Infinix Unveils ZERO Series Mini Tri-Fold:

A Game-Changing Foldable Concept

The First-of-Its-Kind Mini Tri-Fold That Transforms From a Smartphone to a Hands-Free Display and a Compact Camera

 

Addis Ababa, FEBRUARY 28, 2025 – Infinix, a trendy tech brand crafted for young consumers, is redefining the future of foldable with its latest innovation. The ZERO Series Mini Tri-Fold Concept Device seamlessly transforms between a smartphone, a hands-free fitness and entertainment companion, and a compact camera, unlocking new possibilities for mobility, creativity, and functionality. Designed with a triple-folding mechanism and dual hinges that folds and unfolds vertically into itself, this concept brings a fresh perspective on how smart devices integrate into modern lifestyles.

Multiform for Multi-scenarios

This is not just another foldable; it is a bold reimagination of how technology enhances everyday life, evolving seamlessly between different forms. Whether mounted on gym equipment’s for workout tracking, clipped onto a backpack for action shots, or unfolded into a sleek, pocket-friendly smartphone, the ZERO Series Mini Tri-Fold delivers unmatched versatility.

  • Beyond Traditional Foldable

Unlike conventional foldables that simply expand into a larger screen, this next-generation device shifts effortlessly between multiple modes. It stands upright for hands-free calls, entertainment, and quick access on the go. With its innovative strap accessory, it can be securely attached to gym equipment’s, bicycle handlebars, or even a car dashboard, allowing users to track workouts, follow guided exercise routines, or navigate routes—all while keeping their hands free. When mounted on a bag strap or placed on a surface, it transforms into a compact camera, capturing dynamic moments from the perfect angle.

  • Outward Folding & Cameras

The outward-folding design unlocks even more possibilities. It creates an intuitive, dual-screen experience that makes real-time multilingual conversations effortless, allowing both users to view translated content side by side. This same design also turns the device into a high-performance camera system, using the main camera to capture stunning photos and videos while doubling as a premium selfie tool with an immersive screen for perfect framing.

 

Compact, Stylish and Ready for Daily Use

Folded into its most compact form, the ZERO Series Mini Tri-Fold becomes a stylish, everyday smartphone with a comfortable grip and sleek finish. It is lightweight, intuitive, and built for single-handed use—blurring the lines between a smartphone and an all-in-one tech companion.

As the demand for foldable technology evolves, young consumers are seeking more than just larger screens; they want devices that seamlessly integrate into their lifestyles, replacing multiple gadgets with a single, adaptable solution. Infinix continues to challenge expectations by combining cutting-edge engineering with stylish, user-centric design. The ZERO Series Mini Tri-Fold offers a visionary glimpse into the future—where innovation, practicality, and aesthetics come together in one ground-breaking device.

This is more than a glimpse into what is next. It is a testament to Infinix’s commitment to redefining the mobile experience and empowering users to explore new possibilities with every fold.

About Infinix:

Established in 2013, Infinix is a cutting-edge technology brand tailored for the youth. Committed to delivering cutting-edge technology, stylish design, and outstanding performance, Infinix strives to provide consumers with a superior mobile intelligent experience. In addition to smartphones, Infinix has expanded its product range to include TWS earbuds, smartwatches, laptops, Tablets, smart TVs and more. Currently, Infinix products are available in over 70 countries and regions worldwide, spanning Africa, Latin America, the Middle East, South Asia, and Southeast Asia. For more information, please visit: http://www.infinixmobility.com/

E-Passport Service Begins with Local Production Set for October

Immigration & Citizenship Services (ICS) has commenced e-passport issuance supported by an inventory of 1.5 million passports, with local production scheduled to begin in October.
ICS invested 2.5 billion Br in telecom and data center infrastructure, and an additional 80 million dollar in document procurement. This included 1.5 million passports (50 dollars each), 300,000 alien passports and yellow cards (eight dollars each), and half a million emergency travel documents and laissez-passers (five dollars each)
“This is a massive investment,” ICS Deputy Director-General Gosa Demissie told Fortune.
Passport holders may continue to utilize their existing documents until expiration. Officials have announced that the e-passport service will maintain the current fee structure and assures delivery within a period of two months and 10 days.
Toppan Security Ethiopia S.C., a joint venture established in 2023, has expedited e-passport printing at its 55 million dollar industrial security plant in Bole Lemi Industrial Park. The venture comprises Toppan Gravity (51pc), a subsidiary of Japan-based Toppan Inc., and Ethiopian Investment Holdings (EIH), through its subsidiaries, Berhanena Selam Printing Enterprise (BSPE) and Education Materials Production Distribution Enterprise (EMPDE).
Brook Taye (PhD), CEO of EIH, described the arrangement as “one of the most important strategic investments to date.”
At full capacity, the plant is expected to print over five million passports annually and will also implement a digital identity verification system. The e-passports feature an embedded chip that stores MRP data and biometric information, including facial recognition, fingerprints, and iris scans, increasing security.

𝗜𝘀𝗿𝗮𝗲𝗹 𝗗𝗲𝗴𝗲𝗳𝗮 𝗥𝗲𝗰𝗲𝗶𝘃𝗲𝘀 𝗣𝗲𝗿𝘀𝗼𝗻 𝗼𝗳 𝗧𝗵𝗲 𝗬𝗲𝗮𝗿 𝗔𝘄𝗮𝗿𝗱 𝗮𝘁 𝘁𝗵𝗲 𝗔𝗳𝗿𝗶𝗰𝗮𝗻 𝗟𝗲𝗮𝗱𝗲𝗿𝘀𝗵𝗶𝗽 𝗔𝘄𝗮𝗿𝗱𝘀

ADVERTORIAL: Israel Degefa Receives Person of The Year Award at the African Leadership Awards

For his transformative leadership and substantial contributions to the coffee industry, Israel Degefa, Chief Executive Officer of Kerchanshe Group, has been named Person of the Year 2025 at the African Leadership Persons of the Year Awards, held in Casablanca, Morocco. This prestigious accolade, presented by the African Leadership Magazine, recognizes Israel’s groundbreaking introduction of shade-free coffee agriculture in Ethiopia—a revolutionary approach that enhances both sustainability and coffee quality. His innovative methods have earned widespread acclaim, including a visit from Prime Minister Abiy Ahmed (PhD).

Israel received the award from former President of Tanzania, Jakaya Kikwete (PhD), who serves as Chairman of the African Leadership Organization Advisory Board. The ceremony was attended by distinguished dignitaries and influential figures from across Africa, underscoring the significance of this recognition.

Israel’s pioneering work in coffee cultivation has not only elevated the quality of Ethiopian coffee but has also set a new benchmark for environmentally conscious agricultural practices across the continent. Notably, he stands as a trailblazer in introducing shade-free coffee agriculture in Africa. His commitment to sustainability and innovation has firmly positioned Kerchanshe Group as a model for ethical and responsible business practices.

By bestowing this honor upon Israel, the awarding body highlights his exceptional leadership and lasting impact on sustainable development. This recognition reaffirms the critical role of visionary leaders in driving economic growth, environmental stewardship, and social progress across Africa. His achievements are expected to inspire entrepreneurs and industry leaders to embrace sustainable innovation and forward-thinking leadership.

EGG-TRAVAGANT PRICES SCRAMBLED HOUSEHOLD BUDGETS

A public service employee who earns 7,500 Br a month recently found himself walking away empty-handed from a street vendor near Anbessa Gibi Park (Russia St.) in Addis Abeba. Only weeks ago, he could buy 20 to 30 eggs a week at under 10 Br each, but the price has now soared to as high as 21 Br, putting eggs out of reach for his family of five. He used to rely on eggs for protein after rising beef prices squeezed them out of his household budget; even subsidised egg sandwiches at his workplace cafeteria have jumped beyond what he could afford. The sudden surge in egg prices has rumbled through local bakeries, restaurants, and small shops. A wholesaler near Addis Abeba University’s Yared School of Music recalled a time when a broader range of customers visited daily. Now, eggs cost around 16.50 Br wholesale, with retail prices skyrocketing well above 18 Br. Stalwart buyers tend to be wealthier households or cafes, leaving most low-income customers to merely inquire and leave in frustration.

The Ministry of Agriculture reported egg production rising from 3.2 billion to 5.7 billion in two years, with projections to reach 9.1 billion next year. Chicken meat output has followed a similar path, climbing from 90,000tns to 208,000tns during the same period. Farmers initially saw egg prices drop to around six Birr last year, triggering a glut in the market. But, the subsequent exodus of small-scale producers from the business has now reversed the trend. Commercial poultry farms found themselves caught in a punishing cycle. Egg prices tumbled so low last year — occasionally down to four Birr — that many small operators could not cover a production cost of up to eight Birr. As businesses folded, large farms were forced to dispose of unsold eggs or switch to broiler chickens. With fewer layer hens in circulation, egg prices have soared again, attracting new entrants who hope to cash in on higher profit margins.

At the heart of these fluctuations lies the soaring cost of feed, which can account for up to 80pc of production expenses. Corn and soybeans, the main ingredients, are increasingly difficult to source due to regional conflicts and transport disruptions, while imported premixes and vaccines face added burdens from currency depreciation and taxation changes. Even large-scale producers, who can weather short-term losses, struggle when monthly feed bills balloon and small-scale farmers exit the market en masse. Although federal government officials prioritise domestic supply by limiting poultry exports, industry experts warn that restricting market outlets only worsens these boom-and-bust cycles. Many argue that fewer and larger farms could achieve stable production levels, but most of the eggs still come from smaller outfits that lack the economies of scale to survive prolonged price swings. For now, the market’s turmoil has turned once-humble eggs into a near-luxury, with consumers left searching for protein alternatives

Africa Wants to Mark Own Homework with Homegrown Credit Agency

Africa is a place where the frustrations of its elites run high due to what they feel are external yardsticks distorting the continental potential. Ironically, successive generations of leaders have long borrowed foreign institutional models from the African Union (AU), inspired by the EU, to various economic and security blocs. Yet, they have not seen the promised transformations.

