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Month: April 2024

Prosperity Party Tries Economic Tightrope Walking Without a Net

Posted on by Tizita S.

The Prosperity Party (PP) – Prosperitians – is charting a course through treacherous waters. The party, which emerged from a fragmented political order, touts a liberal economic agenda in contrast to its conservative social policies and a seemingly disoriented political posture. Despite an ideological vacuum, it has initiated substantial reforms, most notably in its economic strategy, by phasing out subsidies on essential commodities such as electricity, fuel, and college fees.

These policies are designed to target a balanced and healthy macroeconomic environment through a moderate budget deficit, aiming at long-term benefits.

However, these measures come at a delicate time, fraught with social, economic, and political volatility.

Economic policies that include austerity measures, such as cutting subsidies, tax increases, or tightening the budget, are often deemed necessary for long-term financial health. However, they demand short-term sacrifices that many citizens, especially in economically vulnerable sectors, are either unwilling or unable to make. Prosperitians believe they have a mandate to rule, having secured electoral victory in the national elections of 2021.

Nevertheless, the legitimacy of this mandate is widely contested. International observers, including the United States and the European Union, criticised the electoral process as unfair and its outcome as not credible. The failure to hold votes in tens of constituencies, including the entire Tigray Regional State, has left gaps in the federal parliament.

This political backdrop casts a shadow over Prosperitians’ economic policy decisions, whether devaluing the Birr as the ongoing negotiations with the International Monetary Fund (IMF) require or removing long-held subsidies targeting low-income groups. An incumbent party with a tenuous hold on legitimacy faces profound challenges and resistance when implementing policies that are unpopular yet deemed economically necessary.

The timing of such policies could hardly be worse in a society deeply polarised, where the political elite’s grasp on power is vigorously contested, including through violent rebellions. By the very admission of the statement issued last week by the National Security Council, several of the regional states remain battlegrounds for vertical and horizontal violent conflicts. The country is not out of the woods, not even in Tigray, where the federal government signed an accord with the TPLF in Pretoria, South Africa, to ensure a durable hold on hostilities.

Economic liberalisation measures, including the phasing out fuel subsidies, which have been implemented gradually over the past few years, illustrate the Prosperitians’ policy approach. Despite efforts by Governor Mamo Mehiretu to reorient the central bank to target inflation and price stability, the impacts on inflation have been moderate. But his move suggests that a measured approach can mitigate some of the immediate economic shocks. Monthly inflation dropped by two percentage points in March to 26pc, from an average of 33pc in the same period last year.

Yet, the broader economic context remains dire. The increase in spending has stretched the national budget. The country faces a towering budget deficit of about 284 billion Br, compelling Prime Minister Abiy Ahmed’s (PhD) administration to make tough decisions on public spending.

The federal government expenditures surged, driven by significant investments in social and economic services, alongside substantial regional transfers, leading to a pronounced budget deficit, inching to four percent of the GDP. The period saw social services, which include health and education, receiving a hefty 19.5 billion Br for the fourth quarter of last year, marking a notable increase from the previous fiscal year. Economic services, encompassing agricultural support, received two billion Birr, while regional transfers, intended to bolster local governments in their service delivery, stood at an impressive 64.9 billion Br. These figures reflect a government strategy deeply invested in subsidising sectors vital for growth.

The year-on-year total government spending shows a 13.1pc surge, showing growing budgetary pressures, possibly exacerbated by the rising costs of subsidised services, if not ballooning military spending. Despite a 19pc increase in revenue over the same period, it was insufficient to keep pace with the expenditure, further deepening the fiscal imbalance. The persistent deficit and heavy reliance on borrowing to finance it should pose serious questions about long-term fiscal sustainability.

With considerable funds flowing into subsidised sectors, particularly commodities such as fuel, fertiliser, and seeds, the efficiency and targeting of these subsidies demand a careful reassessment. No less is the IMF pushing for fiscal consolidation as one of the stringent conditions before agreeing to a three-billion dollar bailout to ensure a more sustainable fiscal pathway.

James Vreeland (PhD) of Princeton University, a scholar in international political economy, points out that governments often use international financial institutions like the IMF as scapegoats to deflect domestic discontent over harsh economic policies. Known for insisting on strict fiscal controls, the IMF has, in recent years, faced criticism for advocating austerity measures during periods of political and economic instability. Recognising the potential for such policies to exacerbate rather than lessen crises, the IMF has sometimes urged countries to slow the pace of austerity measures, such as subsidising essential goods.

Subsidies are commonly viewed as market distortions but provide substantial relief and economic stability to tens of millions. Countries globally, including market giants like the United States and China, inject substantial funds into their economies through subsidies ranging from fossil fuels to electric vehicle production. The debate over subsidies often centres on their long-term economic distortions against short-term social benefits.

In Ethiopia’s case, the gradual removal of these financial supports occurs against a backdrop of widespread political, economic and social crises, including an acute foreign currency shortage sufficient for only three weeks of imports, 4.6 million internally displaced citizens, and 21 million people in need of emergency humanitarian aid.

Prosperitians’ economic strategy is fraught with risk. Implementing unpopular policies under a contested mandate could ignite political instability and protests, potentially undermining their already shaky legitimacy. Public trust may erode further with each new economic policy measure, particularly as adversarial groups could seize the opportunity to fuel public discontent and challenge their authority more vigorously. The international implications are no less considerable; failed economic policies could lead to reduced financial aid and cooler diplomatic engagements, further isolating the country on the global stage.

As subsidies on electricity are set to be slashed again next year and budgetary support for universities has already been cut, the socioeconomic impacts are likely to be severe. While Prosperitians contend with these manifold troubles, the economic environment continues to be dominated by state-owned enterprises in key sectors such as finance, telecommunications, services, and logistics. The removal of subsidies, therefore, does little to promote market dynamics that could be characterised as

competitive or undistorted. The savings they crave from slashing subsidies might shift the burden to the already strained population segment in the fixed-income category.

Vreeland suggests that a deep understanding of political dynamics and public sentiment is the path forward. Effective communication about the necessity, expected outcomes, and duration of economic policies could help manage public expectations and mitigate backlash. However, seeking broader consensus through negotiated political settlements could diffuse tensions and promote a more inclusive political system. Sadly, the two-track policy Prosperitians manoeuvre – and the diplomatic community in Addis Abeba conveniently dance with – have little leverage to help bring such consensus. Whether national dialogue or transitional justice, these are platforms with hardly any credibility in the eyes of the adversaries to help bring negotiated settlements through grand bargains.

Ultimately, the intersection of contested political mandates and the implementation of unpopular economic policies presents troubled waters for any ruling party. The stakes are invariably high, with political stability and the economic future hanging in the balance. Foresight and delicate touch will be essential as Prosperitians steer through the storm, balancing the imperative of economic reform with the political and social realities of the population they govern. Gradually phasing in policies could also allow the public time to adjust, potentially softening the immediate shock and reducing backlash.

