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A Year of Conditional Gains for Monetary Policy Reforms. But Endurance Remains the Test

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The experiment with a freely traded Birr, or one managed in a floating manner in practice, was a year old last week, and the numbers tell a story of both promise and fragility.

On July 29, 2024, Central Bank Governor Mamo Mehirtu ended a five-decade fixed-rate regime and let the currency float. In the 12 months that followed, foreign-exchange inflows jumped 33pc, to a record 32 billion Br, according to the National Bank of Ethiopia (NBE). Goods exports brought in 8.3 billion dollars, services 8.5 billion and remittances nearly 7.1 billion, evidence of demand long suppressed by chronic shortages of the Breen Buck.

Traders who once complained of “arbitrary allotments” now say dollars are at least findable, though the Brewed Buck crunch has grown sharper. Average daily sales of foreign currency to businesses more than doubled, to 25 million dollars, the Central Bank says. According to the International Monetary Fund (IMF), the midwife of monetary and fiscal policy reforms, hard-currency reserves tripled to 2.7 billion dollars, providing officials with a buffer they had lacked for years.

The Central Bank paired the float with quick deregulation. A rule that forced banks to buy Treasury bonds with hard-currency earnings was scrapped, as was a requirement that exporters surrender a fixed slice of dollar revenue. Roughly 10 exchange bureaus opened in Addis Abeba within six months, and more than 850 billion Br coursed through the electronic interbank market by June 2025. Inflation, which had reached nearly 20pc in mid-2024, slowed to 13.9pc by June. The Brewed Buck now trades inside a daily band set by a policy committee chaired by Governor Mamo.

However, not every shackle disappeared. Banks still pay teh Central Bank a 2.5pc exchange commission on each foreign-exchange deal. Smaller importers claim that when large corporations tap into new channels, they are left waiting. Critics warn that without deeper tools, such as forward-contract platforms and interbank credit lines, the gains could be reversed.

Those stresses surfaced during the six trading days from July 28 to August 2, 2025.

The average buying rate for the dollar inched up to 135.8 Br from 135.3 Br; the average selling rate rose to above 138.2 Br from 137.9 Br. Most lenders maintained the mandated two-percent spread between the bid and ask. Beneath the headline, the behaviour split.

Seven banks, including Berhan, the Commercial Bank of Ethiopia (CBE), and Global, maintained both rates at their current levels throughout the week. Amhara Bank, posting 136.78 Br for buying, showed a standard deviation of 0.60 Br on bids and 0.61 Br on offers, signalling nimble trading or uneven liquidity. Gadaa Bank’s swings were slightly smaller but still marked it as an outlier.

Volatility sharpened at the extremes. Oromia Bank posted the week’s highest bid, 138.54 Br, on August 2 and the top offer, 141.31 Br, signalling a readiness to pay up for scarce dollars while charging premium margins to favoured clients. Berhan Bank stood at the other end, bidding 132.47 Br and asking 135.11 Br, effectively sitting out of heavy flows. Such gaps show how the choice of counterparty can shift a large deal by more than four Birr.

The Central Bank itself raised eyebrows. On July 31 and again on August 2, it quoted identical buy and sell rates, erasing the spread, an unheard-of gesture under managed-float rules. Market watchers read the move as a public vote of confidence in the new market; others may see it as an effort to squelch arbitrage. Either way, it revealed the tug between discipline and dirigisme at the heart of the reform.

Volume-weighted figures add nuance. Awash and Abyssinia banks, both first-generation private lenders, nudged bids at 136 Br to the low-136s, respectively, a cautious climb that analysts linked to expected policy tweaks. The state-owned CBE and other big institutions stayed more rigid, reflecting conservative risk appetites.

Short-term jitters sit atop a longer depreciation arc. On August 16, 2024, only 18 days after the float, the industry average bid was 104.05 Br. By October 4, it reached 112.37 Br, an eight-birr, or eight percent slide that market observers called “a serious catch-up rally” to close the gap between official rates and real demand. The currency lost another four Birr in the year’s final weeks, slipping from 120.49 Br on November 9 to 124.66 Br by Christmas.

