Aamir A. Rehman

Understanding Sovereign Debt: Options and Opportunities for Africa, with Ceyla Pazarbasioglu , Director of the Strategy, Policy, and Review Department (SPR) of the International Monetary Fund . Spring #IMFMeetings and #WBGMeetings United Nations Joint SDG Fund United Nations #InvestingInTheSDGs #BlendedFinance #DecadeOfAction #SDGfinancing #Fin4Dev #SDGs #SDGInvest #2030agenda #timetoact 💸No poverty 🍲No hunger 🏥Health 📚Education ⚧️Gender equality 🚰Water 💡Energy 👩🏾‍⚕️Work 🏭Industry ✖️No inequalities 🏙️Sustainable cities 🪙Responsible consumption 🌍Climate action 🌊Life below water 🌳Life on land 🕊️Peace 🤝Partnerships

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ZamZam Bank Launches Ansar Digital Financing: Ethiopia's First Full-Fledged Sharia-Compliant Digital Financing Solution! In a historic milestone, ZamZam Bank proudly unveiled Ansar Digital Financing in the presence of esteemed dignitaries, including H.E. Ato Solomon Desta, Vice Governor of the National Bank of Ethiopia; H.E. Ms. Nuria Ali, State Minister of Women and Social Affairs; Dr. Nassir Dino, Board Chairman of ZamZam Bank; Ms. Melika Bedri, CEO of ZamZam Bank; Ms. Hayat Abdulmalik, Vice CEO of Kifiya Financial Technologies; along with Board and Management Members of ZamZam Bank and other respected guests. Ansar, powered by Kifiya Financial Technologies, is Ethiopia's pioneering Sharia-compliant Digital Financing solution, designed to revolutionize access to financing for individuals and businesses. Why Ansar is a Game-Changer: 💡 AI-Driven Financing Scoring: Ansar’s advanced technology evaluates financing worthiness instantly, ensuring fast and reliable approvals. 📱 Fully Digital & Secure: From application to approval, Ansar offers a seamless digital experience with flexible repayment options. 🤝 Empowering Inclusion: The platform is tailored to support youth, women, and people with disabilities, especially those in small, micro, and medium-sized enterprises (SMEs). 🌍 Economic Growth Catalyst: Ansar enables product suppliers to connect with customers in a tech-enabled marketplace while expanding job opportunities for delivery service providers. A Unique Collaboration: Developed in partnership with Kifya Financial Technology, Ansar is a testament to the power of local innovation and a bold step toward economic empowerment. During the launch, H.E. Ato Solomon Desta highlighted: “This service, fully aligned with Sharia principles and powered by artificial intelligence, offers collateral-free financing to entrepreneurs across Ethiopia. It empowers underrepresented groups—youth, women, and people with disabilities—while driving job creation and supporting product suppliers in a tech-supported ecosystem, making it a unique and first-of-its-kind digital financing service prepared entirely based on Sharia principles” Join us in celebrating this landmark achievement as we continue to pioneer innovative, inclusive, and Sharia-compliant financial solutions for Ethiopia’s bright future. #ZamZamBank #AnsarDigitalFinancing #ShariaCompliant #FinancialInclusion #Innovation #Ethiopia

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$20 billion financing for #Ethiopia announced in just the last 2 days. *IMF: $3.4 billion imf.org/en/News/Articl… *World Bank: $16.6 billion in undisbursed & future commitments (See attachment). MY VIEW: $20 billion is the largest financing ever by IMF/WB for a SSA country and indicates huge confidence by the two Washington DC based DFIs in Ethiopia’s economic prospects. When fully deployed, the multiplier effect on the economy could be up to a 10X boost over the next few years. When adding the anticipated debt relief, the positive impact on the economy will be even more significant. As the head of a large global company that has invested in the country, I fully support the reforms which are designed, amongst many other goals, to: (1) structurally transform the economy (2) maintain macroeconomic stability, especially by reducing inflation, increasing FX liquidity (3) minimize distortions caused by the oligopolistic structures which benefit only a few, (4) expand the nascent domestic private sector and enable it to compete not only domestically but also abroad and, (5) support value-added global exporters like us employing thousands of Ethiopians generating much needed FX. For instance, the revised FX retention increase to 50% is a big welcome, with more reforms to support exporters anticipated soon. My personal experience managing many very large and complex investment transactions during periods of economic reforms in Latin America, in particular Brazil and Argentina, and other emerging markets, indicates that a lot of hard work is needed over several periods to fully realize the benefits of economic reforms while mitigating risks and minimizing the impact on the livelihood of millions of people especially at the low end of the income structure. In this regard, analyzing the solution tool kits used by other countries with similar reform experiences (the successful as well as those who didn’t succeed) will be helpful. Summary: Ethiopia’s economy is starting to transition to a new and exciting phase appropriate not only for its current size (5th largest in Africa) but, most importantly, to its projected position in the coming decades as being amongst the 20 largest in the world with a $6.2 trillion GDP (according to Goldman Sachs).