 

Higher Learning Hunger Games

Posted on by Web Master

Eden Girma, a 21-year-old architecture student at Wolaita Sodo University in Southern Regional State, dreads her daily trek to the cafeteria. Over the past three years, she has witnessed a steady decline in both the quantity and quality of food served. Meals that once included Rice and Firfir as side dishes three times a week have vanished from the breakfast menu altogether.

“We only get a tiny piece of bread,” Eden said.

Lunch and dinner have not fared much better, according to Eden, with portions shrinking and the quality of food deteriorating. In spite of rising food costs, Eden is seriously considering opting out of the on-campus meal plan for her remaining two years.

“It keeps getting worse,” Eden told Fortune.

The situation is similar in other universities. With a meagre 22 Br daily budget for a student, public institutions like Wolaita Sodo University, with an annual budget of 1.04 billion Br, are struggling to keep pace with inflation as the cost of essential commodities surges.

A month ago, the 17,000 students who are on-campus meal plan at the University were informed of a menu reduction to cope with rising food costs.

Six months into his appointment as president of the University, Guche Gule (PhD) has found it difficult to balance high food inflation and cafeteria demands. He says the sharp rises in the price of essential commodities like teff, onion and red lentils required a revision to the menu.

“We had to increase the frequency of rice and pasta,” Guche told Fortune.

The issue extends beyond shrinking portions and tighter menus. The University’s struggle is emblematic of a nationwide fiscal squeeze faced by the 47 public universities, which find themselves bearing the brunt of an austere government orientation. Federal budgetary allocations have increased in nominal terms by around two billion Br over the past two years, while effectively declining in real terms due to the nearly 30pc inflation rate.

Universities like Arbaminch University, located 500Km from the capital, face difficulties securing basic supplies. Their primary food supplier recently withdrew from their contract due to rising food costs, leaving the university scrambling for alternatives.

Ayelegn Gota, head of Student Services at Arbaminch University, explained that they have resorted to buying directly from vendors until a new tender can be issued. He said it has disrupted established supply chains and requires manoeuvring their already strained 1.2 billion Br annual budget.

“Inflation ate up our food budget,” Ayelign said.

Some are taking alternative measures. Dila University, 300Km from the capital, has resorted to reducing the academic year by 15 days, to squeeze the most out of its 925 million Br annual budget.

According to Alemayehu Akalu (PhD), vice president of administration affairs & research at the University, along with 30 million Br supplement from the Ministry of Finance, they have exhausted their 66 million Br allocated food budget within four months.

“Primary culprit is the sharp rise in teff prices,” said Alemayehu.

The University’s 10,000 students will face a shorter semester, a measure expected to save around 10 million Br. However, Alemayehu estimates an additional 90 million Br annually would be needed to meet student needs at 64 Br for a student daily. This is nearly three times the current national allocation.

“We are in a difficult place,” he said.

The declining quality of food is also impacting student morale. Bemnet Tesfa, a 19-year-old enrolled in the remedial program at Dila University, is reevaluating his future. Having failed to meet the university entrance requirements last year, Bemnet hoped to join the computer science program after completing the preparatory courses.

“I might not continue if things go on like this,” he told Fortune, expressing his disappointment with the current situation.  Bemnet recently witnessed a student dissent at the cafeteria doors, where students voiced their disapproval about the poor quality of Shiro.

“It was a strange yellow liquid,” Bemnet said, “I couldn’t bring myself to eat it.”

Ethiopia’s ambitious expansion of higher education in the last decades created over 47 public universities, increasing access. However, funding for these institutions has not kept pace with rising costs and the growing student population.

Last year, the daily meal allocation for a student was raised from 15 Br to 22 Br, after a decade. The universities’ purchasing power and their ability to provide adequate meals for students is further eroded by inflation, estimated by economists like Steven Hanke from Johns Hopkins to be around 60pc, almost double the government’s reported rate.

A consortium of public universities is actively lobbying for changes to the food budget. Samuel Kifle (PhD), acting president of Addis Abeba University (AAU),  was selected as the Board Chairman last November. He sent a letter to the Minister of Education Birhanu Nega (Prof), highlighting the significant gap between the daily allocation and the actual cost of food.

“Universities are barely functional,” said Samuel, comparing the commercial price of a piece of injera now exceeds the daily budget allocated for a student.

While Samuel doubts a simple increase in the current allocation will solve the crisis, he proposes a more targeted approach. He suggests a “scholarship” for underprivileged students, potentially distributing the subsidy burden based on financial need.

Looking towards the long term, Samuel emphasises the need for a complete overhaul of how university subsidies are calculated. Addis Abeba University, which serves up to 20,000 students daily, spends 130 Br for a student (almost six times the national allocation). Samuel described survival as a “magical means.”

“The current system,” he argues, “is unsustainable.”

Officials at the Ministry of Education responded to the Consortium’s letter. Minister Birhanu established a committee chaired by Solomon Abraha (PhD), head of Administration & Infrastructure. This committee, comprised of members from four universities, is tasked with creating policies to address the food crisis.

Solomon anticipates a gradual shift towards university autonomy, following a three-month study of 12 universities.

“Several modalities are being considered,” he told Fortune.

The Ministry has not ruled out student loans and financial credit systems, common in developed countries, as potential solutions to lessen reliance on subsidies.

Solomon believes university autonomy would offer significant benefits. He said universities would gain the flexibility to admit students based on financial feasibility and potentially become more prudent in managing expenses.

“Long-term solutions are necessary to sustain the budget,” Solomon said.

Research from Boston University reveals that inefficient management of scarce financial resources is contributing to the budget deficit faced by Ethiopian universities. The report highlights the mismatch between the limited revenues universities generate and the vast resources needed to support hundreds of thousands of students.

This inherent budget deficit has reached a boiling point. Last year, teachers and technical assistants across multiple public universities went on a five-day strike demanding better wages and benefits, further highlighting the financial strain on the system.

University lecturers like Amitsu Kuma at Wolaita Sodo University fear the diminishing research budget will stifle career advancement opportunities. He said meagre income is overshadowed by the concern that research funding is disappearing altogether.

The proposal for university autonomy is not without its challenges. While Addis Abeba University, with its larger budget of 2.3 billion Br annually, has begun covering 20pc of its expenses, paving the way for autonomy, other universities face a steeper climb.

In Oromia Regional State, 350Km from the capital, Jimma University illustrates the difficulties. Gemechis File (Prof), Vice President of Administration & Development, said campus management was recently forced to divert a 100 million Br research grant to address immediate food shortages for 14,863 students using the cafeterias. This financial strain comes on top of a 60pc reduction in the capital budget, leaving it with only 250 million Br this year.

“We’re stretched thin,” he told Fortune. “I hope autonomy brings financial relief.”

The current crisis is the result of a confluence of factors. Experts suggest while the number of new university entrants has declined to around 170,000, likely due to changes in curriculum and exam procedures, it has not resulted in a corresponding decrease in government spending. They criticise the current proposal for autonomy as merely “theoretical” that lacks a practical foundation for success in the local context.

