JAMI Ushers in a New Era of Creator Monetisation with First Multi-Currency Tipping Platform

A transformative shift in  digital economy has begun with the official launch of JAMI, the country’s first multi-currency digital tipping platform, designed to empower content creators through seamless, global monetisation.

Unveiled at a high-profile event at the Hyatt Regency in Addis Abeba, JAMI marks a milestone in the intersection of fintech and the creative economy. Developed in partnership with Arifpay Financial Technologies, a key player in digital payments sector, the platform enables artists, educators, influencers, and streamers to receive instant, secure financial support from audiences around the world, regardless of currency or location.

“This is more than a tool, it’s a lifeline,” said Natan Damtew, Founder and CEO of JAMI. “JAMI empowers creators to connect with their audiences and receive immediate financial backing, sidestepping the limitations of traditional payment systems.”

At its core, JAMI is engineered for simplicity and impact. Each user receives a personalised microsite hosted on jami.bio, effectively functioning as a digital business card. These sites aggregate the creator’s online presence and provide direct tipping access via web links or QR codes. With support for both local and international currencies, the platform breaks down geographic and financial barriers, allowing a musician in Addis Ababa to receive support from fans in London or a teacher in Dire Dawa to connect with the Ethiopian diaspora in Toronto.

Instant, real-time transactions are made possible through Arifpay’s secure and scalable infrastructure, which supports both high-volume domestic and cross-border payments. “JAMI is a meaningful addition to digital ecosystem,” said Girum Getachew, director of Partnerships at Arifpay. “It provides creators with the financial tools to sustain their work and broaden their reach.”

While JAMI’s immediate value lies in enabling direct digital income, its broader mission encompasses financial inclusion and digital entrepreneurship. The platform is being heralded as a catalyst for cultural and economic transformation that empowers  burgeoning creative sector with autonomy and sustainability.

The launch event featured live demonstrations, creator showcases, and instant registration opportunities, reflecting JAMI’s commitment to accessibility and its immediate impact. Attendees were given tools to begin monetising their work on the spot, underscoring the platform’s promise of real-time empowerment.

Backed by Arifpay and grounded in user-centric design, JAMI offers a robust solution to the long-standing challenges faced by creators in the Global South: limited monetisation tools, payment system fragmentation, and financial exclusion. By enabling instant, secure, and multi-currency transactions, it sets a new benchmark for creator support in Ethiopia and beyond.

As digital economies rise and the lines between culture, content, and commerce blur, JAMI stands as a pioneering force, redefining how creators earn, engage, and thrive in a global marketplace.

Kerchanshe Group Launches 3 Million Seedling Distribution Initiative in Support of Sustainable Coffee Farming and Ethiopia’s Green Legacy

Kerchanshe Group, in collaboration with its charitable wing Buna Qela, has launched a bold initiative to distribute 3 million improved coffee seedlings to farmers across the Oromia and Southern Nations, Nationalities, and Peoples’ (SNNP) regions. This impactful program supports both sustainable coffee farming and aligns with the national Green Legacy Project, Ethiopia’s ambitious reforestation and climate resilience campaign.

The distribution began in Kochere and Bonde, where farmers welcomed improved, sunlight-tolerant seedlings capable of producing up to 30 quintals per hectare — far above the national average. The initiative then extended to Adola and Hama Kebele, reaching more communities with high-yielding, climate-resilient coffee plants. Most recently, the program entered its second phase in Me’ee Bokko Woreda, with further distributions planned as part of the continued commitment to reach thousands of farmers across multiple districts.

These improved coffee varieties offer remarkable productivity: up to 62 quintals per hectare with irrigation, and 35 quintals per hectare without irrigation. Through this, Kerchanshe is actively contributing to the growth and transformation of Ethiopia’s coffee production, focusing not just on quantity but also on quality and sustainability.

This program is powered by 10% of Kerchanshe Group’s annual profit, reinvested into society through Buna Qela Charity Association. It includes not only the free distribution of seedlings but also training and technical support, empowering farmers with the knowledge to plant, nurture, and sustainably harvest the crops.

By combining commercial expertise with a deep social mission, this initiative is a testament to Kerchanshe Group’s vision of social impact, environmental stewardship, and economic empowerment. The effort supports both the local coffee economy and Ethiopia’s long-term Green Legacy goals, making a tangible difference in climate adaptation, rural development, and the future of Ethiopian coffee.

URBAN BOOM MEETS DRAINAGE BUST

First came the trickle, then the torrent. On a humid night in late March, a low-lying neighbourhood on Addis Abeba’s southeastern fringe watched its usually placid stream surge over the banks, punch through masonry walls and fill every room in sight. Textbooks dissolved, family photographs warped, and a day labourer who had spent years building his house found himself sleeping on a relative’s floor, waiting for the next storm. Residents insist the heavens are only half to blame. For months, they had watched lorry-loads of soil and cement waste slide off construction sites upstream, while factories let oily effluent creep downstream after dusk. When the rain arrived, the clogged channel could not cope. City officials, who count about 400 people at risk in this pocket alone, accept that drainage is blocked and defences are absent. Their solution is to move families elsewhere, a prospect as grim as the floods themselves.

The capital’s vulnerability is carved into its geography. Three rivers — Bantyeketu, Kebena and the larger Akaki — thread a basin hemmed by hills, their tributaries draining everything from forested slopes to corrugated-iron roofs. Yet, those waters double as rubbish tips and industrial outlets. Stretches of the Akaki are now deemed “dead”, while its smaller branch is an open sewer. A United Nations-backed rescue plan is on the drawing board, but for now, the city irrigates vegetables with polluted water and hopes groundwater will not be tainted in turn. Concrete, not rainfall, is the real accelerant. Nearly a 10th of new buildings over the past decade have risen inside what hydrologists describe as the 100-year floodplain, and four-fifths of residents live in informal settlements where drains are scant and insurance is mythical. When prolonged drought bakes the soil, a condition scientists say will be 53pc more common by mid-century, downpours simply bounce off the hardened surface. In March 2023, a single cloudburst tore a riverside house from its foundations, drowning a mother and her children before neighbours could reach them.

The engineering meant to spare the city is scarcely fit for purpose. Many canals were dug for a five-year storm; manholes are identical in size and spaced too far apart. Officials boast of clearing 400Km of drains in nine months, however, uncovered manholes invite fresh rubbish; more than 15,000 people remain in zones officially classed as high-risk. Parliament has tightened penalties for dumping waste into rivers, but enforcement is weak and overlapping bureaucracies guarantee delays. Climate projections offer little comfort. Daily temperature peaks are expected to climb by 1.7°C by the 2040s, allowing hotter air to store, and then unleash, greater volumes of water. According to the city administration’s count, the city’s population is nearly five million. It is projected to almost double within a decade, erasing more green spaces that might have soaked up the runoff. Unless drainage is upgraded and construction in floodplains curbed, Addis Abeba’s rainy-season anxiety seems destined to harden into a permanent state of siege.

When the Rains Come for the Poor

Yohannes Geta spent two years watching the Wyen Amba River trickle past his home in Bole District, Wereda 11, on the southeastern outskirts of the capital. The river sometimes carried soil and construction debris, which he assumed came from upstream building sites.

By late March, as dusk fell on a humid night, that quiet current transformed into a “violent surge,” he recalled. Water foamed over the riverbanks, poured through the cracks in his masonry walls and flooded every room.

“The river overflowed and flooded through our house,” Yohannes said. “We lost everything. All of my children’s textbooks, school records, notes, and photos were destroyed.”

Yohannes, a father of four who works as a day labourer on construction sites, had spent years building the home that sheltered his family. That single night washed it all away. He now sleeps in a relative’s house and fears returning as the rainy season approaches.

“I’ve been displaced from the house where I married my wife and raised my children,” he told Fortune.

He is convinced the flood owed less to the clouds above than to what was clogging the riverbed. In the months before the deluge, he watched piles of soil and cement waste slide off nearby construction sites and settle in the channel. When heavy rain came, the river, blocked by sediment and debris, could not carry the water downstream. It poured into homes.

Some neighbours fled. Others, like Kassa Pola, stayed only because they had no choice.

“We’re scared when it rains, but we have nowhere to go,” Kassa said.

He pointed downstream, where the water sometimes glints with chemicals after dark. He blamed factories in the area for dumping industrial waste into the river when no one was watching. Several garment and textile plants are nearby, and the Lemi Industrial Park is not too far off. The city administration also has a biological sewage treatment facility and a waste disposal place across the street from the Park.

“The sewage system is clogged with mud,” he said. “The water has nowhere to go but our homes.”

Local officials do not dispute the charge of blocked drainage or the lack of flood defences.

