Call for entries: The Earthshot Prize 2025 – Seeking groundbreaking solutions to restore our planet

November 2024 – Following a record-breaking year for nominations, and a historic first awards ceremony on the African continent, The Earthshot Prize (TEP) is officially open for entries for its 2025 cohort and MultiChoice is proud to once again be an official Africa nominator for TEP.

TEP seeks innovative solutions across five critical Earthshots: Protect and Restore Nature; Clean Our Air; Revive Our Oceans; Build a Waste-Free World; and Fix Our Climate.

This year’s cycle saw an unprecedented surge in nominations, with over 2,000 entries received from 139 countries, demonstrating a growing global momentum for environmental innovation.

The star-studded awards ceremony, held in Cape Town, South Africa was broadcast live to millions of people across the continent by MultiChoice, the official African broadcast partner of TEP.  The ceremony celebrated several African-led initiatives, including:

Green Africa Youth Organisation (GAYO) (Ghana): Winner of the Clean Our Air Earthshot, GAYO is tackling air pollution with its innovative “Zero Waste Model”.

Keep IT Cool (Kenya): Winner of the Build a Waste-Free World Earthshot, Keep IT Cool is revolutionising food preservation for small-scale farmers and fishers with its sustainable refrigeration systems.

These winners, along with all other TEP recipients, exemplify the power of local solutions to address global challenges and contribute to the 2030 Agenda for Sustainable Development. Each winner receives £1 million in prize money to scale their impactful solutions.

TEP invites individuals, communities, businesses, and organisations across Africa and beyond to submit their groundbreaking ideas and technologies that can accelerate the transition to a sustainable future. The Prize seeks solutions that are:

Impactful: Demonstrating tangible positive effects on the environment.

Inspiring: Motivating others to act and join the global movement for change.

Inclusive: Benefitting communities and promoting equitable access to resources.

TEP is a beacon of hope in the face of the climate crisis, searching for the next generation of environmental pioneers who are developing innovative solutions to repair the planet. Anyone with a bold idea is encouraged to apply here.

At the heart of TEP’s mission is a determination to bring environmental solutions to scale as fast as possible, to reach the goal of protecting and restoring the planet by 2030.

The deadline for entries is 4 December 2024.

 

For more information, please visit: https://www.multichoice.com/nominations-25.php
For media queries contact: Moipone Tsotetsi – Moipone.Tsotetsi@multichoice.co.za
For entry queries email: Info@multichoiceafrica.com

About The Earthshot Prize:

Founded by Prince William and The Royal Foundation in 2020, The Earthshot Prize is a global environmental prize designed to discover, accelerate, and scale groundbreaking solutions to repair and regenerate the planet. Inspired by President John F. Kennedy’s Moonshot, the Prize aims to catalyse an Earthshot challenge to encourage and scale innovative solutions that can help put the world on a trajectory towards a stable climate where communities, oceans, and biodiversity thrive in harmony by 2030.

 

 

A Successful ‘Comeback’ to Healthy Knees

“I hope I will never have to miss out on a soccer game ever again.”

Suffering from a meniscus tear in his right knee due to an accident as a 60-year-old patient, Marty Curry’s life had been through a great deal of change.

Orthopedic diseases affect the life quality of a patient at a great level, both physically and mentally. As the pain caused by the disease grows, some patients do not even want to leave their homes in order to avoid the possible pain that they can face outside. As the pain becomes chronic at some point, the constant feeling of “being unable” starts to affect one mentally along with the physical damage.

Being the director of an international school in Djibouti and the father of three, 60-year-old Canadian Marty Curry had quite an active life. Shortly after winter break, he had an injury on his right knee. Hoping the pain was not serious and would get lighter with time, he waited out and postponed to have medical support. However, his pain got worse and came to a point where he could not exercise, walk, or even leave his room at school. Being active and into sports for all of his life, this was the worst-case scenario for Curry. Therefore, he decided to consult a physician and figured out about the torn meniscus on his knee.

“From the day I stepped off the plane, up to this moment; it has been an exceptional experience.”

He began to search for a good hospital for his condition and finding out that Acıbadem had quite professional physicians and staff, he decided to come to İstanbul, Turkiye for his surgery. Knowing that Canada, where he is from, has a problem of waiting to get medical services; and in Djibouti, where he lives, had insufficient healthcare technology; he was shocked by the treatment he got in Turkiye.

Associate Professor of Orthopedics and Traumatology Dr. Ata Can is a surgeon who specializes in hip and knee prostheses. He is a successful surgeon who has been capable of doing both conventional and robotic surgeries in the Acıbadem healthcare group since 2017. He is working with quite experienced surgeons in his field and has been to the USA for a shoulder fellowship program in 2012.

When Dr. Ata Can examined Curry; he found out that the cartilage in his knee was completely torn due to a traumatic accident. Therefore, he could not use a partial prosthesis method and covered the whole inner cartilage with the prosthesis called Unicondylar prosthesis to repair the damage in the knee. With this method, the healthy parts of the knee remain untouched resulting in a faster recovery period after the surgery.

Now, in the recovery period after completing the surgery on July 26 2024 successfully, he cannot wait to return to his daily routine and be active and involved as a director in his school.

“I was very confident that I was in good hands”

“I think the most important part of this whole process is the medical attention that I received and I cannot say enough about the quality of care that I received. I want to say thank you to Doctor Ata Can, he was there for me every day, checking up on me, and making sure that I was healing, even on the days that he was not scheduled to be working. Every day that I was here, I was very confident that I was in good hands and that I was getting the best possible care.”

