The Defiant Engineer Steering Ethiopian Airlines Through Turbulent Times, Mohammed Ahmed Dies Aged 94

Eid al-Fitr was his favourite holiday. Mohammed Ahmed delighted in distributing chocolates to children whenever the festive day arrived.

For him, it was a small but meaningful gesture that bridged generations and nurtured bonds with loved ones. Over the years, his tenure at Ethiopian Airlines provided access to a variety of sweets from across the globe, which he amassed meticulously. If his stash dwindled, he depended on relatives living abroad to replenish it, ensuring his tradition would not be interrupted.

Yet Mohammed was far more than a curator of global confectioneries. He served as Chief Aeronautical Engineer (CAE) and eventually became the Chief Executive Officer (CEO) of Ethiopian Airlines, presiding over a particularly difficult chapter in its history from 1980.

He was born, by official records, in 1932, though he shaved off two years from his age to meet the enlistment criteria of the Ethiopian Air Force in 1950. That slight act changed the trajectory of his life, granting him entry into a world of aviation, maintenance, and operational safety, fields he would later master and use to guide Africa’s largest and most revered airline to steady success.

His upbringing in Harar, under the watchful eye of his father, Ahmed Bomba, a respected trader, laid an early foundation of responsibility. He began his education at an Islamic school, cultivating intellectual curiosity and discipline. A degree in aeronautical engineering from Saint Louis University in the United States followed, equipping him with the technical acumen that was then a rarity in Ethiopian aviation.

His children — Khalid, Omar, and two others — speak of him as a figure who was strict but scrupulously fair, a father who instilled in them the same rigour he displayed professionally. They ascribe this iron discipline to the rigours of his military training, which shaped his outlook on work and family alike.

Away from the office, Mohammed harboured a deep affection for chess, a pursuit that mirrored his strategic mind. He would often be found playing at a cafe near the old Agip gas station on Africa Avenue (Bole Road), dissecting moves with the same precision he applied to aircraft safety checks. His children and grandchildren still recall how he outmanoeuvred nearly every human opponent, though the computer elicited his particular ire. Once bested by software, he would exhibit a flash of frustration only to double down and attempt to anticipate the machine’s strategies.

“He got furious at that,” they fondly remembered.

By the 1960s, Mohammed’s expertise made him a linchpin at Ethiopian Airlines, first as an engineer, then as regional manager in New York, and later as CEO. The era in which he assumed the leadership helm was hardly auspicious. The military-Marxist regime, then known as Derg, ruling Ethiopia after 1974, exerted persistent pressure to edge the airline with Soviet preferences. Most notably, the pressure of replacing the existing American-made fleet with Soviet aircraft loomed. Many believed the shift was inevitable, given the Derg’s pivot towards the Eastern Bloc.

But, Mohammed resisted forcefully, insisting that such a move would compromise safety and service quality. That instance of defiance proved momentous. Ethiopian Airlines continued with its fleet of Boeing-built planes, earning a reputation as “an island of capitalism in a sea of communism.”

Contemporaries attested to his unwavering commitment to excellence.

Girma Wake, who also served as CEO, admired Mohammed’s strategic vision and integrity. He recalled how Mohammed quit cigarettes in a single and decisive stroke. He resisted a pressure to join the ruling political party, the Workers Party of Ethiopia (WPE) actions that were considered risky at the time. He made difficult decisions that few wished to shoulder. He reduced the workforce by 20pc, a controversial and indispensable move in forging a leaner organisation equipped to compete internationally. Indeed, Girma credited Mohammed with laying the groundwork for what Ethiopian Airlines ultimately became, a global carrier with routes that now touch nearly every corner of the world.

“Without those moves, Ethiopian Airlines wouldn’t be what it is today,” he said.

Fellow colleague and onetime CEO Bisrat Nigatu echoed these sentiments, noting Mohammed’s eagerness to modernise and streamline. Under his watch, Ethiopian Airlines stabilised its finances, returned to profitability, and acquired the wide-body aircraft that heralded its transition to modern aviation. Bisrat recalled the arrival of the Boeing 767 was preceded by weeks of suspense, promotions proclaiming “767 is Coming” generating buzz throughout Addis Abeba.

Others remember Mohammed his profound conscious of inclusivity, believing that women deserved more place in an industry long defined by male expertise.

