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Month: January 2025

It’s Coming Whether We Like It or Not

Posted on by Digital Editor

We are now two years into a transformation comparable in importance to the first Industrial Revolution. But with expert forecasts of the impact of artificial intelligence (AI) ranging from Panglossian to apocalyptic, can we really say anything yet about what it portends?

I think we can.

First, neither nirvana nor human extinction will come anytime soon. Instead, we can look forward to many years of instability. AI technology will continue to progress rapidly, with ever more remarkable capabilities. We have not even exhausted the current transformer-based models (which rely heavily on brute force computation), and enormous efforts are underway to develop better models, semiconductor technologies, processor architectures, algorithms, and training methods. Eventually, we will get to artificial general intelligence systems that equal or surpass human intellect.

For now, though, AI remains remarkably limited. It cannot even cook a meal or walk a dog, much less fight a war or manage an organisation. A malevolent superintelligence will not be taking over the planet any time soon. But, how the AI revolution plays out – and the ratio of progress to pain – will depend on a series of races between the technology and human institutions. So far, the technology is leaving the human institutions in the dust.

I am very much an optimist about AI’s potential benefits, and I see exciting and encouraging developments in education, art, medicine, robotics, and other fields. But I also see risks, most of which are not being addressed. What follows is a brief, necessarily simplistic, tour.

As was true during the First Industrial Revolution, AI’s employment and income effects will be capriciously distributed, often appearing with little warning. The overall trajectory of gross national product might look wonderfully positive and smooth, but underneath that clean curve will be a great deal of pain and anxiety for considerable numbers of people, at every level of society, along with new opportunities for many, and enormous fortunes for some.

Currently, AI is most suited to automating highly complex, but also highly structured, activities such as navigating streets, classifying images, playing chess, and using languages (both human and computer). But the actual effect of AI on a given human activity depends on three variables: the rate and degree of automation; the human skill levels associated with the activities that can (and cannot) be automated; and – crucially – how much additional demand will be created by the availability of inexpensive AI automation.

What this means in practice can be quite surprising.

Consider some examples, starting with language translation. I recently spoke with two eminent AI experts, one after the other. The first argued that AI will soon eliminate human translators completely, because AI translation will be essentially perfect within five years. But, the second expert argued that we will need more translators than ever. As AI enables the rapid, inexpensive translation of absolutely anything, there will be an explosion in translated material, with human oversight required to train and improve AI systems, and also to review and correct the most important materials.

I concluded that this second view is more accurate. There will be a huge explosion in what gets translated (in fact, there already is); and for some things, we will still want human oversight. Translations are not only for weather reports and menus; it is also for the FBI, the CIA, chemical companies, medical-device manufacturers, emergency-room doctors, world leaders, surgeons, airplane pilots, commandos, and suicide-prevention hotlines. While human translators’ roles will shift toward training, monitoring, and correcting AI systems, we probably will need translators for a long time to come.

Similar questions arise in other fields.

Many believe that software engineers’ days are numbered, because AI is getting really good at doing what they do, using only nontechnical human instructions. But, others argue that this trend will drive a huge increase in the quantity and complexity of software produced, requiring many human specialists to conceptualise, organise, verify, and monitor this massive body of code. Here, there is not yet a consensus about AI’s net labour effects.

For lawyers, the future looks tougher. It is still early days, but I have already had numerous conversations like this: “We needed an employment/investment/partnership/acquisition agreement, but our lawyer was taking forever, so we asked Perplexity (an AI service) to do it instead, and it works. We had a lawyer check it, and it was fine, so we don’t need lawyers anymore, except to review stuff.” Unlike language translation, AI seems unlikely to lead to a thousandfold explosion in legal work. I anticipate that lawyering will, indeed, come under pressure, with humans handling only complex cases that require highly trained experts.

Conversely, in some other professions – accounting and auditing are often mentioned – AI will alleviate severe shortages of trained professionals.