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👇🏻 Might one day go down as one of the most effective and impactful of all economic transformation-driven initiatives in Saudi Arabia. Invest and develop Saudi manufacturing supply base around existing and new industrial production. Support existing market winners to export. A turbocharged ecosystem build-out. Will make products made in Saudi more competitive and, obviously, boost localization across the board.

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Day 1 of #Ethiopia’s new foreign exchange rate liberalization policy: The country’s largest bank, Commercial Bank of Ethiopia (CBE), led the way by setting today’s US$ buying rate at Birr 74.73. This is ~30% higher than the last officially pegged rate on Saturday. The NBE will start publishing an indicative daily exchange rate starting on July 31 as a reference. However, each bank will independently set its own exchange rate. It will be interesting to see the rates the other banks will be offering. Note. I would expect FX trading to be conducted on ESX at a future date. ESX is expected to start trading in November 2024.

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Below is my interview with the BBC’s “News Day” program this morning. Discussed #Ethiopia’s decision to allow foreign banks to operate in the country for the first time in 50+ years and why the 31 local banks should merge to create 5 large ones. Ethiopia is SSA’s 3rd largest economy (5th overall in Africa) with a GDP of $200+ billion but its banks are ranked as small (except the state owned CBE) compared to other banks in Africa. See annual ranking of Africa’s 100 largest banks by African Business Magazine. #Nigeria #Kenya #Southafrica

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National Bank Policy Rates Following the recent announcement by National Bank of Ethiopia of its new interest rate based monetary policy, many questions are being raised about the new policy and its potential impact in stabilizing the economy, especially, inflation. The simplified version of the theory is: Higher interest rates pull money in circulation back to bank vaults for better returns. It also discourages borrowing. Which results in low spending, which, in turn, reduces inflation, because inflation occurs during higher quantity of money and lower volume of goods and services in the market. For further understanding, you may check the footage The Economist had released on the subject, linked below.

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#Ethiopia #Africa My New Year’s resolution is to publish this book. Premise: Africa’s economic development in the 21st century must be distinct from the models followed by Asia, Europe, or America. Instead of replicating traditional pathways, Africa has the unique opportunity to leapfrog stages of development by leveraging modern, and sustainable technologies. This book will provide a strategic framework for policymakers, development partners, and entrepreneurs, demonstrating how these technologies can drive rapid, inclusive, sustainable economic growth tailored to Africa’s unique challenges and opportunities.

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Yesterday, I had the pleasure of joining Maya Hojeij on Bloomberg Asharq Business اقتصاد الشرق to discuss the economic policies being proposed by both U.S. Presidential candidates. We talked about how their plans could impact different social classes, drive inflation and interest rates, and influence the country's debt and fiscal health. We also touched on the potential consequences of new tariffs and what the expiration of key parts of the Tax Cuts and Jobs Act in 2025 could mean for the economy. Finally, we explored how the upcoming U.S. election might affect financial markets. It was a great conversation on some very timely issues. #EnsahAdvisoryPartners #Elections #Economy #SygaThomas #FinancialMarkets #KamalaHarris #DonaldTrump Riham El Chayeb

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Central Bank of The Gambia/ IMF stakeholders engagement on the Regulatory Framework for Islamic Financial Institutions in The Gambia. Country first 