Assefa Ambaye, a colleague who grew to become a close friend, noted Mohammed’s willingness to open management and technical positions to women, insisting that ability, not gender, be the determinant of advancement. He was equally zealous about preserving the airline’s standards. He was remembered as a “walking leader,” who was rarely found in the office but often inspecting workstations and chatting with employees, from gardeners to technicians.

Omar, one of his sons, recalled a day when Mohammed took it upon himself to clean a bathroom at work, determined to exemplify the quality and cleanliness he expected from others.

“He led by example,” he said.

After leaving Ethiopian Airlines, he served as Secretary General of the African Airlines Association, championing the cause of African carriers on an international platform. Those efforts earned him a reputation as a pioneer far beyond Ethiopia’s skies. Throughout his career, he consistently rejected perks that he deemed unethical, such as government land grants, preferring instead to finance his own ventures. For his family, it was a mark of his integrity.

“He was a man of ethics,” said his other son, Khalid, who came to serve as a founding CEO of Ethiopia’s Agricultural Transformation Agency (ATA).

In retirement, he remained characteristically active.

Long walks became a daily ritual, and the pension in his right pocket was often distributed to those in need. He died on November 25, 2024, and was laid to rest at Kolfe Muslim Cemetery on St. Phillipos Road. His wife, Fethia Ahmed, has vowed to continue this habit, an apt embodiment of the generosity for which he was renowned.

Illegal Trade Threatens Export, Tobacco, Pharma Industries

Ethiopia’s key industries are battling the contraband trade. Leaders from tobacco, coffee, livestock, and pharmaceutical sectors have called for urgent government intervention to combat the threat.

The economic toll of contraband trade was highlighted during an anti-illicit trade summit organised by the Ethiopian Chamber of Commerce & Sectoral Associations (ECCSA) two weeks ago.

Among the hardest-hit sectors is the National Tobacco Enterprise (NTE), the country’s tobacco monopoly.

Contraband tobacco products now claim 53pc of the market, eroding the position of the Enterprise. According to Yayehyirad Abate, the Enterprise’s corporate affairs director, smuggled tobacco, mainly from the UAE and Yemen, dominates eastern parts of the country like the Somali Regional State and Dire Dewa. The illicit trade costs the country over 4.8 billion Br annually in revenue, according to Yayehyirad.

Yayehyirad told Fortune that contraband tobacco is distorting the market, stifling domestic industries, and discouraging legitimate business operations.

The foreign exchange rate float has doubled raw material costs, forcing the Enterprise to raise cigarette prices by 100pc to 120 Br per pack. Meanwhile, unregulated contraband products continue to undercut the market.

The Enterprise, operational since 1941, has seen a 65pc decline in sales within four months, reducing operations to one of its five production lines. NTE produces three cigarette brands, Nyala, Winston, and LD, with an annual output of three billion sticks, mostly sold in Addis Abeba.

“The Enterprise is struggling,” Yayehyirad said, citing inflated costs, taxes, and contraband competition as the primary reasons.

According to the United Nations Development Programme (UNDP), the manufacturing industry’s share of GDP has been declining recently, only contributing 4.6pc in 2023, decreasing from  5.9pc in 2022.

Agriculture, a cornerstone of the country’s economy, is facing serious problems. Coffee which accounts for one-third of Ethiopia’s foreign exchange earnings is under siege.

Cheru Koru, market intelligence head at the Ethiopian Coffee & Tea Authority (CTA) stated that export-grade coffee is being illegally sold locally due to rising domestic demand and poor production control.

“As local demand surges, so does the illegal coffee trade,” Cheru said.

Ethiopia produces 800,000tn of coffee annually but exports only 391,000tn. Last year, 775tn of export-grade coffee worth 103 million Br was seized in the domestic market.

Coffee exports have remained around one billion dollars annually for years, but last year it hit a record 1.43 billion dollars from 391,000tn.

However, problems persist, including a low yield of 7.5qtl per hectare and export diversions causing disputes as buyers receive less than contracted amounts. Cheru attributed these issues to rising local demand, stagnant production, and insufficient control at checkpoints from production areas to export points.

Gizat Worku, general manager of the Ethiopian Coffee Association (ECA), stated that export-grade coffee, classified as grades one to five, is being illegally sold locally. He said that while 27pc of irrigable land in Ethiopia is suitable for coffee cultivation, underutilisation has resulted in inadequate production to meet growing domestic demand.