Economist Arega Shumete (PhD) casts doubt on the effectiveness of university autonomy as a solution. He argues that stricter government spending discipline is the more pressing issue. While acknowledging the strain caused by conflict and debt on the national budget, Arega emphasises that education should remain a top priority.

He challenges the current proposal for autonomy as rushed and poorly planned. Unlike countries like Uganda where university autonomy evolved, said Arega, Ethiopia’s universities lack the experience and infrastructure to thrive independently.

“No one in the university staff even knows how to get a grant,” he said, highlighting their unpreparedness for financial self-sufficiency.

Arega’s biggest concern lies with the potential impact on students. The introduction of tuition fees could discourage many from pursuing higher education, particularly in a country with high unemployment rates.  He argues that many students would be forced to drop out, sacrificing their futures due to immediate financial pressures.

For Arega, a long-term solution requires a multi-pronged approach. He recommends improved tax collection to generate more revenues, stricter reforms in public spending management to eliminate waste, and a clear prioritisation of education within the national budget.

With a budget of 801.6 billion Br, the federal government is prioritising austerity measures. Nearly 20pc is allocated to debt servicing, with no new capital projects planned for this year. Tilahun Weldu, budget director at the Ministry of Finance, emphasises the need for fiscal discipline, particularly in an inflationary economy with a staggering 284 billion Br budget deficit. He argues that subsidising universities with “generally poor financial management practices” is unsustainable when the capital budget is already squeezed.

“The economy went through a series of shocks,” he told Fortune, “We can’t keep spending money we don’t have.”

EU Firms Cry Foul Over Tax Appraisers Less Predictable Than the Weather

Posted on by Web Master

A European business lobby in Ethiopia issued a scathing review of the tax system last week, exposing a series of deficiencies that purportedly drive some of its members out of the country. The lobby group’s report painted a grim picture of a tax environment plagued by a lack of transparency, unpredictability, and bureaucratic inefficiencies its leaders warn stifle business operations and investment.

Representing 180 European businesses, the European Chamber of Commerce in Ethiopia (ECCE) has sharply criticized the “unclear powers” granted to tax auditors and a cumbersome appeal process requiring a 50pc advance payment. According to the Chamber, the unpredictable nature of tax audits and inconsistencies between tax laws and directives have created an environment of uncertainty and frustration, discouraging investment and stunting business growth.

Its Chairman, Ben Depraetere, also country head of BASF’s vegetable seeds business, attributed the departure of some European companies from Ethiopia to these tax-related issues.

“It’s like killing the goose that lays the golden egg,” Depraetere said, referring to the added strain from ongoing conflicts affecting some regional states. “Reason finds no ground.”

Tadesse Lencho (PhD), an expert in tax laws, disclosed instances where auditors rejected claims for political violence insurance deductions, arguing that the country’s purported stability negated such expenses. He believes excessive discretion allowed to auditors leads to subjective judgments that compromise fairness. Tadesse criticized the legal framework, describing it as a “confusing cocktail” of proclamations, directives, and poorly drafted letters, often treated as de facto law.

“Officials should be extremely disciplined when they write these letters,” he argued, suggesting they have the effect of signing laws into effect.

Tadesse noted that historically, incentives for compliant taxpayers have diminished over time. He also pointed out that the tax-to-GDP ratio has declined from 13.2pc to less than 10pc over the past decade, a trend he attributed to a poorly functioning tax administration system. The policy brief comes at a crucial time as the federal government seeks to raise nearly 60pc of its budget of 801.6 billion Br from domestic revenues, open the economy further to foreign investors, and introduce new taxes.

“The golden goose is being slaughtered,” he said.

The Chamber’s leaders proposed a range of reforms to enhance the tax system’s efficiency and transparency during a policy brief to senior federal government officials at a meeting held at the Hyatt Regency on Africa Avenue (Bole Road). Attendees included Hanna Arayaselassie, commissioner of the Ethiopian Investment Commission (EIC); Nebiyu Samuel, advisor to the Minister of Revenues; and Roland Kobia, EU Ambassador to Ethiopia.

They urged to mandate at least 60 hours of annual training for tax auditors to improve their skills and understanding of complex transactions. The Chamber argued that such training is essential for auditors to handle the intricacies of the businesses they assess and ensure that their methods meet the standards for fairness and consistency. It also recommended establishing technical committees to review auditors’ findings before they are challenged in appeals, a measure intended to ease the burden on businesses. It stresses the importance of clearly communicating new tax regulations throughout the assessment process.

Despite these calls for reform, the authorities were cautious about implementing immediate changes, particularly in sectors only recently opened to foreign capital. Commissioner Hanna voiced her optimism about ongoing efforts to improve the business climate, citing recent initiatives such as revising the commercial code, expanding e-government services, and overhauling the investment proclamation.

“We’ve got a joint committee for customs, taxes, and immigration issues concerning foreign companies,” she told Fortune.

Despite these efforts, foreign direct investment declined by 16.4pc last year to 3.3 billion dollars. The federal government remains focused on attracting more investments, and a recent directive from the Ethiopian Investment Board, chaired by the Prime Minister and with Hanna as a member, has opened up previously restricted sectors to foreign capital.

However, the debate continues over the power of tax auditors.

Bahru Temesgen, executive director of the European Chamber, criticized the broad discretion granted to auditors, which he believes opens the door to personal bias and potentially corrupt practices.

“This opens room for personal interests,” indicated Bahru.

Representatives from companies like Heineken Ethiopia, the country’s largest private taxpayer for cashing 10 billion Br to the federal government last year, echoed this concern and called for a more transparent and evidence-based tax system.

Tirualem Melak, representing Heineken Ethiopia, argued for the need to communicate legislative tax changes more effectively throughout the year, rather than during tax assessments. She also criticized imposing additional levies based on presumptions of undisclosed sales, which she referred to as “if” taxes.

Nebiyu, the advisor to the Minister of Revenues, rebuked these criticisms, defending the system.

“I reject the notion at face value,” he said.

According to Nebiyou, internal control mechanisms are in place to prevent misuse of authority by auditors. He claimed that some issues arise from companies sending unprepared representatives to audits, which can lead to misunderstandings and potentially exploitative behaviour by a few corrupt auditors. He proposed a “quick intercession” process following initial reviews to relieve the burden on businesses.

According to Tadesse, the tax expert, the prevalence of non-existent tax categories like “royalty taxes,” reported by attendees due to various inefficiencies, illustrates the burdens these assessments create for businesses, reinforcing the Chamber’s call for sweeping reforms to restore confidence and encourage investment in the economy.

Supreme Court Rules for Appellant in Cosmo Trading Share Sale Dispute

Posted on by Web Master

The Federal Supreme Court has recently ruled in the prolonged commercial dispute surrounding the share sale agreement of Cosmo Trading Pvt. Ltd, favouring appellant Azeb Mihretab, the founder of JJ Property Management. The court upheld the validity of the share-selling agreement that was inked six years ago, involving Haileyesus Mengiste, a major shareholder of Cosmo Trading, and two other shareholders.

