Turbines start producing electricity

Africa’s largest hydroelectric plant started producing electricity this week. Under construction since 2011 the dam is expected to double the Ethiopia’s electricity generation capacity. It’s existence has been hugely controversial, Egypt and Sudan have continuously expressed concerns as they are very dependent on the Nile for drinking and irrigation water. Power generated by the Grand Ethiopian Renaissance Dam (Gerd) is expected to be exported to neighbouring countries and therefore become an important forex earner for the Government and potentially allow for a softening of the current forex restrictions which are crippling exporters.

On the coffee front this week as been a much quieter week than the last two, due primarily to the Terminal market’s retraction following the events unfolding in Ukraine; additionally shippers sold a lot during the first 3 weeks of February and are now focused on covering commitments rather than increasing sales.

Birr 50.77 = USD 1

Have a good weekend