Rows of metal cups offer liquid solace for mourners going to the cemetery around Yeka Michael Church. An eerie optical illusion occurs as the row of cups seem to curve alongside the winding road. Traditional drinks made of cereal variety (Rhamnus prinoides) and Gesho and fermented honey are often served as refreshments in Ethiopian ceremonies of celebration and mourning. While tea and water are also offered in metallic cups colloquially known as nickel, a cold offering during social occasions often caps gatherings.
Month: April 2024
SLEEK SLABS
A street food vendor around the Stadium area pockets his inventory on a cosy corner wall. The area is being renovated as the eponymous soccer field’s protracted construction nears completion. Bicycles for rental, informal driving instructors and the make-shift tent shops synonymous with the area are being slowly removed. The six-decade-old stadium has been under construction for five years due to changing contractors and skyrocketing input costs. Kejela Merdasa, the minister of Culture & Sports, has recently placed a deadline for next year.
CERAMIC SILHOUETTES
A new statue with emblems of the African Union hoisted atop traditional Ethiopian warriors casts a towering shadow across city hall near the Adwa Zero Kilometer Museum. The gargantuan project, spanning 45,000sqm, has recently opened its doors to the public to significant fanfare. The 4.6 billion Br project is made of 11 blocks that have auditoriums that can house 4,000 people at a time, galleries, gyms and art installations. A connecting bridge to the Mayor’s office located across the street has already been built
City Approves Supplementary Budget for Capital Projects
Mayor Adanech Abiebe updated the City Council on the corridor development project during a meeting. While progress has been made, there are outstanding issues for some residents. An estimated 20pc of the 5,135 households impacted by construction have not yet received compensation or replacement housing.
The Council approved a supplementary budget of 21 billion Br for the current fiscal year, which ends in two months. Over 90pc of these funds are earmarked for finalising capital projects, with a primary focus on road construction.
This decision follows a significant budget increase last year. The City’s budget rose by 40pc to reach 140.29 billion Br. According to Abdulkadir Redwan, head of the Finance Bureau, the additional funds are necessary to complete road projects, implement greening and environmental protection initiatives, compensate residents affected by construction, and procure materials for healthcare institutions.
Oromia Insurance Makes Historic Payout to Farmers
Oromia Insurance S.C. facilitated a 39 million Br payout in claims to Amhara Regional State farmers who suffered crop losses due to pest and drought.
The initiative involved key stakeholders including the World Food Program (WFP), the Agricultural Transformation Institute (ATI), Pula Advisors, Agriculture and Finance ministries, and German development organisations. Spearheaded by Pula Advisors, the program has reached over 122,000 smallholder farmers, providing insurance against climate risks and diseases.
With an ambitious target of 7.5 million farmers, the project offers comprehensive initial coverage, focusing on crucial inputs like fertiliser. Dagmawi Haile, Pula’s Country Manager, anticipates expansion into Oromia and Tigray regional states in the coming year. He said the initiative has the potential to improve insurance penetration in Ethiopia’s agricultural sector, which currently contributes less than one percent to the GDP.
“As more farmers participate, premiums will decrease,” he told Fortune.
Ethio telecom Rolls Out Nationwide Digital ID Registration
Ethio telecom has launched a nationwide digital national ID registration program across 19 locations in Addis Abeba and 29 towns nationwide. With plans to register up to one million citizens a month, targeting to reach 32 million people within the next three years. The target represents 36pc of the total national goal of registering 90 million citizens.
This program leverages the telco’s extensive ICT infrastructure and network services in partnership with the national ID program office, led by Yodahe Araya. Partnerships with institutions like banks will expand the program’s reach and functionalities.
The system will use biometric data to ensure user privacy and security. With a 350 million dollar investment from the World Bank, the digital ID system promises a streamlined service delivery system, enhanced financial inclusion through easier access to financial services, and expanded credit opportunities.
Bankers’ Association Takes Billion Birr Stride in Digital ID Registration
The Ethiopian Bankers’ Association (EBA) is advancing a national digital ID initiative, awarding a contract to Lamino Engineering S.C., which teamed up with South Africa’s BioRugged to supply vital registration kits.
Established six years ago, Lamino Engineering, known for its work with Huawei on the CBE Birr project, will leverage its expertise in IT infrastructures and digital banking solutions.
“We’re confident in our capacity to fulfil the project’s goals,” said CEO Kidus Gebreselassie.
A consortium of 21 banks, under the Association’s umbrella, is coordinating closely with the National ID Project Office to accelerate the digital registration process over the next two years. These banks are funding the procurement of the registration kits —each priced at up to 3,500 dollars and totalling about 21 million dollars — but also in facilitating the registration process. The federal government is financing 95pc of the project’s cost projected close to one billion Birr, stating its commitment to integrating advanced digital identification systems into the banking infrastructure.
The agreement between Lamino and the Association was signed last week at the Commercial Bank of Ethiopia (CBE) headquarters, located on Ras Desta Damtew Street.
Parliament Calls for Stronger Legislation
Parliamentarians expressed concern over the rise of sexual violence during the Ministry of Women & Social Affairs’ nine-month performance report, last week.
Minister Ergoge Tesfaye (PhD) acknowledged the need for stronger legislation. She outlined ongoing partnerships with the Ministry of Justice and the Ethiopian Legal Women’s Association to revise existing laws, crucial to effectively combat female genital mutilation, early marriage, and rape.
While the Ministry highlighted efforts such as the 16-day anti-sexual violence movement to raise awareness, lawmakers pointed out critical shortcomings such as inadequate youth development centres and the increasing problem of child migration.