At the heart of the disagreement lies the acquisition of 19 shares by JJ Property and Azeb from Haileyesus, priced at 1,000 Br per share, amounting to 19.9 million Br, back in July 2017. They also acquired 50 shares each totalling 100,000 Br, from the remaining two shareholders.

The crux of the dispute centres on the official transfer of shares. Azeb, as the founder of JJ Properties, has alleged that Cosmo Trading shareholders failed to fulfil their end of the bargain by neglecting to complete the transfer process or furnish the required documentation. Conversely, Haileyesus challenged the validity of the agreement, raising concerns about registration and coercion.

The document reveals that 5.1 million Br was allocated towards the company’s tax and other obligations from various sources including banks, institutions, and individuals.

During the legal proceedings, JJ Property Management and Azeb Mihreteab informed the judges that in May 2019, Cosmo Trading shareholders unanimously voted to transfer all their shares. However, amidst the ownership transfer process, the shareholders hesitated to conclude the transaction, prompting the case to be brought before the Federal High Court to compel the completion of the transfer.

In response, Cosmo Trading shareholders counter-appealed to the High Court, seeking to nullify the share-selling contract, citing coercion and alleging intimidation and physical harm inflicted upon Haileyesus. The High Court’s verdict sided with Haileyesus, asserting the involuntary nature of the agreement.

According to the subsequent charges, during the loan agreement with Haileyesus, Azeb allegedly used the title deed of his seven-storey building, estimated at 250 million Br at the time, as collateral. A 3.2 million Br of the loan was transferred into Haileyesus’ account although he did not sign the agreement. Azeb was further accused of allegedly leveraging the loan and her control over Cosmo Trading for personal enrichment through activities such as money laundering and illegal remittance. This charge was alongside Temesgen Yilma, the general manager at TTH Trading Plc; Haregewoin Tedla, her representative; and Efrem Mulatu, a witness.

Following the High Court’s decision on the share sale agreement, Azeb appealed to the Supreme Court, contesting the ruling. Upon thorough review of the case files, the Supreme Court identified discrepancies in crucial aspects such as documentation and tax clearance, ultimately leading to the invalidation of the selling agreement.

Presiding judges Netsanet Tegegn, Estibel Andualem, and Worku Megerssa overturned the Federal High Court’s decision on April 4, 2024, citing insufficient evidence to support claims of coercion. The case has been remanded to the lower court for further deliberation on the transfer and payment of the disputed shares.

Despite this ruling, Haileyesus intends to pursue additional legal recourse through the Cassation Bench in the coming weeks, indicating the likelihood of continued legal proceedings in this protracted dispute.

Fed Slams Driving Schools for Accidents

Posted on by Web Master

Transport authorities placed blame on driving schools and vehicle inspection centres for a recent surge in traffic accidents. This comes as traffic penalties have doubled to over 1.1 billion Br in the past nine months. Officials attributed the revenue rise to stricter enforcement measures, including heightened supervision and a comprehensive digitisation of procedures. According to a performance report presented by the Road Safety & Insurance Fund Service to Parliament last week, nearly two million drivers were penalised for over nine million traffic violations.

Jemal Abaso, CEO of the Service, accused driving schools and technical inspectors of issuing driving permits without proper training and using equipment that was not calibrated accurately. He argued this contributed to poor driving habits and the high number of traffic accidents.

“They’re producing killers,” he boldly remarked.

Traffic accidents showed a positive trend, decreasing by around 532 in the first six months to 23,280 incidents, compared to last year. Property damages also declined by a third to around 1.06 billion Br. However, there was a 54pc increase in third-party insurance claims paid on property damage, reaching 689 million Br. Fatalities followed a similar downward trend, decreasing by 514 to around 1,358.

The CEO attributed the positive notes to a crackdown on driving schools and inspection centres. However, parliamentarians raised concerns about the reliability of the data collected at the national level, citing a three-month delay in the report. To emphasize the stricter enforcement measures, Jemal recalled the recent cancellation of permits for 10 driving schools (eight in Oromia and two in Benishangul-Gumuz regional states) and two technical inspection centres.

“Licenses are sold at some of these institutions,” he said.

Jemal highlighted the upcoming launch of a national road accident data management system in collaboration with Ethio telecom. He said the system is expected to improve data quality and ensure timely reporting, providing a clearer picture of road safety.

The Standing Committee on Urban Infrastructure & Transport Affairs raised concerns about driving license issuance, citing reports of bribery for inadequately trained students. Fetia Dedgeba, the service’s deputy CEO, proposed implementing standardised national guidelines for all driving schools would ensure consistent training quality while a digital point penalty system would enable stricter driver monitoring. She said establishing equipment standards at inspection centres will guarantee accurate vehicle assessments.

“Our latest traffic codes will be harmonised with neighbouring countries,” she told Fortune.

According to Fetia, the overhaul of driver’s license issuance through the Tripartite Transit and Transport Facilitation Program (TTTFP). This World Bank-backed initiative, integrating procedures with COMESA and SADC countries, will introduce new features.

Driver’s licenses will incorporate biometric data for enhanced security and identification while vehicle data specifications will be linked to licenses, allowing for comprehensive driving history tracking along national borders.

A two-round campaign by the Service of random inspections on around 80,000 cars found 27pc were carrying beyond their capacity, 14pc did not meet minimum technical standards, and 16pc had faulty seatbelts.

Fetia expects speed limiters, which will soon become mandatory on public transport vehicles, to reduce accidents caused by overspeeding. She also foresees compulsory standards on technical inspection equipment, improving the quality of cars on the road.

With nearly 100,000 cars joining Ethiopia’s roads annually, around 600 driving schools produce thousands of new drivers yearly for tests prepared by transport authorities.

Institutions contest the accusation.

According to Debebe Tenaw, manager at the 20-year-old Safety Driving School, over the three decades since driving schools became prominent, fatal accidents have demonstrably decreased. He said Ethiopia used to rank among the highest traffic fatalities recorded globally, with 136 deaths for 10,000 cars 26 years ago. Today, the average has plummeted to around 24 deaths per 10,000 cars.

“This is undeniable progress brought on by the schools,” Debebe said.

He argues that blaming driving schools for accidents is illogical when the authorities themselves conduct the final testing process before issuing licenses and authorising renewals.

“Proper research would reveal that driving schools have played a positive role,” he said.

Debebe believes regulators failed to delve deeper into the root causes of traffic accidents within the transport sector. He believes they rely on superficial analysis instead of conducting thorough investigations.

Transport researchers like Tebarek Lika (PhD) argue that the high number of traffic accidents compared to the number of cars emanates from undiversified transport options worsened by public perception.

He said the public needs to begin demanding better service from commercial transporters who overcrowd their vehicles for a quick buck, while the regulators need to improve internal control mechanisms to lower room for transactional relationships with drivers.