You can also reach out to our experts and get free second medical opinion through the link: https://acibademinternational.com/

 

TAXING TIMES AT MERCATO

Business owners in Mercato were reeling from a crackdown on tax compliance that has disrupted the heart of the capital’s commerce. Tax authorities have intensified efforts to enforce receipt issuance and tax payments, leading to widespread protests among traders who argue that the move exacerbates an already fragile business climate. Many shops remained closed last week in defiance, while some retailers have discreetly moved their goods under the cover of night to avoid potential confrontations. Over 10 out of 34 commercial buildings had completely closed shops for two days. A 38-year-old retailer, sitting uneasily outside his modest shop in the “Military Tera” area, voiced deep uncertainty about the future. His inventory remained untouched as he hesitated to engage in any sales, describing his interactions with local tax authorities who have threatened hefty fines and legal action for not issuing receipts, even for goods acquired years ago.

Retailers argue that the root of non-compliance lies upstream, with wholesalers and importers often failing to issue receipts. Some manufacturers support the enforcement, citing unfair competition from businesses that bypass regulations, while others feel burdened by what they perceive as a punitive tax environment. Economists advocate for a more inclusive and transparent tax regime, urging authorities to address evasion at the source. Ethiopia’s tax-to-GDP ratio has plummeted from 13.2pc to less than seven percent over the past decade, pressing tax authorities for reforms. The federal government aspires to boost domestic revenues to 1.5 trillion Br this fiscal year, with a target tax-to-GDP ratio of 10.2pc by 2028. Authorities are introducing QR-coded VAT receipts to combat tax evasion. Tax experts say that effective administration requires consistent enforcement and disciplined oversight, while tax specialists warn inconsistent enforcement only nurtures evasion and unfair competition.

In Civil Service Overhaul, Pay Raises Spark Hope, Inflation Fuels Doubt

The federal government is to establish a Merit & Wage Board, chaired by the Prime Minister, to oversee wage adjustments for the country’s 2.4 million civil servants. The seven-member board includes representatives from the ministries of Planning and Finance, the Ethiopian Statistical Service, the Ethiopian Civil Service Commission, and private sector members.

The federal government has launched a major overhaul of its public service sector, pledging to enhance efficiency, transparency, and service delivery. A new bill before Parliament introduces wage reforms and structural changes.

“The legislative framework was necessary to make the reform practical,” said Negeri Lencho (PhD), chairperson of the Standing Committee on Human Resource Development, Employment & Technology Affairs, while presenting the bill to Parliament.

The government has allocated a budget of 91.4 billion Br to implement salary increases for public sector employees. Of this, 71.8 billion Br is earmarked directly for civil service employees, with the rest designated for higher officials and security personnel. Wage increments will vary across different pay grades. Employees earning around 1,100 Br a month, the lowest-paid workers, can expect substantial raises of up to 332.7pc. Those in a high-wage bracket, up to 20,468 Br, will see more modest increases, ranging down to five percent.

“Wage adjustments have begun to be implemented,” said Yigezu Jemaneh, head of work evaluation and payment research at the Ethiopian Civil Service Commission. “Wage reforms are crucial for boosting productivity and enhancing the public sector.”

A committee is being formed to conduct timely studies on wage adjustments in response to inflation. Despite the wage increases, some civil servants express scepticism about the reforms’ ability to meet the rising cost of living.

Meselech Tariku is a civil service employee in Addis Abeba, earning 8,000 Br a month. Even with the proposed 17pc increase, she believes the wage increment will not adequately cover her expenses amid soaring inflation.

“It’s getting hard to live on,” she said.

According to a study by the International Labour Organization (ILO), while nominal wages in Ethiopia have tripled over the past decade, real wage growth has increased by only 7.4pc due to persistent inflation. About 48pc of civil service employees, approximately 1.1 million people, earn less than 6,000 Br a month, placing them below the extreme poverty line.

The bill also established a new institution responsible for training, examining, and certifying public servants. Prime Minister Abiy Ahmed’s (PhD) administration hopes this body will ensure all public service employees meet required competency standards.

“We’re making major changes in public services,” Negeri said, stating the importance of competency testing for new and existing employees. “Failure to obtain certification could lead to dismissal.”

State Minister for Finance Eyob Tekalegn (PhD), disclosed an impending restructuring of the civil service, a shift in the government’s role as a primary employer.

“The civil service is not the sole employer in the country,” he said, advocating that reprioritising the public service from quantity to quality would decrease budgetary strain while improving services.

However, the bill has sparked debate about the role of inclusivity in the public sector. While the government asserts that ethnic and religious inclusion will enhance efficiency and transparency, some members of Parliament expressed concerns. Desalegn Chane (PhD), an MP from the National Movement of Amhara (NaMA), voiced strong opposition to incorporating ethnic inclusivity in public institutions, arguing that it contradicts fair judgment and merit-based recruitment.

“Giving power to an employer to move an employee upon its wish will open the door for human rights violations,” Desalegn said, expressing worries about potential abuse of power and infringement on labour rights due to provisions that allow employers to transfer civil servants within the same institution and pay grades.

Awoke Amzaye, an MP from the Ethiopian Citizens for Social Justice (Ezema) party, echoed these sentiments and cautioned that prioritising ethnic values and inclusivity could compromise efficiency.

“Skills are more important than inclusivity,” he told Parliament, drawing comparisons to companies like Google, where hiring is based on skills contributing to their success.

Despite the concerns and debates, Parliament ratified the bill into law with a majority vote, with three MPs voting against and four abstaining.

