

Pro

duct

s27

,238

.6

24

,975

.4

36

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.6

39

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.0

42

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50

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.9

55

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61

,008

.0

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8,70

0.0

120,

645.

6

11

4,57

5.2

GD

P at

Con

stan

t Mar

ket P

rices

371,

570.

5

403,

882.

7

455,

268.

5

515,

078.

5

559,

621.

6

618,

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2

682,

358.

5

753,

229.

7

1,56

8,09

7.5

1,

717,

127.

2

1,83

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6.5

Sour

ce:M

oFED

Sect

ors/

Year

Ann

ex 2

: G

DP

By

Econ

omic

Act

ivity

at C

onst

ant

Pric

es

Anne

x 3:

Gro

wth

Rat

e O

f GDP

By

Econ

omic

Act

ivity

at C

onst

ant P

rices

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2000

/01

2001

/02

2002

/03

2003

/04

2004

/05

2005

/06

2006

/07

2007

/08

2008

/09

2009

/10

2010

/11

2011

/12.

2012

/13

2013

/14

2014

/15

2015

/16

2016

/17

2017

/18

Agric

ultu

re, H

untin

g an

d Fo

rest

ry9.

9-1

.9-1

0.5

17.1

13.7

11.0

9.4

7.4

6.2

7.6

8.9

4.9

7.1

5.4

6.3

2.3

6.7

3.5

Cro

p15

.0-3

.7-1

6.5

25.6

19.5

15.0

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8.0

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8.7

10.3

5.0

8.2

6.6

7.2

3.4

8.2

4.7

Anim

al F

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ting

2.5

0.2

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5.9

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7.9

7.3

7.0

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7.5

5.4

5.2

2.1

4.7

-1.5

4.2

0.6

Fore

stry

2.6

2.8

2.9

2.7

2.4

2.7

2.9

4.2

3.1

3.3

2.5

3.1

3.3

4.2

3.5

2.2

3.6

3.5

Fish

ing

-1.9

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8.6

-8.2

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5.9

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Min

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Smal

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dust

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6.5

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-0.4

4.5

15.0

4.9

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5.6

6.4

7.0

24.7

4.2

1.9

4.3

3.8

2.5

36.9

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Elec

trici

ty a

nd W

ater

3.3

9.7

4.8

6.6

7.9

8.8

13.6

4.8

5.0

2.5

6.4

13.5

10.0

6.8

4.5

15.0

4.9

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Con

stru

ctio

n8.

016

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510

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Who

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and

Ret

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rade

5.1

3.4

3.1

5.1

13.1

17.5

16.8

15.8

11.7

9.3

5.9

12.5

10.1

17.7

12.3

8.2

6.5

12.3

Hot

els

and

Res

taur

ants

8.2

5.0

6.3

6.2

11.6

19.5

27.5

23.3

23.9

24.3

24.6

10.1

19.1

26.6

29.6

15.6

0.1

6.5

Tran

spor

t and

Com

mun

icat

ions

13.7

5.6

10.5

9.5

19.2

5.7

9.3

11.5

8.9

14.4

9.7

12.6

16.5

12.7

13.3

13.7

15.1

6.4

Fina

ncia

l Int

erm

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11.8

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010

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2.2

14.3

7.5

9.6

18.3

10.7

Rea

l Est

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Ren

ting

and

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iviti

es9.

123

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74.

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414

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83.

93.

94.

13.

74.

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2

Publ

ic A

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61.

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211

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411

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611

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413

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9

Educ

atio

n11

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711

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621

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510

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28.

8-3

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6

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815

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412

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8.3

Oth

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unity

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cial

& P

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nal S

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3.9

5.1

1.5

4.8

8.0

9.2

8.5

11.7

6.4

8.1

-1.1

12.4

18.4

3.8

3.7

3.0

4.5

5.1

Priv

ate

Hou

seho

lds

with

Em

ploy

ed P

erso

ns4.

111

.34.

51.

63.

26.

64.

05.

33.

84.

85.

116

.18.

24.

44.

44.

33.

53.

9

Tot

al

7.6

0.8

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12.0

12.8

12.0

11.5

11.2

9.7

10.2

13.5

8.6

9.9

10.3

10.4

8.0

10.2

7.8

Less

: F

ISIM

3.8

-36.

114

.718

.516

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03.2

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630

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611

.1-1

0.6

6.4

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17.9

16.9

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16

Gro

ss V

alue

Add

ed a

t Con

stan

t Bas

ic P

rices

7.4

1.6

-2.1

11.7

12.6

11.5

11.8

11.2

10.0

10.6

11.4

8.7

9.9

10.3

10.4

8.0

10.1

7.7

Taxe

s on

Pro

duct

s21

.00.

0-3

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12.

77.

25.

6-8

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68.

018

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910

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12.

9-5

.0

GD

P at

Con

stan

t Mar

ket P

rices

8.4

1.5

-2.2

13.7

11.7

10.8

11.4

10.8

8.7

12.7

13.1

8.6

10.6

10.3

10.4

7.6

10.2

6.8

Sour

ce:M

oFED

Indu

stry

/Yea

r

( In

per

cent

)

235

NATIONAL BANK OF ETHIOPIAAn

nex

3: G

row

th R

ate

Of G

DP B

y Ec

onom

ic A

ctiv

ity a

t Con

stan

t Pric

es19

9319

9419

9519

9619

9719

9819

9920

0020

0120

0220

0320

0420

0520

0620

0720

0820

0920

1020

00/0

120

01/0

220

02/0

320

03/0

420

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520

05/0

620

06/0

720

07/0

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08/0

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09/1

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11/1

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12/1

320

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15/1

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16/1

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Agric

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9-1

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8.9

4.9

7.1

5.4

6.3

2.3

6.7

3.5

Cro

p15

.0-3

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6.5

25.6

19.5

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6.6

7.2

3.4

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4.7

Anim

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arm

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and

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ting

2.5

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7.5

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2.1

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Fore

stry

2.6

2.8

2.9

2.7

2.4

2.7

2.9

4.2

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3.3

2.5

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3.3

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3.5

Fish

ing

-1.9

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Min

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Smal

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ries

6.5

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6.0

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6.4

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24.7

4.2

1.9

4.3

3.8

2.5

36.9

4.6

Elec

trici

ty a

nd W

ater

3.3

9.7

4.8

6.6

7.9

8.8

13.6

4.8

5.0

2.5

6.4

13.5

10.0

6.8

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15.0

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Con

stru

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016

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Who

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Ret

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rade

5.1

3.4

3.1

5.1

13.1

17.5

16.8

15.8

11.7

9.3

5.9

12.5

10.1

17.7

12.3

8.2

6.5

12.3

Hot

els

and

Res

taur

ants

8.2

5.0

6.3

6.2

11.6

19.5

27.5

23.3

23.9

24.3

24.6

10.1

19.1

26.6

29.6

15.6

0.1

6.5

Tran

spor

t and

Com

mun

icat

ions

13.7

5.6

10.5

9.5

19.2

5.7

9.3

11.5

8.9

14.4

9.7

12.6

16.5

12.7

13.3

13.7

15.1

6.4

Fina

ncia

l Int

erm

edia

tion

11.8

-25.

010

.819

.724

.228

.715

.128

.116

.5-0

.323

.723

.6-1

2.2

14.3

7.5

9.6

18.3

10.7

Rea

l Est

ate,

Ren

ting

and

Busi

ness

Act

iviti

es9.

123

.29.

74.

57.

414

.515

.217

.315

.920

.022

.13.

83.

93.

94.

13.

74.

46.

2

Publ

ic A

dmin

istra

tion

and

Def

ense

-9.4

-15.

61.

40.

211

.66.

411

.812

.518

.48.

961

.43.

17.

611

.06.

07.

413

.28.

9

Educ

atio

n11

.37.

711

.611

.512

.68.

621

.214

.813

.017

.011

.94.

510

.12.

69.

28.

8-3

.23.

6

Hea

lth a

nd S

ocia

l Wor

k10

.2-0

.1-4

.215

.916

.99.

815

.815

.520

.414

.018

.39.

412

.319

.313

.010

.87

8.3

Oth

er C

omm

unity

, So

cial

& P

erso

nal S

ervi

ces

3.9

5.1

1.5

4.8

8.0

9.2

8.5

11.7

6.4

8.1

-1.1

12.4

18.4

3.8

3.7

3.0

4.5

5.1

Priv

ate

Hou

seho

lds

with

Em

ploy

ed P

erso

ns4.

111

.34.

51.

63.

26.

64.

05.

33.

84.

85.

116

.18.

24.

44.

44.

33.

53.

9

Tot

al

7.6

0.8

-3.1

12.0

12.8

12.0

11.5

11.2

9.7

10.2

13.5

8.6

9.9

10.3

10.4

8.0

10.2

7.8

Less

: F

ISIM

3.8

-36.

114

.718

.516

.513

03.2

-88.

630

.012

.57.

611

.1-1

0.6

6.4

19.4

17.9

16.9

17.6

16

Gro

ss V

alue

Add

ed a

t Con

stan

t Bas

ic P

rices

7.4

1.6

-2.1

11.7

12.6

11.5

11.8

11.2

10.0

10.6

11.4

8.7

9.9

10.3

10.4

8.0

10.1

7.7

Taxe

s on

Pro

duct

s21

.00.

0-3

.037

.63.

12.

77.

25.

6-8

.345

.48.

68.

018

.39.

910

.23.

12.

9-5

.0

GD

P at

Con

stan

t Mar

ket P

rices

8.4

1.5

-2.2

13.7

11.7

10.8

11.4

10.8

8.7

12.7

13.1

8.6

10.6

10.3

10.4

7.6

10.2

6.8

Sour

ce:M

oFED

Indu

stry

/Yea

r

( In

per

cent

)


NATIONAL BANK OF ETHIOPIAA

nnex

4:

Valu

e of

Agg

rega

te O

utpu

t, C

onsu

mpt

ion,

Inve

stm

ent a

nd S

avin

gs a

t Cur

rent

Pric

es

2002

2003

2004

2005

2006

2007

2008

2009

2010

2009

/10

2010

/11

2011

/12

2012

/13

2013

/14

2014

/15

2015

/16

2016

/17

2017

/18

Gro

ss V

alue

Add

ed a

t Cur

rent

Bas

ic P

rices

348,

686.

0

4

75,6

47.5

690

,444

.5

7

96,3

03.1

97

4,72

7.0

1,19

2,83

3.0

1,

449,

397.

0

1,70

3,79

8.0

2,

064,

789.

0

Taxe

s on

Pro

duct

s, n

et28

,412

.0

39

,431

.0

56,8

82.0

70

,618

.0

86,0

98.0

105,

129.

0

11

8,70

0.0

128,

755.

0

13

7,58

3.0

GD

P a

t Cur

rent

Mar

ket P

rices

379,

135.

0

515,

078.

5

74

7,32

6.5

866,

921.

1

1,

060,

825.

0

1,29

7,96

2.0

1,

568,

097.

0

1,83

2,55

4.0

2,

202,

373.

0

Inco

mes

fro

m R

OW

, net

(614

.6)

(1

,120

.2)

(1

,659

.8)

(1

,942

.8)

(2

,914

.6)

(5

,275

.1)

(5

,122

.0)

(1

0,88

4.1)

(14,

349.

1)

Gro

ss N

atio

nal I

ncom

e at

Cur

rent

Bas

ic P

rices

347,

973.

0

474,

527.

4

68

8,78

4.7

794,

360.

3

97

1,81

3.0

1,18

7,55

8.0

1,

444,

275.

0

1,69

2,91

4.1

2,

050,

440.

2

Gro

ss N

atio

nal I

ncom

e at

Cur

rent

Mar

ket P

rices

378,

422.

0

5

13,9

58.4

745

,666

.7

8

64,9

78.3

1,

057,

911.

0

1,29

2,68

6.0

1,

562,

975.

0

1,82

1,66

9.6

2,

188,

023.

6

Cur

rent

Tra

nsfe

rs fr

om R

OW

, net

59,4

85.0

74,2

61.2

86,8

49.9

93,3

55.1

106,

357.

3

12

8,40

1.0

155,

964.

0

15

4,95

9.0

188,

527.

0

Gro

ss N

atio

nal D

ispo

sabl

e In

com

e43

7,90

7.0

58

8,21

9.5

832,

516.

6

95

8,33

3.4

1,1

64,2

68.0

1

,421

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.0

1,71

8,93

9.0

1,

976,

629.

0

2,37

6,55

1.0

Gov

ernm

ent F

inal

Con

sum

ptio

n E

xpen

ditu

re34

,801

.0

5

3,14

7.1

62,

044.

5

7

7,63

6.9

98,

121.

0

116

,995

.0

174,

599.

0

20

3,60

8.0

225,

523.

0

Priv

ate

Fina

l Con

sum

ptio

n E

xpen

ditu

re30

9,13

2.0

37

3,08

8.5

541,

536.

3

63

6,90

1.3

744,

978.

0

89

6,20

8.0

1,04

2,26

5.0

1,

219,

366.

0

1,44

1,58

1.0

Gro

ss C

apita

l For

mat

ion

(Inve

stm

ent)

102,

403.

0

1

65,3

79.7

277

,243

.0

2

95,4

56.4

40

2,92

2.0

511,

618.

0

58

5,66

5.0

704,

596.

0

75

1,62

6.0

Exp

orts

of G

oods

and

Ser

vice

s52

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.0

85

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.4

102,

886.

6

10

8,22

7.1

123,

496.

0

12

1,53

2.2

122,

501.

0

13

9,83

0.0

184,

282.

0

Impo

rts o

f Goo

ds a

nd S

ervi

ces

126,

319.

0

1

62,4

87.1

236

,383

.9

2

51,3

00.6

30

8,69

1.3

393,

189.

0

42

4,75

0.0

430,

233.

0

50

2,11

3.0

Res

ourc

e B

alan

ce(7

4,15

1.0)

(76,

536.

7)

(133

,497

.3)

(1

43,0

73.5

)

(185

,195

.3)

(2

71,6

56.0

)

(302

,249

.0)

(290

,403

.0)

(317

,831

.0)

Gro

ss D

omes

tic S

avin

gs35

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.0

88

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.0

143,

745.

7

15

2,38

2.9

217,

726.

0

28

4,75

9.0

351,

233.

0

40

9,58

0.0

535,

269.

0

Gro

ss N

atio

nal S

avin

gs93

,973

.0

161

,984

.0

2

28,9

35.8

243

,795

.2

321,

169.

0

40

7,88

4.0

502,

076.

0

55

3,65

5.0

709,

447.

0

Mid

-yea

r Pop

ulat

ion

(In M

illio

n)78

.8

80.7

82

.7

84.8

87

.0

89.1

91

.2

93.4

95.5

Per

Cap

ita N

omin

al G

DP

(In

Birr

)4,

803.

0

6,38

4.1

9,03

1.8

10,2

18.7

12

,200

.3

14,5

71.0

17

,192

.0

19,6

30.0

23

,061

.0

Per

Cap

ita R

eal G

DP

(In

Birr

)5,

316.

6

6,38

4.1

6,76

3.3

7,29

4.5

7,84

7.6

8,45

5.8

17,1

92.0

18

,345

.8

19,2

17.5

Ave

rage

Exc

hang

e R

ate

(Birr

/US

D)

12.9

16

.1

17.2

18

.3

19.1

20

.1

21.1

22

.426

.1

Rea

l GD

P (I

n U

SD

)18

,754

.4

29

,543

.3

30,0

07.3

31

,095

.9

32,8

77.7

34

,438

.9

74,2

97.0

76

,411

.2

70,2

96.7

Nom

inal

GD

P (I

n U

SD

)(M

illio

n)29

,413

.1

29

,543

.3

40,0

72.2

43

,561

.4

51,1

13.1

59

,344

.9

74,2

97.0

81

,760

.0

84,3

56.0

Per

Cap

ita N

omin

al G

DP

(In

US

D)

373.

0

39

6.1

52

3.5

55

9.1

63

9.6

72

5.0

81

5.0

87

6.0

88

3.0

Per

Cap

ita R

eal G

DP

(In

US

D)

238.

