Earthquake Displaces Thousands, Threatens Kessem Dam

Posted on January 5, 2025January 5, 2025 by Web Master

A series of increasingly powerful earthquakes have struck the Afar, Amhara, and Oromia regions, damaging homes and infrastructure, and forcing authorities to scramble to evacuate residents. The quakes, which have grown in magnitude and frequency, are causing panic and disruption across affected areas.

On Saturday alone, over seven earthquakes were recorded, with magnitudes exceeding 4.4, according to the United States Geological Survey. The strongest, measuring 5.8, hit Fentale and Dulecha woredas of Afar region on Thursday night, while a 5.7 magnitude quake followed on Saturday.

The FDRE Government Communication Service confirmed that the earthquakes have intensified in recent days, prompting efforts to assess damage and mitigate further risks. The Afar regional and federal governments are leading evacuation efforts in Awash Fentale and Dulecha woredas, part of the Gabi Resu zone in Afar.

Authorities are particularly worried about the Kessem Dam on the Kessem River, fearing the tremors could lead to a catastrophic collapse that would endanger tens of thousands of lives and destroy homes and infrastructure.

Residents are already experiencing serious damage. Ali Said, a displaced resident from Segentu kebele in Dulecha, said that 40 houses in his neighborhood have been damaged. Cracks are visible across the ground and structures.

The Kessem Sugar Factory, located in Awash Fentale and Dulecha, suffered damage to workers’ dormitories and facilities. The factory’s general manager, Ali Hussein, said workers have been evacuated to Amibara woreda’s Awash Arba town, about 30 kilometers away. Many are now living in open fields, creating a humanitarian crisis.

Factory operations have ceased, with schools, hospitals, and other institutions in the area shutting down due to ongoing tremors. “The administration, warehouse, and operating stations are completely closed,” Ali stated.

An eruption occurred about a kilometer from the factory last week, releasing hot springs and foul-smelling gas, further unsettling the community.

The situation has worsened since December 18, with over 10 volcanic eruptions recorded around Mount Fentale, according to Abdu Ali, administrator of the Gabi Rasu zone.

The epicenter of the earthquake extends across 12 kebeles, dangerously close to the Kessem Dam, raising fears of a potential collapse that could devastate nearby communities. Many homes in Afar have been damaged, prompting residents to flee on foot and by vehicle.

Mohamed Adem, a regional water and sewage official, deeply worries about the lives at stake if damage happens to the dam. “There are two threats, the earthquake itself and the possibility of the dam breaking. If that happens, only Semera city in the whole Afar region might escape destruction,” Mohamed told Fortune.

The government estimates that 80,000 people live in the earthquake-prone areas. As of last week, 37,000 people were evacuated from four kebeles in Awash Fentale woreda. In Dulecha woreda alone, more than 10,000 people left their homes. The tremors have also affected Amibera, Werab, and Awash woredas.

Kedir Hassen, head of Kebena kebele, Dulecha woreda, is among those displaced and now shelters in Awash Arba. “We’ve lost everything and are struggling to survive. We urgently need help,” he said. The lack of food, water, and shelter is especially severe for the elderly and disabled.

The chaotic displacement has separated families, and many livestock have been lost or scattered. In Melke Sedi town, displaced communities report severe shortages of food and water. “We are drinking from the Awash River, which is unsafe and could lead to health problems,” said Ali, another evacuee.

The crisis has created economic strain. Residents are paying up to 20,000 Br for Isuzu trucks to transport belongings to safer areas like Awash Sebat and Awash Arba. Smaller transport, like bajaj rides, costs between 4,000 Br and 10,000 Br.

Musa Hassen, head of education and disaster prevention at Awash Fentale, told Fortune that the Ethiopian National Defense Forces (ENDF) has been involved in the evacuations. ENDF began moving people by patrol trucks on January 3, continuing the next day from areas such as Kessem, Kebena, and Boleyta. Over 2,000 people have already fled their homes.

Temporary shelters have been set up in Awash Arba town of Amibera woreda, but evacuees say these are insufficient, leaving many families stranded in open fields.

Natnael Agegnehu, head of Geodesy & Geodynamics at the Ethiopian Space Science & Technology Institute (ESSTI), stated there were over 100 earthquakes last week alone. “The closer to the epicenter, the higher the risk,” he said. Natnael says that the government should ensure improved urban planning to mitigate earthquake impacts in the future.

Atalay Ayele (PhD) warned that recent earthquakes have been more intense than usual. “We must not get complacent. Highest magnitudes were recorded this week,” he told Fortune.

Banks Overhaul Governance as Regulators Tighten Controls on Boardroom Power

Posted on January 5, 2025 by Web Master

Spurred by a set of directives the National Bank of Ethiopia (NBE) issued lately, commercial banks have embarked on a quiet overhaul of their governance structures.

Details of how the rules will be enforced continue to emerge. However, central bank officials have issued five directives covering corporate governance and risk management. In addition to guidance on board composition, their regulations compel banks to maintain comprehensive databases of related-party transactions and updated credit profiles. They hope transparency at this granular level will lower systemic risk, a vital consideration for an industry susceptible to connected lending in a rapidly evolving economy.

A regulation requires one-third of banks board of directors to be independent individuals with no direct ownership stakes or day-to-day involvement in the institution’s operations. An existing board nominates these independents and then is elected by shareholders, a measure intended to bring neutrality and more robust oversight to boardroom decisions. Banks whose boards have reached their tenure under prior governance structures are among the first to comply.

Under the revised rules, regulatory authorities also enforce additional constraints on board composition. Another third of directors should be nominated and elected by non-influential shareholders, a category defined by ownership of less than two percent of the subscribed capital. The central bank has also tightened requirements for board members’ competence, mandating that directors have the time, expertise, and independence needed to contribute effectively.

The authorities have also capped the number of concurrent directorships individuals may hold. The new directives also restrict the participation of senior executives on boards, limiting the number of bank employees on a board to two, including the president. Those employee directors are barred from serving as chairpersons.

The NBE now requires at least two female directors on each board to ensure diversity.

According to Frezer Ayalew, the head of NBE’s Supervision, shortcomings in banks’ governance prompted these reforms. Internal assessments and the regulator’s most recent stability report uncovered repeated lapses, including insufficient board objectivity, a dearth of independence, and an undervaluation of credit risk concentration. Frezer attributed poor identification of connected borrowers to stagnant oversight. By forcing banks to include directors from outside their traditional circles, the regulators expect more thorough scrutiny of lending decisions.

“Weaknesses were identified in the existing governance structure,” Frezer told Fortune. “Changes have been crucial to ensure greater safety and soundness.”

Bankers say these changes target the financial sector with international corporate governance practices. Several banks have moved swiftly to meet the new rules by selecting and nominating board members who appear to meet the tightened criteria.

The Cooperative Bank of Oromia (Coop Bank), Global Bank Ethiopia, Hibret, and Bunna banks, and are among those that have taken action following recent general assemblies.

At the Coop Bank, the new board was chosen on December 30, 2024, where Deribe Asfaw, the president, was nominated, alongside other new members such as Abinet Tarekegn, Tigistu Shiferaw, and Fikru Deksisa (PhD). Shareholders also picked from a roster of additional professionals, some with specialised expertise in cybersecurity, investment banking, environmental matters, and mergers and acquisitions. The Bank’s newly nominated board includes four independent directors: Assefa Sumro, Yeshi Jema, Lema Yadecha, and a consultant, Douglas Manshuva. Several directors represent the category of non-influential shareholders, including nominees such as Meseret Assefa and Jemal Kedir.

Coop Bank officials say they devoted close attention to skill sets that might fill knowledge gaps, with the Bank’s executives claiming the directive brought clarity to the areas where the board needed reinforcement. The final group of 32 nominees was presented to shareholders, and the Bank is now preparing to send the 12 nominees to the NBE for approval within the required 20-day window.

Deribe spoke of optimism about the tighter governance rules at the general assembly where these appointments were finalised. Deribe and other bank leaders welcomed the regulations, pointing out the growing complexity of the finance sector and the need for additional oversight. While acknowledging that layered approval processes can slow certain decisions, they maintain that a stronger board structure will bolster the resilience of financial institutions.

