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Month: January 2025

Edible Oil Industry on the Brink as Factories Shut Down, Succumb to Foreign Competition

Posted on by Web Master

The edible oil industry is on the brink of collapse, with the number of fully operating factories plummeting from 60 three years ago to just four. Over 20 manufacturers have permanently closed, while many others produce only sporadically.

Rising raw material costs and economic instability have left manufacturers struggling. Industry players are calling for urgent policy reforms, including imposing customs duties on imported oils and exempting raw materials from VAT.

The Ethiopian Edible Oil Producers & Manufacturers Association (EOPMA) recently appealed to Finance Minister Ahmed Shide, warning that policy misalignment, tax adjustments, and unchecked imports have pushed the industry to the edge of collapse. Manufacturers argue that immediate action is needed to prevent further closures.

Local edible oil processors are losing market share as cheaper imported products dominate the market, driving consumer preference away from local alternatives. Many manufacturers have reduced production or shut down entirely due to higher factory gate prices for local oils compared to imported ones.

Mohammed Yusuf, board chairman of the Association, plans to lobby for higher duties and taxes on imported oils to support local producers. He argues that equal import duties on raw materials and finished products create an unfair playing field. He says the shortage of essential raw materials such as soybean, sunflower seed, sesame, and palm kernel, along with rising costs are major factors forcing manufacturers out of business.

“Imported oil must face duties,” Mohammed said. “The current conditions discourage new players from entering the market.”

VAT requirements have further raised production costs, inflating the final prices of locally produced oils. Over recent months, the price of a five-litre bottle of local edible oil has jumped by 300 Br (30pc) reaching 1,300 Br. The Association blames these increases on the new VAT levy.

The Association has appealed to the Ministry of Finance (MoF) for duty on imported oil and tax exemptions for local manufacturers but has yet to receive a response.

Abay Edible Oil, a new entrant in Bahir Dar, has a plant capable of producing 200,000 litres of soybean oil daily. However, a severe soybean shortage has hindered operations.

Esubalew Mengesha, the deputy manager, stated that the company sources less than half of the 30,000 quintals of soybeans it needs daily. Soybean prices have doubled to 6,000 Br per quintal in the past four months, cutting production capacity by 80pc. The company is lobbying for VAT removal, as it has sharply raised the final price of a five-litre bottle from 900 Br to 1,160 Br.

Esubalew also says transportation costs have risen by 100pc in recent months, further straining the company and the industry. “We are really struggling,” he said.

Local producers, who could meet half the country’s demand, face forex shortages and what they call unfair competition from importers. Duty-free conditions on both raw materials and imported edible oils favour importers, reducing the local producers’ market share to five percent.

Rising cooking oil prices have hit ordinary citizens hard. Tigist Adane, a teacher, noted that the price of a five-litre bottle in her area has climbed to 1,400 Br from 1,000 Br within a few months. This comes amid surging prices for other staples, such as teff, now at 15,000 Br per quintal, and onions, at 110 Br a kilogram.

“It’s hard to afford anything anymore,” she lamented.

The federal government’s new tax strategy seeks to boost VAT collections and raise the tax-to-GDP ratio by 0.5pc this year. This aligns with a broader tax reform plan agreed with the International Monetary Fund (IMF) in July, which targets a four-percentage-point increase in the ratio by 2027/28 through VAT reforms and other measures.

The government’s tax collection target for this year has risen to 1.5 trillion Br, including 170 billion Br from VAT.

Mohammed said recent price hikes stem solely from new tax levies. He told Fortune that his appeals to Ministry officials during discussions on the tax amendment bill were unsuccessful.

The Ministry introduced a directive last year to establish a tax management system to combat counterfeiting, track goods, verify stamps, and meet international standards.

Mulay Woldu, tax policy director at the MoF, stated that tax exemptions on imports were temporary measures during the pandemic when inflation hit 32pc. He argued there is no evidence local manufacturers can meet demand and that consumer-based policies are necessary. The Ministry has asked the Ministry of Industry (MoI) to study local manufacturers’ capacity.

“We cannot take policy measures without proper evidence,” Mulay said. He stressed the need to protect citizens from inflation caused by supply shortages or surges in demand.

A report by the Ministry of Trade & Regional Integration (MoTRI) shows annual demand for edible oil is around 1.1 billion litres, with local production covering less than five percent and imports accounting for 95pc.

Tilahun Abay, head of strategic affairs at the MoI, says that cooking oil is a critical food staple for low-income households and suggested it should be tax-exempt. “Assessments are being made on our side,” he said.

A US-based think tank, Urban-Brookings Tax Policy Centre says that VAT disproportionately impacts lower-income households. Ethiopian Customs Commission data shows 2.2 billion litres of edible oil were imported over the past three years, mainly from Djibouti, Malaysia, and Turkey, with 741 million litres imported last year.

Kassaye Ayele, customs tariff director at the Commission, says that essential goods like edible oil received VAT exemptions three years ago to counter inflation during the COVID-19 pandemic.

Tax expert Tadesse Lencho (PhD) warns that tax revenues often place a heavy burden on consumers, particularly fixed-income earners who struggle with inflation. He argues that imposing tariffs on imported edible oils is a flawed protective policy. It will not solve competitiveness issues and will increase agricultural produce prices, ultimately hurting exporters and consumers.

Tadesse stresses the importance of balancing tax policies. “Policies should prioritise consumers over manufacturers or importers,” he said, calling for thorough analyses of tax impacts to avoid ripple effects.

Finance Shortfalls Entangle Pharma Supplies, Distributions

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Pharmaceutical manufacturers have underperformed, failing to deliver 4.1 billion Br worth of medicines to the Ethiopian Pharmaceutical Supply Service (EPSS) over the past two years, according to a recent assessment. The Service’s performance rate for 2023/24 stands at just 51pc, leaving essential medicines like amoxicillin and paracetamol in short supply.

At a recent meeting to address the crisis, Solomon Nigussie, EPSS deputy head, criticised manufacturers for delivering less than half of the 100 types required. He said that the sector is characterised by issues such as missed delivery schedules, low production capacity, and poor performance, especially regarding the 80pc of medicines categorised as essential.

The EPSS issued a nine-billion-Birr tender four months ago for 14 local manufacturers to supply 100 types of medicines. Abdulkadir Gelgelo (PhD), EPSS director general, warned that missed delivery schedules would result in penalties. “Penalties will follow if delivery schedules are missed,” he said. He urged manufacturers to improve production capacity and delivery timelines.

Despite receiving up to 25pc price preference over international suppliers, local manufacturers have delivered only 47pc of contracted amounts. They face problems such as low production capacity, supply chain disruptions, and limited investment in research and development.

Manufacturers at the meeting cited financial constraints, high operational costs, and delayed payments from the EPSS as barriers to production. They also blamed fluctuating input prices, which further complicate efforts to meet demand and improve productivity.

Ethiopian Pharmaceutical Manufacturing SC, East Africa Pharmaceuticals Plc, Addis Pharmaceuticals Factory SC, and Cadila Pharmaceuticals have secured contracts through direct tendering to supply 10 types of medicines. The procurement process for restrictive tenders is set to conclude within weeks due to unresolved complaints from manufacturers.