Now consider driving. The current (and fully warranted) focus on autonomous vehicles has obscured something else: AI has already de-skilled driving as a profession. Twenty years ago, an urban taxi driver had to be smart, alert, and have a superb memory. But now, London cabbies’ legendary mastery of “the Knowledge” is no longer needed. The availability of AI-driven turn-by-turn directions on every phone has turned professional driving into mindless gig work for ride-hailing platforms. And these jobs will disappear completely when autonomous driving gets good enough (and it is almost there).

Next, consider robotics (of which autonomous vehicles are, in fact, one example). With generative AI, we are witnessing a revolution that will eventually affect all physical activity, from manual labour to housework to warfare. Venture capital investment in robotics has sharply increased to billions of dollars this year, suggesting that the VC industry is making huge bets that robots will start to replace humans on a massive scale within the next five years.

The first activities to be fully automated will be in highly structured, controlled environments – warehouses, fulfilment centres, supermarkets, and production lines. Automation will take longer for unstructured activities near humans (like in the home, or on the road), but there, too, progress is being made.

Another domain where AI has made terrifyingly rapid progress is weaponry. The relevant analogy is not the Industrial Revolution, but World War I. In 1914, many on both sides thought that the war would be relatively painless; instead, new technologies – machine guns, explosives, artillery, and chemical weapons – brought horrific mass carnage. And I fear that, at present, few political or military leaders understand how deadly AI-driven warfare could be. AI will remove humans from many combat roles, but it will also mean that any humans who are in combat will be killed with extreme efficiency.

Will this result in sanitised wars with no human combatants, or in unprecedented slaughter?

The early evidence from Ukraine is not encouraging.

Inexpensive, AI-driven systems are also destabilising the sources of national military power by rendering expensive human-controlled systems such as armoured vehicles, ships, and aircraft extremely vulnerable to inexpensive AI-controlled weapons. Worse, this is occurring at the onset of a new cold war, and during a period of heightened domestic political instability across the West.

And what will AI mean for gun control?

Will the Second Amendment of the US Constitution be interpreted to protect AI-controlled weapons that can be placed in a hotel room window and programmed to target everyone below, or a specific person, one week later?

A final concern is disinformation. While AI is already capable of producing somewhat realistic fakery in text, images, short videos, and audio, many observers have taken comfort from the apparently minor role that AI fakes have played, up to now, in elections and the news media. But declaring victory would be dangerously premature. For now, it is easy enough for reputable news organisations, major internet platforms, and national intelligence services to determine what is real and what is fake. But AI technology is still in its infancy.

What will happen a decade from now (or possibly sooner) when nobody will be able to say with certainty what is real?

These issues will play out in many domains. One obvious implication is that countries need to reinvent and strengthen their social safety nets and educational systems to navigate a world in which skills and professions will be appearing and disappearing quickly and often. The anger we see among people left behind by the last 30 years of globalisation is likely to seem mild compared to what AI could yield unless we prepare for it. Similarly, we need extremely stringent regulation of deepfakes, including labelling requirements and stiff criminal penalties for producing or distributing unlabeled ones.

Welcome to the future. I hope we can get our arms around it, because it is coming whether we like it or not.

The Climate Crisis Is Also an Inflation Crisis

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Global inflation in recent years has pushed the prices of food, energy, and basic goods to unprecedented levels. As a result, the rising cost of living has dominated political discussion around the world, but especially in G20 countries. Ahead of this year’s presidential election in the United States, for example, 41pc of Americans cited inflation as their top economic issue.

High inflation risks overshadowing another urgent crisis in global warming. But rising prices and climate change are closely linked. Extreme weather damages crops, spoils harvests, and drives up food prices, and its impact is growing more pronounced as heatwaves, droughts, and floods become more frequent and intense. These events also disrupt supply chains and energy production, pushing up the price of other essential goods.

Climate-induced inflationary pressures are especially acute in Africa and Latin America, where food accounts for a significant share of household spending. For example, an extensive drought exacerbated by El Nino raised the price of staples in Malawi, Mozambique, Zambia, and Zimbabwe earlier this year, creating a hunger crisis. By contrast, households in wealthier countries tend to spend a smaller share of their income on food and are thus better insulated.