The Addis Abeba City Administration is finalising regulations for disbursing the increased wages to its 168,000 public service employees across 71 institutions.

“Preparations are underway, and the wage adjustment will be disbursed within a few weeks,” said Melaku Alemu, head of human resource development at the Public Service & Human Resource Development Bureau.

According to Melaku, civil service reform is essential to improving service delivery, boosting productivity, and enhancing civil service management. He cited low salary satisfaction, inadequate resources, limited professional development opportunities, and low prestige as factors contributing to low motivation among civil servants.

A development economist and labour market researcher, Jemal Mohammed (PhD), acknowledged the government’s efforts to address productivity issues within the public sector through performance-based merits.

“Civil servants’ underperformance was affecting the economy,” he said, pointing to deep-rooted issues that have undermined productivity.

However, Jemal disagreed with the push for ethnic inclusivity in all offices, arguing that it could undermine efficiency. He also questioned the effectiveness of small wage adjustments in improving the lives of the civil service army.

“In-kind adjustments, such as providing affordable housing options, could be a more sustainable solution,” he said.

Despite wage increases, many public sector employees remain below the poverty line because inflation has eroded their purchasing power. The government’s reforms are seen as an attempt to address these issues by adjusting wages and restructuring the civil service to focus on quality.

 

Lingering EV Charging Station Regulations Stifle Investors

Months after the Institute of Ethiopian Standards introduced benchmarks for electric vehicle (EV) battery lifespan and capacity, the absence of accompanying standards for charging stations has stalled multimillion-dollar projects and left the industry in limbo. While the safety and performance standards for EVs were hailed in September as a milestone for the sector, their impact has been limited without corresponding implementation measures for critical infrastructure.

A regulatory framework for charging stations remains absent, creating substantial bottlenecks. Ethiopian Electric Power (EEP), for instance, signed a 25 million dollar agreement with Cardinal Industrial Plc a couple of years ago to build 500 charging stations. Yet, the project remains delayed.

“We can’t start without directives or regulations,” said Moges Mekonnen, EEP’s Communication Director.

Those who have built a scaled-up investment have been caught in another developmental project. GreenTech Africa’s 4.5-million-Br charging station near the Sudan Embassy was demolished before it could become operational due to a corridor development.

Established in 2021, GreenTech leaders believe imported, manufactured, and assembled EVs must be suitable for the country’s infrastructural and environmental conditions while having adequate battery capacity of a minimum 200Km for a full charge range.

Fitsum Derresa, project manager at GreenTech, noted that most EV owners charge their vehicles at home, limiting the business potential of expansion. Unless public transportations are transformed to drive demand, he suggested integrating charging points into existing gas stations.

“The high cost of expansion on top of this makes investors hesitant,” he told Fortune.

However, investors like Libya Oil Ethiopia Ltd and TotalEnergies have taken a cautious approach, opting to wait and assess demand. Both companies have installed charging points at the African Union compound and Africa Avenue (Bole Road), respectively, but have refrained from scaling up efforts.

“We’re uncertain of the future,” said Solomon Tesfaye, finance manager of OilLibya.

The lack of a regulatory framework also extends to issues like electricity tariffs and the standardisation of charging equipment. Even though the standard is in the works at the Institute, authorities at the Petroleum & Energy Authority (PEA) have drafted a directive for Electric Vehicle Charging Systems (EVCS) to address these gaps, pending approval.

According to Bekelech Kuma, communication director, the draft directive is expected to establish licensing requirements, standardise imported equipment, and set market-based electricity tariffs. It also proposes strategically placing charging stations at intervals of 50Km to 120Km and requiring each station to have its transformer.

The federal government’s ban on petroleum-powered vehicles last year was intended to reduce foreign currency outflows and align with sustainability goals. While the Institute’s safety standards aspire to ensure EVs are suited to the country’s roadway and weather conditions, the lack of implementation guidelines threatens these economic and environmental objectives.

According to Yilma Mengistu, director of standards development at the Institute, the standard for charging stations is underway along with a 10-year development strategy for the EV sector to guide its growth.

He said the focus on safety and performance is essential as importing automobiles with marked foreign exchange requires careful consideration to avoid increased maintenance costs down the line.

“Imported vehicles must deliver value for money,” said Yilma.

The Institute expects the Ministry of Transport & Logistics to issue a directive that will help implement the safety standards prepared by the technical committee for road vehicles and approved by the National Standardisation Council.

Importers and assemblers also have concerns. Belay Ab Motors, which has sold around 10,000 vehicles, has long advocated for clearer requirements. Deputy General Manager Setotal Tarekegn welcomed the standards but noted, that there are long list of demands: “We need regulations for chargers, as different regions use distinct charging standards.”

The lack of spare parts further compounds the issue. Henok Haimanot, an EV importer, said he had to include importing spare parts noticing the dire need.

EVs imported over three years ago feature lead-acid batteries, a cause for worry, according to Yonatan Sisay, a technician at Gerar EV Workshop. He recommends lithium-ion-based EVs with an active battery management system as it can balance the cells in the battery, leading to efficiency and longevity.

Yonatan stated that four-wheeled vehicles should not use lead-acid-based batteries because they have a shorter life span.

“It’s possible to change it to lithium-ion,” Yonatan said. “However, not in the current technological capacity at hand.”

The Ministry oversees the enforcement of these standards, requiring all imported EVs to provide certificates of origin and pre-export verifications of conformity.

According to Birhanu Gidi, a senior expert at the Ministry, the electric vehicles that were previously imported were part of the initiative to promote the development of the EV sector. While there is no specific standard for electric vehicles, he believes there is a general rule for vehicles imported to Ethiopia, provided by the Ministry.