0

39

6.1

39

2.0

39

9.1

41

1.4

42

0.7

81

5.0

81

8.7

73

5.8

GD

P D

efla

tor

83.3

10

0.0

13

3.5

14

0.1

15

5.5

17

2.3

10

0.0

10

7.0

12

0.0

Sou

rce:

MO

FED

Des

crip

tion

/ Yea

r

(In M

illio

ns o

f Birr

)

1

237


nnex

5:

Gro

wth

Rat

es o

f Agg

rega

te O

utpu

t, C

onsu

mpt

ion,

Inve

stm

ent a

nd S

avin

gs

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2000

/01

2001

/02

2002

/03

2003

/04

2004

/05

2005

/06

2006

/07

2007

/08

2008

/09

2009

/10

2010

/11

2011

/12

2012

/13

2013

/14

2014

/15

2015

/16

2016

/17

2017

/18

GD

P at

Cur

rent

Bas

ic P

rices

1.2

-2.0

10.4

16.1

23.8

24.4

31.0

44.9

36.6

12.1

36.4

45.2

15.3

22.4

22.4

18.2

17.9

21.2

Taxe

s on

Pro

duct

s, n

et14

.0-3

.69.

443

.013

.314

.525

.737

.714

.048

.538

.844

.324

.121

.922

.112

.88.

56.

9

GD

P at

Cur

rent

Mar

ket P

rices

2.1

-2.2

10.3

18.0

22.9

23.6

30.6

44.4

35.1

14.2

35.9

45.1

16.0

22.4

22.4

17.7

16.9

20.2

Inco

mes

fro

m R

OW

, net

37.6

-25.

410

.244

.9-1

32.1

121.

774

.43.

9-1

07.9

976.

582

.3-4

8.2

-17.

1-5

0.0

-81.

0-1

.5-1

12.5

-31.

8

Gro

ss N

atio

nal I

ncom

e at

Cur

rent

Bas

ic P

rice

1.1

-1.9

10.4

16.0

24.4

24.3

31.3

44.8

36.3

12.0

36.4

45.2

15.3

22.3

22.2

18.2

17.2

21.1

Gro

ss N

atio

nal I

ncom

e at

Cur

rent

Mar

ket P

rice

2.0

-2.1

10.3

17.9

23.5

23.5

30.9

44.3

34.8

14.1

35.8

45.1

16.0

22.3

22.2

17.8

16.6

20.1

Cur

rent

Tra

nsfe

rs fr

om R

OW

, net

13.8

3.1

41.5

0.5

62.5

18.4

40.1

34.4

29.2

34.6

24.8

17.0

7.5

13.9

20.7

23.4

-0.6

21.7

Gro

ss N

atio

nal D

ispo

sabl

e In

com

e2.

9-1

.613

.215

.927

.422

.932

.043

.034

.116

.534

.341

.515

.121

.522

.118

.315

.020

.2

Gov

ernm

ent F

inal

Con

sum

ptio

n Ex

pend

iture

-16.

4-0

.9-0

.214

.916

.721

.812

.434

.822

.310

.352

.716

.725

.126

.419

.227

.216

.610

.8

Priv

ate

Fina

l Con

sum

ptio

n Ex

pend

iture

5.2

2.8

15.1

7.2

33.8

26

.951

.835

.715

.320

.745

.117

.617

.020

.315

.717

.018

.2

Gro

ss C

apita

l For

mat

ion

(Inve

stm

ent)

8.3

9.6

1.6

40.9

10.1

31.2

14.7

45.9

37.2

24.0

61.5

67.6

6.6

36.4

27.0

15.1

20.3

6.7

Expo

rts o

f Goo

ds a

nd S

ervi

ces

1.7

3.0

16.6

32.1

24.5

13.2

20.0

29.6

24.4

48.1

64.8

19.7

5.2

14.1

-1.6

0.7

14.1

31.8

Impo

rts o

f Goo

ds a

nd S

ervi

ces

1.0

9.9

13.7

35.9

38.0

27.3

14.5

39.0

25.8

31.2

28.6

45.5

6.3

22.8

27.4

8.0

1.3

16.7

Res

ourc

e Ba

lanc

e0.

217

.011

.139

.650

.137

.711

.245

.226

.521

.53.

2-7

4.4

-7.2

-29.

4-4

6.7

-11.

23.

9-9

.4

Gro

ss D

omes

tic S

avin

gs13

.8-3

0.6

-10.

013

5.0

-22.

97.

895

.27.

443

.98.

315

2.4

61.8

6.0

43.0

30.8

20.1

16.6

30.7

Gro

ss N

atio

nal S

avin

gs13

.4-1

6.2

16.9

50.4

15.3

13.7

61.6

22.2

33.8

23.0

72.4

41.3

6.5

31.8

27.0

21.4

16.9

28.1

Mid

-yea

r Pop

ulat

ion

(in M

illion

)2.

72.

62.

52.

62.

72.

53.

43.

52.

52.

62.

42.

52.

52.

62.

42.

42.

42.

2

Per C

apita

GD

P (B

irr) (

Nom

inal

)-0

.9-4

.87.

615

.020

.120

.929

.142

.631

.611

.232

.941

.513

.119

.419

.415

.014

.217

.5

Per C

apita

GD

P (B

irr) (

Rea

l)4.

6-0

.9-4

.58.

99.

78.

88.

17.

57.

37.

810

.95.

97.

97.

67.

74.

86.

74.

8

Aver

age

Exch

ange

Rat

e (B

irr/U

SD)

2.3

2.5

0.5

0.6

0.3

0.3

1.3

5.1

12.8

23.7

24.9

7.0

6.1

4.3

5.4

5.0

6.2

16.5

Rea

l GD

P (U

SD)

8.7

1.2

-1.8

13.2

12.3

10.6

5.8

16.6

9.1

12.5

57.6

1.6

3.6

5.7

4.7

2.8

2.8

-8.0

GD

P at

Cur

rent

Mar

ket P

rices

(USD

)-0

.3-4

.69.

817

.322

.623

.229

.037

.419

.8-7

.78.

635

.69.

517

.316

.112

.110

.03.

2

Per C

apita

GD

P (U

SD) (

Nom

inal

)-3

.1-7

.26.

914

.520

.419

.927

.835

.516

.6-9

.96.

232

.26.

814

.413

.49.

57.

80.

8

Per C

apita

GD

P (U

SD) (

Rea

l)5.

9-1

.4-4

.210

.39.

37.

92.

312

.76.

49.

753

.8-1

.01.

83.

12.

3-0

.10.

5-1

0.1

Perc

enta

ge C

hang

e in

GD

P D

efla

tor

-5.8

-3.6

12.8

3.8

9.9

11.6

17.3

30.4

24.3

1.3

20.1

33.5

4.9

11.0

6.4

0.0

6.3

12.5

Sour

ce: M

OFE

D

Des

crip

tion

/ Yea

r

( Inp

erce

nt)


NATIONAL BANK OF ETHIOPIAG

.C.

2004

/05

2005

/06

2006

/07

,200

7/08

,200

8/09

,200

9/10

,201

0/11

,201

1/12

,201

2/13

,201

3/14

,201

4/15

,201

5/16

,201

6/17

,201

7/18

EFY

(199

7)(1

998)

(199

9)(2

000)

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24,5

64.9

29,9

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48.5

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on M

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Sor

ce: N

BE

Sta

ff C

ompi

latio

n*I

nclu

des

othe

r pub

lic s

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r lon

g-te

rm lo

an a

nd p

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e lo

anN

B:-U

SD

to b

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over

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is m

ade

by u

sing

ann

ual a

vera

ge e

xcha

nge

rate

.

Ann

ex 6

: Bal

ance

of P

aym

ent

239

NATIONAL BANK OF ETHIOPIA A

nnex

7 :

SUM

MA

RY

OF

EXTE

RN

AL

PUB

LIC

DEB

T

1999

/00

2000

/01

2001

/02

2002

/03

2003

/04

2004

/05

2005

/06

2006

/07

2007

/08

2008

/09

2009

/10

2010

/11

2011

/12

2012

/13

,201

3/14

,201

4/15

,201

5/16

,201

6/17

,201

7/18

(199

2)(1

993)

(199

4) (

1995

) (

1996

)(1

997)

(199

8)(1

999)

(200

0)(2

001)

(200

2)(2

003)

(200

4)(2

005)

(200

6)(2

007)

(200

8)(2

009)

(201

0)

EXT

ERN

AL D

EBT

Dis

burs

ed *

44,6

47.5

46

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52,9

94.3

58

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63,0

77.6

51

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54

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8

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ased

on

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sed

GD

P se

ries

NB :

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to b

irr c

over

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is m

ade

by u

sing

ann

ual a

vera

ge e

xcha

nge

rate

.

(In M

illion

s of

Birr

)



99/0

020

00/0

120

01/0

220

02/0

320

03/0

420

04/0

520

05/0

620

06/0

720

07/0

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08/0

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09/1

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10/1

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11/1

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12/1

320

13/1

420

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4)(1

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8)(1

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Oils

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597.

92

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13

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5.90

229.

30

2,86

0.36

Cot

ton

-

-

-

9,

000.

00

9,

000.

00

7,

822.

75

152.

17

12

6.93

5,67

3.61

751.

98

8.29

0.34

-

3,52

9.38

Text

. & T

ext.

Prd

ts-

-

-

-

-

6,41

8.52

8,

537.

56

10,7

99.7

6

15

,935

.97

18

,638

.34

14

,858

.30

12

,281

.54

16,1

92.8

2

16,7

61.8

1

Cer

eals

and

Flo

ur-

-

-

29,1

00.0

0

25,0

00.0

0

14

,147

.53

122,

344.

23

12

,265

.32

6,81

9.15

19,9

68.1

9

39,1

71.9

1

11,4

03.5

9

71

,737

.19

11

,805

.28

Nat

ural

Gum

-

-

-

-

-

4,

374.

29

4,41

6.78

3,

503.

66

3,26

8.07

3,40

2.88

3,47

2.77

2,

351.

01

3,38

3.90

2,48

2.77

Civ

et-

-

-

-

-

-

-

-

-

-

-

-

-

-

Hop

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Ani

mal

Fod

der

-

-

-

-

-

26

,462

.37

286.

61

48

.93

40.0

1

-

-

-

-

-

Nat

ural

Hon

ey-

-

-

-

-

561.

61

52

0.30

876.

66

83

9.54

74

2.35

68

1.18

592.

53

44

4.10

31

6.30

Mar

ble

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Flow

er-

-

-

-

-

-

6,25

7.85

13,6

01.2

4

22

,402

.58

29,1

66.1

1

35

,958

.90

41,5

62.6

1

46

,797

.66

42,4

38.2

3

44,7

20.5

2

46,3

30.6

7

50,6

29.1

0

49

,356

.08

50

,100

.88

Bev

erag

e-

-

-

-

-

1,99

3.05

2,

739.

15

3,82

9.13

3,

971.

20

2,

201.

69

2,

990.

00

4,21

3.56

3,

943.

14

3,

566.

97

Spi

ces

-

-

-

-

-

15

,595

.18

12,8

03.2

7

17

,207

.29

24,2

39.6

0

21,2

61.1

5

19,1

46.4

8

13,3

74.7

9

12

,427

.56

12

,576

.85

Sou

rces

: Eth

iopi

an C

usto

ms

Aut

horit

y

Com

mod

ity

( I

n M

etri

c T

ons )

Ann

ex 9

: Qua

ntity

of M

ajor

Exp

orts



95/9

619

96/9

719

97/9

819

98/9

919

99/0

020

00/0

120

01/0

220

02/0

320

03/0

420

04/0

520

05/0

620

06/0

720

07/0

820

08/0

920

09/1

020

10/1

120

11/1

220

12/1

320

13/1

420

14/1

520

14/1

520

16/1

720

17/1

820

18/1

9(1

988)

(198

9)(1

990)

(199

1)(1

992)

(199

3)(1

994)

(199

5)(1

996)

(199

7)(1

998)

(199

9)(2

000)

(200

1)(2

002)

(200

3)(2

004)

(200

5)(2

006)

(200

7)(2

007)

(200

9)(2

010)

(201

1)

Cof

fee

17.6

7

18.7

3

24.0

7

20.8

7

18.3

1

15

.33

12

.63

11.2

5

12

.32

18.0

1

20

.83

21.2

1

28.6

8

29

.35

40.1

4

79

.07

85.1

5

68

.29

72.2

7

85

.58

76.8

5

88.1

4

91

.77

93.0

6

OIls

eeds

5.35

5.28

4.73

5.28

5.92

4.90

3.64

4.

78

6.73

6.34

6.91

7.

04

13.3

9

13

.31

15.6

2

20

.78

22.2

5

28

.52

39.8

0

32

.15

23.0

8

23.6

6

32

.10

42.0

0

Hid

es &

Ski

ns41

.04

43

.04

44

.28

41

.73

33

.29

51.0

7

45.9

1

42

.49

39.9

8

37

.41

42.3

0

50

.03

74

.60

104.

72

25

2.10

327.

08

42

7.08

477.

88

44

4.04

428.

30

40

5.13

434.

46

53

9.90

587.

70

Pul

ses

2.67

2.88

3.33

3.41

3.40

2.71

2.58

2.

59

2.66

2.52

2.91

3.

90

5.72

6.

86

7.43

9.

95

12.2

2

11

.89

13.5

7

12

.94

13.0

2

15.9

8

16

.26

16.5

5

Mea

t Pro

duct

s12

.80

14

.08

19

.18

15

.23

16

.55

16.5

2

14.2

2

12

.07

16.6

4

17

.34

20.2

2

23

.17

29

.91

36.5

8

43

.31

60.7

1

76

.88

87.3

3

95

.11

98.0

3

10

6.86

113.

20

13

3.40

140.

24

Frui

ts &

Veg

etab

les

1.11

2.10

1.85

2.09

2.13

2.68

2.70

3.

25

2.98

3.67

3.29

3.

48

2.97

3.

22

6.22

5.

60

6.28

5.

91

6.03

6.

37

6.75

7.

04

8.49

9.

73

Sug

ar0.

36

0.

19

1.

39

1.

20

1.

47

2.00

5.

53

0.

35

0.

28

3.75

31

.11

-

12

.31

2.26

3.

71

2.44

Gol

d (B

irr/k

g)85

,290

.30

81

,577

.41

10

3,31

5.06

49

,287

.07

63

,099

.01

72,2

28.6

9

93

,670

.66

85

,698

.86

11

2,99

7.71

15

4,84

2.87

195,

766.

75

212,

353.

76

416,

272.

78

674,

351.

38

854,

697.

83

856,

074.

12

749,

397.

85

708,

167.

65

712,

719.

12

78

4,60

3.30

92

3,96

2.14

94

8,81

7.70

Oil

Cak

es

Live

Ani

mal

s4.

22

8.

58

7.

98

6.

23

8.

00

7.

03

43

.05

6.80

5.

24

5.

22

7.

19

7.40

9.

42

14.7

0

17

.33

21.1

6

24

.61

29.9

6

33

.58

38.2

3

39

.74

41

.77

48.1

9

52

.90

Cha

t47

.17

39

.66

45

.54

45

.87

39

.45

42.8

0

44.6

5

81

.54

40.9

9

44

.70

34.7

4

36

.04

44

.67

57.0

1

75

.10

93.6

3

10

0.95

104.

67

10

9.71

111.

13

11

7.28

125.

23

14

6.36

158.

89

Pet

role

um P

rodu

cts

0.54

0.70

0.49

Bee

's W

ax24

.22

29

.25

10

.57

28

.35

25

.58

23.3

1

21.0

7

21

.91

19.1

2

25

.06

37.4

8

38

.79

71

.40

48.1

3

56

.70

80.3

5

10

1.70

115.

99

15

5.50

183.

96

19

1.77

200.

33

22

6.68

238.

92

Tant

alem

343.

24

34

4.72

59

4.53

1,39

6.52

97

8.36

1,21

8.19

98

3.12

1,37

1.18

81

5.30

601.

23

86

.01

710.

