How to Scrap Fuel Subsidies

In his inauguration speech in May, Nigerian President Bola Tinubu announced the end of the country’s decades-old fuel subsidy. This is not the first time Nigeria has attempted to abandon the policy, which has had disastrous consequences for the economy and the climate. What is new is the quiescence of ordinary citizens. After declaring plans for a nationwide strike, the Nigeria Labour Congress backed down, and no other large protests erupted.

It was an unusual response, to say the least, given that steep fuel price increases often lead to riots. When then-President Goodluck Jonathan attempted to scrap Nigeria’s fuel subsidy in 2012, widespread demonstrations and a nationwide strike forced him to reverse course. Likewise, violent protests compelled former Ecuadorian President Lenín Moreno to reinstate fuel subsidies shortly after he repealed them in 2019.

According to the BBC, people in more than 90 countries took to the streets over the cost or availability of fuel between January and September 2022.

To avoid civil unrest, the International Monetary Fund advocates a gradual phase-out of fuel subsidies coupled with targeted measures to protect the most vulnerable. But when governments lack experience with implementing social safety-net programs, citizens often will lack faith in the transition and show greater resistance to reform.

Given that trust in government in Nigeria ranks among the lowest in Africa, one would expect stronger popular opposition to the abrupt repeal of the fuel subsidy. Instead, Tinubu’s decision to take a “cold turkey” approach, and the negligible pushback he has received, signals a shift in thinking: frustrations with the fuel subsidy may now outweigh concerns about the government’s ability to implement sound public policy.

Many oil-producing countries introduced fuel subsidies in the 1970s to share the benefits of natural-resource wealth. Domestic demand could easily be met by domestic production, the thinking went, with plenty of oil remaining for export. But as market prices rose, governments failed to raise domestic prices and kicked the can down the road, for fear that reforms would fuel a political backlash. Meanwhile, domestic fuel consumption in oil-producing countries, driven by artificially low prices, steadily increased.

Major oil producers like Nigeria now must import petroleum products at market prices to meet domestic demand. Over time, fuel subsidies ballooned from modest outlays to behemoth commitments that consume a large share of government expenditures.

Low fuel prices are an important symbol for citizens in oil-producing countries, representing one of the few tangible advantages of crude reserves. Repealing fuel subsidies thus implies reneging on the promised benefits of resource wealth. And yet, as the cost of subsidies has risen, governments have had less fiscal space to invest in health, education, infrastructure, and other public goods.

In Nigeria, citizens may finally favour reform for three reasons.

For starters, they are increasingly suffering from fuel scarcity, which has led to long queues at gas stations and soaring operating costs for businesses. The war in Ukraine precipitated a spike in global gasoline and diesel prices, and the cost of transporting fuel around the country has also increased substantially. Rather than operate at a loss, some retailers have raised pump prices beyond the government-set price, while black-market fuels are exorbitantly expensive.

Moreover, the idea that scarcity would eventually ease with an increase in domestic refining capacity (the country exports crude and imports almost all of its fuel) has become less credible over time. A recent audit by Nigeria’s parliament found that despite spending 25 billion dollars over 10 years to repair the country`s refineries, they are still operating at less than 30pc capacity, leaving Nigeria to import over 95pc of its refined petroleum products.

Nigeria’s fuel subsidy has encouraged smuggling into neighbouring countries, where low-cost gasoline and diesel can be sold for at least twice the price. The scale of the trafficking is so large that protests erupted in Cameroon after Tinubu’s announcement caused the price of gasoline there to double. As Tinubu put it: “Why should we . . . feed the smugglers and be the Santa Claus of neighbouring countries?”

Nigerians appear ready to stop the outflow of their own resources to other countries, even without a guarantee that the government will channel the fiscal savings into investments that help the poor.

Lastly, the Nigerian government had provided ample warning that the fuel subsidy would be repealed this year. Outgoing President Muhammadu Buhari did not budget for it beyond mid-2023, and the Petroleum Industry Bill of 2021 mandated the phase-out of the Petroleum Equalization Fund, the entity that finances the subsidy. The silence of rival political parties underscores the inevitability of reform, unlike in 2012, when Tinubu himself protested against the proposed cuts.