A lull followed. From late December 2024 through late February 2025, the average rate remained between 124.80 Br and 126.13 Br, touching a year-to-date low on February 25. Observers credit limited dollar injections, tighter import flows and behind-the-scenes moral suasion by the Central Bank.

In March, depreciation resumed. By April 12, the rate had reached 128.24 Br; in early May, the Brewed Buck broke the psychological 130 Br barrier. The pace quickened through June, peaking at 135.50 Br on June 20 before easing to 134.42 Br by mid-July. A sudden spike to 137.74 Br on July 9, led by Oromia Bank, showed how thin order books can magnify shocks, even as lenders like Berhan lagged far below the average.

Fundamentals still lean against the Brewed Buck. The chronic trade deficit, widened by imports of machinery, fuel, and fertilisers, outstrips earnings from coffee, gold, and services. Inflation near 14pc discourages savers from holding Birr balances. Without deeper financial plumbing, any external shock could test the new buffer.

Yet, the first-year scorecard offers progress. Businesses now find dollars in far less opaque fashion. Exporters keep more of their revenue. Banks have room to manage liquidity rather than channel it to mandatory Treasurys. Even cautious critics concede the float has added transparency.

The question is whether momentum will last. Forward-contract markets remain absent, and importers cannot lock in rates months ahead. Interbank credit lines are relatively short, so a disruption at one large bank can quickly ripple out. The Central Bank’s zero-spread play may have calmed nerves, but it also blurred the line between regulator and participant.

Small firms already feel squeezed. While dollar sales doubled overall, they say large corporations soak up supply before it reaches the second tier. Bankers counter that without broader reforms, such as electronic documentation for trade finance, the system cannot safely push more dollars downstream.

For Governor Mamo and his policy committee, the next phase may be as tough as the first. The Brewed Buck now trades within a band, but the band’s credibility is only as strong as the reserves behind it and the market’s faith in the authorities’ commitment not to revert to administrative fiat. At 3.1 billion dollars, reserves cover barely two months of imports, well below the conventional comfort zone of 2.1 months.

Still, the float has begun to create winners. Exchange bureaus that never existed under the peg have sprung up in hotel lobbies and shopping malls. Diaspora Ethiopians, once wary of official channels, are now using legal brokers to send remittances because prices have become comparable to those on the street. Almost.

Losses are visible, too. Importers facing tight Birr liquidity pay higher interest rates, and the Central Bank’s fee eats into their margins. Living costs, while easing, remain unprecedentedly high for wage earners who shop with Birr.

For now, the Birr sits at 136 Br, give or take, to a dollar with volatility clustered around big statements from the Central Bank and episodic dollar injections through auctions. A year on, the market is still learning what a floating currency means in a country accustomed to administrative prices. The first 12 months proved that demand was waiting. The next test will be whether supply, discipline and trust can keep pace.

Deluge Defies Drainage, Devours Addis Abeba

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getachew Shiferaw felt the danger before he saw it. On July 24, 2025, the midday sky above Addis Abeba darkened, and rain began to hammer the capital in sheets. A manager of the OLA gas station café on Menelik II Ave., across from St. Estifanos Church, he sprinted for his Toyota Vitz, hoping to beat the rising water.

“The speed of the flood was sudden,” he told Fortune. “I ran to get my car keys, but by the time I returned, the water had covered everything. I didn’t even change anything.”

The café’s warehouse drowned in muddy water; syrup, sugar and coffee beans were all ruined, costing 50,000 Br. The car’s electronics failed, repairs to the engine control module (ECM) and spark plugs ran 115,000 Br, and a tow truck added 3,500 Br. The insurer refused to pay, calling the deluge a natural disaster.

“Even electric vehicles are stuck in garages,” he said.

He looked at rows of engines silenced by floodwater.

Across town, taxi driver Mulatu Ayalneh steered through another pocket of trouble. For 15 years, he has driven the route from Mexico Square to Saris, yet the stretch near the Bulgaria area has turned treacherous. A maze of potholes fills with standing water, forcing him to crawl forward with hazard lights on.

“When it rains, the steering wheel goes where it wants,” he said. “There’s no good lane, only the least bad one.”