Daniel Waktole (PhD), president of the Ethiopian Pharmaceuticals Suppliers & Manufacturers Sectoral Association (EPSMSA), says payment delays are affecting manufacturers’ working capital and their ability to deliver products on time. The lack of flexible financing has hindered the industry, according to him. The Association has submitted a letter to the Public Procurement Authority (PPA) and the Ministry of Finance (MoF) addressing price variation concerns.

In response, Abdulkadir acknowledged the difficulty of adjusting prices due to fluctuating raw material costs. However, he said that EPSS is negotiating with the Commercial Bank of Ethiopia (CBE) to provide credit to manufacturers. “Though preconditions must first be met,” he said.

Last year, Kilitch Estro Biotech Plc, an Ethiopian-Indian joint venture, secured a direct contract worth 522 million Br to supply medications to EPSS. Daniel Waktole (MD), also general manager of the company, noted that local pharmaceutical manufacturers have capacity but are hampered by persistent problems.

Tadesse Teferi (MD), CEO and shareholder of Africure Pharmaceuticals Plc and board chairman of the Association, said, “The industry is at a critical point, facing the possibility of collapse or revival.” He stated that issues like low productivity, outdated technology, and regulatory hurdles continue to disrupt the sector.

He also blamed tendering delays, payment bottlenecks, factory closures, and customs complications related to under- and over-invoicing.

Four months ago, the EPSS issued a tender to procure over nine billion Birr worth of products from local manufacturers through direct and restrictive tendering. The tender required local manufacturers to quote prices in Birr, while foreign suppliers could continue quoting in hard currencies. Although a new directive allowing local manufacturers to quote in foreign currency is pending, many have cited the difficulties in sourcing large amounts of foreign currency.

Established in 1947, the EPSS supplies drugs and medical equipment to 5,000 health institutions nationwide through 19 outlets. In the last fiscal year, it distributed medical supplies worth 51 billion Br, sourced from donations and procurement.

Program medicines, funded by the Ministry of Health (MoH), account for 70pc of the Service’s distribution, with a budget of 21 billion Br for 2023/24 fiscal year. These include 100 types of essential medications. The remaining 30pc, budgeted at eight billion Birr, cover revolving fund medicines for chronic disease treatments and routine medical supplies.

Ras Desta Memorial Hospital, serving half a million patients annually, is grappling with severe medicine shortages and rising drug prices. Teshome Hunde (MD), the hospital’s director, described the situation as strained and complex. He says that the hospital faces critical shortages of essential medications, particularly for treating non-communicable diseases, which are increasingly common among patients. Despite an annual procurement budget of 100 million Br, more than 50pc of the required medications remain unavailable, affecting patient care.

“Shortage of supplies is the main issue,” Teshome said.

Getasew Amare, a health economist, noted a large gap between demand and supply, hindering progress toward universal health coverage. “Resource and financing gaps remain a major problem,” he said.

Getasew also pointed to poor communication between the EPSS and health institutions, leading to procurement decisions made without proper market assessments. “End-user preference has played a minor role,” he stated.

He recommends the inclusion of professionals and policymakers with a thorough understanding of the health market to accurately assess demand and address supply issues. “Health sector governance remains a big problem,” he said.

Getasew worries about declining international funds, which previously covered 30pc of medical supply needs. This shortfall forces the government to shoulder the burden, creating financial strain. He urged strategic government investment, calling for increased health sector budget allocations and improved data management to aid decision-making.

 

New Law Regulates Organ Donation, Restricts Gifting

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A recently passed Health Service Administration & Regulation Proclamation legalises the donation and transplantation of organs and tissues, consolidating health service regulations under a single legal framework. It allows individuals to consent to donate their cells, tissues, or organs after death, either while alive or through a written will. Donors can revoke consent at any time before transplantation.

The law now mandates that organ donations be directed to the Ethiopian Blood & Tissue Bank Service.

Transplantations are permitted only when a medical board confirms no viable alternative to save or stabilise the recipient’s life.

The law prohibits the sale or gifting of cells, tissues, or organs. Harvesting is only allowed after professionals confirm the donor is biologically dead. If the deceased’s consent is unknown, a close relative may provide permission. In the absence of a relative, only the cornea can be harvested.

Living donations to next of kin are allowed with institutional consent. Donors must be legally capable, provide written consent, and pass a health assessment to ensure no risk to their life. Expenses related to donation and transplantation are excluded from being classified as payments or gifts. The use of organs or tissues obtained outside the legal donation system is strictly forbidden.

Ashenafi Tazebew (MD), director general of the Ethiopia Blood & Tissue Bank Service, says that, until now, no institution was formally responsible for overseeing organ donations. Transplants were mainly carried out in hospitals like St. Paul’s. He noted that the new law will help expand donations and collections. Ashenafi also hinted at the possibility of renaming the Bank and revising its bylaws in the future.

“We expect fewer people to travel abroad for transplants now,” said Ashenafi. He noted that Tiqur Anbessa Hospital has been sending 10 bone marrow transplant patients overseas monthly, costing 700,000 dollars. With the new proclamation, the hospital plans to start domestic bone marrow transplants.

“We can work towards heart transplants step by step,” he told Fortune. “But it requires a large financial investment and a strong human resource.”

The new legislation also includes rights and protections for health sector employees. It grants them priority access to healthcare services for work-related health issues. The government will fully cover health insurance contributions for public sector health workers.

However, Fikadu Mazengiya, executive director of the Ethiopian Midwives Association, voiced worries about the scope of the insurance, saying it may not cover cancer, transplants, or other treatments requiring foreign care. He pointed to the risks healthcare workers face, including disc injuries, radiation-related cancer, and infectious diseases, which also pose threats to their families.

Fikadu said that the lack of essential medical equipment and medicines increases indirect costs for healthcare workers. He stated that of the 347,000 healthcare workers in Ethiopia, about 3pc contract diseases from needle-related incidents.

“Healthcare workers are facing inhumane conditions,” he said.

A 2023 study revealed that 30.6pc of Ethiopian healthcare workers experienced needlestick and sharp injuries. Those in delivery and emergency units face sixfold and fivefold higher risks, respectively. Older workers are three times more likely to sustain injuries, while those logging fewer than 40 hours a week reported reduced risks.

The proclamation introduces new regulations on the use of cadavers for health services, research, and education. Cadavers can only be used if the deceased consented to donate their body while alive. If close relatives do not claim the body within seven days, it can be used for education or research after notifying the relevant government body.

Surgical expert Mesfin Alemayehu opposes using unclaimed bodies for research, arguing it conflicts with the country’s cultural practices.

The proclamation also regulates the use of animal parts or products in transplants, subject to Ministry of Health (MoH) approval. While animal or biotechnology-derived products are allowed, the law strictly prohibits cloning, copying, regenerating, or modifying human cells, genes, or body parts using technology. Mesfin criticised the use of animal body parts in transplants, citing cultural concerns and potential long-term health risks, including cancer.

The proclamation shifts the Ethiopian Food & Drug Authority’s regulatory oversight of health institutions and professionals to the MoH.

It also permits terminating life support in specific cases, such as brain death or irreversible medical conditions. Ventilator-assisted breathing can be discontinued only after confirming irreversible failure of cardiovascular or respiratory systems, or brain death.

The proclamation includes provisions for assisted reproductive technology (ART). ART services are restricted to legally married couples medically confirmed to be unable to conceive naturally. Couples who have a child through ART will be recognised as the child’s legal parents.

Endalkachew Tsedal, lead executive of health professionals’ regulation at the Ministry, said the next step is to issue directives for implementing the proclamation.