Desisa Tona, director of Disaster Risk Research & Investigation at the Addis Abeba Fire & Disaster Risk Management Commission, counted some 400 residents at risk in this neighbourhood alone. Officials at the Urban Beautification & Green Development Bureau say they are working to relocate these families. Several houses line the riverbanks and gullies without building permits, according to Girma Seyfu, head of the Bureau.

A torrent of muddy water sweeping through Addis Abeba is hardly unprecedented. In mid-August 2021, one of the city’s fiercest floods in decades swallowed streets, tore through tin-roofed homes and claimed at least seven lives. Rainfall forecasts warned of heavy storms through August 21, but for many residents, it was already too late. Whole neighbourhoods spent days picking through the wreckage, tallying the cost of what officials described as “extensive damage.”

The city’s vulnerability is rooted in its geography and its growth. Three rivers — the Bantyeketu, the Kebena and Akaki — thread through a basin ringed by hills. The Akaki River, the city’s largest and a tributary of the Awash, slips beneath the ring road at dawn carrying more plastic bags than fish. Once it ran for 53Km from the highlands to the Aba-Samuel reservoir. Today, researchers call parts of it “dead rivers,” while the Little Akaki, poisoned by sewage and industry, is labelled an “open sewer.”

However, the Akaki system remains the city’s lifeline. Its two branches, Great and Little, and a network of feeders, Kebena, Kechene, Kurtume, Yeka and Ginfile, drain neighbourhoods from forested hills to concrete flats. In Kolfe Keranio District, home to 546,219 people, the Kurtume stream doubles as a boundary and dumping ground. The Kebena catchment tells the story of urban sprawl. Denkaka is 44pc farmland, Little Kebena 60pc forest, Ginfile 90pc streets and roofs.

All these surfaces bleed waste into the waterways. Industries pipe untreated discharge; households toss rubbish; farms rinse pesticides. Researchers warn that the Akaki River system has become a waste disposal site, leaving downstream families such as Yohannes and Kassa to drink the poisoned flow and gardeners to irrigate vegetables destined for city tables. Officials plan to tap groundwater to fill the gap, but the pollution will seep below without cleaning the surface system.

Still, life goes on. The Akaki-Aba-Samuel wetlands host as many as 20,000 migratory waterbirds each season, earning protection from BirdLife International, proof, perhaps, of what could be reclaimed. The United Nations Environment Programme and the Ethiopian Cleaner Production Centre have launched the Akaki River Initiative, hoping to craft an integrated rescue plan for what they call Ethiopia’s most polluted river.

Urbanisation has poured concrete and corrugated-iron roofs into the basin at an astounding pace. Over the past decade, nearly 10pc of all new construction rose inside what hydrologists call the present-day 100-year floodplain. Informal settlements, a.k.a Chereka Bet, bear the heaviest burden. Roughly four in five residents live in these quarters, where drainage is scarce and insurance nonexistent. Researchers estimate that 10pc of buildings in informal districts would be inundated in a 100-year flood, compared with 9.5pc elsewhere.

Droughts bake the soil until it turns to brick, so when rain finally falls, it runs off instead of soaking in. Models predict that extreme drought conditions will be 53pc more common between 2040 and 2060 than they are today. Addis Abeba currently endures about three months of extreme drought a year, according to the Palmer Drought Severity Index; scientists expect that figure to rise by another 1.6 months annually in the coming decades.

When the skies open after such a drought, there is nowhere for the water to go.

Sometimes the danger arrives with brutal speed. In March 2023, residents of Lafto District awoke to roaring floodwaters. In Mango Sefer, Woreda 12, a riverside house tore loose from its foundations and swept downstream. A mother, 46, and her children, aged three, 13 and 15, were lost in the torrent. Neighbours and emergency crews worked for hours before recovering the bodies. The tragedy, unfolding during the Belg rainy season, demonstrated how little warning riverside communities receive, and how little protection they have.

“Most of the people living in these areas are there illegally,” Girma Seyfu told Fortune. “This puts them directly in harm’s way, especially during the rainy season. The only permanent solution is to evacuate the area entirely.”

Addis Abeba receives nearly 70pc of its average 1,400Mlt of annual rainfall between June and September. Historic floods in 1978 and 1994 displaced thousands when the Little Akaki and Bantyiketu rivers burst their banks. But Mamo Kassegn, a hydrometeorologist at Addis Abeba University, has more reasons than blaming the rainfall alone.

“Land use is the problem,” he argued. “The city receives between 1,100 and 1,300 millimeters of rain annually, but that alone does not cause floods.”

Mamo says development has marched ahead without environmental research to guide it. Much of the ground is sealed under concrete and asphalt, leaving water and no soil in which to sink. Garbage adds another layer, blocking channels meant to ferry runoff away.

“A large portion of the city’s surface has been paved over,” he told Fortune. “This urban sprawl, combined with an inadequate waste management system, has become a major contributor to recurring flood events.”

Design flaws compound the problem.

“The structural shortcomings of the drainage infrastructure further complicate matters,” he said. “Manholes are all the same size and spaced too far apart. Flood-prone areas need bigger and more frequent outlets.”

Mamo favours tailored engineering where manhole size and spacing are adjusted to each district’s topography, and systematic clearing of drainage lines. Until that happens, he tells riverbank residents to take matters into their own hands.

“Do what you can to protect your homes,” he said.

Indeed, the city’s drainage infrastructure strains under repeated onslaughts. In June 2018, floodwater shut down CMC Roundabout, paralysing traffic from four directions and halting the east–west light rail for more than three hours. Three years earlier, inundations near the Ambassador Theatre, Arat Kilo and Piassa forced hundreds from their homes. The southern half of the city, where slopes flatten out, is especially exposed. Rapid development in Nifas Silk-Lafto District has pushed more families into harm’s way, while Addis Abeba’s concrete core funnels runoff into already overloaded channels.

Official estimates of financial losses are patchy, but the pattern is clear. Every road washed out, every shop wrecked, every family displaced carries a cost that ripples across the economy. As new buildings march into floodplains, the bill only gets bigger. Every Birr sunk into vulnerable plots risks being washed away.

At the root of the crisis is a planning system unfit for the weather it now faces. Many drainage canals were built to handle only a five-year flood, a standard too low even before climate change. Frequent and haphazard construction digs up earth, reroutes runoff and leaves slopes bare. Green spaces, nature’s own sponges, have dwindled, a loss blamed for 40pc of the city’s flooding and landslides. As cropland gives way to asphalt, more water races across the surface in search of an outlet.

The Fire & Disaster Risk Management Commission says more than 15,000 residents across the capital could face flooding this summer, with 131 areas classified as high risk. The assessment weighs topography, sewage condition, river proximity, construction materials, and density. Addis Ketema, Kirkos, Aqaqi Qality, and Bole districts top the list.

In Addis Ketema’s Menalesh Tere neighbourhood, 156 residents are pencilled in red. Here, the Gaze Tere River often tests thresholds. One family belongs to Desalegn Tefera, 83, who has lived beside it for over five decades.

“It enters our house every summer,” he told Fortune.

He fears eviction will come first this year. Merga Fufa, manager of Wereda 01 in Addis Ketema District, challenged the Commission’s numbers, disclosing that only 49 families face acute danger.

“Six homes flooded during the last rains,” he recalled. “Crews are cleaning sewers and preparing for relocations.”

The debate does little to calm those who hear thunder on the horizon. Desisa reminds residents in low-lying or riverbank areas, especially where drains are blocked, not to rely solely on government help. He urged residents to clean the nearby drains and dig small channels, “doing what they can to protect their homes.”

The Addis Abeba City Roads Authority, responsible for much of the underground network, says it is racing the calendar. Eyasu Solomon, the Authority’s public relations director, disclosed having cleaned and repaired 400Km of drainage lines over the past nine months. Crews are also clearing debris around bridges. Yet, he admits the city’s arteries remain fragile.

“Many manholes on city roads remain uncovered due to theft and damage by vehicles,” he said. “These open manholes often turn into dumping sites for garbage, which worsens the blockage of drainage systems.”

According to Eyasu, a quick-response team will remain on standby around the clock to handle any flooding or drainage-related emergencies.

Tilahun Azagegn, a hydrologist at the Addis Abeba University, supports moving people out of harm’s way.

“It is better to move people before lives are lost,” he said. He urged builders to suspend construction during the rains to stop soil from sliding into drains, and he backs a legal ban on housing near rivers.

Lawmakers have moved on another front. Parliament passed a new bill, drafted by the Ministry of Water & Energy, that criminalises dumping waste into rivers. The measure gives environmental rules legal teeth and complements wider disaster-mitigation plans.

For people like Yohannes, however, laws and plans feel distant. He walked past the ruins of his old home, its walls bowed and cracked, and remembered the night water erased a lifetime of family photographs. He is grateful officials talk about evacuation, but for him, it comes too late. As dusk brings the threat of rain, he watched the river channel, measuring whether the waterway has been cleared.