On February 13, 2025, at a summit in Addis Abeba, heads of state endorsed yet another initiative to create the African Credit Rating Agency (AfCRA), due to launch in June. They hope it will offer fairer assessments of African economies and counter the “African Premium” critics see in the big three agencies: Moody’s, Fitch, and Standard & Poor’s. Indeed, in global finance, these few powerful agencies steer entire economies, and creditworthiness assessments are never limited to technicalities.

Anecdotes from around the world can reveal the distortions in assigning credit.

Japan, for instance, enjoys an A+ rating despite a massive debt-to-GDP ratio of 235pc and modest growth of 1.7pc. India, by contrast, has a healthier debt ratio of 69pc and vigorous growth of 6.6pc yet is rated BBB-. Greece, which once lurched near economic collapse, still boasts a BB- rating, far higher than Tanzania (B), Rwanda (B+), Ivory Coast (B+), and Ethiopia (CCC+), each with growth above five percent. Critics see in these comparisons a double standard that unfairly penalises African countries.

None of this is an academic quibbling. Credit ratings dictate borrowing terms, shape investor perceptions, and constrain public spending. An overly pessimistic rating can be devastating for a continent that requires 130 billion to 170 billion dollars a year to plug its infrastructure gap. Africa’s rocky rapport with these rating agencies dates back decades. South Africa became the first African country to receive a sovereign rating in 1994. By September 2018, 31 African countries had secured ratings from at least one of these agencies, yet most languished in “junk” status, leaving only Botswana, Morocco, and Mauritius at the investment-grade table.

Surprisingly, global financiers are not entirely put off. Even high-yield African bonds, rated far below investment grade, often attract billions in long-term commitments, indicating that official ratings omit nuances investors sometimes spot.

For Africa’s elites, these seem to be a test of economic self-determination. The sentiment explains why leaders have championed institutional reform, echoing past regional initiatives yet wanting to usher in financial integration. With AfCRA, they vow to tackle the chronically low ratings that block access to global capital.

High borrowing costs and unsustainable debt plague many African economies. Low ratings compel them to pay punishing bond yields, diverting funds from infrastructure, education, and healthcare. Although the continent’s growth of 3.7pc last year is set to exceed the 3.2pc global average, yet risk assessments remain stuck in what African elites believe are outdated views. They argue that the agencies ignore resilience and reforms across the continent.

Four African countries raised 5.7 billion dollars through Eurobonds this year, signalling that investors still see promise despite yields of seven to 10pc. However, such borrowing often funds recurrent expenses rather than the growth-enhancing investments needed.

That mismatch frustrates African political leaders and economic elites, who argue that international agencies apply a harsher benchmark to emerging markets and frequently ignore reforms and investment opportunities.

Akinwumi Adesina (PhD), the outgoing president of the African Development Bank (AfDB), is a vocal voice blaming the credit rating agencies for failing to assess Africa’s risk accurately, failing to consult stakeholders sufficiently and lacking independence and objectivity.

It is not only African leaders who find fault with the global financial system. In April, at a high-level gathering of the United Nations (UN), Secretary-General Antonio Guterres branded them “outdated and unjust,” especially in their treatment of developing economies. Hopefully, the UN Summit of the Future this September may yield proposals for systemic reform, but such ambitions rarely materialise overnight. For African countries, the priority would be to ensure that sovereign ratings reflect real performance, not outmoded formulas.

Low ratings wreak havoc well beyond finance. Governments saddled with steep borrowing costs face impossible trade-offs. Take Cote d’Ivoire, whose latest bond issue demanded coupons of 7.625pc on a nine-year bond and 8.25pc on a 13-year bond, a leap from the 5.375pc coupon it offered on a 10-year bond a decade earlier. Investor wariness and the influence of global rating agencies imposed additional strain on national budgets. Many fear, understandably, that the result would be a vicious cycle as interest payments devour resources that might otherwise fund public infrastructure and social services.

AfCRA’s advocates believe it will provide more balanced and contextually attuned analyses of African economies. With backing from the African Union (AU) and Afreximbank, the new agency could account for the continent’s unique structural and economic settings, in contrast to the uniform templates used by the major agencies. Supporters believe a fairer rating will unlock capital at lower rates, spurring development.

Yet, sceptics abound. They see biased assessments as only part of the problem. Massive debts, inadequate revenues, frail institutions, and political fragility grip many African countries. Without facing these structural shortcomings, a fresh rating agency may do little to calm wary investors. Data quality poses another problem as a report by the Open Data Inventory found last year that only one African country scored above 60 for statistical openness, laying bare the difficulties for any rating body seeking reliable information. Missing or inconsistent data could easily undermine AfCRA’s credibility.

It is also unlikely for the AU to muster sufficient institutional heft to guide AfCRA toward credibility in the eyes of global markets. Even a well-intended alternative to the big three may be brushed aside if doubts swirl about its independence or rigour.

The trouble is compounded by the issuer-pay model. Between 2008 and 2017, African countries collectively shelled out 186 million dollars to the major rating agencies, with South Africa alone paying 10.2 million. Critics warn that a system requiring borrowers to pay for their own assessments invites conflicts of interest. The 2008 financial crisis exposed precisely this flaw, when agencies assigned triple-A ratings to dubious mortgage-backed securities. Tensions around such practices add urgency to Africa’s call for an alternative. Yet, setting up AfCRA is no magic wand. If states fail to fortify fiscal institutions, improve data gathering, and anchor political stability, creating another new agency could only struggle to be taken seriously.

AfCRA could be dismissed as an exercise in political posturing. The Agency risks becoming more symbol than substance, leaving governments in the same predicament of overpaying for credit essential to development and chafing under an external verdict that rarely meets their aspirations.

Egg Prices Soar, Families Struggle, Bakeries Bleed as Market Swings

Endalk Eshetu stood arguing with a street egg vendor on Russian Street, near Anbessa Gibi Park in Amist Kilo. It was Thursday at 5:30 PM, the peak of rush hour, with long taxi queues as employees left their offices.

The street was crowded with people, street vendors, and heavy machinery working on the nearby road project. The air was filled with dust and the noise of generators. Security officers are selectively chasing away garment vendors.

As Endalk bargained, passersby stopped to ask the price of eggs. Some bought a few; others walked away.

“How much?” Endalk asked the vendor, who was chatting with two peers chewing khat.

“16.50 Br,” the vendor replied.

“Have chickens stopped laying eggs in this country?” Endalk rhetorically asked before walking away empty-handed.

A government employee in his late 30s, Endalk earns 7,500 Br a month. He has a wife and three children. For months, eggs had been his go-to grocery item, especially after their price dropped sharply in April last year. Beef, his family’s preferred protein, had long been out of reach as prices increased. Eggs were the affordable alternative.

“Eggs allowed my family to get good protein with a small amount of money,” he said. “We eat eggs because we can’t afford beef.”

Just two months ago, when eggs cost six to eight Birr each, he bought 20 to 30 a week. Then prices started climbing. When they hit 10 to 11 Br three weeks ago, he cut back. Now, with wholesale prices at 16.50 Br and retail prices reaching 21 Br, he can no longer afford them.

“How can I pay 16.50 Br for a single egg?” he asked.

Even at the government office cafeteria, where food is subsidised, the price of a simple egg sandwich has increased to 50 Br, up from below 40 Br just weeks ago.

“This is with government support, where they rent the facility for almost nothing to keep food affordable for employees,” he said.

Egg prices have surged, making the once-affordable food a luxury for many.

Mezgebu Lakew, a wholesale egg seller near Addis Abeba University’s Yared School of Music, has been in the business for six years. He now sells eggs for 16.50 Br each.

“Eggs are the easiest meal, especially for bachelors,” he said. “You just boil them, no salt, pepper, or spices needed.”

Since the Genna holiday (Christmas), prices have steadily risen. Mezgebu used to serve customers from all income levels, but that has changed. As prices jumped from 11 Br just weeks ago, low- and middle-income buyers vanished.

“Only those who can afford it buy eggs now,” he said.

Many potential buyers stop at his shop, ask the price, and leave disappointed.

“People with limited financial capacity only ask,” he said. “They no longer buy.”

Despite losing regular customers, Mezgebu’s business remains steady. Wealthier buyers, arriving in cars from distant neighbourhoods, have taken their place.

“My customers now are mostly high-income earners,” he said.

His sales split is 10pc cafes and restaurants, 10pc retail shops, and the rest household consumers. While retail prices range from 18 Br to 21 Br per egg, Mezgebu keeps his prices lower, drawing new customers from across the city.

“I earn just under a Birr per egg,” he said. “But selling in large volumes keeps the business going.”

He sells between 4,000 and 10,000 eggs daily.

“I want to keep customers long-term,” he added.

Mezgebu owns a poultry farm in Bishoftu. He sources eggs from his farm and other local farmers. He also sells chicken meat, offering a whole chicken for 350 Br. Unlike eggs, chicken prices have remained low.

“People don’t usually prefer chicken meat,” he said. “But now, some are switching because eggs have become too expensive.”