Tsegaye Berhanu (MD), director of the transplant department at St. Paul’s Hospital Millennium Medical College (SPHMMC), revealed that the hospital has performed nearly 170 transplant cases with a 98pc success rate. Due to capacity constraints, up to four kidney transplants and three liver transplants are referred overseas each month.

Tsegaye views the proclamation as a chance to expand transplant services and allow donations from non-relatives. He says it will protect donors from familial pressure. He stated the hospital plans to expand transplant capacity, supported by its four transplant surgeons, six kidney doctors, and two transplant surgery trainees.

He said that donation logistics which need swift transportation, possibly using helicopters could be difficult. “A national transplant database is critical,” he stated. The global average wait time for a kidney transplant is eight-and-a-half years, according to him.

Surgical medicine expert Mesfin criticised the provision that prevents donors from choosing recipients. “It should not be restricted,” he said. “It may encourage public donations.”

Tegbar Yigzaw (MD), president of the Ethiopian Medical Association, stated that the proclamation will remain ineffective unless the 2010 social medical insurance law is implemented.

Birhanu Ayika, head of the Ethiopian Health Insurance Agency’s Addis Abeba Office, said the agency is awaiting approval from the Ministry to start Social Health Insurance (SHI). He mentioned that while the insurance has been delayed, plans are underway to launch it within six months.

Insurance consultant Assegid Gebremedhin argues that SHI must cover overseas expenses and family members to provide adequate coverage. He said that improving workplace safety for healthcare workers would enhance service quality. “If healthcare workers feel safer, service quality will improve,” he said. “The movement for SHI began 20 years ago but was halted eight years ago.”

He urged the MoH to prioritise insuring healthcare practitioners. “Though costly for the government, the benefits are immeasurable,” he said.

Breaking the Chains to Protect the Vulnerable During Painful Reforms

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Adanech Abebie, the mayor of Addis Abeba, addressed last week a warm-up session for her party’s upcoming convention, urging cadres of the Prosperity Party – Prosperitians – to embrace what she described as “broad and inclusive” gains. Her assertions might have inspired the foot soldiers of the incumbent had it not collided with the realities unfolding across the country. But it manifests a contradiction between official narratives of transformation and the depressing figures documenting widespread deprivation that casts a pall over the leaders’ declarations of prosperity.

Despite policymakers’ complacent views about the dropping of the Consumer Price Index (CPI) rate and a purported 400 billion Br in fuel subsidies and 60 billion Br for social safety nets, ordinary Ethiopians continue to feel the sting of rising prices and deepening poverty. Aggressive economic policy reforms, including a floating currency, financial sector liberalisation, the opening of the trade sector for external competition, and the hurried removal of public subsidies, have led to soaring living costs for many.

A year remains before the complete phase-out of fuel subsidies is scheduled, and many fear that such rapid moves, coupled with the value-added tax (VAT) on previously exempt goods, risk undermining the welfare of low-income households.

In the four years beginning in 2020, the federal government’s education budget dropped from 123 billion Br to 55.8 billion Br, a 55pc reduction that risks hobbling human capital formation. The health budget’s decline, from 51 billion Br to 22.6 billion Br, amounts to a 56pc cut. Although these measures might shore up the federal government’s fiscal position and free resources for different priorities, critics of the Prosperitians see them as representing a misguided approach, especially in a country struggling to develop its human capital.

Policymakers insist these reductions will improve market efficiency and the equitable distribution of resources through targeted social programs. They tout this as part of a pragmatic macroeconomic policy approach.

However, the grim facts on the ground are hard to ignore. Once lauded for double-digit growth, Ethiopia now faces mounting evidence of deteriorating social conditions. The federal government’s pledges to “stabilise” or “streamline” budgets ring hollow to Ethiopians who confront the abrupt removal of fuel subsidies, rising commodity prices, and a tax regime and enforcement that burden businesses.

The most damning portrait of the country’s predicament appears in the 2024 Global Multidimensional Poverty Index, which notes that Ethiopia remains home to 86 million multidimensionally poor people, amounting to 7.8pc of the global total. The report finds that 83.7pc of the world’s multidimensionally poor reside outside urban centres, and Ethiopia illustrates this rural-urban divide. Close to 64.5pc of its rural population lacks essential necessities such as sanitation, cooking fuel, and adequate housing, making a mockery of official pronouncements of “inclusive prosperity.”

These numbers do not exist in a vacuum. They reflect the lived experiences of individuals who rely on subsistence farming yet lack electricity and clean water.

The northern regions, particularly Tigray Regional State, have seen their infrastructure destroyed by the civil war, pushing poverty rates even higher. Humanitarian aid is often unable to keep pace with the needs of displaced populations, where 44.2pc of Ethiopians live in households with children under five remain undernourished. Unicef reported that no less than nine million children remain out of school, driven away by conflict, violence and natural disasters.

It would be wise to acknowledge that this is a crisis that threatens to undermine the country’s long-term development as children bear the brunt of poverty. Close to 53.7pc of Ethiopia’s multidimensionally poor are minors, many of whom grow up without basic healthcare or education. In the six years beginning in 2015/16, the absolute poverty rate resurged by 10 percentage points to 33pc, an annual increase of nearly 1.6pc. It is a regrettable backsliding, especially pervasive in rural regions, where poverty soared from 25.6pc to 47.5pc.

Neither have urban centres been spared. Addis Abeba and other cities saw poverty rates climb from 14.8pc to 17.5pc. Meanwhile, inflation has surged at alarming rates, with Harari Regional State experiencing a 109pc year-on-year (YoY) rise in the cost of living between 2018 and 2022, and 85pc in the Oromia Regional State. The federal government’s push for flashy public projects does not appear to have benefitted the majority. According to the Ethiopian Economics Association (EEA), the Gini coefficient measuring inequality jumped from 32.8pc in 2015/16 to 39.3pc in 2021/22, uncovering that growth, however lauded, has been anything but inclusive.

The destruction of livelihoods in Oromia, Tigray, Amhara, Somali and Afar regional states due to wars and militarised conflicts, combined with stubborn inflation, has widened the gap between rich and poor. Conflicts have stymied economic expansion and discouraged investors who once viewed Ethiopia as an attractive frontier market. Foreign investors now see heightened risks, leading to capital flight and a decline in the foreign direct investment needed to fund poverty-reduction programs.

The ballooning need for humanitarian assistance, which over 21 million Ethiopians depend on, can prove how volatile the situation remains. The federal government’s attempts to repair the fiscal ledger through tax raises and subsidy withdrawals could inflict further pain on a population that has already endured more than its fair share of suffering.

The Homegrown Economic Reform Agenda, whose bill is paid by the International Monetary Fund’s (IMF) extended credit facility, amounting to 3.4 billion dollars, aspires to rectify macroeconomic imbalances, restore debt sustainability, and stimulate private-sector-led growth. The IMF’s prescriptions might stabilise the government’s balance sheets, but they may well do so at the expense of the most vulnerable.

The measures required to meet the policy goals impose heavy burdens on those least equipped to shoulder them. It could not have come at a more unlikely time when the country and its population face a difficult political and social fate.