“It governs previously imported electric vehicles as well,” he said.

With the establishment of standards and the implementation of service directives, he is optimistic about the sector’s growth.

While the draft directive offers hope for the sector’s progress, delays in approval and implementation risk undermining ambitions for a sustainable and modern EV ecosystem.

 

Arada District Land Auction Sees Dwindling Interest

The third day of land auctions in Addis Abeba saw one of the lowest participation rates, with many sites failing to attract sufficient interest despite it coming after a two-week postponement.

Held in the Arada, Addis Ketema, and Kolfe districts, the fourth round auction showcased a mixed level of enthusiasm among developers. With 543 bidders competing for 63 plots across three districts, participants expressed disappointment, where a third of the plots offered failed to draw bidders.

Despite being a prime business area, Arada saw one of the lowest bidder turnouts in recent years. Only 15 bidders participated in plots in recently cleared areas of Abuare and Bella. Of the 17 plots offered, 16 failed to attract sufficient bidders, with just one plot drawing four offers. The highest offer came with a bid of 141,201 Br for a square metre while Ayat Realestate S.C. secured the plot with a 45pc upfront payment, followed by Reality Realestate S.C., which offered 85,100 Br with a 60pc down payment.

This turnout sharply contrasts with last year’s auction in the same district, where 295 bidders vied for 22 plots in the recently demolished Piassa area.

Chale Abraham, head of land transfers at the Addis Abeba Land Development & Administration Bureau, noted the decline in both the number of bidders and land prices compared to the previous auction. In May, Awash Bank won 311,000 Br for a square metre in the same district while the first bid last year saw fierce competition reaching 406,667 Br for a square metre in Nefas Silk Lafto, which offered 39 plots and attracted 434 bidders.

“Perhaps prime areas have already drawn attention in previous auctions,” said Chale.

However, he considered the lowering of prices a positive development. “Even though more participants were expected, prices have stabilised.”

Despite a two-week delay due to low initial participation, Chale described last week’s auction as successful and announced plans to float another bid within a month, including the unclaimed plots.

The auctions align with the City Administration’s Corridor Development and Local Development Projects, designed to create new plots from recently cleared areas and reshape the city’s landscape. Winners of the auctions are required to settle payments within five years, with non-compliance leading to the transfer of plots to the runner-up. This policy is rooted in the 2011 lease proclamation, which uses bid price and advance payments as determining factors.

The bidding process was marked by anticipation and anxiety. At the Bole district land bureau hall, a metal box containing bid documents became the focal point as land administrators scrutinized submissions. While bidders awaited results with bated breath, critics examined the process, analysing winners, disqualifications, and unclaimed plots.

Out of 63 plots offered, 22 failed to attract sufficient bidders, and 85 bid documents were disqualified for not meeting requirements. Kolfe Qeraniyo District emerged as the standout, offering 23 plots and drawing 386 bidders. The plots ranged in size from 98sqm to 1,475sqm, attracting intense interest for residential purposes in areas less prone to urban renewal demolitions.

Addis Ketema District, offering 23 plots near Addis Sefer and Asko, attracted 164 bidders. The highest bidder, Kahlid Sheicho, secured a 103sqm plot for 72,815 Br for a square metre with full upfront payment. Another bidder, Desalegn Tasew, obtained a 196sqm plot with a bid of 42,000 Br per square metre, also paid upfront. Desalegn, a seasoned participant, expressed confidence in his strategy of targeting areas likely to attract individual bidders.

In Kolfe, Hanan Mohammed emerged as the top bidder, offering 130,000 Br a square metre for a 106sqm plot, with full upfront payment. The District’s location away from the city centre drew interest.

While stakeholders navigate challenges such as declining bidder interest and regulatory inconsistencies, experts emphasize the need for policies that prioritize inclusivity and infrastructure development.

Experts observed a decline in bidder interest in the Arada district, citing new regulations and bureaucratic hurdles that have made development financially burdensome. Elias Teklay, a lawyer specialising in land disputes, criticized the ambiguity and inconsistency of expropriation laws. He argued that simple circulars and letters often serve as de facto laws, leading to unpredictability and unfair evictions.

Elias also highlighted deficiencies in urban infrastructure, such as water and electricity, which he believes are critical to sustainable development. He advocated for clearer, more consistent regulations that avoid conflicts and ensure fair development processes.

“The absence of accountability has allowed abuses of power, including evictions that conflict with the city’s master plan,” he said.

Contrasting current practices with the public-focused development initiatives under the previous administration, Elias criticised the exclusionary nature of recent projects.

“Urban development should be inclusive and consider the needs of the broader community, not just facilitate a capitalist restructuring that disregards existing urban structures,” he remarked.

The fourth round of land auctions underscores the complexities of urban development in Addis Abeba. As the city reshapes its landscape, a balance between modernization and public interest remains critical.

Agri Ministry Targets Animal Disease Control, Traceability, Global Standards

Ministry of Agriculture is poised to transform the livestock sector with a bill that introduces a national veterinary laboratory network and a traceability system. The Animal Health & Welfare Act, which was tabled to Parliament last week, aspires to modernise veterinary infrastructure, improve disease control, and align the country with international standards.

Officials hope this will address issues that have long hampered the sector, such as inadequate veterinary care and weak export standards.

State Minister Fikru Regassa (PhD) acknowledged the prolonged process of drafting the law, citing over 14 years of restructuring within the Ministry and the Ethiopian Agricultural Authority. Despite the delays, he expressed optimism about the potential to improve exports and reduce animal mortality rates caused by poor practices.