“We’re waiting for another storm,” he said. “I just hope we will not lose more than we already have.”

Climate models warn the skies are about to dump even more water. Extreme daily maximum temperatures are projected to climb by about 1.7°C between the early-century period of 2000–2020 and the mid-century window of 2040–2060, with warm seasons rising by roughly 1.8°C. Hotter air holds more moisture. When the clouds finally burst, downpours will be heavier, driving floodwaters higher and faster through the city’s crowded gullies.

Longer and harsher droughts bake the soil until it is hard as concrete, stripping it of its ability to absorb water. When the skies open after months of dryness, rain races off the surface, swelling rivers and swamping streets that already struggle with drainage. It is a one-two punch, drought followed by cloudburst, that engineers warn will test flood defences built for another era.

Addis Abeba’s population, roughly five million by the city administration’s estimate, is expected to balloon to nine million by 2035, much of it absorbed by the city’s informal settlements. Those neighbourhoods, pressed onto hillsides and riverbanks, shoulder outsized flood risks. As newcomers arrive, the boundaries of these high-risk zones creep outward, multiplying the number of homes and businesses perched in harm’s way.

In-migration piles pressure on a flood-management system that struggles to cope even now. Each new corrugated-iron roof and unpaved yard diverts runoff, pushing more water into channels never designed for such loads. Urban planners warn that without decisive action, the next generation of residents could inherit a landscape where catastrophic flooding becomes commonplace.

Green space is often touted as one of the cheapest, most effective buffers against flooding, but Addis Abeba’s parks and river corridors are steadily being chipped away. Two obstacles keep resurfacing: agencies routinely brush aside their own plans when pressed by short-term development pressures, and overlapping mandates between city departments and higher tiers of government leave no one clearly in charge. Even where standards exist, barring new construction in known floodplains or mandating drainage measures for large developments, enforcement is weak.

Buildings rise, roads are laid, and another slice of permeable ground disappears.

Researchers foresee wild swings in river flow, shrinking groundwater recharge, higher evaporation and rising demand, all of which threaten water quality and public health. Without stronger flood defences and smarter land-use decisions, Addis Abeba’s annual rainy-season anxiety will deepen into something more permanent.

Visa Trap Leaves South Sudanese Students Stranded from Going Home

When Moses Akuei received his geology degree from Wolaita Sodo University, the 27-year-old from South Sudan imagined proudly returning home to his family. Instead, he now sleeps on friends’ couches and relies on their generosity for food and shelter, trapped in Ethiopia due to unpaid immigration penalties totalling over 3,000 dollars.

For all he knows, he is stranded.

“I thought it would be easy after graduation,” Moses said. “But it’s not easy to accommodate myself.”

Moses is among over 1,500 South Sudanese students in Ethiopia caught in a bureaucratic crisis over rising residency permit fees. For many, a previously straightforward residency process has become a severe financial burden, preventing students from returning home until they settle penalties owed to the Ethiopian Immigration & Citizenship Service (ICS).

The trouble began earlier this year following regulatory changes. International students previously paid 10 dollars a day for residence permits, a fee waived for scholarship students in February. Yet, in a sudden reversal, students were informed that they must handle their identification processes themselves, and the permit fee surged to 30 dollars a day, significantly raising their financial burden.

Daniel Nyok Guet, a medical student at Jimma University and president of the South Sudanese Students Union, described the escalating fees as financially devastating.

“The scholarship only covers tuition and accommodation,” Daniel told Fortune.

The residence fee was paid up until 2022. Back then, it cost 8,000 Br. Now, renewal alone costs students of foreign nationality 150 dollars, not including penalties.

Nearly 200 students due to graduate soon face mounting unpaid immigration fines reaching thousands of dollars, fearing they will be unable to return home and stuck indefinitely between the two countries. According to Daniel, the worsening situation is that graduates are forced to remain in Ethiopia and are increasingly vulnerable.

“Some of them are jobless and penniless,” he said. “They’re being pushed into risky behaviours, some are turning to crime just to survive.”

Moses’s story illustrated the desperation many students face. After completing his studies, Moses attempted to renew his residency permit but discovered the waiver no longer applied. He repeatedly sought an exemption between March and June, unaware that daily penalties continued to accrue.

“The arrears were growing quietly, and by the time I realised I had to pay, it was too late,” Moses recalled.

Officials at the Ethiopian Ministry of Education say their ability to help is limited. According to Getu Abdisa, a senior international student expert, the Ministry has no formal obligation to cover these fees.

“It’s the responsibility of the South Sudanese Embassy,” Getu told Fortune. “However, we’re considering many variables. There is a possibility the Ministry might assist.”

Students’ efforts to seek assistance from the South Sudanese Embassy and Ethiopian authorities have yielded little relief. Daniel said the Union submitted letters appealing for help but received only promises.

“We heard promises,” he told Fortune. “Three months ago, we were told the penalty would be waived. But nothing has happened. Our appeals fell on deaf ears.”

Ethiopia recently accepted nearly 500 South Sudanese students on scholarship, facing similar confusion. This prompted the Education Ministry to allocate almost 20 million Br to cover student visa costs, representing a considerable budgetary strain. Yet, Getu maintained that the Ministry has received no official student requests about a fee waiver.

“According to the agreement, the scholarship covers only tuition and housing,” said Getu. “Nothing more.”

Officials at the Immigration Office echoed similar frustrations. According to Gosa Demissie, deputy bureau head at ICS, the Agency enforces regulations.

“We’re not policy makers,” Gosa said. “These students are treated like all others. We can’t create exemptions unless the law allows.”

He acknowledged the seriousness of the situation but pointed out the lack of formal communications from student organisations. He said the ICS had received informal appeals but no official documentation that would enable them to address the issue broadly.

The latest immigration directive provides exemptions only in specific circumstances, such as for intensive care patients, minors, homeless individuals, government employees performing labour-intensive jobs, and political asylum seekers. Gosa said that some international students had previously abused the system, overstaying visas without renewing permits, complicating regulatory enforcement.

“We’ve seen foreigners drop out of school and continue staying without renewal,” he told Fortune. “It’s become difficult to regulate.”

Legal experts agree with the authorities and confirm that students are legally responsible for fees. According to Yared Siyum, founder and principal attorney at Yared Siyum & Associates Law Office, initial payments by embassies do not relieve students from future obligations.

“If the Embassy paid initially, that does not absolve the students from future obligations,” Yared said. “The host country has every right to enforce its residency laws.”

Yared advised students to seek formal administrative solutions through diplomatic channels.

“They can request a full or partial waiver,” he said. “But, it has to come through the appropriate channels, not through informal appeals.”

International scholarship agreements between sponsoring and host governments define the costs.

“If residency fees weren’t included, then the students should pay them,” he said.

However, students like Moses remain trapped in a limbo, unable to plan their futures or even return home.

“My family cannot send money. They can barely survive,” Moses said. “I don’t want to stay here illegally, but I have no way to leave.”

For Daniel and other student representatives, the immediate priority is securing a reprieve from the penalties, allowing their peers a chance to return to South Sudan.

“These students are not asking for extra,” Daniel said. “They’re asking to go home.”

Central Bank Pushes to Till New Ground in Farm Finance

The Central Bank is launching a sweeping initiative to overhaul the agricultural finance system, targeting deep-rooted structural gaps that have long limited the sector’s potential.

The plan seeks to modernise agriculture by streamlining existing strategies and introducing mechanisms that make financial services more accessible to farmers. The National Agri-Finance Implementation Roadmap (NAFIR) targets improved credit access for inputs such as crop and livestock supplies, irrigation, mechanisation, and better marketing systems. A sector-wide baseline study is planned to measure financing gaps and track the impact of reforms over time.

Officials at the National Bank of Ethiopia (NBE) attribute the findings of entrenched obstacles that have discouraged financial institutions from supporting agriculture to limited loanable funds, high risk levels, and prohibitive financing costs. Coordination inefficiencies and cumbersome regulatory requirements are also to blame, as are borrowers’ low financial literacy and the absence of robust risk management systems.

The agricultural sector remains central to the economy, contributing 32pc of GDP, employing 64pc of the population, and generating more than three-fourths of exports. Yet, only eight percent of over a trillion Birr total bank loans were extended to agriculture in 2023/24. Of that, one-fourth came from the Commercial Bank of Ethiopia (CBE) to support fertiliser purchases. Microfinance institutions accounted for 18pc of the sector’s outstanding credit.

Actual credit provision met a mere two percent of the estimated demand. Including CBE’s support, disbursements rose to 52 billion Br, far below the annual potential of 2.58 trillion Br. In its 10-year development plan, the administration aspires to raise this to 881 billion Br annually by 2030.

