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Month: December 2024

Humility in Victory, Denial in Defeat

Posted on by Digital Editor

The boxing arena erupted with the shouts of expectant crowds as the long-awaited rematch for the world heavyweight championship unfolded. This bout was a sequel to the controversial first fight between the two unbeaten titans, Oleksandr Usyk and Tyson Fury. Usyk had claimed victory by split decision, leaving Fury reeling from his first professional loss, which tarnished his previously unblemished record. Fury’s frustration was not entirely unfounded, as the split decision indicated that at least one of the three judges had scored the fight in his favor. In the months leading up to the rematch, Fury boldly insisted that he had been unfairly deprived of his win.

Usyk, on the other hand, never proclaimed himself the ultimate victor. He maintained a humble and sportsmanlike demeanor, contrasting sharply with Fury’s brash and dramatic persona both in and out of the ring. Their fighting styles also reflected this difference; Fury relied heavily on intimidation and physical dominance, while Usyk, with his smaller frame, depended on focus, composure, agility, and superior technique.

As the rematch concluded, the tension in the arena was palpable, with millions watching on TV around the world. The twelve rounds were fiercely contested, making the outcome difficult to predict. True to form, Fury raised his hand in anticipation of victory. However, when the announcer read the results, Usyk once again emerged victorious, this time by unanimous decision across all three judges’ scorecards. Fury stormed out of the ring, claiming he had been wronged yet again, despite consecutive defeats to the same opponent.

The contrasting reactions of the two fighters left the boxing world questioning whether the issue lay in the scorecards or Fury’s inability to accept defeat. One fighter displayed humility, while the other seemed to believe the world revolved around him.

It is human nature to resist outcomes that contradict our self-perception or worldview. Many harbor a sense of infallibility, and any event that challenges this belief can wound the ego deeply. Objectivity is often clouded by preconceived ideas, emotions, and biases. People frequently ignore facts in favor of personal interpretations, finding justification for their perspective even in the face of clear evidence.

I observe individuals holding rigid, polarising views on issues, often unwilling to consider alternative perspectives. Seeing the world through a different lens feels uncomfortable for many. Yet, the world has never been perfect, and no one can claim absolute certainty in their beliefs. Despite this, many cling to their viewpoints without room for introspection or self-examination.

Socrates’ famous assertion during his trial resonates: “The unexamined life is not worth living.”

I do not think our society has evolved to be curious and capable of reflective thinking yet; we have a long way to go in terms of putting ourselves in others’ shoes. We need to approach every belief system we are raised with, and hold dear, with a pinch of salt. While confidence and certainty in our viewpoints are positive attributes, they become detrimental when not supported by facts or logic. By selectively choosing evidence that reinforces our preferred worldview or standpoint, we limit our opportunities to learn about the world and coexist with others.

In a diverse society like ours, where a multitude of cultures, beliefs, and perspectives exist, seeing things from others’ points of view is crucial. Ignorance and unwillingness to understand different perspectives further alienate people, breed mistrust, and create a breeding ground for disagreement and conflict. No individual or group is inherently evil. At our core, humans share commonalities despite differences in background and experience. Cultivating a culture of listening, self-examination, and questioning one’s firmly held views can foster understanding.

The world is not black and white, nor are people absolutely good or evil. The truth often lies in the grey areas, where compromise, understanding, and consensus can be found. Demonising those who disagree with us leads to stagnation and obstructs progress. Unfortunately, many in society take rigid stances on politics, belief systems, and other issues, leaving little room for compromise. This inflexibility is exacerbated by online opinion leaders and the overwhelming amount of information available, which people often use to justify their views. Social media algorithms on platforms like Facebook and YouTube reinforce this, feeding users more of what aligns with their existing beliefs. What was intended to enhance user experience instead confines people to echo chambers, depriving them of alternative perspectives.

In today’s world, we need to embody the qualities of Oleksandr Usyk. Despite coming from war-torn Ukraine, Usyk remains humble, grounded, and objective about his prospects. His greatest strength is his ability to not take things personally, holding no grudges against opponents outside the ring. Even when faced with insults and threats, he playfully brushes them off, smiling and joking in his broken English or through a translator. His maturity and empathy are qualities desperately needed in the world, especially in Ethiopia.

Denial of facts is no more useful than Tyson Fury’s refusal to accept a decision made by a panel of independent experts. Ultimately, the sporting world is now evaluating not just the boxing skills of the two fighters but also their psychological makeup and worldviews. Usyk is gaining more respect for his character, even beyond his championship title. In contrast, Fury’s repeated refusal to accept defeat and his tendency to externalise blame is drawing scrutiny to his character.