Across town, Hibret Bank convened its 27th general assembly, announcing new appointments to its board. Unlike the Coop Bank, however, Hibret did not nominate any staff members to serve on its board. Instead, the Bank selected three external directors, among them Mesfin Tessema, Azalech Yirgu and Worku Lemma, former vice president at the state-owned Commercial Bank of Ethiopia (CBE). With a quarter century of experience in the domestic banking industry, Worku also co-founded Oromia Bank and Global Bank Ethiopia.

According to Tsigereda Tesfaye, Hibret Bank’s acting president, the reorientation to include independent directors, particularly those with institutional knowledge but no direct stake, would help ensure impartial decisions. She believes bringing onboard such outsiders with seasoned industry veterans will sharpen the Bank’s risk management and strategic planning. She also noted the directive’s insistence on female directors, hoping to see a broader shift in the banking culture toward balanced representation.

“It’ll bring big changes to the Bank,” she told Fortune.

Not everyone in the industry is fully convinced.

Teferi Mekonnen, president of Oromia Bank, acknowledged the upsides of adding experts who know the ins and outs of a bank’s daily operations. He argued that executives who serve on boards can streamline decision-making processes, particularly on time-sensitive issues that might otherwise languish, while external board directors educate themselves on a bank’s intricacies. He recalled urgent proposals being bogged down because the board did not fully grasp the implications.

“Executive management members in the board can make positive changes,” Teferi said.

Nonetheless, Teferi is more reluctant to the merit of incorporating independent directors in an environment that is yet to be ready for a structure where outside expertise and impartial eyes can effectively steer bank decisions.

“It is too soon for this,” he told Fortune.

He believes that shareholders who have direct financial stakes in a bank’s performance offer more reliable guidance than external experts who may be unfamiliar with institutional contexts. Convinced that board decisions tend to be better entrusted to individuals with skin in the game, Teferi urged the nomination of independent directors to become optional.

The Ethiopian Bankers Association, the industry’s lobby group, endorsed the NBE’s latest attempts to assert corporate governance reform.

Its Secretary General, Demisew Kassa, shares the regulator’s view that most boards lack the breadth of knowledge to address contemporary challenges fully. He believes an independent perspective can redress the tendency for in-group dynamics where existing shareholders and managers might overlook inherent conflicts.

Financial industry veterans likewise see the necessity of these reforms.

Eshetu Fantaye, who has spent decades in the financial sphere, recalled the mid-2000s, when the NBE allowed bank presidents to serve on boards but then reversed course due to multiple disputes that pitting boards against executives. In one instance, the Central Bank had to remove presidents from boards in 2008 due to disagreements that threatened corporate stability. According to Eshetu, personal interests among certain board members have sometimes led to executive team micromanagement, damaging institutions and creating tension that shook depositor confidence.

For Eshetu, returning executive board membership is a calculated move. He contended that if it is carefully supervised, it could enhance swift decision-making and strengthen corporate accountability. But he, too, sees risk in boards that exert too much influence over daily operations. Such interference can delay strategic development or lead to ill-fated directives when oversight responsibilities and executive powers blur.

“Regulators should have been more vigilant,” Eshetu said, urging regulators to stand ready to intervene if a bank’s governance veers off course.

Those who support the reforms argue that the presence of outside directors, alongside clearly defined roles for executives and robust documentation of related-party transactions, can preempt many of the risks Eshetu raised. The NBE’s latest stability report stated the seriousness of credit risk concentration, where borrowers with insider connections allegedly accumulated large loans under lax scrutiny. The new directive targeted this, seeking to ensure that independent directors, free of shareholding entanglements, can cast a critical eye on approvals and challenge majority shareholders when necessary.

Thorough compliance requires boards to maintain databases that track lending to connected borrowers, shining a light on the once-opaque corners of credit decision-making.

The regulator’s timeline for these changes is already in motion. Banks that have not yet reshuffled their boards, particularly those approaching scheduled general assemblies, are expected to do so shortly. As banks deal with these adjustments, industry leaders say the transition will likely involve trial and error. One bank may focus on technology experts to guide decisions on cybersecurity investments, while another might prioritise specialists in environmental and social governance.

Depressed Buyers, Burdened Vendors as Stagflation Dulls Christmas Holiday

Posted on January 5, 2025January 5, 2025 by Web Master

The blistering sun barely bothered 60-year-old Alemneh Eshetu as he strolls from one vendor to another looking to buy an affordable chicken. With his red coat and hat to cover the inferno, he paces around with 1,000 Br in his pocket, expecting to secure a small-sized chicken and some butter to cook it with.

His limitations made him haggle with every vendor. He came out unsuccessful. The smallest chickens were selling for 1,000 Br. “It’s an unbearable price,” he said, feeling like his wallet had shrunk.

He settled down to leaving the market with just a kilogram of butter (lega qibe) for 800 Br and throwing his other plans out the window. Alemneh lives off a 3,000 Br pension and some support from his children. It is all insufficient, especially where his severely eroded purchasing power makes it nearly impossible for him to sustain a living.

“I am unable to afford anything anymore,” he said.

Shola Gebeya around the Megenagna is unmistakable for its pungent odour and the cackling of chickens bundled in baskets, only to be pulled out and marketed at every would-be buyer. Shoppers size up the chickens, only to swiftly leave when hearing the price.

Discouraged salesmen like Shiferaw Tesfa, who brought 250 chickens primarily from Wolaita, West Shoa Zone, and Hareri Regional State, was only able to sell 20 chickens in a week. “Most buyers hear the price and shy away,” he said.

In this Christmas holiday market, the price of chicken hovers from 1,000 Br to 1,500 Br, showing a slight surge from the previous major holiday—the new year holiday in September—where prices ranged from 800 Br to 1,400 Br. Vendors blame inflated feed prices and transportation costs.

Eggs from local breeds fetch 16 Br in the market, leaving many to resort to the less flavourful foreign type sold at 12 Br in bid to save. A kilogram of butter (lega qibe) shot up by 100 Br in just the past two weeks, fetching 850 Br for varieties brought over from Wellega and Gojam zones.

On the other side of Addis Abeba, Qera has become a transformed market arena after the corridor development project wiped out marketplaces that buyers were accustomed to. Sheep traders have been exiled, making the once active market area feel blazingly quiet. This has cast a sense of dread over the Qera market this Gena holiday season.

The massive development project, which began several months ago, has displaced 18 sheep sellers. Two vendors were forced to relocate their sheep flocks to the corners of the market, facing decreased visibility and potential loss of customers.

Zeid Ahmed, 33, crammed 150 of his sheep into a narrow space. Despite efforts to secure temporary holiday selling grounds, he was unsuccessful, leaving him to settle his flock in an area used for other purposes. “We had to beg property owners just to settle here,” he told Fortune.

“I haven’t been able to sell anything as my sheep are not visible,” Zeid mutters, gesturing to his flock. “We have been left hanging.”

While officials acknowledge the need for a temporary market, they maintain that providing a permanent solution falls outside their jurisdiction. Samuel Yohannes, head of the Nifas Silk Lafto district’s wereda 05 office, explained that his office has actively worked to accommodate vendors during the holiday season, looking to ensure a smooth market experience. He admitted, however, that finding suitable spaces for sheep and goat vendors has proven challenging, as many potential locations have been allocated for development projects.

“We did what we could to provide temporary spaces,” Samuel told Fortune. “The rest is beyond our mandate.” He emphasized that lobbying efforts are the only recourse for securing permanent spaces that can effectively support the needs of the vendors.

With selling spots diminished, the price of sheep has exhibited a moderate increase from September with prices ranging from 7,000 Br to 30,000 Br, up from 5,000 Br to 20,000 Br from the last holiday.

In contrast, the bovine market situated a short distance away appeared to be faring better. Its location, further removed from the main road, had shielded it from the disruptive impact of development-related demolitions. Under the scorching midday sun, dozens of bovines leisurely strolled on the muddy ground.

Cattle from Harer, Wellega, Jimma and Bahir Dar were sold at increased prices for higher-end stock, fetching between 45,000 Br and 300,000 Br. The last holiday’s prices were from 55,000 Br to 200,000 Br.

Vendors such as Bekele Eshetu eagerly wait to talk any customer that may glance it his 15 bovines that he attractively lined. Bekele attributes the surge in bovine prices to inflated logistics costs. He pointed out that drivers charge 90,000 per truckload, as they claim to have to pay unofficial fees at various checkpoints, especially on the roads in Amhara Regional State.