The rising cost of eggs is squeezing bakeries, pastry shops, and cake houses. Mina Bakery is among those struggling as egg prices and other ingredient costs soar.

The bakery now sources eggs from suppliers in Bishoftu at 17 Br per egg, more than double the seven Br it paid just months ago.

“We sometimes think about shutting down or relocating to regional states,” said Ayele Fentaw, the bakery’s manager.

Despite rising costs, Mina Bakery has yet to increase prices, fearing it will drive away customers. Ayele has already seen demand drop as people cut back on spending.

“If a customer used to buy 30 loaves, they now buy only 15,” he said. “If we raise prices, demand could fall even further.”

But he knows the bakery can not hold off price hikes much longer. With monthly rent at 200,000 Br and 30 employees, 15 permanent and 15 temporary, the business is under pressure.

“How can we pay rent and salaries in this situation?” he asked.

The problem goes beyond eggs. The prices of other essential ingredients have also sharply increased. Baking powder has jumped from 3,000 Br to 6,300 Br, a 20-litre container of edible oil has risen from 4,300 Br to 5,200 Br, and a kilo of salt has nearly doubled from 17 Br to 30 Br.

“It’s getting harder to survive,” Ayele said.

Other bakeries, including Bilu Cake and Kebe Cake, are also struggling. Both are now considering price hikes in the coming days if egg prices remain high.

Egg prices have spiked in recent weeks, driven by supply shortages, rising feed costs, and increased prices for inputs such as vaccines.

In November 2022, the government launched Yelemat Tirufat, a four-year development programme aimed at boosting agricultural productivity, including eggs, poultry, dairy, and honey. Prime Minister Abiy Ahmed (PhD), speaking at the launch in Arba Minch, stated that the initiative’s goal was to achieve food self-sufficiency. The programme has since provided subsidised improved chicken breeds and training to poultry farmers.

According to government officials and industry insiders, the programme has dramatically increased egg and poultry production. The Ministry of Agriculture (MoA) reports that egg production rose from 3.2 billion eggs in 2021/22 to 3.9 billion the following year, reaching 5.7 billion in the 2023/24 fiscal year. Chicken meat production also grew from 90,000 tonnes in 2021/22 to 112,000 tonnes a year later and 208,000 tonnes in 2023/24.

The government plans to produce 9.1 billion eggs and 240,000 tonnes of chicken meat by the end of the 2025/26 fiscal year.

Yonatan Zewde, head of poultry resource development at the ministry, says egg and poultry production has expanded rapidly over the past three years, with the number of poultry farms doubling since the programme began. He told Fortune that the government has supported commercial farms in expanding production while also encouraging new poultry farmers to enter the sector.

The distribution of improved chicken breeds has also increased sharply. In the 2021/22 fiscal year, 27 million chickens were distributed nationwide. That figure jumped to 42 million the following year and reached 74 million in 2023/24.

The increased production initially drove egg prices down. Last year, egg prices fell sharply, dropping to four to six Birr from producers and six to eight Birr at retail. Before this decline, eggs were selling for 10 to 12 Br each.

Two years ago, egg prices remained relatively stable. However, the government’s intervention in the poultry sector has disrupted market dynamics, with fluctuating supply and rising input costs now pushing prices higher once again, according to stakeholders.

Debre Holland Poultry Plc, Ethiopia’s largest commercial egg producer, has faced severe problems due to market volatility. A subsidiary of Maranatha Farm Plc, the Debre Birhan-based farm produces 26 million eggs annually, supplying eggs, chicks, and occasionally pullets.

Bert Bout, general manager at Debre Holland, says demand has been unstable since the government’s Yelemat Tirufat programme began. Previously, the market was more predictable. Last year, egg prices fell to as low as four Birr, making production unsustainable for small and medium-scale farmers, whose costs averaged eight Birr per egg. Many either switched to chicken meat production or exited the business entirely.

“At one point, profit margins were just 0.5 Br per egg, far too low to be viable,” Bert said.

Tigist Getachew, Debre Holland’s marketing manager, says the egg industry is naturally cyclical, with demand peaking during non-fasting seasons like Christmas and Easter and dropping in winter. Traditionally, farmers sell layer chickens during holidays, which leads to post-holiday egg shortages. However, the government programme disrupted this cycle, forcing many farms out of business and reducing demand for pullets and one-day-old chicks.

Last year, egg prices plummeted due to weak demand. Debre Holland was forced to dispose of unsold eggs. The farm, which benefits from economies of scale, produces eggs at six Birr each, two Birr lower than the average small or medium-scale farm.

As farmers abandoned the industry, demand for Debre Holland’s chicks and pullets also collapsed. Bert says that the only reason the farm survived was its large-scale operation and self-sufficiency in feed production.

“The market volatility has been brutal,” he said. “Low prices last year wiped out many farms.”

He says that the country is facing an egg shortage now because there are too few layer hens.

This shift has driven egg prices up, while chicken meat prices have dropped. Many farmers, who previously switched to broiler production, are now scrambling to re-enter the egg market.

“The demand is crazy now,” Bert said. “Everybody is calling me for eggs.”

Alemayehu Amdemariam (Maj.), co-owner of Alema Farms, a large-scale poultry farm in Bishoftu, predicts a similar trend for chicken meat. As meat prices fall, many farmers are halting chick purchases and stopping production.

“Very few people are buying chicks from me,” he said. “The demand for broilers and chicken meat has dropped enormously.”

If demand remains low, he expects to shut down production soon. They are already storing chicken meat due to oversupply and weak sales.

Many are now urging Alemayehu to shift to hatching layer chicks instead.

Seid Mohammed (PhD), manager at Albar Poultry, says his farm hatches both broiler and layer chicks, operates a feed factory, and produces eggs.

At times, they hatch hundreds of thousands of chicks, but when prices drop, they halt production. Most of their customers are small-scale farmers who struggle to survive.

The price of layer chickens has skyrocketed recently, according to Seid.

“There were times we begged customers to buy chicks,” Seid said. “When prices drop, you’re desperate to sell. Now, it’s the opposite, we are being begged for chicks. Demand has exploded.”

But Seid is sceptical.

“The market is crazy right now,” he said. “But my experience tells me it will not last.”

Yonatan believes middlemen are driving up egg prices, but he expects them to fall soon.

As demand for layers surges, interest in broilers has collapsed. Many farmers are abandoning the broiler business, suffering heavy losses. Last year, chicken meat prices spiked, attracting new entrants, but now, the cycle is reversing.

“People jump into poultry farming and switch between egg and meat production without proper research,” Seid said.

Fikadu Bekele, a poultry farm owner in Sebeta, Oromia Regional State, says the rising price of eggs has sparked a rush into poultry farming. This surge in demand has driven up the cost of layer chickens. A one-day-old chick now costs 103 Br, while a two-month-old layer sells for 350 Br.

Many of Fikadu’s colleagues have been forced out of broiler farming and some are switching to egg.

Commercial poultry farms that operate year-round are rare. According to the Ministry, most eggs come from household farms, followed by small and medium-scale producers. Only a handful of large-scale poultry farms, such as Elfora, EthioChicken, Maranatha, and Alema, remain.

When prices drop, small and medium-scale farmers cannot afford to operate at a loss. Large farms endure because they can absorb short-term losses.

Large farms operate at a loss until small-scale farmers are forced out of business, causing egg prices to rise again.

“You can’t escape losses in this business,” Seid stated.

Hatcheries were forced to dispose of eggs and one-day-old chicks. In just four months last year, eight large and medium-scale poultry farms lost 292 million Br, according to Zinaw Tsehayneh, general manager of the Ethiopian Poultry Producers & Processors Association (EPPPA).

“They can keep running even at a loss, but small farms can’t survive,” Zinaw said.

Alema Farms, which sells layer chicks, produces feed, and raises broilers, also struggled. Six months ago, they could not find buyers for their layer chicks and had to halt hatching.

“I lost millions of Birr as a result,” said Alemayehu.

The Ministry reports that 4.5 billion eggs and 105,000 tonnes of chicken meat were produced in the first six months of the fiscal year. However, poultry farmers are sceptical about these figures, arguing that actual production is far lower.

A major driver of rising egg prices is the sharp increase in feed costs. Prices have surged due to several factors, including the introduction of VAT and rising costs of imported premix. For years, feed and eggs were VAT-exempt, but Parliament ratified a new VAT law last year, increasing costs, especially for small farms.

The soaring cost of feed has made the poultry business increasingly difficult.

At Debre Holland, feed alone makes up 70pc of production costs. The primary ingredients, corn and soybean, are sourced mainly from the Wollega zones of Oromia Regional State and the Gojjam zones of Amhara Regional State. Conflict and instability in these regions have disrupted supply chains, further inflating prices.

Feed accounts for 80pc of poultry production costs, making its rising price a major burden on the industry. Last year, the Association requested the government to lift VAT on poultry feed, but so far, no response has been given.

“The main problem is the rising price of feed,” Seid stated.

The prices of key feed ingredients such as corn, soybean, premix (vitamins and minerals), press cake, and bran (frushka) have risen sharply. Soybean now costs 6,000 Br per quintal, while poultry feed exceeds 5,000 Br per quintal, up from 4,600 Br just six months ago.

Feed factories make little profit due to the rising cost of inputs like corn and soybean and an unstable supply chain, according to Said. He says they earn a maximum of 350 Br per quintal of feed.

Zinaw says feed prices have also risen sharply due partly to increased corn exports, logistical hurdles, and security threats.