Discussions about climate change often overlook its economic toll on vulnerable populations and how it deepens inequality, focusing instead on green growth and emissions reductions. But as inflation increasingly disrupts economic stability, this toll can no longer be ignored. Shifting weather patterns have raised the prices of oranges in Brazil, cocoa in West Africa, and coffee in Vietnam. A recent study by the Potsdam Institute for Climate Impact Research and the European Central Bank estimates that rising temperatures could drive up food inflation by 3.2 percentage points per year, with overall inflation increasing by 1.18 percentage points annually by 2035.

Climate change should be central to economic policy rather than being treated solely as an environmental issue. Fiscal and monetary authorities should incorporate immediate and long-term climate-related risks into their inflation forecasts and policies – as they already do with the “transition risks” of shifting to a low-carbon economy. Some institutions have begun to adapt.

The South African Reserve Bank has acknowledged the importance of understanding climate risks. Since 2018, the Central Bank of Costa Rica has integrated the impact of global warming into its economic models.

Central banks and finance ministries should also work with climate organisations to create practical solutions that help cushion economies from the interrelated shocks of extreme weather, soaring inflation, and food insecurity. For example, the African Climate Foundation (where one of us works) has developed Adaptation & Resilience Investment Platforms (ARIPs), which use advanced analytics that combine climate and weather data, biophysical models, and economy-wide models to facilitate investment and policy prioritisation, a more comprehensive approach to building resilience.

The ACF used an ARIP in Malawi last year, after the country was devastated by Cyclone Freddy, the longest-lasting tropical cyclone ever recorded. Using this financial tool enabled policymakers to identify lasting solutions that would mitigate the economic damage caused by the cyclone while protecting key industries and strengthening financial stability. Other climate think tanks are pursuing similar goals. Iniciativa Climatica de Mexico is pushing policymakers to consider climate risks in economic planning, while the Institute for Climate & Society in Brazil has called for social-protection plans and climate-sensitive policies to shield low-income communities from the economic consequences of extreme weather.

Equally important is regional collaboration, which would allow countries in Africa and Latin America to develop and share economic policies that are specifically tailored to their climate vulnerabilities and support the most exposed communities. Initiatives like the Inter-American Development Bank’s Regional Climate Change Platform of Economy and Finance Ministries can serve as a blueprint for such efforts.

Greater coordination between climate and economic institutions is crucial at the global level. Tools like the European Union’s Carbon Border Adjustment Mechanism highlight the need for careful policy design to mitigate adverse effects – in this case, higher costs for consumers in developing countries. Brazil, as the host of next year’s BRICS Summit and United Nations Climate Change Conference (COP30), and South Africa, as the current G20 president, have a unique opportunity to redefine the global economic agenda, championing policies that address the twin crises of inflation and global warming.

Failure to act collectively and decisively could deepen inequality, erode economic stability, and jeopardize climate goals. But, if policymakers develop innovative solutions that bridge the gap between climate and economic strategies, they can reduce the immediate risks of extreme weather and foster long-term stability and resilience. As inflation and the planet heat up, the need for integrated, equitable policies has never been more urgent.

Christmas Rush Drives Exhibition Boom, Economic Uncertainty Looms

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Bazaars and exhibitions are springing up across Addis Abeba, tapping into the festive Christmas shopping season. The Addis Abeba Exhibition Centre is hosting a large Christmas event organised by Robust Business Group, featuring over 500 vendors eager to capitalise on the holiday rush. Telebirr is the event’s title sponsor and the exclusive payment method for entry.

Initially priced at 100 Br, entrance fees have doubled to 200 Br in the final week leading up to Christmas Eve. Over 20 Telebirr staff facilitate ticket sales at the gates.

This year’s exhibition expands to Mesqel Square, now buzzing with shops, a children’s play area, and a towering 21-meter Christmas tree. Live cultural performances add to the festivities. As evening falls, the area transforms into a lively scene with live music, food, dancing, and beer vendors competing for attention.

Head organiser Samson Shiferaw expects daily attendance between 7,000 and 10,000, with numbers reaching 15,000 as the holiday nears. Samson told Fortune that his team won the bid to organise the event, outpacing six competitors.

