Compromising on Child Nutrition: At What Cost?

At pediatric offices, churches, and social gatherings, I usually find myself in conversations with other parents, typically initiated by those who stop by to say hello to my daughter. She is a friendly child, always ready with a smile, a clap, or a wave to anyone nearby. Inevitably, our exchanges turned to baby feeding, with parents curious about my breastfeeding experience and surprised at the variety of homemade foods.

Many are intrigued that she eagerly drinks water and has yet to taste sugar or salt, with comments of astonishment over how strong and healthy she has become solely on breastfeeding and home-cooked meals. My husband and I are committed to this approach. We prepare and pack meals for her whenever we leave the house, even when travelling, making sure we have everything needed to avoid factory-packaged or restaurant foods. It surprises me that so few parents we encounter bring their baby food, even to places where we wait for long periods, like pediatric clinics.

It is clear this is not about affordability—these parents dress well, drive modern vehicles, and visit private paediatricians with substantial fees. Yet, I repeatedly see signs of neglect when it comes to proper nutrition. Many parents seem to overlook that children are fast-growing humans with unique dietary needs that require attention and planning.

The problem became even clearer at pediatric offices in town, where some parents spend hours waiting, unprepared with food for their little ones. Many resort to feeding infants with formula after formula, or even fast foods and sugary drinks, to keep them satiated. I have observed parents serving spicy, salt-laden stews or sugary treats to children under a year old, overlooking the fact that their babies’ digestive and renal systems are not yet developed enough to handle such foods. They justify it as an attempt to “accustom” the child to adult food, also claiming it saves them the time and effort required to prepare age-appropriate meals.

Unfortunately, these convenience-driven choices have consequences. Medical professionals stress that early childhood nutrition is critical for lifelong cognitive development and physical health. Studies underscore the impact of nutrition, particularly from conception to age two, on brain and physical development. Children at this age need key nutrients such as iron, iodine, zinc, folate, vitamins, and omega-3 fatty acids to support brain cell formation and cognitive processes. The studies I looked at confirm that adequate early nutrition correlates with improved attention, memory, and problem-solving abilities, while deficiencies can result in long-term cognitive setbacks.

A diet rich in fruits, vegetables, proteins, and whole grains establishes the foundation for optimal brain development and lifetime health. Experts also warn that poor nutrition in early childhood can increase susceptibility to chronic diseases like diabetes, hypertension, cardiovascular disease, and mental health issues in later life. Early exposure to healthy eating habits forms patterns that safeguard against these risks.

We have found these assertions profoundly true. Aside from a single emergency room visit for an egg allergy, my daughter has shown remarkable strength against illness, which her paediatricians attribute to the continuous nutrient-rich diet she has received since birth. This did not come without effort. When introducing solids at six months, we learned that developing a child’s taste for healthy food is an art. It was a challenge at first to create meals without salt, sugar, or artificial additives, making food visually appealing with colours and textures.

By seven months, my daughter was not only accepting but enjoying a range of natural flavors and textures, as we regularly introduced new tastes. It became a joy to watch her appetite grow alongside her physical activities, and we continually increased her portions as her caloric needs rose. The work was considerable—cooking daily, planning balanced meals, and even skipping our meals occasionally to focus on her needs. Yet, the payoff has been worth it.

Nutrition in early childhood has a lasting impact, shaping not only physical health but cognitive and emotional development. When parents think of meal preparation as arduous, we must remind ourselves of the long-term implications of what we feed our children. Good nutrition at a young age can be the bedrock of a healthy, capable, and resilient life—a small sacrifice today for a lifetime of benefits.

 

Is Home Where the Heart is, or Where Opportunities Are?

There was a time when the allure of America captivated me, as it has for many peers chasing the famed American dream. Hollywood painted images of boundless opportunities, and I, too, imagined my future there—particularly with three uncles already residing in the States. Year after year, I tried my luck with the Diversity Visa Lottery, hoping for that elusive opportunity. Eventually, however, the notion of leaving became just that—a notion. As the years passed, I found a surprising peace in my life here in Ethiopia, grounding myself in the familiar and abandoning thoughts of relocation.

Though the spark to explore the world lingered, I grew to understand that my heart belonged here. This was not about blind patriotism, but a feeling of comfort within my surroundings. The idea of starting fresh, forging new relationships, and immersing myself in an unfamiliar culture felt daunting. I believed I could thrive anywhere, but the energy for such a transition seemed formidable. What truly rooted me was the support of family and friends—an unbreakable safety net that would catch me through any challenge. Those bonds were irreplaceable, and I would not trade that sense of belonging for anything.