24

Cot

ton

10.6

8

11

.68

17.6

1

56

.85

25.6

7

27

.81

26.6

7

28

.47

33.7

9

-

39.7

7

33

.89

Text

. & T

ext.

Prd

ts46

.32

117.

15

13

5.28

111.

27

11

2.72

132.

54

13

3.04

123.

78

16

0.80

216.

01

Cer

eals

and

Flo

ur4.

16

4.10

5.28

4.

32

8.69

10

.30

10.6

7

8.

16

16.2

4

8.99

13

.28

22.8

9

Nat

ural

Gum

37.4

8

46

.82

57.8

8

62

.63

68.0

2

66

.50

74.8

6

78.6

6

94

.17

130.

40

Civ

et

Hop

Ani

mal

Fod

der

2.33

1.

50

1.52

5.

43

Nat

ural

Hon

ey43

.91

51.5

0

63

.88

62.9

7

63

.62

67.7

4

70

.76

70

.58

74.9

1

10

0.19

Mar

ble

Flow

er30

.20

41.2

7

46.3

3

47

.12

61.3

0

68

.47

72.7

0

80

.15

85.3

6

88

.21

93.5

8

99.3

9

11

9.40

124.

95

Bev

erag

e11

.09

12.3

7

19

.98

23.2

1

27

.20

26.7

2

26

.05

22

.95

30.5

0

26

.05

Spi

ces

15.5

5

44

.30

36.0

4

22

.55

26.3

9

33

.84

42.3

3

44.6

4

35

.09

32.9

5

Eth

iopi

an M

inis

try o

f Rev

enue

Com

mod

ity

Ann

ex 1

0: U

nit V

alue

of E

xpor

t Ite

ms

(Birr

/Kg)

243

NATIONAL BANK OF ETHIOPIAPe

riod

Food

& L

ive

Ani

mal

sB

ever

ages

Toba

cco

Petr

oleu

m C

rude

Petr

oleu

m P

rod.

**C

hem

ical

sFe

rtili

zers

Med

ical

& P

harm

. Pr

odSo

ap &

Pol

ish

Rub

ber P

rod.

Pape

r & P

aper

M

anfc

.

1979

/80

72,2

511,

161

10,7

4524

4,97

394

,411

113,

242

81,4

5868

,816

14,3

1835

,221

22,7

6219

80/8

188

,901

2,47

015

,860

287,

469

57,8

5385

,478

3,96

340

,901

18,9

4138

,531

33,3

5219

81/8

213

5,53

41,

446

21,8

5332

9,32

232

,131

89,4

5316

,211

48,1

6326

,521

44,4

3024

,946

1982

/83

174,

476

1,66

317

,017

360,

414

36,5

7813

6,63

628

,969

38,9

1824

,246

35,7

1916

,886

1983

/84

168,

465

6,44

913

,382

325,

649

52,7

3910

7,21

226

,272

51,6

1515

,666

38,9

7626

,071

1984

/85

345,

020

1,80

512

,827

281,

751

36,1

7476

,716

36,1

0341

,980

6,17

441

,477

11,7

6219

85/8

653

0,59

94,

962

2,83

522

0,26

132

,273

87,9

3544

,685

58,5

136,

683

45,5

6934

,944

1986

/87

320,

380

6,15

76,

261

163,

341

62,4

8311

5,16

629

,929

68,6

3810

,572

60,0

1823

,909

1987

/88

246,

454

7,85

811

,788

181,

842

34,7

2811

0,72

972

,521

50,2

8010

,804

51,1

0629

,796

1988

/89

294,

652

21,8

7756

017

5,33

937

,512

142,

131

69,8

4658

,440

9,07

946

,798

28,0

9419

89/9

010

6,32

025

,972

6,43

218

8,58

136

,500

124,

181

71,8

9364

,550

19,3

7433

,342

39,8

4019

90/9

126

3,35

016

,163

3,56

418

5,37

625

,050

85,0

7279

,548

36,3

0526

,013

41,8

6727

,775

1991

/92

14,4

026,

291

1,10

592

,246

100,

907

42,5

8015

048

,294

14,4

3335

,740

11,7

6019

92/9

349

7,53

620

,867

4,84

544

4,28

237

6,80

813

5,26

913

,106

131,

578

37,4

9073

,278

30,5

6519

93/9

457

4,09

48,

581

20,2

7140

6,53

133

1,03

622

8,15

589

,678

187,

200

58,5

2215

6,58

561

,251

1994

/95

906,

743

13,3

0510

,580

522,

564

471,

350

179,

614

343,

947

193,

305

30,8

1818

4,84

353

,780

1995

/96

575,

263

21,2

107,

241

445,

953

485,

912

161,

265

330,

578

165,

785

64,0

2327

9,45

381

,700

1996

/97

37,2

228,

590

9376

,900

1,42

7,20

047

,021

173,

813

77,3

1755

,593

188,

170

78,3

5119

97/9

872

,853

35,5

8318

,402

166,

469

2,09

9,04

699

,001

51,2

2414

2,16

381

,408

274,

938

169,

841

1998

/99

558,

422

37,4

0526

,393

2,28

11,

306,

707

142,

008

377,

582

315,

940

100,

718

345,

274

199,

440

1999

/00

766,

560

34,6

4727

,129

312,

012,

189

140,

912

336,

379

246,

179

92,1

0527

3,42

916

3,92

420

00/0

164

1,59

734

,628

28,5

610

2,15

1,32

615

3,78

212

6,86

029

3,78

414

0,23

640

8,83

821

7,05

020

01/0

21,

365,

581

35,8

8648

,550

02,

202,

554

145,

066

560,

257

358,

994

128,

513

340,

956

269,

684

2002

/03

1,69

7,56

633

,509

35,6

140

2,46

3,91

716

5,90

246

2,66

235

2,19

314

5,20

737

6,78

721

8,15

220

03/0

41,

981,

297

36,9

3737

,348

02,

608,

285

201,

668

923,

523

636,

324

173,

378

417,

410

329,

915

2004

/05

1,56

6,09

352

,090

52,0

340

5,73

6,66

625

0,95

11,

055,

294

671,

524

240,

863

536,

827

434,

417

2005

/06

2,13

9,77

945

,715

77,8

600

7,42

2,80

734

8,26

41,

180,

768

1,21

2,65

533

7,44

573

0,11

351

7,37

420

06/0

71,

799,

700

68,2

0474

,841

07,

524,

664

399,

852

933,

867

1,41

0,84

432

8,11

683

8,14

556

5,48

320

07/0

82,

499,

134

97,0

8011

5,64

20

15,0

76,1

2348

8,53

92,

828,

101

1,84

8,36

337

7,28

21,

030,

557

770,

591

2008

/09

7,25

1,05

389

,171

104,

398

017

,219

,182

677,

521

3,00

8,35

52,

771,

689

552,

503

1,42

2,15

581

9,63

920

09/1

07,

713,

047

142,

346

177,

543

018

,891

,592

888,

064

3,22

1,93

23,

936,

222

530,

093

2,22

0,33

71,

188,

178

2010

/11

3,96

6,14

916

7,35

423

0,68

20

22,2

99,8

841,

118,

884

5,66

5,26

95,

054,

381

685,

949

2,51

5,03

91,

137,

791

2011

/12

12,6

92,3

9120

6,51

427

0,21

00

35,8

68,5

831,

357,

151

10,5

03,4

306,

488,

435

1,12

8,54

93,

373,

729

1,84

3,94

820

12/1

311

,635

,650

261,

691

193,

101

026

,565

,255

2,09

2,40

25,

332,

244

7,16

9,25

390

7,44

24,

030,

338

2,06

4,09

520

13/1

49,

165,

826

533,

829

91,4

4118

47,6

19,8

703,

647,

031

7,80

8,48

42,

389,

297

2,18

6,49

35,

858,

244

1,99

2,58

020

14/1

513

,155

,398

570,

045

94,7

7620

039

,822

,539

3,75

1,99

58,

641,

772

2,56

8,98

72,

186,

737

5,97

9,66

82,

062,

833

2015

/16

24,5

92,8

8874

6,32

315

3,59

510

927

,005

,493

3,61

6,70

510

,491

,320

2,53

1,73

42,

694,

456

6,35

0,62

22,

525,

557

2016

/17

14,8

30,9

8169

9,40

012

2,28

63,

729

39,1

43,2

803,

323,

962

12,2

79,0

842,

091,

492

3,09

0,00

16,

708,

574

2,45

7,18

620

17/1

822

,346

,613

843,

503

107,

047

1,79

558

,613

,987

4,27

7,09

212

,361

,827

1,49

5,99

73,

299,

739

6,43

8,70

72,

180,

534

Ann

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NATIONAL BANK OF ETHIOPIAPe

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1979

/80

57,3

676,

832

5,55

910

4,16

220

2,23

113

5,78

944

,976

40,1

7913

,346

103,

238

1,43

2,85

819

80/8

159

,820

4,31

57,

480

100,

111

213,

390

165,

328

35,1

3744

,374

20,1

1410

4,82

01,

384,

234

1981

/82

71,5

386,

077

3,46

476

,848

227,

599

259,

372

43,6

1376

,919

29,1

8615

3,95

41,

641,

661

1982

/83

55,2

135,

557

4,98

614

5,94

623

4,44

016

4,76

581

,786

118,

846

19,7

6516

8,96

51,

752,

945

1983

/84

58,6

433,

810

6,56

316

2,90

151

9,77

021

0,62

197

,873

114,

595

23,2

0414

9,12

42,

065,

005

1984

/85

69,0

417,

709

4,19

514

3,37

822

5,13

217

9,58

956

,143

257,

865

30,4

1916

3,03

81,

770,

433

1985

/86

79,1

863,

476

3,69

016

6,87

827

4,69

928

7,13

476

,691

382,

447

45,7

5419

4,49

82,

201,

265

1986

/87

58,4

794,

558

5,74

215

6,40

632

7,65

933

9,32

410

2,47

228

0,29

674

,507

301,

145

2,23

6,94

619

87/8

869

,510

2,67

34,

563

174,

624

465,

211

369,

944

81,2

2017

7,56

688

,323

210,

677

2,27

4,65

119

88/8

962

,156

8,31

92,

761

172,

831

335,

284

279,

220

83,7

0522

8,63

359

,141

222,

608

2,11

0,35

319

89/9

055

,404

2,74

26,

937

212,

696

304,

650

189,

288

101,

802

72,8

8249

,759

183,

856

1,82

4,11

919

90/9

144

,920

14,4

885,

180

153,

769

562,

457

249,

844

58,8

8920

2,10

648

,189

202,

486

2,13

0,30

519

91/9

273

,571

14,7

053,

517

49,4

8718

9,54

417

7,20

342

,756

1,01

932

,882

859,

324

1,81

0,89

719

92/9

313

0,40

915

,514

9,03

517

2,05

869

9,42

040

2,40

397

,670

418,

157

47,6

6927

8,91

53,

618,

718

1993

/94

186,

946

34,1

1714

,809

496,

052

367,

949

825,

890

192,

150

483,

624

25,5

6247

4,58

94,

739,

967

1994

/95

229,

950

54,0

3324

,368

563,

219

710,

882

1,01

5,95

128

6,19

358

6,76

020

,677

730,

150

6,54

6,27

419

95/9

630

8,06

576

,391

32,9

4470

9,98

585

4,15

51,

393,

422

328,

577

506,

124

51,4

001,

334,

922

7,70

8,24

619

96/9

741

4,16

269

,542

40,7

8997

3,89

71,

414,

978

1,11

7,48

063

6,72

88,

328

17,1

081,

837,

538

8,50

5,20

019

97/9

839

6,75

711

4,86

641

,452

969,

100

1,09

9,41

779

5,97

877

6,49

218

,160

14,9

501,

918,

519

9,33

8,45

919

98/9

947

3,80

423

0,89

769

,704

1,41

6,81

71,

375,

843

1,39

0,94

61,

032,

004

340,

647

42,3

052,

257,

512

11,7

02,0

0419

99/0

043

3,13

427

9,88

558

,403

919,

528

1,35

1,51

21,

548,

459

938,

299

646,

316

32,6

561,

783,

302

11,4

38,6

6120

00/0

146

1,18

834

5,43

388

,056

1,18

8,97

11,

480,

393

1,45

6,28

578

2,01

846

1,33

566

,419

2,24

8,53

112

,313

,956

2001

/02

471,

499

467,

110

72,7

871,

359,

231

1,66

7,77

41,

435,

245

893,

039

1,24

6,11

910

1,45

63,

364,

964

14,4

85,2

8920

02/0

359

9,60

447

8,03

978

,075

1,31

1,50

41,

963,

002

1,81

7,63

01,

059,

754

1,58

0,97

311

1,63

42,

696,

596

16,0

67,3

4820

03/0

460

6,29

560

1,94

910

4,36

22,

012,

945

2,39

7,18

32,

124,

501

2,44

7,54

01,

573,

618

502,

494

4,15

2,33

322

,295

,690

2004

/05

774,

285

836,

015

125,

294

3,47

6,76

84,

553,

244

2,81

1,97

23,

062,

726

1,33

4,77

834

4,10

84,

853,

003

31,4

34,1

7420

05/0

61,

065,

381

1,29

1,28

714

5,04

84,

157,

675

5,30

5,51

64,

183,

804

2,97

8,79

31,

621,

232

365,

874

6,36

6,91

939

,873

,075

2006

/07

808,

907

1,52

3,05

116

3,83

44,

460,

322

7,03

6,85

46,

062,

546

2,96

8,70

11,

323,

878

329,

270

7,82

9,23

845

,126

,438

2007

/08

986,

145

1,19

8,03

724

3,66

77,

051,

109

7,11

8,46

94,

279,

547

4,40

4,96

71,

902,

765

243,

818

12,4

89,7

7463

,146

,946

2008

/09

1,02

3,98

31,

124,

962

235,

344

7,99

0,30

38,

713,

241

4,85

9,88

85,

866,

530

6,28

5,85

751

,369

20,8

95,9

0584

,677

,193

2009

/10

1,47

6,23

62,

433,

694

267,

320

11,6

18,0

0212

,278

,627

8,50

3,49

37,

728,

010

6,19

0,93

310

2,03

625

,639

,499

108,

956,

272

2010

/11

1,98

2,71

72,

430,

231

334,

932

10,7

78,3

6716

,015

,252

13,1

80,6

037,

195,

551

2,73

9,63

273

,258

34,8

61,0

6912

9,69

3,36

220

11/1

22,

892,

344

4,21

8,31

052

2,02

419

,678

,247

20,5

29,0

2317

,831

,730

8,69

6,84

510

,436

,910

80,0

3843

,405

,637

191,

587,

139

2012

/13

2,74

4,22

44,

449,

522

722,

828

21,6

88,4

8028

,035

,377

20,4

93,2

7311

,912

,689

9,86

5,21

596

,583

46,4

76,5

7119

6,87

1,01

6'2

013/

144,

622,

749

5,44

2,43

61,

942,

407

29,9

39,4

4536

,774

,861

23,8

20,1

8622

,735

,293

5,60

3,59

934

9,55

154

,917

,318

261,

837,

358

2014

/15

5,81

9,13

06,

802,

500

2,47

7,28

145

,631

,138

45,7

07,2

6431

,471

,855

43,2

51,5

362,

971,

791

1,48

9,17

269

,309

,407

330,

794,

233

2015

/16

5,66

9,24

17,

990,

759

2,73

1,96

646

,750

,241

58,1

30,9

7233

,759

,296

37,4

16,2

253,

617,

393

1,21

2,16

378

,644

,190

353,

013,

856

2016

/17

5,41

6,69

28,

529,

700

3,37

6,82

241

,572

,482

56,9

81,5

9533

,498

,960

30,0

86,0

523,

847,

407

7,73

0,64

582

,328

,213

354,

271,

135

2017

/18

5,03

9,34

09,

639,

953

3,15

9,82

837

,072

,741

65,7

46,0

2727

,957

,776

28,2

22,6

315,

975,

107

428,

242

107,

882,

087

397,

115,

468

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sFe

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& P

harm

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Pol

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Rub

ber P

rod.