A piston once broke there, a memory that resurfaces whenever clouds gather. For Mulatu, the threat is simple. Water rises, touches a battery, and the engine quits. Electric cars face a greater risk.

“Repairs happen,” he said. “But nothing lasting.”

Addis Abeba, home to more than five million people (a data the city administration used despite no official census carried out for nearly two decades), has endured week after week of flash floods that paralyse traffic, submerge homes and shred livelihoods. On Menelik II Avenue, water roared through the parking lots beside the Ghion Hotel, lifting vehicles “like toys” and depositing them metres away.

Inside the Riverside Project Office behind the hotel, workers wearing muddied clothes picked through waterlogged files, mud clinging to filing cabinets, refrigerators and toppled chairs.

“Everything is soaked,” Getachew muttered, surveying the wreckage. “We don’t know where to start.”

The Addis Abeba Urban Beautification & Green Development Bureau, charged with restoring the city’s rivers, was itself swamped.

“The rivers had changed from being graceful to a danger,” said Endashaw Ketema, who heads the Bureau’s department for watershed and green development.

The same scenes repeated along the Ring Road in the Bole area, as well as in neighbourhoods such as Kotebe and Betel. Cars stalled in the middle of the lane, their headlights dimmed by brown water that covered the entire intersection. Car-wash stations fell silent, and silt stains on walls marked the high-water line.

Wondimu Seta, the city’s deputy mayor and its general manager,  acknowledged the scale of the problem and announced the establishment of a special task force to address seasonal flooding. His Administration has erected 64 flood-protection walls, in addition to the larger Riverside Project. The task force draws staff and machinery from several departments and districts, closing human-resource gaps and coordinating faster responses.

“We’re fixing the century-old problem of poor infrastructure coordination,” Wondimu said.

A new rule prohibits construction within 30mt of rivers, matching the city’s master plan. Yet, damage rolls on.

Abel Temesgen, a 39-year-old businessman, switched from a fuel-hungry Toyota Land Cruiser to a BYD electric vehicle to escape soaring diesel prices. He thought that with diesel prices continuing to rise, he could match the car’s value in a year. Three weeks before he spoke, heavy rain transformed Summit Road into a river. Abel tailed a Sinotruk, thinking the larger truck would part the water.

“That was the first time I believed in a Sinotruk,” he joked.

But when water spilt over the EV’s hood, he pulled over. The car shut down and, weeks later, the cause remained unclear.

“We still haven’t gotten any feedback,” he said. “My mistake was thinking I was driving a Land Cruiser. You have to drive an EV carefully.”

Friends had warned him to buy a high-rider. He now repeats that advice.

According to Eyasu Solomon, communication director of the Addis Abeba City Roads Authority (AACRA), crews repaired more than 483Km of drainage in the past fiscal year, work he believes prevented worse ruin. He blamed the concrete poured in floodplain buffer zones.

“What used to be absorbed by the ground is now blocked by concrete,” he said. “That runoff ends up on roads.”

The Authority is upgrading pipelines from 60cm to one metre in diameter and digging wider trenches. Backed by Japanese technical aid and World Bank funding, city officials are revising the master drainage plan, a 10-year project that faces its primary limitation of financing. Despite a budget of 17 billion Br in the past fiscal year, the Authority exceeded seven billion Birr. It now marked flood-prone “black spots” for urgent attention.

The Bole-to-Gerji and Qaliti-to-Tuludimtu roads were built with drainage in mind, yet many side routes still lack proper systems.

“That is where we’re seeing the biggest challenge,” Eyasu told Fortune.

Girma Hailu, director of cleaning services at the Addis Abeba Cleansing Management Agency, rejects the claim that garbage is the main culprit.

“Our mandate is to clean dry dirt,” he said. “Drainage systems are clogged by wet waste, mostly mud.”

During the flood near the Ghion Hotel, his team rushed in.

“We couldn’t find any of our waste there,” he said. “But, we still provided emergency cleaning.”

He conceded that mud removed from drains sometimes ends up back inside.

“We sweep what’s on the asphalt,” he told Fortune. “We collect what’s in every house. But the drainage is closed by mud.”