Lately, however, my husband and I have been rethinking this stance. Despite not being an Ethiopian national, he cherishes this country as his own. Still, the instinct to consider a different future has been stirred, driven by our children’s needs and survival in a world of rising uncertainties. The prospect of leaving fills me with a certain dread. How would I adjust? How would I cope without Ethiopia’s simple comforts, like Injera, which I cannot imagine life without?

Meanwhile, social media has transformed a phrase written by a girl in her final moments into a catchphrase for migration, denoting a casual “let’s leave.” The phrase, once a powerful expression of despair, has morphed into a casual term associated with escape—a truth that echoes among many facing Ethiopia’s economic struggles. It is a truth that echoes among many: life in Ethiopia has become painfully difficult.

I see a harsh reality. It is not a lack of love for a country that drives people to leave; it is inflation’s merciless grip that strains daily existence. The birr’s diminished value means that despite working harder, incomes barely cover escalating costs. Ethiopia’s financial burden leaves many struggling, and for some, the only answer seems to be seeking work elsewhere, even at the expense of property and livestock.

Many, like my own household helper who has been like family for three years, see no change on the horizon. Her dream is to work abroad for a few years, save up, and return to buy a home— in her hometown. This aspiration is common among friends and relatives seeking security beyond our borders.

The reality, however, is filled with hardship. Selling a home and spending half a million birr to attempt dangerous sea journeys is difficult to fathom. With such funds, a small business here might seem more practical, yet the perceived safety net of “out there” overshadows reason. These decisions reflect the desperation for change in their lives and the high cost of hope abroad, both financial and emotional.

In the end, this painful reality underscores a profound dilemma—a tug-of-war between wanting a better life and the bonds that root us here. If anything, it calls for an earnest commitment to improving the conditions that keep people close to their homeland. This is not just about retaining people, but about ensuring they can thrive where they call home.