Illicit pharmaceutical trade is jeopardising public health, raising costs, and undermining legitimate businesses. According to Worku Bedada, vice president of the Ethiopia Pharmaceutical Association (EPA), this illegal activity contributes to drug-resistant strains, reduces the effectiveness of legitimate medicines, and tarnishes the reputation of healthcare facilities.

In Gambela Regional State, 75pc of malaria medications were unregistered,  with drugs intended for public hospitals being diverted and sold illegally. The Ethiopian Food & Drug Authority (EFDA) seized illegal medicines worth 29.17 million dollars last year.

Globally, the counterfeit pharmaceutical trade is estimated at 200 billion dollars, causing half a million deaths annually in sub-Saharan Africa alone. In Africa, approximately 23pc of pharmaceutical imports are considered substandard or illicit.

Dereje Duguma, state minister for health, recently voiced concerns about the rise of counterfeit and substandard medicines, posing a serious threat to public health.

Ethiopia relies heavily on imports to meet its pharmaceutical needs, with over 85pc of its market supplied from abroad. India (22pc), the Netherlands (20pc), and Belgium (13pc) are the largest source countries.

The livestock sector remains heavily impacted by contraband trade. Industry leaders point to the absence of technology-backed control mechanisms near borders and the poor quality of animal feed as major problems.

Despite having Africa’s largest livestock population, with 66 million cattle, 38 million sheep, and 46 million goats, the sector underperforms. Alebachew Nigusse (PhD) of Ethiopian Enterprise Development attributed this to illegal exports, poor value chains, weak regulation, a lack of quarantine centers, and limited transport infrastructure.

“There is no sustainable supply of livestock,” he said.

Nearly 120 million Br worth of live animals were seized last year. Pastoralists, lacking market access, sell livestock at low prices, fueling contraband trade, according to Alebachew.

However, Kassahun Gofe (PhD), Minister of Trade & Regional Integration (MoTRI), expresses optimism, pointing to a surge in export earnings from livestock over the past five months, which reached 20 million dollars, exceeding the previous fiscal year’s total. Key livestock export destinations include Djibouti, Oman, Yemen, and Saudi Arabia.

Kassahun stated that a new trade policy expected to be ratified this fiscal year is under review to incentivise legal traders and strengthen enforcement.

Kassahun stated that contraband traders, emboldened by high profits, have deeply infiltrated the economy, evading regulations and law enforcement.

Contraband trade accounts for 18pc of Ethiopia’s GDP, with 17 billion Br worth of goods seized last year, up by seven billion Br from the previous year. Over the past five months, the Ministry cracked down on nearly 108,000 illicit traders, suspending their licenses.

“It’s continuously growing and bleeding the country,” Kassahun said.

Kelifa Hussien, general manager of the Meat Processors & Exporters Association (MPEA), voiced frustrations with the growing livestock contraband. He said that the government should set floor prices aligned with international standards to support livestock exporters.

Jemal Ali (PhD), a trade researcher at Jigjiga University, identified Meiso, an eastern town, as a major hub for contraband trade. He stressed the need for community involvement and public awareness to combat illegal trade. He warned that counterfeit goods discourage economic innovation and erode trust in formal markets.

Jemal recommends bilateral and multilateral cooperations to address cross-border smuggling.

 

 

Alleged Shareholder Sues Sunpay, Demands Dissolution

An alleged shareholder of Sunpay Solutions S.C., Bruck Fikre, has filed a lawsuit seeking the recovery of his claimed shares, originally valued at 1.3 million Br. The legal action follows a series of operational failures and internal disputes that culminated in the National Bank of Ethiopia (NBE) revoking Sunpay’s payment system operator license.

Sunpay Solutions, a fintech subsidiary of Sunshine Investment Group, was licensed in January 2022 to operate as a payment gateway and provide point-of-sale (POS) machine services. The license came with strict conditions, including a two-month pilot period to implement required technology, establish policies and procedures, and train board members and management on payment systems.

Sunpay failed to meet these requirements, leading the NBE to revoke its license on August 27, 2024. The central bank had requested an explanation for noncompliance in June 2024, but Sunpay did not respond.

The NBE cited multiple violations of the National Payment System Proclamation and related directives. Sunpay did not commence operations, appoint a Chief Executive Officer, or renew its license. Bruck claimed that the company also failed to conduct shareholder meetings as required by the Commercial Code of Ethiopia. The central bank mandates a physical office, report on its pilot program, or request an extension for the pilot period.