“The schools are a small part of the problem,” he said. “A thorough change in attitude is important.”

The report revealed that nearly 255,000 drivers were penalised in the past nine months across Addis Abeba, which had around 109 deaths, a tenth of the national amount, despite having almost a third of the 1.5 million vehicles in the country.

While concurring that some drivers obtain permits without adequate training, for a taxi driver Mezegebu Worku, the elevated earning from penalties reflects higher ticket prices and simplified payment options rather than enhanced control.

“There is no uniformity in practice,” he told Fortune.

The Dark Side of Bias Undermine Societal Solidarity

Posted on by Tizita S.

In the daily rhythm of work and life, it is not uncommon for a single negative comment to overshadow an otherwise positive day. The tendency to dwell on the negative — a trait deeply ingrained in human psychology — plays an oversized role in shaping societal dynamics and even national policies, with consequential implications for countries like Ethiopia.

Research has consistently shown that people tend to prioritise negative information over positive, affecting everything from individual decisions to collective behaviours. From an early age, humans are more receptive to positive cues; however, this changes around the first year of life as children begin to respond more to negative stimuli. The shift suggests an inherent negative bias that emerges early in human development.

This psychological tendency is more than a matter of personal disposition. It has broader societal impacts, especially when exploited by those in positions of power. Politicians, activists, and individuals of influence often use this bias, deploying media platforms to promote their ideologies. By focusing on negative messaging, they can galvanise public attention and support for their agendas, often at the expense of social harmony.

This manipulation of public perception through negative framing has wreaked havoc on our social and economic life. The prevalence of fabricated narratives on social media has fueled political and ethical conflicts at a national level, inciting violence and deepening divisions along ethnic and religious contours. Misleading narratives easily capture public attention, stirring emotional responses that can escalate into conflict.

The role of social media in spreading these harmful narratives is particularly concerning. It amplifies negative information and accelerates its spread, quickly reaching large audiences with little oversight. As a recent incident widely shared across social networks illustrates, the dynamic can lead to tragic outcomes. An elderly man was attacked by a group of young men who appeared to have suspected his motives when he entered their neighbourhood in search of food. The assault, a direct result of entrenched hateful rhetoric, was not only a manifestation of the community’s suspicions but also a graphic example of the dangers of unchecked negative bias.

Such incidents bring to our attention the cumulative effect of negative influences, which do not surface overnight but build up over time, often influenced by repeated exposure to hateful narratives. The impact is particularly pronounced among the youth, who are more impressionable and whose worldviews are still taking shape. The long-term consequences of negativity are a fracturing of social cohesion and a decline in the once-valued ethos of solidarity and tolerance.

Addressing this challenge requires a conscientious effort to promote positive and accurate information. While disseminating false and harmful content can shift societal attitudes over time, strategically sharing truthful and uplifting messages can be equally powerful. Such efforts can help counteract the prevailing negativity, promote a more harmonious environment, and strengthen communal bonds. Eventually, citizens are responsible for cultivating a positive informational landscape.

It is crucial to lead by example and champion accuracy and positivity in public discourse, especially for those in the media, politics, and social leadership. As a society, there is a moral imperative to reject the divisive tactics often employed for political gain and to instead embrace a narrative that promotes understanding.

By committing to these principles, Ethiopians can begin to heal the divisions deepened by years of negative rhetoric. In doing so, they can pave the way for a more stable and peaceful future, ensuring that the next generations inherit a society not marked by hate but characterised by a collective commitment to upholding the dignity of every individual. Such a shift is desirable, if not indispensable, for the country’s prosperity in unity.

 

Addis Abeba’s Hidden Gems, Upscale Delights

Posted on by Tizita S.

One sunny afternoon, while my car received a much-needed wash near Meskel Square, a craving for something light and flavorful gnawed at me. Lenten options, usually heavy on spice, held little appeal. I found myself relying on the guidance of the car wash workers. They pointed me towards a quaint cafe nearby.

Stepping into the diminutive space, I was warmly greeted by two attendants: a young woman with a bright smile and an older lady tending the cash register. I thought pastries were their sole offering, but a delightful surprise awaited – a menu boasting savoury delights. I opted for Shiro, requesting a touch of butter and omitting the green peppers for a milder experience.

The meal arrived, a simple and artfully presented tableau. Two varieties of injera, black and white, framed a clay vessel overflowing with simmering stew. Fragrant steam wafted upwards, a fragrant invitation. Each bite was a burst of flavour, a testament to the cook’s skill. With a satisfied sigh, I settled the 300 Br bill and left a token of appreciation for both the server and the unseen cook.

Finding a satisfying meal is a constant quest, which is why I frequent familiar places. Dining out can be a gamble – disappointment can lurk behind enticing menus, and sometimes the cost seems unjustified. Friends returning from the US recounted a night at a renowned restaurant. They enjoyed attentive service and delicious food, but the hefty bill, nearly 5,000 Br for a couple of meals and soft drinks, left them stunned. Compared to their dining experiences in the US, it felt excessively expensive.

However, my perspective extends beyond the price tag. The value of a meal is intertwined with the service provided. Price sensitivity stems from several factors. Poorly prepared or skimpy portions, regardless of cost, are a letdown. Equally important are clean facilities and a comfortable ambience. Cramped seating and dingy restrooms detract from the overall experience.

One burger joint defied expectations. Locally sourced, high-quality ingredients and meticulous staff training resulted in consistently good food and exceptional service. Every detail mattered, from flawless preparation to a welcoming atmosphere that encouraged patrons to linger and savour their meals. Imagine knowledgeable waiters guiding through the menu, a beautifully crafted ambience designed for relaxation, and a clear focus on creating an unforgettable evening.

Addis Abeba boasts a growing trend of upscale restaurants catering to those seeking an exclusive and sophisticated dining experience. At a restaurant I once visited, reservations are the norm, catering to a regular clientele who enjoy personalised attention. Knowledgeable waiters readily answer questions, guiding diners through a diverse range of international cuisines, from French classics to Indian curries. The ambience plays a crucial role, in transporting guests to the homeland of the cuisine. Traditional décor and staff attire further enrich the experience. While the price point may seem high, the combination of impeccable service, top-notch ingredients, and unique cultural immersion justifies the cost.

Years ago, a Lebanese restaurant in Lome, Togo, presented a delightful challenge. A language barrier with the waitstaff made deciphering the unfamiliar menu items a comical struggle. Despite the initial frustration, the friendly owner intervened, bridging the communication gap and treating me to a truly memorable Hummus experience. This simple chickpea dish, reminiscent of Ethiopia’s Shiro, took on a new dimension with olive oil and fresh herbs. The owner’s warm hospitality, evident even through the language barrier, transformed a meal into a cultural exchange.

Fine dining is not just about the price tag; the entire experience matters. It is a chance to delve into new cultures, appreciate the unseen effort behind the scenes, and create lasting memories. Knowledgeable staff, a comfortable ambience, and top-notch ingredients all contribute to a truly memorable meal. While communication can be a hurdle, even in international dining settings, overcoming it can lead to unexpected delights and forge genuine cultural connections.