Imported inputs such as parent stock, vaccines, vitamins, and minerals have also soared in price, mainly due to the depreciation of the Birr. Prices have jumped by 100pc to 300pc in a year. A parent stock that cost 20 Br four years ago now sells for 80 Br.

While locally produced vaccines exist, Zinaw says they are less effective because they must be administered separately. Imported vaccines, on the other hand, are combination doses that protect against multiple diseases at once.

Antibiotic prices are also increasing. A single vaccine dose now costs over 1.40 Br, with vaccinations required every three months. Egg layers receive daily antibiotics to boost productivity, further driving up costs.

Farmers struggle due to the lack of a sustainable market. Demand is seasonal, peaking during holidays, while instability in various regions disrupts transportation. As a result, most producers are forced to sell only in the capital.

There are no logistics or refrigerated transport facilities to distribute poultry products nationwide, according to farmers. Storage facilities for meat are also lacking, making it difficult to manage supply when demand drops.

Lack of access to foreign markets has also worsened the problem. Poultry exports are restricted. Yonatan says the restriction is meant to prioritise domestic demand.

“We need to boost production first before considering exports,” he said.

However, Zinaw argues that limited market access forces many farmers out of business, ultimately leading to supply shortages.

The Association, which represents over 160 members, has formally requested the Prime Minister’s Office and the MoF to allow the export of one-day-old chicks, broilers, and pullets.

A lack of direct linkage between producers and consumers is another factor preventing producers from gaining large profit margins. Middlemen dictate prices, reaping most of the profits while producers earn little.

“The market is at the mercy of middlemen,” Fikadu said.

Conflict across the country has also severely impacted the poultry industry, particularly in the Amhara and Tigray regional states.

Gerado Poultry Farm & Animal Feed Factory, the only private commercial poultry farm in the Amhara Regional State, has been shut down since the war in northern parts of the country expanded four years ago. Located in Dessie, the farm used to hatch a million layers annually. Established in 1998, it was a key supplier in the regional state.

However, during the war, the farm was vandalised, machinery and feed were looted, and 100,000 chickens, including 17,000 layers, were stolen. The total losses amounted to 85 million Br, according to its owner, Ibrahim Aden.

The farm remains non-operational. Ibrahim told Fortune that he needs 300 million Br to restart operations and has applied for a loan from the Development Bank of Ethiopia (DBE). He is also exploring partnerships with other farms, but ongoing instability in the region poses security risks.

Any fluctuation in feed prices immediately impacts the poultry industry, as feed accounts for over 70pc of production costs, says Demeke Wendimagegn (PhD), a poultry expert and former director at Ethiopia-Netherlands Trade for Agricultural Growth (ENTAG).

Five years ago, a quintal of feed cost 1,500 Br, but prices have since skyrocketed. Demeke argues that the introduction of VAT has further affected the sector, adding over 600 Br per quintal.

He says a recurring pattern has occurred over the past decade, new farmers enter the market each year, but the sector remains unsustainable. Most are small-scale farmers with limited capacity, typically raising between 1,000 and 2,000 chickens. Lacking economies of scale, they struggle with high costs, enter the market quickly, and exit just as fast, destabilising supply and demand.

These small-scale farmers also lack the necessary skills and knowledge to run poultry farms efficiently. As a result, productivity remains low, only 50pc to 60pc, causing financial losses or minimal profits, forcing them out of business. According to Demeke, egg production should be at least 80pc for farms to be viable.

He recommends that instead of having 100 small farms with 1,000 chickens each, farmers should consolidate resources to establish large-scale operations with 100,000 chickens, making production more efficient and sustainable.

Currently, small and medium-scale farms contribute over 70pc of Ethiopia’s egg supply, Demeke said.

AliExpress Enters Local Market, Regulation Remains Uncertain

Chinese e-commerce giant AliExpress, part of the Alibaba Group, announced last week that it will start accepting Birr for transactions. The service, set to begin on February 24, 2025, is also being rolled out in Morocco, Egypt, Tanzania, Algeria, and South Africa.

The company was established in 2010 by Alibaba and expanded its business-to-consumer services to Ethiopia in August 2024. It sells over 200 million products on its platform worldwide. AliExpress representatives believe its entry into Ethiopia will help strengthen supply chain management, customs processing, and delivery efficiency in the long run. Its officials say the latest move will reshape the e-commerce ecosystem in Ethiopia, a market with untapped digital potential.

However, questions remain about the payment settlement mechanism, as regulators at the National Bank of Ethiopia (NBE) say key details are still in the air. While there has been talk of a currency swap agreement between Ethiopia and China, it has yet to be finalised.

“We’re eager to see how they plan to begin operations,” said a senior official at the NBE, requesting anonymity. “The payment settlement operation between Birr and Yuan remains unclear to the National Bank.”

Cross-border transactions typically require authorisation from central banks in both countries before funds can be converted into the necessary foreign exchange.

“Nothing has been agreed yet,” the official told Fortune.

AliExpress representatives, meanwhile, appear ready to press on. According to Hamza Anabi, who oversees part of the AliExpress Global Business Programme, the new venture is designed to “drive growth and improve customer satisfaction” by allowing people to settle payments in local currencies. Executives disclosed that the company has completed internal preparations and integrated with local payment operators. It has also partnered with local technology firms to handle key aspects of its services, such as order logistics and transaction processing.

Executives at local companies involved in the project say they have been working steadily to ensure the technology side of the operation proceeds smoothly. Africom Technologies, Paperless Technologies Solutions, and Echelon Groups are among those that have partnered with AliExpress to establish a foothold in the country.

“We link orders, messages, and transactions from local shoppers to AliExpress’s back-end system,” said Baheru Zeynu, founder and chief executive of Africom.

He disclosed that AliExpress’s Ethiopia Country Manager, Geoffry Jiang, had emailed announcing that all internal preparations were ready.

Another local partner Paperless Technologies and Africom have been working with banks to integrate payment systems. Yesunew Hailu, CEO of Paperless, disclosed that AliExpress and two more banks – Hibret Bank and the Commercial Bank of Ethiopia (CBE) – are building compatibility. According to AliExpress, at least four financial institutions — Abyssinia and Dashen, as well as Telebirr and M-Pesa — have already completed their integrations.

Dashen Bank has launched a “Super App” that supports cross-border transactions through an integrated application programming interface.

“Our API integration is complete and can support AliExpress transactions,” Asfaw Alemu, president of Dashen Bank, told Fortune.

The app, which has been downloaded over 100,000 times and handled 2.5 billion Br in transactions, provides users with direct access to AliExpress services. Asfaw believes this will expand client portfolios, improve the Bank’s liquidity, and enhance overall customer satisfaction. Revenue from commissions and service charges is expected to strengthen the app’s revenues.

Despite these promises, several issues could complicate the rollout. Among them is the unresolved currency swap agreement. Officials from Ethiopia and China had discussed using their respective currencies for bilateral trade to alleviate Ethiopia’s foreign exchange shortages. Finance Minister Ahmed Shide said the deal was in its final stages, announcing its progress following the Forum on China-Africa Cooperation (FOCAC) meeting in Beijing last September. The agreement was meant to encourage trade and investment, support macroeconomic reforms, and address chronic currency supply problems.

Though negotiations with the United Arab Emirates (UAE) on a separate deal have reportedly advanced, the NBE official disclosed that discussions with Chinese officials remain inconclusive. He said the Central Bank has yet to officially approve any mechanism enabling local currency payments to be converted into foreign exchange for cross-border e-commerce purchases.

“Such transactions require clarity to ensure compliance with all relevant regulations,” he told Fortune.

Yet, AliExpress seems determined to move forward, betting on the increasing appetite for online retail in one of Africa’s most populous countries.

The government has shown interest in promoting electronic commerce. Ethiopia’s recently ratified national e-commerce strategy to encourage businesses to sell online, attract foreign exchange revenues, and open the sector to domestic and international players. The strategy envisions three business models—business-to-business, business-to-consumer, and consumer-to-consumer—and provides guidelines for oversight.

A national e-commerce committee has been formed to coordinate these efforts. Its Chairman, State Minister for Innovation & Technology, Yishrun Alemayehu (PhD), acknowledged that customs bottlenecks represent a notable obstacle.

“It’ll take time, but it will be resolved,” he said.

Ethiopian Airlines launched a 55 million-dollar e-commerce logistics facility at Bole International Airport in February 2024. The hub is expected to process and distribute merchandise ordered through global online platforms, including AliExpress. However, observers warn that some of the biggest challenges lie in areas beyond logistics. According to local players, unpredictable customs tariffs represent a recurring obstacle for e-commerce businesses. Regulations vary by product, and duties can sometimes match or exceed the original purchase price, frustrating both sellers and consumers.

A frequent AliExpress buyer in Addis Abeba, who moonlights as a TikTok Seller, said she was pleased about being able to use the Birr but remains sceptical of the overall cost.

“I plan to enter the trading business formally,” she said, describing her frustration when customs tariffs end up equaling the value of the item she has ordered. “It can kill profit margins for traders like me.”

Customs officials say they cannot always provide fixed duty rates because prices differ between manufacturers and countries.

“There is a possibility of amending the rules if needed,” said Kassaye Ayele, tariff director at the Ethiopian Customs Commission.

Duties are assessed once a shipment arrives and goes through one of the country’s nine customs branches.

Domestic businesses see opportunity and risk in the arrival of a deep-pocketed multinational competitor. While some believe AliExpress could encourage innovations and set new standards for logistics, others worry that big discounts and promotions will lure customers away from emerging local e-commerce platforms.