Despite a letter attached to the license identifying Kirubelawit Sahilu as the CEO, Sunpay did not fulfill its obligations, prompting both regulatory action from the central bank and legal challenges.

Sunpay Solutions’ internal and regulatory troubles have deepened as an alleged shareholder Bruck has filed a lawsuit demanding the company’s dissolution. The company failed to hold required board meetings and regular general assemblies, as mandated by business law, according to Bruck. Companies are legally required to hold at least one general meeting within four months of the financial year’s end.

Bruck claims the lack of meetings has jeopardised Sunpay’s operational stability and financial transparency. He argues this failure has hindered his ability to “safeguard his rights as a shareholder”, including access to information about the status of the company’s POS machine sales.

Sunpay Solutions was established with an initial capital of 13.47 million Br, divided among ten shareholders, each contributing varying amounts between 260,000 Br and 1.95 million Br. Key shareholders include Samuel Tafese, president of Sunshine Investment Group, alongside other members of the Tafese family and entities like Prince Trading. Each share was valued at 1,000 Br, with Bruck allegedly purchasing 1,300 shares for 1.3 million Br as a founding member.

Despite obtaining its license in January 2022 after applying in October 2020, Sunpay has faced persistent issues. Bruck claimed that the company has never paid dividends, as required by law, after accounting for taxes, reserves, and other liabilities.

Bruck’s lawsuit, filed at the Federal First Instance Court Commercial & Investment Arada District Bench, seeks the dissolution of Sunpay Solutions. He has demanded the liquidation of company assets, with proceeds distributed to shareholders based on the results of an independent audit. If dissolution is not legally feasible, Bruck has requested for a cash buyout of his shares and the reimbursement of legal fees.

Ethiopia’s regulatory environment for payment system operators has seen major changes. In 2022, the central bank introduced a directive allowing non-financial institutions to provide payment operator and instrument issuer services, roles previously exclusive to banks. This change spurred private sector interest in digital payment gateways, with Sunpay Solutions among those seeking to capitalise on the opportunity.

The NBE has strict rules for revoking operator authorisations. Licenses can be cancelled if obtained through false information, if operators violate conditions, repeatedly commit faults, fail to address shortcomings, do not start operations within 12 months, or become insolvent.

Operators facing revocation must submit a written response within 30 days. Failure to do so or an inadequate response leads to license cancellation. The NBE may also suspend authorisations if operators fail to comply with regulations or pose a risk to financial stability.

The case involving Bruck and Sunpay has been adjourned to January 20, 2025, when four witnesses, including alleged shareholder Bruck, will testify.

Plastic Ban Fuels Environmental Hope, But Bagging Trouble

 

Plastic manufacturers are pushing back against a bill banning single-use plastic bags, warning it could upend their industry, eliminate billions of Birr in revenues, and force more than a million workers out of jobs.

The bill, currently under review in Parliament, follows the Council of Ministers’ recent approval of a draft proclamation to manage solid waste, setting the stage for consequential changes in an industry that has long relied on the affordability and convenience of plastic bags. If the law is enforced within the proposed six-month window, no less than 180 manufacturers, importers, distributors, and even individual users will face severe penalties, from steep fines to imprisonment.

If the bill passes, individuals found using banned plastic bags may be fined between 5,000 Br and 10,000 Br, while manufacturers and retailers could be hit with fines from 50,000 Br to 200,000 Br and face imprisonment of up to five years. Federal authorities have also placed a spotlight on producers and retailers of bottled water, requiring them to establish collection and recycling systems. Regional environmental protection offices would be mandated to oversee enforcement, a responsibility officials say is essential to curb widespread pollution and address the negative ecological impact of plastic waste.

The draft law’s restrictive timelines further compound industry fears.

Tilahun Abay, head of strategic affairs at the Ministry of Industry, has expressed scepticism about the six-month grace period, which he describes as too short. According to Tilahun, industry players need more time and resources to develop acceptable alternatives. He cited countries that have replaced plastic with paper or biodegradable materials. However, he acknowledged that such transitions do not occur overnight and require capital investment, workforce training, and standardised regulations.

Many in the plastics manufacturing industry say they were blindsided by the speed of developments, citing inadequate consultation and a lack of nuanced consideration for the diverse ways single-use plastics are employed.