“We’ll increase our market share internationally,” he said.

The livestock sector faces untapped potential. While the country could export 200,000tn of meat annually, only 12,168tn was achieved last year—61pc of the Ministry’s target. Live cattle exports also fell short, with 256,809 animals exported against a target of 320,000.

However, officials report progress this year. In the first quarter alone, livestock exports exceeded projections, generating 10.7 million dollars from 109,000 heads. They attribute the increased earnings to increased demand, transportation improvements, availability of international standard quarantine and foreign exchange rate increments.

The proposed law outlines measures to modernise the livestock sector. Key provisions include setting qualifications for animal health professionals, establishing an Animal Health Board, and mandating disease reporting. It also focuses on disease control and the development of essential health facilities.

Lack of quarantine facilities nearby is raised by health experts in Borena Zone, Oromia Regional State, as a major issue.

Guyo Kunchora (PhD), an animal health expert, said livestock owners must transport animals nearly 555Km to Bishoftu (Debrezeit) town, increasing disease transmission risks and contraband trade.

Despite vaccination efforts, Guyo noted that diseases originating from neighbouring Kenya remain a persistent issue. Borena has an estimated five million cattle, rescued from the severe drought in 2022, where 3.3 million were lost.

“We still don’t have enough animal feed reserves,” he told Fortune.

Regulating quarantine sites is another critical component of the legislation. Abdulsemed Mohammed, CEO of Furaat Livestock Exporter, expressed cautious optimism, accentuating the potential to restrain corruption and streamline export processes. His company exports 200 to 500 live cattle and 10tns of meat monthly to the Middle East.

However, he noted ongoing struggles with the results of pre-slaughter examinations, which usually end up being rejected abroad. Abdulsemed said livestock that were deemed

“The expertise of examiners is questionable,” he told Fortune.

According to experts, Mille quarantine in Afar Regional State is the first international-standard facility, with a capacity to handle 18,000 cattle at a time. Previously, exporters relied on smaller rented centres with limited capacity.

Hayder Kemal, from the Ethiopia Livestock Exports Association, raised concerns about the ambiguity surrounding the registration of quarantine sites and transportation conditions for livestock. The bill states that quarantines must be registered with the Authority for quality control, but Hayder questioned how this would apply to rented facilities.

“Further clarification is needed,” he commented.

Officials clarified that the requirements are about meeting standards, not ownership.

Fikru said preventing disease transmission is one cornerstone of the bill. It mandates veterinary movement permits for transporting livestock, detailing the animal’s health status, origin, and destination. Markets and gatherings where animals are assembled will require prior approval to mitigate disease spread.

During the discussion, Abdulkader Mohammed (PhD), animal health regulatory director in the Afar Regional State, had reservations. He observed that the bill disregarded traditional pastoralist practices and expects forthcoming consultations to address such concerns.

State officials, such as Yohannes Girma (PhD), advisor to the State Minister, emphasized initiatives to safeguard pastoralist regions. He said cooperative unions aim to integrate livestock owners into insurance and trading systems, enabling sales at peak market value. Last year, participants in such programs received 30 million Br, with 160,000 individuals now involved.

The proclamation underlines the importance of building robust veterinary infrastructure. It calls for the establishment of a national veterinary laboratory network to enhance disease diagnosis and control.

The issue of stray animals is also addressed, mandating that any individual who encounters or suspects an animal to be roaming must report it to the nearest veterinary authority, animal health officer, or local administration. The State Minister said veterinary personnel are tasked with capturing and caring for such animals, locating their owners, or ensuring “proper management” if they are neglected.

“It’ll reduce risks associated with strays, including the transmission of zoonotic diseases,” he said.

Zoonotic diseases remain a critical concern. A 2021 study ranked Ethiopia second in Africa for human rabies deaths, with over 2,900 fatalities annually. Livestock losses to rabies also pose an economic burden. Regional states like Benishangul saw cattle populations decline from 700,000 in 2020 to 527,000 due to disease outbreaks and instability.

The National Veterinary Institute, established in 1964, plays a pivotal role in combating these challenges. Currently producing 23 types of vaccines, the Institute plans to expand production to meet growing demand. Director General Takele Abayneh (PhD) noted that the new law allows private sector involvement in animal medical centres, improving accessibility.

“We’re hopeful,” he said.

Traceability is another focus of the draft proclamation, vital for meeting international market standards. A pilot system that registers the livestock is underway in two slaughterhouses, marking progress toward accurate livestock population data.

Ethiopia’s livestock includes an estimated 71 million cattle, 52 million goats, and 42 million sheep. Agricultural sector accounts for 40pc of the country’s GDP and employs 80pc of the country’s workforce. The government targets exporting 390,000 live animals and 15,000tns of meat this fiscal year.

Despite previous laws on animal safety and health, weak enforcement has hindered export standards. Quality concerns also persist, as inadequate care and harmful practices, like whipping animals, degrade meat quality. Veterinarian Nadi Hailegiorgis stressed the need for proper training.

Experts like Elias Demeke (DVM), deputy manager of BCD Consultancy Services, advocate for establishing quarantine and phytosanitary zones to enhance competitiveness. Controlling illegal cross-border livestock movement also remains a pressing issue.

He recommends a dedicated border guard and stakeholder involvement in policy-making to address challenges effectively.

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Sidama Region Fuel Shortage Fuels Parallel Market Surge, Testing Officials’ Resolve

Sidama Regional State is gripped by a severe fuel shortage, forcing regional officials to confront a thriving parallel market and deep-seated issues within the petroleum supply chain. Despite state interventions, industry experts and distributors questioned the effectiveness of proposed solutions and called for clarity on responsibility and oversight.