Diners have a plethora of options to explore, from traditional street vendors to upscale eateries. Finding a reliable restaurant that consistently delivers both in taste and experience is akin to discovering a hidden treasure. The emergence of niche eateries provides diners with unique experiences tailored to their preferences. From fusion food trucks to pop-up dining events, adventurous food enthusiasts can explore a myriad of culinary offerings beyond traditional restaurant settings. These unconventional dining experiences add a sense of excitement and discovery to the gastronomic journey, enticing patrons to step out of their comfort zones and embrace new flavours and textures.

In the age of social media, dining out has become more than a means of sustenance; it is a form of self-expression and social currency. Trendy cafes and Instagrammable restaurants attract patrons seeking aesthetically pleasing dishes that are as photogenic as they are delicious. The presentation of food has taken on newfound importance, with chefs incorporating artistic elements into their culinary creations to captivate diners visually and stimulate their senses.

For me, dining out is a sensory journey that sparks connections and creates lasting memories. Whether it is the comfort of a familiar neighbourhood spot or the excitement of trying something new, each experience is an opportunity to celebrate the richness of life.

Addis Abeba Taps Private Sector for Water Relief

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Faced with a rapidly growing population and limited water resources, the Addis Abeba Water & Sewage Authority (AAWSA) is taking a bold step. Under a new regulatory framework spearheaded by its director Zerihun Abate, the Authority is opening up groundwater extraction to private companies for the first time.

This initiative is part of a multi-pronged approach to address the city’s water crisis. The city’s 5.2 million residents require a staggering 1.3 million cubic meters of water daily. However, the Authority can only provide around 800,000 cubic meters.

According to Gashaw Mengiste, a groundwater regulation expert at the Authority, the directive aims to encourage responsible private sector involvement in water management while ensuring fair distribution of this limited resource. A licensing and monitoring system will be implemented to regulate private companies involved in groundwater extraction, operation, and marketing.

The regulations mandate a minimum well depth of 250 meters, ensuring all users access deeper, more sustainable water sources.

“This ensures all users tap into deeper sources,” he told Fortune.

Companies seeking permits must demonstrate a minimum demand of 100 cubic meters a month, prioritising larger institutions like real estate developers, hotels, breweries, and the Federal Housing Corporation. Permit applications require a comprehensive plan outlining the water source location, a hydrological report, intended water usage, projected monthly and annual water demand, and installation of a water meter.

Commercial lawyer Yohannes Woldegebriel applauds the new regulations, highlighting the dangers of unchecked groundwater extraction. He recommends robust enforcement to ensure successful implementation and urges regulatory bodies to “scale up” their capacity to manage this vital resource.

“Regulation makes distribution fair,” he said.

Water scarcity is not only affecting residents. Institutions like Zewditu Hospital have faced severe shortages for years. Despite serving 200,000 patients annually, the Hospital’s direct supply from the Authority was insufficient.

To address the problem, Deputy Head Dechasa Bulti said the hospital began drilling its well three years ago, currently supplying 25,000 litres daily. He said a more sustainable solution is needed with plans for additional wells underway.

The real estate sector, heavily reliant on a steady water supply, has been forced to take matters into its own hands. Developers such as Gift Real Estate, established for nearly 25 years, began drilling their wells 10 years ago to meet demand.

Founding CEO Gebreyesus Igata said: “The service [from the Authority] was not meeting our demand.” Gift Real Estate now uses well water for construction and even plans to sell it to residents in some areas. New companies like DMC Real Estate, constructing over 4,000 apartments near the Lebu area, are also following suit, with plans to source water for their developments.

Addis Abeba has not had a census in 17 years. Unregulated urban expansion and migration have likely exacerbated the water crisis, particularly in central areas. The liberalisation comes with strict regulations. Existing users of groundwater will also need to comply with the new standards, ensuring responsible water usage across all sectors. While the Authority attempted to address the water shortage by drilling 12 wells, the growing population outpaces their efforts. By involving the private sector in groundwater extraction, they hope to free up resources to prioritise serving residents.

Ministry of Water & Energy is one of the federal agencies pushing toward the involvement of the private sector. Minister Habtamu Itefa (PhD) strongly supports private-sector participation with responsible extraction practices. He acknowledges that rapid population growth due to rural-urban migration has placed a strain on existing water resources. He said importing essential drilling equipment remains an obstacle despite tax breaks.

“The underground water is in a critical state,” he said.

Addis Abeba heavily relies on a mix of underground wells and surface water from nearby dams. These existing sources, totalling 68 reservoirs and 220 wells, contribute to around 65pc of the City’s water supply. However, Habtamu also sees opportunities: private sector involvement could free up government resources and encourage investment in exploring new water sources.

“They are highly encouraged to distribute,” he told Fortune.

Zeleke Agide, an associate professor at Addis Abeba University’s Ethiopian Institute of Water Resources, highlights unregulated groundwater use as a major threat to Addis Abeba’s water supply. He points out that numerous private entities and businesses pump groundwater within 500m proximity of each other, depleting the resource. The growing problem of artificial pollutants, such as sewage waste, contaminates the remaining groundwater. “Quality of groundwater is another major concern,” he said.

Zeleke warns that unplanned urban expansion diverts natural recharge from reaching the city’s aquifers, as 70pc of the inner city’s groundwater relies on infiltration from highland areas. While acknowledging recent regulatory efforts to involve the private sector in mitigating the city’s water crisis, Zeleke believes the Authority should strengthen its regulatory capacity.

“Improper administration could lead to a rapid decline in the water supply,” he said.

Parliament Ploughs Seedless Corporation

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A four-year performance audit report of the Ethiopian Agricultural Business Corporation paints a concerning picture of persistent failures in delivering essential agricultural supplies. The report highlights shortages of vegetable and fruit seeds, agrochemicals, and machinery, alongside mismanagement of inventory.

The Public Expenditure Administration & Control Affairs Standing Committee took a keen interest in the audit’s findings. Last week, members rigorously questioned the Corporation’s management on its performance based on the concerning details revealed in the Office of the Federal Auditor General’s report. The Committee’s Chairwoman Yeshimebet Demissie (PhD) pointed questions aimed to shed light on the Corporation’s shortcomings and hold them accountable.

The audit identified a critical issue at the Corporation’s Asela Branch in Oromia Regional State, where poorly handled expired seed stock, valued at 4.7 million Br, was found. This posed a potential health risk to employees and could have contaminated the remaining seeds. Zenebe Weldeselassie, head of seed & forest products at the Corporation, attempted to explain the situation by stating these seeds were purchased before the Corporation was even established.

Yeshmebet Demisse (PhD), chairwoman of the Standing Committee, promptly intervened to steer the official’s focus from the historical sources of the seeds towards the current lack of adequate response.

“We have taken corrective measures,” Zenebe said.