The authors of NAFIR want it to rest on three pillars. The National Agri-Finance Accelerator (NAFA) is set to offer refinancing, risk-sharing, and credit guarantees. It is designed to expand available credit and reduce lenders’ exposure. NAFA also plans to establish interbank markets, allowing financial institutions to trade surplus funds and direct credit to those best positioned to lend.

Farmer Access to Streamlined Financial Services (FAST) offers real-time access to credit, savings, and payment services. It wants to reduce financing costs and improve repayment compliance by building a traceable agricultural value chain. The Agri-Finance Centre of Excellence (CoE) will act as a coordination hub. According to official documents, it will focus on building financial literacy, developing institutional networks, and strengthening risk management systems.

NAFA ambitions to introduce agro-securitisation, gradually selling loan portfolios on the Ethiopian Securities Exchange (ESX) through agro-securities. The authors believe this would provide NAFA with scalable funding and open capital markets to financial institutions facing funding constraints.

According to Abraham Endrias, CEO of Lersha, a digital agri-platform, robust Know Your Customer (KYC) processes are crucial. The platform has digitised the profiles of more than 310,000 farmers across seven regional states and made them accessible to several banks. Abraham noted that KYC requirements such as Taxpayer Identification Numbers (TIN), national IDs, landholding certificates, and marriage documents often present barriers.

“One of the main challenges to financial inclusion is that smallholder farmers are invisible to banks and microfinance institutions,” he said. “We simplified the process.”

A pilot project with Dashen Bank and the International Finance Corporation (IFC) showed a 100pc repayment rate. Among participating farmers, 39pc increased their incomes and productivity rose by 24pc.

Despite such gains, most smallholders remain outside the formal financial system. The Ethiopian Economic Association (EEA) survey found that agriculture’s share of outstanding credit has averaged 7.8pc over several decades, dropping below five percent of new loans in 2021. It identified greater access to fertiliser and credit as key levers for change.

Farmers continue to face production and export barriers. The Oromia Coffee Farmers Cooperatives Union (OCFCU), which sought to secure 2.9 billion Br in financing, managed two billion Birr. Banks declined to accept farmland as collateral, forcing the Union to pledge warehouses and buildings instead. Dejene Dadi, OCFCU’s general manager, criticised the Development Bank of Ethiopia (DBE) for suspending loans to rain-fed agriculture in August 2024.

“They’ll not lend to rain-fed operations,” he said.

Rain-fed farming accounts for 75pc of crop output. While 16.3 million hectares of arable land exist, only 1.2 million hectares of the 7.2 million hectares of irrigation potential are utilised. DBE executives said their policy shift was necessary to reduce the non-performing loan ratio, which fell to 6.5pc from previous highs caused by bad loans, particularly in the northern part of the country. A key issue was the absence of agricultural insurance.

Dejene also took aim at the blanket collateral rules enforced by NBE directives. OCFCU missed out on export opportunities worth 60 containers due to financing shortfalls. Still, the Union generated 23 million dollars in the third quarter of the fiscal year, close to its 25 million dollars target.

“The macroeconomic reform allows us to retain all our foreign currency, making the sector more attractive,” Dejene said.

He believes performance-based lending could improve access. OCFCU has also begun participating in carbon markets, selling 100tns and earning 1.7 million euros in the Wollega zone of Oromia Regional State, alone. But, banks remain hesitant to lend without physical collateral.

Samson Assefa, head of cotton development at the Ministry of Agriculture, said some farmers are accessing mechanisation loans with interest rates of 13pc to 18pc. While duty-free equipment imports help, collateral remains a stumbling block. A new law passed by Parliament allows movable assets to be used as collateral, potentially easing access.

Farmers elsewhere face similar constraints.

Asemamaw Azaga, a farmer in Fogera Wereda of Southern Gonder, in Amhara Regional State, struggles to pay for seasonal labour. He pays up to 700 Br daily to hire workers to weed his 10-hectare farm. Fertiliser should be bought in cash, and transport costs for a 1,000Kg shipment now total 10,000 Br.

“It’s sheer struggle farming right now,” he told Fortune.

According to Melkamu Abreham, representing the Ethiopian Crop Producers & Exporters Sectoral Association, which has 6,200 members farming 2.2 million hectares, his group also faces difficulty securing finance for irrigation. He criticised the exclusion of rain-fed farming from financing programs. He called for long-term finance and collateral reform.

“The decision to exclude rain-fed agriculture from finance is misguided,” he said.

For many experts, access to finance, while crucial, is only part of the solution. Muluken Asemamaw, a lecturer at Mettu University with four years of experience in crop protection, said management remains the key challenge. Factors such as land size, terrain, fuel prices, and water access heavily influence outcomes. Post-harvest losses from poor storage, handling, and harvesting practices also affect productivity.

“While mechanisation supports commercial farming, it is not always suitable for every context,” he said.

Some have proposed creating a dedicated agricultural bank, but experts warn it could centralise decision-making and complicate risk control. A national risk-sharing facility is also under discussion, though it is feared that the root problem of limited loanable funds will not be addressed.

Riadh Naouar, the IFC’s Africa advisory manager, identified poor policy design as a key constraint.

“Many are copy-pasted,” he said, noting that agriculture receives only three to four percent of lending across Africa. The IFC recently launched the African Agriculture Accelerator to address food security through improved productivity. He stated the potential of digital finance, arguing that mobile money adoption rates jumped from 17pc to 60pc in some regions.

“Similar platforms to Lersha are needed to link financial institutions and commercial farmers,” he said.

The IFC is developing a credit scoring system to support farmer financing, alongside efforts to expand digital KYC, land profiling, and SME supply chain support.

Tesfakidan Admasu, head of the Agriculture & Development Studies Department at St. Mary University and an agroeconomist, stressed the need to de-risk the sector. He argued that providing input loans in kind, rather than cash, would lower default rates. A rural credit scorecard could help bridge documentation gaps, but Tesfakidan said progress depends on farmer education.

“From weather index insurance to warehouse and food processing insurance, every stage carries risk,” he said. “The government should prioritise capacity building for farmers.”

Federal Bill Seeks Foreign Cash for Housing, Barring Access to Domestic Credit

Federal legislators are considering a bill that would allow foreign nationals to lease land and own residential properties, while prohibiting them from borrowing money or raising capital from local banks. The draft law, tabled to the Standing Committee on Urban Infrastructure & Transport Affairs, seeks to attract foreign direct investment (FDI) through real estate, but it imposes a strict requirement of a minimum investment and explicitly bars foreign investors from accessing domestic financing.

The government’s chief whip, Tesfaye Beljige (PhD), asserted that the bill aspires to address housing shortages and attract foreign capital “without infringing on citizens’ land rights.” Yet, the draft has ignited intense debates among lawmakers, bankers, and economists with divergent views about its potential impact.

However, the bill explicitly prohibits foreign ownership of property in government-funded public housing projects. However, this restriction does not apply to housing developed through public-private partnerships or profit-oriented residential developments built by the government or private sector. Foreign nationals are limited to owning a maximum of five immovable properties at once. All transactions involving leases, property acquisitions, construction permits, and government fees should be executed in recognised foreign currencies.

Legislators have sharply criticised the draft legislation, particularly the blanket prohibition on borrowing from domestic financial institutions. One legislator argued that allowing foreigners to borrow in foreign currency could help ease the persistent shortage of foreign exchange.

“Why not authorise them to borrow and repay in dollars?” he asked, arguing that this would potentially benefit local banks facing currency shortages.

MP Fethi Mehdi (PhD) echoed these concerns but offered a nuanced approach. He recommended permitting foreign investors limited access to domestic financing to expand their businesses once established. He argued for a flexible minimum investment threshold, adjusted according to regional economic conditions. Without this adaptability, he warned, foreign investors would favour Addis Abeba, neglecting other regions and exacerbating regional economic disparities.

The legislator proposed lower investment benchmarks for regions actively seeking external investment, a measure he believed would encourage broader economic growth nationwide.

Financial industry representatives offered diverse views on the bill’s economic implications.

Demissew Kassa, secretary general of the Ethiopian Bankers Association, broadly supported the legislation.

“The government prepared the bill to attract foreign direct investment,” said Demissew. “The foreign nationals who want to lease land and own residential property should come up with their dollars.”

He praised the bill’s overall approach but criticised the notion that investors might rely entirely on domestic banks without contributing their own capital. According to him, even if banks do not lend directly to foreign nationals, the dollars invested would still flow through the banking system, indirectly benefiting domestic financial institutions.

Others cautioned that an outright prohibition could negatively impact the banking industry.

Tadesse Hatiya, president of Sidama Bank, offered a balanced perspective, acknowledging both the merits and potential pitfalls of prohibiting foreign nationals from borrowing locally. He recognised that the bill is designed primarily to attract foreign investment by requiring investors to bring foreign currency. Tadesse proposed a compromise, allowing investors to finance up to half of their ventures through domestic loans.