1979

/80

128,

453.

0

38

9.0

89

6.0

67

1,24

5.0

94,6

52.0

33

,264

.0

125,

845.

0

1,

580.

0

9,

753.

0

6,

871.

0

1980

/81

124,

219.

0

47

8.0

1,

443.

0

69

0,48

2.0

56,6

02.0

34

,286

.0

6,84

5.0

2,84

9.0

11,7

64.0

6,

724.

0

1981

/82

178,

264.

0

66

1.0

1,

033.

0

71

3,23

6.0

18,4

09.0

3,

572.

0

29

,393

.0

2,88

7.0

17,2

83.0

8,

567.

0

1982

/83

259,

465.

0

39

3.0

1,

032.

0

77

8,89

8.0

20,7

96.0

40

,440

.0

41,6

51.0

1,

796.

0

15

,253

.0

7,71

2.0

1983

/84

289,

533.

0

1,

035.

0

1,

104.

0

78

5,15

8.0

55,1

68.0

47

,274

.0

36,0

78.0

2,

829.

0

8,

378.

0

9,

170.

0

1984

/85

601,

897.

0

42

9.0

88

6.0

71

8,82

7.0

19,6

15.0

38

,060

.0

72,8

28.0

2,

736.

0

4,

240.

0

8,

899.

0

1985

/86

846,

775.

0

1,

077.

0

11

7.0

72

7,53

1.0

16,1

76.0

43

,618

.0

108,

079.

0

3,

925.

0

5,

314.

0

15

,244

.0

1986

/87

599,

912.

0

1,

074.

0

60

4.0

81

3,55

4.0

20,4

63.0

45

,782

.0

39,2

17.0

4,

326.

0

17

,705

.0

11,3

30.0

1987

/88

565,

624.

0

92

0.0

2,

389.

0

73

,226

.0

19,0

07.0

41

,520

.0

152,

777.

0

3,

784.

0

13

,093

.0

10,3

25.0

1988

/89

551,

147.

0

50

7.0

19

.0

76

9,43

8.0

20,5

10.0

39

,050

.0

112,

897.

0

5,

888.

0

5,

438.

0

9,

157.

0

1989

/90

128,

060.

0

2,

058.

0

1,

167.

0

77

6,30

7.0

34,6

04.0

46

,591

.0

131,

988.

0

5,

352.

0

16

,685

.0

5,72

5.0

1990

/91

401,

515.

0

1,

720.

1

77

9.6

49

4,08

1.0

12,7

24.0

27

,984

.0

91,9

66.0

11

,647

.0

19,1

85.0

6,

484.

0

1991

/92

12,8

28.0

38

8.3

76

.3

30

2,58

3.0

146,

439.

0

8,

782.

0

12

5.0

1,

946.

0

14

,713

.0

4,36

7.0

1992

/93

440,

582.

2

61

0.5

25

6.3

74

0,04

3.1

332,

905.

0

22

,856

.8

10,3

08.4

2,

587.

2

20

,773

.6

6,88

8.9

1993

/94

411,

187.

6

31

2.4

1,

145.

8

68

8,34

3.9

276,

575.

7

34

,665

.9

100,

566.

2

2,

760.

2

18

,365

.7

8,04

7.4

1994

/95

622,

468.

5

47

8.7

69

6.0

67

4,31

2.5

471,

183.

5

22

,459

.1

218,

133.

1

4,

037.

9

9,

498.

4

10

,009

.4

1995

/96

322,

279.

3

1,

589.

7

48

9.6

41

7,10

0.0

333,

631.

8

33

,876

.5

115,

377.

2

2,

109.

7

17

,644

.6

14,3

74.7

1996

/97

13,0

68.9

1,

175.

9

23

2.7

34

,924

.2

914,

285.

0

15

,796

.1

101,

305.

4

3,

662.

9

30

,290

.4

23,0

98.5

1997

/98

30,8

35.0

1,

666.

7

35

0.6

15

9,81

6.5

1,85

7,64

7.0

16

,769

.7

36,2

25.9

2,

167.

7

18

,148

.7

14,7

99.5

1998

/99

225,

025.

9

3,

170.

5

69

3.2

3,

006.

8

1,

064,

451.

0

121,

440.

1

17

5,44

2.2

6,26

0.4

23,9

58.4

15

,148

.1

1999

/00

391,

278.

7

2,

618.

3

93

3.1

-

1,09

4,88

3.2

34

,236

.7

233,

847.

8

3,

125.

8

18

,317

.2

53,4

66.7

2000

/01

420,

439.

3

1,

746.

6

1,

006.

0

-

950,

043.

7

30

,294

.1

79,5

24.9

2,

820.

2

28

,859

.6

22,3

98.6

2001

/02

738,

091.

7

1,

079.

4

1,

784.

2

-

944,

921.

6

18

,907

.8

302,

409.

4

4,

136.

9

25

,648

.9

17,5

83.4

2002

/03

645,

141.

6

1,

252.

6

72

4.4

-

1,46

0,96

0.0

19

,577

.6

252,

258.

6

3,

502.

5

27

,847

.2

18,3

95.7

2003

/04

691,

588.

7

1,

433.

2

73

8.4

-

1,03

3,73

8.3

23

,114

.6

382,

673.

3

8,

119.

1

33

,670

.2

21,2

53.7

2004

/05

576,

638.

2

1,

806.

5

91

9.7

-

1,82

3,33

5.6

29

,232

.2

352,

064.

6

4,

580.

7

42

,352

.6

26,6

37.1

2005

/06

819,

011.

5

1,

306.

9

2,

045.

4

-

1,22

9,07

7.8

46

,714

.6

396,

794.

8

6,

993.

8

59

,404

.1

72,2

11.5

2006

/07

597,

407.

9

2,

222.

9

1,

565.

8

-

1,45

4,12

1.6

42

,222

.5

272,

802.

8

7,

010.

7

49

,042

.3

31,2

56.4

2007

/08

506,

952.

6

2,

608.

9

2,

749.

1

-

1,61

9,43

0.5

47

,665

.6

479,

485.

9

7,

959.

6

43

,334

.9

32,4

50.0

2008

/09

1,83

4,39

8.8

2,

024.

2

1,

767.

6

-

1,40

4,12

2.1

53

,302

.7

528,

635.

4

11

,796

.6

51,9

38.2

37

,305

.6

2009

/10

1,78

1,54

6.2

2,

415.

7

2,

659.

8

-

2,36

5,70

7.0

73

,106

.4

615,

917.

4

9,

746.

8

38

,977

.5

49,5

83.9

2010

/11

547,

512.

7

2,

308.

8

2,

228.

5

-

1,79

5,01

8.8

56

,496

.0

622,

239.

2

15

,022

.9

34,3

81.8

37

,465

.4

2011

/12

1,81

8,23

9.2

3,

380.

2

2,

114.

6

-

2,16

0,45

5.6

65

,088

.8

907,

129.

9

15

,442

.9

52,9

56.6

38

,732

.2

2012

/13

1,10

5,09

9.7

13

,902

.5

7,11

5.5

7,38

4.2

1,50

6,40

2.8

92

,926

.1

402,

556.

6

23

,612

.5

162,

562.

4

32

,775

.3

2013

/14

1,09

8,31

6.9

15

,727

.9

1,25

8.8

0.3

2,62

3,45

0.8

18

3,43

9.5

11,7

65.6

92

4.0

43

,511

.0

84,3

86.5

2014

/15

1,55

6,75

5.8

19

,058

.0

1,14

8.3

7.4

2,82

2,05

8.9

18

2,04

3.5

13,8

04.2

95

0.6

51

,552

.3

87,6

19.2

2015

/16

3,16

2,93

2.8

22

,234

.2

1,71

9.1

1.3

3,04

3,56

1.0

18

5,47

7.7

14,1

55.6

1,

280.

9

66

,325

.2

242,

399.

6

2016

/17

1,86

3,06

8.2

25

,010

.1

1,44

0.2

2.6

3,44

5,45

6.0

17

4,37

3.4

23,8

00.8

84

2.3

62

,997

.9

106,

916.

3

`201

7/18

2,21

7,51

0.2

26

,551

.5

1,20

2.6

50.9

3,77

0,58

8.9

18

3,26

5.1

15,4

21.0

1,

105.

1

84

,336

.7

124,

577.

2

(in m

etric

tone

s)

245


nnex

12

: Vol

ume

of M

ajor

Impo

rts

Toba

cco

Petr

oleu

m C

rude

Petr

oleu

m

Prod

.**C

hem

ical

sFe

rtili

zers

Med

ical

& P

harm

. Pr

odSo

ap &

Pol

ish

Rub

ber P

rod.

1979

/80

128,

453.

0

38

9.0

89

6.0

67

1,24

5.0

94,6

52.0

33

,264

.0

125,

845.

0

1,

580.

0

9,

753.

0

6,

871.

0

1980

/81

124,

219.

0

47

8.0

1,

443.

0

69

0,48

2.0

56,6

02.0

34

,286

.0

6,84

5.0

2,84

9.0

11,7

64.0

6,

724.

0

1981

/82

178,

264.

0

66

1.0

1,

033.

0

71

3,23

6.0

18,4

09.0

3,

572.

0

29

,393

.0

2,88

7.0

17,2

83.0

8,

567.

0

1982

/83

259,

465.

0

39

3.0

1,

032.

0

77

8,89

8.0

20,7

96.0

40

,440

.0

41,6

51.0

1,

796.

0

15

,253

.0

7,71

2.0

1983

/84

289,

533.

0

1,

035.

0

1,

104.

0

78

5,15

8.0

55,1

68.0

47

,274

.0

36,0

78.0

2,

829.

0

8,

378.

0

9,

170.

0

1984

/85

601,

897.

0

42

9.0

88

6.0

71

8,82

7.0

19,6

15.0

38

,060

.0

72,8

28.0

2,

736.

0

4,

240.

0

8,

899.

0

1985

/86

846,

775.

0

1,

077.

0

11

7.0

72

7,53

1.0

16,1

76.0

43

,618

.0

108,

079.

0

3,

925.

0

5,

314.

0

15

,244

.0

1986

/87

599,

912.

0

1,

074.

0

60

4.0

81

3,55

4.0

20,4

63.0

45

,782

.0

39,2

17.0

4,

326.

0

17

,705

.0

11,3

30.0

1987

/88

565,

624.

0

92

0.0

2,

389.

0

73

,226

.0

19,0

07.0

41

,520

.0

152,

777.

0

3,

784.

0

13

,093

.0

10,3

25.0

1988

/89

551,

147.

0

50

7.0

19

.0

76

9,43

8.0

20,5

10.0

39

,050

.0

112,

897.

0

5,

888.

0

5,

438.

0

9,

157.

0

1989

/90

128,

060.

0

2,

058.

0

1,

167.

0

77

6,30

7.0

34,6

04.0

46

,591

.0

131,

988.

0

5,

352.

0

16

,685

.0

5,72

5.0

1990

/91

401,

515.

0

1,

720.

1

77

9.6

49

4,08

1.0

12,7

24.0

27

,984

.0

91,9

66.0

11

,647

.0

19,1

85.0

6,

484.

0

1991

/92

12,8

28.0

38

8.3

76

.3

30

2,58

3.0

146,

439.

0

8,

782.

0

12

5.0

1,

946.

0

14

,713

.0

4,36

7.0

1992

/93

440,

582.

2

61

0.5

25

6.3

74

0,04

3.1

332,

905.

0

22

,856

.8

10,3

08.4

2,

587.

2

20

,773

.6

6,88

8.9

1993

/94

411,

187.

6

31

2.4

1,

145.

8

68

8,34

3.9

276,

575.

7

34

,665

.9

100,

566.

2

2,

760.

2

18

,365

.7

8,04

7.4

1994

/95

622,

468.

5

47

8.7

69

6.0

67

4,31

2.5

471,

183.

5

22

,459

.1

218,

133.

1

4,

037.

9

9,

498.

4

10

,009

.4

1995

/96

322,

279.

3

1,

589.

7

48

9.6

41

7,10

0.0

333,

631.

8

33

,876

.5

115,

377.

2

2,

109.

7

17

,644

.6

14,3

74.7

1996

/97

13,0

68.9

1,

175.

9

23

2.7

34

,924

.2

914,

285.

0

15

,796

.1

101,

305.

4

3,

662.

9

30

,290

.4

23,0

98.5

1997

/98

30,8

35.0

1,

666.

7

35

0.6

15

9,81

6.5

1,85

7,64

7.0

16

,769

.7

36,2

25.9

2,

167.

7

18

,148

.7

14,7

99.5

1998

/99

225,

025.

9

3,

170.

5

69

3.2

3,

006.

8

1,

064,

451.

0

121,

440.

1

17

5,44

2.2

6,26

0.4

23,9

58.4

15

,148

.1

1999

/00

391,

278.

7

2,

618.

3

93

3.1

-

1,09

4,88

3.2

34

,236

.7

233,

847.

8

3,

125.

8

18

,317

.2

53,4

66.7

2000

/01

420,

439.

3

1,

746.

6

1,

006.

0

-

950,

043.

7

30

,294

.1

79,5

24.9

2,

820.

2

28

,859

.6

22,3

98.6

2001

/02

738,

091.

7

1,

079.

4

1,

784.

2

-

944,

921.

6

18

,907

.8

302,

409.

4

4,

136.

9

25

,648

.9

17,5

83.4

2002

/03

645,

141.

6

1,

252.

6

72

4.4

-

1,46

0,96

0.0

19

,577

.6

252,

258.

6

3,

502.

5

27

,847

.2

18,3

95.7

2003

/04

691,

588.

7

1,

433.

2

73

8.4

-

1,03

3,73

8.3

23

,114

.6

382,

673.

3

8,

119.

1

33

,670

.2

21,2

53.7

2004

/05

576,

638.

2

1,

806.

5

91

9.7

-

1,82

3,33

5.6

29

,232

.2

352,

064.

6

4,

580.

7

42

,352

.6

26,6

37.1

2005

/06

819,

011.

5

1,

306.

9

2,

045.

4

-

1,22

9,07

7.8

46

,714

.6

396,

794.

8

6,

993.

8

59

,404

.1

72,2

11.5

2006

/07

597,

407.

9

2,

222.

9

1,

565.

8

-

1,45

4,12

1.6

42

,222

.5

272,

802.

8

7,

010.

7

49

,042

.3

31,2

56.4

2007

/08

506,

952.

6

2,

608.

9

2,

749.

1

-

1,61

9,43

0.5

47

,665

.6

479,

485.

9

7,

959.

6

43

,334

.9

32,4

50.0

2008

/09

1,83

4,39

8.8

2,

024.

2

1,

767.

6

-

1,40

4,12

2.1

53

,302

.7

528,

635.

4

11

,796

.6

51,9

38.2

37

,305

.6

2009

/10

1,78

1,54

6.2

2,

415.

7

2,

659.

8

-

2,36

5,70

7.0

73

,106

.4

615,

917.

4

9,

746.

8

38

,977

.5

49,5

83.9

2010

/11

547,

512.

7

2,

308.

8

2,

228.

5

-

1,79

5,01

8.8

56

,496

.0

622,

239.

2

15

,022

.9

34,3

81.8

37

,465

.4

2011

/12

1,81

8,23

9.2

3,

380.

2

2,

114.

6

-

2,16

0,45

5.6

65

,088

.8

907,

129.

9

15

,442

.9

52,9

56.6

38

,732

.2

2012

/13

1,10

5,09

9.7

13

,902

.5

7,11

5.5

7,38

4.2

1,50

6,40

2.8

92

,926

.1

402,

556.

6

23

,612

.5

162,

562.

4

32

,775

.3

2013

/14

1,09

8,31

6.9

15

,727

.9

1,25

8.8

0.3

2,62

3,45

0.8

18

3,43

9.5

11,7

65.6

92

4.0

43

,511

.0

84,3

86.5

2014

/15

1,55

6,75

5.8

19

,058

.0

1,14

8.3

7.4

2,82

2,05

8.9

18

2,04

3.5

13,8

04.2

95

0.6

51

,552

.3

87,6

19.2

2015

/16

3,16

2,93

2.8

22

,234

.2

1,71

9.1

1.3

3,04

3,56

1.0

18

5,47

7.7

14,1

55.6

1,

280.