The Ethiopian Plastics & Rubber Manufacturers Association (EPRMA), representing more than 500 producers, has struggled to secure compromises within the current version of the draft proclamation. Its leaders argue that a sudden and sweeping ban risks driving the industry underground, prompting illicit production and smuggling rather than curbing plastic waste. The Association claims the plastic sector contributes over 60 billion Br to the national economy annually, bringing in around 20 billion Br in government revenue, making it a pillar of manufacturing and trade.

Manufacturers and Association officials warn of a domino effect if the ban is enacted without changes, including mass layoffs that could aggravate unemployment and poverty.

Mintesinot Lemma, president of EPRMA, who criticised the authorities for moving ahead with the legislation without adequate consultations, disclosed that 200 manufacturers would be at immediate risk of closure.

“We’re shocked to hear the proclamation had been sent to the standing committees,” he said.

He had submitted a letter to several federal agencies, including the ministries of Industry and Irrigation & Lowlands, echoing these concerns. Mintesinot recalled sending a letter to the Ethiopian Environmental Protection Authority (EPA) when the initial bill was introduced two years ago, only to discover that the draft had advanced to Parliament’s standing committees without incorporating the Association’s concerns.

“The scope of the proposed ban is particularly problematic because single-use plastics encompass not just shopping bags but also forks, spoons, and other packaging materials vital for preserving and distributing grains, sugar, and other basic goods,” he told Fortune.

Industry leaders argue that the lack of viable replacements could increase consumer prices and encourage rampant smuggling of cheaper, unregulated plastic products. EPRMA leaders have petitioned the authorities that if they proceed without changes, manufacturers be permitted to lay off employees without compensation, exit their businesses without penalties, and be allowed to have the write-off of any outstanding debts. They argue that such measures could cushion businesses forced to close because of the ban.

Several manufacturers, however, are attempting to get a head start on compliance.

Seelemaye, a plastic bag producer led by CEO Yared Tewabe, is planning to manufacture degradable polypropylene bags. Yared believes that while the intention behind the bill is laudable, not all plastics are created identically. A total ban fails to differentiate between single-use shopping bags and more specialised plastics, such as certain types of packaging. He advocated for standardising bags and incentivising recycling efforts to maintain a market for raw materials and the labour force.

“There is no paper bag sold under 20 Br in the market currently,” Yared said.

Critics of the bill say a more nuanced approach would restrict particularly thin plastic bags, viewed as the most difficult to recycle, rather than eliminating all single-use items. Others urge legislators to recognise the robust recycling network that has grown around plastic manufacturing.

Industry leaders estimate recycling saves roughly 10 billion Br in foreign exchange annually by transforming plastic waste into new products. Those who collect, sort, and supply recyclable materials form a vast informal workforce that some believe could disappear if single-use plastics are banned outright. The Association estimates around one million people benefit from plastic recycling, from small-scale collectors to large processing facilities. Industry leaders caution that dismantling this ecosystem might eliminate livelihoods and cause unintended economic harm.

Despite these protests, supporters of the ban within the government stress that unchecked plastic usage poses long-term dangers to agriculture, water sources, and public health. During a Parliamentary hearing, Tesfaye Bango (MP) argued that plastic pollution already undermines agricultural productivity and contaminates water resources. According to Tsefaye Beljige, chief whip of the ruling Prosperity Party (PP), Ethiopia’s rapid population growth, urbanisation, and economic development have accelerated the consumption of plastic bags, aggravating an already serious problem.

The EPA has developed a 10-year strategy identifying the need for a full-scale ban on single-use plastics and strict recycling mandates for other plastic types.

For Wasihun Alemu, head of urban waste management at the EPA, plastic waste has reached “almost unmanageable” levels. He recalled the historical reliance on fabric—and plant-based bags locally known as “Zenbil,” urging that returning to such practices could reduce plastic pollution.

“The environmental and health impacts of plastics outweigh business benefits,” he said.

However, some experts question whether plastic alternatives are truly more environmentally friendly. Sisay Kifle, a plastic chemistry specialist, argues that certain biodegradable or paper-based substitutes could have worse environmental effects, given their production processes and limited recyclability. He is particularly sceptical about degradable polypropylene bags, which he says break down too quickly, restricting extended reuse and recycling.

Sisay urged policy initiatives that make plastic bags recyclable and require stricter waste management rather than a sweeping prohibition.

“Ethiopia’s overall plastic consumption is relatively small on a global scale,” he said. “The evidence of plastic’s damage to agriculture has not been comprehensively studied.”

Those concerns resonate with manufacturers who have made substantial capital investments they fear will be rendered useless.

