A Dollar Is Now 27 Br In The Parallel Market, Dangote Offers 200 Million Br For A Residence In Ethiopia

5 mins read

17-1-2017

Addis Abeba is in a bizarre mood lately. And for a good reason. Business is in all-time slow due largely to the hold up in the federal government’s budget disbursement; the subsequent crunch in liquidity; the shortage in foreign exchange and the painful delays by the banks to process letters of credit. Confidence among business people and investors has plummeted.

 

The uncertainty and anxiety Addis Abebans currently feel is evident in the skepticism many seem to have on the ability of the Revolutionary Democrats to bring their house in order. So much has been pledged by their leaders to rid the vices of their administration, while there has so far been so little to show for it.

 

There is little comfort many find in the establishment’s resort to its trademark business of marathon meetings from top all the way down to the lowest rank of government. It is absurd to see ministries lock up their doors so they can meet for day to discuss how to address the cause of the problem that has created problems in  the first place.

 

In the meantime, there appears to emerge a wider feeling even among the staunch supporters of the Revolutionary Democrats that the ruling party, for all its accomplishments and positive records in the past, has a leadership that has failed to match the ingenuity of a generation it has been instrumental in creating. The Revolutionary Democrats are helplessly failing to reinvent themselves to remain relevant to contemporary Ethiopia and to the little more sophisticated macroeconomic reality than the one they inherited over a quarter of a century ago.

 

Not surprisingly, a climate of fear of uncertain future is driving meager capital away. The economy is haemorrhaging foreign currency, sending the exchange rate of Birr against the Dollar to 27 Br in the parallel market.

This has made an already precarious situation worse. Too many people are now putting their properties up for sale, thereby transforming the once lucrative property market from sellers to buyers dictated transaction.

For those with a little bit of liquidity and bold enough to gamble, it appears to be time to invest in properties as some of the foreign investors are seen doing. These are foreign investors who have made tons of cash in the local currency but are unable to wire it out due to the crunch in forex; the central bank could sometimes end up holding onto their applications for transfers for close to a year.

It should not be surprising to find some of these investors trying to change their cash in Birr – which loses its value fast due to depreciation against a basket of currencies to the modest inflation – into property assets. Take, for instance, Aliko Dangote, the Nigerian billionaire whose net worth in 2016 was estimated to have reached over 12 billion dollars. After installing and running one of the largest cement plants in the country, Dangote is in shopping spree in Addis Abeba for properties, offering 200 million Br for a residence and far larger amount to commercial buildings.

 

His latest bid is to acquire the property of Capital Hotel, on Haile Gebresellasie Avenue, which consumed close to 900 million Br investment when it was opened four years ago. Dangote has offered close to 100 million dollars for the property, an amount declined by the owners, the family of Yemane G. Sellasie. The owners have asked for additional 50 million dollars to give up ownership of a property that has become one of the landmarks in Addis Abeba’s skyline, claims gossip.

PUBLISHED ON JAN 17,2017 [ VOL 17 ,NO 872] By Addis Fortune 

3 Comments

  1. This Hotel is constructed by higher officials of Ethiopian Government specially (TPLF) by stealing public money and assign some one seems to be owner of the Hotel this is how they did.

  2. Angelina Jolie’s adopted daughter’s mum seeks access .
    . ‘Please just let me speak to my daughter’: Biological mother of Angelina Jolie’s adopted girl Zahara, 12, demands access from Ethiopia after Brangelina love split

    Mentewab Dawit Lebiso was forced to give her daughter up after she was raped
    Poverty stricken 31-year-old was attacked then fell sick after her baby was born
    Jolie adopted the daughter from Ethiopia believing she was an ‘Aids orphan’
    Now Mentewab tells Mail Online she desperately wants to speak to Zahara, 12
    Biological mother says she wants Jolie to get custody after love split with Brad
    Says she is not asking for her daughter back but wants the chance to talk to her
    Mentewab says she has had no letters, photos or money from Jolie since adoption
    ‘I just want her to know that I am alive and long to be able to speak with her’

  3. Tigrean billioners are selling their property everywhere in the country. I know the yemane gebreselassie family, they looted billions, and they are just only one example of the countless many tIgrean looters turned billioners who nare now on the run .Possibly weyane is advising them to sell and move to mekele, Adwa, axum , etc. The will declare independence? These are very Interesting times for Ethiopians and Eritreans that we need to watch very close.

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