9

66

,325

.2

242,

399.

6

2016

/17

1,86

3,06

8.2

25

,010

.1

1,44

0.2

2.6

3,44

5,45

6.0

17

4,37

3.4

23,8

00.8

84

2.3

62

,997

.9

106,

916.

3

`201

7/18

2,21

7,51

0.2

26

,551

.5

1,20

2.6

50.9

3,77

0,58

8.9

18

3,26

5.1

15,4

21.0

1,

105.

1

84

,336

.7

124,

577.

2

(in m

etric

tone

s)



nnex

12

cont

inue

d……

….

Perio

dPa

per &

Pap

er

Man

fc.

Text

iles

Clo

thin

gsG

lass

& G

lass

W

are

Met

al &

Met

al

Man

fc.

Mac

hine

ry &

A

ircra

ftR

oad

Mot

or

Vehi

cles

Elec

tric

al

Mat

eria

lsG

rain

*Te

leco

mm

. A

ppar

a.19

79/8

012

,246

.0

18,0

44.0

36

6.0

3,

500.

0

57

,045

.0

21,9

34.0

14

,287

.0

5,39

1.0

106,

331.

0

372.

0

1980

/81

13,7

19.0

14

,799

.0

135.

0

4,25

0.0

55,1

22.0

16

,115

.0

14,6

67.0

4,

514.

0

64

,044

.0

666.

0

1981

/82

12,9

35.0

22

,466

.0

270.

0

1,19

1.0

38,6

74.0

19

,094

.0

19,4

97.0

4,

625.

0

15

4,47

7.0

54

1.0

1982

/83

7,26

2.0

19,4

67.0

11

1.0

3,

589.

0

84

,345

.0

10,8

51.0

24

,867

.0

7,96

1.0

241,

059.

0

321.

0

1983

/84

13,7

61.0

25

,754

.0

126.

0

6,97

9.0

81,3

60.0

22

,894

.0

23,2

01.0

13

,146

.0

264,

712.

0

741.

0

1984

/85

21,8

15.0

31

3,85

5.0

25

7.0

2,

630.

0

84

,583

.0

21,1

64.0

18

,115

.0

6,77

1.0

537,

737.

0

531.

0

1985

/86

19,4

06.0

20

,797

.0

143.

0

2,42

8.0

72,3

48.0

33

,926

.0

31,9

83.0

9,

367.

0

70

4,05

9.0

46

6.0

1986

/87

11,5

17.0

14

,672

.0

66.0

2,30

2.0

81,0

54.0

25

,108

.0

29,8

53.0

20

,273

.0

551,

880.

0

2,72

4.0

1987

/88

13,1

86.0

20

,299

.0

145.

0

1,87

6.0

77,7

31.0

24

,219

.0

48,1

71.0

10

,759

.0

448,

158.

0

1,12

8.0

1988

/89

11,3

59.0

36

,867

.0

299.

0

970.

0

77,3

24.0

13

,937

.0

16,8

67.0

8,

136.

0

42

3,20

4.0

2,

191.

0

1989

/90

13,8

65.0

10

,332

.0

90.0

2,82

2.0

82,2

29.0

15

,469

.0

11,4

90.0

12

,983

.0

118,

560.

0

1,54

7.0

1990

/91

9,90

6.0

6,12

6.0

299.

2

2,47

5.0

45,9

54.0

11

,887

.0

21,2

24.0

6,

017.

0

37

4,11

4.0

1,

399.

0

1991

/92

3,92

4.0

7,85

4.0

424.

0

472.

0

17,1

75.0

2,

951.

0

15

,188

.0

3,68

5.0

1,94

7.9

449.

0

1992

/93

7,78

1.5

17,5

77.9

31

7.6

2,

446.

8

43

,720

.9

7,24

8.5

32,3

94.1

6,

632.

2

42

1,49

6.9

7,

225.

4

1993

/94

10,0

62.4

12

,709

.9

1,07

3.4

2,11

0.6

113,

445.

5

8,54

2.6

32,3

62.4

9,

448.

6

38

2,63

2.5

31

0.2

1994

/95

6,26

4.8

17,5

05.4

1,

581.

9

2,

039.

5

11

6,91

9.2

28

,712

.2

32,4

97.8

83

,301

.9

590,

328.

1

82.4

1995

/96

7,83

5.1

16,5

01.0

4,

808.

1

5,

878.

8

11

9,76

2.0

42

,304

.6

41,1

88.0

12

,487

.6

313,

282.

0

96.4

1996

/97

22,8

07.0

42

,304

.8

7,50

0.8

6,32

7.6

194,

750.

1

24,3

58.1

38

,937

.0

46,9

50.6

4,

019.

3

13

1.1

1997

/98

20,3

12.6

26

,681

.1

4,68

5.1

6,17

0.6

163,

616.

8

24,1

15.4

20

,482

.3

20,5

25.1

22

,928

.5

104.

6

1998

/99

160,

611.

8

39,0

73.2

6,

886.

9

10

,194

.2

217,

971.

0

28,5

91.4

73

,864

.5

36,8

30.9

21

9,04

4.0

47

0.0

1999

/00

413,

422.

2

71,0

01.9

10

,177

.6

10,4

86.0

19

8,76

1.7

28

,817

.5

80,2

19.1

21

,369

.7

360,

118.

1

1,23

2.4

2000

/01

100,

301.

6

20,6

80.2

20

,562

.4

15,2

54.5

26

1,84

3.0

26

,964

.1

91,7

84.3

24

,421

.1

360,

317.

7

20,5

88.3

2001

/02

32,2

16.0

26

,630

.1

19,3

61.3

11

,900

.4

273,

464.

6

23,9

62.2

47

,917

.1

25,2

06.4

69

3,51

4.9

32

9.9

2002

/03

35,9

25.8

33

,900

.4

18,2

25.4

13

,799

.4

256,

989.

9

29,5

72.1

34

,348

.0

29,3

28.9

62

0,99

9.6

71

6.3

2003

/04

46,0

47.8

40

,618

.7

30,8

37.4

20

,092

.7

293,

701.

2

38,6

53.1

41

,688

.9

54,9

20.2

62

8,81

1.6

3,

327.

3

2004

/05

53,7

90.6

90

,527

.2

27,1

49.6

22

,345

.8

539,

108.

0

53,6

41.5

47

,555

.0

58,5

71.1

53

5,23

7.2

89

,892

.7

2005

/06

66,2

35.9

53

,927

.3

36,1

03.9

27

,558

.3

578,

956.

7

77,9

15.9

1,

130,

445.

5

83

,658

.3

715,

902.

1

6,06

5.5

2006

/07

67,7

29.3

38

,935

.4

33,6

17.9

29

,546

.8

795,

736.

4

101,

880.

8

114,

151.

2

64,4

90.1

50

7,19

9.0

6,

161.

8

2007

/08

78,4

19.8

41

,135

.5

30,4

73.6

38

,345

.1

732,

819.

0

103,

879.

9

73,5

45.7

64

,580

.6

433,

009.

5

4,25

1.1

2008

/09

90,5

04.2

36

,349

.3

24,2

78.1

33

,469

.0

641,

508.

0

108,

046.

9

84,2

79.6

87

,896

.5

1,73

1,46

5.1

1,79

4.6

2009

/10

238,

737.

5

37,9

64.1

33

,454

.5

28,2

08.1

83

6,74

5.9

14

1,18

4.6

20

4,61

8.5

19

4,05

9.8

1,

567,

321.

8

1,

428.

2

2010

/11

57,4

52.1

38

,370

.2

31,6

69.4

25

,489

.8

772,

360.

7

231,

077.

7

133,

737.

9

64,1

56.8

43

8,13

7.4

1,

134.

6

2011

/12

89,2

05.8

46

,129

.4

37,7

96.9

45

,244

.9

904,

607.

4

151,

778.

3

241,

940.

5

76,9

74.4

1,

679,

919.

7

91

7.4

2012

/13

94,0

55.2

41

,858

.8

36,1

03.1

56

,403

.7

992,

746.

4

207,

980.

6

177,

514.

2

89,9

45.7

1,

252,

139.

3

1,

102.

4

2013

/14

113,

120.

3

66,3

13.0

41

,513

.8

188,

603.

6

1,39

2,82

8.4

367,

372.

0

186,

099.

4

173,

869.

1

735,

463.

4

533.

9

2014

/15

96,4

23.9

81

,769

.5

110,

349.

1

215,

500.

2

1,64

6,69

1.0

288,

534.

3

211,

528.

3

230,

648.

1

258,

852.

9

503.

6

2015

/16

120,

939.

2

535,

911.

0

511,

001.

1

1,45

0,21

8.2

11,2

90,9

87.4

2,

226,

215.

5

1,

435,

282.

4

1,

341,

928.

8

3,

281,

134.

3

3,

618.

7

2016

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122,

068.

3

105,

571.

3

51,9

37.5

33

2,15

2.8

1,

817,

012.

2

33

1,15

3.8

35

1,49

4.6

12

7,28

0.9

34

1,04

7.4

28

0.1

2017

/18

89,6

34.4

88

,081

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50,7

56.5

23

2,07

2.1

1,

381,

381.

2

25

5,91

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58,3

08.7

5

78

,166

.48

71,4

78.2

4

87

,549

.49

Cer

eals

53.6

5

492.

73

698.

15

647.

97

1,32

5.46

1,

623.

84

1,

776.

75

1,38

3.03

1,69

2.87

1,41

4.31

1,93

7.49

6,

473.

56

6,

670.

39

3,

176.

90

11,2

25.6

7

10

,222

.56

8,44

0.07

12,0

65.3

4

21

,856

.74

12,3

63.6

8

20

,043

.62

Oth

er F

ood

136.

93

26

1.36

24

9.84

26

6.83

45

4.87

36

4.85

54

2.17

75

5.24

1,

194.

32

86

2.44

1,

435.

79

2,01

3.68

2,75

0.02

3,97

3.27

6,

602.

99

6,

608.

10

7,

230.

47

8,

988.

00

13,2

52.2

7

13

,007

.05

16,2

54.1

4

Med

ical

& P

harm

aceu

tical

157.

29

36

0.94

27

8.31

36

8.83

42

1.32

41

8.51

78

7.77

73

8.65

1,

285.

86

1,

510.

42

1,

959.

45

2,94

9.03

4,15

3.35

5,34

4.08

6,

713.

27

7,

647.

19

10

,820

.18

11,8

23.4

4

13

,636

.15

15,0

28.1

9

14

,814

.52

Text

ile F

abric

s36

0.31

572.

86

589.

61

674.

19

817.

24

960.

68

1,19

8.28

1,

415.

04

1,

775.

78

1,

679.

85

1,

920.

04

2,01

0.20

2,96

6.25

3,79

1.31

5,

994.

13

2,

644.

61

8,

957.

03

11

,523

.90

13,0

56.1

3

12

,979

.33

14,7

97.7

6

Oth

ers

346.

53

45

0.19

55

1.97

67

1.06

68

8.39

67

1.94

87

5.36

1,

321.

48

1,

569.

83

1,

545.

33

2,

539.

97

4,20

1.04

4,83

8.70

6,62

0.73

11

,269

.93

11,4

53.9

0

12

,538

.12

13,9

08.0

7

16

,365

.19

18,0

99.9

8

21

,639

.45

MIS

CEL

LAN

EOU

S71

6.84

968.

66

271.

96

361.

78

365.

30

587.

35

368.

85

564.

78

855.

13

1,02

5.04

3,55

1.00

3,

348.

23

1,

517.

56

2,

112.

43

6,50

7.29

6,89

7.89

3,83

4.08

5,53

2.88

5,

240.

32

6,77

1.02

7,55

8.39

TOTA

L IM

POR

TS9,

337.

95

11,7

02.0

3

11,4

38.3

9

12,3

13.9

2

14,4

85.2

9

15,9

29.6

6

22,2

95.6

9

31,4

34.1

6

39,8

73.0

7

45,1

26.4

4

63,1

46.9

5

84,6

77.2

3

108,

956.

34

129,

693.

36

191,

587.

14

196,

871.

02

261,

837.

36

330,

794.

23

353,

013.

86

354,

271.

13

397,

115.

47

Sour

ce: E

thio

pian

Cus

tom

s Au

thor

ity.

Cat

agor

ies



nnex

14:

VA

LUE

OF

IMPO

RTS

, BY

CO

UN

TRY

OF

OR

IGIN

2000

/01

2001

/02

2002

/03

2003

/04

2004

/05

2005

/06

2006

/07

2007

/08

2008

/09

2009

/10

2010

/11

2011

/12

2012

/13

2013

/14

2014

/15

2015

/16

2016

/17

2017

/18

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Djib

outi

360,

275

386,

640

570,

584

490,

147

468,

910

726,

236

489,

067

248

745

613

1,46

44,

194

14,6

566,

060

13,7

6525

.554

.67,

505,

510.

7

Keny

a12

0,65

913

7,75

516

1,01

918

7,26

022

0,72

932

3,43

643

3,89

631

0,42

127

1,33

440

4,03

847

9,35

565

2,12

857

1,87

567

0,75

177

5,30

970

4,62

3.9

775,

026.

688

3,93

7,34

4.7

Suda

n35

812

,898

3,11

981

,067

433,

620

225,

298

440,

442

1,31

6,78

986

5,40

91,

280,

691

2,37

9,92

31,

899,

249

175,

036

3,37

2,55

62,

782,

296

885,

021.

32,

697,

548.

62,

500,

769,

954.

4

U.A

.E14

7,90

312

8,84

01,

094,

366

1,49

6,00

11,

902,

736

2,55

1,78

52,

366,

158

6,18

5,08

84,

590,

216

5,41

0,86

38,

814,

413

4,07

2,60

76,

225,

994

13,4

11,8

989,

493,

860

9,67

6,61

9.7

8,28

3,68

5.2

14,2

83,9

17,6

44.2

Fran

ce38

5,89

236

7,58

122

4,13

252

7,87

165

4,75

377

6,26

480

5,93

983

0,26

11,

274,

036

1,04

7,15

72,

140,

545

2,57

2,64

13,

382,

183

2,47

6,00

43,

416,

216

4,17

6,28

8.1

4,50

5,12

1.3

4,75

6,80

5,00

9.8

Ger

man

y63

2,43

076

5,59

869

0,60

283

6,19

41,

043,

711

1,49

7,59

41,

656,

840

2,07

4,08

51,

769,

858

2,48

6,24

22,

958,

633

3,13

0,18

03,

635,

738

6,64

7,65

16,

916,

081

7,84

9,77

3.2

5,71

1,67

1.2

7,25

6,00

6,09

7.5

Italy

999,

897

1,28

6,92

71,

091,

273

1,13

2,99

81,

334,

427

2,19

8,68

93,

474,

463

3,25

5,57

74,

828,

243

5,23

7,86

95,

782,

030

6,78

2,25

68,

869,

965

9,43

5,12

210

,188

,233

13,3

40,8

23.0

15,5

18,2

59.6

13,3

70,6

01,8

75.7

Net

herla

nds

264,

212

326,

961

423,

628

533,

744

461,

105

620,

995

619,

844

400,

232

696,

441

943,

605

1,47

1,11

41,

585,

694

1,71

2,57

73,

608,

203

5,31

1,88

14,

140,

318.

94,

540,

832.

56,

172,

113,

178.

5

U.K

.48

7,22

258

3,68

871

7,42

076

6,98

286

5,10

287

3,19

777

6,74

689

7,03

772

9,80

91,

117,

723

1,49

7,18

91,

769,

438

1,47

9,93

82,

785,

358

4,38

6,80

14,

277,

114.

53,

750,

299.

25,

981,

832,

674.

2

Rus

sia

129,

622

50,7

5221

5,93

121

8,45

537

3,24

828

6,00

543

4,16

996

5,36

11,

981,

096

1,29

0,52

136

8,45

66,

209,

616

397,

293

1,00

7,40

42,

402,

659

3,98

3,98

4.5

947,

736.