According to Bereket Geberehiwot, CEO of ABSS Trading PLC, his company sank 40 million Br into specialised machinery that only produces plastic bags.

“If the ban goes through without changes,” said Bereket. “I would have to sell the equipment by weight, as scrap, with little chance of recouping my investment.”

ABSS Trading, incorporated eight years ago, posts an annual net profit of about one million Br. The bulk of its production relies on recycled plastic. It employs 100 workers and partners with five recycling companies, each with up to 30 employees, demonstrating the broader value chain and the job opportunities tied to the plastic industry. Collectors are paid up to 100 Br for a kilogram of plastic, demonstrating the demand for used materials.

Other longtime industry players share similar worries.

Gazel Trading PLC, run by CEO Tewodros Sileshe for 13 years, uses machinery valued at 150 million Br, which cannot be adapted for other manufacturing processes. Tewodros acknowledged the merits of environmental protection but argued that a blanket ban is not the solution.

“Several imported products, including edible oil, are packaged in plastics and later recycled into bags or other items,” he told Fortune.

Tewodros believes that adjusting the required thickness of plastic bags to facilitate recycling could preserve the circular economy and mitigate job losses. The plastics industry employs the second-largest workforce in the country, a statistic he holds up as evidence that the government should avoid policies that undermine a vital contributor to economic development

Federal Judge Suspends Addis Chamber’s Assembly as Leadership Dispute Intensifies

An abrupt legal dispute has thrust the Addis Abeba Chamber of Commerce & Sectoral Associations (AACCSA) into the limelight, ending its general assembly two days before it was set to convene.

A Federal First Instance Court judge issued an injunction on January 8, 2025, leaving board members and thousands of business owners in limbo as the metropolitan Chamber’s leadership gripped by allegations of “unlawful dismissal and manipulation of internal processes.” The plaintiff, board member Abera A. Eshete, challenged the Chamber’s leadership and its President, Mesenbet Shenkute. He contends that his removal from the board was “illegal” and motivated by personal feud, an accusation the Chamber’s leadership rejects.

A contentious proposal to overhaul the Chamber’s constitution lies at the crux of the dispute. Under Mesenbet’s restructuring plan, membership in the Addis Chamber would become mandatory for the city’s 480,000 licensed businesses. It is a departure from a long-standing voluntary system, and one that Abera claims violates the Chamber’s governing principles. He claims that the move would erode the institution’s legitimacy by effectively coercing businesses into joining.

Mesenbet, who served on the board before rising to the presidency, insisted that the plan is necessary to strengthen the Chamber’s financial and institutional capacity, pointing to what she described is chronic problems in serving the needs of the city’s private sector.

Disagreements over the proposal led to a heated discussion at last month’s board meeting. Abera alleged that his outspoken opposition spurred the board of directors, led by Mesenbet, to dismiss him to sideline dissent and expedite changes in the bylaws. His legal team, headed by advisor Sintayehu Zeleke, has summoned five witnesses to testify about what they characterised as procedural lapses and personal bias within the Chamber. They pleaded that these alleged governance failures might extend to broader efforts to manipulate the upcoming election by excluding dissenting voices and undermining the voluntary character founded by the Chamber.

Established in 1947 and restructured in 2003, the Addis Chamber holds an important place in the private sector, representing 17,000 members. Its mission, historically, has been to facilitate policy advocacy, promote business development, and provide crucial services like the Institute of Directors and a business incubation centre. However, the recent upheaval has exposed a deep rift between those who favour a strong, centralised Chamber, able to draw on obligatory membership fees and regulatory backing, and those who believe such power runs contrary to the founding ideals.

While the Chamber has reported notable successes under Mesenbet’s leadership, such as a 12.5pc increase in revenue for the 2022/23 fiscal year, bringing total earnings to 81 million Br, its overall financial status is mixed. Total assets fell by 13 million Br in the same period, slipping to 140.4 million Br, a trend that some board members attribute to weak oversight.

Mesenbet has argued that these figures illustrate the need for the Chamber to expand its resource base. She has framed the proposed reforms as part of a broader transformation, arguing that mandatory membership is the only viable way to effectively boost the organisation’s capacity to serve the private sector. In a recent press conference, she spoke of a “long-standing manifestation of problems” within the Chamber that her restructuring would remedy.

