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Month: May 2024

Is the High Cost of Digital Convenience Eroding Cognitive Abilities?

Posted on by Digital Editor

Along with some colleagues, our company assigned me a few weeks ago as an invigilator for a regional recruitment assignment at a prominent public university outside of Addis Abeba. The University auditorium was filled with over 3,000 candidates who qualified for a written examination.

The situation was smooth until the exam began. We positioned ourselves at the designated area to oversee and supervise all the movements in the exam hall. Subsequently, we discovered several young candidates trying to utilise their mobile devices, smart watches, ChatGPT, and other tools to respond to the questions effortlessly, neglecting the exam instructions. It is a considerable challenge for many invigilators in educational institutions and recruiting companies, as the younger generation increasingly relies on technology. We promptly implemented the necessary measures and effectively handled the situation until the end.

I remember how students in my time prepared for exams when the exam period approached. We were highly connected with hard copy reading materials, trying to memorise everything. I do not claim that our methods were perfect, but we were tech-independent and had a certain level of confidence in our ability to execute tasks autonomously.

My intention here is not to discuss the candidates’ discipline or the measures we implemented. Rather, it is about how many of us are becoming dependent on technology devices to perform tasks.

Over the past three decades, digital technology has transformed our lives. People of all ages now take advantage of the vast amounts of available online information and communication platforms that connect them with others. The technology enables us to produce, store, and analyse large quantities of data and communicate quickly and effectively. The future will substantially reduce physical efforts as it progresses towards fully integrated Artificial Intellectual (AI) technology. The remarkable outcome will be evidence of the ingenuity of the human mind. Even mobile phones have AI-enabled features, which we Google whenever we seek information. We receive plenty of aggregated information with simple clicks.

Our generation has seen the most drastic jumps in technological advances, changing how we perceive the world and how our brains receive and process information. We seem unable to pull ourselves from our smartphones, tablets, and innumerable social networking platforms, keeping our devices near us all day. We have become such tech addicts.

Technological devices somehow affect human memory, attention, and sleep cycles. Our dependence on them has changed how we interact with nature and our natural abilities. Excessive dependence comes with its own set of emotional problems. The complaint is not so much about denying the importance of these devices. They are essential, and we will not be without them. Even though technology simplifies complicated tasks, we must understand the value of timing and context to harness our intellectual capabilities effectively.

I worry about the lack of understanding of when to employ technology. If the balance in the use of technology is tipped, human life and the human mind could be severely affected.

Technological evolution should not disturb our peace of mind or diminish our confidence in utilising our cognitive abilities. Unless people use technology sharply and become less dependent on devices, the brain might be restricted in functioning in areas of creativity and innovation. Students across all academic levels should use technology to access a wide range of reading materials, enhancing their critical thinking and creative skills, rather than solely being dependent on it.

In the same vein, educational institutions, including universities and recruiting companies, must change their traditional assessment methods to get the right talent, as they may no longer be effective. As technology devices proliferate, these institutions should enhance their methods to differentiate qualified individuals from the rest. The experience at the university recruitment event demonstrated to me the need for a balanced approach to technology use. While it offers numerous benefits, over-reliance can undermine the development of essential cognitive skills and independent problem-solving abilities.

As we steer through this digital age, it is important to strike a balance, ensuring that technology serves as an aid rather than a crutch. Such a balance will help future generations to benefit from technological advancements while maintaining their intellectual and creative abilities. The incident at the university serves as a reminder of the need for vigilance in integrating technology into our educational and professional practices, ensuring it enhances rather than detracts from human potential.

 

African Development Bank’s Shift Leaves Core Poverty Issues in the Lurch

Posted on by Digital Editor

The world’s development institutions are increasingly turning away from poverty-related ills like hunger, infectious disease and illiteracy — the challenges still facing most people across the planet. An unholy alliance of green activists and climate-anxious politicians has pushed them to divert more resources to climate policies, which typically deliver fewer benefits. Sadly, even the African Development Bank (AfDB), meeting in Nairobi this week is putting climate policy ahead of core development issues.

Its President, Akinwumi Adesina (PhD), recently declared that the Bank had set a target to devote 40pc of its total financing to climate finance but had exceeded this target consistently for three years, with close to 55pc of funding going to the climate in 2023. That resource will not be spent directly and effectively on poverty. It is the latest proof of what research has already shown: development funding is being raided for climate spending.

Since the AfDB does enormous good in many of its development policies, the loss is only greater when these are replaced by low-efficiency or inefficient climate programs.

A recent report by the “Group of 20” advocated for the AfDB, World Bank, and other development organisations to push for an additional three trillion dollars in annual spending, with most of it directed toward climate policy. Almost as an afterthought, the G20’s background report suggests that a smaller amount of money should go to everything else necessary, like schooling, health, and food. They have it entirely backwards.

Across Africa and the low and lower-middle-income countries, five million children die each year before their fifth birthday, and almost a billion people do not get enough to eat. Over two billion people have to cook and keep warm with polluting fuels such as dung and wood, which shorten their lifespans. Although most young kids are in school, education is so dismal that most children in low and lower-middle-income countries will remain functionally illiterate.

Opportunity is restricted, in particular, by a lack of the cheap and plentiful energy that allowed rich nations to develop. In Africa, electricity is so rare that total consumption per person is often less than what one refrigerator uses. This absence of energy access impedes industrialisation and growth across sectors. Industrialisation and economic growth are not possible without it—case in point: the rich world, on average, has 530 tractors per 10,000 acres, while the poorer parts of Africa have less than one.

Moves by the AfDB and other development institutions like the World Bank to divert more spending to climate projects are deeply misguided. Economic research shows that cutting CO and adaptation deliver lower benefits than efficient development policies. Scenarios from the United Nations’ climate panel of scientists show that the average global income, and especially the average African income, will dramatically improve over the next century — and that climate change will not reverse progress.

The UN expects average global incomes to increase 3.5-fold by 2100. The only climate economist to win the Nobel Prize finds that unmitigated climate change means incomes will instead ‘merely’ increase 3.34 times.

Climate activists argue that poverty and climate change are inextricably linked. Yet, research repeatedly shows that spending on core development priorities would help much more and faster per dollar spent than putting funds toward climate. Prioritised and effective development investment can dramatically improve lives right now and make poorer countries more resilient against challenges exacerbated by climate change.

By contrast, even drastic emission reductions will not deliver noticeably different outcomes for a generation or more.