“If investors are allowed to contribute at least 50pc of the required capital and secure the rest through domestic borrowing, it would not only incentivise foreign investment through favourable credit terms but also enable banks to benefit from increased lending activity,” he told Fortune.

Dawit Keno, acting president of Hijira Bank, believes regulatory constraints currently restrict banks from lending in foreign currency. Unless the National Bank of Ethiopia (NBE) lifts these restrictions, allowing foreign nationals to borrow domestically remains impractical. Dawit advocated prioritising the broader national interest over individual banks, claiming that passing the bill in its current form would likely enhance Ethiopia’s attractiveness to international investors.

Economists like Naser Yenus (PhD), affiliated with the Ethiopian Economic Association, strongly oppose the prospect of foreign nationals borrowing from domestic banks. He argued that the legislation rightly mandates foreign investors to bring their own capital, preserving domestic financing opportunities for local entrepreneurs.

“We should prioritise local investors who are already seeking loans,” said Naser.

The draft legislation has raised serious social implications among legislators. Opposition MP Desalegn Chane (PhD) warned that allowing foreign nationals access to property could disadvantage local populations, especially lower-income urban residents. Desalegn argued that the bill could potentially escalate housing prices, displacing residents and transforming urban centres into exclusive enclaves for wealthy foreign nationals.

“Once enacted, the law could displace low-income urban residents,” Desalegn cautioned Parliament. “It could turn cities into a place solely for foreign investors.”

His colleague, opposition MP Abebaw Desalew (PhD), raised constitutional concerns, arguing that Article 40 explicitly prohibits the sale or transfer of land ownership.

“Now we’re endorsing making the land the property of foreign nationals, suggesting it belongs to individuals and can be sold and transferred,” Abebaw said. “This is against the Constitution.”

Naser, the economist, shared similar concerns about potential displacement and urban exclusivity, warning that foreign investment concentrated in prime urban areas could drive up housing prices substantially. Naser recommended government incentives encouraging investors to focus on housing developments for middle- and lower-income communities to respond to such risks.

Financial expert Ameha Tefera (PhD) also echoed these concerns, particularly for domestic real estate developers. Ameha cautioned that the bill poses a substantial threat by potentially allowing foreign nationals to dominate the real estate market. He argued the government should prioritise legislative support for domestic developers instead. Ameha warned of the risk of capital flight, as profits generated locally by foreign investors could ultimately be transferred abroad, undermining the broader economic interests.

The draft proclamation outlines several specific eligibility criteria for foreign nationals interested in investing in the property market. Potential investors should provide comprehensive legal documentation and demonstrate adequate financial capacity to meet a 150,000-dollar minimum investment threshold. Applications for permits should be submitted to the Ministry of Urban Development & Infrastructure, which has a two-week mandated decision-making period.

The contentious draft legislation has been referred to the Standing Committee on Urban Infrastructure & Transport Affairs for further scrutiny, with the Law & Justice Standing Committee co-chairing the review process. Despite the referral, three MPs objected to this process, pressing for more comprehensive legislative oversight and debate before the draft could proceed for ratification.

In Addis Abeba, Tourist Numbers Rise But Tables Stay Empty

Traditional restaurants in Addis Abeba, known for serving authentic domestic dishes and offering vibrant cultural performances, face severe constraints, despite an uptick in tourist arrivals officially touted. The struggle for survival among these eateries signals a wider concern within the tourism industry, uncovering gaps between reported visitor statistics and actual business performance.

YOD Abyssinia Traditional Restaurant, established in 2003 on Cameroon Street next to the landmark previously known as Brass Hospital, Bole vicinity, has long been celebrated for combining cuisine with captivating live cultural entertainment. However, in recent years, the restaurant has experienced a downturn in patronage.

Daniel Fikadu, food and beverage manager, detailed the sharp drop. Daily visitors fell from around 1,000 in 2022 to 500 in 2023 and dwindled to 250–300 by 2024. Most of its customers are through reservations from government entities or businesses. This decline compelled the establishment to reduce operational hours. Staff now work a single shift, with the restaurant closing earlier in the evening rather than at midnight.

Its sister company, YOD Abyssinia Tour & Travel (YATT), established in 2010 as part of the restaurant’s expansion, initially thrived by offering inbound and outbound tourism services, including city tours centred around culture and gastronomy. However, shifting market demands prompted a pivot. According to Sosina Gebremariam, manager at YATT, the agency now primarily arranges outbound travel services, focusing largely on Ethiopian tourists heading abroad, notably to Jerusalem.

Pagumen Tour & Travel, another Addis Abeba-based agency founded in 2016 near Axum Hotel, echoed these difficulties.

Eyob Abate, the head of its tourism department, noted a substantial decline in inbound tourism. Pagumen once hosted approximately 20 groups annually, each comprising 20 tourists staying an average of eight days. This operation generated substantial foreign currency and benefited local traditional restaurants, which were included in tour packages. However, the reduction in tourist groups forced the company to diversify into outbound tours, event planning, ticketing, and car rental services to sustain its operations.

Tourism experienced rapid growth between 2010 and 2018, with tourist arrivals nearly doubling from 438,000 in 2010. Experts attribute enhanced air connectivity and targeted international marketing strategies to boosting foreign currency earnings, reaching about 3.6 billion dollars in 2018, representing over 45pc of the country’s export revenues. Tourism emerged as an important employment driver, providing roughly 1.9 million jobs by 2019 and contributing over six percent to the GDP.

However, the COVID-19 pandemic severely disrupted this momentum. Even after a peace accord in 2022 briefly revitalised the sector, tourism revenues dipped by more than six percent in 2023 compared to the preceding year, according to the UN World Tourism Barometer. While official tourism figures appear optimistic, Ethiopia received 928,304 tourists in 2024. In the third quarter of the current fiscal year, 743,264 visitors were reported to have arrived. Officials claim the revenue generated from tourism activities amounted to approximately 100.3 billion Br.

Despite these encouraging positive numbers, a closer look reveals complexities. According to Samson Ayinachew, director of Tourism Destination & Domestic Tourism Development, not all recorded arrivals represent leisure tourism; many are business travellers attending conferences or events. No less than 84 conferences were hosted in Addis Abeba during this period.

Accurate data collection remains a persistent problem. The authorities consider a tourist as anyone spending at least one night in the country without residing for more than a year, excluding business travellers and same-day visitors like airline crew. Each entry is counted separately, potentially inflating numbers due to multiple visits by the same individuals within a given year. By comparison, countries like Kenya track comprehensive tourist data through entry points, capturing nationality and preferred destinations, thereby providing more precise insights.

The World Tourism Organisation acknowledges that varying methodologies worldwide complicate consistent global comparisons.

An industry insider, speaking anonymously, believes tourism authorities calculate the sector’s economic contribution using average stay durations and daily expenditure rates, adjusted by prevailing exchange rates and total visitor counts. An average stay of five days with a daily spend of approximately 234 dollars is used for such estimations.

The authorities plan to introduce a Tourist Satellite Account (TSA), hoping to improve tourism data accuracy. The initiative is designed to prevent double-counting individual tourists visiting multiple locations, offering clearer insights into actual tourist figures. Industry experts also suggest digitalising restaurant services and promoting cultural dining experiences aggressively to boost visitor interest and help recovery.

Data on the total number of eateries in Addis Abeba and their revenues is hard to come by. However, local restaurants, which are dependent on tourism, are a good measure.

Capital Traditional Restaurant, on Haile Gebresellasie Road, saw drastic decreases in visitors lately. The Restaurant, under Capital Hotel, can host 230 guests, and previously attracted around 150 to 170 daily visitors. Recently, this number has sharply dropped to between five and 10 visitors, occasionally reaching 20 to 30 on better days. The establishment primarily hosts events rather than individual diners, says Etaferahu Belay, sales manager.

“Attendees of recent conferences increasingly prefer dining at hotel restaurants instead of traditional venues,” she said.

Several factors underpin the downturn in traditional dining. Demeke Kibru, head of the Department of Tourism & Hotel Management at Jimma University, attributed reduced patronage to evolving tourist preferences, increasing demands for quality service, personalised offerings catering to diverse cultural backgrounds, and ongoing safety concerns.

“The restaurants’ adaptability to these changing expectations is critical,” he said.

Personalised menus and services, such as vegetarian dishes tailored for specific visitor demographics, notably from India, have become essential.

Toxic Residue Taints Avocado Boom

Traces of pesticides, banned internationally due to serious health and environmental concerns, have been found in avocados, pressing for stronger regulation and increased awareness among farmers. Representatives from the Ethiopian Agricultural Authority described rising pesticide use, poor enforcement, health hazards, and widespread gaps in farmer training as critical issues.