Dashen Bank Bets on Treasury Moves to Sail Through Economic Strains

Dashen Bank’s performance last year represented a marked rebound in its foreign exchange dealings, complemented by considerable revenue and asset growth. It has also capitalised on strategic investments and treasury adjustments to reverse previous forex losses, achieving a net gain of 129.34 million Br in foreign exchange operations, transforming a loss of 342.9 million Br registered the previous year.
“Shareholders should be delighted for such performance in the face of adverse business conditions,” said Abdulmenan Mohammed (PhD), a financial statement analyst based in London.
A keen and close observer of the financial sector for two decades, Abdulmenan echoed how banks operate in an economy experiencing inflationary pressures and foreign exchange shortages, which impact loan portfolios and operational costs. The National Bank of Ethiopia (NBE) has imposed policies to curb inflation, including a 14pc cap on credit growth and an increase in the emergency lending facility rate by two percentage points to 18pc. These policies have constrained banks’ lending capacities and earnings potential, pressuring financial institutions to seek alternative revenue streams.
Despite these headwinds, Dashen Bank reported a net profit of 4.88 billion Br for the last fiscal year, marking a substantial 37pc increase over the previous year and building on a prior year’s growth of 22.8pc. Its total revenue surged by year-on-year growth of 33.8pc to 23.5 billion Br. Interest income from loans, advances, and government securities rose by 30pc to 17.44 billion Br. While interest income from loans and advances grew modestly by 1.27pc to 15.39 billion Br, interest income from Treasury bills, government bonds, and deposits soared by 55.3pc to 2.05 billion Br.
Dashen Bank’s ability to achieve substantial net income is believed to reflect effective risk management and operational efficiencies.
Analysts attributed this shift to a carefully recalibrated approach within its treasury, which optimised overnight foreign investments and strategically managed forex allocations.
“It was a deliberate action,” Asfaw Alemu, president of Dashen Bank, told Fortune. “The Treasury wing undertook this major assignment.”
According to the analysts, this shift reveals a strategic choice toward investing in government securities to offset limitations on credit growth.
Asfaw concurred.
“Our strategy centred on income diversification and operational efficiency has been instrumental in navigating adverse business conditions,” he told Fortune, speaking from Washington DC, where he attended the IMF-World Bank summit last week. “We’ve focused on market enhancement, cost optimisation, and improving customer experience.”
An economist by training graduating from Addis Abeba University and the University of Ghana, Asfaw has been with Dashen Bank for nearly two decades, serving as president for 10 years. Under his managment, the Bank’s total assets expanded by 26.9pc to 183.72 billion Br. He serves on the boards of Nyala Insurance, EthSwitch, and Debremarkos University and is the Deputy President of the Ethiopian Bankers’ Association (EBA). His extensive career began as a project officer at the Development Bank of Ethiopia (DBE), a state-owned policy bank, advancing through roles at Wegagen Bank as vice president for Credit & Risk Management, and later working in finance and business development at Unity University.
Under his watch, liquidity improved markedly, with cash, bank balances, and short-term Treasury bills (T-bills) increasing by 48.7pc to 19.79 billion Br. Investments in three-month T-bills increased by 301.9pc to 6.35 billion Br, and fixed-time deposits surged by 443.9pc, enhancing interest income from these sources.
“We worked hard to manage it properly,” said Asfaw.
The Bank’s total loans and advances increased by 14pc to 114.28 billion Br, although this represented a slowdown from the prior year’s 28.5pc growth due to the Central Bank’s lending restrictions.
The Bank mobilised 145.86 billion Br in deposits, a 26.9pc growth, while its liability to total assets ratio rose from 8.3pc to 10.8pc. However, the loan-to-deposit ratio dropped from 87.2pc to 78.75pc due to policy caps on credit growth, signalling a more conservative lending approach under regulatory constraints. Dashen Bank’s return on assets (RoA) increased to 2.7pc, and its return on equity (RoE) rose to 20.4pc, both up by two percentage points from the previous year.
Its strategy of diversifying income sources and focusing on non-interest income, such as fees and commissions, which increased by 29.8pc to 4.75 billion Br, has paid off in boosting its financial performance.
However, Dashen Bank’s earnings per share (EPS) experienced a slight dip due to capital expansion efforts. The EPS dropped by one percentage point to 43.3pc, down from last year’s 442 Br. Asfaw sees this as a temporary dilution, a natural outcome of raising capital, and believes that further capitalisation will be made to enhance future profitability. The Bank increased its paid-up capital by 28.4pc to 12 billion Br, not only achieving a capital adequacy ratio of 15.6pc, but also nearly double the regulatory minimum.