Development institutions should not ignore climate change. But, it is a problem that will be solved by substantial investment in research and development to make green energy genuinely competitive with fossil fuels, at a price point that even poorer countries in Africa can afford. Spending vast sums on climate projects in the meantime is ineffective at best and virtue signalling at worst.

Since its inception, the African Development Bank has been a powerful and respected voice for the Global South on the world stage. Instead of joining the chorus of elite and wealthy country campaigners that would prioritise climate over development, the Bank could use its voice to speak for those across Africa without influence, and help ensure that more global funds are directed first to today’s most urgent problems.

 

 

When Money Talks, Friendships Falter

Posted on by Digital Editor

A recent fundraising effort at work for a colleague facing financial hardship exposed a troubling side of our society: entitlement. While most employees contributed, some, including a close friend, could not due to their own financial struggles. This lack of understanding from some colleagues led to strained relationships.

My friend noticed a shift in one colleague’s behaviour. They became distant, only interacting superficially and avoiding deeper communication. It was hurtful and confusing for her. The lack of empathy and sense of entitlement were astounding. People prioritise their own desires when they cannot or are not willing to understand others’ situations.

After the money was collected, the attitude worsened. Conversations with her ceased entirely. She suspected it stemmed from her decision to opt out of contribution. But another colleague even questioned the authenticity of her decision, pointing out their seemingly nice clothes and frequent cafe lunches. My friend clarified that these were remnants of a more financially secure past.

This incident sparked a contemplation of entitlement’s pervasiveness. Helping loved ones in need is admirable, but relying solely on this is not sustainable. Many rely on family and friends during hardships, but it should not cultivate an entitlement mentality. Self-sufficiency is crucial.

A person’s upbringing plays a role. Children raised with every need met without hesitation may grow up believing they deserve special treatment. Overly permissive parenting can reinforce this, leading to an adult’s expectation of preferential treatment.

Societal norms also influence entitlement. Cultures that glorify personal success can make it seem like a birthright, not an achievement. Societal adulation of wealth, power, and fame fosters a mindset where people believe they deserve more simply for aspiring to these ideals.

Those in positions of power or privileged backgrounds may feel entitled due to their status. They might believe their position justifies special treatment, reinforcing the cycle through social structures. For some, it is a defence mechanism to avoid confronting inadequacy.

Expecting financial support from friends is common. Friends are often seen as a safety net, and financial help can feel like an extension of emotional support. However, friendship isn’t built on resources. Assuming friends can always help financially may not be realistic. Some may fear judgment for their limitations.

Friends aware of each other’s finances may feel entitled to help from those seemingly better off. It can be subconscious, driven by the belief that close friends share resources. However, boundaries are important. Saying no should be acceptable.

Honesty is the cornerstone of true friendship. Open communication, clear expectations, and unwavering support can prevent jeopardizing the bond. Financial situations are temporary, and the long-term health of the friendship is more important than a short-term fix.

My friend was left feeling hurt and isolated. The cold shoulder sent a message that their friendship was conditional, based on financial contributions. It served as a valuable lesson.

Perhaps future fundraising efforts could incorporate anonymous donation options to avoid social pressure or misunderstandings. Ultimately, true assistance goes to empathy, understanding, and offering unwavering support through life’s inevitable demands.

 

Finding Peace in a Chaotic Reality

Posted on by Digital Editor

I always thought I valued peace, until I met my husband. He approaches it with an unwavering commitment and a calming grace. He showed me that inner peace is far more valuable than winning an argument, even with strangers. Time and again, I’ve witnessed him graciously concede to avoid conflict.

Many have not grasped the truth: living peacefully with others is a mark of maturity and strength. Conflict seems omnipresent – in families, politics, and even among strangers. It is as if people have become accustomed to fighting, sacrificing their peace of mind in the process. Given the deep divisions and disrespect we see daily, it is no wonder conflict is so common. The belief that humans are inherently territorial and combative is a pervasive one.

The misguided notion that aggression gets results fuels the urge to confront strangers. Daily commutes become battlegrounds as drivers rage during rush hour. Impatient pedestrians shove their way through lines, venting frustration on innocent bystanders. Bullying seems rampant, with women often targeted – seen as less likely to fight back. Couples bicker in public and private. Friends and siblings clash over everything, damaging relationships. Some couples even break up, prioritising self-expression over maintaining peace. Politicians act like they are on opposing sides in a war, a world away from civil discourse.

While some feel entitled to disrespect others, there are also those who serve as beacons of peace. My husband, Mike, is one such person. He has shown me the power of choosing peace. I have never seen him raise his voice or speak harshly to anyone. He allows people to say their piece, then removes himself calmly. He treats everyone this way – family, friends, and strangers alike, and is known for his kindness.

His maturity allows him to apologise even when he is not at fault, seeking to de-escalate situations. He often ends arguments by empathising, even with those who wronged him, earning him respect in the process. Initially, this approach baffled me. I would get angry when people took advantage of him. But I slowly understood – it was the price he paid for inner peace.

Mike is intentional in his interactions. He approaches everyday encounters with care, kindness, and respect. Peace is not something he takes for granted; he actively cultivates and protects it. We have lost money to those who took advantage, but he forgave them to maintain peace.

I believe people such as my husband possess maturity, self-control, and humility. They readily admit mistakes and apologise openly. When attacked, they do not escalate the situation. This helps them to never resort to physical or verbal aggression. Their consistent character is admired by others.

Techniques like meditation or deep breathing can help us become more aware of our emotions and choose our responses rather than reacting impulsively. Meanwhile, it is helpful to try and see things from the other person’s perspective. Avoiding accusatory language and listening to the other person helps to find common ground. Holding onto anger and resentment only hurts the person. Forgiveness does not mean condoning someone’s actions, but it allows us to release negativity and move forward in peace.

For some, it might seem easier to be peaceful in a vacuum, but true maturity lies in interacting gracefully with family, friends, and strangers, all while protecting mental well-being. Maintaining peace requires cooperation, sharing, and kindness. It thrives on positive reciprocity, even when we are hurt. After all, as the saying goes, it takes two to tango. If we refuse to engage, the conflict fizzles out on its own.

 

The Road Less Traveled: Hidden Value of Hard Work

Posted on by Digital Editor

On my way to visit my parents over the weekend, a wide smile spread across my face as I noticed the transformed road from Mexico Square to Sarbet. Just a couple of months ago, it had been a dusty, traffic-jammed mess. Now, the road boasted a sleek design that not only looked impressive but also facilitated a smooth flow of traffic. The temporary inconvenience of construction was well worth the outcome. Replicating this efficiency across all road projects would be a boon to the city’s infrastructure.