Pesticide use in Ethiopia dates back to the 1940s, initially to combat desert locusts, and expanded through government programs in the 1960s. Six decades later, annual pesticide use surged dramatically from slightly over 200tns in 2000 to more than 4,100tns, ranking Ethiopia among Africa’s highest pesticide users. In the 2020/21 cropping season alone, pesticides covered almost 4.5 million hectares.

This increase in pesticide use carries severe risks. Of Ethiopia’s 436 registered pesticides, the Pesticide Action Network classifies 236 as highly hazardous. A 2023 study revealed acute risks in 11pc to 16pc of these pesticides, while 7.3pc to 11pc posed long-term threats to aquatic life. Ethiopia currently lacks robust monitoring systems and adequate risk assessment protocols.

The escalating concerns over pesticide misuse were a subject of debate at a recent forum organised by the Addis Abeba Chamber of Commerce & Sectoral Association, in partnership with the Danish Initiative (DI). Agricultural researchers, policymakers, business leaders, and those representing NGOs tried to chart a pathway to addressing it.

Abaya Alemu, head of the Pesticide Evaluation & Registration Desk at the Ethiopian Agricultural Authority (EAA), disclosed a four-stage regulation process from pre-registration to periodic reviews. Despite clear procedures, he noted notable weaknesses, particularly during post-registration.

His Authority confirmed it is conducting further research on pesticide usage nationwide but declined to release details.

Authorities depend entirely on expensive overseas labs and foreign-issued certificates, creating regulatory vulnerabilities. Market surveillance and local testing are limited, and efficiency assessments often ignore globally recognised Maximum Residue Limits (MRLs), standards endorsed by organisations such as the UN, FAO, and WHO.

While national law mandates safety and quality testing before pesticide registration, loopholes exist. Abaya disclosed gaps in the registration process. Although regulations forbid trading unregistered pesticides or using products outside approved conditions, exceptions allow limited imports for research, emergencies, or undefined “compelling reasons,” pending a government directive.

These gaps permit some flower farms to routinely import unregistered pesticides, which are regulated primarily by the standards of export destination countries rather than domestic oversight. According to Abinet Belayneh of Tana Flora, located in Bahir Dar, his firm mainly imports pesticides for preventive purposes, guided by international regulations.

“Our operations undergo annual inspections by regulatory bodies in our export markets,” Abinet said.

Zemachu Yadette from Adam Horticulture Plc confirmed importing pesticides, primarily from Kenya. His company faces regular audits by European importers and avoids “Class 1” pesticides, which are considered extremely hazardous.

However, pesticides meant solely for ornamental plants are frequently diverted to food crops like tomatoes.

“We spray flower pesticides on tomatoes,” Matusala Welay, a tomato farmer from Silte Zone in Central Regional State, admitted candidly. “Tomatoes are flowers.”

He attributed farmers’ widespread misuse of chemicals to illiteracy and lack of training. Farmers often overdose or apply expired products in hopes of improved yields. These tomatoes reach major markets, including Addis Abeba, largely unchecked.

According to Ermias Abelneh, a chemical engineer, most farmers lack basic training in pesticide safety, which contributes to hazardous practices such as unsafe disposal, improper chemical mixing, and applying pesticides to crops like khat. Low literacy levels and limited agricultural extension services compound these issues.

“Farmers mix chemicals improperly, spray without protective gear, and discard containers unsafely,” Ermias said.

He recommended empowering inspectors to conduct surprise checks and urged international support for enhanced training and alternative pest management strategies.

“We need to scale up Integrated Pest Management across the country,” Ermias said, advocating for polluter-pays principles, subsidising protective equipment, and implementing community-based monitoring to flag illegal pesticide practices.

Damene Dawena from the Southwestern Regional State Agricultural Bureau blamed poor communication between farmers and agricultural authorities for contributing to pesticide misuse.

“During pest outbreaks, farmers panic, and pesticide demand spikes,” he said. “Suppliers rush to meet this demand, frequently ignoring safety standards.”

The local manufacturer, Adami Tulu Pesticides Processing Factory, does not adequately meet farmers’ demands.

Original and certified antifungal pesticides imported from Germany, intended for single-use applications, are priced between 4,000 Br and 5,000 Br, compared with fake products sold cheaply at 500 Br to 1,000 Br. Mulugeta Wariso, a farmer, noted the severity, blaming widespread smuggling of pesticides from Moyale, frequently mixed with expired or unregistered stock.

“Even when we find the right products elsewhere, they are often restricted,” Mulugeta said.

“If someone trained us or inspected our farms regularly, things could be different,” he continued, “but no one seems to care.”

The centralised regulatory framework under the Ministry of Agriculture further complicates effective oversight. Abaya recommended decentralising pesticide regulation to regional bodies, which he argued would improve accountability and enforcement capabilities.

“If we do not act now, we are trading short-term yields for long-term harm to public health and the environment,” Ermias warned.

Editors’ Note: This article has been amended from its original form on May 31, 2025.

“Ethiopia does not have a fully equipped laboratory to test pesticide safety or quality,” disclosed Abaya. This has been omitted due to factual error.

E-Commerce May Never Be the Same Again

Zemen Gebeya, the digital marketplace that Ethio telecom switched on only two weeks ago, is already reshaping the fragile e-commerce scene. In a country where online retail remains a novelty, the platform’s arrival has raised a mix of apprehension and cautious optimism among smaller delivery companies that suddenly find themselves riding a wave of new orders, while bracing for a corporate giant that could one day eclipse them.

Few felt the jolt more quickly than Bereket Tadesse, founder of Asbeza, a grocery-delivery start-up that has operated for three years on a lean budget and a skeletal fleet. When news of Zemen Gebeya first broke, he saw an existential threat. A deep-pocketed state-owned carrier with nationwide reach and a recognised brand comes to his territory. However, traffic metrics told a different story. Asbeza’s daily deliveries jumped from roughly 80 to 100 to over 250 almost overnight.

“It’s a big opportunity for e-commerce,” Bereket told Fortune. “The question is how capable start-ups like Asbeza are.”

The paradox has become a running theme. Zemen Gebeya draws shoppers inside the Telebirr SuperApp, already installed on about eight million phones, and lets them browse products ranging from sheep to smartphones. Within days, the market clocked roughly 2.4 million unique visitors and signed up around 80 merchants. Ethio telecom pitches the venture as an inclusive bazaar that will boost trust in online trade, which is still hobbled by patchy logistics, low digital literacy, and chronic payment friction.

“It’s a digital marketplace,” said Mesay Wubshet, the carrier’s chief communications officer, noting that designers borrowed “international experiences like China.”

Chinese platforms process nearly half of global e-commerce transactions, a benchmark Ethio telecom executives often cite when discussing their ambitions. Logistics and credibility, they argue, are the twin pillars on which any successful marketplace should stand.

“We’re building a system where the community, the businessman, and the manufacturer can save time and money and connect in one place,” said Solomon Abera, chief customer-experience and quality officer. “We can build trust through delivery; we already have a brand.”

Trust, or its lack, is the biggest obstacle most operators mention. Tamrat Zewde, a former tour guide who three years ago started AradaMart near 4 Kilo’s Birhan & Selam Printing Press, keeps warehouse shelves stocked with gadgets and household items but spends as much energy convincing first-time buyers that their orders will arrive.

“Trust is key,” he told Fortune. “Ethio telecom can encourage this, not only for its customers but also for us.”

He sees Zemen Gebeya as both lifeline and threat, able to normalise online shopping yet powerful enough to dislodge smaller rivals.

“Start-ups need ongoing support, not just at launch,” he said, worried that aggressive promotions could eventually force him off the map. “If it comes to that, it really affects us.”

Those promotions keep Yoseph Hailu awake at night. He is the marketing manager at Zmall, a four-year-old service that delivers restaurant orders and supermarket staples through scooter fleets. The service promises “10 categories of business” and juggles three separate apps: one for shoppers, one for merchants, and one for couriers.

“Discounts are key to attracting and retaining customers,” he said. “If ethio telecom adopts this strategy, users will shift to Zemen Gebeya, impacting businesses like ours.”

Still, Yoseph conceded that the big platform “raises awareness and trust” in ways smaller firms cannot. His apps already integrate Telebirr for payments, a link that “boosts our customer trust.” Should Zemen Gebeya carve new niches, he added, “If they offer special services, we’ll refine ours.”

Ethio telecom insists it wants collaboration, not conquest. Executives say Zemen Gebeya will roll out in three phases; the first, now live, handles only a slice of the intended inventory, and later phases could double the catalogue. Solomon declined to cite specific targets but stated the company’s self-imposed limits:

“Telecom is a digital solution facilitator, not all about business,” he said. “We only sell our product; other products are left for their merchants.”

The carrier is also recruiting outside couriers, despite fielding a private fleet of more than 3,000 vehicles.

“Anyone can participate if they are trustworthy and meet all the requirements,” Solomon said. “The main goal is to create job opportunities.”