“I was forced to halve the number of cattle I brought to the capital’s market,” he said.

At a distance, 33-year-old Abinet Shumete hops from vendor to vendor, haggling for hours for better prices. With a 90,000 Br budget contributed by six people, he struggled to find something suitable as the cattle type he had in mind are quoted at 130,000 Br. “We didn’t agree for this,” he said thinking of where else he could try.

“Things have surely changed in a short time frame” Abinet told Fortune, referring to the continuing growth of prices.

Integral to holiday meals, onions are selling for a staggering 130 Br a kilogram, pressing down on holiday spirits. Red pepper (berbere), the source of flavour for any well-made chicken stew (do’ro wet) is selling for 500 Br a kilo, while black cumin cost around 450 Br, rising from 350 Br in September. A kilo of cardamon is sold at 1,500 Br per kilo, rising by a heavy 400 Br.

The Addis Abeba Trade Bureau conveys optimism that three newly established agricultural market centres in Akaki, Lemi Kura, and Kolfe Qeranio districts will offer more competitive prices compared to traditional markets. Meketa Adafre, head of trade expansion & control at the Bureau, stated that they conduct regular inspections, visiting the centres thrice weekly, to ensure prices remain affordable, reportedly 20pc lower than those found in regular markets.

Meketa emphasized that the primary objective of these centres is to mitigate food inflation by streamlining the supply chain between farmers and consumers. He asserted that a kilogram of onions is currently priced at 90 Br at the centres and Sunday markets, while eggs are available for 11 Br.

“Buyers just need to source produce from these markets,” he said, while still acknowledging difficulties facing certain sellers in the inner city.

“Our goal is to make prices affordable,” Meketa told Fortune.

In the heart of Addis Abeba, on Yohanis St., on the former parking lot of Spa Service Enterprise (Filwuha), a new market place has propped up. Covering a total of 6,000sqm and holding over 80 small and medium enterprises, manufactured products were showcased with blistering music and huge banners on the outside inviting onlookers into the open space. Products from clothing to detergents, and woodworks to food were marketed.

Jorka Events Organizer partnered with the Ethiopian Enterprise Development to organize the holiday bazaar aiming to bring producers and buyers close.

One of the selected vendors, hailing from Tigray, Haleka Zekios Honey & Honey By-products Plc, had four honey types in one- and two-kilogram packaging. Prices vary based on colour and size with white honey commanding the highest price tag at 2,000 Br per kilo, followed by the yellow variant at 1,500 Br, while red honey sells for 1,000 Br.

The general manager, Mulugeta Zekios, states that the business is going well, with most customers opting for the yellow variant.

Based in Adwa, in the heart of Tigray, his company had fallen victim to the two-year war and faced huge damage, losing the majority of its machines to looting. “We are now reviving,” he said as he prepares to enter export markets.

Nearby, another vendor was selling honey sourced from Bonga in Keffa zone of South West Ethiopia Regional State for 800 Br.

Other marketed products at the inaugural bazaar included Cardamom for 160 Br per 50g and white and black cumin, both selling for 120 Br per 50g. Edible oil prices ranged from 200 Br for one litre and 1,380 Br for five litres.

Jorka Events Organiser plans to expand on the bazaar. Its managing director, Aga Abate informed of plans to create a permanent market in the space incorporating large-scale manufacturers which would sell at competitive prices. “We are aiming big for this market place,’ he said. He noted 60 million Br was invested on making the former parking lot suitable for a holiday market space.

Economist Arega Shumete (PhD) argues that the government’s claims of declining inflation contradict the reality of rising food inflation. He believes stagflation has occurred, where a combination of stagnant economic growth and rising inflation is placing a substantial burden on consumers who are facing a broad range of increasing prices.

A recent report by the World Food Program (WFP) and United Nations recalled that Ethiopia is experiencing high food prices—up to 25pc higher than levels seen last year. It also revealed that around 15.8 million people are facing high levels of acute food insecurity and are in need of assistance.

Arega further suggests that the displacement of many buyers from inner cities to the outskirts has created a widening gap between supply and demand, exacerbating economic limitations.

He called for policy interventions to address the main bottlenecks causing inflation and malfunction of domestic food markets. He called for policies that would curb rising food prices by promoting increased yields through research, extension services, and improved trade infrastructure.

He also pointed out that technological innovations which improve productivity need to be widely implemented.

“There needs to be reform in consumer culture,” he added.

Forex Moves Test Market Boundaries While Caution Casts a Long Shadow

Posted on January 5, 2025January 5, 2025 by Web Master

Last week, the foreign exchange market provided a window into the persistent tussle between policy objectives and market forces. An outlier emerged in Tsehay Bank, which decisively pushed past the 125 Br mark in its buying rate, raising eyebrows among industry observers who note the potential for heightened competition to further strain forex availability.

From December 30, 2024, to January 4, 2025, the Brewed Buck’s gradual depreciation against the Green Buck continued unabated, culminating in a consistent upward trend that led some banks to cross symbolic rate thresholds. Though most banks raised their rates, Tsehay Bank’s move stood out for its assertiveness, with a buying rate of 125.96 Br and a selling rate of 128.48 Br on January 3 and 4. By surpassing the 125 Br psychological barrier, its forex managers effectively signalled they were hunting for a larger share of hard currency inflows from remittances and exports, even if they risked fueling further market pressures.

Such divergence brought forth the broader questions shaping the foreign exchange market.

While Tsehay Bank’s aggressive rates showed a willingness to capitalise on Birr’s downward trajectory, several competitors demonstrated wariness in steering market volatility. Banks like ZamZam and Goh Betoch, for instance, kept their buying rates a few cents below the 125 Br mark on January 4, posting 124.99 Br and 124.97 Br, respectively. This marginal gap from the 125 Br line alluded to a preference for caution, likely managing exposure to shifting currency dynamics.

The conservative position could appeal to importers and businesses wary of steep rate fluctuations, even if it reduces these banks’ immediate competitiveness in attracting foreign exchange. It could also indicate an unofficial understanding in the industry that rates need to be checked below the 125 Br mark, exposing the tension between policy roles and profit-driven imperatives.

The state-owned Commercial Bank of Ethiopia (CBE) continued to post the lowest rates in the market. On January 4, its buying rate stood at 124 Br, well below the private banks’ averages, and its selling rate lingered at 126.48 Br. CBE has been viewed as an anchor of stability, ensuring state-directed access to foreign currency for strategic sectors rather than chasing market share. Yet the gap between CBE and its private competitors may raise issues about how sustainable this approach will be as competitive pressures intensify.

While CBE remains a crucial conduit for funnelling hard currency to essential economic activities, it operates as a policy instrument first and a profit-driven enterprise second. Against the backdrop of a steadily depreciating Brewed Buck, that mission is becoming increasingly unattainable.

The Big Four — Awash, Abyssinia, Dashen, and Wegagen — proved the clout that major private banks wield in setting the pace for forex rates. Their positions hovered around 125.70 Br on the buying side, uncovering a balancing act between going too high and risking undue pressure on their reserves, or going too low and ceding market share to leaner but more aggressive players.

Bank of Abyssinia (BoA) on January 4 posted a buying rate of 124.80 Br and a selling rate of 127.30 Br, while Dashen, Wegagen, and Awash hewed close to these rates. The near-uniformity among the top-tier lenders revealed a shared view of near-term depreciation risk and an acknowledgement that none can afford to stray too far from the rest without paying a competitive price. Yet the show of unity also exposed an underlying constraint. These larger institutions may find it difficult to match the pressure coming from smaller banks looking to stand out through higher rates.

Throughout the final days of 2024 and the start of 2025, the Brewed Buck’s losses against the Green Buck exerted pressure across the forex market. The average buying rate climbed to around 124.8 Br, while the selling rate neared 127.2 Br, representing a two percent margin that the industry relies on for profit-taking. By pushing a selling rate of 128.48 Br, however, Tsehay Bank tested the upper limit of this norm, presenting that smaller and mid-sized banks could set more assertive benchmarks going forward.

For market participants, Tsehay Bank’s recent move should raise issues about whether a trend toward higher private bank rates will force established players to follow suit.