The most striking aspect of the project, however, was not the result, but the process itself. Gone were the days of sluggish construction and seemingly endless delays. A sense of urgency permeated the air, with crews working tirelessly around the clock. It was not a trend I was accustomed to. Projects here have a reputation for taking dismally long times, stretching well beyond schedule. If this continues across all ongoing road projects, the city could be in for a period of incremental change. We used to admire the Chinese for their overnight construction feats in the past. But that seems to be the norm in Addis Abeba now. The make or break factor for any project is timely completion, ensuring efficiency and completion within budgeted time and money.

Unlike the usual arduous traffic jams, it took me a few minutes to reach my parents’ home around the Vatican Embassy. My mother greeted me at the gate. My father, meanwhile, was busy tending his garden, perched on a wobbly ladder against a coffee tree. He was meticulously tying loose branches with rope. The tree was laden with coffee beans, many scattered on the ground from thieving birds. He tasked me with collecting them in a plastic bowl, and I was surprised by the sheer quantity. The remaining beans were green, needing a couple more months to ripen.

Before heading inside, my father’s keen eyes spotted avocado branches reaching towards the power lines. He moved the ladder and asked me to hold it steady while he removed the soft branches. The ground was littered with cleared branches. We then needed to move them for trash collection. My father, a retired executive, delegated the task of collecting to me, which I happily did.

As a child, I was not enthusiastic about being assigned to such tedious tasks or getting covered in dust and soil while working in the yard. However, now I understand the valuable lesson my father instilled in me: the importance of hard work and engagement, no matter how trivial the task may seem. It is a hallmark of his dedication and discipline, a lesson that will stay with me for life.

He then showed me the other fruits in the compound, starting with guava. Although it would not be ripe for a while, I was amazed that Addis Abeba’s climate supported such variety. Another wonder I was not even aware of was the cashmere fruit. The ripe ones were unreachable by ladder, but my father had kept some in his car. We washed and cut it in half to share. My mother refused, uninterested in the “adventure.” With a taste between apple and soursop, it was one of the sweetest fruits I have ever had.

As I savoured the fruit, I pondered my father’s values. He used his time well, tackled any problem head-on, and lived in the moment. He has practical knowledge and never avoids challenges. He does not dwell on what-ifs but acts in the present. He takes seemingly impossible tasks, breaks them down, and executes them flawlessly. I wondered how much of him I inherited and what a fulfilling life he must have led.

He is a man of action and few words. I learned more from his deeds than his words. The little he said spoke volumes and stood the test of time.

He says: “The best way to accomplish a task is not to let it wait; work progresses only by doing it.”

Another key quality is his organisation. He is a master of time management, using available resources – money, time, labour – effectively. I recall him planning his day with a checklist, juggling many tasks, from overseeing my brother’s construction project to church leadership to his siblings’ issues.

Time, unlike other resources, cannot be replenished. We are on a countdown from birth. Our minds are clogged with inconsequential possibilities. Instead of contemplating, worrying, and regretting, trying at least teaches us something. However, it is better to try and fail than endless analysis.

History is filled with those who dared to act, to translate ideas into reality. While intellectual discussions have their place, true progress comes from taking concrete steps and shaping the world around us. I wonder where we stand as a society in terms of getting things done and shaping our destiny. I feel most of us are caught up in internalising external forces rather than influencing ourselves and our environment. It is believed that personal change is more achievable than changing the external world.

Greek philosopher Socrates is reported to have said, “The unexamined life is not worth living.” How many of us are prepared to acknowledge our shortcomings and work to improve them?

Change starts within ourselves. Honest introspection reveals much more than what we see on the surface. It is easier to blame others than to take a deep look inward. But once we do, we realise the work needed but also our true potential. It is like reverse engineering. We may even inspire others to follow.

Most history-shapers, whether through inventions, good deeds, or powerful examples, focused on building their character rather than fighting to change the world. The results might take time, like a few months for the road project or two months for my father’s coffee beans to ripen. Building inner strength and transforming ourselves is not easy.

In 1940, facing World War II, British Prime Minister Winston Churchill delivered a powerful speech that did not sugarcoat the harsh reality. He promised “blood, toil, tears, and sweat.” These words rallied the nation with resolve and self-sufficiency, ultimately leading them to victory.

My father, through his actions, taught me that most of what we desire is within reach. We think people, places, and things hold the key to our destiny. But everyone is on their journey, and even the most powerful have limited influence on our lives. The true power lies within us, waiting to be unleashed. Looking inward is easier said than done. But honest reflection is all it takes to dismantle the facade and discover liberating power.

 

Invitation for bid to hire consultancy service

Posted on by Web Master

Lemi National Cement plc would like to invite interested consultants to submit technical and financial proposal for International Competitive Bidding (ICB) for Consultancy on reconnaissance/assessment of coal resource, coal exploration, mining feasibility study and strategy aiming to establish coal processing plant.

All applicants are invited to participate by taking the steps mentioned below:

  1. Lemi National cement plc invites any interested, qualified, eligible and experienced Firms or Companies to conduct reconnaissance/assessment of coal resource, coal exploration, prepare a detailed coal mining Feasibility Study and strategy to establish coal processing/washing plant. Consultants are invited to submit the proposals either alone or as a consortium.
  2. The objectives of the project, scope of the work, evaluation criteria and other details of the project are mentioned in the Terms of Reference (ToR).
  3. The consultant is expected to perform all activities to the industry standard. The scope of the work include assessing the coal resource of the country on selected areas, identifying target area & conducting exploration, preparing feasibility study for coal mining and also preparing a strategy for the upcoming coal processing project.
  4. Request for the ToR can be made in person in the Procurement office of Lemi National cement plc located at Roosevelt Street, Gidey Gebrehiwot Building, Addis Ababa, Ethiopia OR online in writing to the following email: feven.m@leminationalcementplc.com.
  5. The proposals shall be submitted as one original technical proposal and one original financial proposal, and the copies of both technical & financial proposals. Each proposal shall be in a separate envelope indicating original or copy, as appropriate enclosed in a wax scaled envelope.
  6. The proposal documents shall be submitted in hard copy in the Procurement office at the specified address mentioned above.
  7. The bid announcement will be online for 30 Calendar days from the date of announcement. All submitted documents will be opened on the 31 day (if it is a holiday or weekend, the first business day) at 9:30 am local time.
  8. All submitted bid documents will be opened in the presence of bidders or the authorized representatives at the Procurement Office.
  9. Lemi National Cement plc reserves the right to accept or reject any or all the received proposal documents with or without giving any reason whatsoever.
  10. The selection procedure of the consultant will be governed by the prevailing laws of Ethiopia, and the policy of the company. The evaluation criteria and points are described in the TOR.
  11. Official letter of Authorization to a representative is required for formal communication.
  12. The bid and all other related documents shall be in English language.
  13. For any additional questions, please contact the following person:

Name: Feven Mekonnen, Mobile: +251- 926872291, Email: feven.m@leminationalcementplc.com.