Nigeria’s experience suggests that scrapping subsidies while avoiding a public outcry requires exposing their many flaws, including links to fuel shortages and black-market profiteering.

As fuel subsidies continue to wreak economic and environmental havoc, policymakers in other countries could attempt to replicate Tinubu’s strategy. The public will likely be sceptical about whether governments can cushion the impact by expanding social protection. But, especially in countries where trust in government remains low, direct experience of the subsidies’ negative effects could go a long way toward bringing citizens on board.

Multilateral Development Banks the World Needs

The world is literally on fire this summer. Experts estimate that another COVID-level public health threat will likely emerge in the next generation. Rising interest rates have left dozens of countries with unmanageable debt burdens. And for the first time in nearly half a century, the global economy is fracturing rather than coming together.

These realities shaped the recommendations that we have just made to the G20 through a special expert group on development financing (which we co-chair). Our central conclusion is that this uniquely challenging moment requires a dramatic transformation of the operations of the multilateral development banks (MDBs), starting with the World Bank. Even as developing countries face much larger financing needs to meet development and climate goals, these banks’ disbursements have not kept pace, and the degree to which they now transfer resources to developing countries is unacceptably low.

While most institutions, most of the time, aim for a gradual strengthening of their scale and effectiveness, MDBs have been stuck in place. We must move past sterile debates about whether we need more money or better policy, more green initiatives or more development spending, more public-sector programs or more private lending, more leverage or more capital. The language of “both/and” must replace that of “either/or.”

To that end, we are calling for action on three fronts.

The MDBs should embrace a triple mandate by adding global public goods to their current goals of eliminating extreme poverty and boosting shared prosperity. That will mean fleshing out the policies and procedures needed to integrate their climate and development agendas. By clarifying and formally committing to these objectives, MDBs can better design and execute programs to address these goods, such as rapidly and at scale climate mitigation and adaptation, biodiversity, water security, and pandemic preparedness.

Stakeholders should provide MDBs with the requisite resources. By our calculations, sustainable lending levels at the MDBs need to triple by 2030, rising to about 400 billion dollars annually. This includes grants and concessional finance for the poorest countries, non-concessional funding for creditworthy middle-income countries, and resources for mobilising private finance.

A top priority is to persuade donors to provide an additional 30 billion dollars annually in grants and concessional funding for low-income countries (LICs). That would allow for a threefold increase in the International Development Association’s funding by 2030, essential for helping LICs fulfil their development goals, manage global shocks, and pursue strong adaptation and resilience plans within sustainable debt frameworks.

It would also alleviate LICs’ concerns that an expanded mandate for the MDBs would come at the expense of the support they need to pursue economic and human development.

Turning to middle-income countries, about half of the amount needed to support a tripling of lending levels can be generated by the MDBs through more efficient use of existing capital. But the other half will require a new round of general capital increases. Fortunately, this mechanism requires that donors pay only a few cents on the dollar, offering excellent value for money.

Every donor dollar could yield seven dollars in new sovereign lending and another eight dollars in the direct and indirect mobilisation of private capital.

But even with a significant increase in MDB lending, official assistance will fall far short. Private capital must fill the gap. The good news is that most MDBs have departments designed to catalyse private finance in a range of sectors, including energy, health, agriculture, financial inclusion, and infrastructure.

The bad news is that their track record has been disappointing: on average, MDBs leverage only 60 cents of private capital for every dollar they commit, well below their potential. For the last six years, their collective direct and indirect mobilisation of private finance has been stuck at 60 billion and 70 billion dollars annually.

Contrast that sum with the half-trillion dollars the private sector needs to help close financing gaps. MDBs should aim at least to double their mobilisation and commitment ratios by addressing key challenges such as local-currency risk, policy, and regulatory risk, a lack of bankable projects, and insufficient risk capital. Above all, stronger risk appetites at the MDBs will be crucial to success.