A market-determined exchange rate is expected to exacerbate Birr’s depreciation, pushing inflation to what the IMF projects to 30pc to 35pc this year. Food inflation has picked up at 20pc for much of 2024, and further loss of ground by the Brewed Buck will only tighten the squeeze on household budgets. Although the authorities have earmarked 1.5pc of GDP for social safety nets, including cash transfers that amount to 0.4pc of GDP, doubts persist that these efforts can keep pace with the rising cost of living.

Removing fuel and fertiliser subsidies would particularly threaten food security in rural communities. The agricultural sector is already reeling from conflict and erratic weather patterns, and rising fertiliser costs would likely cut production and place more families at risk of hunger. A phased approach with expanded social safety nets might address this concern, yet policymakers seem reluctant to adjust the timetable.

Capital expenditures, meanwhile, have been slashed, jeopardising infrastructure projects that could have spurred equitable growth. At a scant 6.3pc last year, the tax-to-GDP ratio trails far behind the sub-Saharan average of 15pc. The federal government plans to increase it to 10.8pc by 2026 through reforms that may well hit low-income households hardest.

Whether the reforms can balance macroeconomic stability and inclusive growth remains to be seen. Liberalisation advocates claim it will bring transparency, better governance, and climate-smart investments, but the key test lies in protecting those perched precariously above the poverty line. Prime Minister Abiy Ahmed’s (PhD) administration has staked much on rebranding Ethiopia as a magnet for capital, but it should also ensure that austerity does not transform the country’s poorest citizens into collateral damage of economic orthodoxy.

Between 2016 and 2019, Ethiopia was one of seven African countries to achieve rapid reductions in poverty, a momentum derailed by war, conflict and global disruptions. The potential for renewal exists if policymakers prioritise social investments, rural infrastructure, and robust safety nets. Doing so might help restore trust in a government that once promised a renaissance but now faces a frowning reality. Whether Ethiopia will harness its natural resources and youthful population to reverse the alarming slide into more profound deprivation or remain trapped in a cycle of conflict and want is yet to be seen.

Despite its current travails, however, Ethiopia need not be doomed to perpetual hardship. Alternative policy paths do exist.

It is up to its contemporary leaders to secure debt relief from servicing costs that consume large portions of the country’s public revenue. Achieving this could open up space for social spending while redeploying resources from security budgets to health and education to better serve developmental goals. Yet, such approaches seldom tower discussions in the corridors of power or the boardrooms of multilateral lenders.

As Mayor Adanech issues rallying cries to party loyalists in Addis Abeba tout her government’s reforms, it is worth remembering that slogans cannot paper over hard data. Poverty waits for no one, and Ethiopia’s economic future is being shaped not by lofty declarations, but by the policies now put in place. The choices made now will no doubt resonate for years to come.

Roha Band Creates a Legacy Carved in Stone

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Some bands define a generation and leave a lasting mark, becoming anthems for their time. The Beatles, a renowned group from the 1960s to the late 1980s, hold the record for 180 million certified album sales. This band of twenty-somethings from Liverpool started their career in Hamburg nightclubs, with humble beginnings that gave no hint of their future greatness. John Lennon, Paul McCartney, Ringo Starr, and George Harrison became global icons, achieving unparalleled fame and success. Few bands can match their legacy.

Other legendary rock bands, such as The Bee Gees, Scorpions, and Nirvana, also shaped musical history. In a different genre, UB40, a reggae band from Birmingham, stood out. Despite reggae being dominated by Jamaican artists, UB40, led by Ali Campbell, brought their unique style to the genre. Growing up in a Caribbean immigrant neighbourhood, reggae was all they knew. Ali Campbell recalled that he and his brother did not discover other genres until high school. The band’s name came from the UK’s unemployment benefit form number 40, and their music defined my high school years in the early 1990s. UB40 were my favourite especially with their hit albums ‘’Labour of Love II’’ and ‘’Promises and Lies’’ which make me nostalgic for my high school days.

Seeing legendary bassist Giovanni Rico and keyboardist Dawit Yifru at the Africa Jazz Club transported me to the 1980s. During my childhood, the Roha Band dominated Ethiopian music. Well-dressed and highly skilled, they were ever-present on black-and-white TV screens, creating a soundtrack for a generation. Giovanni and Dawit, along with Selam Seyoum, Fekadu Amde Meskel, Ashenafi Awel, Yonas Degife, and Tekle Tesfagzi, were the core of this legendary group.

Roha’s impact went beyond music. They set a high standard of performance, technical skill, and discipline. Giovanni recalled how the band followed a strict code of conduct, covering dress, schedules, and work ethics. This discipline allowed members to balance rigorous schedules, including international tours, studio recordings, and university studies. Despite disbanding in the mid-1990s, Roha left behind a treasure trove of timeless music that continues to inspire.

Collaborating with Roha was a milestone for vocalists of the time. Icons like Ephrem Tamiru, Kuku Sebsibe, Tsehaye Yohannes, and Neway Debebe emerged during Roha’s peak, creating groundbreaking music. Veterans like Mahmoud Ahmed and Hirut Bekele also collaborated with the band on memorable albums and music clips, many recorded at Ethiopia’s sole TV station, ETV.

Roha’s music was the highlight of ETV’s popular variety show, “Hibret Tir’it.” The show, a mix of music, drama, and comedy, was eagerly awaited by families across Ethiopia. Everyone, including household staff, would gather to watch. It was a golden era when Roha’s music dominated albums, TV clips, and radio shows, setting an unmatchable standard.

In an interview, folk musician Elias Tebabel described how challenging it was to rehearse with Roha, but also how rewarding.

Like other legendary bands, Roha had humble beginnings, with members discovering their passion for music in unlikely circumstances. Giovanni Rico recalls how a gifted guitar sparked his long and fulfilling career. Selam Seyoum attributes his entry into music to singing in a church quartet during his teenage years. Other members share similar stories, none of which foretold the glory and dominance they would achieve as a team.

In a TV interview, some members credited Giovanni Rico as their role model, praising his selflessness, teamwork, and strong work ethic. Roha’s sheer volume of work was staggering; overnight performances, countless music albums, and studio recordings. Observers often wonder how they managed to achieve so much while performing with ease and grace. Commentators note that the band’s output seemed almost superhuman, pointing to their discipline, organisational skills, and, above all, their passion and love for music. Their story serves as a reminder that willpower and self-belief can lead to extraordinary achievements.

The band’s name, Roha, is inspired by the historic town of Lalibela, a UNESCO World Heritage site known for its rock-hewn churches. Roha sought to create a legacy that would endure through time. Giovanni Rico shared that the young band chose the name Roha as a symbol of their aspiration to leave an enduring mark.

Just like Lalibela’s breathtaking churches, including St. George and St. Mary, Roha’s music has withstood the test of time.

Unfortunately, many millennials seem unaware of the legendary Roha Band. It is saddening that a group with such phenomenal achievements is not celebrated as it deserves, fading into memory for those who lived through the 80s and 90s. A simple Wikipedia search provides little to no information about the band.

Roha Band’s legacy should be properly curated, celebrated, and archived for future generations. The band members, who contributed so much over decades, deserve recognition and honour for their work.

Tight Monetary Policies Risk Stifling Economic Growth, Undermining Business Confidence

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In a bid to curb inflation, which is still at double digits, and preserve financial stability, policymakers have implemented strict monetary measures that economists warn could dampen growth. The key components, such as benchmark interest rates, higher reserve requirements, and mandates on bond purchases, contain price increases but also threaten to dehydrate consumption and investments. An inflationary paradox is emerging, where overly tight controls slow economic momentum and job creation.