Yet caution lingers. The foreign exchange market remains subject to policy interventions by the Central Bank in a still-evolving local economic context. Tsehay Bank’s bold approach may be an early indicator of deeper competitive realignments, particularly if other banks decide that capturing a larger slice of incoming forex is worth the added risk. Banks such as ZamZam and Goh Betoch might continue prioritising rate stability over pushing boundaries, considering their retreat from higher rates posted two weeks ago.

CBE’s posturing only reflects its role as a safety valve, showing how a state-driven agenda can diverge from market imperatives. The coming weeks will likely reveal whether Tsehay’s outlier manoeuvring gains traction or if the Big Four’s alignment and CBE’s stabilising influence lead to a narrower band for exchange rates, preserving a measure of predictability in a market that remains on edge.

SOMICK’S LENS

Posted on January 5, 2025April 22, 2025 by Web Master

Sewmehon Yismaw, known affectionately as “Somick,” is a filmmaker who describes his life as a mystery he would personally direct. He speaks proudly of his childhood, recounting how his gift for storytelling was nurtured by a local figure, Taju, who would tell him stories from television and radio. For him, stories are more than entertainment. They are vessels filled with layers of meaning, as he mixes and reimagines them to captivate his siblings and cousins. Dedicated to authenticity, he draws heavily on personal memories; his unique background and the rich storytelling culture of his birthplace have shaped his creative approach.

His docu-drama, “Ewer Amora Qelabi,” initially inaugurated but never shown in cinemas, stands out in his filmography. Conceived to address the topic of illegal migration and seeking sponsorship, it never secured a theatrical run or the desired funding. Somick and his producers are, however, undeterred. They plan to release the film themselves to ensure its message reaches its intended audience. Driven by an urge to portray stories that resonate with his own experiences, Somick believes that the right movie emerges when there is a personal, emotional connection.

A particular wedding experience he attended as a child remains inspirational. The memory of tents pitched in the morning fog, celebratory gunshots, and dancing under the big sky, later channelled into a music clip for Aschalew’s “Enatewa Gonder,” illustrated how he employed nostalgia to produce meaningful art. His reverence for childhood extends beyond personal memories; the tales of “Bilicho & Mitmitit” and “Lame Bora” are already in his sights as future projects, intended to preserve a legacy and impart lessons in empathy and compassion.

Legends of Ethiopia’s past equally move Somick. He would love to travel back in time, particularly to Emperor Tewodros II’s era, and his respect for Emperor Haileselassie’s “tireless love” for Ethiopia is profound. His patriotism surfaced when quizzed to utter a word in a movie, which would be “Ethiopia.” Cinematic heroes closer to his field include Solomon Bogale, an actor whose subtlety and precision he finds exceptional. He also credits Iranian filmmaker Majid Majidi and Giuseppe Tornatore of “Cinema Paradiso” fame as key inspirations abroad.

He views the film industry’s shift to streaming platforms as an encouraging development. Yet making films in rural areas, while offering a focused working environment, poses its own limitations. The lack of security in certain regions complicates schedules, and different cultural norms can prove startling, especially when firearms or traditional customs collide with outside expectations. Despite these snags, Somick has pressed on with demanding productions like “Sewnetua” and long gruelling nights transferring VHS footage to computers with little sleep.

In an interview with our reporter, BEZAWIT HULUAGER, Somick discusses the underlying theme throughout his career is his tenacious love of storytelling and film. Whether recalling early viewings of “China O’Brien,” his fascination with dogs as subjects brimming with human qualities, or the possibility of having dinner with Haile Gerima (Prof), his passion and reverence for cinema shine through. He remains devoted to uncovering stories he believes in, firmly rooted in the past, but always scanning the horizon for new opportunities and new ways to share his experiences with the world.

Today, he envisions creative projects beyond the screen, drawn to Ethiopia’s vibrant history and larger-than-life figures. In Somick’s mind’s eye, the stories of freedom fighter Abdisa Aga, an Ethiopian patriot who fought the Italian occupation in Ethiopia and in Eastern Europe, unfold as richly layered films.

For more than a decade, Somick enthralled Ethiopian audiences with his striking visuals. His work, from iconic Habesha Beer commercials to music videos for pop artist Teddy Afro, has cemented his reputation as one of the country’s most compelling filmmakers. His flair lies in telling deeply relatable stories, an approach honed by his involvement in the popular TV drama series “Adey.” There, he found the confidence to take his passion for cinematic storytelling to new heights, weaving in moments of everyday life that resonate powerfully with viewers.

If your life were to be a movie, what genre would it be, and who would direct it?

Sewmehon Yismaw (Somick): It would be a mystery, and I would direct it myself.

Why was your film “Ewer Amora Qelabi” not shown in cinemas?

We aimed for sponsorship, particularly from those dealing with illegal migration, but fell through. Now, we are exploring releasing it independently. It is a docu-drama that had a short inauguration screening but never made it to cinemas.

What inspires your choice of stories and movie projects?

I am drawn to stories I connect with in real life.

If you had an unlimited budget, what would your dream movie be?

A film about Abdisa Aga. [An Ethiopian patriot who fought Italian occupation during the Second World War.]

Which childhood story would you like to turn into a film?

I am working on a film based on “Bilicho & Mitmitit,” partly as a memorial for my children. I am also fascinated by “Lame Bora” because it teaches sadness, compassion, and empathy.

How did your childhood influence your love for storytelling and film?

My childhood was filled with vivid experiences. A man named Taju had access to television and radio; he was a great storyteller. I would adapt his tales for my siblings and cousins. Where I grew up, storytelling was a way of life.

Especially a wedding I attended with my mother, have influenced my work, including the video clip for Aschalew’s “Enatewa Gonder.”

We spent 13 days at a hotel, unsure of our direction for the music clip. I then remembered that wedding—the pitched tent, leaves scattered on the ground, celebratory gunshots, the pots and pans, the dancing, and the morning fog. We ended up recreating that childhood wedding, minus the gunshots. My work often draws heavily from my childhood experiences.

What kind of stories did you tell growing up?

I told Taju’s stories, along with Bible stories, hagiographies, and church dramas. A particular drama, “Aba Alem Lemenie,” featuring a woman disguised as a monk, left a deep impression on me, especially the soundtrack.

If you could travel in time, where would you go?

I would happily return to my childhood. Otherwise, I would love to witness the era of Emperor Tewodros II.

What was a memorable moment during your film shoots?

When transferring VHS footage to computers, we sometimes did five or six tapes overnight, leaving me two hours of sleep a day. I once ordered my crew to set up cameras, only to immediately change my mind and scold them. Exhaustion caught up with me, and the producer made me rest.

If you could only use one word in a movie, what would it be?

Ethiopia, because it is so important to me.

If you could cast only one actor/ actress, who would it be?

I admire Solomon Bogale for his controlled, nuanced performances. I believe Ethiopian acting should be redefined.

Text or phone calls?

Text messages are simple and precise.

What are your favourite colours, and how would you explain them to a blind person?

Purple and military green – explaining them in words would be difficult. Red is easier; I would have them touch a hot object to convey its intensity.

What are your favourite films, and the directors you admire?

Internationally, “Life Is Beautiful” and “Cinema Paradiso” — the latter feels close to Ethiopian life. I am impressed by Guiseppe Tornatore and Iranian filmmaker Majid Majidi. Among Ethiopian films, I admire “YeEger Eta, Teza, and Atletu.” From Ethiopian directors, I would like to work with Tatek Tadesse.

What are your thoughts on the current state of the film industry?

It is leaning toward streaming platforms, creating opportunities for more high-quality films as revenues grow.

What obstacles do you encounter when filming outside Addis Abeba?

Lack of security. However, when it is peaceful, having everyone stay at a camp keeps production efficient.

Any unforgettable fan experiences?

My car once held up traffic while I was paying a bill. Instead of getting angry, a man praised my work, brightening my day.

How long have you been married, and how has your family supported you?

I have been married for 10 years. My wife is my biggest supporter and manages everything at home, especially when I am away filming. During “Fiqir Eske Meqabir,” I was gone for four months, and she looked after our six children alone.

Best investment this year?

Buying a house.

What is your biggest fear?

Flying. I have acrophobia.

Which superpower would you choose?

[Laughs] I believe we live through the experiences we have. So, my ideal superpower would be the ability to experience anything without fear. Traveling to Gonder, for instance, I’d always prefer driving. Unfortunately, due to security concerns, air travel is often necessary.