For some founders, that door might not open wide enough. Bereket fears Ethio telecom’s marketing power and ability to bundle data packages with coupons, for example, could drown out nascent brands, raising investor perception that smaller players cannot scale.

“They’ve promotion, capital, and transport,” he said. “If they enter delivery, where do we stand?”

Incentives that look harmless today could, he warned, “push us out entirely.”

Entrepreneurs in other corners of the digital economy sound similar notes. Dagmawit Abebe, who runs Kedemt Coffee and promotes women-owned and SME-led ventures, has joined Zemen Gebeya. She argues that e-commerce should evolve into a federation of specialised sites rather than a single megamall.

“This is also a moment to rethink how we build platforms,” she told Fortune. “No one platform can serve every product or every consumer.”

Dagmawit hopes to see coexistence with unique value propositions. She believes each sector — coffee, fashion, beauty, electronics — can thrive on specialised platforms with distinct pricing models, loyalty systems, and delivery mechanisms. Years of missed opportunities, delayed payments, and inefficient supply chains, she said, make today’s shift urgent.

“For once, we’re proactively embracing change,” said Dagmawit.

Conversations with industry analysts keep surfacing a checklist of past failures. Many start-ups rush to code an app without first mapping supply chains.

According to Nebiyu Taye, a digital marketing and e-commerce trainer at Malefia Training Institute and founder of Click Digital Solutions, Ethiopia hosts perhaps 80 to 100 active e-commerce platforms, most tiny and heavily tilted toward food delivery or car sales.

“E-commerce is not solely about the website,” he said. “It’s about the logistics. Understanding the business model from which you will generate profit is essential.”

Stock mismatches where items are displayed online but are out of reach in warehouses “undermine credibility.”

Nebiyu calls Zemen Gebeya a template worth studying for its design, payment integration and brand heft. Ethio telecom’s advertising blanketed billboards and airwaves long before the marketplace launch, a luxury no new entrant can match.

“We can see Ethio telecom’s promotions everywhere, all the time,” he said.

That dominance could warp competition unless regulators step in. Still, Nebiyu saluted one practical feature. For him, the best feature of Zemen Gebeya is the ability to compare product prices directly on the client’s phone device.

Hello Mart, another veteran run by Berkash Technologies, dates back to 2019 and pairs its storefront with Hello Cash, a mobile-money service. Its director, Jemal Yimer, sources from more than 1,700 suppliers and counts roughly 1,000 active monthly shoppers. He sees Zemen Gebeya as a prospective partner for “they’ve huge marketing, customers, and trust advantage,” which could lift sector visibility. However, he cautioned that a full-scale push might still “expose weaknesses” among incumbents, and reignite debates over “level playing field” rules.

Ethio telecom’s public pitch to capitalists on safeguards. Merchants should hold valid licenses and certificates; vendors without a retail permit, even domestic manufacturers, cannot register. Payment flows remain under escrow until buyers confirm receipt. The company is discussing terms with about 40 independent logistics outfits and says future courier fees are still under review. Solomon calls Zemen Gebeya “a mobile mall for all,” while acknowledging “a fee in the future.”

“Everyone will pay for what they use,” he told Fortune.

The rollout’s phased approach keeps many details hazy, however. Zemen Gebeya’s bones include a back-end dashboard that lets merchants upload catalogues, set discounts, manage returns, and track inventory, which are tools long absent from the market. Ethio telecom frames the project as an investment in digital public infrastructure; executives declined to say how much it cost but insist all funding came from the company’s coffers.

“We aim for more affordability for customers and product suppliers,” Solomon said. “It is a platform for all; we expand the service across the country.”

That national reach is what worries delivery riders threading Addis Abeba’s traffic. If Ethio telecom’s own trucks and vans assume most last-mile duties, freelance couriers could lose jobs. Tamrat believes the platform should “leave the delivery work to others under its umbrella,” giving independents steady contracts rather than direct competition.

“Order-to-delivery is essential,” he said.

Tamrat wants shared technology standards so multiple firms can use a common routing engine and maintain predictable service times.

Solomon contemplates a future independent delivery platform under the Tele brand that would set uniform rules and let vetted players operate. Ethio telecom, he said, recently briefed 40 logistics providers eager to “operate under the Tele brand and rules.” One promise: job creation at scale.

“There are services we offer, and there will be multiple vendors,” he said, signalling that even the state postal operator, Ethio Post, has been “invited” to join.

Regulatory clarity could determine whether such cooperation flourishes. The competition authority has yet to rule on whether a state-owned telecom operator can dominate both payments and delivery without throttling rivals.

CBE Shifts Gear on Forex as Market Fractures Widen

The first move in nearly half a year by the Commercial Bank of Ethiopia (CBE) to lift its foreign exchange offerings has injected fresh energy into a market that had been drifting in a narrow channel since December last year.

The state-owned bank nudged its buying rate to 128 Br for a Dollar from 126 Br and set a selling rate of 130.56 Br. And it offered a 10 Br bonus for every dollar it bought. Though modest, the adjustment ends a long spell of static pricing at the country’s largest bank and signals that monetary authorities are willing to let rates inch higher after months of gentle depreciation managed from the sidelines.

Other banks had already pushed into a different bracket. Several private banks, including the big five – Awash, Dashen, Abyssinia, Zemen and Wegagen – clustered their buying rates between 131 Br and 132 Br, revealing higher funding costs and pent-up customer demand.

However, Oromia Bank has gone further, quoting 134.44 Br to buy a dollar and 137.13 Br to sell, levels that tower above the industry average and uncover its appetite for hard currency. Whether Oromia is reacting to acute customer orders or trying to capture market share, its premium pricing has set the unofficial ceiling for formal trades.

The market shaded gently toward depreciation last week, yet within a band that pointed to continued Central Bank supervision. The average buying rate for all banks moved to 131.41 Br on May 23 from 131.21 Br at the start of the week on May 19. The average selling quote edged up to 133.93 Br from 133.86 Br.

Even these slivers matter in a system where policy often clips day-to-day swings. The spread between the lowest and highest posted rates remained yawning: before its adjustment, CBE’s 124 Br buying rate and 126.48 Br selling rate set the floor, while Oromia’s numbers marked the roof. That 10 Br gulf revealed how segmented the market has become.

The CBE, which sits on by far the largest balance sheet in the industry, has consistently provided the cheapest foreign exchange. Its role as price anchor is unlikely to disappear, but the latest tweak unveiled room for further moves if policymakers want to narrow the distance to peers.

At the other extreme, Oromia’s position signalled either a deliberate bid to lock in dollars for corporate clients or a limited supply that forces aggressive payments to attract sellers.

In the middle lies the National Bank of Ethiopia (NBE), a monetary policy institution that trades more to set the tone than to fill retail orders. Across the six-day window last week, its spreads were as tight as 0.01pc, a mark of its non-commercial posture and offering a signal to the wider market.

By quoting paper-thin margins, the Central Bank tried to flag a reference rate without crowding out liquidity in a market it is trying to liberalise in measured steps.

The latest two-week foreign exchange auction, held last week, reinforced this message. The Central Bank put up 50 million dollars, trimming the amount by 10 million dollars earlier in May. Bids came from 14 banks, down from 16, and the weighted average clearing price landed at 133.17 Br, a rise of 0.19 Br from the prior round but still softer than the 0.26 Br gain logged two weeks before.

Central Bank officials have supplemented these price signals with a burst of regulatory changes. Importers may now prepay up to 50,000 dollars per transaction, 10 times the previous ceiling, in a bid to ease supply-chain delays for manufacturers hungry for raw materials.

Travellers, too, can access official channels more deeply. Individuals can buy as much as 10,000 for personal trips (up from 3,000), while business travellers may access up to 15,000.

Holders of foreign currency accounts may spend 20pc of their balances, double the earlier limit. The hope in policy circles is that these measures will siphon demand away from the unregulated parallel market by making it easier and less cumbersome to obtain dollars through licensed banks.

Perhaps the most far-reaching change lands on May 26, when the Central Bank capped all fees tied to foreign exchange transactions at four percent, a previously gentlemen’s agreement now stamped by the authorities.

Banks are compelled to publish detailed fee schedules starting in June, ending years in which opaque charges, sometimes tucked into correspondent-bank costs or wrapped in service labels, drove corporates and individuals to seek cheaper routes. By shining light on banks’ true margins, regulators plan to restore credibility and compress the wide gap between formal and informal markets.

Taken together, the rate tweaks, auction results, and rule changes signal that the Central Bank Governor, Mamo Mehiretu, is tiptoeing toward a looser and more transparent currency regime while trying to avoid the pitfalls of a sharp devaluation. The Brewed Buck continues its gradual slide within official bands, but the market’s architecture is shifting.