A coalition of funders (including governments, philanthropies, and the private sector) should establish a new “global challenges mechanism” that offers a range of financing options, such as guarantees, equity, and other risk-sharing instruments. This is needed to address a pervasive MDB shortcoming: underusing non-lending instruments (like guarantees) for sovereign and non-sovereign borrowers. Such tools have become especially relevant in today’s volatile economic climate.

Multimate real development banks are the right vehicles for supporting our planet and its people. They alone provide the necessary combination of expertise, staying power, low-cost financing, leverage, and knowledge-sharing capabilities. But to help transform the future of developing countries, the MDBs must first transform themselves. That means embracing a wholesale culture of change to become more client-responsive and to operate better together – including through joint financing, risk sharing, and standard-setting.

We recognise that implementing our proposed agenda demands strong political leadership and the ability to stay the course. But we would point out that there is no other choice. The future of our planet and its people is at stake.

This article was provided by Project Syndicate (PS).

Actions Say More than Words: Illustrations of the EU-AU Partnership

Every day we are working to make the European Union (EU) – Africa Union (AU) partnership stronger and closer to the people of Africa and Europe. Our daily engagement testifies that the relationship between Europe and Africa is made of unparalleled human, cultural, geographical and economic links, not incantations, promises and affirmations.

At the sixth EU-AU Summit in February 2022, over 80 leaders from Africa and Europe met in Brussels to adopt an ambitious agenda and to sustain a partnership of peace, security, solidarity and prosperity based on equality, respect and mutual understanding. Europe and Africa need each other to build a solid and lasting response to global and common challenges, from climate change to peace and security or economic development that affect us all.

The partnership between the European Union and the African Union, rooted in dialogue and multilateralism, is solution-oriented and forward-looking. Europe and Africa are joint stakeholders in a multilateral, rules-based international system. The EU and its member states were among the first to express full support for the integration of the AU within the G20; the EU supports Africa in its ambitions to become a key global player.

Together, the AU and the EU can be pillars in defending a rules-based world, where sovereignty, territorial integrity and the right to self-determination are safeguarded. The European Union is deeply committed to the safety and prosperity of its neighbours, as it is also a condition for our own security and prosperity. We strive to be a reliable and predictable partner.

In times of rising global food insecurity, the EU stands by its commitment to facilitate the export of grain and other agricultural products from Ukraine. We want to repeat that from day one, the EU has exempted food and agricultural inputs (including fertilisers) from its sanctions imposed on the Russian Federation.

Complementary to the Black Sea Grain Initiative, the EU has set up the EU-Ukraine Solidarity Lanes through which almost 61 million tonnes of cereals leave Ukraine by land. While it is often quoted that only a minor percentage of agricultural products exported from Ukraine has reached African consumers directly, the combined economic effects of the Black Sea Grain Initiative and the Solidarity Lanes have resulted in a 23pc decrease in the price index for grain on the global market.

Looking beyond the immediate need to mitigate price volatility for foodstuff on the global market, the European Union will have mobilised next year almost seven billion Euro to improve food security in Africa; more than three billion euros has already been disbursed. This includes the EU’s contributions to the IMF’s Poverty Reduction & Growth Trust. Other initiatives, such as the Alliance on Sustainable Cocoa (EU, Côte d’Ivoire, and Ghana), are enhancing the resilience of food systems and the sustainability of agri-value chains.

As agreed at the EU-AU Summit, to strengthen quality infrastructure, nearly 150 billion euros of investments will be mobilised by 2027 in Africa as part of the “Global Gateway Investment” strategy. These investments are already taking place today, and the European Union is translating commitments made at the Summit into reality.

In Kenya, support is provided for the installation of fibre optics and the development of a rapid bus system in Nairobi. In Burkina Faso, the EU is the leading partner for rural and renewable electrification projects, notably the Yelen Project, which benefits 110,000 households. Investments in health (the Global Gateway flagship initiative MAV+ on manufacturing and access to vaccines with over one billion euros of investment in Rwanda, South Africa, Senegal, and Ghana) and digital (investment of up to 820 million euros in Nigeria’s digital transformation) are just two other examples.