To truly experience the world, I’d love to have Superman’s ability to fly. It would open up incredible opportunities for exploration.

What type of books do you enjoy reading?

Historical works, though I generally prefer watching movies.

What was the first movie that you saw?

China O’Brien, followed by Chain Reaction and Titanic.

If you could make a movie about an animal, what would it be?

A dog, because they exhibit many human traits.

Whose story are you most drawn to and would like to see adapted into a movie?

Temesgen Gebrehiwet’s story, as told in the book “Hiwete.”

Which production was the most difficult to work on?

“Sewnetua” was my toughest. “Adey” also posed big challenges. But that is part of filmmaking.

If you could invite two people from the film industry to dinner, who would they be?

Haile Gerima (Prof) — twice. I missed meeting him in New York for my film’s inauguration because I could not get a visa.

Who would you invite from outside the industry?

I would invite Emperor Haile Selassie because of his love for Ethiopia. I am amazed by the amount of love he had for Ethiopia and he consistently inspires me. His every action, from infrastructure projects to diplomatic endeavours, was driven by a deep affection for his nation. I can’t help but imagine a dinner with the last emperor of Ethiopia.

What cultural shocks have you experienced working in different parts of the country?

Where I grew up, carrying guns is normal, but in southern Ethiopia, seeing people with ‘gejera’ [machete] was shocking, and vice versa for them seeing guns.

The Year That Falls Short in Lofty Ambitions, Brittle Realities

Posted on January 5, 2025January 4, 2025 by Digital Editor

Time seldom passes without prompting reflection, and the dawn of 2025 should nudge Ethiopians into contemplating their trajectory as the first quarter of the 21st Century closes.

This vast country of over 100 million people, endowed with abundant resources yet wracked by recent turmoil, has had successive leaders over the past 25 years scrambling to secure stability, economic opportunity, and security. In the two decades of the century, they managed explosive growth that earned plaudits from the World Bank and the IMF. Real GDP rose nearly 10pc annually between 2004 and 2018, while in 2023/24, the economy clocked in at 6.1pc.

Infrastructure investments reshaped Ethiopia’s economic evolution. Sixty million more people gained access to clean water, electricity coverage doubled, and child vaccination rates rose by 64pc. Poverty dropped from 39pc in 2004 to 24pc by 2016, feeding hopes that Ethiopia might achieve lower-middle-income status by 2025, a goal it has already missed.

The three leaders who have held power since the turn of the century have confronted a country that remains among the poorest in the world, with a meagre per capita gross national income of 1,020 dollars. The past five years have inflicted overlapping disasters that threatened to undo gains from earlier decades.

By the World Bank’s reckoning, 91pc of Ethiopians have been exposed to severe drought, floods, locust invasions, conflict, or all of these combined. A civil war that began in Tigray in 2020 displaced millions of people, leaving vast humanitarian needs estimated at 20 billion dollars. The Financial Times reported the broader economic toll of the war at 28 billion dollars.

These calamities have tested an economy anchored in infrastructure-driven growth, revealing deep structural fissures in policy, regulation, and governance. They have eroded competitiveness, stoked inflation, and heightened debt vulnerabilities. Living standards, which improved steadily for two decades, abruptly deteriorated, with around 15 million Ethiopians forced to rely on food handouts.

Prime Minister Abiy Ahmed (PhD), who assumed office in 2018, has embarked on what officials call a “home-grown economic reform” programme backed by the Bretton Woods institutions. The boldest initiative arrived in July 2024: the liberalisation of foreign-exchange rules, which removed many current-account restrictions. This marked a departure from demand-focused policymaking toward supply-side macroeconomic prescriptions, marking the most consequential economic policy measure in years.

Alongside these reforms stands a 10-year development plan unveiled in 2021, which sets out an ambition to lift annual manufacturing employment from 175,000 in 2019/20 to 850,000 by 2029/30 and an eye-catching five million total new jobs before the decade’s end. Given Ethiopia’s historically sluggish industrialisation, starved of sufficient infrastructure and skilled labour, this appears overly optimistic.

Though policymakers champion industrial parks and herald policy shifts, the country’s record in encouraging private enterprise and building industries remains limited. Lofty pronouncements alone will not satisfy demands for better incomes, more jobs, and improved public services.

Achieving these goals requires further macroeconomic and structural reforms. The state remains overly dominant, global trade integration has lagged, and private firms struggle to absorb the two million new entrants to the labour force each year. The underinvestment in human capital is glaring. According to the UNDP’s Human Capital Index, a child born this year in Ethiopia can realise only 38pc of her potential, while 37pc of children under five are stunted.

Although roads and factories are essential, education and health determine how many people can meaningfully participate in economic life. Ethiopia still trails the sub-Saharan African average on most development indicators, uncovering that reforms focusing solely on markets or macroeconomic adjustments will be insufficient to catapult it toward middle-income status.

The country’s vast population, natural resources, and the prospect of a nascent capital market do entice foreign investors. Yet institutional failings continue to repel them. Some liberalisation has occurred in sectors such as banking, logistics, export, and import trade, but unpredictability remains the norm.

Tax administration embodies these problems. The authorities have sweeping discretion, supported by hazy laws, directives, and circulars. Businesses complain that legitimate deductions are denied and that surprise tax bills arrive mid-year rather than being announced with clarity and consistency. Without more transparent and predictable tax policies, the authorities’ pledges of reform will ring hollow.

Immigration procedures further dampen enthusiasm. The Immigration & Citizenship Services (ICS) has been allegedly collecting unauthorised fees, outsourcing responsibilities to unregistered entities, and subjecting applicants to verbal and physical intimidation. Sudden hikes in service fees and seemingly random penalties cement an image of bureaucracy at odds with an investor-friendly environment.

Investors and domestic businesses also face headaches over property rights. Uncertain tenure, murky land policy, and haphazard land use frustrate those who fear that their assets could be lost to political caprice.

Politics may be the deepest drag. Despite official vows to improve security, the spectre of unrest, armed conflicts, and shaky property protections loom large. Few foreign investors would willingly gamble in a place where private property can vanish on a bureaucratic whim. No matter the fanfare over reforms, confidence will remain brittle if people doubt the system’s strength and commitment to protecting property and upholding contracts.

Federal and regional officials alike have shown scant regard for shielding citizens from predatory acts or guaranteeing that contracts are honoured when politically connected groups are involved. Such behaviour breeds a hostile business climate, one that undercuts any momentum generated by policy liberalisation.

Even so, these liberalisation steps might deliver a more hopeful outcome if they are followed by consistent enforcement. Sound institutions and independent regulators underpin transparency and a stable political environment, prerequisites for wooing capital. Should corruption, misgovernance, and the absence of security remain unchecked, ambitious talk of reform cannot conceal Ethiopia’s vulnerabilities.

The last five years of upheaval, culminating in a devastating civil war, have shaken trust in the sanctity of property rights, contract enforcement, and rule-based governance. Without robust protections, few outsiders will risk their money. Ethiopia’s leaders should abandon their reliance on crackdowns and arbitrary rulemaking if they wish to see the second quarter of this century unfold with greater promise.

Citizens deserve the confidence that their voices count, that they can express dissent without peril, and that negotiations—not bullets—will govern political disagreements. Understandably, many fret that this is too rosy. The near-term prospects remain clouded by tensions in various regions and the risk of renewed violence.

Yet, for all the troubles, if authorities can forge transparent institutions and credible dispute-resolution mechanisms, they might regain the trust of wary domestic and foreign investors. The next quarter-century could be shaped more by enterprise than by enmity.

That trust depends on whether the ruling class accepts the checks and balances of a more open society. Citizens want tangible progress, not grandiose plans overshadowed by draconian policies. Without stable politics and genuine liberalisation, the youth bulge threatening to overwhelm Ethiopia’s labour market will remain a destabilising force. In a globalised era, fleeting triumphs of power do not suffice. Reform should be consistent, transparent, and inclusive. Through the hardships, Ethiopians could still find reason to hope, against all odds.

COVIDs Lessons Have All Been Forgotten

Posted on January 5, 2025January 5, 2025 by Digital Editor

In December 2019, as the world was looking ahead to a new year, a novel virus was quietly spreading in China, having most likely made the leap from animals to humans in a Wuhan “wet market.” Soon, the COVID-19 pandemic would bring the world to a grinding halt, forcing billions of people into unprecedented lockdowns and shuttering economies worldwide. Five years on, we are still tussling with the effects of this “gray rhino”: a high-probability risk that was, nonetheless, neglected or ignored.