People are often inclined to view the world solely from their preferred vantage points. However, building a better society requires a shift in approach, one rooted in engagement, trust, understanding, and mutual respect. As Mahatma Gandhi famously said, we must “be the change that we wish to see in the world.”

 

Ethiopia Bets Big on Floated Currency as Kenya Masters the Art of Stability

Posted on by Digital Editor

At the close of 2024, two East African neighbours offer an intriguing lesson in contrasting foreign exchange policies.

After years under a managed floating system, Ethiopia shifted to a market-determined regime in July, hoping to close the persistent gap between official and black-market rates. Kenya, by contrast, has long operated a floating exchange rate, granting its currency, Shilling, the flexibility to move with market forces and relying on regulatory interventions to cushion shocks.

Ethiopia’s forex regime reforms were as dramatic as they were ambitious. Policymakers scrapped the managed floating rate and let the Birr (the Brewed Buck) seek its level based on supply and demand. Within weeks, the Birr lost over 103pc of its official value. By mid-December, it was traded at 125.41 Br against the U.S. Dollar (the Green Buck), much closer to the rate quoted in informal markets.

On paper, the policy shift had the precise objectives of bridging the gap between the official rate and the parallel market, attracting more remittances, and encouraging a more transparent foreign exchange environment. Its authors have also aspired to attract foreign investment, a critical component of the home-grown economic reform agenda.

While officials defended the move as essential to resolving deep structural imbalances, there is little doubt that higher consumer prices are testing households and small businesses in a country that has endured other disruptions, including conflicts and the ongoing fallout from the Russia-Ukraine war. Liberalising a currency in an economy heavily relying on imported goods invites serious inflationary risks. Ethiopia depends on external inputs ranging from fuel to machinery; devaluation quickly drives up prices for local consumers.

For many, the cost of everyday staples has jumped, echoing the government’s admission that inflationary pressures were an inevitable short-term consequence of the policy shift. By November, annual inflation reached 16.9pc, a noticeable climb from 16.1pc the previous month.

Limited export diversification compounds the challenge. Africa’s second-most populous country export basket is dominated by coffee, oil seeds, and cut flowers, which jointly account for a substantial share of foreign exchange earnings. Theoretically, a weaker Birr should encourage export growth by making goods cheaper abroad. However, with such a narrow range of export products, exporters struggle to take full advantage of the depreciated Birr.

For coffee farmers, depreciation can mean higher local returns once foreign exchange is converted, but the broader economy remains vulnerable to fluctuations in global commodity prices and competition from other emerging markets. Policymakers bet on remittance inflows, reporting that it improved as Ethiopians working overseas took advantage of more favourable exchange rates. They feel accomplished seeing the gap between official and parallel market rates narrowed, weakening the incentives to trade on the unofficial market. They hope that, over time, enhanced transparency will facilitate more stable capital inflows.

Nonetheless, they also conceded that keeping inflation at bay would require carefully calibrated measures, possibly including further monetary tightening and a renewed focus on industrialising beyond traditional commodity exports.

Across the border to the south, the Kenyan Shilling trades under a floating regime that has long been praised for granting the market a decisive voice in setting prices. The Shilling has depreciated steadily over the past two years, by 22pc against the Dollar beginning in March 2022. Yet, the movement has been relatively orderly. As of December 20, 2024, the exchange rate was 129.29 Shillings for a dollar.

Kenya’s Central Bank has often signalled that while the currency is free-floating, it does not relinquish intervention when volatility occurs. Indeed, the monetary authority’s benchmark interest rate has seen multiple adjustments this year before settling at 11.25pc in December, a level intended to maintain price stability while avoiding a sharp brake on growth.

Despite currency swings, Kenya’s inflation rate has remained low by regional standards. A slight uptick to 2.8pc in November kept it comfortably below its neighbour’s. Kenyan officials attribute this stability to favourable food harvests, stable fuel costs, and disciplined monetary policy.

A robust pipeline of official reserves also helped. In July 2024, Kenya’s forex reserve was reported to be 7.4 billion dollars, enough to cover roughly four months of the country’s imports. Several factors bolstered these reserves, including deferred payment arrangements for oil imports that spread the foreign exchange burden over a longer horizon. The government’s decisions have also benefited from support programs by the International Monetary Fund (IMF), helping Kenya remain resilient despite a global backdrop of tighter financial conditions.

The Central Bank’s balancing act is evident. Maintaining foreign exchange reserves is essential for dampening shocks, but it can become costly if reserves slip below the recommended threshold. Officials are keenly aware that while the Shilling has proved resilient, global disruptions, such as conflicts in Europe, trade disputes, and tighter monetary policies in developed markets, could all take a toll.

Kenya’s approach has yielded other dividends.