The concrete and tangible results are here. They confirm the European Union as Africa’s prime partner at all levels, on trade, investments and development. Europe has been and will remain a long-standing partner of Africa – the recent renewal of the agreement with African, Caribbean & Pacific countries, in existence since 1975, is just one more demonstration of our commitment.

On peace and security, notwithstanding multiple crises across the globe, the EU has sustained its support to the AU and African-led peace support operations. Again, this translates commitments made at the Summit into action. For the two years beginning in 2022, 600 million euros is being allocated to these missions through the European Peace Facility (EPF), complementing support under other development instruments.

An example is EU support for the African transition mission in Somalia (AMISOM/ATMIS), amounting to 2.7 billion euros since 2007. The 11 training and assistance missions on the continent are another testimony of the EU’s support to African partners’ peace and security objectives. Africa has been and will continue to remain a key area of operations with EPF support. The total Team Europe’s commitment to Conflict Prevention, Mediation, Peace & Security initiatives at national and regional levels is expected to amount to 1.5 billion euros from 2021 until 2027.

While others seek to divide, the EU, in its partnership with Africa, seeks to deliver and foster cooperation. The commitments made by some countries do not stand up to the test of time. Conversely, the EU and its member states have consistently invested in Africa and facilitated the duty-free access of African exports in the EU.

As a tangible sign of our willingness to engage in a partnership that concretely benefits Africa, 33 of the least developed African countries have benefitted from the most favourable customs regime, removing tariffs and quotas for all imports of goods – except arms and ammunition. As of today, the EU is by far the leading trade partner of the African continent, with a total volume of 268 billion euros in 2021; 90pc of African exports enter the European Union duty-free.

The EU is encouraged by the potential of the African Continental Free Trade Area (AfCFTA). It has been supporting it since the beginning, contributing, under a Team Europe approach, with expertise, institutional capacity and exchanges on lessons learned.

The EU has its share of responsibility for global warming and is investing heavily to curb emissions in Europe. It also stands by the side of the countries that are victims of or are suffering from the consequences of global warming and need support in their climate transition. We are supporting the AU’s Great Green Wall initiative for climate adaptation with 700 million euros. We are driving forces behind the decision to allocate 100 billion dollars in special drawing rights (or equivalent contributions) to the most vulnerable countries, particularly in Africa.

The Summit for a new global financial pact held in Paris at the end of June, to which 25 African heads of state participated along with both AU and EU leadership, effectively contributed to reaching that target and has paved the way to the next Africa Climate Summit to be held in Kenya in September. Thanks to the Common Framework of the G20 and the Paris Club, an agreement has been reached on the treatment of Zambia’s debt, a historic step for this country and the Zambian people.

In all these developments, Europe is delivering.

The overall funding for development cooperation by Team Europe went up by almost 30pc in 2022 worldwide, with EU assistance to Africa increasing by 11pc for the period 2021–2027, when compared to 2014–2020. While we are working on the organisation of the next ministerial meeting between the African Union and the European Union, where we will take stock of our joint achievements to date, we wish to reaffirm our continued determination and commitment to strengthen our partnership in solidarity with Africa, with a view to contributing together to global peace, security and prosperity.

Economic Statecraft for the Green Transition

The European Union currently faces two main challenges: achieving the green transition and exercising economic leadership. Both are existential in nature. Just as the green transition is vital to protect the planet on which our survival depends, economic leadership is essential to preserve the democratic, environmentally friendly, market-based model that underpins our way of life.

Economic statecraft offers a means of meeting both challenges.

For Europeans, the exercise of economic statecraft will require a radical change of mindset. We are accustomed to being an economic superpower, but we are still learning to wield political power. The EU has always refrained from thinking in terms of economic statecraft. Its development was driven by trade, and supported by a constantly evolving but ultimately predictable rules-based international economic order.

But the world has changed. Over the last two decades, and especially in the last few years, a series of shocks – from the COVID-19 pandemic to Russia’s full-scale invasion of Ukraine – have highlighted the vulnerabilities that can arise from interdependency. As a result, the EU has undergone a “geopolitical awakening,” with member states now recognizing the need for greater sovereignty to ensure their security, not only in defence terms, but also with regard to the economy and, more broadly, Europe’s vision of the world.