What did we learn?

For starters, the pandemic exposed fundamental flaws in the design of the global economy. In such a tightly interconnected world, the virus was able to spread globally in the space of a few weeks, and governments, focused on short-term economic goals, were reluctant to do what was necessary to prevent or stop it. While the World Health Organisation (WHO) issued warnings, it lacked the resources or authority to take decisive action. As hospitalisations mounted, not a single healthcare system in the world proved to be a match for the virus.

Inequality – both between and within countries – fueled heightened social tensions during lockdowns, exacerbating class and gender struggles, but also conflict between the global north and south. In the wake of the vaccine rollout, wealthier countries hoarded doses while billions of people in poorer countries had to wait months or even years for access. This “vaccine nationalism” was a strategic as well as a moral failure.

New variants of the virus soon emerged, prolonging the pandemic and undermining the global recovery. The pandemic also exposed, and fueled, a loss of trust in institutions, as mis- and disinformation campaigns led to disaffection with government pandemic responses. Commonsense measures like social distancing and masks soon became deeply divisive political issues.

The pandemic also lent urgency to questions that can seem remote to the quotidian functioning of the economy.

Should we think of the economy as independent of its host society, and can there even be a global economy without global institutions?

For a fleeting moment, it looked like COVID could be the wake-up call that would finally bring about greater economic solidarity. When the severity of the crisis became apparent, many governments moved relatively quickly to enforce lockdowns, protect vulnerable populations, and roll out fiscal and monetary interventions on an unprecedented scale to prevent an economic freefall. It was the first time in living memory that policymakers started listening more closely to epidemiologists than economists, prioritising people over profits.

The virus illuminated the character of the “commons,” blurring the line between individual and shared interests. It posed a collective-action problem that only a coordinated effort could address. Briefly, the widespread confrontation with death seemed to bring out a kinder, gentler side of society.

But a scientific breakthrough abruptly ended this moral state of exception. As the economic historian Adam Tooze argued, the mRNA vaccine allowed global capitalism to escape a reckoning once again. The pandemic clearly demonstrated that our current economic systems, with their myopic focus on short-term interests, are fundamentally ill-equipped to deal with what the ecologist and microbiologist Garrett Hardin called a “tragedy of the commons.” But this inherent fragility was soon papered over.

While the impetus for reform was lost, it is still obvious that we need international institutions that can align longer-term global interests with shorter-term incentives. The vaccines allowed COVID to be treated as an aberration, but we should not forget what it really was: A preview of the kind of planetary challenges that await us. In the face of climate change, uncontrolled artificial intelligence, and other developments, cooperative cross-border solutions are not a starry-eyed indulgence, but an existential necessity.

Since the pandemic lockdowns were lifted, we have largely gone back to business as usual, averting our gaze from the frailty of global supply chains that resulted in shortages of basic goods – the consequence of “just-in-time” manufacturing and overreliance on concentrated production hubs in the name of efficiency. Rather than reinventing our production networks to make them more resilient and decentralised, we are once again on a quest for the cheapest possible “world factory.”

The “essential workers” whom we briefly honoured, clanging our pots and pans, remain a largely non-unionised precariat lacking the assurances of a strong social safety net. The inequalities we decried have grown only worse, with Oxfam observing that the pandemic left five billion people poorer while doubling the fortunes of the world’s five richest men.

The outcry over racial injustice following the murder of George Floyd is now being dismissed as part of the “woke” agenda that US voters rejected at the ballot box in November. After two years of negotiations, the draft of a global pandemic treaty remains unsigned and the seven million people killed directly by the virus have become mere statistics.

The sobering truth to remember for the new year is that threats like the climate crisis, unfettered AI, and rising geopolitical tensions, not to mention public-health risks like bird flu and mpox, are quietly gathering force – just as the virus was doing five years ago. There are only so many times that science will come to the rescue.

When it does not, will our institutions be able to protect us?

It is worth remembering that COVID-19 was a single “gray rhino,” and it was enough to paralyze us. A herd of rhinos – the risk we face in 2025 – is called, fittingly, a “crash.”

A Pinch of Music, Tragedy, Tech Shifts

Posted on January 5, 2025January 4, 2025 by Digital Editor

I would rank December as one of the best months in 2024. I may be biased by the fact that it was a vacation time for me, enjoying exciting travels during the Christmas season, and finally taking time to recuperate after a busy and testing year. The icing on the cake was my visit to the Africa Jazz Club for an end-of-year show.

The Monday show was star-studded, featuring veteran vocalist Girma Beyene, a timeless icon in the Ethio-Jazz scene, alongside the legendary composer Mulatu Astatke, virtuoso lead guitarist Bibisha (Mengesha Teferi), and Giovanni Rico, the bass guitarist from the legendary Roha Band of the 1980s. Girma’s performance of his signature piece, “Tsigereda,” received a standing ovation. Many in the audience moved closer to the front row to applaud, including a woman who caught my eye as she returned to her seat.

It was Kuku Sebsibe, the diva who reigned over the Ethiopian music scene in the 1980s and 1990s. Her nostalgic nightingale voice, serene demeanor, radiant smile, and unforgettable stage presence were etched in my childhood memories. I remembered her as the shy young girl who mesmerised audiences with her braided hair adorned with white seashell beads, appearing like a princess on our black-and-white TV during a time when broadcasts were filled with war stories.

Seeing her in person felt surreal. Gathering my courage, I asked her if she was indeed Kuku, an awkward question since her identity was unmistakable. With her trademark smile, she confirmed and wondered if we had met before. I confessed that she had been my icon for decades. We hugged like old friends, a moment that felt both extraordinary and familiar.

I hopped she would step on the stage as many were. Later in the show, Kuku graced the stage as a guest star, when it was least expected. The club erupted in applause as she performed two of her beloved songs, rocking the house with boundless energy and earning the audience’s admiration. Her performance was elegant, joyous, and electrifying, making the end-of-year jazz night an unforgettable farewell to 2024. I was lucky to take a picture with both legends, Girma and Kuku, a memory I will cherish forever.

The holiday season was vibrant abroad. Streets in Tokyo, Yokohama, and Bangkok glowed with festive lights, live music, and bustling markets. But, amidst the cheer, the global economic challenges were palpable. Inflation had dampened holiday spirits, with skyrocketing prices straining consumers everywhere. Even in the U.S., economic concerns overshadowed other issues in the 2024 elections, echoing Bill Clinton’s campaign mantra: “It’s the economy, stupid!”

It was not all joy for everyone in the world. Tragedy also marked the end of the year. A plane crash involving Jeju Airways claimed 179 lives. The news hit close to home as my son and I had recently transited through Incheon International Airport on our way to Tokyo. Having shared the festive atmosphere in Thailand, where many of the victims had vacationed, the tragedy felt profoundly personal. South Korea declared a week of mourning, and New Year celebrations were subdued in its wake.

On a personal note, 2024 has not been the best. Illness kept me sidelined during the summer, and only in the last quarter did I feel fully revived. Globally, conflicts raged in Ukraine, the Middle East, and elsewhere. Major political shifts, such as Donald Trump’s re-election, Bashar al-Assad’s ousting, and the deaths of key Hezbollah and Hamas leaders, dominated headlines.

I met several street vendors and shop keepers in Thailand, who fled from the raging war in the neighbouring country Myanmar. The expressions that I saw on the faces of the immigrants shows their sorrow from being deprived a peaceful life in their homeland. I was particularly struck with their humble, kind and upbeat attitude even in the face of adversity. They have a marked patience and hope that all it will all be over one day and get back their past lives in one piece, despite the odds not seeming in their favour.

The rise of artificial intelligence in 2024 showcased its transformative potential while raising profound questions about the future. The technology’s rapid evolution promises opportunities but also stirs anxieties about the displacement of human professions. From journalism to medicine, customer service to warehouse operations, many roles are increasingly under threat. The Fifth Industrial Revolution, driven by AI, is poised to redefine work and society, with predictions that the world may become unrecognizable in a few decades. The exponential growth of knowledge, fueled by AI, is unlike anything humanity has witnessed in millennia.