The audit exposed the struggles to secure essential supplies. For consecutive years, the Corporation failed to procure critical agricultural inputs including 415,000ltrs of liquid agrochemicals, 131,158Kg of powdered agrochemicals, and 30 million Br worth of veterinary medicine.

The import of horticulture seeds has also stalled this year.

Feleke Gezahegn, deputy head of the Corporation, attributed these supply problems to limited access to foreign currency and insufficient capital following fertiliser purchases. He stated: “Importing improved horticulture seeds is our lowest priority right now.”

The Corporation is attempting to boost revenues by cultivating and exporting soybeans on an 80hct plot in Chagni Town, Amhara Regional State. Feleke also mentioned seeking financial assistance from institutions. The audit uncovered a previously lucrative revenue stream that has since dried up. Until recently, they earned up to a million dollars annually by exporting natural gum harvested from farms in Benishangul Gumuz and Tigray regional states. However, security concerns have made this venture increasingly difficult.

Adding to the financial strain, the Corporation is struggling to recover a significant amount of money owed from past sales. It is owed around 850 million Br from the sale of agricultural machinery to various enterprises but has only managed to recoup a meagre 11 million Br, through a court ruling.

The Corporation was established eight years ago by merging several agricultural entities, with a total initial capital of 2.4 billion Br. However, only a quarter of this amount was paid up.

Kifle Woldemariam, head of the Corporation, pointed to a critical lack of capital as the main obstacle to their irrigation ambitions. Kifle emphasised the limitations this places on their ability to cultivate improved seeds through irrigation projects, stating: “We simply don’t have enough capital for such undertakings.”

However, Kifle outlined some efforts to address these issues. Feasibility studies are underway for cultivating improved seed varieties through irrigation on two plots totalling 5,000hct.

Fogera wereda in Amhara Regional State encapsulates the challenges faced by the Corporation, as a single kilogram of seed has not reached the medium-sized farming community over the past two harvesting seasons.

Demissie Melelo, head of fruit and vegetable irrigation at the Agriculture Bureau, said the productivity of the 32,000 farmers in the area’s onion farms has plummeted by half from around 500qtl for a hectare. He said farmers travel several kilometres to the nearest city to find improved seeds.

“It is either not around or too expensive,” Demissie told Fortune.

According to the audit report, the Corporation had also lost plots in Kombolcha and Mashalo in Amhara Regional State to developers and regional officials, hampering its productivity.

Meseret Damte, Auditor General at the Office of the Federal Auditor, blamed the Corporation’s inability to cultivate its land on a timely basis for the decision to expropriate by regional governments.

She attributed the failure to properly produce and deliver improved seeds to the heavy reliance on traditional rain-fed agriculture instead of exploring alternative means.

“Forex will not be available soon,” Mesert cautioned. “Consider import substitution.”

The Auditor was also alarmed by the improper disposal and storage of substandard and chemical seeds in several locations.

“These are life-threatening matters,” she said.

Agricultural economists like Shimeles Araya (PhD) identify the Corporation’s financial woes and unsustainable revenue model as key factors behind the seed supply shortages. He argues that Ethiopia’s seed is lagging behind the global market, which is dominated by a few large conglomerates. These companies control research and development, resulting in high costs for improved seeds.

He observes the high cost and limitations associated with purchasing seeds internationally. A single kilogram can cost thousands of dollars, and due to the dominance of these multinational companies, the seeds are not reusable after a single harvest. Shimelis underscores the critical role seeds play.

“Seeds are the foundation of agricultural productivity,” he said. “Without access to affordable, high-quality seeds, Ethiopian farmers are at a significant disadvantage.”

Poor patent rights laws have disincentivised private sector investment and limited a diversified improved seed market.

Mekonen Solomon, the horticulture expert at the Ministry of Agriculture, said the undersupply of vegetable seeds is partly due to international patent rights, which make them too expensive to purchase or impossible to multiply.

“Local companies can not afford to research or multiply improved seeds,” he told Fortune.

The High Cost of Low Protection for Migrants on the Margin

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In the East and Horn of Africa, a region including 18 countries, migration patterns are profoundly influenced by challenges ranging from armed conflicts and political instability to environmental degradation, climate change, and scarce economic opportunities. This geographic expanse serves as a source, transit, and destination for migrants, recording 7.7 million international migrants as of 2020. The convoluted web of movement includes migrant workers, asylum seekers, and refugees who often follow similar pathways — be it the eastern route leading to Yemen and the Gulf, the southern route heading towards South Africa, or the northern passage towards North Africa and Europe.

Migrant workers from this region find themselves predominantly in low-skilled employment in destination countries due to several hurdles, including unrecognised qualifications and limited proficiency in the local languages of their new homes. These barriers are compounded by insufficient access to quality education and vocational training that aligns with the demands of their destination countries. For those with irregular status, the challenges are even more pronounced. Legal restrictions often limit them to informal sectors where they are vulnerable to exploitation. Employers in these sectors may leverage the migrants’ lack of legal status to offer low wages and substandard working conditions without adequate legal protections.

Despite their contributions to the labour markets in their host countries, migrant workers often face marginalisation. The lack of social and legal protection exposes them to various forms of exploitation, including long working hours and unsafe working conditions, without sufficient legal recourse. The precarious nature of their legal status heightens their vulnerability, leaving them susceptible to abuses that they are often too fearful to report due to the potential repercussions such as deportation.

Social protection policies are crucial in addressing these vulnerabilities.

Social protection, as defined, includes access to healthcare, income security, and family support, ensuring a safety net that guards against poverty and social exclusion. However, substantial gaps in coverage exist worldwide. According to the International Labour Organization (ILO), four billion people globally lack social protection, with only 29pc of the world’s population having adequate social security coverage and 55pc completely uncovered.

For migrant workers, the limitations in accessing social protection are compounded by legal and practical barriers. These include restrictions based on their nationality or status, short durations of employment, and the complexities involved in the portability of social benefits across borders. These issues are recognised in international frameworks such as the 2018 Global Compact for Safe, Orderly and Regular Migration, which emphasises the importance of ensuring social protection for migrant workers.

The framework argues for the imperative of extending social protection to migrant workers. Such measures not only safeguard their rights but also enhance their well-being by providing access to essential services such as healthcare and education, irrespective of their nationality or migration status. Addressing the unique challenges faced by migrant workers, particularly those in low-skilled and informal sectors, requires comprehensive legislation and administrative measures that do not discriminate against them.

Efforts to ensure social protection for migrant workers must include various strategies. Countries of origin and destination are encouraged to ratify and implement relevant ILO conventions and recommendations, develop national policies that include social protection floors for all, including migrant workers, and enforce social security agreements that coordinate social security systems across borders. Bilateral labour agreements and memorandums of understanding should incorporate social security provisions to further these goals.

These legislative and administrative initiatives should remove the barriers migrant workers face in accessing social protection. This includes addressing the discrimination inherent in existing laws and ensuring compliance with social security laws. Raising awareness among migrant workers about their rights and entitlements is crucial for empowering them to advocate for themselves effectively.