Abdulmenan believes Dashen Bank’s strong capital position provides a cushion for absorbing potential losses and supports future growth initiatives.
Dashen’s income profile positioned it as the second-largest among the private banks, facing intense competition from peers such as Awash International Bank (AIB) and the Bank of Abyssinia (BoA). Its net income of 5.07 billion Br in the 2023/24 fiscal year accounted for approximately 8.69pc of the industry’s total net income of 58.3 billion Br. The state-owned Commercial Bank of Ethiopia (CBE) posted a net income of 21.06 billion Br, and the AIB posted 8.13 billion Br. BoA generated 4.01 billion Br, and Cooperative Bank of Oromia (Coop Bank) earned 2.96 billion Br.
The close competition among top-tier private banks compelled Asfaw and his senior executives to review strategic initiatives to maintain and enhance their position.
Operational challenges also persist, including managing rising expenses and improving customer service. Total expenses amounted to 17.2 billion Br, with interest expenses on deposits growing by 30pc to 5.28 billion Br, driven by intensified efforts to mobilise deposits and offer competitive rates to retain customers. Wages and benefits rose by 37.8pc to 6.53 billion Br, and other operating expenses surged by 45.3pc to 4.3 billion Br.
The Bank’s impairment losses on loans and other assets increased by 17pc to 703.07 million Br. The rise is partly attributed to loans disbursed in conflict-affected areas, signalling stringent credit risk assessment and management. According to Abdulmenan, the rising costs in wages, operations, and impairments warrant close attention from the Bank’s senior executives.
“While these expenses have risen, we view them as necessary investments in human capital and infrastructure to support future growth and competitiveness,” said Asfaw.
He argued that employees are Dashen’s greatest assets, advocating for salaries and benefits aligned with productivity metrics such as the branch-to-employee ratio. With a nationwide network of 882 branches and a workforce of 18,555, Asfaw believes Dashen’s pay philosophy is central to its retention strategy, keeping the Bank competitive.
“Wage adjustment is reasonable with the inflation,” said Asfaw, justifying the rise in employee expenses in light of the economic climate.
Dashen Bank’s largest district, East Addis Abeba, oversees 82 branches. Located in a prime area on Namibia Street (Bole Medhanealem), it caters to high-net-worth clients and exporters. According to its District Director, Wubshet Deribe, branches under his supervision focused on loan interest and foreign exchange allocations, areas of high demand among their clientele. He observed that the recent market-based economic liberalisation presented challenges and opportunities for the District.
“It’s a double-edged sword,” Wubshet said.
Dashen was one of the first banks to hold its annual general assembly at the Millenium Hall on Airport Road in mid-October. Incorporated in 1995 with a modest paid-up capital of 14.9 million Br equity raised from 11 founding shareholders, it has expanded over the years to a shareholder base exceeding 4,932.
Among these long-term shareholders is Girma Desalegn, who bought shares 15 years ago while working with Equatorial Business Group (EBG). Girma hoped to see Dashen further specialise in a specific business sector as it raises additional capital. He expressed satisfaction with the Bank’s “solid performance,” noting its robust profit growth and liquidity in a demanding economic environment.
Board Chairperson Dulla Mekonnen concurred. According to him, the Bank has met its commitments to customers despite conflicts, forex shortages, supply chain disruptions, and price hikes in global trade.
“Heightened competition and macroeconomic issues left the industry with limited resources,” he told shareholders.
Branch managers, such as Tiruneh Getahun, noted the hardwork required in acquiring new clients and adapting to market uncertainties.
“We need to focus on attracting new clients with active transaction accounts and enhancing retention strategies,” said Tiruneh, speaking of the importance of improving fund transfer efficiency and leveraging the Bank’s successful record in tracking real-time gross settlement (RTGS).
Dashen Bank’s senior management acknowledged these concerns and conceded that enhancing customer service culture and operational efficiency are critical strategic priorities.
“We plan to implement branch optimisation,” Asfaw told Fortune. “We’ll invest in technological assets to enhance operational efficiency and customer experience.”
According to the President, Dashen Bank has recognised the need to adapt to the evolving financial sector, which includes potential competition from digital disruptors and foreign banks. The anticipated liberalisation of the financial sector for foreign capital could introduce additional competition, pressuring Dashen to innovate and improve service quality.
“We must prioritise innovation, operational efficiency, and customer service enhancement to maintain our market position and drive future growth,” Asfaw told Fortune.