High yields on local currency bonds have piqued the interest of investors seeking a blend of yield and relative stability. Fiscal authorities have managed the delicate balance of public debt and made steady progress in keeping the Shilling stable enough to attract foreign participation. However, persistent concerns remain over whether Kenya can maintain these policies despite periodic external shocks. Droughts, floods, and occasional political unrest pose risks to agricultural production, a mainstay of the economy.

Though the World Bank cut growth forecast for Kenya to 4.7pc for 2024, officials in Nairobi say the medium-term outlook remains encouraging if infrastructure improvements and regulatory reforms stay on track.

The free movement of the Shilling has become a hallmark of the country’s open business climate. Foreign firms find it relatively straightforward to convert earnings and repatriate profits. Exporters benefit from the stability that allows them to plan for production and shipping costs with little fear that a sudden currency intervention would erode profit margins. Kenya’s diversified export base, which includes tea, horticulture, apparel, and services, has helped the economy maintain a steady flow of foreign exchange, though it is not entirely insulated from external turbulence.

For Ethiopia, currency liberalisation signalled an official effort to correct systemic distortions. The official exchange rate had been pegged too far from market realities, creating a breeding ground for speculative arbitrage and scarce inflows. Bringing the Brewed Buck’s official value in line with street prices not only removed a disincentive for foreign investors but also made monetary policymaking more transparent.

Nonetheless, the struggles with a lack of foreign reserves have not vanished overnight. The federal government still relies heavily on remittances to meet short-term forex needs, and the ongoing war between Russia and Ukraine has pushed energy and grain prices higher, placing additional strain on households. Officials stress that external debt management should go hand in hand with currency reform, backed by IMF programs providing technical support and financial buffers.

Ordinary Ethiopians, meanwhile, face the immediate consequences of a sharply weaker currency. Importers who bring in everything from electronics to medications complain that costs are skyrocketing. Small businesses contend with more expensive raw materials, leaving them little choice but to pass on at least some of the higher costs to consumers. Social safety nets remain spotty, although the government has pledged targeted assistance for the most vulnerable populations, including subsidies on certain essential goods.

Unless they broaden the manufacturing base and strengthen the domestic value chains, currency liberalisation will have limited benefits for average citizens. Efforts to develop agro-processing and light manufacturing are ongoing. It may take time before they yield enough foreign exchange revenues to cushion the economy from global price shifts.

While the interplay between exchange rate policy and inflation is often abstract, it has a tangible effect on families. In Ethiopia, the pinch of higher import costs is felt most acutely by those in urban areas, who rely on foreign goods or subsidised commodities. Coffee growers in the rural highlands may see some benefit from favourable export prices, but the rising cost of fuel and inputs for processing and transport can offset those gains.

For Kenya, stable inflation translates into less volatility in household budgets. Even small shifts in fuel or food costs can ripple through the consumer price index, yet the country’s broad supply chain and foreign partnerships help mitigate those shocks. Government officials argue that strategic deals with Gulf oil suppliers, which reduce near-term dollar outflows, will continue to stabilise the market in the months ahead.

On the geopolitical front, these countries wrestle with external uncertainties that can ripple through currency markets. Ethiopia’s predicament is magnified by domestic political and security unrest, as well as global energy and commodity price swings. The war in Ukraine, for instance, has pressured supply chains for wheat, metals, and fuel. Higher import bills for these goods exacerbate Ethiopia’s forex shortfalls, undercutting export gains from the weaker Brewed Buck.

Kenya, though better positioned, also faces rising costs for energy products, even if global oil prices remain below their midyear peaks. Kenyan officials try to offset these pressures with timely interventions in the foreign exchange and treasury markets. Yet, they cannot eliminate the possibility that persistent global shocks could push inflation higher and slow growth.

The most apparent lesson from the divergent paths of these neighbouring countries is that exchange rate regimes on their own cannot fully determine economic outcomes. Ethiopia has leapt toward a market-determined exchange rate to correct chronic distortions, yet success depends on broader policy measures. Advancing industrial projects, diversifying exports, and resolving political tensions will be critical if Ethiopians are to reap any lasting benefits from a more transparent currency mechanism.

Kenya’s floating regime, while generally lauded, has limitations. The Shilling is susceptible to fluctuations in international markets, though the Central Bank’s careful management and comfortable reserve position have prevented excessive volatility.

Investor sentiment appears cautiously optimistic about both countries, although the reasons differ. In Ethiopia, the big draw is the prospect of a sizeable domestic market coupled with new clarity in the foreign exchange system. Multinationals and private equity firms may see an opportunity for high returns if they can overcome the regulatory burden and uncertain political terrain. In Kenya, confidence is rooted in the proven track record of a government that balances a floating currency with interventions, ensuring a measure of predictability. While the World Bank’s revision of Kenya’s GDP forecast dropped it to 4.7pc, urging caution, major players in agriculture and infrastructure say the country’s fundamentals remain strong.