Comprehensive and inclusive social protection policies are urgently needed to uphold the dignity and rights of migrant workers. These policies contribute to the broader goals of reducing poverty and inequality, as outlined in the UN 2030 Agenda for Sustainable Development (SDGs). Such policies are essential not only for protecting migrant workers but also for realising a more equitable and sustainable global society .

 

Reforming Immigration Services Eyes E-Passports

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Ethiopian Immigration & Citizenship Service (ICS) is gearing up to introduce electronic passports (e-passports) within the next six months, aiming to reduce reliance on foreign currency. It will feature microchip-embedded biometrics to bolster security and combat identity theft.

Selamawit Dawit, director general of ICS, has tackled a backlog of passport applications inherited upon taking office and streamlined communication channels to prevent future delays. She said her team is committed to becoming self-sufficient in passport production.

“Gradually, all passports will become electronic,” Selamawit told Fortune.

This initiative is part of a joint venture with Toppan Gravity, a subsidiary of the renowned Japanese printing giant Toppan Inc. A major Japanese-based player in the global printing industry with a 124-year legacy and over 10 billion dollars in annual revenue, the Company brings its expertise to the project. The partnership with the government established Toppan Gravity Ethiopia, a joint venture responsible for the e-passport program.

According to Kalkidan Arega, CEO of Toppan Gravity Ethiopia, e-passports will be imported from Toppan subsidiaries worldwide. She said local production will begin after a printing facility is completed at Bole Lemi Industrial Park.

“We’ll manage the entire process,” she told Fortune, “from acquiring materials to printing.”

Some experts have questioned the long-term cost-effectiveness of local production due to the economies of scale required for affordability. Million Kibret, a business consultant and managing partner at BDO Ethiopia, doubts the sustainability due to the vast production required. He believes a thorough breakdown of the local production advantages needs to be considered before exorbitantly investing.

“Extending the expiration date should be considered,” Million told Fortune.

ICS was subjected to widespread public criticism over the past few years due to year-long delays in the delivery of passports, poor customer service and allegations of corruption that resulted in 44 employees, including the deputy director, being arrested.

As Selamawit presented the nine-month performance report before the Standing Committee of Legal & Justice Affairs chaired by Etsegenet Mengistu, the e-passport program represented a major step forward.

However, Committee members urged the ICS to address lingering concerns. These include unprofessional conduct by some staff and the presence of intermediaries hindering service delivery.

Selamawit acknowledged inheriting a backlog of 330,000 passport applications. Under her leadership, nearly half a million passports have been distributed in the past nine months, with efforts underway to improve communication and collection rates.

“We had to ask an additional 400 million Br budget from the federal government,” she said.

Officials anticipate a major boost in efficiency with the introduction of e-passports. Local production, expected to begin next year, will enable them to distribute nearly two million passports annually. While local production costs will be seven times higher than current imports of three dollar price, Deputy Director General Bikila Mezgebu emphasises the long-term benefit: “It’ll save forex” as payments will be made in local currency.

While acknowledging progress, lawmakers identified areas for improvement. They urged officials to address lingering issues of professionalism and the presence of intermediaries hindering service delivery. Concerns were raised about unprofessional staff conduct, the presence of intermediaries hindering service delivery, and limited service reach requiring citizens to travel long distances.

MPs highlighted the plight of citizens facing travel bans due to mistaken identity caused by incomplete information from legal institutions. Kedija Yassin, an MP from the incumbent party, urged ICS officials to consider raising salaries or introducing new benefits and employment packages to dissuade bribery, stating: “Citizens are paying the price.”

Deputy Director General Gosa Demissie attributed these difficulties to outdated data and pledged to address them.

Chairwoman Etsegent urged the ICS to prioritise technology adoption and expand its reach to improve accessibility.

“Digitisation needs to be adopted throughout,” said Etsegenet.

Offsetting Recognition vs. Anonymity

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Engrossed in thought, I was abruptly pulled back to reality by a booming male voice. The raw passion in his tone was captivating, sparking my curiosity about the source of his fervour.

Unknowingly eavesdropping, I discovered he was venting about a lack of recognition at work. In his view, colleagues who contributed less to a recent project were receiving praise, while his efforts were seemingly ignored. The frustration was palpable. Here was someone who poured his heart into his work, only to be disregarded when rewards were handed out.

As he continued, he questioned if his past dedication to anonymity had somehow rendered his contributions invisible. There was a melancholic mix of anger and sadness in his voice as he recounted his numerous, previously uncredited, efforts. The once unimportant recognition now felt essential as promotions and raises materialised. He had gone above and beyond but remained stagnant while colleagues with lesser contributions were lauded.

Empathy tugged at me. Though a glimpse of his back was all I managed before he disappeared, his story lingered. It resonated deeply, a reflection of the silent struggles many face. This encounter sparked a contemplation on the interplay between recognition and anonymity, and their impact across different aspects of life.

Some actively seek the spotlight, basking in the glow of acknowledgement for their achievements. Others, however, find solace in anonymity, deriving satisfaction from the intrinsic rewards of their work. Anonymity can be liberating, allowing individuals to focus purely on the act of creation or contribution, unburdened by the pressure of external validation.

This intrinsic motivation is prevalent in artistic endeavours, where the focus might be on igniting social dialogue rather than individual recognition. Similarly, open-source contributors might find greater satisfaction in the collective benefit created by their code, rather than personal fame. Anonymity can be a shield for whistleblowers or activists, protecting them from retaliation in their fight for social justice.

For some, the prospect of recognition can trigger social anxiety, creating an aversion to the fanfare of public speaking or awards ceremonies. Introverts or those with social anxieties might find solace in the quiet satisfaction of accomplishment, without the accompanying spotlight. The pursuit of recognition is highly individual, driven by personal motivations.

Some see recognition as a stepping stone to career advancement, while others seek validation to combat feelings of inadequacy. In extreme cases, the desire for credit can morph into unhealthy behaviours, leading to unethical actions like plagiarism or taking credit for another’s work.

Individuals might become fixated on self-aggrandisement, resorting to manipulation or plagiarism to claim achievements they never earned. Their fragile sense of self hinges on external validation, even if obtained through dishonest means. The issue of credit becomes complex in collaborative settings, where multiple individuals contribute to a shared goal. Striking a balance between recognising the collective effort and acknowledging individual contributions is crucial.

The pursuit of recognition can be a powerful motivator, but nurturing humility is equally important. Leaders who genuinely appreciate their team members foster a more collaborative and encouraging environment. Imagine a CEO who takes the time to acknowledge the accomplishments of their staff, creating a culture where everyone feels valued and inspired to make a difference.

The yearning for acknowledgement and the inclination for anonymity are not inherently positive or negative. They are both expressions of the human desire for significance and purpose. By understanding the motivations behind these contrasting attitudes, individuals can navigate the complexities of recognition in both personal and professional spheres.