The Central Bank, adhering to a Keynesian view, keeps interest rates at 15pc to curb spending by making loans more costly. Banks should hold seven percent of deposits as reserves and maintain liquidity ratios of 15pc, further tightening credit. Lenders should allocate a fifth of their loan portfolios to government bonds to fund public projects. If consumers and businesses pare back spending and expansion in response, the economy risks sliding into stagnation before any inflationary benefit can fully materialise.

Already, consumers face rising living costs and reduced access to credit. More considerable expenses, like cars and housing, are often put on hold. Retailers report weaker sales, and restaurants see fewer customers. Service providers, from hairstylists to tech consultants, struggle to retain clientele as cash-strapped households cut discretionary spending. While these could help to quell inflation, they can inadvertently fuel higher prices if businesses reduce supply or raise fees to offset lost revenue. Such a policy can ultimately deepen the slowdown.

Seeking to alleviate the strain, the Central Bank lifted the annual lending growth cap by four percentage points to 18pc, offering banks a formal opportunity to issue more loans. Yet many bankers say high interest rates and liquidity constraints still make them cautious about fresh lending. Borrowers, too, balk at the cost of capital. Even with a higher lending threshold, few see an immediate investment surge. The climate remains constraining for entrepreneurs hoping to expand, as the spectre of expensive financing casts a long shadow.

Liquidity pressures mount across the financial system. Data show that 20 out of 29 financial institutions are strapped for cash, forcing them to borrow in the interbank market rather than lend. This shortfall means entrepreneurs face steeper hurdles when seeking credit for machinery, inventory, or payroll. With borrowing costs at an average 15pc, many firms scale back plans or pass higher expenses to customers, feeding cost-push inflation as the authorities try to bring prices down.

Such conditions create a vicious cycle. As businesses retrench, wages and hiring lag, weakening consumer spending. Households then tighten budgets further, compounding the economic slowdown. Meanwhile, faith in policymakers erodes if people see little improvement in living standards or job prospects. Although the Central Bank has liberalised the foreign exchange regime to lure outside capital, high interest rates and binding liquidity rules can undercut those efforts. Even exporters benefiting from more favourable conversion rates struggle if they cannot secure affordable financing to boost production.

Sectoral disparities become pronounced. Industries that do not rely heavily on bank loans, like certain cash-based retailers, may keep afloat, while capital-intensive manufacturers and agricultural producers, who need credit to buy equipment or expand, stagnate.

In other emerging economies, investors shifted to unregulated or speculative avenues when conventional lending dried up, sometimes fueling risky bubbles. Turkey’s experience with tight monetary policy saw production costs soar and inflation remain stubbornly high, a cautionary tale for Ethiopia if external shocks like higher global commodity prices exacerbate local pressures.

South Korea once deployed targeted financing to develop priority industries while fending off uncontrolled speculation. Ethiopia might pursue a similar strategy, directing loans to sectors like agriculture, manufacturing, and exports that can spur job creation and generate foreign currency. Brazil offers another example, cutting its benchmark rate from 14.25pc to 6.5pc when growth stalled. This shift revived consumer spending and business investment.

A moderate rate cut in Ethiopia could unlock capital, expand supply, and potentially moderate prices over time.

Policymakers could also refine the lending-cap framework. Instead of imposing a flat limit, they might tie the cap to indicators like GDP growth or unemployment. When the economy begins to falter, banks would have room to lend more freely, stimulating business activities. Another lever is lowering reserve requirements. Canada, for instance, sets a two percent requirement, supported by tight regulatory oversight rather than large capital buffers. Easing Ethiopia’s seven percent ratio during economic stress could unleash funds for loans without undercutting financial stability.

Mandatory allocations to government bonds also tie up substantial capital. Banks have to direct 20pc of their lending to Treasury securities and another one percent to buy bonds issued by the Development Bank of Ethiopia (DBE). Critics argue these rules sideline funds that could power private-sector growth. The Central Bank could follow the European Central Bank’s example by offering emergency loans to institutions under strain. During the eurozone crisis, the ECB pumped more than a trillion euros into banks, propping up lending and averting widespread failures.

Foreign exchange liberalisation could yield greater benefits if backed by tailored incentives for exporters, echoing South Korea’s tax breaks on exports. Those policies propped export growth, stabilised currencies, and built national reserves. A balanced approach is key. Reducing interest rates too much might unleash inflation, but a calibrated mix of monetary relief and structural improvements could expand production sufficiently to keep prices in check. Infrastructure investments, reminiscent of China’s road-and-rail expansions, might also slash logistics costs and raise productivity, stabilising consumer prices over time.

If consumers curb spending and businesses delay expansions, the economy risks a double bind: climbing prices and slowing incomes. Households feel squeezed by rising costs and uncertain wages. Many banks find the lending cap insufficient, citing hefty funding costs and bond mandates. Without more liquidity measures, conditions may worsen, especially if global commodities spike. Policymakers could enhance public confidence by implementing timely changes. Businesses worry that absent interventions might cause the economy to edge toward stagnation, undermining employment and growth prospects. Meanwhile, households confronting relentless price hikes may lose faith in official pledges to contain inflation.

Social Media as It Should Be

Posted on by Digital Editor

Mathematician Cathy O’Neil once said an algorithm is nothing more than someone’s opinion embedded in code. When we speak of “the algorithms” that power Facebook, X, TikTok, YouTube, or Google Search, we are talking about choices made by their owners about what information we, as users, should see. In these cases, “algorithm” is only a fancy name for an editorial line. Each outlet has a process of sourcing, filtering, and ranking information structurally identical to the editorial work carried out in media, except that it is largely automated.

Far more than its analogue counterpart, this automated editorial process is concentrated in the hands of billionaires and monopolies. It has contributed to a well-documented list of social ills, including large-scale disinformation, political polarisation and extremism, negative mental health impacts, and the defunding of journalism. Worse, social media moguls are now doubling down, seizing the opportunity of a regulation-free operating environment under Donald Trump to roll back content-moderation programs.

But, regulation alone is not enough, as Europe has discovered. If our traditional media landscape featured only a couple of outlets that each flouted the public interest, we would not think twice about using every available tool to promote media pluralism. There is no reason to accept in social media and search what we would not tolerate in legacy media.

Fortunately, alternatives are emerging. Bluesky, a younger social-media platform that recently surpassed 26 million users, was built for pluralism. Anyone can create a feed based on any algorithm they choose, and anyone can subscribe to it. For users, this opens many different windows onto the world, and people can also choose their sources of content moderation to fit their preferences. Bluesky does not use users’ data to profile them for advertisers. If users decide they no longer like the platform, they can move their data and followers to another provider without any disruption.

Bluesky’s potential does not stop there. The product is based on an open protocol; anyone can build on top of the underlying technology to create their own feeds or even entirely new social applications. While Bluesky created a Twitter-like microblogging app on this protocol, the same infrastructure can be used to run alternatives to Instagram or TikTok, or to create totally novel services, all without users having to create new accounts.

In this emerging digital world, known as “the ATmosphere” (so named for the underlying AT Protocol), people have begun creating social apps for everything from recipe sharing and book reviews to long-form blogging. And owing to the diversity of feeds and tools that enable communities or third parties to collaborate on content moderation, it will be much harder for harassment and disinformation campaigns to gain traction.