A Turning Point for Clean Cooking

Posted on by Digital Editor

Global leaders and institutions should recognise the urgent need for clean cooking solutions. According to the International Energy Agency, investing eight billion dollars annually until 2030 could ensure universal access in Sub-Saharan Africa. In this commentary provided by Project Syndicate (PS), Razan K. Al-Mubarak, president of the International Union for Conservation of Nature, and Joseph Nganga, an interim CEO of the Global Energy Alliance for People & Planet, argue that such an investment is crucial for a greener, healthier, and more equitable future.

For most of her life, Florence Auma Ode cooked over an open fire in her Kenyan home. The resulting smoke coated the walls with a layer of soot and filled her lungs – and those of her family members – with particulate matter.

In 2022, Florence’s family invested nearly a month’s salary in a modern two-burner bioethanol stove. The stove uses affordable fuel and cooks food quickly and cleanly, improving the health of the whole family. Equally important, Florence no longer has to spend five hours each day collecting firewood. Now, she can use that time to take classes, generate income, or enjoy leisure activities.

In the Global North, achieving clean cooking for all may seem mundane compared to other, more grandiose forms of climate action. But switching to clean-cooking technologies would cut global carbon dioxide emissions by 1.5 billion tons, the same amount generated by all planes and ships today. Given that forests of the size of Irland are lost each year to fuel-wood and charcoal production, eradicating dirty cooking would significantly reduce deforestation and biodiversity loss.

Despite this enormous potential, 2.4 billion people, mainly women, still cook over and heat their homes with open fires that burn wood, charcoal, or dung, leading to 3.2 million annual premature deaths from particulate pollution exposure. The problem is most acute in Sub-Saharan Africa, where four out of five individuals lack access to clean cooking solutions, causing pollution-related diseases to impede productivity and human development.

In addition to reducing emissions and environmental damage, promoting clean cooking would help restore basic dignity to women and girls, who are often expected to bear the burden of domestic labour. Universal clean-cooking access would mean that, like Florence, women and girls – numbering more than 600 million in Africa – could use the time they now spend collecting firewood and preparing food in hazardous conditions to pursue education, employment, and personal growth.

If the benefits are so clear-cut, what is holding us back from achieving clean cooking for all?

The problem is not technical: KOKO Networks, for example, has developed liquid bioethanol stoves that cost 85pc less, and whose fuel costs up to 40pc less, than charcoal stoves. Nevertheless, affordability remains a challenge. This is compounded by entrenched gender norms that often undervalue women’s domestic labour and limit their control over household budgets. Innovative financing mechanisms such as on-bill lending, which enables families to repay the upfront costs of a stove through their utility bills, would help. But, a change in mindset is also needed.

Grassroots education is crucial to normalising clean cooking and bringing along Africans working in the charcoal industry. According to an assessment by the World Food Programme (WFP) and The Rockefeller Foundation, as part of The School Meals Coalition in Kenya, a subsidy program for schools to install modern kitchens would provide 10 million children with access to clean cooking. It would also create around 400,000 jobs and more than two million additional jobs in related sectors, mainly for women and young people. The initiative is projected to avoid at least nine million tons of emissions and preserve around six million trees.

Pulling these levers requires financing. According to the International Energy Agency (IEA), investing eight billion dollars annually in stoves and infrastructure until 2030 would provide universal access to clean cooking in Sub-Saharan Africa. To that end, the Global Electric Cooking Coalition is working to enable a mass transition to clean cooking in at least 10 countries across Africa, Asia, and Latin America by 2030. Likewise, the United Nations Climate Change High-Level Champions are collaborating with non-state actors to achieve universal clean-cooking access by 2030, a target that requires at least 10 billion dollars annually in innovative finance.

The models are in place to scale clean cooking in Africa. Now rich country governments, multilateral institutions, the private sector, and international organisations need to step up and provide the necessary funding. The continued prevalence of dirty cooking in Africa further shows that climate finance has long been inefficient, insufficient, and unjust. To reverse this trend, global leaders must introduce a new financing pact for universal clean cooking.

The mainstreaming of clean cooking in Africa is more than just a practical solution to the climate crisis; it is a commitment that the Global North must make to the continent that has contributed the least to global warming but is nonetheless most vulnerable to its effects. Most critically, it will ensure that Africa’s women and girls can participate in – and benefit from – building a greener, healthier, and more equitable future.

Domestic Workers in Saudi Arabia: Empowering Lives Through Organizational Support

Posted on by Web Master

Domestic workers in Saudi Arabia, supported by organizations like RATEQ Recruitment Office, play a crucial role in enhancing the lives of both the households they serve and their own lives. Through the efforts of RATEQ Recruitment Office and programs like the Musand program of the Ministry of Human Resources and Social Development, domestic workers experience positive impacts, fostering personal growth, empowerment, and improved quality of life. Let’s explore the significant ways in which these organizations contribute to the well-being of domestic workers and the households they work in. Economic Empowerment and Stability: Employment as domestic workers offers individuals an opportunity for economic empowerment and stability. RATEQ Recruitment Office facilitates the placement of workers, providing them with stable income and the ability to support themselves and their families. This financial independence contributes to their overall well-being and opens doors for personal growth and development. Skill Development and Training: RATEQ Recruitment Office, in collaboration with the Musand program, focuses on the training and development of domestic workers.
Through comprehensive training programs, workers acquire valuable skills in housekeeping, cooking, childcare, and communication. This not only enhances their professional capabilities but also expands their career prospects beyond domestic work, fostering long-term growth and self-sufficiency. Cultural Exchange and Enrichment: Domestic workers from diverse backgrounds bring their unique perspectives, traditions, and languages into Saudi Arabian households. With the support of RATEQ Recruitment Office, they contribute to cultural exchange and enrichment. By sharing their customs and experiences, they foster mutual understanding, respect, and appreciation for different cultures. This promotes a more inclusive and harmonious society within Saudi Arabia. Support and Improved Quality of Life: Through their dedicated service, domestic workers supported by RATEQ Recruitment Office significantly improve the quality of life for the households they work in. They alleviate the burden of household chores, enabling families to focus on their professional commitments, personal pursuits, and quality time with loved ones. The presence of domestic workers enhances work-life balance, reduces stress, and contributes to overall household well-being. RATEQ Recruitment Office, in collaboration with the Musand program, plays a critical role in empowering domestic workers and enhancing their contributions to Saudi Arabian households. Through economic empowerment, skill development, cultural exchange, and improved quality of life, domestic workers positively impact their own lives and the families they serve. Recognizing and appreciating the invaluable efforts of domestic workers and organizations like RATEQ Recruitment Office fosters a more inclusive and prosperous society in Saudi Arabia.