This is where economic statecraft comes in. We must design economic policies that reinforce the EU’s status as a sovereign power capable of ensuring the sustainability of its economic, social, and environmental model and projecting its values beyond its borders. Such a strategy must be built on four pillars.

The first is a European industrial strategy. The EU has made significant progress in this area in recent years, especially in the last few months. With energy, for example, the EU has adopted the “Fit for 55” plan, a comprehensive policy package aimed at reducing net greenhouse-gas emissions by at least 55pc by 2030 and reaching net-zero emissions by 2050.

The EU seeks to reform its electricity market for more flexible, low-carbon electricity generation. And it is deepening internal interconnections to secure European energy supplies, thereby reducing dependency on foreign energy imports and fossil fuels.

The EU is now working to finalize yet more initiatives that would help it to maintain its lead in green technology. For example, efforts are underway to streamline and accelerate the relevant administrative processes, such as permitting and state-aid screening. The Net-Zero Industry Act, recently proposed by the European Commission, is a case in point. At the same time, France has been advocating initiatives that would bolster strategic sectors, especially those linked to the digital and energy transitions.

For example, the European Chips Act and the Critical Raw Materials Act aim to boost European production of key components in the global technology supply chain. Europe also needs to accelerate progress on battery production, which is essential to achieving carbon neutrality.

The second pillar of European economic statecraft requires strengthening our internal market and trading relationships with the rest of the world. Already, the EU is expanding its toolkit for protecting domestic businesses, with measures linked, for example, to data security and critical infrastructure. At the same time, the EU is leveraging its size to ensure reciprocity from its partners. No third-country firm can bid for a public tender in the EU if its home country does not open similar tenders to European firms.

The EU is also addressing economic coercion and market-distorting practices. Its Anti-Coercion Instrument, on which the European Parliament and the Council recently reached a final political agreement, will enable the EU to respond to economic strong-arm tactics by adversaries. Similarly, the Investement Screening Regulations, adopted in 2019, enables the EU to block foreign ownership of, or acquisitions in, strategic companies.

The third pillar is the projection of our standards and ambitions beyond Europe. To this end, the EU has launched a coordinated effort to strengthen its influence in multilateral bodies and use its power to keep these organizations focused on their primary objectives and to promote governance reforms where necessary. With measures like the Carbon Border Adjustment Mechanism and the regulation on deforestation-free products, the EU ensures that the goods it imports meet international and (often stricter) European environmental and social standards.

And in negotiating trade agreements, the EU works to reconcile three criteria: environmental sustainability, European strategic interests, and a fair balance of concessions.

The final pillar of a strategy for European economic statecraft is the use of “offensive” instruments to deter malicious action by third countries. This, of course, includes economic and financial sanctions, which have been rapidly developed and expansively applied since Russia launched its full-scale war against Ukraine. But commercial policy, more broadly, should also be aligned with foreign-policy objectives.

The EU has been applying export controls on dual-use goods for some time and will continue to do so, coordinating its efforts at the multilateral level. But more should be done. Amid deepening Sino-American tensions, the EU must choose between full technological decoupling and strengthening export controls. France calls for an EU-wide discussion about which technologies it is unwilling to export.

Let us be clear: Europe is not seeking to establish itself as a geo-economic power in opposition to any other country; instead, we seek to ensure that we remain in control of our political, economic, environmental, and social trajectory. Even as we reconcile ourselves with the need to exert more power, we will not disavow the openness central to the European project.

As a result, our international influence will only grow, and we will be able simultaneously to play the complex game that geopolitics has become and lead the world on climate action.

This article was provided by Project Syndicate (PS).

The Tapestry of Existence

I attended a grand wedding with my husband Mike over the weekend. Due to the sheer number of guests, we only caught a glimpse of the elated couple through a huge numerous screen that was set up at the venue.

The smooth proceeding ceremony was disrupted by a feud between the wealthy families of the bride and groom that erupted over their difference in caste.

It was disconcerting to witness how people could belittle and alienate one another at one of life’s happiest events.