52,

472,

934,

366.

7

Yugo

slav

ia30

,470

3,60

41,

305

75,

427

1,15

48,

468

256

06,

819

9,45

549

08

550.

00.

31.

0

U.S

.A.

657,

940

1,39

1,54

295

9,43

32,

619,

019

3,31

7,96

53,

181,

562

1,69

8,91

32,

756,

286

3,51

0,08

26,

728,

159

4,39

4,32

97,

831,

544

7,08

2,27

613

,436

,708

15,0

43,7

7726

,691

,945

.022

,894

,078

.331

,244

,388

,194

.2

Chi

na, P

. Rep

.91

7,79

01,

215,

721

1,48

0,53

52,

302,

695

3,62

2,99

45,

007,

634

7,49

4,61

69,

861,

833

12,9

29,0

7919

,098

,742

20,2

03,7

6031

,790

,965

44,7

73,2

4772

,643

,511

126,

572,

346

117,

251,

124.

011

4,93

2,24

5.7

100,

864,

789,

067.

7

Japa

n65

1,13

451

2,63

11,

043,

226

1,01

3,95

71,

052,

279

1,28

1,16

42,

788,

275

3,06

7,24

63,

217,

408

5,42

0,11

37,

036,

611

7,91

4,13

68,

268,

087

11,4

21,0

0613

,244

,072

14,7

92,7

46.8

15,5

45,0

24.5

13,5

46,6

49,0

31.8

Saud

i Ara

bia

518,

779

1,97

0,02

11,

307,

811

1,87

6,41

05,

348,

311

7,33

5,35

26,

829,

549

8,32

0,01

812

,778

,050

13,8

34,1

4211

,630

,212

26,6

64,5

1420

,459

,836

21,2

29,8

3816

,717

,802

7,96

4,80

4.7

10,7

28,6

30.6

9,08

9,12

6,52

3.8

Res

t of t

he W

orld

6,66

3,11

85,

344,

129

5,94

5,09

18,

214,

884

10,3

29,0

5712

,983

,984

14,8

09,0

5422

,906

,209

35,2

35,3

8744

,648

,975

60,5

25,8

7388

,707

,927

89,8

22,3

1499

,685

,280

113,

529,

081

137,

278,

642.

614

1,62

3,35

4.0

184,

684,

091,

154.

6

Tota

l Im

port

12,9

67,7

0014

,485

,289

15,9

29,4

7822

,297

,690

31,4

34,3

7439

,870

,350

45,1

26,4

3863

,146

,946

84,6

77,1

9310

8,95

6,27

212

9,69

3,36

219

1,58

7,13

919

6,87

1,01

626

1,83

7,35

833

0,79

4,23

335

3,01

3,85

5.7

352,

453,

568.

639

7,11

5,46

7,62

9.5

* Ad

just

ed fo

r unc

reco

rded

impo

rts o

f Br7

40,3

85 th

ousa

nd.

Sour

ce: E

thio

pian

Cus

tom

s Au

thor

ity

(thou

sand

s B

irr)

249


nnex

15

: Val

ues

of E

xpor

t By

Cou

ntrie

s of

Des

tinat

ion*

1999

/00

2000

/01

2001

/02

2002

/03

2003

/04

2004

/05

2005

/06

2006

/07

2007

/08

2008

/09

2009

/10

2010

/11

2011

/12

2012

/13

2013

/14

2014

/15

2015

/16

2016

/17

2017

/18

(199

2)(1

993)

(199

4)(1

995)

(199

6)(1

997)

(199

8)(1

999)

(200

0)(2

001)

(200

2)(2

003)

(200

4)(2

005)

(200

6)(2

007)

(200

8)(2

009)

(201

0)

Djib

outi

405,

400

620,

078

272,

132

289,

825

533,

834

359,

202

498,

349

434,

264

485,

403

463,

894

649,

142

1,00

2,92

11,

459,

098

2,23

7,35

93,

657,

884

1,59

4,04

72,

205,

921

2,28

3,06

53,

312,

768

Keny

a8,

370

15,7

4015

413

4,31

82,

360

17,9

2321

,123

32,8

0628

,805

31,7

3557

,321

127,

738

176,

617

190,

938

383,

110

586,

440

618,

827

1,18

6,10

21,

057,

669

Suda

n3,

360

5,93

991

277

,138

79,4

1014

6,58

121

9,22

445

7,06

150

8,86

871

8,60

21,

500,

562

2,27

5,08

13,

012,

327

1,67

5,09

71,

550,

096

1,64

9,71

51,

333,

608

983,

314

2,69

0,71

0

U.A

.R41

,313

19,8

1020

,527

64,5

8276

,599

230,

342

251,

161

273,

830

515,

832

601,

556

1,00

1,75

21,

210,

935

1,32

7,26

21,

434,

080

1,50

5,22

31,

968,

395

1,66

3,20

32,

694,

756

2,89

0,04

1

Fran

ce13

8,26

895

,135

111,

290

273,

552

97,9

6112

7,22

117

7,95

821

2,07

423

1,30

817

1,18

131

0,65

575

7,78

093

2,78

360

2,49

068

5,63

372

1,35

367

9,96

682

7,50

581

5,45

5

Ger

man

y71

1,61

239

6,38

043

7,93

835

2,91

956

0,33

21,

068,

688

875,

993

1,23

0,05

31,

403,

462

1,38

9,20

42,

577,

168

5,15

4,88

45,

321,

133

4,20

0,73

43,

578,

888

4,20

6,15

63,

374,

501

3,94

3,24

74,

729,

676

Italy

240,

722

322,

670

391,

850

183,

166

307,

013

384,

792

473,

896

662,

970

668,

249

618,

165

603,

375

1,70

7,72

51,

390,

960

1,18

5,00

71,

193,

640

1,08

9,19

596

6,20

11,

347,

709

1,48

5,53

6

Net

herla

nds

76,0

2048

,216

55,2

0214

1,98

079

,413

259,

359

334,

933

497,

756

849,

033

1,27

9,58

32,

067,

342

2,66

8,05

63,

722,

699

3,02

9,77

33,

733,

608

3,59

0,92

83,

705,

136

4,17

7,99

05,

001,

314

U.K

.86

,734

114,

851

139,

814

76,7

3218

2,96

921

9,67

323

8,06

429

5,28

331

4,55

362

3,89

056

5,17

292

1,14

798

0,16

085

9,63

11,

034,

641

701,

778

807,

237

1,29

0,34

61,

158,

598

Rus

sia

893

1,84

046

343

19,

510

17,9

1314

,396

30,8

3146

,340

41,2

7898

,095

125,

733

212,

833

215,

319

382,

323

305,

929

332,

653

386,

109

471,

865

Yugo

slav

ia0

028

10

00

00

287

874

00

00

45,9

400

0

U.S

.A.

176,

132

124,

552

165,

892

340,

060

254,

650

389,

938

418,

041

522,

777

915,

718

626,

461

1,00

8,69

51,

941,

403

1,53

3,04

82,

055,

430

2,52

8,81

13,

516,

787

3,28

4,62

34,

317,

231

6,64

9,83

2

Chi

na, P

.Rep

.6,

852

14,7

0090

,968

22,5

2510

9,60

036

3,12

11,

166,

677

526,

539

583,

046

1,96

6,17

12,

838,

166

4,02

4,70

15,

669,

068

4,66

0,20

27,

588,

195

7,37

8,00

16,

430,

788

5,11

1,01

06,

301,

807

Japa

n42

8,97

938

0,85

929

4,61

218

8,44

055

4,40

855

4,68

767

6,17

764

0,34

086

1,30

567

,358

311,

632

628,

239

796,

091

1,61

7,07

61,

304,

904

1,96

5,57

51,

212,

783

2,23

3,31

72,

377,

677

Saud

i Ara

bia

353,

376

295,

068

229,

476

182,

350

293,

609

438,

190

531,

000

645,

957

1,00

0,48

81,

167,

946

1,59

3,42

12,

227,

262

3,55

1,45

92,

754,

806

3,51

6,77

14,

039,

152

3,64

2,64

74,

400,

225

4,97

1,48

3

Res

t of t

he W

orld

1,27

9,76

91,

410,

768

1,65

2,80

91,

814,

340

2,03

4,97

62,

753,

627

2,78

8,38

53,

995,

074

5,21

8,87

75,

450,

022

10,9

32,8

0819

,751

,961

24,4

09,2

3029

,405

,617

29,5

99,2

7226

,546

,929

29,4

21,7

1828

,503

,818

28,7

98,5

66

Tota

l Exp

ort

3,95

7,80

23,

866,

606

3,86

4,32

04,

142,

357

5,17

6,64

47,

331,

258

8,68

5,37

610

,457

,615

13,6

31,5

7515

,217

,920

26,1

15,3

0644

,525

,565

54,4

94,7

6756

,123

,558

62,2

42,9

9959

,860

,381

59,7

25,7

5363

,685

,744

72,7

12,9

95

* Exp

ort

valu

e of

Gol

d is

not

incl

uded

in th

is ta

ble

for t

he y

ears

bef

ore

2003

/04

Sour

ces:

Eth

iopi

an C

usto

ms

Auth

ority

Perio

d

(In T

hous

and

of B

irr)



nnex

16:

TR

AD

E B

ALA

NC

E W

ITH

MA

JOR

TR

AD

ING

PA

RTN

ERS

2005

/06

2006

/07

2007

/08

2008

/09

2009

/10

2010

/11

2011

/12

2012

/13

2013

/14

2014

/15

2015

/16

2016

/17

2017

/18

'(1

998)

'(1

999)

'(2

000)

'(2

001)

'(2

002)

'(2

003)

'(2

004)

(200

5)(2

006)

(200

7)(2

008)

(200

9)(2

010)

Djib

outi

227,

886.

98-

54

,802

.98

-

48

5,15

5.80

46

3,14

9.06

648,

529.

24

1,

001,

457.

15

1,45

4,90

4.13

2,22

2,70

2.71

3,

651,

824.

36

1,58

0,28

2.16

2,

205,

895.

91

2,

283,

009.

94

4,19

2,74

2.81

-

Keny

a30

2,31

2.60

-

401,

089.

88-

28

1,61

6.20

-

23

9,59

9.15

-

346,

716.

12-

35

1,61

7.60

-

475,

510.

76-

380,

937.

75-

28

7,64

1.33

-

18

8,86

8.43

-

85

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411,

075.

40

88

2,87

9,67

5.92

-

Suda

n6,

074.

50-

16

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80

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0.94

-

14

6,80

7.40

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219,

871.

32

10

4,84

1.61

-

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3,07

8.02

1,50

0,06

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1,

822,

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92-

1,

132,

580.

04-

44

8,58

6.45

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714,

234.

10-

2,

498,

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244.

88-

U.A

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300,

624.

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2,09

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255.

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988,

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4,40

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-

7,

603,

477.

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2,74

5,34

4.93

-

4,79

1,91

4.45

-

11

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-

7,

525,

465.

25-

8,

013,

416.

29-

5,

588,

929.

30-

14

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ce59

8,30

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865.

25-

59

8,95

3.08

-

1,

102,

854.

82-

736,

501.

88-

1,

382,

765.

13-

1,63

9,85

8.10

-

2,77

9,69

3.14

-

1,

790,

370.

93-

2,

694,

863.

31-

3,

496,

322.

40-

3,

677,

616.

68-

4,

755,

989,

554.

85-

Ger

man

y62

1,60

1.18

-

426,

786.

80-

67

0,62

3.02

-

38

0,65

3.97

-

90,9

26.3

9

2,19

6,25

1.31

2,

190,

952.

75

56

4,99

5.40

3,06

8,76

3.28

-

2,70

9,92

4.55

-

4,47

5,27

2.13

-

1,76

8,42

4.37

-

7,25

1,27

6,42

1.88

-

Italy

1,72

4,79

3.44

-

2,

811,

492.

76-

2,58

7,32

7.50

-

4,21

0,07

7.33

-

4,

634,

493.

66-

4,07

4,30

5.46

-

5,

391,

295.

81-

7,

684,

957.

61-

8,24

1,48

1.74

-

9,09

9,03

8.57

-

12,3

74,6

22.2

0-

14,1

70,5

50.3

3-

13,3

69,1

16,3

40.1

7-

Net

herla

nds

286,

061.

76-

12

2,08

7.45

-

448,

800.

41

583,

141.

73

1,

123,

736.

81

1,19

6,94

2.26

2,

137,

005.

00

1,

317,

196.

72

125,

404.

59

1,

720,

952.

73-

43

5,18

3.35

-

36

2,84

2.14

-

6,

167,

111,

864.

79-

U.K

.63

5,13

2.90

-

481,

463.

36-

58

2,48

4.62

-

10

5,91

8.95

-

552,

551.

56-

57

6,04

2.47

-

789,

278.

06-

620,

306.

94-

1,

750,

717.

36-

3,

685,

023.

03-

3,

469,

877.

49-

2,

459,

953.

18-

5,

980,

674,

076.

25-

Rus

sia

271,

608.

89-

40

3,33

8.23

-

919,

020.

46-

1,93

9,81

7.46

-

1,

192,

426.

11-

242,

723.

10-

5,

996,

783.

27-

18

1,97

4.19

-

625,

081.

70-

2,09

6,72

9.94

-

3,65

1,33

1.50

-

561,

627.

87-

2,47

2,46

2,50

2.18

-

Yugo

slav

ia1,

153.

82-

8,

468.

06-

30

.72

87

3.76

6,81

9.32

-

9,45

5.16

-

49

.32

-

-

8.

33-

54

.91

-

45,9

39.8

9

0.26

-

1.00

-

U.S

.A.

2,76

3,52

1.46

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1,

176,

135.

92-

1,84

0,56

7.46

-

2,88

3,62

1.12

-

5,

719,

464.

51-

2,45

2,92

5.40

-

6,

298,

496.

38-

5,

026,

845.

96-

10,9

07,8

97.5

3-

11,5

26,9

89.7

4-

23,4

07,3

22.4

1-

18,5

76,8

46.8

3-

31,2

37,7

38,3

61.7

4-

Chi

na, P

.Rep

.3,

840,

956.

80-

6,96

8,07

6.80

-

9,

278,

787.

21-

10

,962

,907

.89

-

16,2

60,5

76.4

2-

16,1

79,0

59.2

0-

26

,121

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.74

-

40

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,045

.09

-

65

,055

,315

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-

11

9,19

4,34

4.43

-

110,

820,

335.

54-

10

9,82

1,23

5.92

-

100,

858,

487,

261.

01-

Japa

n60

4,98

6.74

-

2,14

7,93

4.29

-

2,

205,

940.

40-

3,

150,

049.

47-

5,10

8,48

1.62

-

6,

408,

372.

10-

7,11

8,04

5.15

-

6,65

1,01

1.06

-

10

,116

,101

.13

-

11

,278

,497

.81

-

13

,579

,963

.40

-

13

,311

,707

.06

-

13

,544

,271

,355

.03

-

Saud

i Ara

bia

6,80

4,35

2.22

-

6,

183,

591.

34-

7,31

9,52

9.38

-

11,6

10,1

04.6

8-

12

,240

,720

.34

-

9,

402,

950.

19-

23,1

13,0

54.9

8-

17,7

05,0

30.2

5-

17,7

13,0

67.0

0-

12,6

78,6

49.5

3-

4,32

2,15

7.28

-

6,32

8,40

5.58

-

9,08

4,15

5,04

1.04

-

Res

t of t

he W

orld

10,1

95,5

99.3

6-

10,8

13,9

80.4

1-

17,6

87,3

32.5

5-

29,7

85,3

64.9

5-

33

,716

,166

.87

-

40

,773

,912

.16

-

64,2

98,6

97.8

2-

60,4

16,6

97.6

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70,0

86,0

07.6

8-

86,9

82,1

51.6

6-

107,

856,

924.

66-

11

3,11

9,53

6.21

-

184,

655,

292,

588.

62-

Ove

rallT

rade

Bal

ance

31,1

84,9

73.9

1-

34,6

68,8

22.8

0-

49,5

15,3

71.3

8-

69,4

59,2

72.8

2-

82

,840

,966

.47

-

85

,167

,796

.83

-

137,

092,

371.