www.rateq.com.sa

Sleek Offices, Lavish Roads Makeover in Shaky Economy During Fiscal Frugality

Posted on by Digital Editor

Prime Minister Abiy Ahmed (PhD) took a handful of his cabinet members last week to the newly illuminated offices of Chaltu Sani, the minister of Urban & Infrastructure Development, on Ras Abebe Aregay Road, near the National Theater. The Prime Minister posted photos of his visit on the X platform, declaring that “ergonomics and creating conducive environments” in public offices are “ongoing priorities” for his administration.

This seems to be the era of ergonomics in Ethiopia, a term derived from Greek that blends the concepts of work and law. Ergonomics emphasises human activities and interactions with tools to create efficient, safe, and comfortable environments. Federal agencies nationwide are embracing this philosophy, spending tens of millions of Birr to redesign, remodel, and beam their buildings. The resulting transformations give the impression of a “beauty contest” among these agencies, each striving to outshine the other.

However, the contradiction is no less glaring.

Federal authorities are ostensibly trimming public expenditures yet allocating substantial resources to urban aesthetics. The “architectural renaissance” in Addis Abeba might mislead a casual observer into thinking Ethiopia has discovered newfound oil wealth. However, the country has defaulted on its external debt commitment for the first time, endured double-digit inflation for consecutive years, and effectively halted new capital projects nationwide. The share of capital expenditure in the budget to the GDP has continued to decline since 2017.

Only last week, Finance Minister Ahmed Shide took a stern position as he reviewed budget proposals from various ministries, often sending them back for revision. His deputy, State Minister Eyob Tekalegn (PhD), informed representatives from public universities that there would be no new projects next year. His statement reminds the public of the contractionary fiscal and tight monetary policies needed in an economy under the grip of public debt and the resulting runaway inflation.

Ethiopia’s public sector debt modestly increased by 1.63pc in the six months leading up to December last year, reaching 64.3 billion dollars, representing 39.4pc of the country’s nominal GDP. It includes commitments by the federal government, debts guaranteed for state-owned enterprises (SOEs), and non-guaranteed debts of public enterprises such as Ethiopian Airlines. Each category plays a particular role in the federal government’s fiscal position and has different implications for macroeconomic stability.

One is the rise in public debt, demonstrating the authorities’ fiscal problems in managing a growing debt during global economic disruptions.

Reconciling the life-saving needs of over 20 million Ethiopians requiring emergency assistance and the backlog of unfinished public projects with the current administration’s priorities of bike lanes could become a Herculean task, straining the bounds of pragmatic fiscal management. It also requires extraordinary mental gymnastics to reconcile billions spent on bike lanes and pedestrian walkways in the capital with the reality that much of the country lacks functional roads.

Public expenditure should be sensitive to Ethiopians’ most pressing needs — food, water, health, and security — especially when austerity is the order of the day. This contrasts sharply with the Prime Minister’s grand “smart city” ambitions.

An aesthetic vision to which much of the population has not been privy has led to massive demolitions, resettlement of thousands, and billions paid in compensation. The term “corridor” has taken on a menacing connotation for property owners in the capital, who worry whether their homes or businesses could be demolished for a “development” project that seems to have materialised out of nowhere. Even public offices with sparkling new compounds have seen parts of their fences removed, only a few months after they were completed, revealing the high-handed nature of these projects.

Undoubtedly, greenery and manicured sidewalks may be visually appealing. But, they should not come at the expense of university budgets, road and bridge constructions, or wages for public service members in newly formed regional states. Managing public finance requires a balance.

The administration appears to believe that the final products of these projects, rarely consulted with the public and begun abruptly, will awe Ethiopians into acquiescence. Yet, the perceptible difference between the administration’s priorities and those of everyday Ethiopians could be politically costly for the incumbent Prosperity Party (PP). The inconvenience and suffering caused by the displacement of thousands of residents can unveil deeper issues.

It would be unreasonable to blame citizens should they question the economic value of billions invested in these projects, for the crucial question remains: What do policymakers consider the country’s budgetary priorities for the coming year?

Transforming Addis Abeba, already with better public infrastructure than other cities and towns, into an even more “beautiful city” could prove politically costly. Amid the imminent devaluation of the Birr against major currencies, the entry of foreign capital into the retail market, and other sweeping reforms, the incumbent cannot afford to remain ambiguous or lose public support further. The macroeconomy’s sensitivity to additional shocks is at an all-time high.

The economy is wrestling with the dilemma of managing borrowing while maintaining growth momentum. Data from 2019/20 to the end of 2022/23 indicates a cautious yet expected increase in external and domestic borrowing. External debt rose by 1.02pc, while domestic debt saw a notable rise of 2.12pc.

Despite these increases, Ethiopia’s debt metrics remain within sustainable boundaries for low-income countries. External debt remains at 17.5pc of GDP, well below the cautionary threshold of 40pc. An internal document from the Ministry of Finance attributed this to the government’s “careful debt management strategy,” supported by consistent economic growth.

In 2023, the GDP grew by 6.2pc, a percentage point lower than government officials claim. However, the growth rate has declined since the 2010s, when GDP was expanding by double digits, fueled by massive public infrastructure investments mainly financed by external loans from China and multilateral financial institutions, which led to ballooning public debt. A substantial portion of public debt is external loans, with major creditors, including the World Bank’s International Development Association (IDA), unveiling Ethiopia’s ongoing need for concessional loans. These loans offer lower interest rates and more extended maturity periods, easing repayment pressures.

In 2021, the federal government established the Ethiopian Investment Holding (EIH), a sovereign wealth fund designed to manage state assets and generate revenue independently of traditional fiscal mechanisms. Along with the establishment of a Capital Market by mid-2021, this marked a shift towards diversifying funding sources and reducing reliance on external debt. It has also leveraged financial instruments like Treasury Bills, which have seen an increase in yield, reflecting the rising cost of government borrowing. While this strategy expands the domestic debt portfolio, it also attempts to fulfil the dual purpose of financing government projects and cultivating a local investor base.