The event has seven sponsors, including title sponsor Telebirr, alongside Abay and Awash banks, and Hamaressa Oil. Dashen Beer and BGI serve as service sponsors. Robust’s total expenditure for the bazaar stands at 130 million Br, with 80.6 million Br allocated to secure the event space, according to Samson.

“The addition of Mesqel Square has inflated costs this year,” said Samson.

A shopper, Tinbit Daniel, was looking to buy clothing and fragrances. She said that while food and beverage prices are high, perfumes are slightly less priced compared to outside stores. She also noted that some local clothing was of poor quality, but was happy to see locally manufactured garments none-the-less.

Stalls inside the halls are rented for 40,000 Br, while outdoor lots go for 60,000 Br to 70,000 Br.

Mulutesfa Sete, a vendor selling various holiday items like Christmas trees, said that “buyers are not showing up as expected.” He sells trees for 11,000 Br to 70,000 Br and Christmas models made from wood for 1,000 Br to 3,000 Br.

Another large-scale Christmas bazaar and exhibition is being held at the Millenium Hall on Africa Avenue. CBE Birr is the title sponsor at this location and offers a 10pc to 20pc discount on entrance tickets purchased through their application. Visitors are greeted with loud music, but the hall appears less crowded.

Barok Event Organiser, which has been holding holiday bazaars at the Hall for the past year, is hosting 350 vendors for this event. According to Solomon Ambachew, deputy general manager, exhibitions are held for three holidays during the year.

Kassa Tadele, a customer who purchased a solar light and artificial grass at the Exhibition Centre, stated, “exhibitions are the best platform for social gatherings.” He said that the hall was less busy compared to previous holidays.

Foziya Denur, a shoe vendor with a shop in the Bole Michael area, paid 80,000 Br for her booth for the 12-day exhibition, while corner booths go for 100,000 Br. She argues that there is not much profit from exhibiting and said that her stall during the Ethiopian New Year exhibition in September cost 60,000 Br. She says that there is less demand for her commodities compared to previous years. “Business has slowed down this year.” She recommended “the organisers do better promotional work.” She believes the economy is in a slowdown and people are unable to afford many holiday commodities, stating that she sells her products at the same price as her shop.

Vendors hope the event could benefit them in exposing and linking them with potential future customers. Tigist Muluqen, sells traditional and modern gift items. She said “the best thing about these exhibitions is exposure, not sales.” She also agrees that promotional work by the organisers could improve. She admits that the number of visitors have decreased this year.

According to economist Atlaw Alemu (PhD), customers should not expect reduced prices but should rather focus on quality and the convenience of finding many vendors in one place. “Usually, products found at bazaars are more expensive than those in outside stores,” he said.

He says that exhibitions cater to the middle class, which is currently facing financial stress due to the cost-of-living crisis. “The benefit of exhibitions is to provide a strong platform for connecting with customers and building connections,” he said.

Lalibela Struggles to Recover from Pandemic, Conflict Fallout

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Lalibela town draws thousands of Ethiopians each year to celebrate Christmas (Genna). Tourism expert Netsanet Teressa, a regular visitor for work, notes that many now prefer flying over driving, citing security problems, despite the existence of asphalt road connecting Addis Abeba to Lalibela via Kombolcha.

Netsanet secured his plane ticket in mid-November for under 4,000 Br. Last week, Ethiopian Airlines’ round-trip prices ranged between 11,000 and 14,000 Br.

Genna celebrations in Lalibela begin on January 5 and continue until the morning of January 7, marking the end of the 43-day fast. Pilgrims fill the church courtyards while dignitaries and international tourists gather on the cliffs overlooking the Church of Saint George, the most famous of Lalibela’s eleven rock-hewn churches.

Wendimnew Wedaje, Lalibela’s deputy mayor, expects over 1.5 million visitors this year. To manage the influx, authorities have formed eight committees tasked with ensuring security, cleanliness, and smooth operations during the celebrations.

