Officials of the Tigray interim administration have urged the state-owned Commercial Bank of Ethiopia (CBE) to resume investment in the regional state.
Led by Tigray Interim Administration (TIA) president Lt. General Tadesse Worede, regional officials traveled to Addis Ababa this week for discussions with their federal counterparts. Talks with CBE executives were on the schedule for Friday.
Tadesse reportedly urged the bank to invest in sectors like construction to reduce the region’s high unemployment rate. Tadesse and his deputy, Amanuel Assefa, also requested CBE to provide loans for more than 60,000 people seeking housing in Tigray, according to a statement issued by the bank.
The request came a few days after the federal government notified commercial banks about the lifting of an embargo that had been placed on companies under the Endowment Fund for the Rehabilitation of Tigray (EFFORT) during the two-year war.
From The Reporter Magazine
The conglomerate had been the subject of an intense power struggle between Tigray’s political elite, with the TPLF faction led by Chairman Debretsion Gebremichael on one side and former TIA chief Getachew Reda on the other.
The TPLF has reportedly been attempting to replace EFFORT’s board and management team with loyal supporters since Tadesse replaced Getachew at the helm earlier this year. However, the opposing side, which includes former EFFORT CEO Beyene Mikru, managed to secure a court order to stop TPLF’s intentions for a reshuffle.
As TPLF moved to have the decision repealed, Getachew and his allies managed to secure a freeze on all accounts tied to nearly two dozen subsidiaries under the EFFORT conglomerate.
From The Reporter Magazine
TPLF leaders and TIA officials have decried the freeze as severely impacting Tigray’s post-conflict recovery efforts. TPLF also has been using the situation as a political instrument to amplify tensions between Tigray and the federal government.
However, this week, as the TIA delegation headed by Tadesse arrived in Addis Ababa, the federal government lifted the injunction on EFFORT bank accounts.
A letter addressed to commercial banks from the Ministry of Justice states that the freeze on the bank accounts of 22 companies including Sur Construction has been lifted.
An official close to the matter expressed hope that the development will help ease tensions.
“The lifting of the ban is also good as several people in Tigray, including Dedebit MFI clients, can now access their accounts. Yet, the board and management of the conglomerate is still on the side of Getachew’s group,” the official told The Reporter.
Ephrem Mekuria, CBE vice president, told Tadesse’s team that the bank has been contributing to Tigray’s reconstruction in terms of rebuilding schools, health facilities and others, and will continue investing in the region.
Other topics the TIA delegation discussed with the federal government were not made public.
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