Fiscal strategy is also evident in the government’s management of debt service obligations. The G20 Debt Service Suspension Initiative (DSSI) provided essential fiscal relief but ended last year. New negotiations with private, bilateral, and multilateral creditors are ongoing, the latest held in Washington D.C. in April with the IMF, but no deal has yet been reported. However, IMF officials announced progress leading to a final deal has been made.

Whatever Ethiopia’s leaders’ concessions to external creditors and the IMF are, policymakers’ approach to managing public debt should balance immediate fiscal needs with long-term economic goals. A prudent debt management strategy, supported by economic expansion, can help maintain debt sustainability within acceptable limits.

Yet, the country continues to face painful fiscal pressures from the complexities of managing external debt and domestic borrowing during a period of extreme public polarisation encapsulated with violent political confrontations on several fronts. Initiatives like the Ethiopian Investment Holding and the Capital Market could help diversify sources of funds and reduce reliance on external debt. However, balancing borrowing with economic growth will be crucial for long-term fiscal stability and sustainable development.

Cutting back on fuel subsidies, education, and soon electricity, while operating on a tight budget, is fraught with peril. An opaque public expenditure policy that values aesthetics over addressing urgent public needs can have serious consequences.

The cost of living is likely to rise further. Higher fuel prices will push up transportation costs, which will, in turn, increase the price of goods and services. Electricity cutbacks will raise energy costs for households and businesses, squeezing tight budgets. Economic growth will falter after businesses facing higher operational costs from increased fuel and electricity prices may see reduced profit margins, potentially leading to layoffs or closures. The social fabric will undoubtedly be strained, followed by an inevitable public discontent. When the government prioritises aesthetics over urgent public concerns, dissatisfaction will grow.

Prosperitians and their policymakers will be compelled to redefine what austerity and fiscal consolidation mean in this context.

The Condom Conundrum

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Declining donor funds and a global squeeze have created a condom shortage in Ethiopia. While needing 250 million condoms annually, the country manages to supply less than half. The result is a decline in giveaways – universities, restaurants, and public spaces rarely receive them anymore, finds BERSABEH GEBRE, FORTUNE STAFF WRITER.

 

Behind a nondescript facade in Addis Abeba lies a hidden drop-in centre. Among the young women who shuffle to the front desk is a 25-year-old sex worker (name withheld), entering in her pyjamas, remnants of makeup clinging to her face. Every night, she joins 19 others at the centre. It is a haven after long, cold hours spent waiting for clients on the street.

They take showers and meals every day and get free tests for sexually transmitted infections (STIs) regularly. But the lifeline offered at the drop-in centre is condoms. The bi-weekly allotment of eight packets from PSI Ethiopia helps them stretch their earnings. However, there is a supply gap.

“There is a massive shortage,” said the woman.

She came to Addis Abeba four years ago. She claims that some clients, unwilling to pay more, gamble with their health, opting for unprotected sex. But the former waitress, driven to sex work by financial hardship, believes condoms are a matter of life and death.

“Half my income went to buying condoms last month,” she recalls. Meanwhile, her dreams of housekeeping jobs in the Middle East fade with each Birr spent on overpriced hotel condoms.

International donor funds for HIV/AIDS prevention have shrunk despite rising infection rates in Ethiopia. Combined with a global funding squeeze, this has shattered the country’s condom supply. This gap is filled by a combination of government agencies such as Ethiopian Pharmaceutical Supply Services (EPSS), non-governmental organisations like DKT International, and private importers. However, out of the annual 250 million condom demand they managed to cover about 100 million. The result is a decline in free giveaways – universities, restaurants, and public spaces rarely see them anymore.

Health centres also limited free giveaways to three packs a person, with a pack consisting of three pieces. Addis Abeba City Health Bureau distributed eight million condoms in the first nine months, to 120 institutions. About 98 are health centres while the remaining are hospitals and wereda youth centres.

Officials pin the giveaway limits on abuse. Seyfe Demisse, head of pharmaceutical supply services at the Bureau, said the cap on the number of pieces an individual could take as necessary.

“People were selling the condoms they got for free,” Seyfe told Fortune.

District health centre managers paint a different picture. Fikadu Worku, manager of a health centre in Addis Ketema District, said they heavily rely on donors, as government supplies fall far short. His centre received 5,040 packs from EPSS in the last nine months against a request of 14,000, while donors provided 32,170 in the same period. Fikadu suspects some might be reselling giveaways, prompting the restriction to ensure wider access.

“Gone are the days of grabbing a handful,” he said.

However, officials at the Ministry of Health present another perspective. They acknowledge complications in the procurement process due to a supply shock following the Covid-19 pandemic.

Abnet Assefa, head of HIV prevention & control at the Ministry, cites a supply shock has shifted focus to targeted protection for high-risk groups such as adolescent girls, sex workers, and labourers, due to declining global funding.

“Distribution is expensive,” Abnet said, “We have to prioritise strategically.”

However, this targeted approach leaves universities in the lurch. For two years, the clinic at Addis Abeba Science & Technology University has not received any supplies, despite serving nearly 6,500 students. Wondifraw Seyfe, public health officer at the University, observes ascending cases of sexually transmitted infections (STIs) and unwanted pregnancies.

“Every week, I turn away at least five students needing condoms,” Wondifraw told Fortune.

Condom use has been instrumental in slashing new HIV infections by 59pc since 2010. The annual countdown has elevated to around 8,000 this year. With over half a million people living with HIV and high infection rates in Addis Abeba and Gambela areas, the country relies heavily on foreign donors for a steady supply of testing kits, anti-retroviral drugs, and emergency contraception pills. This dependence creates vulnerabilities when donor funding fluctuates.

Fikadu Yadeta, lead executive of HIV control at the Ministry, stressed the need for a national prevalence survey, as the last one was eight years ago.

“Increased testing is crucial to identify those unknowingly infected,” Fikadu said.

Fikadu disclosed plans to increase government-imported condoms in the coming years. However, he suggests alternative solutions for institutions like universities and hotels. He recommends purchasing condoms at discounted rates from organisations like DKT, freeing up the limited supply for those who need it most.

The lack of access extends beyond disease prevention. The Ministry of Health does not prioritise condoms for family planning.