“We have already started welcoming guests,” Wendimnew told Fortune. Last year, around half a million people attended Genna in Lalibela, three times the number from the previous year. This year, the return of internet services following regional unrest and conflict signals a hopeful recovery for the town’s tourism sector.

A conflict between armed groups  commonly known as Fano and the federal government erupted in the Amhara Regional State in April 2023, and a state of emergency was declared in August that year. Conditions remain unpredictable, although the government controls major cities.

Before the war and the coronavirus pandemic, the Amhara Tourism Bureau had annual revenues of 5.4 billion Br. The ongoing conflict has raised safety issues among potential visitors, leading to postponed travel.

The tourism sector, crucial to the region’s economy, has seen a substantial decline, particularly between August 2023 and February 2024. Before the Covid-19 pandemic, the Ethiopian tourism sector contributed nearly 4.8 billion dollars to GDP, with international tourist arrivals surpassing 1.4 million.

Wendimnew noted that the town’s authorities are working closely with Ethiopian Airlines to maintain reasonable prices, as the carrier tends to raise fares due to flights returning to Addis Abeba mostly empty.

In a press release issued last week, Ethiopian Airlines announced that flight prices to Lalibela and Gonder will rise during the Genna holiday, along with an increase in flight frequency.

Many hotels in Lalibela remain closed following years of war. Habte Melese, owner of Sora Lodge, once a popular spot for local and foreign officials, recalls the bustling pre-pandemic days when his hotel was constantly full.

“Before 2020, we were overcrowded and overbooked,” Habte said. “Comparing this period to those days feels like daydreaming.”

Travel advisories remain a major obstacle to recovery. The U.S. Department of State warns against travel to the Amhara region, citing “sporadic violent conflict and civil unrest.” The UK, Australia, and Canada have issued similar warnings, complicating travel insurance for potential visitors.

“Over 90pc of our guests were foreigners, and these red alerts cast a black shadow,” Habte lamented. Since the war, his staff has been cut from 56 to 26, as most hotels in the area remain shuttered.

Despite the struggle, Habte remains hopeful for the upcoming Genna celebrations. His optimism is echoed by Fitsum Gezahegn, head of the Ethiopian Tour Operators Association. Fitsum believes the tourism sector is ready to welcome visitors but admits the peak years of 2018 and 2019 now feel like “a fantasy.”

A general manager at a major  Addis Abeba-based tour operator, who wished to remain anonymous, said he will not be offering tours this Genna due to ongoing travel restrictions and unrest. Most of his clients are foreigners. With the recurrent armed skirmishes in the region, demand has dried up.

The general manager explained that international tourists and expats living in Ethiopia form the bulk of their clientele. Local travelers often bypass tour services, preferring to visit in groups or through religious organisations.

Efforts are underway to revive the industry. Endy Assefa, president of the Ethiopian Tourist Guides Professionals Association, shared that his company is exploring partnerships with Ethiopian Airlines to create joint travel packages.

“Many tour guides have left the field, while others are trying to stay afloat by networking on social media,” he said.

Andinet Feleke, former president of the Ethiopian Tour Operators Association, voiced similar problems. “We have no guests. Even local visitors are not showing interest,” he said. Andinet called on stakeholders of the tourism industry to offer discounts to attract tourists and urged the government to prioritise security and stability.

Mesay Mekonen, former chairperson of the Lalibela Hotel Association, says over 50 hotels operate in Lalibela, but their services are inconsistent due to curfew restrictions. He believes the government has strengthened security ahead of the holiday season.

Economist Atlaw Alemu (PhD) says that peace and security is crucial for boosting local tourism. “We can not function without peace, even for a day,” he said. He stated that foreign tourists seek new experiences, but stability is the most important factor they consider. Atlaw also pointed out that even during peaceful times, not enough was done to invest in the tourism sector.

Demolition Boosts Cargo Profit, Disarrays Communities

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The streets of Abo Mazoria around Mekanisa, once bustling with people, now lie in silence. It is now filled with debris and dust. On the morning of December 26, 2024, the area seemed almost unrecognisable; narrow streets that once housed small busy shops and shopping centers are now filled with scrap metal, wood, and broken concrete.