Larger prepayments for importers, higher travel allowances, richer spending limits for foreign-currency account holders, and a ceiling on charges all pointed to a phased liberalisation designed to let prices adjust without undermining confidence.

Nonetheless, fragmentation persisted. The nearly 10 Br spread between CBE’s old quotes and Oromia’s top-of-the-market rates showed how unevenly foreign currency is distributed among banks. Banks with diversified deposit bases or special relationships with exporters can afford to keep their rates low; others should pay up to satisfy clients or meet regulatory open-position rules.

Until that dispersion narrows, the foreign exchange regime will look less like a single market and more like a series of semi-connected pools.

Still, the direction of travel is clear. By pairing modest rate movements with broader access channels and cost transparency, policymakers hope to coax more Green Buck into the banking system and shrink the premium commanded by underground dealers. Whether that ambition can withstand external shocks — tighter global liquidity, rising energy bills, or fresh political strains — remains an open question.

For now, Governor Mamo appears content to test the waters, moving a few paces at a time and watching how the market absorbs each signal.

The coming weeks will test the durability of this strategy. If demand for hard currency subsides as importers tap larger prepayments and travellers rely on higher allowances, the official market could see improved liquidity and a narrowing of spreads. A sustained gap, by contrast, would imply that supply remains tight or that expectations of further depreciation keep dollars out of sight.

Either outcome will feed back into the Central Bank’s calculus as it decides whether to accelerate liberalisation or tighten once more.

For businesses and households, the immediate takeaway could be subtle but important. Official channels are becoming slightly more accommodating, though not yet generous. Importers may find it easier to settle invoices, and travellers will face fewer hoops. However, the higher quotes at banks such as Oromia reveal that the Green Buck remains a prized, and scarce, commodity.

Until reserves rebuild and confidence firms, the exchange rate story will likely stay one of careful steps rather than bold leaps.

A Country on Life Support Must Not Neglect Its Healers

Public hospitals have fallen eerily quiet lately. Corridors once crowded with patients’ relatives now echo, wards lie half-empty, and family members milled outside in anxious knots. The silence was not the result of medical efficiency but of absence. Medical professionals, mainly doctors, have downed tools.

Their nationwide strike, launched after years of pleading for “better wage structure and incentive systems”, has already run for over a week, leaving desperate patients to fend for themselves.

No one could doubt why the walk-out happened. “Livable wage” has become the rallying cry of professionals who feel condemned to financial indignity.

A public hospital in Addis Abeba advertised 50 posts for freshly minted general practitioners last week, offering a gross monthly salary of 10,600 Br, about 80 dollars at last week’s exchange rate. That sum scarcely covers a month’s rent for a cramped public condominium, let alone food or transport. Nurses fare worse, pocketing as little as 4,000 Br and 6,000 Br. By contrast, a doctor in private practice can earn up to 25,000 Br.

Leaders of medical associations set matters in train in the second week of April this year, lodging a 12-point petition with the Ministry of Health (MoH), under Mekdes Daba (MD), and threatening a nationwide strike if no answer came within a month. Among their grievances are crumbling equipment, chronic shortages of supplies and the grim reality that, in remote facilities, staff are compelled to improvise basic tools.

The ultimatum expired two weeks ago. Silence met it. Officials replied only that abandoning a life-saving vocation was “unethical” and “illegal”, urging sacrifice today for the “prosperity” of tomorrow.

When white coats finally walked out, the authorities reached for coercion. Police detained prominent physicians, close to 47, and courts swiftly arraigned them. Administrative orders demanded that staff report for duty or face dismissal. Fresh graduates were hustled in to plug the gaps, a stop-gap that may keep lights on but hardly compensates for seasoned expertise. Such tactics, tried and failed by governments everywhere, can only deepen mistrust and do nothing to treat the underlying malaise.

That malaise extends far beyond wages.

The federal health budget looks impressive at first glance, rocketing from 2.4 billion Br in 2006/07 to 100.2 billion Br this fiscal year and rising by almost 26pc in nominal terms in 2023/24 alone. Yet, inflation running close to 20pc (YoY) has eroded purchasing power. Adjusted for prices, last year’s budget allocation actually shrank by roughly three percent. Spiralling costs have eaten into every line-item, none more so than wages.

Meanwhile, the country boasts more than 400 hospitals, 3,900 health centres and over 15,000 health posts. In the 13 years beginning in 2010, the number of hospitals doubled, and health centres expanded by more than 30pc. The healthcare workforce has swollen, too, from about 4,000 doctors a decade ago to nearly 20,000. But the population has grown even faster, exceeding 100 million. One doctor is for every 5,843 citizens, far below the World Health Organisation’s (WHO) minimum of one per 1,000. The ratio of nurses and midwives, at about one per 1,000 Ethiopians, is scarcely better.

Shortages bite hardest on the periphery. In Somali and Afar regional states, scarcely any newcomer is willing to accept a posting. Modest housing allowances and tiny rural top-ups have failed to lure recruits. Even flagship urban hospitals struggle. At Tikur Anbessa Specialised Hospital, nurses in the maternity ward routinely juggle twice the recommended patient load. Some take home only 5,000 Br a month, barely enough for rent and basic food.

Physical structures may multiply, but without motivated staff, they are hollow shells.

External money props up much of the system, with donors covering 34pc of total health spending in 2020, for instance. However, geopolitical ructions and tighter budgets abroad are already squeezing that lifeline. Community-based health insurance (CBHI) now covers over 11 million households and was meant to shield citizens from ruinous bills. However, out-of-pocket payments still make up roughly one-third of overall expenditure.

Insurance cards would become worthless paper if doctors and nurses deserted public facilities.

Understandably, federal officials plead fiscal constraint. Ethiopia devotes a mere 36.4 dollars for a person to health each year, among the lowest in sub-Saharan Africa and far short of the regional average of 98 dollars. Inflation has blown a hole in pay packets across the public sector, and the federal government is wrestling with debt, war’s aftershocks and the costs of economic liberalisation. After all, it sits on a budget deficit for the 2024/25 fiscal year of 2.1pc of GDP, with total deficit financing requirements reaching 281 billion Br. This was even before Parliament approved an additional spending totalling 581.98 billion Br.

Nonetheless, refusing to confront the wage crisis rocking the medical community risks undoing decades of gains in vaccination, maternal health and disease control.

Better pay should be seen as no mere matter of fairness. For thousands of doctors and nurses, it is an existential issue. A stable and adequately rewarded workforce would cut turnover, curb brain drain, and improve outcomes, as well as investments that yield returns in productivity and growth. Even modest concessions could soothe tempers. The authorities might permit limited private practice for public-sector clinicians, expand performance-based bonuses or cultivate public-private partnerships to share revenues more equitably.

However, money alone will not fix everything in the long run. The strike is only the latest manifestation of broader political and economic governance problems. The administration funnelled scarce resources into showcase projects while neglecting investments that boost national productivity. Inflation, fuelled partly by rapid economic policy liberalisation and weak supply responses, has savaged household budgets. When bread and rent gobble a salary, appeals to patriotic sacrifice can only ring hollow.

At our press time late last week, the stand-off continued, with courtrooms processing detained medics, and ministers scrambling to keep facilities open. Each day of paralysis erodes public trust and imperils lives. These are days when babies are delivered without skilled attendants, chronic patients are skipping dialysis, and emergencies are turning fatal for want of a surgeon. The human cost of underpaying health professionals should be measured beyond the Birr saved but in lives lost.

Unless the authorities and striking medical workers find common ground soon, the exodus of talent will accelerate. Thousands of Ethiopians already sit examinations for posts in the Gulf, Europe and beyond, lured by wages that can be 10 times higher. Every departure represents years of subsidised training gone to waste and another widening gap on the ward.

Negotiation remains the obvious first step. The medical associations have shown they can organise and compromise if met in good faith. A phased wage rise tied to clear targets and financed through reallocation within the existing budget could be a helpful start. So would transparent timelines for upgrading equipment and restoring supply chains.

In the longer term, Prime Minister Abiy Ahmed’s (PhD) administration needs to rethink its economic policy priorities. Health spending cannot be considered a luxury to be postponed until growth is attained. It is a foundation for growth itself. So is respect for professional dignity. A government that quells dissent with batons and court summonses may win a day, but it will lose the commitment of the very people on whom public welfare depends.

The struggle unfolding in hospital corridors should be viewed as more than pay slips. It is a test of whether the administration can match lofty promises of prosperity with the practical needs of its citizens. If doctors and nurses cannot feed their own lot, they will leave, or stay home. Either way, patients will pay. The country’s impressive skylines and manicured asphalt roads will stand as monuments to misplaced priorities.

Ethiopia has made great progress in expanding access to healthcare over the decades. Letting that progress unravel for lack of a credible wage policy would be a tragic false economy. If it continues, the silence in the wards will echo loudest not in empty budgets but in the grief of families left untreated.