Officials in both countries emphasise that foreign exchange policies do not operate in a vacuum. They tie into everything from social welfare to national security. Policymakers in Addis Abeba argue that their decision to free the Birr aligns Ethiopia with global financial norms. In time, they hope this could attract diversified investment into the manufacturing sector, renewable energy, and services. Kenyan authorities, mindful that no currency regime is foolproof, insist their flexible approach will keep the country well-positioned to respond to unexpected shocks. They point to initiatives such as the deferred oil payment plan and robust deals with multilateral lenders as evidence that prudent foresight can stabilise the Shilling.

Though each country’s next phase is uncertain, exchange rate policy is an indispensable but incomplete tool for achieving long-term development and financial stability. Ethiopia can claim the short-term victory of narrowing official and black-market rates, though it faces an uphill battle to expand its economic base. Kenya can point to its capacity for weathering global storms, but it, too, confronts ongoing fiscal pressures and the ever-present risk of external shocks.

As both countries demonstrate, a currency’s path is less about whether it floats or is guided by the state. It is more about how effectively policymakers leverage broader strategies to spur economic growth, keep inflation in check, and protect the most vulnerable citizens from the brunt of market turbulence.

QUEUE DYNAMICS

Posted on by Web Master

A long line of people standing in an orderly queue extends in a Qera taxi terminal that serves locations including Stadium, Qality, Wello Sefer, and Jemo. The lines are primarily for privately-owned minibuses that ply various routes across the city. The taxi terminal was recently built on the premise of the corridor development initiative, bringing together disjointed terminals around the area to a central location. Though transit facilities have greatly improved, the same cannot be said for long wait lines that continue to linger.

Services, the New Road to Development

Posted on by Digital Editor

The economic terrain has seldom been so slippery for developing countries around the world, especially the poorest. Low-income countries have already suffered a lost decade, with virtually zero per capita income growth since 2010. Many middle-income countries are coming to terms with a demographic shift that puts them at risk of growing old before they grow rich. Many high-income countries risk stagnation because of sky-high debt and anaemic productivity growth.

Such conditions are not conducive to international comity, at least not of the kind that fueled so much progress after the fall of the Berlin Wall in 1989. Developing economies will need to get better at fending for themselves, and while some are already preparing to do so, they are operating with an antiquated policy framework.

In the third decade of the 21st Century, does it really make sense for developing countries to place an all-or-nothing bet on manufacturing?

New research from the World Bank shows clearly that it does not. Developing countries would do far better to put services in the lead role, with manufacturing and agriculture serving as the supporting cast.

Services include a wide range of activities—finance, health, tourism, logistics—and the benefits they generate spill over to other sectors. Yet, relative to manufacturing, they continue to get a bad rap. They are notoriously slow to innovate, hard to trade, and difficult to free from regulatory restrictions. Yet services now account for more than two-thirds of global GDP and half of global trade (once we factor in services used in manufacturing and agriculture).

Among those seizing the opportunities offered by trade in services, the most striking examples come from the home of the “Asian miracle.” While the textbook manufacturing-led model of economic growth once worked wonders in East Asia, these countries’ circumstances and needs have changed. Their populations are ageing quickly, the global economy is becoming more fragmented, and they are adapting. Over the past decade, our research shows that the share of services grew from 44pc of economic activity in China to 53pc, and from 44pc to 48pc in other economies across East Asia. These sectors now account for nearly 50pc of employment in the region, up from 42pc a decade ago.

This shift reflects the rapid rise of digital technologies – nearly three-quarters of people in East Asia and the Pacific now have access to the internet, a sevenfold increase from 2000 – as well as modest trade liberalisation for services. The result is an Asian economic renaissance. Opening services to competition has fueled higher labour productivity even in manufacturing and agriculture, where firms can check prices, deliver goods, and receive payments much more efficiently.

Across all major economies in East Asia and the Pacific, services now contribute more than manufacturing to overall labour-productivity growth, an essential condition for higher wages. In Vietnam, for example, labour productivity climbed by 2.9pc after the government eased restrictions on foreign entry and ownership in several services sectors between 2008 and 2016, reform commitments that were part of Vietnam’s accession to the World Trade Organisation (WTO). Manufacturing firms that use these liberalised services registered a 3.1pc annual increase in labour productivity, and the biggest beneficiaries were small and medium-sized private enterprises.