Isuzu and pickup trucks and workers wander through the debris, loading whatever they can salvage.

Yigermal Temesgen, a pickup truck owner, waits by the roadside for a client. His task is to transport metal sheets and wood from the demolished houses. A father of two, with children in grades four and six, Yigermal lives in the Saris area with his parents, who depend on him for support.

His only source of income is his aging Toyota single-cab pickup truck, which he uses to transport goods between Saris and Gottera. The truck can load up to 12 qtls. Before the demolitions, his daily net income averaged 2,000 Br.

Supporting his family was no easy task. Yigermal not only provides for his wife and children but also sends 2,600 Br each month to his brother, a health sciences student at Wolaita Sodo University. His children’s school fees cost 2,700 Br monthly, and he spends another 2,000 Br on his father’s medical expenses. His wife earns a net monthly salary of 5,200 Br.

The corridor development project in Addis Abeba has improved his income. The demolition of neighborhoods has brought new opportunities for Yigermal. Previously, he managed one transport job a day. Now, he averages three trips, earning around 5,000 Br daily, sometimes reaching as high as 9,000 Br.

With increased income, life has changed for his family. “When your income grows, so do your desires,” Yigermal said. He no longer works late into the night searching for jobs. Instead of returning home at 8 PM, he now finishes by 6 PM.

His children’s transportation service, once costing 1,100 Br a month by Isuzu bus, has been upgraded to a 1,850 Br minibus service. His weekly Equb savings also grew from 1,600 Br to 3,000 Br.

Addis Abeba’s corridor development project has affected the freight transport business. The demolition of homes and businesses has triggered soaring demand for trucks to move salvaged materials and household belongings.

The project, launched in March, began with Piassa and expanded in October to cover 132km and 2,817 hectares. Addis Abeba City Mayor Adanech Abiebie announced five billion Birr and 100 hectares set aside for compensation to displaced homeowners.

The corridors, ranging from the 3.1km Anbesa Garage-Jakros-Goro route to the 40.4km Kasanchis-Estifanos-Meskel Square-Mexico-Churchill-Arat Kilo corridor, connect residential, commercial, and recreational areas.

The second phase of the corridor development includes vast areas covering Arat Kilo, Qebena, Piassa, Kazanchis, Mekanisa.

The project has led to displacement in these areas, creating steady work for truck owners as residents relocate. Alongside moving household items, trucks are in high demand to transport debris from demolished sites.

Isuzu NPR trucks and Sinotruks handle heavy loads, with Isuzus carrying around 40qtls and Sinotruks transporting up to 250qtls. Smaller pickups are used for lighter loads.

For many drivers, this boom is a paradox. Abraham Megersa, an Isuzu driver, says business has improved, but he was displaced by the same project. He used to transport goods across the country and now only operates within the city limits due to security issues. “We make more money, but the costs rise just as fast,” he said. He attributes this to soaring costs for fuel, spare parts, and taxes. A single Isuzu tire now costs 28,000 Br.

Despite expenses, daily earnings for drivers like Abraham and Yigermal have nearly doubled. Abraham’s income jumped from 4,500 to 8,500 Br, while Yigermal’s rose from 2,000 to 5,000 Br.

Kibrom Hayelom, a Sinotruk driver based in Haile Garment, now earns 13,000 Br daily, up from 8,000 Br, thanks to the rising demand driven by Addis Abeba’s corridor development projects. Many drivers told Fortune that there is an increase in work, with no need to wait in line for jobs.

The surge in demand extends beyond transporting debris and relocations. The overall price for transport services has sharply increased. Kibrom, working over 16 hours daily, ferries sand, soil, and gravel, while others like Tsedalu Teshome deliver drinking water.

Tsedalu, with 11 years of experience, has seen his daily income rise from 5,000 Br a year ago to 8,000 Br by selling 2,000 liters for 1,200 Br.