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Banking Practices in Lebanon and Ethical Implications In the wake of the Federal Open Market Committee's decision in March 2022 to raise the basic interest rates in the US, Lebanese banks swiftly moved to transfer liquidity to the US to take advantage of this emerging situation. What initially began as a modest $3 billion investment in 2022 has since ballooned to billions more, with estimates suggesting a staggering $10 billion invested with non-resident banks at rates surpassing 5%, averaging around 5.13% annually. It's important to note that these capital outflows occurred within the confines of Lebanese banking regulations, specifically referencing the Bank of Lebanon (BDL) Basic Circulars 154 and 150: Circular 154 mandates a minimum of 3% clean external liquidity against deposit balances in "local dollars", while Circular 150 requires 100% clean external liquidity against deposits denominated in "fresh dollars". This suggests a degree of legality and adherence to regulatory frameworks in executing these transfers. The practice embraced by Lebanese banks in response to the shifting interest rate landscape raises ethical questions regarding fairness and accountability. With US interest rates far outstripping those domestically, banks have opted to retain liquidity rather than using it to pay off depositors. This allows them to minimize liabilities at minimal cost while simultaneously earning substantial returns on their available liquidity. Moreover, it is worth highlighting the discrepancy between the earnings of banks and the lack of interest paid to depositors since early 2020, coupled with excessive commissions and charges applied on account maintenance on accounts that barely move. In addition to its implications for the banking sector, this situation highlights broader #governance and trust issues within Lebanon's political establishment. The lack of confidence in the ruling political class, often depicted as corrupt and incompetent, is particularly concerning. Given this context, bankers naturally hesitate to entrust their funds to the institution (i.e., BDL) perceived as either complicit in or victims of political wrongdoing In conclusion, the phenomenon of Lebanese banks diverting liquidity abroad in response to US interest rate dynamics exemplifies the interconnectedness of the global financial system. While technically legal and within regulatory parameters, the ethical implications of prioritizing bank profitability over depositor interests raise significant concerns. Moreover, the broader context of political instability and distrust further complicates the situation, undermining confidence in both the banking sector and the political establishment. Ultimately, addressing these issues requires a holistic approach encompassing #regulatory #reforms, #ethical accountability, and #political transparency to restore #trust and stability in #Lebanon's #financial system. Association of Banks In Lebanon International Monetary Fund

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Bold Minds for Bold Solutions: As a stellar servant, authentic and transformational leader with world-class experience, I am a graduate of the UN organization, including UNDP, UNEP, UNITAR, GIZ, and more. I am honored to join the world's largest team of UN Climate Champions. From an academic standpoint, I hold a Master of Science in Finance/MGMT and, also, an MBA in STEM with awards for outstanding performance and leadership competencies. Boldness in Effective AI Leadership for BOLD solutions: My Global Leadership Journey and Vision: Together, we become stronger to help advance Secure, and Trustworthy AI Policy Frameworks and Ecosystems. Does AI have the potential to help streamline the hiring process, tackle global challenges, and address highly complex issues? From Climate Finance to Green Economy and Climate Solutions: Discover how the work of talented experts can yield millions and billions of dollars in financial benefits for multinational organizations, multilateral institutions, and business companies. The development of robust AI policy frameworks and ecosystems is crucial for harnessing the transformative power of AI while mitigating its potential risks. Bold leadership, combined with digital growth mindset, is essential for achieving the UN 17 SDGs. 1) What is the list of the world's TOP 100 High Risks, Global Challenges, and Highly Complex Issues from Climate Change to Misinformation, Corruption and Fraud, in 2024? 2) What is Policy? Can AI have a significant impact on Policymaking? How to assess organizational preparedness, readiness and effectiveness for AI Emerging Technology and Digital Transformation? 3) How to assess organizational preparedness and readiness for Digital Transformation and AI Technology? My Global Leadership Journey: Discover how stellar leaders leverage cutting-edge technologies and harness the innovative power of AI to yield millions and billions of dollars in financial benefits for multinational organizations, multilateral institutions, and global business companies. Does AI have the potential to help streamline the hiring process, tackle challenges, and re-engineer legacy systems in 2024, and beyond? The Imperative for Bold AI Leadership: Are highly successful executives, incredibly talented experts and stellar Leaders born or made? Research and discover the traits, characteristics, habits and mindsets of the world's TOP 15 richest billionaires with a Net Worth of $100 billion? Bold AI Leadership for Bold Solutions through Predictive Analytics, Real-time Analytics, and Organizational Systemic Risk Mitigation: Find out how talented experts assess the high cost of organizational inefficiencies and oversee competencies and responsibilities in the workplace. How to use AI responsibly and ethically? How can organizations leverage AI to create a more efficient, fair, positive hiring process and success?