Fire Engulfs Mercato, Exposes City’s Safety Flaws

A former teacher, Tesfaye, has lost two out of his three shops during a fire breakout last week. His sister was managing one of the shops while their family’s livelihood depended on it. He had seen the extent of the damage four days later and did not process it fully.
“I don’t think I’m sane,” he told Fortune.
Tesfaye, in his late 30s, is in shock. He carried a bunch of onions in a black plastic bag as he waited for the shareholders of the damaged building to start a meeting. It took too long and Tesfaye could not bear to stay for another minute.
“I better go home and chop up my onion,” he said while walking out of the hall.
Merkato, the largest open market in Addis Abeba, endured a devastating fire last week that ravaged 550 small shops and damaged two prominent buildings in the Shema Tera area, renowned for traditional clothing production. The fire inflicted considerable harm on the Nebar Trade Center from its third to fifth floors, while the Shema Tera Trade Center underwent relatively minor damage, leaving much of the area in disarray.
The pungent odour of burnt plastic and garbage filled the air even days after the blaze. Half-burnt traditional clothes lay scattered about as city authorities commenced clearing the charred debris. Metal remnants that survived the inferno were auctioned off to a bidder who paid 850,000 Br, while local officials assessed the damage, a task of immense proportions given the fire’s extent.
The fire broke out on Monday, October 21, 2024, at dusk, quickly intensifying and raging for over 24 hours. Though the main blaze was extinguished, residual smoke and occasional sparks lingered until four days later.
Another trader was Abdulwehab Shamil, who has run a traditional clothing business for the past 20 years. He has lost half a million Birr.
His shop, inherited from his father who had crafted traditional garments, was entirely gutted. Six employees relied on the shop for their livelihood, as did his family.
“Our life depended on this business,” he said, visibly disheartened by the immense loss.
The loss is not only financial but also emotional, as their connection to Merkato stretches back decades.
Another long-time trader, Werku Woldemedhin, lost two shops housed in the Nebar Trade Center: a shoe warehouse and a children’s clothing store.
“It held nearly one million Birr in materials,” he said.
The scale of the disaster prompted a response from local authorities. Aida Awel, head of the Addis Ketema District, remarked that the fire department’s collaboration with various stakeholders was instrumental in containing the fire.
“It could have spread far beyond its initial impact,” she noted, adding that the densely packed shops posed considerable risk.
It took hours. But the city’s fire department managed to control the blaze despite logistical hurdles. The incident spotlighted the difficulties of emergency response in densely populated urban settings. The Commissioner said that they struggled to reach all corners due to narrow alleys and obstructed pathways.
One of the damaged building Nebar Trade Center housed over 700 shops and counted more than 200 shareholders.
Abebaw Tefera, a board member of the share company, disclosed that over half the building’s façade was impacted by the flames, estimating the structure’s value at more than 500 million Br. For the community reliant on the building, the destruction represents an immense setback, both economically and socially.
The fire’s origin has fueled widespread speculation among stakeholders and witnesses. Mubarak Kamil, board chairperson of the Nebar Trade Center, said that the fire began amidst a cluster of small shops, later spreading to the larger building. According to him, the crowded environment, coupled with limited access roads, severely hampered the fire department’s efforts.
“It could have been far worse,” he said, pointing to the highly flammable materials stored throughout the area.
Efforts to restore normalcy are underway, albeit slowly. On October 26, board members of the Nebar Trade Center regained control of their building from the Federal Police. Mubarak outlined the board’s immediate priority.
“Returning to our previous status is essential,” he said. “We need to rebuild not only our livelihoods but also the market’s spirit.”
Officials met with shop owners, pledging to support recovery efforts. Habiba Siraj, head of the Addis Abeba Trade Bureau, stated that they are exploring options to help traders reestablish their businesses.
The incident has reignited conversations around disaster preparedness, especially in urban markets where fire risks remain high. Fikre Gizaw, commissioner of the Addis Abeba Fire & Disaster Risk Management Commission, noted the need for construction regulations to incorporate disaster prevention measures, such as ensuring safe surroundings and managing flammable materials.
He said another issue was posed by onlookers who, in their attempts to assist, complicated the efforts of the fire department.
“When community members rush into the flames, it often causes more harm and disrupts our work,” he noted.