“It should be a worry for local companies,” said Brook Genene, chief sales officer at a startup that intends to launch its e-commerce platform.

He wondered how local trading portals might compete with a global giant’s low prices and brand recognition.

Business and economic consultant Moustafa Abdella expects heightened competition to force domestic firms to adapt and improve. He stated that homegrown companies can offer faster delivery and a closer understanding of consumer preferences. He also cautioned that a surge in demand for Chinese imports could widen Ethiopia’s trade deficit if too much money flows overseas for retail goods.

In 2022, Ethiopia’s imports from China reached 2.92 billion dollars, while exports from Ethiopia to China stood at 175 million dollars, highlighting an ongoing trade imbalance.

“The actual impact depends on implementation and usage,” he said, urging policymakers to adopt a clear regulatory framework for cross-border e-commerce. “Protecting consumers who buy items from abroad is essential, along with encouraging local manufacturers to remain competitive.”

Moustafa recommended that local companies consider partnerships with foreign peers, arguing that forming partnerships may help smaller businesses gain access to global supply chains and technical expertise. He believes inconsistent pricing, customs delays, and unstandardised procedures across border checkpoints have traditionally discouraged many consumers from shopping online, but those concerns may recede if officials streamline import processes.

“Unexpected costs and delays frustrate many consumers,” he said, urging the government to invest in digital customs infrastructure, impose quality control measures on imported goods, and protect strategic domestic industries from being overwhelmed by foreign competition.

Football Clubs on the Brink as Spending Outpaces Sense

Ethiopian football’s premier competition is experiencing a financial crisis. Behind the allure of passionate fans and spirited on-field competition, clubs in the Ethiopian Premier League (EPL) are under the spell of mismanagement, opaque ownership structures, and unchecked spending, which threaten the sport’s long-term viability. Despite weak revenues, teams often overspend, relying on government subsidies and local sponsorships.

Critics say the League is a fragile system that cannot support sustainable growth or genuine player development. A recent study by Gashaw Abeza (PhD), a professor at Howard University, uncovered the League’s instability. Some clubs allocate as much as 80pc of their budget to player salaries, leaving meagre resources for youth programs or modern training facilities.

Sports officials admit the crisis is real.

Adama Ketema Sports Club, one of Ethiopia’s oldest teams, has an annual budget of around 80 million Br. According to its General Manager, Shimeles Mamye, teh Club needs at least 120 million Br annually to stay competitive. More than 70pc of the Club’s current budget goes toward salaries, hotel stays, and food. Monthly player paychecks can climb as high as 200,000 Br. Shimeles says these are partly the result of intense competition among clubs.

Adama Ketema has lost several key players to teams offering higher salaries.

Arba Minch City Club dedicates three-quarters of its 52 million Br budget to wages, while Jimma Aba Jifar and Wolkite City follow similar models. Gachaw’s study found that these spending patterns have made clubs highly vulnerable to financial shocks.

“We’ve lost a lot of players because other clubs offer higher salaries,” Shimeles said.

Despite efforts to secure private backing, Adama Ketema has struggled to attract substantial sponsorship deals. Last year, the Club earned a mere six million Birr from DStv agreements. Attempts to bring in 45 potential investors yielded limited success, leaving the Club heavily dependent on government support. According to Shimeles, the costs keep rising while revenues fail to keep pace.

“We haven’t been able to attract much investment,” he told Fortune. “Costs keep rising, but our finances aren’t keeping up.”

Gashaw’s study pointed to this trend of overspending across the League.

Hawassa Kenema Football Club devoted 12 million Br, 10pc of its budget, to food and hotel expenses.

Fasil Kenema Sport Club, a team founded in the late 1960s, has a 120-million-Br budget. More than half of that amount comes from the Gondar City Administration, in the Amhara Regional State. Additional funding comes from sponsorships with Dashen Beer, DStv television rights, merchandise sales, and other small partnerships that vary year by year. But like many of its peers, Fasil Kenema uses more than 80pc of its budget on salaries, hotels, and meals.

For Abiyot Berhanu, the Club’s general manager, “the allocated budget is never enough.” Player salaries can reach 600,000 Br a month, heightening the financial burden. While the Club wants to attract new investors, domestic businesses often view sports as a risky venture.

“Businesses hardly see sports as a profitable venture,” Abiyot said.

Fasil Kenema hopes to become less dependent on government funding by diversifying its revenue streams, including plans to build a stadium of its own. According to Abiyot, a lack of clear government policies or dedicated budgets for football is to blame. Existing subsidies do not come from annual allocations, making them uncertain. He believes the structure of the football industry needs reform to boost operational efficiency, raise visibility, and improve fan engagement.

Match attendance remains low, and clubs frequently struggle to attract sponsors. DStv is in the final year of its 22.5-million-dollar contract with the League, creating additional uncertainty.

Veteran player Shimeket Gugssa, who appeared for several clubs before joining Ethio Electric, blamed weak international exposure on inadequate training facilities, poor player management, and a lack of professional development. He blamed declining fan turnout, which has made the League less attractive to investment from outside.

Governance issues also loom large.

According to the study, clubs have as few as five to as many as 200 general assembly members. At least three clubs do not disclose their ownership structures. The Ethiopian Football Federation is attempting to address these problems by introducing a Club Licensing Policy this year. The new policy sets financial and structural standards for clubs to meet before registering each season, hoping to strengthen accountability and transparency.

The League hosts 18 clubs, up from the usual 16, after three teams based in Tigray Regional State were reinstated following the civil war. Yet, instability persists there.

Wolkite City FC was suspended due to administrative failures and unpaid debts. Unsettled taxes, outstanding player salaries, and overdue hotel bills worsened the situation. According to the Federation’s Marketing Head, Abraham Gebremariam, Wolkite City’s problems were compounded by a lack of proper financial documents.

“Some clubs don’t have clear structures,” he told Fortune.

Federation officials say they have plans to make clubs independent by requiring them to operate under their board, manage their finances, and obtain business licenses. Abraham disclosed that, in some instances, bank accounts are controlled by team managers or even players, a practice that invites mismanagement. The League’s financial problems, he says, derive from skewed budgets, weak gate revenues, inadequate sponsorships, and little effort to sell club merchandise. Frequent player transfers have inflated wage bills, and the game itself has deteriorated in quality, further weakening fan support.

Kifle Seife, the general manager of the Ethiopian Premier League S.C. conceded that most clubs are in a precarious position. According to him, they lack the planning, branding, and commercial strategies to generate sufficient revenue from ticket sales or merchandising.

“Ethiopian football clubs are generally weak,” he told Fortune, criticising teams for overspending on players. “There could be illegal payment systems at play.’

A directive issued last year seeks to curb these practices, but enforcement has been limited. There were suspicions that some clubs pay players more than what is agreed in their contracts, and investigations on five clubs and 25 players are underway.

A study by the League revealed that clubs collectively spend over 150 million Br on salaries annually, even though the official salary cap is 57.5 million Br. While non-compliance is punishable, few clubs face real consequences. Kifle urged teams to invest in proper training venues and to focus on technical and psychological support for players, areas he believes remain underdeveloped. He estimated that 98pc of clubs are still under the wing of various government agencies, particularly city administrations, making them fiscally dependent.

Officials acknowledge the strain. In the Amhara Regional State, Fasil Kenema and Bahir Dar Kenema receive public funding from their respective city administrations, despite calls for clubs to become more self-reliant.

“Sports funding is straining public resources,” said Mulugeta Leul, director of the Youth & Sports Bureau, the Amhara Regional State.

Efforts to transition clubs away from subsidies have made limited progress, as few teams have shown they can stand on their own.

Only a few clubs, such as Ethiopia Bunna and St. George, operated with limited government support.

According to Ethiopia Bunna’s General Manager, Gezahegn Wolde, it has done so by securing sponsorships from coffee exporters and suppliers, as well as corporates such as Habesha Brewery and Bunna Bank. Merchandise sales and an annual road race also helped.

Policymakers are revising a long-standing sports policy, shifting focus from competition-centred goals to youth development and new infrastructure. Officials from the Ministry of Culture & Sport say a recent study informed the plan to build multi-sport facility centres nationwide and to pursue more comprehensive structural reforms.

A key proposal is to establish a sports fund, pooling resources from both private and public agencies. A dedicated committee would manage the fund’s daily operations, overseeing project approvals and strategies while retaining the authority to terminate underperforming initiatives. Under the revised policy, clubs would be required to demonstrate financial independence.

According to Tesfaye Bekele, the Ministry’s sports development head, clubs have a history of poor financial management and struggle to attract sponsors, citing past instances of contract manipulation.

“Financial misconduct has been a major problem,” Tesfaye told Fortune. “Clubs are in disarray and need urgent reform.”

The updated policy sets minimum budget requirements for clubs and introduces new limits on the number of foreign players. Each team would be allowed a maximum of three foreign nationals and no foreign goalkeepers. According to Tesfaye, directives are also being crafted to enforce “proper club administration” and financial accountability.

“These administrative measures will be enforced,” he said.

Experts contend that if clubs and their leaders hope to turn around their financial problems, they should rein in expenses and invest in player development. Zeru Bekele (PhD), a sports science lecturer at Addis Abeba University, saw how teams under the Premier League suffered heavy losses during the pandemic because of reduced stadium attendance and match-day revenues. He called their ongoing transfer battles “reckless spending,” noting that clubs devote less than two percent of their annual budgets, often in the hundreds of millions, to youth programs.