The rise of services in East Asia has yielded other important benefits. It is powering foreign direct investment (FDI), with the growth rate in services exceeding that of manufacturing by a factor of five. It is also driving demand for higher-skilled workers. Nearly 40pc of formal workers in digital services in East Asia today have a university degree or higher, double the rate for workers in other sectors. And the same trend is unlocking greater economic opportunities for women, because the ratio of female to male workers tends to be higher in the services sector than in manufacturing, and the proportion of women in the workforce grows as the level of economic development increases.

These are all essential ingredients for long-term growth. But, because the trajectory of services is so closely tied to the spread of digital technologies, developing economies have not benefited equally. The countries with the fastest growth in services tend to be upper-middle-income economies, especially in East Asia. In such economies, services have gone from a 40pc share of GDP in 1970 to about 50pc today. In low-income countries, however, services as a share of GDP are still about 40pc, pretty much the same as in 1970.

Yet even in the poorest countries, services represent a promising path to future prosperity. They can help all countries move from low- to middle- to high-income status. But first, we should reject the false choice between supporting services and supporting manufacturing. Policymakers should do both, while maximising the potential of the services sector to deliver growth and jobs.

WALKING TRADITION

Posted on by Web Master

Two men walk alongside Niger St carrying traditional items. While one is grasping a large clay jug balanced on his head, another is holding a traditional stone grinder. Some believe that storing water in clay pots can improve its mineral content and taste. Traditional stone grinders, on the other hand, are believed to enhance the flavor of spices and grains.

What Trump’s Return Means for Africa

Posted on by Digital Editor

President Joe Biden’s recent trip to Angola was only his second to Africa, following his appearance at the 2022 United Nations Climate Change Conference in Sharm El-Sheikh. Coming near the end of his presidency, the visit perfectly captured America’s disregard for the continent. To the United States (US), Africa is an inconvenient theatre of strategic rivalry, demanding attention only for its valuable minerals and raw materials.

Under Presidents George W. Bush and Barack Obama, the US established a military presence in more than a dozen African countries as part of a largely ineffectual counter-terrorist strategy against al-Qaeda and Islamic State (IS) affiliates. And during Donald Trump’s first presidency, the US paid hardly any attention to the continent.

Although Biden hosted a US-Africa Leaders Summit in Washington in 2022, his administration did not seek African input when shaping the event’s agenda or drafting a strategy for sub-Saharan Africa. The latter focused largely on containing China’s presence on the continent while paying lip service to Africa’s development and security needs. The US State Department’s Bureau of African Affairs has remained massively under-resourced.

Although China is America’s third-largest trade partner and second-largest creditor, the US frequently warns Africans that it is a “malign” influence advancing “its own narrow commercial and geopolitical interests” on the continent. True, China sometimes pursues one-sided deals – as it did in the Democratic Republic of the Congo (DRC) – and has a military base in Djibouti. But this hardly compares to America’s overwhelming military presence in the region.

America accounted for 16pc of arms sales in Africa between 2019 and 2023, compared to China’s 13pc.

China’s focus has been more on development, with its Belt & Road Initiative (BRI) funding the construction of roads, bridges, and railways across Africa. China remains Africa’s largest bilateral trade partner, with turnover reaching 282 billion dollars in 2023, four times more than Africa-US trade. In addition to lending African governments 160 billion dollars over the last two decades, Chinese-backed projects now account for 20pc of Africa’s industrial output and nearly one-third of new infrastructure projects worth more than 50 million dollars.

The overwhelming majority of African debt is owed to Western creditors. Only seven of 22 debt-distressed African countries owe China more than one-quarter of their public debt.

Unlike China, the US views Africa primarily through the lens of its multinational corporations. US funding mechanisms are maddeningly bureaucratic and slow compared to China’s flexible and fast approach. The US-led G7 Partnership for Global Infrastructure & Investment has produced mostly talk and little action.

Biden’s visit to Angola was supposed to showcase the Lobito Corridor, a project (backed by 803 million dollars in US loans) to renovate the 1,700Km railway linking Angola to land-locked cobalt and copper mines in the DRC and Zambia. But if the US was sincere about promoting Africa’s development, it would work with China, which is renovating the Tanzania-Zambia railway it built in 1975. Ironically, exporters of cobalt to China could end up benefiting the most from America’s Lobito Corridor project.

On the matter of global governance, the US has pushed for two African permanent seats on the UN Security Council; but these, notably, would not come with the veto power enjoyed by other permanent members (the US, China, Russia, France, and the United Kingdom). More positively, sub-Saharan Africa was awarded a 25th seat on the International Monetary Fund’s (IMF) Executive Board in July (though Mexico still received more in IMF loans last year than all 55 African countries combined). But, US-dominated institutions like the World Bank and the World Trade Organisation (WTO) remain hostile to debt suspension and trade preferences that would benefit African countries.