41-

14

0,74

7,45

8.32

-

199,

594,

358.

71-

27

0,93

3,85

1.78

-

293,

288,

102.

85-

28

8,76

7,82

4.49

-

397,

042,

754,

634.

9-

Sour

ces:

Eth

iopi

an C

usto

ms

Auth

ority

Trad

ing

Cou

ntry

( In

Thou

sand

s of

Birr

)

251

NATIONAL BANK OF ETHIOPIAAnnex 17: Components of Broad Money

End of Currency Net Money Quasi- Broadperiod outside Demand Supply Money Money

Banks Deposit1 2 3=1+2 4 5=3+4

1979/80 1,062.8 435.8 1,498.6 610.2 2,108.8 1980/81 1,027.1 688.2 1,715.3 662.3 2,377.6 1981/82 1,129.8 762.4 1,892.2 751.5 2,643.7 1982/83 1,258.2 922.2 2,180.4 860.1 3,040.5 1983/84 1,282.9 1,096.4 2,379.3 1,004.4 3,383.7 1984/85 1,358.5 1,333.6 2,692.1 1,156.9 3,849.0 1985/86 1,591.9 1,587.7 3,179.6 1,268.6 4,448.2 1986/87 1,743.5 1,820.0 3,563.5 1,245.2 4,808.7 1987/88 1,908.3 2,002.5 3,910.8 1,327.9 5,238.7 1988/89 2,181.8 1,992.0 4,173.8 1,530.6 5,704.4 1989/90 2,736.3 2,253.7 4,990.0 1,718.2 6,708.2 1990/91 3,820.8 2,314.0 6,134.8 1,827.4 7,962.2 1991/92 4,315.8 2,529.5 6,845.3 2,165.6 9,010.9 1992/93 4,883.2 2,697.5 7,580.7 2,556.0 10,136.7 1993/94 5,158.9 3,214.3 8,373.2 3,225.5 11,598.7 1994/95 5,833.8 4,088.6 9,922.4 4,486.0 14,408.4 1995/96 5,656.9 4,260.5 9,917.4 5,737.5 15,654.9 1996/97 5,176.3 4,847.7 10,024.0 6,524.8 16,548.8 1997/98 4,716.8 6,377.2 11,094.0 7,549.3 18,643.3 1998/99 5,196.4 6,182.5 11,378.9 8,020.5 19,399.4 1999/00 5,914.3 7,136.0 13,050.3 9,127.5 22,177.8 2000/01 5,911.8 7,834.0 13,745.8 10,770.4 24,516.2 2001/02 5,461.9 8,690.6 14,152.5 12,139.5 26,292.1 2002/03 6,582.0 8,834.8 15,416.8 13,643.4 29,060.2 2003/04 7,843.9 10,192.1 18,036.0 15,590.0 33,626.0 2004/05 10,026.0 11,265.1 21,291.1 18,920.7 40,211.7 2005/06 11,422.9 12,389.0 23,811.9 22,565.5 46,377.4 2006/07 13,708.4 15,909.3 29,617.7 27,034.2 56,651.9 2007/08 17,654.1 17,696.3 35,350.4 32,831.8 68,182.1 2008/09 19,715.0 22,397.6 42,112.7 40,397.1 82,509.8 2009/10 24,206.8 28,227.8 52,434.6 51,997.8 104,432.4 2010/11 32,574.9 43,596.1 76,171.0 69,206.0 145,377.0 2011/12 38,537.1 56,312.7 94,849.9 94,548.9 189,398.8 2012/13 45,671.0 69,074.7 114,745.7 120,567.9 235,313.6 2013/14 53,161.4 80,887.8 134,063.8 163,682.8 297,746.6 2014/15 60,460.9 94,245.4 154,706.3 216,622.6 371,328.9 2015/16 66,686.2 111,923.5 178,609.7 266,656.6 445,266.3 2016/17 73,917.7 142,851.9 216,769.6 356,614.4 573,384.1 2017/18 86,417.3 194,737.4 281,154.7 459,418.2 740,572.9

Source: National Bank of Ethiopia




Claims on Central Gov't

Gross Priority

End of Grand National Comm. Loans & Bills Invest- sec. loan

Period Total Total Bank Banks Total Advances Disc. ments to DBE

1=2+5 2=3+4 3 4 5 = 6 to 9 6* 7 8 9

1979/80 2,638.3 1,176.6 915.0 261.6 1,461.7 1,444.1 0.4 17.2 -

1980/81 2,908.7 1,388.1 1,125.8 262.3 1,520.6 1,519.5 0.1 1.0 -

1981/82 3,125.2 1,394.6 1,066.0 328.6 1,730.6 1,729.4 - 1.2 -

1982/83 3,891.7 2,322.2 1,408.1 914.1 1,569.5 1,568.3 - 1.2 -

1983/84 4,356.7 2,558.3 1,642.1 916.2 1,798.4 1,797.2 - 1.2 -

1984/85 4,816.9 2,961.2 1,501.0 1,460.2 1,855.7 1,854.5 - 1.2 -

1985/86 5,375.6 3,314.1 1,862.9 1,451.2 2,061.5 2,060.3 - 1.2 -

1986/87 6,063.1 3,716.7 2,265.1 1,451.6 2,346.4 2,345.2 - 1.2 -

1987/88 6,798.1 4,007.8 2,510.1 1,497.7 2,790.3 2,789.1 - 1.2 -

1988/89 7,354.8 4,452.7 2,584.1 1,868.6 2,902.1 2,900.9 - 1.2 -

1989/90 8,598.4 5,670.9 3,431.6 2,239.3 2,927.5 2,926.3 - 1.2 -

1990/91 10,149.5 6,917.8 4,288.1 2,629.7 3,231.7 3,230.5 - 1.2 -

1991/92 11,479.5 8,062.8 5,433.1 2,629.7 3,416.7 3,415.5 - 1.2 -

1992/93 12,907.1 10,401.5 7,784.1 2,617.4 2,505.6 2,504.5 - 1.1 -

1993/94 14,573.3 11,400.2 8,783.1 2,617.1 3,173.1 3,168.0 - 5.1 -

1994/95 16,840.8 11,324.0 8,703.1 2,620.9 5,516.8 5,512.7 - 4.1 -

1995/96 19,384.0 11,575.7 8,725.4 2,850.3 7,808.3 7,802.9 - 5.4 -

1996/97 19,803.4 10,975.8 8,838.9 2,136.9 8,827.6 8,822.5 - 5.1 -

1997/98 22,050.8 12,032.4 9,819.3 2,213.1 10,018.4 10,015.4 - 3.0 -

1998/99 23,942.7 13,053.8 10,562.2 2,491.6 10,888.9 10,883.2 - 5.7 -

1999/00 31,283.7 19,423.4 16,533.1 2,890.3 11,860.3 11,854.6 - 5.7 -

2000/01 34,035.1 21,357.4 14,342.5 7,014.9 12,677.7 12,670.0 - 7.7 -

2001/02 28,099.0 15,985.1 8,986.7 6,998.4 12,113.9 12,084.8 - 29.0 -

2002/03 28,689.4 17,229.8 9,387.6 7,842.2 11,459.7 11,419.5 - 40.2 -

2003/04 31,653.0 19,199.2 9,389.2 9,809.9 12,453.8 12,247.8 - 206.0 -

2004/05 40,873.5 21,673.8 19,540.0 2,133.9 19,199.7 15,929.6 - 3,270.1 -

2005/06 49,295.9 25,266.4 19,095.7 6,170.6 24,029.6 19,431.1 - 4,598.4 -

2006/07 61,844.2 30,337.6 24,855.6 5,482.1 31,506.6 23,493.8 - 8,012.8 -

2007/08 79,969.2 33,075.7 35,405.8 (2,330.1) 46,893.5 33,600.6 - 13,292.9 -

2008/09 89,203.0 32,786.5 37,827.2 (5,040.7) 56,416.5 38,802.0 - 17,614.5 -

2009/10 104,413.5 33,013.1 39,340.3 (6,327.2) 71,400.4 47,603.6 - 23,796.9 -

2010/11 135,553.9 28,651.7 45,323.71 (16,672.1) 106,902.2 61,871.3 - 38780.9 6250.0

2011/12 189,080.8 21,557.4 45,344.08 (23,786.7) 167,523.4 94,617.0 - 60404.4 12502.0

2012/13 233,404.3 21,963.5 55,377.34 (33,413.8) 211,440.8 114,384.6 - 80549.2 16507.0

2013/14 300,026.6 26,927.7 64,510.91 (37,583.2) 273,098.8 141,975.8 - 110866.0 20257.0

2014/15 393,421.7 30,717.3 77,076.80 (46,359.6) 362,704.5 185,501.9 - 153845.6 23357.0

2015/16 490,230.3 47,524.4 95,038.07 (47,513.7) 442,706.0 226,849.2 - 190249.7 25607.0

2016/17 631,092.7 85,441.8 120,891.04 (35,449.2) 545,650.9 283,835.2 - 234589.7 27226.0

2017/18 784,633.1 102,002.8 140,206.86 (38,204.0) 682,630.3 346,314.3 - 289023.3 47292.7

* Includes Claims on Other Financial Institutions

Source: National Bank of Ethiopia

Claims on Non-Central Gov'tANNEX 18 : DOMESTIC CREDIT BY SECTOR (In Millions of Birr)

253

NATIONAL BANK OF ETHIOPIAANNEX 19 GOLD & FOREIGN EXCHANGE HOLDINGS OF THE NATIONAL BANK OF ETHIOPIA AND COMMERCIAL BANKS

Gross Gold and Foreign Exchange HoldingsNational Bank of Ethiopia Net Gold & International Reserves Foreign Liabilities Foreign Exchange

CBs'End of Gross NBE Foreign Reserve Foreign Total Comm. Comm.

Fiscal Year Total Total Gold Exchange Tranche Exchange Liab. Banks NBE Total NBE Banks1=2+6 2=3to5 3 4 5 6 7=8+9 8 9 10=11+12 11=2-9 12=6-8

1979/80 525.6 323.0 50.5 272.5 - 202.6 159.3 49.1 110.2 366.3 212.8 153.5

1980/81 476.7 284.8 48.2 236.6 - 191.9 246.6 57.1 189.5 230.1 95.3 134.8

1981/82 754.6 541.7 44.0 497.7 - 212.9 424.1 106.7 317.4 330.5 224.3 106.2

1982/83 615.7 439.0 44.0 395.0 - 176.7 391.6 137.7 253.9 224.1 185.1 39.0

1983/84 446.4 224.1 44.0 180.1 - 222.3 310.1 107.1 203.0 136.3 21.1 115.2

1984/85 479.9 310.7 44.0 266.7 - 169.2 247.8 97.2 150.6 232.1 160.1 72.0

1985/86 838.5 620.9 44.0 576.9 - 217.6 259.3 83.5 175.8 579.2 445.1 134.1

1986/87 752.5 556.0 42.0 514.0 - 196.5 216.1 69.7 146.4 536.4 409.6 126.8

1987/88 594.2 388.8 194.8 194.0 - 205.4 291.9 107.1 184.8 302.3 204.0 98.3

1988/89 421.4 169.0 44.0 125.0 - 252.4 218.4 102.9 115.5 203.0 53.5 149.5

1989/90 190.2 41.8 23.1 18.7 - 148.4 143.7 71.5 72.2 46.5 -30.4 76.9

1990/91 446.9 177.7 31.3 146.4 - 269.2 158.6 118.4 40.2 288.3 137.5 150.8

1991/92 729.9 346.7 44.0 302.7 - 383.2 326.8 88.6 238.2 403.1 108.5 294.6

1992/93 2,316.3 1,342.9 57.0 1,236.6 49.3 973.4 1,449.1 266.9 1,182.2 867.2 160.7 706.5

1993/94 5,286.9 3,193.4 64.5 3,071.7 57.2 2,093.5 1,519.5 469.2 1,050.3 3,767.4 2,143.1 1,624.3

1994/95 7,399.6 3,895.6 71.1 3,755.9 68.6 3,504.0 1,690.3 799.6 890.7 5,709.3 3,004.9 2,704.4

1995/96 8,107.6 5,718.2 23.1 5,630.7 64.4 2,389.4 1,871.8 1,055.0 816.8 6,235.8 4,901.4 1,334.4

1996/97 8,237.9 3,968.7 2.5 3,899.2 67.0 4,269.2 2,612.3 1,514.1 1,098.2 5,625.6 2,870.5 2,755.1

1997/98 8,843.6 3,105.7 2.5 3,036.8 66.4 5,737.9 3,012.6 2,072.5 940.1 5,831.0 2,165.6 3,665.4

1998/99 8,839.9 3,588.8 2.8 3,508.9 77.1 5,251.1 2,752.1 1,685.1 1,067.0 6,087.8 2,521.8 3,566.0

1999/00 7,814.5 2,921.7 2.8 2,840.5 78.4 4,892.8 3,043.9 2,089.5 954.4 4,770.6 1,967.3 2,803.3

2000/01 7,829.5 2,907.8 2.9 2,829.6 75.3 4,921.7 3,029.5 1,815.4 1,214.1 4,800.0 1,693.7 3,106.3

2001/02 11,470.7 5,743.6 2.9 5,660.0 80.7 5,727.1 3,648.3 1,703.3 1,945.0 7,822.4 3,798.6 4,023.8

2002/03 14,427.2 7,988.2 2.9 7,899.3 86.0 6,439.0 3,378.1 1,674.7 1,703.4 11,049.1 6,284.8 4,764.3

2003/04 17,449.8 11,307.3 2.5 11,213.3 91.6 6,142.5 4,452.0 1,889.5 2,562.4 12,997.8 8,744.9 4,253.0

2004/05 19,963.5 13,704.9 57.0 13,556.5 91.3 6,258.6 6,095.5 1,979.8 4,115.7 13,868.0 9,589.2 4,278.8

2005/06 16,759.0 10,071.7 89.2 9,889.6 92.8 6,687.3 4,649.5 1,735.8 2,913.6 12,109.6 7,158.0 4,951.5

2006/07 19,514.9 11,977.3 429.3 11,448.5 99.5 7,537.7 6,174.6 1,986.3 4,188.3 13,340.4 7,789.0 5,551.4

2007/08 16,735.5 8,708.7 5.5 8,589.2 114.0 8,026.8 5,069.9 2,301.9 2,768.0 11,665.6 5,940.7 5,725.0

2008/09 26,434.3 17,214.6 18.2 17,069.0 127.5 9,219.7 8,457.5 3,076.5 5,380.9 17,976.8 11,833.7 6,143.1

2009/10 42,350.1 27,289.3 443.3 26,700.3 145.7 15,060.8 15,160.3 3,254.3 11,906.0 27,189.8 15,383.3 11,806.5

2010/11 79,945.5 51,551.4 1,395.2 49,960.5 195.7 28,394.2 24,410.9 5,715.5 18,695.4 55,534.7 32,856.0 22,678.7

2011/12 64,119.0 40,101.4 2,038.1 37,868.1 195.3 24,017.6 26,738.5 5,484.2 21,254.3 37,380.5 18,847.1 18,533.4

2012/13 72,658.1 44,140.0 2,253.2 41,685.1 201.8 28,518.1 27,009.6 7,515.2 19,494.4 45,648.5 24,645.6 21,002.9

2013/14 77,878.0 50,624.5 1,217.6 49,188.5 218.4 27,253.5 31,905.7 7,995.1 23,910.6 45,972.3 26,713.9 19,258.4

2014/15 82,741.8 66,817.7 79.3 66,423.1 315.3 15,924.1 45,170.9 8,326.6 36,844.3 37,570.9 29,973.4 7,597.6

2015/16 95,055.0 74,156.7 1,113.9 72,711.3 331.5 20,898.3 73,530.8 9,880.5 63,650.3 21,524.2 10,506.4 11,017.8

2015/17 95,055.0 74,156.7 1,113.9 72,711.3 331.5 20,898.3 73,530.8 9,880.5 63,650.3 21,524.2 10,506.4 11,017.8