“Clubs are financially self-destructing,” Zeru said.

He argued that several teams provide fewer than two hours of training before matches, limiting technical skills and players’ marketability abroad. Selling players internationally, he believes, could serve as a long-term revenue source if clubs invested more time and money in development. Yet, despite the mounting evidence that something should change, clubs appear reluctant to cut costs or improve infrastructure.

Zeru insisted that Ethiopian football will remain stagnant and financially precarious without stronger regulatory oversight, mandatory self-governance, and better marketing strategies.

“Clubs need structured financial strategies and disciplined spending,” he said. “Without those, they won’t survive in the long run.”

Bunna Bank’s Asset Surge, Credit Jump Cloak Profit Squeeze During Inflation Strain

Bunna Bank, in its 15th year of operation, has posted noteworthy gains in deposits and total assets in the 2023/24 financial year while revealing mounting challenges in profitability, an outcome that illustrated the increasingly competitive and inflation-affected banking industry.

The Bank’s total assets climbed by 17.5pc to 54.53 billion Br, and deposits rose by 20pc to 43.87 billion Br. Analysts praised these advances as signs that Bunna Bank was effectively expanding its market presence. Yet, its profit before tax fell, uncovering the difficulties in sustaining margins when funding costs rise and broader macroeconomic fluctuations persist.

Earnings per share (EPS) painted a less rosy picture, too. They have dropped over the past three years, going from 341.22 Br in 2022 to 238.44 Br in 2023 and then down to 161.57 Br last year.

“This should be worrying,” said Aminu Nuru, a financial analyst based in Doha, Qatar.

He believes consistent declines in EPS are signals that the Bank’s profitability issues could persist.

However, not all shareholders seem troubled by the downward trend. A founding shareholder, Tesfaye Fente, believes the focus should be on the Bank’s sustainability rather than share earnings.

“It’s a Bank with strong potential, lower staff turnover, and stable management,” Tesfaye told Fortune. “When reserves are held, and investments are made, short-term pressures on profitability might not necessarily harm the institution over the long run.”

He attributed some of his optimism to the stability of the Bank’s management team.

Since Bunna Bank was incorporated 14 years ago with 175 million Br in paid-up capital raised from around 8,000 shareholders, Mulugeta Alemayehu, president of the Bank, has become only its fourth president. His tenure began in 2018, after a stint at the state-owned Commercial Bank of Ethiopia (CBE), and he has since overseen Bunna’s capital growth and strategic decisions.

Under Mulugeta’s stewardship, who graduated from Addis Abeba University in accounting and business administration and previously served CBE as a vice president, Bunna’s paid-up capital grew by 12.8pc to 4.8 billion Br last year alone. The Capital Adequacy Ratio (CAR) for the same period was 14.44pc, exceeding the regulatory requirement.

However, the strain on profitability emerged in the Bank’s returns on assets. Bunna Bank’s net profit of 730.4 million Br translated into a return on total assets of a mere 1.34pc, showing that while the balance sheet has grown, the conversion of these assets into earnings has not kept pace. Compounding this pressure is the Bank’s heavy reliance on interest income, which accounted for 84.6pc of total earnings, leaving Bunna Bank particularly exposed to the rising deposit expenses that made up 40.6pc of its total operating costs.

The surge in fixed-time deposits, which saw interest on such accounts rise sharply, has been a major driver of these higher funding expenses. Fixed-time deposits more than doubled, going from 2.07 billion Br to 4.25 billion Br, driving interest expenses on these deposits up to 793 million Br.

Bunna Bank’s senior executives acknowledge these pressures.

“Some expenses are permanent,” said Mulugeta, referring to staff salary adjustments and other recurring costs. “And human capital is an asset.”

Consistent with trends in the wider industry, wages and benefits for employees steadily climbed. Nearly half of its operating expenses were dedicated to personnel and administrative costs, substantial investments in human capital and operational support. While this rise reflected a commitment to retaining talent, it also squeezed margins. The Bank’s total operating income grew by 8.3pc to 5.15 billion Br from the previous year, but this did not prevent a 31.6pc drop in gross profit to 930 million Br. Net profit, too, slipped by 23pc to 730.4 million Br during the same period.

Mulugeta attributed the pressure on interest income to the credit growth cap Central Bank regulators imposed on the industry.

Given that interest income made up 84.6pc of total income, any constraint on lending directly affects the Bank’s earnings power. Though its revenue rose 20pc from the previous fiscal year to reach 8.03 billion Br, the interplay of higher deposit costs, regulatory credit growth restrictions, and personnel expenses has cut deeply into the bottom line. Mulugeta conceded that the annual pay increases for staff have a lasting impact on the Bank’s cost structure.

While Bunna Bank has been relatively measured in branch expansion — adding 2.8pc more branches to 474 and expanding its permanent workforce by 72 employees (a 1.8pc rise) to 4,172 — the incremental costs still proved substantial in an environment of rising operating expenses.

“We’ve consolidated some branches for efficiency,” Mulugeta said, echoing the focus on rethinking the Bank’s branch-centric approach and streamlining operations.

However, the Bank generated considerable returns on its human capital, serving as a critical benchmark for assessing workforce productivity, yielding an average of 175,000 Br. Total deposits mobilised by an average branch reached 92.5 million Br.

Zena Assefa, a branch manager at Bunna Bank’s headquarters on Africa Avenue (Bole Road), observed that the liquidity crunch, coupled with shifting policy mandates, were a challenge last year. Yet, he maintained that his branch surpassed foreign exchange generation and deposit mobilisation targets.

“The proximity to the headquarters and its location has made our branch convenient for corporate customers,” Zena told Fortune.

According to Zena, partnering with fintech firms is a key objective in the new fiscal year, and he expects the Bank’s digital transformation strategy to propel further growth. Mulugeta reinforced this view, crediting ongoing partnerships with fintech companies such as Kifiya, Kacha, and Telebirr with accelerating digital transformation.

“Local partnership is vital to solve corporate issues,” he told Fortune.

Mulugeta and his senior executives’ approach to credit risk management has so far been successful. The non-performing loan (NPL) ratio was at 3.84pc, below the five percent regulatory threshold set by the National Bank of Ethiopia (NBE). With loans and advances of 38.87 billion Br, the Bank strongly focused on lending. Still, its overall leverage was high, indicated by an asset-to-equity ratio of 7.72, which boosted any potential earnings downturn if asset quality weakened.

Bunna Bank’s capital-to-asset ratio of around 13pc remained comfortably above the minimum standards required by regulators, though it was not as high as some of its peers.

Bunna Bank remains a relatively smaller player when measured against major financial institutions. The state-owned Commercial Bank of Ethiopia (CBE) reported asset growth of nearly 48pc and boasted a massive deposit share that dwarfs Bunna’s. Awash Bank, another leading private bank, maintained a wider retail and corporate reach, translating into stronger deposit mobilisation. Dashen Bank and the Bank of Abyssinia, among the larger private banks, pursued more aggressive lending strategies and have broader footprints, enabling them to generate higher lending volumes and foreign exchange business.

Bunna Bank, by contrast, has adopted a more conservative posture in its foreign currency operations, mirroring its narrower capital base and smaller branch network.

Its loan-to-deposit ratio has drawn attention to its potential risk implications. At 102.8pc — loans of 38.1 billion Br against 37.1 billion Birr in deposits — the ratio raised the eyebrows of industry analysts. Such a high ratio can constrain a Bank’s ability to meet withdrawal demands and force it to tap costlier borrowing sources.

“This ratio is a crude indicator,” said Mulugeta. “If the deposit structure is stable, the ratio may not be as alarming as it appears.”

According to the President, three-quarters of the total deposits are savings accounts, and historically, this has shown steady behaviour.

However, Aminu cautioned that relying on more expensive funding avenues and the possibility of liquidity bottlenecks cannot be ignored.

Bunna Bank’s loan book was heavily concentrated in international trade, with about 41.5pc allocated to import and export financing. The remaining portfolio was spread across domestic trade and services (18pc), building and construction (12.1pc), industry (7.1pc), and other sectors (21.3pc). According to Aminu, the Bank’s dependence on global trade could expose it to volatility from currency fluctuations and shifts in international demand.

Mulugeta acknowledged the importance of diversification but voiced confidence that his team’s case-by-case management approach to clients would keep credit quality in check.

“We’re looking into it,” he told Fortune.

The Bank’s Board Chairman, Alemayehu Sewagegn, guided it toward a five-year strategic plan focused on digital, human resources, and information technology. Shareholders were told that these plans would include policies targeting customer protection. Mulugeta backed this vision. He believes Bunna Bank’s tagline — “Bank of Visionaries” — stands for a service approach that is both customer-centric and value-based.

Cheap Imports, Tax Burden Weaken Demand, Choke Cotton Industry

Ethiopian cotton producers are struggling to sell their goods as Value-Added Tax (VAT) hikes prices and local demand plummets. To survive, many are now exploring foreign markets.

Local producers also face stiff competition from cheaper imports. While Ethiopian cotton sells for 185 Br per kg before VAT and 212.75 Br with VAT, textile manufacturers are pushing for a price drop to 160 Br per kg.

However, imported cotton is being sold for 210 Br per kg, making it a more attractive option for buyers.

The Ethiopian Cotton Association (ECA) says that it is supporting local producers to export their commodity and integrate them into global trade. As a result, a total of 300 tonnes of cotton has already been exported, with another 300 tons set to follow.

Tsegaye Abebe, executive director at the Association, says VAT exemptions once helped sustain the sector, but recent policy changes have removed these benefits, making trade difficult.