While fuel availability has improved over the past few months, the parallel market has grown increasingly bold, with benzene prices soaring to 150 Br a litre, over 60pc higher than the official price of a little over 90 Br.

During a recent meeting, Seharla Abdulah, director general of the Petroleum & Energy Authority (PEA), conceded to the shortage.

“The situation has become beyond our control,” she said.

According to Seharla, rampant illicit activities were plaguing the fuel sector. The Authority has attempted to crack down on the illicit trade, seizing fuel logistics operations in the parallel market. Over three days last week, authorities confiscated 13,000 litres of benzene valued at over one million Birr, impounded 15 vehicles allegedly involved in illicit logistics, closed three gas stations, and apprehended 28 individuals.

Yet these efforts appear to have done little to stem the tide.

Bekelech Kuma, communication director for the PEA, disclosed that gas stations in the regional state received 430,315ltrs of benzene from November 14 to 19, delivered in nine rounds by seven distributors. According to her, retail inspections are the responsibility of regional authorities, who have set their daily requirement at 110,000ltrs. Yet fuel shortages persist at the 57 operational fuel retailers.

Amid Ahmed, the regional security bureau’s communications head, blamed “individuals with sole interest in profiteering” for fueling the crisis.

The parallel market continues to flourish in the Sidama Regional State, where illicit fuel sales are not new, acknowledged Selamawit Mekuria, head of the regional trade bureau. However, she blamed a combination of illicit trade and questionable practices at some gas stations for exacerbating the current shortage. A temporary task force, comprising representatives from the regional transport bureau, gas stations, distributors, and the trade bureau, has been established.

Regional officials have also mandated the installation of security cameras in all gas stations by the end of the month, enforcing a law passed last year. However, these measures may be insufficient to address systemic problems within the fuel supply chain that continue obstructing progress. One major issue is the absence of a digitised payment and logistics system, which has created traceability problems.

Fuel stations routinely contact the PEA, making up to 30 to 40 calls daily to inquire about the status of their fuel orders.

“There’s a lack of clarity about order acceptance or rejection due to payment problems,” said Seharla.

According to her, the confusion impedes efficient distribution and opens the door to malpractice.

Ethio telecom has proposed integrating payment verification into the Fuel Supply Chain Management System (FSCMS), an ordering platform used by stations, suppliers, and the Ethiopian Petroleum Supply Enterprise (EPSE) under the PEA’s oversight. The integration tracks gas stations with outstanding payments through cash or credit systems, ensuring confirmed orders are fulfilled.

Distributors, who met last week at Skylight Hotel, on Africa Avenue (Bole Road), voiced their concerns about the proposal. Their misgivings about TeleBirr’s dominance, the mobile money platform operated by Ethio telecom, was apparent, fearing it undermines their credit relationships with banks. Gas stations often use diverse payment methods facilitated through distributor credit, sometimes for periods exceeding a month.

“We need to incorporate companies that extend credit to gas stations into the digital system,” said Shimelis Shewaqena, from the National Oil Company Ethiopia (NOC).

In June, the Ministry of Transport & Logistics mandated digital payments for retail and wholesale fuel markets. TeleBirr dominates the fuel transaction market with a 96pc share, having transacted 306 billion Br involving 1,700 gas stations and 1.1 million vehicles, including three-wheelers.

Nedaj, a competitor app in fuel retailing, backed by the Commercial Bank of Ethiopia (CBE), has recorded 6.03 billion Br in transactions. However, it is not currently integrated into the management system and could be sidelined if TeleBirr’s integration proceeds.

“We haven’t received any requests to update our application and link it to the system that controls wholesale trade,” said Bersufekad Getachew, CEO of Eaglelion System Technology Plc, the software developer behind Nedaj.

While Ethio telecom seeks to expand its share of the wholesale fuel trade, the Authority has broader ambitions. Seharia and her legal team have drafted a bill on petroleum products marketing, which is slated for a public hearing this week. The bill defines the obligations of operators in the petroleum sector, including gas stations, distributors, EPSE, carriers, and direct users. It also mandates that all petroleum product transactions be conducted through a digital payment system authorised by the Authority.

Industry players have voiced concerns about the bill.

According to Efrem Tesfaye, a board member of the Petroleum Distributors Association, theft starts at the calibration stage, where the volume of petroleum fluctuates. He is concerned about omitting temperature checks, a crucial factor impacting volume. Temperature-related volume discrepancies could lead distributors to lose up to 1,000ltrs of benzene a truck, costing up to 95,000 Br on average. Citing the international standard of conducting handovers at room temperature, Efrem urged adherence to global best practices.

“We need modern solutions to prevent theft at the calibration stage,” he said, stating that calibrated meters are exposed to tampering and modification.

There are 58 companies in the petroleum value chain, far more than the four well-known international companies that served the market for decades before the permit requirements were relaxed. Prospective companies in the value chain are required to build and operate four gas stations with a half-million-litre depot.

Industry operators like Ephrem attribute the rise in illicit fuel trading to the low barrier of entry. They lobby the authorities to raise the entry requirement to 10 stations and a two-million-litre depot.

Others in the industry remain optimistic about the bill’s potential impact.

“The new legislation will effectively address the industry’s problems such as adulteration,” said Ketema Sileshi, general manager of Africa Oil.

Adulteration involves mixing low-priced petroleum products with other fuels. According to Ketema, the recent liberalisation of the foreign exchange market and subsidy reduction have restrained fuel smuggling to neighbouring countries. He hopes that the penalties to be legislated will deter illegal activities and protect legitimate traders.