One can compare an open protocol to public roads and related infrastructure. They follow certain parameters but permit a great variety of creative uses. The road network can convey freight or tourists, and be used by cars, buses, or trucks. We might decide collectively to give more of it to public transportation, and it generally requires only minimal adjustments to accommodate electric cars, bikes, and even vehicles that had not been invented when most of it was built, such as electric scooters.

An open protocol that is operated as public infrastructure has comparable properties. Our feeds are free to encompass any number of topics, reflecting any number of opinions. We can tap into social media channels specialised for knitting, bird watching, or book piles or for more general news consumption. We can decide how our posts may or may not be used to train AI models, and we can ensure that the protocol is collectively governed, rather than being at the mercy of some billionaire’s dictatorial whims.

Nobody wants to drive on a road where the fast lane is reserved for Cybertrucks and the far right.

“Open social media,” as it is known, provides the opportunity to realise the internet’s original promise: user agency, not billionaire control. It is also a key component of national security. Many countries are now struggling with the reality that their critical digital infrastructure – social, search, commerce, advertising, browsers, operating systems, and more – is subordinated to foreign, increasingly hostile, companies.

But, even open protocols can become subject to corporate capture and manipulation. Bluesky itself will certainly have to contend with the usual forms of pressure from venture capitalists. As its CTO, Paul Frazee, points out, every profit-driven social-media company “is a future adversary” of its own users, since it will come under pressure to prioritise profits over users’ welfare.

Infrastructure may be privately provided, but it can be properly governed only by its stakeholders, openly and democratically. We should all set our minds on building institutions that can govern a new, truly social digital infrastructure.

There is nothing esoteric about our digital predicaments. Despite the technology industry’s claims, social media is media, and it should be held to the same standards we expect from traditional outlets. Digital infrastructure is infrastructure, and it should be governed in the public interest.

Ethiopia’s Stock Market Presents Hope Despite Shadows of Past Failures

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I am delighted that Ethiopia has finally inaugurated a stock market, half a century after the Addis Share Dealing platform closed.

My journey in this field began in the midst of the dot-com boom, when soaring valuations and widespread speculation piqued my curiosity. I followed share prices, pored over financial newspapers, and recognised that Ethiopia lacked a modern finance cornerstone. I championed the cause for years, contrasting Ethiopia’s predicament with countries boasting thriving exchanges and well-established institutions.

Today, I recount my story and offer cautionary advice to keep the Ethiopian stock market transparent, efficient, and free from undue government intervention.

While studying economics, I learned how stock markets have propelled prosperity since 1602, beginning with the Dutch East India Company’s issuance of shares to public investors. Britain drew on Dutch innovations, using private capital to fuel naval expansion, trade routes, and industrialisation. Two books – Niall Ferguson’s “The Ascent of Money” and “Empire” – shaped my outlook. These books demonstrate how financial markets underpin empire-building, catalyze economic reforms, and occasionally spark transformative social change.

In 2012, I returned to Ethiopia determined to investigate the share market’s potential. I designed a research project surveying multiple regulatory agencies, including the National Bank of Ethiopia (NBE), the Ministry of Trade, Addis Ababa University’s Law School, and prominent legal firms. Simultaneously, I approached share promoters such as Access Capital, Habesha Cement, Enat Bank, Tsehay Insurance, and Finot Health Service, seeking to gauge their appetite for expanding equity finance.

I also interviewed scores of private investors, fascinated by their varied motivations for buying shares. Officials at the NBE and the Ministry of Trade generously shared insights, while journalists described the industry’s many unresolved issues.

My research revealed that around 4.2pc of the GDP was locked up in unofficial share companies, a shadowy space rife with risks. Comparing these loosely regulated entities, licensed by the Ministry of Trade, with the more orderly financial sector overseen by the NBE, convinced me of the pressing need for a formal stock exchange. By 2017, I estimated that around 80 billion Br worth of shares had been sold, split between 30 billion Br in regulated finance and the balance in unregulated ventures. Many of the latter collapsed, though some remained viable, including Raya Brewery, Zebidar Brewery, and Habesha Cement. Others, like Hiber Sugar, Access Capital, Access Real Estate, and Addis Prefab, unravelled disastrously.

I proposed that a properly structured stock market would enforce stricter vetting of IPOs, demanding realistic projections rather than inflated returns. It would also mandate quarterly reporting, enabling transparency and preventing fiascos from festering until annual disclosures. My research turned up numerous conflicts of interest, including the 108 million Br tied up in litigation over Hiber Sugar, which unearthed the pitfalls of opaque governance.

A regulated exchange, I argued, could streamline capital-raising, reduce corruption, and encourage the professional oversight essential for Ethiopia’s economic modernisation.

Convinced of the system’s importance, I approached the NBE, the ministries of Trade, and Finance with my recommendations, hoping they would champion the cause. Yet the prevailing official perspective echoed the late Prime Minister Meles Zenawi’s dismissive remark equating the stock market to a casino. Scepticism took root in a culture where the leader’s words became dogma. Nonetheless, I pressed forward, co-hosting an investment conference with a Spanish firm specialising in frontier markets, where global private equity representatives repeatedly questioned how they could exit Ethiopian investments without a stock exchange.

Accessing international buyers or orchestrating trade sales is daunting in an emerging market setting, and the notion of building exit pathways through a stock market seemed almost self-evident. In these fora, I learned how deeply investors crave transparency and liquidity and how unwilling they are to commit large sums without a reliable exit mechanism. I also realised that many local business owners, hungry for capital, stood ready to tap into equity financing if only a credible trading platform existed. In my view, that gap stifled entrepreneurship and prevented Ethiopia from fully harnessing its economic potential.

Throughout my 12-year quest, I crossed paths with individuals campaigning for a stock exchange far longer than I had. One of them, Eyesuswork Zafu, offered astute guidance and tirelessly lobbied authorities to embrace modern financial structures. His dedication revealed that establishing a stock market in Ethiopia was not simply a technical matter but a political one, subject to shifting ideologies and entrenched scepticism. Now that the market has materialized, there is optimism that Ethiopia can follow in the footsteps of countries that have leveraged capital markets for enduring growth.

The test will be whether it remains dynamic, transparent, and investor-friendly. As the Exchange moves forward, I sincerely hope it avoids the pitfalls that plagued the Ethiopian Commodity Exchange (ECX).

When the ECX was unveiled, it promised to avert the market information gaps that its founding CEO, Eleni Gabre-Madhin (PhD), blamed for previous famines. Her influential TED Talk stressed how certain regions had surplus while others starved, implying that stronger market data could have saved countless lives. Yet, once launched, the ECX evolved into a state-centric apparatus that harmed coffee growers rather than helping them. By 2016, speciality coffee producers faced rigid categorisations like Jimma, Wellega, or Harar, preventing the direct buyer-seller relationships needed to earn premium prices.

I witnessed these distortions firsthand while working with the Dutch government at a speciality coffee conference. Experts pointed out that standard Ethiopian coffee sold for around 2.50 dollars a kilogram on global markets, whereas speciality varieties could command anywhere from eight to 16 dollars. Because the ECX lumped beans by broad regional origin, roasters could not contract specific growers for consistent flavour profiles.

Meanwhile, restrictive regulations on transporting exportable goods between regions demanded special permits, akin to controlling narcotics. A friend once said on a radio interview that this effectively turned valuable commodities into bureaucratic property, depriving farmers and traders of a fair and flexible marketplace.