Abera, who has also serves on the board of Zemen Bank and is a major shareholder of A.Y. NOBLE Inspection & Servilance Service, believes the Chamber’s push for mandatory membership masks a desire to consolidate power. He described the restructuring as a “power grab,” claiming it undermines the voluntary character that has defined the institution for decades. According to Abera, the tension came to a head when he challenged Mesenbet’s plan during a board meeting, sparking an argument he says was later used as a pretext for his dismissal.

He claimed bypassing the credential screening and election committee and imposing decisions without due scrutiny is part of a broader pattern.

His lawsuit appealed for reinstatement to the board, the suspension of the other directors alleged to be complicit in his ouster, and a return to what he claims is the Chamber’s rightful governance practices.

The management team includes Vice President Fasikaw Sisay and nine other board directors – Kibret Kebede, Asfaw Alemu, Melaku Kebede, Alemaywhu Nigatu, Sarah Solomon, Abebr Gurnesa, Suleiman Fereja and Gizachew Tekalign. The plaintiff claims the witnesses, including board members and the Chamber’s arbitration director, will support claims that institutional norms have been disregarded.

Although Mesenbet, a 56-year-old business consultant who once was the CEO of the state-owned Development Bank of Ethiopia (DBE), has countered that the restructuring is critical to modernising the Chamber, the dispute has temporarily ground the organisation to a halt. The injunction, signed by Judge Gerawork Yitbarek, has frozen its operations, effectively putting the scheduled 18th General Assembly on ice and any immediate decisions about the Chamber’s bylaws.

The Chamber and Mesenbet are expected to file responses in the coming weeks.

Authority Enacts EV Charging Stations Directive

A new directive setting technical standards, licensing requirements, and safety measures for electric vehicle (EV) charging stations has been approved. Created by the Petroleum & Energy Authority (PEA), it aims to ensure the quality of energy supply and the safety of charging stations and accelerate the adoption of EVs.

The directive outlines service provision regulations, including technical and safety standards as well as electricity tariff criteria. It divides public charging stations into two categories: those connected to the power grid and those operating independently. Licensed companies must submit tariff proposals for approval before commencing operations.

To ensure accessibility, the directive mandates charging stations be installed at 50 km intervals on both sides of expressways, and at 120 km intervals for trucks and larger vehicles. It also holds both service providers and customers accountable for compliance with safety and operational standards.

Fuel Prices Surge Following Subsidy Withdrawal

 

The Council of Ministers has authorised monthly reviews and adjustments to retail fuel prices, leading to a price hike on January 7. The increase affects gasoline, kerosene, white diesel, light black diesel, heavy black diesel, and jet fuel.

Gasoline prices rose by 11.3pc to 101.47 Br a litre. White diesel and kerosene prices increased by 9.6pc, while light black diesel now costs 108.30 Br a litre, and heavy black diesel is priced at 105.97 Br. Long queues at fuel stations persisted until the price adjustment took effect.

The Ministry of Trade and Regional Integration (MoTRI) allocated 300 billion Br for petroleum subsidies, covering 75pc of benzene and 80pc of diesel costs.

Fuel prices have dramatically increased over the last five years, driven by global market disruptions, reduction in subsidies, and local currency depreciation. Three months ago, the Ministry increased fuel prices, adjusting a litre of benzene to 91 Br and diesel to 90 Br.

Wegagen Bank Expands into Diaspora Real Estate Market

Wegagen Bank has signed a memorandum of understanding (MoU) with Deluxe Properties to support diaspora communities in purchasing homes. The agreement was signed at Wegagen Bank’s headquarters last week.

Under the MoU, Wegagen Bank will provide financing to diaspora buyers of Deluxe Properties’ homes. The bank offers loans covering up to 80pc of the property’s cost, with repayment terms spread over 25 years.

The Bank stated the initiative supports the National Bank of Ethiopia’s (NBE) mission to help diaspora associations achieve homeownership.

Wegagen Bank’s Operations CEO, Kidane G/Mariam, and Deluxe Properties’ CEO, Goytom Birhanu, signed the agreement, aiming to make real estate more accessible and affordable for buyers, particularly those investing in under-construction properties.

Parliament Tightens the Screws on Petroleum Distributors

 

Federal legislators passed today a sweeping bill tightening licensing requirements for distributors of petroleum products and imposing stiffer penalties on violators. The authors’ of the bill believe it will combat smuggling, hoarding, and fuel adulteration.