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Somaliland has launched the Ethiopia Transit Goods Facilitation Offices at Berbera Port, advancing trade & investment! Enhances regional connectivity Aligns with the #AfCFTA goals Strengthens East African collaboration Berbera Port’s strategic role: ➡️ Facilitates efficient transit for Ethiopia ➡️ Promotes regional integration ➡️ Drives sustainable economic Somaliland has officially launched the Ethiopia Transit Goods Facilitation Offices at Berbera Port, marking a transformative step in advancing trade and investment between the two nations. This initiative: Highlights Somaliland’s commitment to enhancing regional connectivity. Aligns with the objectives of the #AfricanContinentalFreeTradeArea (AfCFTA). Strengthens economic collaboration across East Africa and beyond. As a strategic hub, Berbera Port plays a vital role in: * Facilitating efficient goods transit for Ethiopia. * Promoting regional integration. * Driving sustainable economic growth in Africa. #BerberaPort #Somaliland #Ethiopia #TradeAndInvestment #RegionalConnectivity #AfricanTrade #SustainableGrowth #EastAfricaIntegration #AfricanContinentalFreeTradeArea #AfCFTA #AfricanContinentalFreeTradeArea #AfCFTA #TradeAndInvestment #BerberaPort #Ethiopia #Somaliland #AfCFTA #RegionalConnectivity #EconomicCollaboration #EastAfricaIntegration #SustainableGrowth #AfricanTrade #AfricanContinentalFreeTradeArea #AfCFTA

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The Ethiopia-Somaliland MoU August 15, 2024 The Memorandum of Understanding (MoU) between Ethiopia and Somaliland marks a pivotal moment in the relationship between the two entities, highlighting significant economic and strategic implications. By formalizing relations with Somaliland, Ethiopia seeks to secure alternative trade routes m. This is particularly crucial given Ethiopia’s status as a landlocked country with a rapidly growing economy that requires reliable and diversified access to international markets. The MoU also aligns with Ethiopia’s broader regional strategy of deepening economic ties with neighboring regions and expanding its influence through infrastructure development and trade agreements. By strengthening its partnership with Somaliland, Ethiopia positions itself as a key player in the regional geopolitical landscape, countering the influence of other regional and global powers. For Somaliland, the MoU with Ethiopia offers an opportunity to gain further recognition and legitimacy on the international stage. Although not officially recognized as a sovereign state by the international community, Somaliland has operated with a high degree of autonomy since declaring independence from Somalia in 1991. The MoU with Ethiopia bolsters Somaliland’s efforts to secure diplomatic and economic partnerships that support its quest for international recognition. However, the successful implementation of the MoU will depend on Somaliland’s internal political stability. The region’s political landscape is marked by clan-based politics, power-sharing challenges, and the upcoming elections, all of which could impact the effectiveness of the agreement. Ensuring cohesive governance and minimizing internal conflicts will be critical for Somaliland to fully leverage the benefits of the MoU with Ethiopia. Economically, the MoU opens the door for increased trade and investment between Ethiopia and Somaliland. Ethiopia’s interest in using Somaliland’s Berbera Port as an alternative to Djibouti’s ports could lead to significant infrastructure investments in Somaliland, boosting its economy and creating jobs. This development aligns with Ethiopia’s goal of diversifying its trade routes and reducing transportation costs for its imports and exports. The implementation of the MoU will require careful management of internal and external pressures. Both Ethiopia and Somaliland will need to navigate their respective political landscapes while ensuring that the agreement delivers tangible economic and security benefits.

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Here is an argument in support of the recent CBE service fee introduction and or increase. 👇

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National Bank of Ethiopia

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#EthiopiaFinance Governor Mamo Mehiretu’s initiative to unveil the realities of financial health represents a cultural shift for the Central Bank towards openness and accountability. The detailed disclosure can restore investor confidence and fortify public trust amid global economic uncertainties and domestic crises. The report’s findings on the Capital Adequacy Ratio, liquidity metrics, and loan-to-deposit ratios are particularly telling of the robust yet cautious financial health. Read more https://ow.ly/VsM750RlUQx

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Important news from Ethiopia ⁣👇🏼 ⁣ 𝗧𝗵𝗲 𝗡𝗲𝘄𝘀: ⁣ The National Bank of Ethiopia allows for the floating of the country’s foreign exchange.⁣ ⁣ 𝗧𝗵𝗲 𝗩𝗶𝗲𝘄: ⁣ A momentous decision to liberalize local markets and one that follows the recommendations of the IMF. ⁣ ⁣ #Ethiopia is also in the process of requesting a new IMF financing program which should hopefully be approved in the coming weeks. ⁣ ⁣ Last week official creditors had committed new financing assurances to help the completion of the new IMF loan. ⁣ ⁣ All of these steps point to significant progress in the debt restructuring of Ethiopian Eurobonds.⁣ ⁣ As we watch these reforms unfold, it's clear that Ethiopia is on the brink of significant transformation. ⁣ ⁣ Stay tuned to see how these changes will shape the country's economic future.⁣ (If you want to read the full press release, I'll leave the link in the first comment) #ForeignExchange #EmergingMarkets #InvestmentNews #EconomicReform #DebtRestructuring #IMF #FinancialMarkets #GlobalEconomy #FrontierRoad #InvestmentStrategy

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