A recent survey identified 2,594 open manholes, many of which were missing covers due to theft or damage. According to Girma, crews now work four shifts across 48 areas, targeting 3,209Km of roadside with 11,500 staff and 20 night-operating machines.

Rainfall patterns amplify the strain. Addis Abeba receives nearly 70pc of its average 1,400 million-litre annual rainfall between June and September. Droughts bake the soil into hardpan. When the sky opens, little soaks in. Climate models suggest those dry spells could become 53pc more frequent in the two decades beginning in 2040, even as the city already endures about three months of extreme drought each year. The hardened ground, clogged rivers, and swollen streets leave nowhere for water but to flow into homes, shops, and car engines.

The city’s topography offers little mercy. Three rivers — the Bantyeketu, Kebena and Aqaqi — thread through a basin rimmed by hills. The Aqaqi, the largest of the trio and a tributary of the Awash River, once ran 53Km from the highlands to the Aba-Samuel reservoir. Now, researchers call stretches of it “dead rivers,” and the Little Aqaqi, fouled by sewage and industrial waste, is tagged an “open sewer.” Plastic bags bob where fish once swam.

The Aqaqi river system, fed by the Kebena, Kechene and Ginfile streams, once drained vast slopes. Today, much of it is clogged. Kolfe Keranio District has turned riverbeds into dumping grounds, and runoff courses onto roads.

Mamo Kasegn, a hydrologist at Addis Abeba University, argues that patchwork fixes miss the root flaw of design.

“If you look at Shiro Meda and the city’s core, they have different needs,” he said. “Do you think the same drainage system can control the water in both?”

“The drainage system plan is not feasible,” he said, adding that policy, not just construction, is at fault.

City officials argue that Mayor Adanech Abiebie’s Administration flagship Riverside Project seeks to reverse this slide, starting with 42Km along the Kebena and Kechene rivers in phase one, reviving more than 600Km of waterways. Plans call for parks, cafés and promenades up to 200mts wide. Japanese engineers have lent equipment and expertise to clear blocked drains and riverside roads, yet financing gaps linger. The city’s Roads Authority, for instance, has identified notorious emergencies.

A Mekanisa flood two years ago choked streets with soil. Gurd Shola Bridge was flooded last year until workers cleared the site. Even so, standing water still pools at the location after storms.

Elevation in the capital swings more than 1,100mts from its highest to lowest points, but many blueprints ignore that.

Mamo insisted on models tailored to slope, runoff and manhole spacing, along with new regulations and money. He recalled the floods of 2020, referring to them as natural events exacerbated by human decisions.

Deputy Mayor Wondimu says the new task force will help close such gaps by pooling machinery, skilled workers and rapid-response teams each rainy season. The city has also drafted rules barring construction within river setbacks and promises tougher enforcement. Eyasu, whose crews install larger pipes and map black spots, sees progress. Girma, who sends teams of sweepers and vacuum trucks, sees commitment. Yet, Getachew, staring at his ruined supplies and crippled sedan, waits for proof.

“You fine someone 100,000 Br for damaging infrastructure,” Mamo quipped. “But, what happens when someone loses their car or home to flooding? What fine does the government pay then?”

Addis Abeba’s struggle is at once old and new. The geography has always funnelled water toward the basin; the climate has always delivered torrential afternoons. What changed is the city itself, with more concrete, more cars, and more people. Drainage lines designed decades ago buckle against that weight. Policymakers now draft blueprints that promise coordination, modern standards and greener riversides.

However, it is always close at hand, testing roads, engines and promises. It is a fast-growing metropolis, where nature keeps its own schedule, indifferent to man-made plans.

 

UNDP’s Toughest Frontiers

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The UNDP has expanded its narrative from “poverty eradication” to what Ahunna Eziakonwa, the UN’s assistant secretary-general, calls “promoting prosperity,” combining the usual public investments in schools, hospitals and natural-resource management with new pushes to draw in private money and tap the promise of the African Continental Free Trade Area (AfCFTA). “Infrastructure alone is worthless without human capital,” says Eziakonwa, who began her role as UNDP’s regional director for Africa in August 2018. She manages programs in 46 countries and oversees an annual funding of over 1.2 billion dollars, guiding her work through overlapping crises, from climate shocks that threaten harvests to health setbacks that stall gains against poverty, while a drift toward authoritarian rule adds pressure.