Similarly, the Biden Administration has contributed funding to peacekeeping efforts in Africa, and it backed a UN Security Council resolution last December to use funds from the UN’s regular budget to support African-led operations on “a case-by-case basis.” However, it has balked at using these funds for the African Union (AU) force in Somalia (now in its 17th year), and is instead pushing to fund a mission in Sudan, where there currently is no peace to keep or any realistic prospect of such a force being deployed.

Worse, the US has turned a blind eye to reported arms sales to Sudan’s genocidal Rapid Support Forces (RSF) by its ally, the United Arab Emirates (UAE).

During Trump’s first term, he famously referred to African countries as “shitholes” and never set foot on the continent or held a summit with African leaders. In contravention of a UN plan to organise a referendum on self-determination in Western Sahara, his administration recognised Morocco’s 1975 annexation of the phosphate-rich territory. Several of his advisers are reportedly keen on recognising Somaliland (a self-governing part of conflict-wracked Somalia), which could further destabilise the Horn of Africa.

More positively, the first Trump Administration sought to mediate a dispute between Egypt and Ethiopia over the Grand Ethiopian Renaissance Dam (GERD). And, Trump withdrew America’s 700 soldiers from Somalia on the eve of his departure, though the Biden Administration reversed that decision.

But the writing is on the wall. Recognising that the US Africa Command is not prepared to risk the lives of American soldiers in dangerous counterterrorism operations (it prefers to use African troops as cannon fodder), Niger’s military junta recently ordered the closure of America’s 100 million dollars air and drone base. Likewise, France’s decade-long counterinsurgency force in the Sahel has collapsed. The US would be unwise to try to throw a lifeline to the French, lest it be tarred with the same neo-colonialist brush.

Perhaps the best that Africa can hope for from an isolationist Trump Administration is a further withdrawal of US troops from Africa. Greater US cooperation with China would benefit everyone, but that seems unlikely.

SINO SANDWICH

Posted on by Web Master

 

A multiple-vehicle traffic accident around “Temenja Yazh,” on A1 St, formerly Debre Zeit St, damages railway infrastructure alongside two cars and two dump trucks. Officially named the China National Heavy Duty Truck Group Co., Ltd. (CNHTC), the ubiquitous red trucks are commonly known as Sinotruk. Headquartered in Shandong province, the major Chinese state-owned truck manufacturer produced its first heavy-duty truck in 1960. While Sinotruk trucks are widely used in Ethiopia and generally considered reliable, there have been concerns raised about their safety record, particularly regarding brake systems with some studies suggesting that brake failures have contributed to accidents involving Sinotruk trucks, though driver behavior and road conditions also contribute.

A Journey Through Nature, Culture, History

Posted on by Digital Editor

Two weeks ago, my family, toddler, and I flew to Arba Minch for a few days. Nestled in the lush landscapes of southern Ethiopia, our vacation was a serene retreat from the hustle and bustle of daily life.

The trip was a unique experience for all of us. It was a blend of natural beauty, rich history, and vibrant cultural traditions. Upon arrival at Nech Sar National Park, the first thing that struck us was the fresh breeze. The park is home to wild animals like Grant’s gazelle, dik-dik, hippopotamus, hyenas, zebras, African leopards, lions, cheetahs, baboons, vervet monkeys, and jackals. We were lucky to spot some of them.

The park also hosts various bird species, including pelicans, kingfishers, flamingos, and eagles. After walking a few minutes into the dense forest, we were greeted by the incredible sight of fish dancing in one of the springs. It was fascinating to watch them eagerly nibble on injera we tossed towards them.

One of the most memorable spots was the waterfall, a natural feature once restricted for safety reasons. Now open to visitors, the area offers a charming tradition, drinking water from the falls, served in a local leaf cup, a custom that has endured through the years.

The ancient forests surrounding the park are a marvel in their own right. Some trees are hundreds of years old, with dense canopies that shield visitors not only from the sun but also from the noise of modern life. Walking through these woods feels like stepping into a sanctuary.

A trip to Arba Minch would be incomplete without visiting the famous twin lakes, Abaya and Chamo. Separated by an island known as God’s Bridge, or “Tossa Usacha” in the local language, the lakes are teeming with wildlife. Our guide shared the island’s history, revealing that it was once home to a particular tribe over 500 years ago. Visitors can still catch sight of the ancient terraced farming systems from afar.

Gigantic crocodiles and hippos dominate the waters, while monkeys and other animals roam the surrounding landscapes. A boat ride to the northwest shore of Lake Chamo leads to the Crocodile Market, where enormous wild crocodiles, estimated to weigh up to 700 kilograms, gather to bask in the sun. Observing these giants up close, both at the crocodile ranch and along Lake Chamo, is chilling.