The bill imposes harsh penalties on transporters who knowingly allow illicit transportation. They could face jail terms of three to seven years, as well as vehicle and product confiscation. Individuals storing or selling petroleum products outside designated areas or in unauthorised containers may have their products seized, face up to three years in prison, and face fines ranging from 50,000 Br to 100,000 Br.

However, even those upbeat about the bill acknowledge the need to refine the fuel supply chain management system.

According to Ketema, there are two critical drawbacks. The system cannot limit transactions between buyers and gas stations, allowing for overcharging based on vehicle capacity. It also lacks real-time visibility into fuel stock levels at stations, relying solely on information provided by the stations themselves. He urged the implementation of better calibration technology at stations to accurately monitor stock levels and the integration of vehicle plate numbers into the digital system to limit overselling and combat illicit trade.

For Serkalem Gebrekristos (PhD), an expert with two decades of experience in the petroleum supply business, allowing distributors to leverage partnerships among existing players would enable them to secure a safety stock of half a million litres without the need for multiple depots, reducing costs and avoiding idle capital.

“This approach could discourage adulteration and facilitate the consolidation of oil companies into fewer, and more reliable interests,” he said while advocating for the EPSE to ensure a seamless flow throughout the value chain, stating the potential for adulteration associated with numerous depots.

Serkalem, a former CEO of Dalol Oil and founding commercial manager of NOC, cautioned against the Authority being granted overreaching and overburdening power, such as being mandated to grant construction permits for fuel stations. Beyond the immediate concerns of fuel shortages and the parallel market, he observed critical oversights in the proposed legislation including ambiguity surrounding fines for selling above-regulated rates and the repeated offenders clause, which is open to interpretation.

According to him, the legislation lacks giving attention to lubricant blending as well as the marketing of liquified petroleum gas (LPG). He also points to lacking considerations for a “Land Abandonment Certificate” for discontinued fuel stations which involves an environmental assessment, removal of underground storage tanks, soil testing, and proper documentation to ensure the land is safe for future use.

“There’s an urgent need for clarity and coordination to address the complex issues facing the fuel sector effectively,” Serkalem, currently a regional representative for Habitable Energy Solutions Africa, told Fortune, pointing to a potential conflict of roles between the Ministry of Trade & Regional Integration and the PEA.

 

Editor’s Note: This article was updated from its original form on November 27, 2024.

During Taxing Times, Tax Hunt Tests the Limits of an Unsteady Economy

The fiscal puzzle deepens as the Council of Ministers approved a supplementary budget of 581 billion Br last week, over half the federal budget ratified only months ago. Not even halfway through the fiscal year, Prime Minister Abiy Ahmed’s (PhD) administration faces mounting pressure following the liberalisation of the foreign exchange market, which triggered an unprecedented erosion of the Birr against major currencies. Despite government ambitions to raise 1.5 trillion Br in domestic revenues next year, the budget deficit is set to widen.

Trying times loom for the government, and businesses are expected to shoulder the financial burden.

The tax system is transforming as authorities intensify efforts to boost revenues. Initiatives such as the crackdown on receipt issuance in Mercato, the largest open market in Africa, and heightened scrutiny on under-invoicing signal an urgent attempt to bridge the fiscal deficit and address inefficiencies in foreign exchange management. Yet, these reforms have ignited public discontent over their broader economic and social consequences.

In a country where small businesses constitute the backbone of the economy, and an increasing number of informal traders wrestle with taxation compliance, the fiscal authorities’ approach should warrant closer examination. Economic recovery and growth depend on balancing taxation, regulation, and encouraging a thriving business environment. Addressing the root causes of economic malaise, including economic downturns and informal financial practices, should be imperative.

Trade practices remain largely dependent on basic import-export activities. Encouraging businesses to explore value-added industries and improve domestic productivity is essential. Pursuing long-term economic reforms is vital to modernise the tax systems and support sustainable trade practices. The current domestic revenue mobilisation mechanisms are inefficient and outdated, leading to lost revenues and unreported transactions. Overhauling these systems to ensure real-time revenue access and greater transparency would make tax collection more efficient and encourage businesses to operate within the formal economy.

Economic volatility is partly a consequence of political instability. Frequent shifts in government policies and priorities breed uncertainty, undermining business confidence and deterring investment. A more consistent, long-term vision for economic growth is needed, moving beyond reactive measures like tax hikes and shop closures. Revenue generation should stem from a balanced approach, ensuring taxes are neither too high to burden traders nor too low to restrict public services.

While enforcing tax compliance is important, policies could prioritise the population’s well-being. Closing down small businesses and implementing harsh taxation measures may appear as solutions to fiscal issues, but such actions can erode public trust. Ethical governance involves creating systems that help companies to thrive and encourage voluntary compliance with regulations. The authorities should focus on improving citizens’ livelihoods, especially small traders who are hardest hit by the stringent measures. This approach requires investing in training, education, and crafting a business-friendly environment that promotes the formalisation of the economy without penalising those striving to make a living.

Understandably, raising domestic revenues is the lifeblood of any state, funding schools, hospitals, roads, and other pillars of stability. Yet, even this basic function becomes a Sisyphean task for fragile and conflict-prone states like Ethiopia. Despite efforts to strengthen fiscal systems, these countries remain trapped in a cycle of fragility, unable to collect sufficient domestic revenues to sustain their economies, let alone promote long-term development.