Increased demand has partly driven up truck prices. Kaki Plc, an importer and assembler of Isuzu trucks for over two decades, says it has seen a 25pc price hike since July. The price of an Isuzu NPR truck has increased from four million to five million Birr, influenced by forex liberalisation as well, according to Muez Yihdego, deputy general manager at Kaki.

However, drivers and truck owners in Addis Abeba are also facing new problems despite booming business from corridor development projects. Restrictions on movement times imposed by the Addis Abeba Transport Bureau and Oromia Regional State limit work hours on main roads. Some drivers also cite safety issues in some areas.

Yonas Aweke, general manager of Selam Le-Andinet Freight Association near Mercato, said that time limits and instability outside the city have reduced opportunities for cargo drivers beyond Addis Abeba. Spare part shortages are another hurdle for truck owners.

While transport operators benefit, customers are paying higher prices. Asnakew Derese, a merchant, says freight costs have risen, 15 Br more per quintal for pickup trucks and 10 Br more for Isuzu trucks compared to three months ago.

For residents like Yohannes Derbie, whose home in Mekanisa was demolished, the cost of moving has been steep. He paid 27,000 Br to transport his furniture and scraps.

Although city authorities promised to cover relocation costs, Yohannes and others found the process very slow and opted to pay themselves.

“I had no choice but to pay; it is hard to afford,” Yohannes said.

Mohammed Abdulaziz, a broker, stated that while transport prices have not spiked drastically, the increased demand has made it easier for drivers to find work.

“Like the drivers, we are also working more,” Mohammed said, noting that most displaced residents are relocating to nearby areas.

Tech Expo to Spotlight Digital Future, Emerging Technologies

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An expo set on capitalizing on Business Process Outsourcing (BPO)—Future Tech Addis Expo 2025—is set to take place at Skylight Hotel in February. Organized by RCNDC Consultancy in partnership with the ministries of Education and Innovation & Technology, the expo seeks to demonstrate technology’s role in driving socio-economic development, featuring exhibitions of the latest tech advancements, panel discussions with experts, hands-on workshops, and networking opportunities. Hackathons will also be part of the event.

Alongside BPO, the organizers seek to focus on cloud computing, demonstrating the potential of cloud-based solutions to enhance efficiency for businesses and institutions; artificial intelligence (AI), showcasing innovations across sectors and addressing ethical implications; e-commerce, focusing on digital trade platforms; and digital mining, presenting innovative technologies in resource management.

Ministry Leads New Climate Reporting System

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The Ministry of Planning & Development launched an integrated system for measuring, reporting, and verifying greenhouse gas emissions, as well as monitoring and evaluating climate change implementation. The integrated and harmonized national measurement, reporting, and verification (MRV) and monitoring and evaluation (M&E) system, was announced at a program held at the Radisson Blu Hotel on Tito St. last week.

State Minister Seyoum Mekonnen clarified that the Ministry is solely responsible for climate and related issues, eliminating the need for agreements or memorandums of understanding with other governmental institutions, and will lead the work moving forward. He also noted that Ethiopia has been implementing various environmental and climate change policies and has prepared performance reports for development planning, monitoring, and evaluation, as well as reporting to the United Nations Framework Convention on Climate Change (UNFCCC).

Previously, the existing MRV system had inconsistencies and data gaps. A key goal for the Ministry is establishing an integrated MRV/M&E system this year, which includes developing a single plan and reporting system. This system is designed to produce a biennial transparency report on greenhouse gas emissions and climate change implementation. Preliminary work for this report has been completed, according to the Ministry.

A national committee, consisting of experts from seven relevant ministries and three other institutions, has been formed to support the project. The project is technically supported by the Global Green Growth Institute (GGGI), with financial backing from the Nationally Determined Contributions Partnership (NDCP) and the United Nations Office for Project Services (UNOPS), and is led by the Ministry.

Haile Hospitality Expands with New Jimma Resort

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Haile Resort Jimma, the tenth destination in the 15-year-old Haile Hospitality Group, was inaugurated last week at a cost of 1.7 billion Br, with financing sourced internally. Located 350km southwest of Addis Abeba in Jimma, in Oromia Regional State, the hotel spans 16,000sqm with a total built-up area of 15,300sqm.