Publicised as a groundbreaking achievement, the ECX gradually veered away from Eleni’s initial vision of bridging supply and demand to prevent starvation. In reality, no grains ever traded through the platform, only export commodities subject to government oversight. After Eleni’s contract ended, she formed Eleni LLC, backed by private equity, to replicate the ECX model across Africa. But in more liberalised settings without state backing, the concept quickly floundered, revealing the fragility of command-driven structures.

This should forewarn the risk that Ethiopia’s new stock market might stumble if political interference overshadows transparent trading and genuine price discovery.

History shows that Ethiopia once embraced market solutions without ceding autonomy. Emperor Menelik II, who apparently did not trade Djibouti for a railway, formed the Imperial Railway share company in 1897, raising capital by selling shares and bonds in Addis Abeba, Paris, Vienna, and London, eventually amassing 40 million francs. In 1906, the Bank of Abyssinia [no relation with the existing bank] similarly emerged through share sales, affirming Ethiopia’s capacity for market-driven financing.

Between 1960 and the 1974 revolution, the Addis Abeba Share Dealing platform enabled the creation of 14 banks and insurance companies. These precedents confirm that Ethiopia can benefit from a properly managed exchange, provided it remains a transparent marketplace rather than a vehicle for bureaucratic control. As we celebrate the launch of this new stock market, we should stay vigilant to ensure it enables genuine trading, spurs innovation, and safeguards investors’ interests.

Leads Lethal Legacy, a Poison We Choose to Ignore

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Lead is everywhere, often hiding in plain sight, in the water we drink, the air we breathe, the food we eat, our personal care products, and our children’s toys. Despite being a useful metal, it is highly toxic and difficult to detect. Its fumes and dust are odourless, and exposure to them does not immediately cause overt symptoms in most cases.

This is particularly worrying because exposure to and ingesting lead can negatively affect almost every part of the body. Recent research finds that exposure contributes to cardiovascular disease, killing millions worldwide. But while lead poisoning is responsible for more deaths annually than HIV/Aids and malaria combined, and more than tuberculosis, it receives a small fraction of the funding allocated to these better-known diseases.

The health effects are often irreversible and unequally distributed. For example, lead is especially harmful to children’s cognitive development, leading to lower IQs and behavioural problems. Today, one in three children worldwide has dangerous levels of the metal in their blood, and nearly all of them live in low- and middle-income countries (LMICs). This inequality in exposure accounts for more than 20pc of the learning gap between high- and low-income countries.

The annual economic losses from lead poisoning are enormous, amounting to around 6.9pc of global GDP. Healthcare for those sickened by the toxin, coupled with additional financing for special-education services to address the developmental and behavioural issues caused by lead poisoning, costs millions of dollars each year in the United States alone. Lead poisoning also reduces an individual’s lifetime earning potential, leading to lost tax revenue.

This makes it all the more important to reduce and eliminate lead exposure. The good news is that it is possible to detect lead in soil, spices, food, paint, cookware, and other solid materials using a portable X-ray fluorescence analyzer (pXRF), which provides near-instantaneous results and has already proven effective in many settings.

In Nigeria, health officials used pXRFs to help identify and clean up the source of a lead poisoning epidemic that killed more than 400 children, ultimately saving thousands of lives. An assessment of lead levels in consumer goods and foods used the devices to test samples in 25 LMICs, finding that 45pc of ceramic tableware, 52pc of metallic cookware, and 41pc of paint exceeded regulatory limits. The technology has enabled some governments to test the safety of toys and playgrounds, enforce lead-paint regulations in houses, and investigate whether lead exposure is the cause of health incidents.

Researchers using pXRFs identified dangerous levels of lead paint – which is still sold in many LMICs – in schools and playgrounds in Guyana.

But, very few LMICs currently use pXRFs to determine the sources of lead poisoning. Policymakers sometimes lack awareness that lead exposure is a major public health issue. Perhaps most importantly, these devices are expensive to buy and maintain, and training on how to interpret the data they produce remains limited.

What would it take to improve access to this valuable technology, so that LMICs can identify and eliminate the sources of lead poisoning that put their populations – especially their young people – at risk?

A working group comprising global lead-poisoning experts, practitioners, policymakers, and funders gathered in “Room 3” – linked to Sustainable Development Goal 3 for Good Health and Wellbeing – within the 17 Rooms Initiative. In our discussions about how to make pXRFs universally available by 2030, we agreed that the recently launched Partnership for a Lead-Free Future (PLF), supported by the United Nations Children’s Fund (UNICEF), is best positioned to bring together stakeholders to support such an initiative.

Regional hubs, centrally coordinated by the PLF, could be established to provide low-cost pXRFs, training for authorised users, and technical support – both in maintenance and data analysis – for governments, NGOs, and academic partners. With sufficient demand, the proposed hubs can negotiate directly with pXRF manufacturers to lower prices and tailor device design to ensure cost-effective and accurate screening for lead in different sources.

The PLF could thus roll out this technology on a global scale, a breakthrough that would serve as a mechanism for international and local organisations to work together to raise awareness among LMIC governments about the importance of lead poisoning. This could include setting clear protocols and guidelines for using pXRFs to screen for leads in different sources and to act upon the results.

When it comes to lead exposure, prevention is the only option, because there is no cure. Increased access to pXRFs could help us win the fight against lead poisoning, safeguard the health and future potential of millions of children and young people, and unlock billions of dollars in economic benefits.

AI Alone Won’t Save the Planet

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This year’s annual meeting of the World Economic Forum in Davos, where participants will address the theme of “Collaboration for the Intelligent Age,” comes at a critical juncture for the planet. Ecosystems are straining under the pressure of climate change, and the interconnected cycles that maintain freshwater availability, soil moisture, ocean health, and plant growth are spinning out of balance at an alarming pace.

At least 420 million hectares of forest globally have been lost to deforestation since 1990, causing biodiversity loss to accelerate and fuel climate volatility. Freshwater resources have declined so precipitously, owing to rising temperatures, groundwater mismanagement, saltwater intrusion, pollution, land degradation, and increased population density. Demand is predicted to exceed supply by 40pc by 2030. And, wildlife populations in freshwater habitats fell by 85pc between 1970 and 2020.

The paradox is that we continue to degrade the systems that sustain life on Earth despite knowing more about their fragility than ever before. In the search for solutions, we often look to technology – especially artificial intelligence (AI) – as a panacea. But AI alone cannot save the planet. Instead, we should ensure that AI complements, rather than replaces, human capabilities to realise its full potential.

While AI models can identify patterns, they often use incomplete or biased data, and thus lack important context. This is where “augmented intelligence” comes in. Augmented intelligence combines powerful algorithms with human knowledge and lived experience to ensure that these advanced tools account for cultural, economic, and ecological considerations.

For example, Indigenous communities have learned how to manage resources sustainably by tracking nature’s cycles and observing the environment for centuries. This expertise can help reveal subtle trends data fail to capture, ensuring that technology serves real-world needs. Using indigenous insights and scientific data has provided a more accurate picture of polar bear populations in Canada’s Northwest Territories, while an AI-driven model that factored in such traditional knowledge has helped Inuit communities in the Arctic identify new fishing grounds amid changing climate conditions.