The lakes also bear visible scars of natural disasters. Heavy flooding four years ago submerged several houses in the area, and the roofs of these homes can still be seen peeking above the water today.

Our journey continued to Doreze village, perched on a hill and offering a glimpse into a lifestyle far removed from modern life.

We were greeted warmly with singing and dancing, a tradition designed to make visitors feel like royalty. The villagers dressed us in traditional attire, symbolizing kings and queens, before inviting us to explore their culture and way of life.

A central part of Doreze culture is the false banana plant (enset), their primary source of food. This versatile crop is buried for three months to ferment before being transformed into kocho, a staple bread-like food.

Meal portions in Doreze are small until the farming season begins. Meat and injera, a traditional flatbread, are reserved for special occasions, such as the annual Meskel holiday.

Visitors are welcome to try their hand at traditional knitting, cooking, and even making flour from the false banana plant.

Living at elevations of 2,500 meters above sea level, the villagers construct bamboo houses shaped like elephants to symbolise strength, a tradition dating back to the 16th century. These homes, which can last up to 150 years, are movable. When termites become unbearable, the villagers relocate, carrying their houses with them. Initially built at 12 meters high, the houses gradually shrink over time as termites eat away at the foundation.

The villagers hold deep reverence for their cattle, treating them with the utmost respect. They share living spaces with the animals, valuing them not only for companionship but also as a source of warmth.

One surprising custom is that husbands are entitled to hit their wives and children. However, if family members sit next to the cattle, the husband refrains from doing so, respecting the livestock’s presence.

Their homes remain pitch dark even during the day, requiring firewood for light. They light fires in the middle of the small rooms to prepare tea and coffee, a daily ritual. There is no ventilation and the carbon monoxide poisoning was difficult to bear. The villagers seem to endure it. For us, however, the smoke was overwhelming, making it difficult to breathe.

As we packed our bags and bid farewell to this enchanting town, I felt a deep sense of gratitude for the vibrant place and the people who took exceptional care of us.

When Appearance Dictates Respect, Attention

Posted on by Digital Editor

A casual Friday conversation with my friend revealed a disheartening truth about workplace dynamics and societal expectations surrounding clothing. She recounted how her colleagues’ behavior shifted dramatically depending on her attire. Colleagues who regularly greeted her would completely ignore her if she wore comfortable clothes, a simple shirt and pants, or a hoodie and sneakers. The same individuals, upon seeing her in a dress with subtle makeup and heels, would suddenly become overly friendly, showering her with attention and fawning over her. This was not a one-time occurrence. She had experienced this inconsistent treatment for years, each instance leaving her surprised and, frankly, insulted. One colleague, who had not spoken to her in over a year, approached her the moment she dressed up. Her choice to ignore him was entirely justified, a response to the superficiality of their interactions.

This inconsistency in treatment is deeply troubling. While first impressions matter, and we all judge people to some extent based on appearance, a reality tied to our visual nature and attraction to beauty. This should not dictate relationships with colleagues, friends, or family. These are people who know the individual beyond their clothing and should value the person, not the presentation. The fact that her colleagues’ behavior was so overtly influenced by her clothing shows a disturbing shallowness. It is not just about professional courtesy. It is about basic human respect.

My friend’s experience was not confined to the workplace. She told similar instances outside of work, reflecting a broader cultural issue. This resonated with the familiar Ethiopian folktale of Ababa Gebrehana, which illustrates how even a respected figure’s reception could be determined by his attire. In the tale, he was initially denied entry to a wedding due to his clothing but later gained access after changing. Upon entry, he smeared food on his clothes, indicating the role they played in his acceptance. The story underscores the cultural weight placed on clothing in Ethiopian society. While certain occasions call for specific dress codes, people often prioritise appearance, even when financial resources are limited. People sacrifice to appear prosperous, reflecting the societal pressure to project a certain image through clothing.

My curiosity about the strong emphasis on clothing led me to question whether this was a uniquely Ethiopian phenomenon. I asked several friends from diverse international backgrounds about the societal significance of attire in their home countries. One friend from America shared a different experience. They described a culture where personal attire held minimal social weight. Individuals could comfortably go about daily life in clothing that might be considered unconventional. Wearing something as simple as a potato sack, they explained, would provoke little to no reaction. This casual disregard for clothing choices was widespread and deeply ingrained in their society.

Another friend from Denmark corroborated this observation. Their approach to clothing reflected the same cultural norm; they exhibited nonchalance toward their appearance, often wearing flip-flops and shirts with visible holes. When the imperfections in their clothing were pointed out, their response was simple and unbothered: “It is my favorite shirt.” They explained that this attitude was not a reflection of carelessness but a prioritisation of comfort and personal preference over societal expectations. While they would dress up for formal occasions, their daily attire was practical and comfortable, consisting of shirts, shorts, and sandals.