Green Revolution Startups Aim a Million-dollar Kickstart
Ethiopia’s fight against waste and the promotion of a circular economy received a 1.6 million dollar boost to empower young entrepreneurs focused on lowering waste generation and promoting environmental sustainability. Reach for Change and the IKEA Foundation have joined forces, launching a three-year project that aims to support reusing, repairing, and recycling materials.
Building on a successful pilot project that created over 150 jobs, the new program seeks to empower a total of 105 green businesses. Elsabeth Tsegaye, program manager at Reach for Change said they will receive crucial support, including training, coaching, access to markets, and equity-free funding ranging from 5,000 dollars to 10,000 dollars to help them develop sustainable business models and expand their operations.
This initiative comes at a critical time. Ethiopia currently struggles with low recycling rates and underdeveloped markets for recyclable materials. The program recently unveiled finalists from its previous Green Business Incubator, including Husky Energy & Technologies and Askema Engineering. During the launch event held at Hyatt Regency, Africa Avenue (Bole Rd), some of the participating startups showcased their innovative ideas, such as transforming plastic waste into building materials.
Water, Energy Sectors Struggle to Meet Financing Goals
Development partners have fallen far short of their financing targets for Ethiopia’s water and energy sectors over the past five years. Despite a target of six billion dollars, the energy sector received only a fraction of one billion dollars. Electrification projects remain stalled due to this lack of funding.
The World Bank was the largest contributor, providing over 600 million dollars in loans and grants. A recent discussion at the Ministry of Water & Energy headquarters brought together representatives from the World Bank, UNICEF, and GIZ to discuss the challenges and opportunities in achieving universal access to electricity and water.
In the past five years, only an additional 1.4 million people gained access to electricity through these financing programs. This leaves nearly half (49pc) of the Ethiopian population without electricity.
According to Mesfin Dabi, head of electrification and information at the Ministry, factors such as scarce financial resources, improper resource utilisation, poor management, and security concerns, hamper the process.
The water sector faces similar challenges. While development partners provided 589.83 million dollars over the past five years, this still fell short of targets. The World Bank has pledged 1.5 billion dollars for the next five years, to be implemented in three phases.
Minister Habtamu Itefa (PhD) emphasised the importance of coordinated efforts, highlighting the recently drafted WASH (Water, Sanitation, and Hygiene) strategy and the year-long development of a new energy policy. These initiatives, he believes, will be instrumental in transforming the water and energy sectors.
Participants also stressed the need to involve the private sector in developing strategies and policies to address the water crisis.
UNDP’s “Timbuktoo” Initiative Nears Launch in Ethiopia
A United Nations Development Program (UNDP) initiative, ‘Timbuktoo,’ which aims to mobilise one billion dollars and invest in Africa’s start-up ecosystem, has moved closer to establishing its ninth hub in Ethiopia.
A pre-launch event was held at the Science Museum, attended by Belete Mola, minister of Innovation; Brook Taye (PhD), director general of the Ethiopian Capital Market Authority and Ahunna Eziakonwa, assistant secretary-general and director of UNDP Africa Bureau; last week.
Brook said the government is willing to remove bottlenecks for startups, like office requirements for business permits, tax incentives, and customs exemptions. A five-year-in-the-making startup proclamation is also being pushed through the legislative grill, giving startups an actual business category under which to be treated.
Ethiopia’s current start-up ecosystem comprises around 350 companies valued at around 83 million dollars and highly concentrated in the capital.
Named after the historic city in the heart of Mali known for its opulence and prestige, the project looks to become a catalytic force in a flourishing continental startup economy which can create 10 million jobs in 10 years. Ahunna highlighted the importance of wealth creation, which can serve communities just as much as it has historically benefited individuals by creating supply chains across the continent that serve each other.
UNIVERSITIES CUT CORNERS WITH LEAN CUISINE
A dire situation unfolds across public universities, where students face the harsh reality of declining food quality and quantity, a problem seen as a manifestation of a broader crisis across the higher education system. Over the past three years, college students have seen a reduction in the variety and portion sizes of meals, compounded by rising food prices. It forces many to reconsider their meal plans, despite the universities’ billions of Birr in annual budget. The struggle to maintain adequate food services amidst inflation is a common thread across the country’s higher education institutions. With a paltry daily food budget of 22 Br for a student, universities are barely keeping up with the rising cost of living, which outstrips the nominal increases in their budgets.
Guche Gule, the recently appointed president of Wolaita Sodo University, has had to alter the cafeteria menu to include cheaper staples like rice and pasta more frequently due to the soaring costs of traditional ingredients. At Arbaminch University, 500Km south of the capital, the crisis has led to the breakdown of established supply chains. Student leaders say the University is now buying food directly from vendors as temporary relief after the primary food supplier withdrew due to the untenable economic environment. Dila University has cut its academic year by 15 days to stretch its budget further, uncovering the depth of the financial woes faced by these institutions.
The situation is exacerbated by a national policy that has not adjusted adequately to the economic realities. Despite a recent increase, the daily meal allocation of 22 Br for a student is grossly insufficient compared to the rising costs of essential commodities, leading to significant nutritional and academic repercussions. Samuel Kifle, acting president of Addis Abeba University, advocates for a more targeted approach to financial aid, urging scholarships for the neediest students and a thorough overhaul of the subsidy system.
In response to the escalating crisis, a consortium of public universities has been actively lobbying the federal government for increased funding. The Ministry of Education has formed a committee to explore long-term solutions, including the possibility of university autonomy and the introduction of student loans and financial credit systems — strategies that aim to address the dependency on state subsidies. The broader economic context cannot be ignored as the federal government wrestles with a budget deficit and prioritises austerity measures, including debt servicing, which consumes a considerable share of the national budget. Its fiscal conservatism affects higher education institutions and the broader economy, challenging the sustainability of public higher education in an era of acute fiscal constraints and calls for solutions to preserve the academic future of the country’s youth.
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