The agency’s biggest bet is on Africa’s emerging tech hubs. Timbuktoo, a facility launched in 2024 with three million dollars but a target of one billion dollars in resources over 10 years, has already handed out 30 million dollars to university-based innovation centres in 11 countries. Those funds have backed 160 start-ups and helped attract additional pledges, including Gabon’s 200 million dollars for community development and the DR Congo’s 600 million dollars commitment. A smaller Manutech pilot in Addis Abeba has invested six million dollars in ventures, three-quarters of which were founded by women, while early grants to pan-African artificial-intelligence institutes demonstrate the same focus on “anticipatory” crisis prevention linked to growth.

“Success is often invisible,” Eziakonwa told Tamrat G. Giorgis, our managing editor, in an exclusive interview held last week. “If cooperation holds and trust is built, these early seeds can still grow into broad prosperity.”

 

Fortune: The UN, in general, and the UNDP’s Africa mandate is to eradicate poverty while keeping the planet safe. And that is to provide people “life in freedom from want and freedom from fear,” without having or reducing violence. But do you feel like the world has reached a point where you are doing these things against all odds because of climate shock, which should not be controversial, but it is? and there is also a backslide into authoritarianism across the world? In this environment, do you feel you are trying to do that against the tide?

Ahunna Eziakonwa: I think that would be a fair statement because the world is awash in crises today. Those crises are interdependent. Food security depends on climate stability, and health disruptions affect poverty reduction and development. We face multiple, borderless shocks, none confined to a single country or region, while the multilateral system designed to unite us is under strain. As UNDP, we are certainly operating in one of our most challenging eras for driving the development agenda, with geopolitics often working against progress. These are truly unique historical moments.

Q: I remember when we had a discussion last time, you had an idea of an engagement with the African Union (AU) and regional institutions like IGAD, trying to have a deeper engagement in that response. Have you succeeded in that, in pushing the UNDP from its advisory role into becoming a catalyst for change?

Catalysing regional bodies has been central to our new four-year strategic plan, which we finalised after extensive consultations. We’ve reframed our narrative from only ‘poverty eradication’ to ‘promoting prosperity’ because the language we use shapes our mindset.

Talking prosperity energises stakeholders around initiatives like the African Continental Free Trade Area (AfCFTA), which is essential for Africa’s development. We have ramped up advocacy and programming behind AfCFTA, identifying and tackling implementation barriers to unlock intra-African markets. Through policy support, secretariat partnerships, and national-level engagement, we are helping to fast-track the AfCFTA to boost productivity, sustainability, and industrialisation.

Q: There is an ideological debate over the poverty lens, placing responsibility on structural and societal factors, implying the state must aid individuals. Contrary to this, the prosperity lens places responsibility on individuals, implying the state’s role is merely to showcase what is possible and affluence. How do you reconcile these?

That interpretation of prosperity is not ours. Everywhere true prosperity has occurred, the state has played a central role alongside private capital. You need infrastructure such as roads and bridges, yes, but infrastructure alone is worthless without human capital.

Countries that triumphed over extreme poverty, from South Korea, Singapore to Malaysia, and China, invested heavily in education and health first. The state must finance and oversee these systems. It must govern natural resources so that benefits reach the population. Prosperity arises from a partnership between developmental states and private enterprise, not an either/or.

Q: Critics argue that a prosperity-oriented state may prioritise vanity projects, such as fountains and showpiece roads, over schools and hospitals. How do you respond?

The value of infrastructure is realised only when people can use it. You can build roads to nowhere if communities lack the skills or resources to leverage them effectively. That is why human capital comes first—productivity, like who produces what, depends on skilled labour. Without investment in people, infrastructure becomes a white elephant. Evidence from Asia shows that you have build people’s capabilities before infrastructure.

Q: Your annual portfolio in Africa is about 1.2 billion dollars, covering 46 countries. When geopolitics comes in the way of consensus at the UN, how do you prioritise where to allocate scarce funds?