The wedding that intended to unite the two families despite the backgrounds actually highlighted their noticeable differences, creating a tense atmosphere. They appeared resentful and lacked smiles, despite having invested millions in the event.

The couple’s family publicly underscored their division in every emotion they could bestow. Their actions had become the grand scheme of the lavish wedding.

The situation hits close to home.

Such narrow-minded beliefs are not isolated as evidenced by my similarly frustrating experience when part of the family opposed my marriage because my husband was not from a similar background.

Despite the strong support from my father and siblings, my mother declined to partake in the ceremony where elders came to our home to ask for my hand in marriage. She eventually attended the wedding after the unexpected passing of my beloved father four months prior to the big day.

Responding with tenderness and forgiveness in the face of senseless adversity while showcasing maturity in such situations will be a great lesson I took from the situation.

I was inspired by my husband and his family for graciously and peacefully handling the difficult situation. Rather than getting upset, my husband steered me to forgive my family completely. He became the wise one, treating her with respect and encouraging me to take the higher road by visiting her.

These accounts highlight the parochial beliefs in society, with negative consequences for both marriages.

Having a condescending attitude towards others lacks fundamental life merit. It stems from a distorted perspective that is far from being fulfilling and meaningful. Those who cling to a tribal mindset and create divisions lose sight of the essential things in life.

They miss out on the pleasures of living in harmony and peace with others and struggle with accepting diversity, denying the fact that humanity is one despite different backgrounds.

The lives of many individuals demonstrate that division can breed hatred not only in societies but also in families. Hatred towards others is often rooted in fear and ignorance. When we are afraid of the unfathomable, it is easy to develop negative stereotypes about a group.

Harbouring hatred can create long-lasting conflicts among families, societies, and political leaders. Hate is a temporary emotion, just like any other, and should not be a permanent state.

I believe that the best way to overcome hatred is through education and understanding. When we learn about diversity, we can begin to see that people from different backgrounds are more alike than they are different.

We can learn to appreciate the unique contributions that each group of people makes to society.

Many individuals belonging to different castes tend to portray themselves as victims of various circumstances, thus avoiding accountability for their irrational perspectives. They shield themselves from the reality that every human being is equal, regardless of any manipulative societal norms that may suggest otherwise.

In order to make progress, an acknowledgement that all individuals are created equal, regardless of their diverse backgrounds must be asserted, as a negative outlook, whether mild or extreme, begins in the mind.

Psychologists suggest that most problems arise from this tendency to focus on the past. The mind tends to travel through time and often dwells in the past, reliving moments of regret or sadness. This leads to the generalisation and assumption that everyone from a similar background is the same. It is important to give people the benefit of the doubt and get to know them as individuals.

Regardless of personal preferences, it is important to acknowledge that people learn to be respectful and create a harmonious societal experience.

Situations may not change, but our reactions should have to make a world of difference. Every bit of our action contributes to our personal narrative and our unique masterpiece way of life.

When society releases frantic obsession with simply being in a romantic relationship, they can envision a world where communities are united in peace.

Embracing our inherent nature reminds us that we are all equal. Even those who hold hatred towards others may come to their senses and acknowledge they are no better than anyone else.

Navigating a Maze of Red Tape

I dread customer service at public offices.

When I last visited a government institution, I was requested to provide a receipt which I decided to save in case I needed it later after taking a photo. However, the receipt was partially intact, which caused trouble.

I presented the receipt to the coordinator, but she was taken aback and refused to sign it. She explained that it was torn and there was no space for her to sign, instructing me to bring a new one.

I had to travel to the nearest bank to request a new receipt. However, I learned that I could only obtain one from the branch where I initially received it, which was further away.

In the meantime, I was experiencing back pain that made it difficult to move around. I had planned to go to the hospital, but I did not disclose this to the lady, assuming she would not understand.

I had to find another way to be done with it. So I went to a shop and colour-printed a copy from my phone and went back to the desk. The lady said that I seemed careless and should keep my receipts safe next time while I nodded in agreement.