“The market is cold as ice,” he said.

Tsegaye warns that the 15pc price increase from VAT has made it nearly impossible to sell cotton, as textile manufacturers cannot absorb the additional cost.

He says cotton production is shrinking annually, with the entire value chain disrupted.

“If the situation continues, we may have to import cotton instead,” he said. “Farmers will be forced to switch to other crops.”

Cotton prices have soared from last year’s 130–140 Br per kg to 185 Br before VAT and 212.75 Br after VAT. Producers say rising production costs, labour shortages, and higher fuel prices are making it harder to stay profitable.

Cotton growers are struggling with soaring expenses. Land preparation costs jumped from 800 Br to 2,000 Br per hectare, with unused land preparation skyrocketing to 28,000 Br per hectare, and irrigation costs surged due to fuel price hikes, with pump operation expenses rising from 10,000 Br to 25,000 Br per hectare.

Machinery prices also sharply increased, tractors now cost 11 million Br, up from 3.8 million Br, while a single tractor tyre has risen from 80,000–100,000 Br to 280,000 Br.

Farmers also say pesticide sprayers more than tripled in price, from 12,000 Br to 42,000 Br, ginning costs increased from 3–5 Br per kg to over 8 Br per kg, and transport costs ballooned, the 300-km trip from Gewane to Adama went from 280–300 Br per quintal to 555–625 Br per quintal.

These skyrocketing expenses have left producers struggling, with large amounts of unsold cotton sitting in storage.

The Association, which represents over 65 companies, has formally requested the Ministries of Industry, Finance, and Agriculture to exempt cotton production and sales from VAT.

The Association argues that smallholder farmers, who operate on thin margins, cannot absorb the extra tax. VAT makes local cotton less competitive, increasing costs for domestic textile manufacturers and international buyers. Countries like India, Pakistan, and Bangladesh impose little to no VAT, giving them an edge in global markets.

In the 2023/24 production year, the country cultivated 84,000 hectares of cotton, about three percent of total agricultural land. Out of it, 30pc of production relied on irrigation, while 70pc depended on rainfall.

Smallholder farmers contributed 26pc, while large-scale producers accounted for 74pc. Total production reached 55,000 tonnes, with an average yield of 1.8 tonnes per hectare.

The country has an estimated three million hectares of land suitable for cotton cultivation, with the potential to produce 5.5 million tonnes annually. This could generate over 10 billion dollars in revenue and create more than 2.4 million jobs.

The Ethiopian Textile & Garment Manufacturers Association (ETGAMA) has complained about VAT’s impact on cotton prices. Goshu Negash, the Association’s president, says that manufacturers are forced to absorb the cost difference, as market conditions do not allow price increases.

“It is not practical to raise prices right now,” he said.

Hiskias Chane, marketing head at Bahir Dar Textile S.C., said the company has not sold cotton yarn in two months due to rising procurement costs.

“We expect it to get worse,” he said.

Desalegn Abebe, the company’s purchasing head, says raw cotton prices have surged from 20–30 Br per kilogram to 50–60 Br per kilogram. He attributes this to higher production costs and macroeconomic changes.

Agazi Gebreyesus, ETGAMA’s secretary general, argued that exporting raw cotton contradicts the government’s policy shift towards import substitution. Over the past decade, the country has faced a massive trade deficit in cotton, with 1.1 billion dollars in exports compared to 5.6 billion dollars in imports, a 4.5 billion dollars shortfall.

He warned VAT would strain manufacturers’ working capital, erode price competitiveness, and encourage illegal trade. Textile and garment companies lack the financial capacity to buy cotton in bulk, while cotton producers prefer immediate sales.

Agazi says cotton producers’ focus on exports could severely impact the local textile sector, which already struggles to meet demand.

“We need to focus on value-added exports,” he said.

Ameha Woldu, finance head at Amni Bara Ginning Manufacturing, said the previous VAT exemption gave the industry a competitive edge. Now, processed cotton is piling up in warehouses, with 15,000 quintals unsold due to a sharp drop in demand.

“They are desperately looking for buyers,” he said.

Textile manufacturers say they have never dealt with VAT in the cotton sector before.

Commercial farmers like Demela Fenta are planning to exit the market. His company, Aweke Fenta Agridevelopment, harvested 1,500 quintals from 400 hectares, but the cotton remains unsold at the ginning factory.

“In my 20 years in the sector, I’ve never seen anything like this,” he said. “It’s a waste of time and money.”

His farm is shifting to teff and maize next season, as cotton production becomes unsustainable due to rising costs and weak local demand.

Samson Assefa, lead executive for cotton development at the Ministry of Agriculture (MoA), said the government is working to link farmers with manufacturers.

He says that areas like Gewane, Metema, Gamo Gofa, Wolaita, and South Omo have ideal climates for cotton, with large-scale farming also in Gambella and Benishangul-Gumuz.

In the 2024/25 production year, the country harvested 1.7 million quintals of cotton from 107,000 hectares, with 6,000 hectares under irrigation. Of this, 65,000 tonnes were processed, a 5,000-tonne increase from the previous year. The country has 20 operational ginneries, with plans to add 10 more, according to the MoA.

Tewedaj Mohammed, acting director of legal affairs at the Ministry of Finance (MoF), clarifies that tax exemptions are decided by the Council of Ministers, with no new exemptions beyond those outlined in existing laws.

Biruk Nigussie, a tax expert, argued that while VAT boosts exports, it discourages local consumption. He recommends shifting to value-added exports and VAT holidays and duty-free imports for value-added sectors, as demand typically rises with exemptions.

Pharma Manufacturers Push for Tripartite Loan Fund to Boost Production

Pharmaceutical manufacturers are seeking greater loan access to ease financial strain caused by high operational costs and delayed payments.

They have requested a seven-billion-Birr loan from the Commercial Bank of Ethiopia (CBE) to open deferred letters of credit, ensuring a steady supply of raw materials. Manufacturers and suppliers have formally proposed a tripartite agreement to establish and manage a fund that would improve access to pharmaceutical inputs and strengthen local production.

The agreement outlines clear responsibilities: the Ethiopian Pharmaceuticals Supply Service (EPSS) would procure medicines, manufacturers would produce them, and the bank would manage the fund and facilitate letters of credit.

Macroeconomic reforms introduced last year have made it harder for manufacturers to access foreign exchange. Banks now require 100pc capital deposits for letters of credit, severely restricting working capital for local producers.

Daniel Waktole (MD), president of the Ethiopian Pharmaceuticals & Medical Supplies Manufacturers Association (EPMSMA), acknowledged that while reforms have benefits, they have also strained cash flow, making it difficult to secure raw materials.

“Manufacturers’ working capital is being ripped apart,” he said.

However, the Ethiopian Bankers Association (EBA) defends the new banking policies. Demissew Kassa, the association’s secretary general, said banks stopped providing suppliers’ credit after previous failures in payments put depositors’ money at risk.

“This was not a profitable undertaking for banks,” he said. “It needed an overhaul.”

Pharmaceutical producers have requested an agreement that would grant them short-term loans to import inputs and fulfil their supply commitments. The EPSS has already signed a 10-billion-Birr agreement with local manufacturers to deliver 738 types of medicines within six months. However, assessments show that current production capacity stands at just 36pc.

Solomon Nigussie, deputy director general of EPSS, confirmed ongoing discussions with state-owned banks, including CBE and the Development Bank of Ethiopia (DBE), to secure short-term loans.

“We’re on the manufacturers’ side,” he said.

EPSS has already facilitated 780 million Br advance payments, but manufacturers need access to the remaining 70pc from commercial banks.

Discussions with CBE are progressing, with board chairman Ahmed Shide expressing optimism. The bank is considering opening loan windows for letter-of-credit access.

“We are moving closer to the agreement,” Solomon said.

Solomon says that long-standing delivery delays in the industry have worsened due to working capital shortages and the slow, exhausting process of importing raw materials, issues that remain unresolved.

“The import process is long and tedious,” he said.

He called for support from banks and the Ethiopian Customs Commission (ECC) officials. Last year, manufacturers supplied only 44pc of the 4.5 billion Br worth of medicines agreed upon with the EPSS, despite receiving deadline extensions.

EPSS plans to procure 782 types of medicines. Solomon says key measures were taken to support local manufacturers, including increasing their market share from eight percent to 37pc, providing 30pc advance payments, and offering a 25pc price preference.

A recent EPSS assessment revealed gaps in supply. Medical supplies have the strongest base, with 60pc adequacy and a large pool of registered suppliers. Medical devices follow at 45pc. However, vaccines are critically scarce at zero percent, while leprosy and anti-cancer medicines remain alarmingly low at 2.22pc and 5.56pc, respectively.

To address these gaps, EPSS introduced a new tender requiring local manufacturers to price their bids in foreign currency and independently source raw materials. To facilitate this, EPSS offered a 30pc advance payment, totaling three billion Birr, against unconditional bank guarantees. However, financial arrangements are still under negotiation.

Manufacturers say they face serious problems in securing these unconditional bank guarantees, citing complex and time-consuming procedures. Daniel, also general manager of Kiltich Estro Biotech Plc, stated that manufacturers have formally requested EPSS to accept conditional guarantees as an alternative to unlock advance payments.

However, Solomon dismissed this request.

“They are asking for something unrealistic,” he said. “There must be a permanent guarantee that the funds are secure.”

Ethiopian Pharmaceutical SC, the country’s oldest pharmaceutical manufacturer with 60 years in operation, has been vocal in its demands through the industry association.