We reject the notion of doing less with less. Development needs are rising, and we have to find ways to crowd in resources. At the Financing for Development Conference [held in Spain in July 2025], we pushed continually on financing for development, highlighting social protection, climate finance, and fair cost of capital.

It is intolerable that countries bearing the brunt of climate change are forced to pay more to borrow. We argued that security is built on development, and investing in human solidarity counters extremism. Under South Africa’s G20 presidency, themes of sustainability, equality, and solidarity gained ground. There is enough money globally; the question is one of political will and priorities.

Q: Last time we spoke, you mentioned Senegal’s pledge of 200 million dollars in cofinancing, which had not yet scaled up.

It is scaling. Since we last spoke, Gabon has committed 200 million dollars for a similar integrated community development programme; the DRC has committed 600 million dollars to bridge the development deficit in remote areas.

Our principle is “no one left behind.” People living in peripheries cannot be excluded without risking violent extremism. We advocate that countries utilise existing resources more intelligently, tap innovative financing options  such as green bonds and climate swaps and better leverage their natural resources.

Q: Let’s discuss Timbuktoo. Launched in 2024 with three million dollars pledged and a target of one billion dollars over 10 years, it has reportedly raised only two percent so far.

Timbuktoo is more than a financial envelope. It is an ecosystem support facility that transforms mindsets to recognise African talent and innovation. It raises confidence and builds connections between public, private, and academic sectors.

We have initiated university innovation ports in 11 countries (26 by the year’s end), each with over one million dollars in investment from core and partner funds. We have already deployed more than 30 million dollars to infrastructure, mentorship, and policy units. The one billion dollars target is catalytic: 300 million dollars builds ecosystems and derisks investments, unlocking the remaining 650 million dollars in venture capital.

Our acceleration programme now includes 160 startups, many of which have already attracted investors before receiving grants. In under a year, Timbuktoo is reshaping Africa’s innovation landscape.

Q: The Manutech hub pilot has six million dollars invested, with 40 startups trained, and 75pc being women. How are you measuring success? What is the trajectory for the next two years?

Manutech is the continent’s first tech manufacturing hub, a bold experiment. We are mining the experiences of the first cohort to refine our selection criteria. Deeptech founders are already collaborating across cohorts, discovering complementary skills and expertise.

Over the next two years, I anticipate that these clusters will consolidate into competitive portfolios, attracting larger investments. Collaboration is the key metric. When founders band together to pitch unified propositions, we will see real proof of concept.

Q: The next frontier is the AI race. China, the US, France, and now Germany are all developing sovereign AI. African countries risk being left behind. Is UNDP stepping up to support pan African AI sovereignty?

National commitment is paramount because sovereignty requires a strong political will. UNDP can provide knowledge and convene partnerships alongside ITU to help countries develop strategies aligned with their capabilities. But, AI infrastructure is expensive; African countries should pool their resources and colearn.

I applaud early movers such as Ethiopia, Rwanda, Nigeria, and South Africa that are establishing institutes and summits. Our role is to amplify those efforts, promote pan African computing centres, and connect innovators across borders.

Q: There was a 2024 report suggesting the UN failed to protect civilians in conflicts in Ethiopia and Sudan. Can you clarify UNDP’s role in protection?

UNDP is not a peacekeeping or enforcement agency; that is a UN peacekeeping mandate. Our role is advisory and developmental. The UN system acknowledged shortcomings in some missions, but prevention is the most challenging area to fund because success is often invisible.

UNDP contributes to the Secretary-General’s prevention strategy, but lacks a standalone protection mandate. We finance mediation capacity, but the ultimate responsibility lies with member states and peacekeeping missions.

Q: In Ethiopia, poverty fell from the mid-30s to the mid-20s percentage, then the conflict reversed gains, particularly in Tigray Regional State, where the rate rose to 45pc. How does the UNDP maintain impartiality among warring parties so that it can prevent a slide back like this?

UNDP staff pledge impartiality under UN values. When breaches occur, disciplinary measures follow. We hold regular trainings and town halls. I chaired several in Ethiopia to reinforce neutrality.