The passing of Jimmy Carter, the 39th U.S. president, at the age of 100, offered a moment of reflection. Carter’s post-presidential legacy as a philanthropist and human rights advocate remains unparalleled. As AI evolves, some believe it could preserve memories of such figures, ensuring their legacies endure. Yet, as I listened to Bibisha’s soulful guitar at the Africa Jazz Club, I wondered if AI could ever replicate the artistry of Ethio-Jazz; or if Elon Musk’s Martian spacecraft could reach the astral spaces beyond Mars that the melodies transport us to. Music, after all, is the ultimate expression of the human spirit, a celebration of life that transcends time and technology.

Einstein once said, “Life without playing music is inconceivable for me.”

It is a sentiment I deeply resonate with, especially as I recall the magic of that evening. Music has a way of making time stand still, reminding us to savor the present moment. For me, that night was a perfect farewell to a turbulent year and a hopeful embrace of what lies ahead.

Raising Children Takes a Village

Posted on January 5, 2025January 4, 2025 by Digital Editor

Parenting is a journey, filled with unexpected challenges and moments of reckoning. Recently, I found myself confronting a dilemma that tested my patience and principles on how to address the troubling behavior of a neighborhood child who regularly plays with my kids.

This four-year-old girl, though endearing in many ways, has a penchant for physical aggression and surprisingly harsh verbal outbursts. At first, I approached the situation with lighthearted corrections, hoping to set an example through kindness and gentle guidance. But, my efforts yielded little change. On several occasions, she not only kicked me but also hurled insults that were startlingly cutting for someone her age.

Each incident chipped away at my composure.

The breaking point came after a particularly volatile episode where she directed her aggression at both me and my daughter. Determined to set boundaries, I held her hands and calmly explained why her behavior was unacceptable, hoping to make her understand the impact of her actions. Matters escalated when, just as she entered her home, she kicked my daughter again. The brazen act that left me momentarily stunned.

It was not an action I am proud of. But frustration took over, and in a split-second reaction, I lightly smacked her on the behind. The fallout was swift. Her mother, understandably upset, confronted me. As a parent, I sympathise with her protective instincts.

Sharing this experience is not about assigning blame but about sparking a conversation. How do we navigate these modern challenges? Where do we draw the line between tolerance and accountability? Discipline, after all, is not about stifling a child’s spirit but guiding them toward respect and self-awareness. It is a collective effort, one that demands open communication and a willingness to act in the best interests of the community.

I, too, strive to shield my children from harm and teach them respect. But, this incident brought to light a deeper issue: the shifting dynamics of communal responsibility in raising children.

In a twist of irony, the incident did not spare the mother. Moments later, the little girl turned her fury on her, kicking and insulting her in a way that mirrored her earlier behavior. Her mother’s patience snapped, leading to a heated scene where she retaliated in kind. It was a raw, unfiltered moment that underscored the complexities of parenting and the consequences of unchecked behavior.

This incident made me reflect on how societal attitudes toward discipline have changed. There was a time when communities collectively guided children, where neighbors and teachers played active roles in correcting misbehavior. Today, that shared responsibility has waned, replaced by an unspoken rule to stay out of others’ parenting. The result is a growing burden on individuals to manage behaviors that ripple beyond the family unit.

The incident with my neighbor’s daughter is a stark reminder that raising children is not a solitary endeavor. It is a shared responsibility, one that calls for a balance between understanding and action. Only by working together can we create an environment where children learn to thrive—not at the expense of others, but alongside them.

The issues we face as parents today reflect broader societal shifts. Technology, urbanisation, and evolving cultural norms have redefined how children are raised. With fewer opportunities for community engagement and more isolated family units, the task of instilling discipline feels overwhelming. This is compounded by a growing hesitation to confront bad behavior, fearing judgment or conflict.

What is needed is a return to collective accountability, where communities support one another in nurturing the next generation. This does not mean overstepping boundaries but fostering an environment where parents and neighbors collaborate, share wisdom, and reinforce values that benefit everyone. It is about creating a village not just in name, but in action.

A Brief Encounter Turned to a Lifetime of Inspiration

Posted on January 5, 2025January 4, 2025 by Digital Editor

Reading about Jimmy Carter, the 39th President of the United States, left a lasting impact on me in law school. Then, I had the privilege of attending a conference with him at the Economic Commission for Africa (ECA) compound when I was 21 years old. His speech was full of wisdom.

As he was leaving the meeting hall surrounded by security, I called his name from my back seat, expecting that he would wave back. Instead, he stopped, turned, and whispered something to his security personnel. The next thing I knew, I was allowed to stand with him. What followed was an unforgettable exchange.

“You have a great name,” he said with a warmth that immediately put me at ease. He asked about my life and dreams and we took pictures that I treasure to this day.

For me, that moment was more than just meeting a former president. It was a lesson in humility. Here was one of the most influential figures in the world, taking a few minutes to connect with a young stranger with genuine interest. This gesture epitomised his approach to life: every person matters, every story deserves attention, and every encounter is an opportunity to inspire.

Jimmy Carter, a tireless advocate for peace and human rights, passed away on December 29, 2024. Born in Plains, Georgia, he rose from humble beginnings to become a global symbol of integrity, humility, and service. His life, marked by achievements both in and out of office, leaves a legacy that transcends politics. It will endure as a testament to the power of empathy and selfless action.

A brief encounter with Carter as a fresh graduate became one of the most inspiring moments for me. That memory has stayed with me, not just for the man he was, but for what he symbolised: genuine kindness, curiosity, and the ability to inspire others to do good. Few leaders have embodied the ideals of family, humility, compassion, and relentless service to humanity as he did.

His life holds lessons for us Ethiopians who endure so much. Carter’s early years were shaped by the Great Depression, instilling in him values of hard work, strength, and equality. After serving as a naval officer and returning to his roots as a peanut farmer, he entered public service, eventually becoming governor of Georgia. As governor, he championed racial equality and justice, often taking politically risky stances that reflected his moral compass.

Things were never easy for him, but he overcame them. When he assumed the presidency in 1977, the U.S. faced economic challenges and geopolitical tensions. Carter’s tenure was defined by a commitment to principles over politics. His most notable achievement was the Camp David Accords, a historic peace agreement between Egypt and Israel that remains a cornerstone of Middle Eastern diplomacy. He also prioritised human rights, making them central to U.S. foreign policy, and advocated for energy conservation and environmental protection domestically.

Some leaders fade into the background after leaving office, but it was after leaving the White House that Carter co-founded the Carter Centre with his wife Rosalynn, dedicating himself to advancing democracy, human rights, and public health. The Center’s work to eradicate Guinea worm disease stands as one of its most remarkable achievements, reducing cases from millions to near zero. Carter’s efforts in election monitoring across more than 100 countries underlined his belief that every voice matters.

His commitment to peace extended far beyond politics. Carter’s mediation efforts in conflict zones and his grassroots humanitarian work earned him the Nobel Peace Prize in 2002. He embodied the philosophy that peace is not merely the absence of conflict but the presence of justice and understanding.

Faith was a cornerstone of Carter’s life. A devout Christian, he taught Sunday school into his 90s, demonstrating a spirituality rooted in love, humility, and service. His partnership with Rosalynn, spanning 77 years, was a testament to mutual respect and shared purpose. He often credited her as the greatest influence in his life.

Carter’s humility set him apart. He famously pledged to live modestly, shunning the wealth and privilege associated with former presidents. Residing in Plains, Georgia, he continued to build homes with Habitat for Humanity and advocate for the causes he believed in. Jimmy Carter’s life was a masterclass in the art of service. He showed that true leadership is not about power or accolades but about uplifting others. His legacy is a beacon for those who believe in the transformative power of empathy, compassion, and purpose.

As I reflect on my brief encounter with him, I realise it was a defining moment in my life. It reminded me that greatness is not measured by titles or achievements but by the ability to connect with others and inspire them to dream bigger and do better.

What are the BRICS Good For?

Posted on January 5, 2025January 4, 2025 by Digital Editor

One question that 2025 may begin to answer is whether the BRICS (Brazil, Russia, India, China, South Africa) is becoming the new centre of power in world politics. Now that the group has added new members (Egypt, Ethiopia, Iran, and the United Arab Emirates) and come to represent 45pc of the world population, some believe that it is consolidating the (misleadingly named) “Global South” and posing a serious challenge to American and Western power.