Fikre’s interview with state media underscored the deficiencies in safety awareness and the inadequacy of fire control infrastructure. In a city rapidly urbanising like Addis Abeba, proper fire prevention measures in commercial buildings remain sporadic, with little oversight. The Commissioner called for rigorous enforcement, insisting that the agency overseeing construction should directly verify the presence of fire control infrastructure.
Around 523 fire incidents were recorded across Addis Abeba last year. Through emergency interventions, the Commission saved 156 lives and prevented material losses totalling 35 billion Br. Despite these efforts, gaps in disaster readiness remain.
Mayor Adanech Abebie acknowledged the infrastructure barriers that slowed the fire department’s response, particularly the lack of adequate road access for emergency vehicles. She revealed that the city administration has been exploring options to secure a helicopter for aerial fire control, which could greatly enhance response capabilities in congested areas like Merkato. The Addis Abeba City Police, meanwhile, reported that the fire’s cause is under investigation. They also disclosed the capture of 33 suspects implicated in thefts during the fire, along with reports of two severe injuries and seven minor injuries sustained in the chaos.
For the neighbourhood surrounding Nebar Trade Center, the incident was a sombre reminder of persistent bureaucratic delays. Gossaye Gura, head of Merkato Meserete Lemat S.C., voiced frustration over a stalled construction project intended to improve the market’s infrastructure. Since 2010, the share company had plans to build a large shopping mall, which would span 2,500Sqm with a half-a-billion Birr budget.
Bureaucratic red tape, however, has stymied progress.
“This tragedy might have been averted had our building project been completed on time,” he said, lamenting the financial setbacks shareholders now face.
A total of 318 shops under the share company were destroyed in the blaze. He noted that only a few owners managed to salvage their belongings, while fire department arrived promptly but was hindered by access issues.
“We lost far more than we should have,” he said.
The fire’s aftermath has led to renewed scrutiny of building standards in Merkato. Addis Ketema District currently has 182 companies with approved building proposals, 77 of which are share companies. Of these, 10 received approval last year, with another 33 proposals under review. Some companies, according to Yidnekachew Girma, head of the District Trade Bureau, have been waiting over two decades for permits, an administrative bottleneck that leaves buildings vulnerable.
Merkato is not just an economic centre but a hub of entrepreneurial ambition for rural migrants hoping to make their way to the capital. It is estimated that over 7,100 businesses are housed and more than 200,000 people engage daily, contributing a quarter of Addis Abeba’s annual revenue. Shema Tera, the area affected, is particularly a hub for footwear-related businesses, with many engaged in both production and trade.
Fitsum Teklemichael, an occupational health and safety expert, stressed that buildings should be outfitted with emergency water lines for incidents like this while training for first responders is equally crucial. Fitsum’s recent survey of building fire readiness in Addis Abeba revealed that none of the security personnel were adequately trained in using fire extinguishers, an oversight with dire consequences in such emergencies. Fire safety systems like alarms, detectors, and sprinklers are vital, according to him, but they require annual inspections and tri-annual functional testing to ensure effectiveness.
In Merkato, however, many small trade establishments lack even basic safety features, with electrical systems often installed by non-professionals and frequently overloaded. The absence of dedicated fire hydrant lanes has only intensified challenges, adding to response times.
For future prevention, Fitsum urged building owners to acquire fire extinguishers and incorporate safety systems, noting that simple investments in safety could mitigate substantial risks.
“The first three minutes of a fire are critical,” he noted. “If it isn’t contained immediately, larger-scale responses are necessary.”
Insurance, usually overlooked in Merkato, has proven essential. Assegid Gebremedhin, an insurance consultant, noted that the congestion and flammable materials in Shema Tera pose severe risks, compounded by a lack of building standards. Small shops, operating under substandard conditions, often cannot secure insurance.
The Nebar Trade Center, however, was insured by Oromia Insurance, allowing shareholders to claim compensation. Assegid noted that fire and lightning coverage accounts for less than three percent of Ethiopia’s insurance market, with penetration rates below one percent.
“Insurance awareness remains exceptionally low,” he said.
While insurance may provide a temporary buffer for affected merchants, Assegid noted the need for a more robust approach to fire risk management in heavily trafficked areas like Merkato.