The law carries prison sentences of five to seven years for those convicted of adulterating fuel, tampering with equipment, or operating without proper certification. Authorities can confiscate contraband fuel from smugglers, while distributors caught overcharging buyers risk fines ranging from 600,000 Br to one million Br; repeat offenses carry prison time.

Under the new legislation, which passed with two votes against and one abstention, aspiring distributors are mandated to construct storage depots capable of holding at least half a million liter of fuel, open four service stations, and expand to 10 stations within three years. Existing distributors have five years to meet comparable benchmarks.

Lawmakers also ratified a shift to mandatory digital payments along the supply chain, ending long-standing cash-based practices. During a heated debate, several MPs criticised regulators for what they described as lax oversight, pointing to unauthorised checkpoints operated by regional states that reportedly levy arbitrary fees on fuel transporters. Others called out the government for not pursuing “known participants” in illicit trade, arguing that tolerating such activities undercuts the integrity of the rules.

Dashen Bank Launches New Digital Banking App

Dashen Bank has introduced a new digital banking app that sets a new standard for convenience. The app combines all aspects of personal and commercial banking into one user-friendly platform. It offers one-stop banking, allowing users to manage multiple accounts, make instant transfers, and handle finances all in one place.

The app features AI-powered onboarding. Additionally, it includes secure authentication options such as password choices, biometric authentication, and One-time password (OTP) activation.

The app offers features like lifestyle services marketplace and mini apps. The app also includes features like Islamic Banking and a Merchant App, which offers tools for generating QR codes and paying utility bills.

Dashen Bank CEO Asfaw Alemu stated, “This app will help us deliver safer, higher-quality, and more efficient

GERD Faces 80bn Br Funding Gap, Nears Completion

The Grand Ethiopian Renaissance Dam (GERD), a 5,150MW hydropower project, requires an additional 80 billion Br, one-third of its 2024 revised cost of 240 billion Br. The dam has reached 97.6pc completion.

The dam began in April 2011 with an estimated budget of 80 billion Br. “The civil construction is complete, but the electromechanical work remains unfinished,” said Solomon Daniel, public relations head for GERD Coordination Project Office’s Public Diplomacy.

He stated that the Office initially estimated an additional 50 billion Br to complete the project in June 2024. “But due to currency devaluation and other factors, it now requires another 80 billion Br.”

Aregawi Berhe (PhD), head of the Office of the National Council for the Coordination of Public Participation said that 20.2 billion Br has been raised since construction began, but further contributions are needed. Four turbines are operational, while nine are still in progress.

High transportation costs from Djibouti Port to the dam site in Guba, Benishangul Gumuz Regional States have intensified expenses, according to Aregawi. “If funding is secured, we expect to finish the project this year,” he said.

Experts have attributed delays to poor planning, design changes, and economic challenges. “Projects like GERD require thorough feasibility studies covering financial, technical, and social aspects. Without adequate financing, manpower, and political stability, completion becomes difficult,” said Abebe Dinku (PhD), a professor of civil engineering at Addis Abeba University.

The devaluation of the local currency has greatly impacted the dam’s progress. Abebe says that when GERD began, the exchange rate was less than 20 Br to the dollar. “It has since increased over fivefold, compounding costs,” he said. “The shortage of foreign currency and political instability have also hindered progress.”

The professor urged better oversight and planning for large-scale projects. He says that strong feasibility study, regular progress reviews, collaboration with international experts, and ensuring financial and foreign currency availability are critical for timely completion.

Parliament Approves Asset Recovery Law

Parliament has passed the Asset Recovery Proclamation with three votes against and four abstentions. The law grants the government extensive powers to trace, investigate, and confiscate assets obtained through “unexplained” means.

The new legislation aims to combat economic crimes that threaten financial stability and integrates existing criminal, anti-corruption, and anti-money laundering provisions into a unified legal code.

The legislation allows relevant regulators to seize assets based on civil standards of proof, without requiring a criminal conviction. Under the new law, individuals and institutions must provide evidence of the legitimacy of their assets, shifting the burden of proof from prosecutors. Those with “unexplained assets” are required to present documentation within two months.

The law also enables retroactive investigations into assets exceeding 10 million Br over the past decade. It grants investigators the authority to bypass privacy protections, such as accessing bank accounts and emails without court orders, and allows for undercover operations. A newly established department within the Ministry will manage recovered assets.

Some MPs voiced concerns about the fairness and practicality of its implementation. Abraham Alemayehu (PhD) (MP-PP) expressed doubts, questioning whether the law could be implemented effectively and fairly..