Human fallibility means incidents may occur, but the system responds swiftly. Continuous reminders and top-level intolerance for integrity breaches define our culture. The key is unwavering enforcement of impartiality among staff.

Q: You have championed the humanitarian development peace nexus since Sudan’s and South Sudan’s conflicts. Has UNDP undergone institutional reforms to deliver integrated programmes ahead of crises?

Yes, we have restructured our crisis offer into three pillars: anticipatory, response, and recovery. We plan to run development services in parallel with humanitarian action, rather than sequentially. In Chad, for instance, we integrated UNDP’s development portfolio with humanitarian actors to build resilience among both refugees and host communities, funded by the African Development Bank (AfDB).

We have formalised stabilisation programmes, working with security forces to clear areas of insurgents, rebuild infrastructure, and restore livelihoods, demonstrating that communities rebuilt in this nexus see violence reduced by up to 80pc.

Q: On anticipatory analysis: in polarised societies, how does UNDP ensure the information it uses for conflict prevention is credible and impartial?

Our advantage is our presence on the ground. Country offices cultivate trust in communities; we triangulate data from NGOs, think tanks, militaries, and civil society partners. Multiple sources filter biases, though surprises still happen.

Technology such as predictive analytics, drones, and ICT, augments human networks but cannot replace judgment. The real challenge is not spotting warning signs, but having access to decision makers who can act on them. That remains our toughest frontier.

EDITORS’ NOTE: This interview has been updated from its original version, where the introduction “The UNDP has shifted its mission” has been updated to “The UNDP has expanded its narrative” on August 7, 2025

Ahadu Bank Taps Veteran Banker During Capital Countdown

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Regulators at the National Bank of Ethiopia (NBE) have confirmed the appointment of Mulugeta Beza as Ahadu Bank’s third president in as many years. The appointment marks a crucial leadership transition as the financial institution races against time to meet NBE’s looming capital directive.

Regulatory approval for Mulugeta’s appointment was granted on July 7, 2025, one year ahead of the NBE’s deadline for all commercial banks to increase their paid-up capital to five billion Birr. With Ahadu Bank’s capital standing below two billion Birr, the pressure to mobilise resources and secure investor confidence has never been more acute.

Mulugeta, 45, steps into the role amid rapid institutional expansion and intense scrutiny. Born and raised in Addis Abeba, his two-decade banking career began at Wegagen Bank in 2003, before advancing through the ranks at Bank of Abyssinia (BoA) over 14 years. He later served as chief business officer at Buna International Bank (BIB).

Mulugeta holds dual undergraduate degrees in accounting and finance, and information systems from Addis Abeba University, and an MBA from the International Leadership Institute.

“Our vision is to create meaningful change for individuals, businesses, and the broader community,” Mulugeta said in his first remarks following his confirmation. “We aim to ensure our impact resonates at every level.”

Ahadu Bank’s Board Chairman, Anteneh Sebsebie, praised the incoming president for his operational acumen and “unwavering integrity.” According to Anteneh, the leadership change signals a renewed push for strategic clarity, operational efficiency, and sustainable growth.

“The President is expected to foster a culture grounded in integrity, innovation, and accountability,” Anteneh said.

Incorporated in July 2022 with over 10,000 shareholders and 1.2 billion Br in paid-up capital, Ahadu Bank has grown at a brisk pace. As of the end of the 2024/25 fiscal year, the Bank reported total assets of 10 billion Br, deposits nearing 7.8 billion Br (a 68pc year-on-year surge), and gross profit before provisions and taxes of 569 million Br, up 278.1pc from the previous year.

It also generated 88 million dollars in foreign exchange and increased its customer base to over 1.1 million accounts.

These results were unveiled during a performance review held on July 28 at the Haile Grand Hotel on Asmera Road, where executives touted rising public trust and an expanding footprint.

“These achievements reflect the growing confidence customers have placed in us,” reads a statement the Bank issued.

However, the upbeat metrics belie underlying challenges, particularly the structural constraints of scaling a fourth-generation bank within the tightening regulatory regime.