Infrastructure Woes Derail Hosting Football Dream

Ethiopia’s football scene is undergoing a transformative period, marked by ambitious aspirations and pressing issues. The country’s dream of hosting the 2029 Africa Cup of Nations (AFCON) has ignited excitement, but the reality of a struggling domestic league and a lack of adequate infrastructure casts a shadow.
A storm of financial woes had caught the six clubs competing in the premier league, as they struggled with a lack of viable stadiums to play in the capital for the past four years. The match between two veteran rival clubs Ethiopian Coffee S.C. and St. George S.C. was one of the biggest games attended in Addis Abeba Stadium, with entrance revenues reaching as high as one million Birr.
Since 2020, Addis Abeba Stadium has been undergoing renovation work. With that, delayed construction projects have forced the clubs to play in far-flung regional state stadiums, draining their finances and leaving fans frustrated.
Kifle Seife, general manager of the Ethiopian Premier League, laments the loss. Revenue from ticket sales now rarely crosses the 250,000 Br threshold, a fourth of the sums that Addis Abeba’s stadium could generate.
The capital’s absence of a usable, certified stadium has forced clubs into a nomadic existence. Clubs like Ethiopian Coffee S.C. and St. George S.C. could previously command over one million Birr in matchday revenue.
However, according to Fekade Mamo, president of Ethiopian Coffee, playing away from Addis Abeba sees them pocketing little more than 100,000 Br a game. He said the iconic football derbies have been reduced to lacklustre, sparsely attended matches, depriving clubs and sponsors of vital fan engagement.
Playing over 37 games a year, regional matches in places like Adama, Dire Dewa, and Hawassa cities cost Ethiopian Coffee close to a million Birr for a game—more than their income from tickets.
“The loss is too much,” he said.
For the national team, the Walias, the problem is no less acute. Since Addis Abeba cannot host international fixtures, the Ethiopian Football Federation (EFF) is forced to stage games abroad. Rental costs for stadiums, along with travel expenses, add up to a staggering 630,000 dollars in less than two years.
This diversion of funds away from player development and grassroots initiatives has further strained Ethiopia’s football prospects.
A lack of visibility has chased away more than just fans. With clubs facing poor attendance and low earnings, attracting sponsors becomes a nearly impossible task. DSTV, which is in the last year of its 22.5 million dollar contract with Ethiopian Premier League S.C., is on the fence about renewal.
The Federation’s former partnership with Walia Beer also ended last year, leaving Bunna Bank as the sole sponsor. This dwindling sponsor pool has left the Federation with a meagre 18 million Br annually—hardly enough to support a top-tier football ecosystem, according to Nebiyu Demesa, the Federation’s finance head. He believes the shift of home games to distant stadiums has cost the country around two million Birr per match in potential revenue from tickets, broadcasting rights, and advertising.
As financial losses mount, some clubs are beginning to re-evaluate their reliance on government support. Experts suggest that for these clubs, building independently managed stadiums offers the allure of financial autonomy and diversified revenue streams through rentals, concessions, and other income avenues.
Yet only a couple of clubs are truly financially independent while most rely on government support to stay afloat, with little room to invest in long-term stability.
The economic implications of a stadium extend far beyond ticket sales. Areas surrounding a stadium typically thrive when it is operational. However, recent renovations have led to the clearing out of businesses around Addis Abeba Stadium. The former Minister of Culture & Sport Kejela Merdasa, at the time, underscored the need for the vicinity to harmonize with the city’s layout and landscape. He stated that the area surrounding the stadium will undergo extensive cleaning and redesign to facilitate these changes.
Addis Abeba Stadium was built in the 1940s. With a long overdue renovation, the management said it included the import of 170,000 seats from China, upgraded lavatories, and a 48Sqm screen along with maintenance. The second phase alone has surpassed 292 million Br, underscoring a marked investment. However, the stadium was deemed unfit to host the premier league after hosting one game.
The challenges for Ethiopian football extend beyond logistical hurdles. A study by Solomon Seyoum titled Challenges in the Management of Football Clubs: The Case of Ethiopian Football Premier League, presented several critical issues facing Ethiopian football clubs, including a lack of FIFA-standard organisation, ineffective management systems, insufficient financial control, and deficiencies in public relations. He observed that it would hinder operational efficiency, limit visibility, and weaken the clubs’ connection with their fans suggesting reforms to improve the overall management.
Analysts argue that Ethiopian clubs must overhaul their financial and operational models to survive, suggesting that improved management, alongside active community engagement, could help restore interest and attract sponsorship.
Players and clubs were banking on Adey Abeba Stadium, around the Haya Hulet area, being operational when the renovation of the veteran stadium began.
However, the saga of Adey Abeba Stadium illustrates Ethiopia’s infrastructural struggles. A project that began in 2015 envisioned to cost four billion Birr has faced delays due to foreign currency shortages, labour issues, and COVID-19, dragging its timeline far beyond the initial two-year target.
According to a Parliament report last year by Kejela, the construction has thus far consumed 64 million dollars. Located on Djibouti St. near the Haya Hulet area, price surges forced contractual renegotiations with the Chinese contractor. The 62,000-seat stadium project’s first phase was completed for 2.47 billion Br.
Though a 50 million dollar cash infusion from the United Arab Emirates has provided a lifeline, the stadium is still years from completion. Under the direct watch of the Office of the Prime Minister, the project has added pressure to ready the stadium for Ethiopia’s proposed hosting of the 2029 Africa Cup of Nations (AFCON).
Yet infrastructure specialists like Abera Desalegn remain sceptical, noting Ethiopia’s longstanding difficulties in meeting international standards in basic amenities such as healthcare—a factor that could derail the aspiration.
“It might diminish the weight of the proposal,” he said.
Without decisive action, Ethiopian football’s grand vision may remain a mirage, held back by bottlenecks, strained finances, and an outdated operational model. As clubs struggle to adapt to an ever-changing landscape, the need for strategic planning and investment in both infrastructure and management becomes paramount. The concern is not shared with officials.
Asmera Gizaw, head of sports facilities at the Ministry of Culture & Sports, is optimistic that the country will soon complete both Addis Abeba Stadium’s renovations and 12 additional stadium projects. He believes the Ministry will cover its expenses within five years of operations citing the 668 shops and parking lot of up to 5,000-vehicle-capacity as revenue earners.
Last week, Adey Abeba Stadium was visited by Prime Minister Abiy Ahmed (PhD) and Patrice Motsepe (PhD), CAF president during the general assembly when Ethiopia disclosed its ambition to host the 2029 edition of Africa’s premier international men’s football competition.
“Ethiopia stands ready to support a successful outcome of the meetings,” said Abiy, on his social media platform.