According to the International Monetary Fund (IMF), fragile states, home to nearly half the world’s poorest people by 2030, collect an average of 12pc of GDP in tax revenues, six percentage points below their non-fragile peers. Ethiopia’s is even further down at eight percent. These gaps are beyond technical problems, reflecting broader institutional voids defining fragility such as corruption, weak governance, and political instability.

In some countries where insurgencies wreaked economic havoc, fragile states’ reliance on external factors such as remittances uncovers the precariousness of domestic revenue streams. The data are sobering. According to the IMF, these states struggle particularly with taxes on goods and services, the bedrock of many modern tax systems. These taxes constitute two to three percent of GDP in fragile states, compared to six to eight percent in non-fragile developing countries. The reasons are manifold, including limited administrative capacity, fear of social unrest, and lack of political will to confront entrenched interests.

Institutional improvement and sustained political commitment are imperative. Even marginal gains in governance, such as reducing corruption or enhancing bureaucratic effectiveness, can lead to marked revenue increases. But these are precisely the areas where fragile states face the greatest difficulties.

Global pandemics, such as COVID-19, added a new layer of complexity, decimating revenue bases as economies contracted and governments were compelled to provide emergency relief or forfeited domestic revenues. Fragile states saw their average tax-to-GDP ratios dip further, from an already low 12pc to 11.3pc in 2020. The long-term consequences could be devastating without aggressive measures to rebuild tax bases.

Targeting high-potential sectors, simplifying tax systems and focusing on large taxpayers can help fragile states build momentum. However, the larger lesson is that tax reforms require more than technical fixes. They demand political courage, a clear vision, domestic consensus and sustained support from international partners. Ultimately, the struggle to mobilise domestic revenues in fragile states is about more than budgets and balance sheets. It is a test of whether governments can deliver the stability, services, and opportunities their citizens deserve. The stakes could not be higher as these countries walk the tightrope to ensure law and order that offers businesses the mobility they seek.

Ethiopia’s situation encapsulates this fragility. The administration’s ongoing aggressive revenue-boosting measures risk stifling the very economic activities it pursues to tax. Balancing the immediate need for funds with the longer-term goal of economic growth is a delicate act. The authorities should ensure that their policies do not undermine small businesses and informal traders, who are vital to the economy.

The path forward demands reimagining the relationship between the state and its citizens. Governments should build trust by demonstrating commitment to competence, transparency, efficiency, and the welfare of the broader population.

Blossoming Exports Caught Under Thorny Debates Over Land, Employment, Legacy

The floriculture industry has become the second-largest export earner after coffee, generating nearly half a billion dollars and employing tens of thousands. Yet despite its economic contributions, the industry remains clouded by scepticism and mired in political smearing for almost two decades.

The industry took root in the early 1980s when state-owned farms began producing and exporting flowers to Europe. It flourished in the early 2000s, especially after 2003 when an influx of foreign firms sparked a surge in exports. Today, flower farms cover about 1,600hct, generating 467 million dollars in export earnings and providing 60,000 people with jobs. Undoubtedly, it has become a force in the economy to be reckoned with.

However, the smear it was subjected to during the 2005 hotly contested elections remains to cast a long shadow over the industry. During the heated campaign, leaders of some opposition parties accused the incumbent party at the time of allowing foreign flower companies to exploit Ethiopia’s land and harm the environment. They alleged that these companies were fleeing damaging reputations in their home countries and that floriculture was inconsistent with national priorities.

The negative perceptions weren’t based on facts or direct experience. They were a product of political hit work at swaying public opinion. The narrative took hold not only among ordinary citizens and the authorities but also among academics and professionals across various sectors. Many became reluctant to acknowledge the positive aspects of the flower business despite its discernible benefits to the economy.

Social scientists argue that bias could be one reason unfavourable news proliferates. People naturally focus more on potential threats or adverse developments, which historically helped humans survive. In the modern context, bad news is more likely to be shared and spread quickly. Media outlets often exacerbate this tendency. Negative stories attract more viewers and engagement, creating a cycle where such news is prominently featured and widely disseminated.

Social media platforms’ algorithms, which favour content that elicits strong reactions, further amplify the spread of hapless narratives.

The impact on Ethiopia’s floriculture industry has been consequential. Unverified claims and misinformation have affected the industry’s reputation, potentially slowing investment and growth. Companies have had to deal with public scepticism while trying to expand operations and implement sustainable practices. According to industry operators, overcoming negative public perceptions remains challenging despite their investments in environmental safeguards and community programs.

Many flower farms have adopted stringent environmental regulations and close monitoring systems. Some have diversified their production; land once used exclusively for flowers now cultivates strawberries for export to Europe and the Middle East. The sector is evolving and contributing in more ways than one.

Ironically, the negative image persists. Unrealistic or false stories can stir emotions and alter perceptions long after they have been debunked. The internet era has both complicated and offered solutions to this issue. While misinformation can spread rapidly online, the same platforms provide opportunities to share accurate information and positive developments.

Experts emphasise the importance of distinguishing facts from falsehood. Acknowledging that not all aspects of the floriculture industry are flawless, stakeholders advocate for realistic assessments based on research and evidence. No industry is without its problems; informed discussions allow us to address issues constructively rather than being swayed by unfounded claims. With the potential to effect positive change at both the sectoral and societal levels, accurate information should empower the industry to make better decisions.

Many in the industry are optimistic that they can flourish economically and win over public trust with transparency and engagement. The fields of roses, carnations, and other blooms could continue to grow, destined for global markets because the floriculture industry represents more than an export commodity for the thousands of workers employed and the communities supported. It is a pathway to growth.