But, indigenous populations are not the only ones with valuable insights. Local communities and private-sector actors, from smallholder farmers to multinational corporations, accumulate site-specific data when responding to droughts, adopting regenerative agriculture practices, investing in biodiversity projects, and decarbonising their supply chains. Sharing this knowledge, which reflects cultural traditions and economic realities and is enriched by human judgment, strengthens the data on which AI models rely.

Humans and machines learn from each other, creating a feedback loop that leads to more effective solutions.

Greater openness encourages trust, accelerating the adoption and refinement of AI tools. Before long, the willingness to share data, insights, and innovations will be seen as a mark of leadership and prestige, rather than a risk. Those who advocate data sharing will facilitate collective progress, demonstrating the cooperation and wisdom needed to guide us toward a safe and healthy planet.

Augmented intelligence should be at the heart of global strategies for biodiversity conservation and climate mitigation and adaptation. Policymakers can take steps to bridge the gap between digital innovators and local environmental stewards. Businesses can align their investments with nature-positive goals and share any resulting knowledge. Innovators can create accessible tools that take into account cultural contexts and input from communities, turning top-down interventions into agile, responsive, and collaborative efforts.

When political leaders and executives convene in Davos, they should acknowledge that technology is not a cure-all for climate change and biodiversity loss. Without human guidance – bolstered by our capacity for empathy, cultural understanding, and ethical reasoning – it will be impossible to unlock AI’s potential. In the Intelligent Age, coupling advanced tools with lived experience will enable us to transcend the zero-sum mentality that pits people against machines.

Acts of Kindness Create Lasting Legacies

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A couple of weeks ago, I attended a wedding that felt like more than a union of two people. It was a moment of convergence, a celebration of love and a tribute to the enduring legacy of a dear friend who is no longer with us.

The experience was an important reminder of how one person’s kindness can leave a lasting impact, shaping lives even after they are gone.

The wedding was small and intimate, filled with close family and friends. There were no grand displays or extravagance. Instead, the atmosphere radiated love, joy, and authenticity. The couple, deeply in love, exchanged vows with eyes full of shared dreams and promises.

Their union was more than a celebration of their relationship. It was a tribute to the quiet yet transformative influence of my late best friend. Two years ago, she introduced them to each other, igniting a connection that grew into a lifelong commitment.

As I watched, my thoughts kept returning to my late friend who was a medical doctor. Their gratitude for her role in their journey was apparent, and it touched everyone present. In that moment, I realised something profound: the goodness of a kind heart does not fade. It continues to ripple through the lives of others, creating lasting connections.

She passed away a year ago, far too young, in her late twenties. But her wisdom and compassion went far beyond her years. She had a rare gift, an ability to see what others missed, to sense potential connections, and to gently guide people toward paths they had not yet discovered.

This wedding was an example of her quiet genius at work. She saw something in this couple before they saw it themselves. She brought them together not with grand gestures, but through subtle encouragement and support, a skill only someone with empathy could offer.

Her gift was not just in connecting others; it was in how she lived her own life. She was empathetic, resilient, and deeply intentional. She uplifted everyone around her. She listened without judgment, made time for people, and offered advice that felt like it came from someone with the wisdom of a hundred lifetimes.

At the wedding, her presence was felt everywhere, even though she was not physically there. It was in the couple’s smiles, in their words of gratitude, and in the unspoken bond shared by those of us who knew her. We were not just celebrating their love story, we were honouring her legacy.

Though she lost her battle with breast cancer at a young age, her kindness and wisdom remain alive. They live on in this couple and in their union.

The experience left me reflecting on the meaning of legacy. Too often, people think of it in terms of career milestones, financial success, or public recognition. But this wedding reminded me that the most profound legacies are often the simplest. They are found in the lives people touch, the connections they nurture, and the love they give freely.

She did not leave behind an impressive resume or a string of accolades. What she left behind was far greater: relationships strengthened by her kindness, meaningful actions, and memories that push me and others to be better versions of ourselves.

Her life is a reminder that goodness matters. It endures. It leaves a mark. It lives on in ways people may never fully see or understand.

As the evening unfolded, I was overwhelmed with gratitude. Being part of this wedding felt like more than an honour; it was a gift. It was a moment to witness the beauty of love, the resilience of memory, and the enduring power of one person’s actions.

I thought about how often people underestimate the impact they have on others. She likely never imagined that her simple act of introducing this couple would lead to such a profound outcome. She could not have known that, a year after her passing, we would all gather to celebrate not just a marriage but also her legacy.

This realisation filled me with a renewed sense of purpose. It reminded me that the small, everyday choices people make, the kindness they show, the encouragement they offer, the connections they foster, can ripple far beyond what they see. They may never fully know the extent of our impact, but that does not make it any less important.

As I left the wedding, I felt a deep sense of peace. My friend’s absence is a wound that will never fully heal, but it is softened by the knowledge that her life continues to matter. She taught me and others that what I leave behind is not measured by how much people accomplish but by how deeply they care, how freely they give, and how intentionally they live.

Her absence was keenly felt that day, but so was her presence.

Her life, though short, is a reminder that what truly matters is not how long people live but how they live. She showed me that wisdom is not counted in years but in how people treat others, how they show up for those they care about, and how they leave the world a little better than they found it.

Media Coverage of Africa Skews Towards Negativity

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My recent search for news about Africa revealed a frustrating trend: an overwhelming focus on conflict, death, and tragedy. While some business stories appeared, negative reports dominated the headlines.

This imbalance creates a narrow and incomplete understanding of the continent. It is not just about sensationalism; it points to a systemic issue.

On major media platforms, at least three out of five stories about Africa highlight conflict, instability, or humanitarian crises. Such coverage damages Africa’s image, obscures its progress, and impacts the aspirations of its people.

This bias stems from the “if it bleeds, it leads” mindset common in global newsrooms. Stories of disaster and conflict draw higher engagement, perpetuating a cycle where negative narratives overshadow stories of growth.

International media outlets, with limited local presence, often rely on brief visits or partnerships with local sources, leading to shallow reporting.

This approach fails to capture Africa’s complexities or its advancements in technology, entrepreneurship, arts, and culture.

The framing of African stories often reflects a Western perspective. News agencies focus on issues that resonate with their audiences, reinforcing stereotypes of Africa as a continent in perpetual crisis.

Positive developments are ignored, while the lack of diversity in these newsrooms amplifies the problem. Without cultural understanding, coverage becomes homogenised and inaccurate, missing the rich nuances of African societies.

The sheer diversity of Africa complicates balanced reporting. With 54 countries, each with its own history, culture, and socio-economic context, generalisations are inherently flawed.

Positive news in one region may be irrelevant or even negative in another. Economic growth in a specific sector might not improve living standards for most people, while political reforms in one country could be overshadowed by conflict elsewhere.

A lack of local resources and infrastructure for producing and sharing news further complicates the issue. Many African countries struggle with limited technological and financial capacity to tell their own stories. This reliance on international media often leads to biased reporting and limited representation.

Investing in local media, training journalists, and improving digital infrastructure is crucial for amplifying African voices and ensuring positive stories are told.

The global portrayal of Africa as a continent in perpetual crisis deters investment, and hampers development.

From developments in fintech and renewable energy to vibrant artistic and cultural achievements, many positive stories remain untold.

Social media has created new opportunities to share these narratives, offering a platform for diverse voices outside traditional media channels. However, it also poses challenges, such as misinformation and the need for reliable fact-checking.