She wrote something on the back of the receipt and directed me to the finance department. But when I got there, they sent me back to her. Eventually, she took my number and promised to call me when the issue was resolved.

I have not heard from her yet.

Looking back, I realise that tearing the paper was not the smartest decision. However, I believe that the person in charge could have easily checked with the finance team through any digital communication medium to see if my issue had been resolved before sending me on a wild goose chase.

Unfortunately, it is not the first time I have encountered this type of back-and-forth. It is unfair for customers to have to navigate multiple floors and departments to receive a single service.

Several customers have expressed their dissatisfaction with the services they receive at public offices, stating that they often take longer than necessary.

A close friend of mine was a victim of this unfair ordeal. When obtaining an identification card, customers had to wait in line as early as 5AM, before they could fill out paperwork and schedule appointments to pick up their IDs once they were ready.

Only a small group of up to 15 people are served until midday and those who arrive later are asked to return another day. While this may not be the case for all, it has become normalised that receiving good service is almost a surprise.

Despite the fact that Ethiopia is transitioning towards a cashless society and making online fuel purchases, departments continue to face challenges in effective communication.

Irrespective of the advancements in technology, customer services at public offices leave many dissatisfied. The issue needs to be addressed through integration, communication training and the appointment of capable people.

The lengthy process for relatively easier services such as ID renewals makes people dread going to the offices. The hustle discourages individuals from starting their own businesses or loathing the process as I did.

JOLLY JOUST

Youth in the Gofa condominium play soccer to pass through summer, with schools being closed until September. Reports that over 70pc of students that sat for sixth and eighth grade national exams passing has been a pleasant shift from a trend that saw 900,000 prospective university students and 70,000 graduates failing to attain a passing mark. Under the helm of Birhanu Nega (PhD), the Ministry of Education has sought to bring about a rapid and radical reform to the education of the nation both to the delights of elderly parents and the heartbreak of students.

 

AESTHETIC ABERRATIONS

A construction project around the financial district of Mexico area envelops a traffic light. The lack of proper road signs and necessary traffic lights was a contributing factor to the capital averaging around 8,000 accidents a year where close to 15pc were fatal. The lack of proper construction modalities and an arbitrary set of laws during the issuance of building permits also cause unnecessary traffic jams and accidents. As part of a city-wide effort to create a uniform transport landscape, the Addis Abeba Transport Bureau has banned rickshaws from main roads and seeks to push Russian-produced Lada from the city’s streets. While aesthetics remain to be the concern of the authorities, the capital’s transport industry is ranked 162 in the world by Startup Blink.

PLUMP PICKINGS

A kilo of grapes sells for 400 Br around the Saris area by street vendors. Fruits contributed 11 million dollars to the country’s exports last year despite the conducive climate to most types of horticulture. Ethiopians consume less than 100gm of fruit daily, according to studies by FAO which is unsurprising considering that a mere 17pc of the population can afford a healthy diet. With 60pc farmers in the country cultivating less than 0.9hct in a fragmented landscape, the low yield of the agricultural sector is to be expected

Tigray, Amhara, Afar Regional States Break New Ground with 32m Euro Agricultural Assistance

A project that aims to address food insecurity by improving agricultural productivity in conflict-affected areas was launched by the Agricultural Transformation Institute (ATI) last week.

The Food Security & Agriculture Rehabilitation Measures (FARM) project aims to rehabilitate the production of pulse, cereal apiculture, poultry and horticulture sectors while strengthening small-scale irrigation.

The 32 million euro project is financed by the French Development Agency (AFD) and the European Union (EU) and launched at Capital Hotel, Haile Gebresilassie Street.

According to Remi Maréchaux, French Ambassador, post-conflict and crisis recovery is a sensitive period when humanitarian assistance is progressively diminishing and longer-term intervention needs to be started with the risk of an institutional vacuum in the transition phase.

“The efforts by France and the EU started by supplying improved seeds to Amhara and Tigray ahead of the rainy season,” he said.

The deputy ambassador of the European Union, David Krivanek (PhD), said the project aims to improve food security and nutrition in the long term by providing access to drought-resistant seeds.