Shimelis Mamuye, its general manager, stated the need for easier access to foreign currency for raw material imports. He also acknowledges recent policy measures that have helped stabilise the struggling sector. However, he warned that exchange rate fluctuations could lead to additional payments during letter-of-credit (LC) clearance.

He also says depositing 100pc of import costs upfront is a major hurdle that could cripple operations by making raw material imports financially unsustainable.

Shimelis recalls a tripartite agreement a decade ago between the DBE, EPSS, and several factories. The arrangement used procurement contracts as collateral to ease working capital shortages, enabling manufacturers to operate more effectively.

His company recently won a 300-million-Birr tender from EPSS to import two types of medicines. It primarily produces tablets, syrups, ointments, and creams, with an annual capacity of 500 million tablets, 300 million capsules, and 10 million ointments. Currently, it operates at only 50pc capacity. He attributes this underperformance to foreign exchange shortages and limited working capital.

The Ministry of Health (MoH) enlisted McKinsey & Company, an American consulting firm, last year to conduct a four-month study funded by the UK. The study aims to establish a sustainable domestic supply chain capable of covering 60pc of medical products and technology needs within five years.

Officials say that the import substitution is critical for long-term stability, calling for affordable, locally available medicines to transform the sector. Birhanu Wolde, the Ministry’s finance manager, stated that there are ongoing policy reforms designed to strengthen domestic manufacturing.

“We have provided support at every stage,” he said.

Despite enjoying a 25pc price preference over international suppliers, local manufacturers have repeatedly failed to meet contractual obligations. Officials cite low production capacity, supply chain disruptions, and insufficient investment in research and development as key factors.

Worku Lemma, a financial expert, argues that banks are navigating a dual problem, liquidity shortages and a volatile foreign exchange market.

A recent National Bank of Ethiopia report reveals that liquidity is increasingly fragile. If the top 10 depositors at each bank withdrew their funds simultaneously, 20 out of 29 commercial banks would fall below the minimum liquidity threshold. This shows a worsening trend, with three more banks vulnerable compared to last year.

“Banks are facing severe liquidity problems,” Worku said.

He argued that banks’ current measures to address liquidity shortages are harming local businesses. Instead, he urged them to explore alternative financing solutions, improve the business climate, offer deferred payment options, and expand lending capacity.

Government Proposes Emergency Medical Fund for Road Accident Treatment

The Road Safety and Insurance Fund Service (RSIFS) plans to establish an Emergency Medical Services Fund (EMSF) to cover treatment costs for road accident victims. The fund will be financed through contributions from insurance companies. A new directive, currently open for stakeholder feedback, proposes raising the maximum emergency medical expense per victim to 15,000 Br, up from the previous 2,000 Br.

Each insurance provider will be required to contribute three percent of their gross premiums from third-party auto insurance policies. The RSIFS will also contribute three percent of the funds collected from insurance providers.

The Ministry of Health (MoH) will oversee the fund’s utilisation. Once regional health bureaus have used 75pc of their allocated funds, they can request additional funding from the Ministry, which will assess and approve further allocations. The Ministry is also responsible for ensuring that the funds are used appropriately and in compliance with regulations. It provides guidance and support to regional health bureaus to ensure effective fund management.

Established by a Council of Ministers regulation in 2022, the RSIFS has recently introduced revised premium rates and higher compensation amounts to improve emergency medical services for accident victims. Premiums have increased by up to 150 percent, and a digital system for recording and reporting accidents is being implemented.

Hospitals and health centres providing emergency care to road accident victims are entitled to reimbursement for their expenses.

Unlike previous regulations, the new directive allows a medical professional or emergency medical coordinator to complete a Vehicle Accident Medical Evidence form in the absence of a police report.

Federal and regional authorities had struggled to coordinate emergency medical services for accident victims. The revised directive intends to address inefficiencies and improve service accessibility.

Chala Feyissa, lead executive of the Service’s post-accident report department, says that under the previous system, 18 insurance companies, including the Fund itself, were responsible for reimbursement. Payments required constant mechanisation to process claims for injuries of all severities. Emergency treatment was privately funded by insurance companies, but this approach proved insufficient.

One of the main problems was ensuring accurate accident reporting for reimbursement. The new directive allows hospitals to verify and administer treatment, with expenses later reimbursed by the Fund. However, if criminal activity is suspected, the federal police take over the case.

Last year, the Service paid 33 million Br to hospitals and health centres nationwide, covering 16,000 road accident victims. An additional 69 million Br in reimbursement requests from regional health bureaus are currently awaiting processing.

Degesew Derso, head of emergency and critical care services at the MoH, revealed that fewer than 750 health centres have received third-party insurance reimbursements out of 30,000 healthcare facilities nationwide.

He says that there is a mismatch between the low vehicle-to-population ratio, about one vehicle per 100 people, and its high rate of road accidents. The sub-Saharan Africa accounts for 90pc of the world’s road injuries.

Hospitals face reporting problems, often requiring police confirmation before processing accident claims, as vehicle accidents are frequently treated as criminal cases rather than civil incidents. These payment and reporting hurdles have made hospitals reluctant to accept third-party insurance patients.

In the 2023/24 fiscal year, the MoH spent 25 million Br to cover insurance services for 35,315 road accident victims. The Ministry reports that 14,320 cases in the past six months are still awaiting reimbursement.

The new directive mandates the digitalisation of third-party insurance payments. This year, the Service secured 2.4 billion Br through a digitised system, covering 510,000 vehicles under third-party insurance.

Assefa Addisu, advisor to the State Minister for Transport & Logistics, says that there is a need for a sustainable emergency treatment fund. He acknowledged that current hospital reimbursement mechanisms for accident-related treatments are inadequate.

He argues that there has to be a dependable resource mobilisation mechanism and the need for an organised fund to ensure reliable emergency care for both hospitals and patients.

Historically, third-party insurance payments were made to the RSIFS, which the MoH then disbursed to regional and city governments before reaching the healthcare system, a slow and cumbersome process.

The new draft directive aims to digitise the process, allowing direct reimbursements by the Fund. The MoH would intervene if 75pc of the Fund’s resources are depleted.

According to Assefa Addisu, the problem is compounded by hit-and-run accidents and hospitals that refuse third-party insurance treatments due to reimbursement delays. Some hospitals also limit treatment and medication. Research shows that 50pc of road accident deaths result from inadequate medical care, including poor ambulance services.

“It’s one of the reasons we raised the treatment ceiling to 15,000 Br,” said Assefa.

For the past year, the Ministry of Transport & Logistics (MoTL) has been developing an accident data management system for 1.3 million dollars with input from the MoH and the Service. The system is ready for implementation.

Fikadu Addisu, reimbursement focal person at Mohammed Aklie Memorial Hospital, located on the high-traffic Djibouti-Dire Dawa corridor, reported that the hospital handles up to 100 emergency accident cases per month during peak seasons but struggles to receive reimbursements. It has not been reimbursed in over a year, with a 300,000 Br claim pending for six months due to regional funding shortages.

Fikadu says that most accident victims lack traffic or police reports, complicating reimbursement claims.

“It’s the patient’s right to receive treatment, so we cannot refuse care,” he said.

Government hospitals across the country face a severe financial crunch. Delayed reimbursements drain working capital and worsen debt repayments to the Ethiopian Pharmaceutical Supply Service (EPSS).

However, there are worries that hospitals might refuse emergency treatment and will face no accountability, as no authority has been clearly designated to oversee and question them. This leaves accident victims struggling to access healthcare.

The lack of a complaint reporting system also makes it difficult to hold hospitals accountable for malpractice.

Daniel Terefe, head of the contract & reinsurance department at Ethio Life Insurance, stated that insurers previously paid 13pc of their premiums to the ERSIS, three percent for third-party insurance emergency treatment and 10pc for non-medical reimbursements.

Last year, 18 insurance companies contributed 500 million Br to the Service. Daniel says that the new premium increases per vehicle forced many cars off the road, with owners parking them at home or in garages during the first two quarters. As a result, the number of insured vehicles dropped by up to 40pc. However, necessity has driven many owners to resume paying premiums.

The directive is currently open for stakeholder feedback. Ethio Life has submitted recommendations, including: defining non-operational vehicles as uninsured; clarifying premium rates for electronic and semi-electronic vehicles; and expanding payment options, as the directive only allows Telebirr for Fund contributions.

Research from last year shows various problems in the insurance sector, including: unfair compensation awards, delays in claim settlements, confrontational negotiation approaches, frequent claim denials, lengthy litigation processes, and the absence of an independent referee for disputes.

A study found that 49.6pc of pedestrian accident victims sustained injuries, with motorcycles involved in 42.9pc of cases. More than half did not receive pre-hospital care. Upon arrival at medical facilities, 38.7pc were in critical condition, with 71.4pc requiring surgery. While 84.9pc were discharged with improvement, 12.6pc did not survive.

The MoTL implemented a digital system last year, allowing traffic police to access detailed vehicle information by inputting a license plate number. The Ministry reports spending 23 million Br on stationery annually, and the digital system aims to cut these costs.

With the new system, all stakeholders can access accident data instantly, reducing investigation time. Officials argue that manual reporting often led to attempts at system manipulation.

Insurance expert Tamiru Degelo sees the directive as a positive step toward a separate accident fund. However, he says there needs to be immediate reimbursements to hospitals to ensure effective treatment.

While reimbursement amounts have increased, so have healthcare costs due to inflation. He called for a strong reporting mechanism to speed up treatment and payments.