Alemayehu Hunduba (PhD), a lead executive for mothers, children & infants at the Ministry, said they do not advocate condom use for family planning. He acknowledges the shortage and recommends them only as a supplementary contraceptive tool.

“A short window of applicability bounds them,” Alemayehu told Fortune.

For Anteneh Eshetu (MD), a specialist in infectious diseases at Black Lion Referral Hospital, the long-term cost-effectiveness of prevention is overlooked. He argues that failing to invest in condom availability now will overwhelm the healthcare system with STIs and unplanned pregnancy cases.

He recommends ensuring affordable condom supply and receiving public awareness campaigns on the dangers of unprotected sex and the benefits of proper condom use.

“Individuals should make informed choices,” he said.

Retail prices across the country add another layer of complexity. Mesfin Bekele, a pharmacist, receives a pack of condoms from wholesalers at 44 Br. His pharmacy adds a 10pc markup on the already inflated wholesale price, further increasing the burden on customers, who are predominantly male.

Price regulation is put forth as an alternative by suppliers.

DKT Ethiopia has adjusted its strategy. Previously offering free condoms, they now sell them at a subsidised price (12 Br) – lower than pharmacy prices (around 60 Br). Dawar Waraich, country director, sees price regulation as crucial to address this disparity.

The organisation has increased its import forecast to 50 million packs at the government’s request and plans to expand its distribution network, particularly targeting women. Dawar observes difficulties from lengthy inspections and customs delays. While local production is an option, Dawar believes major investment is needed to compete with mass producers like Malaysia and Thailand.

“The government should set price ceiling,” he told Fortune.

Although a leading condom supplier for 30 years focusing on birth control methods, DKT is not alone in the fight against HIV.

PSI Ethiopia, another key player, notes a surge in demand for condoms and testing kits. Backed by USAID imports, PSI distributed 7.6 million condoms in 2023 and 2.4 million this year, primarily through their drop-in centres. Yonatan Tamiru, a communications specialist, suggests investigating the cause, hinting at a possibly increased migration.

“Conflict-related displacement is another issue,” he said.

For the sole state-owned supplier, low-quality imports and slow deliveries plague its 40pc coverage.

Solomon Nigussie, deputy head of EPSS, reveals a concerning quality issue. He reports that a quarter of condoms slated for import last year failed to meet standards, lacking sufficient strength and experiencing delays between order and delivery.

“We are still relying on last year’s imports,” he told Fortune.

While EPSS has secured 55.8 million condoms for 2024, with a portion arriving this week, the 68 million distributed to health centres so far come from the previous year’s procurement.

“We are prioritising durability,” said Solomon.

Quality has become another impediment. The Ethiopian Food & Drug Authority (EFDA) paints a grim picture. In just nine months, the Authority identified 33 out of 198 inspected batches (a batch consisting of 1,444 pieces) as substandard. Inspection delays due to high import volumes that do not match the Authority’s human capacity further hinder accessibility.

Kaleab Tesfaye, lead executive of medical equipment and quality control, reports a sharp decline in condom quality this year. Rigorous testing (length, volume, pressure, integrity) has resulted in a large portion being destroyed or returned to suppliers.

He says: “It’s the worst in seven years.”

Ethiopia’s fight against HIV/AIDS and unwanted pregnancies is far from over. For the targeted population and burgeoning generation, ensuring a healthier future should not be a gamble but a public concern.

 

 

A Bold Bet on Affordable Housing Faces Skepticism, Financial Roadblocks

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The federal government is embarking on an ambitious venture with the “Chaka Satellite City” project, which will incorporate thousands of “affordable housing units” through a new public-private partnership (PPP) initiative.

Consulting firms are under review to conduct a feasibility study, a process that comes amidst the re-tendering of a separate pilot PPP housing project due to low developer interest. The Prime Minister’s Office (PMO) targets nearly 10,000 housing units across 14 projects in the Chaka and Tiyit Bet areas. The Office proposes a structure where developers retain 70pc of the units built on nearly 4,000hct to recoup investments after project completion.

The Chaka Project is a massive undertaking that plans to include artificial lakes, recreational halls, and greenery in the Yeka and Lemi-Kura districts. Hundreds have been paid with compensations to resettle in Woreda 09, around the Kotebe area, to make way for a 5.3Km underground transmission line connecting the project to the Kotebe-Bela area and a 132/15KV mobile substation.

The Ministry of Finance, with a part of 4.43 million dollars in funding from the African Development Bank (AfDB), invited prospective bidders to submit an expression of interest two months ago to produce a feasibility study. The deadline to submit documents was closed last month. Berhanu Anbessa, the Ministry’s head of the international financial institutions’ cooperation division, expects to begin evaluations for shortlisted firms soon after the screening process concludes.

“Consulting firms are under review,” he disclosed to Fortune.

The feasibility study’s results, along with financing, scope, and options, will impact the project’s implementation. The selected firm is expected to show value for money and risk transfer for the project through the study, which should be completed four months after commencement. While a pipeline of PPP projects has often been proposed for massive infrastructure, energy, and mining projects, implementation has been limited to housing over the past few years. Around 79,800 units are part of the long list planned under the affordable housing project to address the surging demand for accommodations with the rising demand.

However, due to a lack of sufficient interest, the pilot PPP housing for the Ethiopian Broadcasting Corporation (EBC) and the Federal Housing Corporation (FHC) will be re-tendered in the next weeks.

Management from a leading local consulting company shed light on the difficulty of attracting participants in the PPP space due to the slow construction sector.

“Only a few large companies or overseas investors will likely engage,” said one executive. “PPPs have yielded few successes in housing.”

According to officials, this comes from the PPP format’s perceived complexity and financial requirements.

Abebe G. Yihdego, head of the PPP unit at the Ministry, said local developers found the financial requirements for participating in the project too high and a bit complicated. He disclosed that the next round of tenders would allow specific modalities to accommodate international companies in a consortium.

“We’ll reissue the tender with some changes,” Abebe told Fortune. “The modalities are different from what local developers are used to.”

He was referring to the recent changes to the investment law, which allow foreign nationals to mobilise capital and equity to enter the PPP scheme. During his meeting with the country’s highest taxpayers, the Prime Minister also signalled the opening for overseas real estate companies to own properties.

Most developers treated the requirement for equity investment and other peculiar features as unfamiliar territory despite three companies showing interest, with only one making it due by the deadline.

The Integrated Housing Development Program (IHDP) was a notable attempt to expand housing projects through private and public sector linkage. These, a.k.a. condominium projects, have seen the construction of nearly 226,000 units in nearly two decades.