I remain sceptical of such claims.

When Jim O’Neill (then the chief economist at Goldman Sachs) coined the “BRIC” acronym in 2001, his aim was simply to identify the four emerging economies that were most likely to dominate global economic growth by 2050.

But the label soon acquired political valence. At the 2006 United Nations General Assembly, it became an informal diplomatic grouping, and then, in 2009, it became a formal organisation with the first BRIC Summit. Hosted in Russia, the focus then — as it is now — was on advancing a multipolar world order. At the end of the following year, South Africa joined, giving the group its “S.”

A Wall Street asset class evolved into an international organisation partly because it aligned with Russia’s and China’s own aspirations to lead the developing world. The BRICS 16th summit in Russia in October 2024 was the first to include its new members (Saudi Arabia has not yet decided whether to accept the group’s invitation to join, and Argentina’s new government declined). Some 36 national leaders attended, as did representatives from many international organisations, including UN Secretary-General Antonio Guterres, and Turkey used the occasion to present its own application for membership.

The 2024 summit focused on fostering ties across the Global South and building a multipolar world, with Russian President Vladimir Putin using the occasion to demonstrate his global diplomatic relevance despite Russia’s invasion of Ukraine in 2022.

With more countries showing an interest in joining, it looks like the BRICS could indeed present itself as a leader of the resistance to the US-dominated international order. Some even see it as the successor to the Cold War-era Non-Aligned Movement, whose members refused to choose between the United States and the Soviet Union. But, while NAM had a shared interest in resisting the US, it did not have Russia and China as founding members.

In any case, the BRICS is unlikely to succeed in formally organising the “Global South.” Not only do its largest and most important members – China, India, and Russia – all lie north of the equator, but the three are competing for leadership. BRICS as an organisation is the rivalry between China and India, which is now the world’s most populous country. Although China is much wealthier than India, it is experiencing a demographic decline (like Russia), while India’s population and workforce continue to grow.

China and India share a disputed boundary in the Himalayas – where their forces have clashed repeatedly – and China’s traditional friendship with Pakistan further complicates the situation. In fact, an abiding concern about China is one reason why India participates in the BRICS in the first place. While it avoids formal alliances, it has also stepped up its participation in “the Quad” (which includes the US, Japan, and Australia) for the same reason.

Rather than making the BRICS stronger, the admission of new members merely imports more rivalries. Egypt and Ethiopia are locked in a dispute over a dam that Ethiopia is building on the Nile River, and Iran has long-standing disputes with the UAE and prospective member Saudi Arabia. Far from making the BRICS more effective, these new intra-organisational rivalries will hamper its efforts. The Group of 77 developing countries has even more members, and it is chronically limited by internal divisions.

At their 2024 summit, BRICS+ discussed matters such as economic and security cooperation, the promotion of cultural exchanges, and joint development projects focused on infrastructure and sustainability. But, such talk usually does not yield significant results. In 2014, the group established the New Development Bank, which is headquartered in Shanghai; but the institution has had only modest results to date.

Likewise, the group’s stated intention of avoiding the Dollar and clearing more of its members’ bilateral trade in their own currencies has made only limited headway. Any serious attempt to replace the Dollar as a global reserve currency would require China to back the renminbi with deep, flexible capital markets and the rule of law – and those conditions are nowhere close to being met.

So, what is the BRICS good for?

It is certainly useful to Russia as a means of escaping diplomatic isolation. As a diplomatic device for projecting leadership of the developing world, it also has been useful to China. As a channel through which to counterbalance China, it has its uses for India. And as a modest stage for touting national development, it has sometimes been useful to Brazil and South Africa.

But do these functions make it a new fulcrum of world politics?

I think not.

America First, Fragmented World Puts Multilateralism in the Crosshairs

Posted on January 5, 2025January 4, 2025 by Digital Editor

No one doubts that US President-elect Donald Trump’s Administration will show little regard for multilateralism. Even more globally oriented appointees like Secretary of the Treasury-designate Scott Bessent believe that the purpose of engaging with international institutions is to “win.” America should engage, but only so that its own interests do not suffer.

The typical American critique of multilateralism assumes that the existing order is fundamentally broken, and that a shock to international institutions is needed to remove threats to US interests or challenges to the American point of view.

But what will come after the shock?

There will need to be new ordering principles, and they will not come from simply demanding that everyone side with the United States (US).

Admittedly, the diagnosis is not completely mistaken. The feebleness of recent multilateral efforts reflects a deeper intellectual and political fragmentation. While the International Monetary Fund (IMF) was holding its annual fall meeting in October 2024, the BRICS (Brazil, Russia, India, China, South Africa, and four new members) convened 36 national leaders in Kazan, Russia, where the discussion centred around replacing the dollar-based international monetary order.

Around the same time, the Conference of the Parties to the Convention on Biological Diversity was meeting in Cali, Colombia, and it was soon followed by a counterproductive climate summit in Baku, Azerbaijan, and then a futile G20 summit in Rio de Janeiro. If multilateralism was functioning well, these negotiations would all be joined up.

The pushback against the international order is not new, though. In the US, incoming Republican administrations in the early 1970s, early 1980s, and early 2000s all voiced contempt for multilateralism, demanding that America’s freeloading allies pay more for the security umbrella that it provides. Richard Nixon and his Treasury Secretary, John Connally, did not hide their disdain for international institutions, arguing that only dramatically disruptive unilateral action could change things. Their shock therapy began spectacularly in August 1971, when Nixon ended the Dollar’s convertibility into gold and imposed a general levy on imports.

Other countries were left to deal with a world in which their exports had become more expensive.

Similarly, in the early 1980s, Ronald Reagan’s advisers were openly suspicious of the IMF. In the early 2000s, many within George W. Bush’s orbit argued that the recent financial crisis in East Asia had discredited the Fund and that private capital flows could meet all development financing needs anyway.

In each case, however, a severe financial crisis eventually forced a reconsideration. In the 1970s, the depreciating Dollar led oil producers to push up prices, and many oil-importing developing countries had to be rescued by a newly created IMF Oil Facility. In 1982, a soaring Dollar and higher US interest rates produced a general debt crisis, leading the IMF to reconfigure itself to meet the demands of the moment. By 1983, Reagan referred to the Fund as the linchpin of the international financial system.

Finally, the 2008 global financial crisis began in the final years of the Bush presidency. Soon enough, governments had come together at the G20 and in other global bodies to contain the fallout and set new rules of the road.

Recent history aside, there is a more fundamental reason why multilateralism will remain essential. In a world that seems to be segmenting into rival blocs, most countries are rightly focused on protecting their own interests. And since those interests do not neatly align with those of America, China, or any other aspiring global power, governments want to maintain contact with every party in the looming conflict.

A similar dynamic lay behind the Cold War-era Non-Aligned Movement, which brought together countries that refused to choose between America and the Soviet Union. Likewise, ASEAN developed out of a concern that Indonesia should not have to take sides; rather, it could assert itself by forging stronger ties with its neighbours. The European Community, which evolved into the European Union (EU), also emerged because Europeans, though aligned with the US, did not want to be an extension of it.

By 2008, in the middle of a new financial crisis, ASEAN wanted to move in the direction of becoming an EU-style community.

Everywhere we look nowadays, the message is the same: “We don’t want to choose sides, and we shouldn’t be forced to do so.” British Prime Minister Keir Starmer rightly argues that it would be “plain wrong” for the United Kingdom (UK) to pick between Europe and the US. In response, Trump’s adviser, Stephen Moore, suggests that Britons must choose European socialism or American-style free markets.

But with every government now pursuing some sort of industrial policy, this juxtaposition is a chimaera.

Challenging historical episodes always bring a realisation that the world is not really constructed around zero-sum calculations. US Treasury Secretary Henry Morgenthau put it elegantly at the original Bretton Woods conference: “Prosperity, like peace, is indivisible. We cannot afford to have it scattered here or there among the fortunate or to enjoy it at the expense of others.” In the final months of World War II, US leaders saw that they could not win the peace by working only with those who adopted America’s playbook.

If a country as powerful as the US in 1945 still needed to win friends and influence people, today’s America certainly should do so. Shock therapy for multilateralism will bring disruption; but after that, it should bring more international cooperation, because there is no alternative.

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Month: January 2025