The resort boasts 105 rooms, two villas, five conference halls, and four restaurants, as well as other recreational facilities. The construction of the hotel took one and a half years.

Gadisa Girma, the managing director of Haile Hospitality Group, stated that the southwest area of Ethiopia lacks developed hotel infrastructure. “We do not expect to experience a shortage of customers.” He anticipates a diverse customer base, including coffee traders, tourists, as well as business-leisure travellers.

The Haile Hospitality Group has more than 2,500 employees, and the Jimma branch currently employs 210 people. Gadisa disclosed that its Hawassa, Arba Minch, and Adama hotels have strong performance especially during holiday seasons and school winter break. All branches have an occupancy rate of more than 60pc.

This year, Gadisa expects the reopening of the Shashemene branch, severely damaged in June 2020 during a period of unrest and violence, as well as the launching of the Debre Berhan branch, both of which are at 90pc completion

Reinsurer Navigates Headwinds, Grows Profit

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Ethiopian Reinsurance registered an increase in profit after tax, reaching 391 million Br in financial year 2023/24, a 60pc jump of 146 million Br from the previous year. The company also saw a rise in revenue to 2.21 billion Br, up from 1.71 billion Br, representing a 29pc increase.

Earnings per share also rose to 2,176 Br in the 2023/24 financial year, up from 1,552 Br the year before. The eight-year-old company’s net investment income increased to 317.7 million Br in 2023/24, up from 269.2 million Br in the previous year. Operating and other expenses also increased, rising to 93.7 million Br in 2023/24 from 67.1 million Br.

Ethiopian Re is the first reinsurance company in Ethiopia, and has been operating since 2016. Its capital structure includes private and public financial institutions as well as individual investors, with the government owning 40pc through the Commercial Bank of Ethiopia (CBE) and Ethiopian Insurance Corporation (EIC). Its current shareholders include seven banks, 17 insurance companies, one labour union, and 102 individual shareholders, totalling 127 as of June 2024.

Board chairperson Meseret Bezabih stated that the company achieved its five key strategic initiatives including obtaining a global credit rating from AM Best and the extension of compulsory cession for an additional five-year term. However, the reinsurance market is facing headwinds, with rising capital costs, tightening interest rates, and decreased reinsurance availability, making it a “hard market for the reinsurance industry,” according to Meseret.

Acting CEO, Fikru Tsegaye, accentuated the company’s strong balance sheet, “adequate operating performance, business profile, and marginal enterprise risk management,” as affirmed by international rating agencies.

ZamZam Bank Charts Growth with Interest-Free Banking

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ZamZam Bank closed the fiscal year with a net profit 110.3 million Br, an increase of 55.95 million Br or 103pc year-over-year. This followed income reaching 857.9 million Br, against expenses of 710.2 million Br. The Bank’s income surged by 93pc, while expenses increased by 42pc. The Bank’s financing and investment portfolio reached 4.63 billion Br, a 25pc increase compared to the previous year. Of this, a substantial portion of 3.12 billion Br was channelled towards financing activities.

The country’s first fully-fledged interest-free bank held its annual general assembly in Millenium Hall last week and released its annual report for the financial year 2023/24. The board showcased growth and expansion with total assets reaching 9.38 billion Br, a 36pc increase from the previous year. Paid-up capital also saw a rise to 2.05 billion Br, a 21pc increase. Deposits grew by 38pc, totalling 6.87 billion Br.

ZamZam Bank expanded its reach to 84 branches, adding 9 new branches, a 12pc increase. The bank successfully mobilized 30.47 million dollars during the fiscal year, marking a growth of 56pc compared to the previous year. Looking ahead, Nassir Dino (PhD), board chairperson, stated the Bank aims to execute its new strategic plan, enhance its digital banking footprint, and diversify its product offerings while Melika Bedri, president of the Bank, pointed to the milestone of securing a plot of land in the so-called financial district.

The Bank has also been focusing on digital banking and IT infrastructure, recently releasing an un-collateralized digital financing project called Ansar in association with Kifiya Financial Technology.