It had the German Technical Cooperation (GTZ) as an implementation agency early to develop what were to be model units. During the construction of the first full-scale low-cost housing program, an attempt was made to emulate mass housing projects with initial model units. Partnerships between GTZ and a local firm, MH Engineering, led to pilot projects around the Gerji area in the Bole District, which had 696 housing units distributed in 28 blocks. These were meant to serve as a springboard for an institutional capacity to produce 50,000 units annually.

However, a report by the Center for Affordable Housing Finance in Africa released last year estimated that Ethiopia’s housing demand would require close to 486,000 new urban homes each year. Industry veterans like Abebe Dinku believe that PPPs can be successful if flexible requirements allow negotiations. According to Abebe, the federal government should explore foreign companies’ expertise in the initial stages while encouraging the participation of local developers in the long run.

“No quick rejections should be a working principle,” Abebe told Fortune.

Early participants in similar schemes agree.

Mesele Haile, managing director of MH Engineering Plc, a pioneer in low-cost housing, views PPPs as a critical tool for affordable housing. He believes government-subsidised land for developers can ease difficulties like limited access to mortgage financing and high real estate costs for many.

“Sensible subsidies can make a big difference,” he said.

Mesele, also one of Country Club Developers’ (CCD) three shareholders, suggested that the large-scale condominium project could have achieved its 400,000-unit target if not for the surge in construction material prices.

“The current PPP structure can be profitable for competent developers,” he said.

Several industry experts agree that, given the ambitious housing plans, the success of projects like Chaka will depend on overcoming financial and logistical hurdles, leveraging local and international expertise, and creating a conducive environment for public-private partnerships.

Real Estate Deal Falls Through: Anxious Investors Left With Purpose Black’s Promises

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A Federal Higher Court ruling has ended the legal battle between BGI-Ethiopia and Purpose Black, marking the end of property acquisition and dashing the dreams of thousands who invested in a proposed 115-storey skyscraper project.

Complying with the city masterplan, the brewery which is relocating operations from its 30,000Sqm facility in Mexico Square, made a deal with Purpose Black to transfer the property. The court battle ensued after BGI expressed feeling a “lack of genuine commitment” and released statements cancelling the transaction two months ago.

In an interview with Fortune a few weeks ago, Company CEO Herve Milhade said: “BGI Ethiopia is a solid and serious company looking for buyers who can finance the purchase; this was obviously not the case.”

Under the terms of the court ruling, BGI-Ethiopia refunded the earnest one billion Birr payment to Purpose Black. The latter has agreed to leave the property, dropping its plan to finance the construction of a residential apartment on the site. Executives of the brewery intend to float a bid and sell the property to another buyer.

Incorporated by Fisseha Eshetu (MD), the four-year-old company Purpose Black Ethiopia initially planned to finance the transaction by selling shares worth 1.5 million Br. Their peculiar marketing scheme that included a gift clause that promised to reward buyers ownership of a three-bedroom 100Sqm apartment brought them into the public eye. The share price later increased to 3.5 million Br offered to a select group of 750 individuals, with dividends set to flow in after construction of “KeGeberew Tower” was completed in four years.

The nearly 1,750 prospective apartment owners who bought shares have been growing anxious by the day, amid the protracted real estate deal.

Eyersualem Shewangizaw, 46, sold her home in Dukem town, Oromia Regional State, for three million Birr after being enticed by advertisements on social media about an apartment life with her five children. She bought shares worth 2.5 million Br in the third round of sales, with hopes of moving to the capital.

“I was mesmerised by the offer,” Eyerusalem told Fortune.

She claims to have signed a seven-page contract, assuming that it was for the sale of apartments. Eyersualem has been staying at her mother’s Qebele house a few kilometres away from what she thought would be her new abode around the Mexico roundabout.

“All I knew was I would get a house in a few years,” she told Fortune.

Eyerusalem plans to go to Purpose Black offices to request the return of her initial capital. However, the management at Purpose Black remains resolute in their optimism that all will be resolved soon for the shareholders.

“Funds would not be returned to shareholders,” said Tefera Alemayehu, assistant to the CEO. He said certificates of share ownership were given to buyers, which in no way implied much more than share purchases.

He said they plan to call a general assembly to discuss with shareholders how they may pursue their investment aspirations. While avoiding details, Tefera has a glass-half-full optimism that shareholders will be treated to a rewarding set of alternatives.

“We have crafted exciting plans,” he told Fortune.

He claims the company secured a plot in the Wossen area in the Lemi-Kura District for an affordable housing scheme that will begin construction shortly.

“We are also near to securing other plots,” he said.

Ermias Birhanu (PhD), legal department head, said they are nearing finalising procurements across multiple plots, providing shareholders with development alternatives, declining to comment further on the matter, until a press briefing to be held soon.

“The site in Wossen will not be enough for all shareholders,” he told Fortune.

Officials at the Ministry of Trade & Regional Integration had warned Puropse Black management of the questionable advertisement methods during the issuance of the shares. Mitkwa Adugna, head of desk support & integration of share companies at the Ministry, said the warnings to the company to refrain from the unconventional marketing scheme fell on deaf ears.

“We told them to change the ads,” she told Fortune.

However legal experts remain skeptical of the company’s marketing scheme and its adherence to the commercial code.

Gebeyaw Semachew, a lawyer and consultant for the past 15 years, said shares can only be divided in cash, not physical items, raising questions over Purpose Black’s entire financing scheme. He said the shareholders are fully entitled to take the matter to court and reclaim their lost investments.

“It was an illegal marketing scheme from the start,” Gebeyaw told Fortune.

Gebeyaw recommends that minority shareholders request a buyout of their shares by the major ones during the general assembly meeting or explore ways to transfer to a third party.

“They should be cautious in their decision-making,” he said.

All eyes are on the pending approval of a directive by the Ethiopian Capital Market Authority (ECMA), which is expected to regulate the issuance of shares to the public. The pending bill stipulates that misleading promotions and public issuances without registered prospectus disclosures can result in as much as 15 years behind bars.

Solomon Zewde, senior legal advisor at the Authority, underscored the need for transparent communication to maintain the integrity of both the companies and investors. He hinted possibility of reviewing share issuance, according to the Capital Market Proclamation, if the initial documents presented to the public were found to have been fraudulent or misleading.

Solomon said companies with plans to issue shares will have to register their securities within a year, once the Authority board approves the IPO directive.

“It will deter any new issuances of an unclear nature,” Solomon told Fortune.