This contrast to my own experiences was striking. I recalled times when I dressed up even for the simplest errands, like visiting the small shop downstairs in my building. The effort of selecting the right outfit, ensuring it was clean and presentable, and coordinating accessories often felt mentally exhausting. Hearing my friends’ perspectives was liberating. It revealed the possibility of releasing the pressure to always maintain a polished appearance, especially when unnecessary. Their experiences show the mental and emotional burden tied to societal expectations around clothing.

Their freedom from these constraints offered a valuable lesson: to prioritise personal comfort and well-being over the often-superficial demands of societal norms. It underscored the importance of balancing self-expression with the need to step away from external pressures to conform.

The superficiality of judging individuals solely based on their clothing is undeniable; it is no different from judging a book by its cover, a practice we often criticise. Yet, the reality remains that we are visual creatures, naturally drawn to aesthetics. This, however, does not excuse the inconsistent and often disrespectful treatment my friend experienced. The audacity of some colleagues to dictate her attire, as if her existence hinged on pleasing them, is particularly troubling. Her choice of clothing reflects her mood and personal preferences and should be respected as such.

The contrasting behavior she faced highlights a deeper societal issue; the prioritisation of outward appearance over authentic human connection. This mindset needs to shift. We must strive to value people for who they are, not for what they wear.

Digital Heights for Coop Bank, Profits Dip

Posted on by Web Master

 

The Cooperative Bank of Oromia (CBO) announced that a total transaction volume of 1.36 trillion Br was made through 489.5 million transactions on its digital platform, Coopay E-Birr. Fuel payment transactions alone reached 1.15 billion Br across 105,500 transactions. The platform added 8,959 agents, 32,840 merchants, and 3.85 million new subscribers in the year.

However, at 2.51 billion Br, the Bank’s gross profit before tax declined by 26pc from last year’s 3.39 billion Br.

Board Chairman Fikru Deksisa (PhD) described the year as a year of innovation, citing the platform’s growth as a high example. The Bank looks to stay in the forefront of digital innovation with the introduction of DX Valley 2.0, an incubation hub focused on nurturing start-ups and developing advanced digital solutions through mentorship, digital infrastructure, and key resources.

In addition to its digital advances, CBO achieved a substantial increase in deposits, rising by 903 million Br to reach 117.15 billion Br. The Bank disbursed 2.3 billion Br in new loans, bringing its total loan portfolio to 99.40 billion Br. Total revenue reached 19.03 billion Br, reflecting a 7.5pc growth from the previous year, while total expenses rose by a moderate 15.35pc to 16.52 billion Br.

Despite industry-wide obstacles in export earnings and limited access to foreign exchange, CBO earned 258.35 million dollars in forex inflows. The Bank’s deposit growth included the addition of 2.21 million new accounts, raising the total to 13.34 million, a notable 19.6pc increase. During the year, CBO opened 20 new branches, increasing its total to 758 branches.

“Ethiopia is dismayed.”

Posted on by Digital Editor

The Ministry of Foreign Affairs has rejected claims by Somalia’s officials that Ethiopian forces were involved in a skirmish in the border town of Doolow on December 22, 2024. In a statement issued last week, the Ministry pinned responsibility for the confrontation on what it described “perennial spoilers of peace,” alleging that these groups had orchestrated the incident to sow discord in the region.

AI-Powered, Sharia-compliant Digital Financing for MSMEs, Consumers Debuts

Posted on by Web Master

ZamZam Bank, in partnership with Kifiya Financial Technology, has launched a Sharia-compliant digital financing service, “Ansar Digital Financing”. The service, which the Bank asserts is Ethiopia’s first, aims to transform access to financial services for micro, small, and medium enterprises (MSMEs), particularly women and informal sector workers. The announcement was made during a formal launch event held at the Haile Grand Hotel last week.

Melika Bedri, president of ZamZam Bank, stated that Ansar represents a milestone towards an inclusive and ethical financial ecosystem while Hayat Abdulmalik, deputy CEO of Kifiya Financial Technologies, added that the service is a paradigm shift as it harnesses AI and alternative data to serve under-served communities.

The service integrates artificial intelligence and alternative data to deliver a fully digital access to Sharia-compliant financing, eliminating collateral requirements and simplifying the application process.

Customers would also be able to access financing and make purchases from their preferred vendors through Halalgebeya, a Sharia-compliant e-commerce service, which is connected to Ansar. The latter will begin with different financing product offerings ranging from 2,000 Br to 100,000 Br and will be available to all account holders.