2016/17 98,750.9 73,874.3 741.3 72,783.6 349.4 24,876.5 60,716.1 10,818.8 49,897.3 38,034.8 23,977.0 14,057.8

2017/18 102,738.9 77,617.4 750.5 76,448.4 418.4 25,121.6 63,362.7 14,504.8 48,858.0 39,376.2 28,759.4 10,616.8


CB :Commercial Bank

In Millions of Birr



NN

EX 2

0: T

REA

SUR

Y B

ILLS

AU

CTI

ON

RES

ULT

S

Ann

ual

Am

ount

B

ank

Non

-ban

kTo

tal

Ban

k

Non

-ban

kTo

tal

Ban

k

Non

-ban

kTo

tal

Wei

ghte

d

Offe

red

Yiel

d

1994/95

1580.0

14.0

24.0

38.0

1636.0

648.5

2284.5

797.4

598.1

1395.5

4.248

1995/96

4526.0

22.0

60.0

82.0

4552.5

2117.4

6669.9

2623.4

1902.6

4526.0

4.834

1996/97

8519.0

38.0

96.0

134.0

2460.7

4278.9

6739.6

1456.3

3233.9

4690.2

3.889

1997/98

5086.0

98.0

116.0

214.0

2386.7

3705.3

6092.0

1521.6

3033.9

4555.5

3.714

1998/99

13435.5

88.0

193.0

282.0

6231.3

6986.2

13217.5

5261.2

6333.0

11594.2

3.650

1999/00

16147.0

110.0

162.0

272.0

10772.3

7550.5

18322.8

7954.4

5356.8

13311.2

3.262

2000/01

12100.0

133.0

208.0

346.0

10361.0

7844.0

18205.0

5087.7

4235.3

9322.9

2.829

2001/02

16625.0

152.0

166.0

326.0

18632.6

6216.0

26089.1

12176.4

3996.8

16453.2

1.982

2002/03

29818.0

174.0

122.0

296.0

33488.0

5341.8

38829.8

26987.6

2830.4

29818.0

1.311

2003/04

51645.0

152.0

120.0

272.0

56481.0

4960.0

61441.0

47921.8

3710.2

51632.0

1.023

2004/05

41262.5

175.0

94.0

269.0

49658.5

7237.7

56896.2

37783.9

3281.1

41065.0

0.243

2005/06

47793.5

142.0

45.0

187.0

56687.5

3916.0

60603.5

44465.6

3327.9

47793.5

0.038

2006/07

69487.0

99.0

68.0

167.0

71259.0

7663.0

78922.0

58599.6

6715.4

65315.0

0.493

2007/08

48889.0

92.0

88.0

180.0

46761.0

13127.5

59888.5

35613.0

12103.5

47716.5

0.674

2008/09

28471.9

83.0

178.0

261.0

21974.5

24792.7

46767.2

2672.0

25167.8

27839.8

0.520

2009/10

55203.3

82198

280

23386.9

27871.2

51258.1

13902.0

27834.5

41736.5

0.652

2010/11

83390.7

65155

220

23715.3

32044.8

55760.0

20271.3

32044.8

52316.0

1.305

2011/12

96511.9

202

204

406

26712.7

50482.1

77194.8

24212.7

50482.1

74694.8

1.944

2012/13

107484.5

394

210

604

51493.5

62185.7

109184.5

51493.5

62185.7

109184.5

2.203

2013/14

88074.94

226

240

466

31226.00

81608.55

112834.55

16989.0

76933.5

94233.3

1.503

2014/15

100739.44

0248

248

0.00

136536.77

136536.77

0.0

110593.3

110593.3

1.340

2015/16

145877.44

0217

217

0.00

161575.24

161575.24

0.0

199200.0

199200.0

1.323

2016/17

204543.24

0200

200

0.00

225321.24

225321.24

0.0

225321.2

225321.2

1.298

2017/18

286494.24

0192

192

0.00

323991.24

323991.24

0.0

323991.2

323991.2

1.341

Num

ber o

f Bid

ders

Am

ount

Dem

ande

d in

mill

ions

of B

irrA

mou

nt S

old

in m

illio

ns o

f Birr

255

NATIONAL BANK OF ETHIOPIAAn

nex

21: E

mpl

oym

ent C

reat

ed b

y Do

mes

tic &

For

eign

Inve

stm

ent P

roje

cts

Whi

ch H

ave

Com

men

ced

Ope

ratio

n, b

y Se

ctor

Perm

. Em

pl.

Tem

p.

Em

pPe

rm.

Empl

.Te

mp.

Emp

Perm

. Em

pl.

Tem

p.

Em

pPe

rm.

Empl

.Te

mp.

Emp

Perm

. Em

pl.

Tem

p.

Em

pPe

rm.

Empl

.Te

mp.

Emp

Perm

. Em

pl.

Tem

p.

Em

pPe

rm.

Empl

.Te

mp.

Emp

Perm

. Em

pl.

Tem

p.

Em

pPe

rm.

Empl

.Te

mp.

Emp

Perm

. Em

pl.

Tem

p.

Em

pPe

rm.

Empl

.Te

mp.

Emp

Perm

. Em

pl.

Tem

p.

Em

p

Agric

ultu

re, h

untin

g an

d fo

rest

ry26

91,

708

628

1,52

368

636

233,

232

1209

31,

186

1602

914

32,

260

8951

00

015

63,

432

1,

265

6,4

58

2

90

2,

834

6,08

285

925

924

28

Con

stru

ctio

n70

260

00

1,03

918

403,

539

6590

270

2972

2650

105

5024

1044

111

4850

8

1,

154

1,

073

2,

412

3,

346

5,23

216

6427

38

Educ

atio

n46

037

730

626

734

212

925

914

012

363

105

266

189

129

8

49

13

890

1623

Elec

trici

ty, g

as, s

team

and

wat

e0

00

00

250

Fish

ing

1037

00

Hea

lth a

nd s

ocia

l wor

k8

612

227

4730

245

3624

552

208

315

25

79

2

205

4422

0

Hot

els

and

rest

aura

nts

7763

9339

398

261

182

7137

304

1545

1018

115

010

0

55

40

0

80

23

3597

64

Man

ufac

turin

g1,

727

557

801

149

3,44

119

985,

235

2094

584

1166

309

146

1,19

352

713

5770

426

4287

2

7,58

6 1

,189

7

,007

3,75

3 6,

016

3,14

312

3,35

3

8,07

0

Min

ing

and

quar

ryin

g0

00

025

040

3010

3085

20

3

74

299

9641

4

Oth

er c

omm

unity

, soc

ial a

nd p

e0

00

044

240

1512

834

021

268

13

3

25

26

378

125,

002

10

9

Rea

l est

ate,

rent

ing

and

busi

nes

1,18

92,

169

583

384

763

3337

369

461

180

706

2312

164

361

024

113

427

649

61,

649

1,

596

3,

761

3,

372

4,

989

187

81,3

47

21

,710

Tran

spor

t, St

orag

e an

d C

omm

u70

5635

4154

3824

016

048

4242

6954

349

1213

218

4034

1728

723

28

Who

lesa

le, r

etai

l tra

de &

repa

ir 69

334

00

106

278

179

170

4340

1710

35

75

102

0

Oth

ers*

8

100

160

Gra

nd T

otal

3,94

95,

567

2,56

82,

430

6,94

511

,536

13,4

8021

,815

2,53

521

,889

625

2,78

42,

109

1,74

61,

861

1,22

13,

936

6,42

511

,227

10,5

0512

,724

12,7

1020

,712

9,77

533

2,00

3

36,2

14

1998

(200

5/20

06)

Sect

or20

10(2

017/

18)

1999

(200

6/20

07)2

000(

2007

/200

8)20

01(2

008/

2009

)20

02(2

009/

10)

2003

(201

0/11

)20

04(2

011/

12)

2005

(201

2/13

)20

06(2

013/

14)

2007

(201

4/15

)20

08(2

015/

16)

2009

(201

6/17

)



nnex

22:

Num

ber a

nd In

vest

men

t Cap

ital o

f Dom

estic

& F

orei

gn In

vest

men

t Pro

ject

s W

hich

Hav

e C

omm

ence

d O

pera

tion

by S

ecto

r

No.

of

Pro j

ect

Inve

stm

ent

No.

of

Proj

ects

Inve

stm

ent

No.

of

Proj

ect

Inve

stm

ent

No.

of

Proj

ect

Inve

stm

ent

No.

of

Proj

ecIn

vest

men

t N

o. o

f Pr

ojec

tIn

vest

men

t N

o. o

f Pr

ojec

tIn

vest

men

t N

o. o

f Pr

ojec

Inve

stm

ent

Cap

ital

No.

of

In

vest

men

t N

o. o

f Pr

oje

Inve

stm

ent

No.

of

In

vest

men

t N

o. o

f Pr

ojec

Inve

stm

ent

No.

of

Proj

ecIn

vest

me

nt

No.

of

Proj

eIn

vest

me

nt C

apita

lN

o. o

f Pr

oje

Inve

stm

ent

N

o. o

f Pr

ojec

tIn

vest

men

t C

apita

l

Agric

ultu

re, h

untin

g an

d fo

rest

ry25

218

671,

501

113

1,00

056

338

5383

319

215

5763

610

050

5,37

420

356

1613

70.1

107

521.

735

66.0

1411

9.6

4232

2.8

Con

stru

ctio

n1

177

1053

413

408

1614

07

3315

282

1443

712

802,

347

11

424

43

2258

2,81

1.2

5013

2.8

7550

6.7

199

1,08

1.9

34

43,

002.

1

Educ

atio

n28

864

3411

241

139

2053

1947

1337

720

318

,518

11,

700

25

225

.41

79.8

37.

14

6.1

767

.8

Elec

trici

ty, g

as, s

team

and

wat

er s

uppl

y1.

010

0.0

Fish

ing

13

Hea

lth a

nd s

ocia

l wor

k5

395

194

116

326

253

1911

473

4,00

01

22

72

41

0.2

14.

03

13.7

1527

6.4

Hot

els

and

rest

aura

nts

215

1710

218

4421

112

1125

1862

1222

620

,781

615

32

36

44.1

510

5.8

310

.82

9.5

557

.8

Man

ufac

turin

g53

660

941,

082

103

1,54

872

528

7979

855

1,00

566

577

3058

3,62

118

146

241,

371

3851

6.8

392,

707.

285

2,53

9.5

149

1,88

8.0

57

814

,494

.8

Min

ing

and

quar

ryin

g1

61

02

21

21

11

1.1

612

.18

18.7

781

.0

Oth

er c

omm

unity

, soc

ial a

nd p

erso

nal s

ervi

ce a

ctiv

ities

12

37

148

12

220

13,

290

214

39.

14

14.5

34.

94

5.2

4624

5.8

Rea

l est

ate,

rent

ing

and

busi

ness

act

iviti

es43

245

6624

215

956

847

51,

458

173

1,09

754

193

3997

1867

,844

716

3222

317

8936

2,13

5.3

197

563

637

3,55

181

5,73

7.4

49

67,

204.

8

Tran

spor

t, St

orag

e an

d C

omm

unic

atio

n1

227

106

511

111

1421

23

1532

711

,546

715

511

35

412

.13

5.8

510

.73

14.7

511

.4

Who

lesa

le, r

etai

l tra

de &

repa

ir se

rvic

e1

3310

167

643

57

74

257

6513

302

15,6

504

71

01

10.9

12.

0

Oth

ers*

11.

93

9.5

Gra

nd T

otal

160.

022

73.3

314.

037

83.4

465.

042

06.7

687.

027

83.7

367.

029

04.4

189.

019

03.3

234.

018

97.2

182.

020

3297

1.0

48.0

231.

968

.064

7.7

55.0

1511

.716

3.0

5636

.240

7.0

4135

.085

26,

708.

6

46

88,

896.

9

1,55

0

25,8

76.2

Sect

or19

95(2

002/

2003

)19

96(2

003/

2004

)19

97(2

004/

2005

)20

07(2

014/

15)

2008

(201

5/16

)20

09(2

016/

17)

[in m

illio

ns o

f Birr

]

1998

(200

5/20

06)

2010

(201

7/18

)19

99(2

006/

2007

)20

00(2

007/

08)

2001

(200

8/20

09)

2002

(200

9/10

)20

03(2

010/

11)

2004

(201

1/12

)20

05(2

012/

13)

2006

(201

3/14

)

257


nnex

23:

Num

ber a

nd C

apita

lof D

omes

tic &

For

eign

Inve

stm

ent P

roje

cts

Whi

ch H

ave

Com

men

ced

Ope

ratio

n, b

y R

egio

n

No.

of

Proj

ects

Inve

stm

ent

Cap

ital

No.

of

Proj

ects

Inve

stm

ent

Cap

ital

No.

of

Proj

ects

Inve

stm

ent

Cap

ital

No.

of

Proj

ects

Inve

stm

ent

Cap

ital

No.

of

Proj

ects

Inve

stm

ent

Cap

ital

No.

of

Proj

ects

Inve

stm

ent

Cap

ital

No.

of

Proj

ects

Inve

stm

ent

Cap

ital

No.

of

Proj

ects

Inve

stm

ent

Cap

ital

No.

of

Proj

ects

Inve

stm

ent

Cap

ital

No.

of

Proj

ects

Inve

stm

ent

Cap

ital

No.

of

Proj

ects

Inve

stm

ent

Cap

ital

No.

of

Proj

ects

Inve

stm

ent

Cap

ital

No.

of

Proj

ects

Inve

stm

ent

Cap

ital

No.

of

Proj

ects

Inve

stm

ent

Cap

ital

No.

of

Proj

ects

Inve

stm

ent

Cap

ital

Addi

s Ab

aba

157

1,29

521

81,

226

457

1,67

621

81,

375

110

730

110

1,04

232

561

2419

052

498

3720

110

15,

262.

031

2,38

1.5

755

6,14

7.6

376

8307

.51,

362

19

,839

.3

Afar

528

117

22

216

02

117

561

112

21.1

1597

.56

16.0

4638

0.0

Amha

ra31

327

9381

086

192

6117

027

280

5120

019

7431

112.

74

10.0

713

.642

104.

515

39.7

B.G

umze

13

521

32

66

113

12.

0

Dire

Daw

a2

501

101

611

68.8

Gam

bella

220

213

25

175

0

Har

ari

13

3.0

26.5

Mul

tireg

iona

l3

3611

104

1917

717

219

2019

324

1,02

35

5959

.0

5,21

7.5

Oro

mia

631,

478

711,

384

3541

826

953

1654

916

379

674

210

685

161,

308

713

9.3

304

1,39

8.4

2634

5.9

1933

6

SNN

PR24

480

3385

2610

23

56

843

516

271

10.9

114

25

1083

.51

2.5

Som

ali

811

415

Tigr

ay20

105

3154

657

162

3417

64

4039

113

112

475

2020

23

11

1190

.249

207.

345

111.

521

65.9

6639

5.3

Gra

nd T

otal

314

3,78

346

54,

207

687

2,78

436

72,

904

189

1,90

324

52,

968

182

2,03

348

232

6864

855

1,51

216

35,

636.

240

74,

135

852

6,70

946

888

96.9

1,55

0

25,8

76.3

1998

(200

5/06

)

Sect

or

1996

(200

3/20

04)

1997

(200

4/20

05)

[in m

illio

ns o

f Birr

]

2010

(201

7/18

)19

99(2

006/

07)

2000

(200

7/08

)20

01(2

008/

09)

2002

(200

9/10

)20

03(2

010/

11)

2004

(201

1/12

)20

05(2

012/

13)

2006

(201

3/14

)20

07(2

014/

15)

2008

(201

5/16

)20

09(2

016/

17)

Desig

ned

& Pr

inte

d by

: mas

terp

rinta

ddis.

net

Documents

National Bank of Ethiopia...2016/17 1.29 109.20 2017/18 1.27 115.20 Growth rate -1.6 5.5 Source: Ethiopian Roads Authority 22 2017/18 Annual Report NATIONAL BANK OF ETHIOPIA 1.5.3