“I don’t want to.”

Mesfin Araya (Prof), the chief commissioner of Ethiopia’s National Dialogue Commission, said last week that he has not sought an extension of the Commission’s mandate and has no plans to request one from Parliament. Only five months remaining before the federal agency’s legislative term concludes.

CBE, Oromia Bank Break Ranks as the Brewed Buck Buckles

The Brewed Buck’s persistent depreciation against the U.S. Dollar persisted over the past week, demonstrating an ongoing struggle with foreign currency shortages and mounting import pressure. The Birr weakened steadily across most commercial banks, with slight yet consistent daily upward moves in buying and selling rates. The trend reflects market expectations of sustained devaluation and uncertainties over the economy’s turmoil, characterised by a liquidity crunch on the domestic front.
Last week, Birr’s buying rate averaged 119.25 against a dollar, while the selling rate stood at an average of 121.55.
Most banks maintained a regulatory two percent spread between buying and selling rates, signalling a competitive yet constrained foreign-exchange market. However, the Central Bank exhibited outlier activity with a notably lower spread, ranging from 0.79pc to 1.34pc, compared with the market standard. This reduced spread reveals the Central Bank’s distinct role in attempting to stabilise the Brewed Buck during a weakening trend, using tighter margins to moderate fluctuations.
According to analysts, the National Bank of Ethiopia (NBE) may try to respond to currency volatility while acknowledging the overall devaluation trajectory. However, they caution the effectiveness of such interventions, which could be limited when private and commercial banks offer more competitive rates. Last week, the state-owned Commercial Bank of Ethiopia (CBE) and Oromia International Bank (OIB) emerged as outliers, adopting divergent strategies targeting forex scarcity.
CBE, the largest financial institution in the country, began the week with relatively lower exchange rates than its competitors. On October 21, its buying rate was 113.13 Br, markedly below the market average, and its selling rate was 115.39 Br. Three days later, the Bank sharply adjusted its rates upward by 3.07pc, with the buying rate climbing to 116.66 and the selling rate reaching 119.00, inching closer to its peers.
The abrupt shift could reveal a recalibration by CBE, possibly driven by the need to remain competitive as private banks offered higher rates, attracting customers seeking better deals on foreign currency. The initial reluctance to match prevailing rates may indicate a strategic lag or an implicit policy to limit currency outflows at lower rates before adjusting to market levels.
Oromia Bank maintained consistently high exchange rates throughout the week, peaking at a buying rate of 121.31 Br and a selling rate of 123.73 Br on October 25. The Bank’s aggressive approach appeared to capitalise on market dynamics to draw foreign currency. By offering near-premium rates, Oromia Bank positioned itself to attract hard currency from regional businesses and importers needing expedited access to forex, despite the associated premiums.
Analysts saw this strategy as both pragmatic and opportunistic. Banks like Oromia leveraged higher rates to secure scarce forex, which is vital for import-dependent businesses. Other banks, such as Amhara and Berhan banks, also maintained higher-than-average rates at 120.44 and 120.62 Br, respectively, demonstrating how smaller banks steer the tight supply of dollars by setting attractive rates for customers willing to pay a premium.
The persistent depreciation of the Birr exposed the underlying economic fundamentals that remain unaddressed. The main economy continues to struggle with severe foreign exchange shortages, driven by factors such as stagnant export revenues, rising import bills and external debt obligations. The upward trends in the exchange market since the liberalisation of the exchange market reveal the limited firepower of the Central Bank to check on the forex market.
Without substantial forex inflows, analysts warn that the Brewed Buck is likely to continue its depreciative trend. Banks’ divergent strategies reflect both their adaptability and the industry’s limitations in responding to macroeconomic pressures.

TIRE-ING SITUATION

Corrugated metal sheets held down by wooden beams, tires, and other materials help give shelter to this home in the Richie neighborhood. The area was known to hold one of the capital’s oldest bowling alleys. City residents make use of such materials to counter vulnerabilities exacerbated by mother nature’s forces. Satellite dishes are also attached to the roof, further bolstering it while contributing to residents’ entertainment options.

SIGN SURGE

A group of uniformed workers carefully pull down a sign board around Millenium Hall. The Corridor Development projects around Addis Ababa aim to modernize the city’s infrastructure by requiring digital signboards. Despite the additional costs, the initiative offers several benefits, including real-time updates, energy efficiency, dynamic content, and remote management.

MARKET MINGLE

Visitors walk around a Moroccan bazaar at the Hyatt Regency hotel featuring thirty Moroccan exhibitors showcasing offerings from leather goods to woodwork and bronze artistry. The capital hosted the inauguration of the Africa Hall last week which included several cultural side events including a fashion show with joint Moroccan and Ethiopian models in the rotunda of the newly inaugurated hall.

Historic Africa Hall’s $57 million Renovation Eyes Tourists

The iconic Africa Hall, where the leaders of 32 African nations gathered in 1963 to establish the Organization of African Unity (OAU), the precursor to today’s African Union (AU) was inaugurated after comprehensive renovation works at a cost of 57 million dollars. Initially designed by Arturo Mezzèdimi, a young self-taught architect, and constructed by Luigi Varnero to serve as the UN’s continental headquarters, the hall now looks set to open to the public and add to Addis Abeba’s touristic profile. The building was donated in 1961 by Emperor Haile Selassie to the United Nations and was declared a “Monument to African History” in 2015.
Prime Minister Abiy Ahmed said that the halls hold secrets of struggle and cooperation and is in line with his government’s endeavors to open previously closed spaces to the public. Claver Gatete, executive secretary of the United Nations Economic Commission for Africa, stated that tourism should drive growth on the continent and admired the renovation efforts that were under budget even with Covid-induced delays.
Observers praise one of the most significant modernist restorations on the continent and celebrate its reopening as a world-class conference and cultural venue.