Leadership turnover has been a hallmark of Ahadu Bank’s short history. Founding President Eshetu Fantaye served 17 months before being succeeded by Sefialem Liben in April 2023. Sefialem’s 21-month term ended earlier this year, with Sisay Gebru, chief corporate services officer, serving in an interim capacity until Mulugeta’s confirmation.

For London-based financial analyst Abdulmenan Mohammed (PhD), the appointment is both timely and telling.

“The new President is stepping into a difficult and demanding role,” he said. “Despite encouraging growth, the Bank is undercapitalised and faces a challenging regulatory environment.”

The NBE’s revised capital directive, requiring all commercial banks to meet a five billion Birr threshold by July 2026, places younger financial institutions like Ahadu Bank in a precarious position. Without a substantial injection of capital or retained earnings, the Bank risks regulatory pressure for a merger or acquisition.

Abdulmenan warns that shareholder mobilisation and strategic partnerships will be essential.

“Meeting the capital requirement should be the priority,” he said, urging Mulugeta to diagnose internal inefficiencies and cultivate stronger relationships with high-value clients. “Relying on legacy banking models is no longer viable. The Bank needs technology-led innovation, agile product strategies, and a sharp focus on revenue diversification.”

He also stated the importance of increasing foreign exchange inflows in a macroeconomic environment starved of hard currency, pointing to Ahadu Bank’s recent forex earnings as a foundation to build upon.

New Directive Mandates Central Oversight, Digital Integration for SOEs

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A sweeping new directive has been issued, marking a shift in the governance of state-owned enterprise (SOE) procurement. This directive brings over 40 major enterprises under unified oversight and digital control for the first time.

Issued by Ethiopia’s Federal Public Procurement & Property Authority (FPPA) on May 26, 2025, the directive is hoped to end years of fragmented and often opaque practices, merging procurement protocols with the federal government’s push for digital governance and fiscal transparency.

The directive encourages the adoption of Ethiopia’s Electronic Government Procurement (eGP) system by SOEs managed under Ethiopian Investment Holdings (EIH), the sovereign wealth fund overseeing assets exceeding 150 billion dollars, including heavyweights such as Ethiopian Airlines Group and Ethio telecom. Until now, these entities operated autonomously, largely avoiding the scrutiny and uniform procedures applied to conventional public institutions.

“Unlike federal service providers, SOEs are profit-oriented entities,” said Melaku Teguade Aregu, executive for Property Reform & Capacity Building at the FPPA. “The directive reflects that distinction,”

Historically, procurement within the SOEs has been marred by inconsistent practices, bureaucratic inertia, and a lack of specialised auditing. General auditors, lacking in procurement-specific expertise, were tasked with oversight, creating space for inefficiencies and, in some cases, corruption.

One prominent case is the former Metals & Engineering Corporation (now Ethio Engineering Group), whose senior executives, including ex-CEO Kinfe Dagnew (Maj. Gen.), were implicated in an alleged multimillion-dollar corruption trial at the Federal High Court.

Re-established in September 2020 under a Council of Ministers regulation, EEG operates nine subsidiary industries incorporating automotive, agricultural machinery, construction equipment, electronics, and plastics. Given its scale, EEG is one of the highest-volume buyers of industrial equipment in the country.

“This will increase the bidder base,” said Tamrat Dilla, head of supply chain at Ethio Engineering Group, seeing the new directive as a corrective step. “It will give us the clarity and flexibility we need at the design and procurement stages,” he noted.

The directive grants the FPPA an explicit auditing authority and encourages SOEs to comply with digital procurement practices. Although the eGP platform remains optional currently, FPPA officials have made clear it will soon become obligatory. According to officials, the system will reduce audit complexity and enable remote and real-time monitoring.

One of the directive’s most notable aspects is its flexibility, which is tailored to the commercial realities of SOEs. For the first time, direct purchasing methods, prohibited for conventional government agencies, are permitted. The framework supports strategic procurement relationships with original equipment manufacturers, a measure meant to improve quality and cost efficiency for high-value purchases such as aviation components, industrial machinery, and IT infrastructure.

Also embedded is a whole-life cost approach, replacing the narrow focus on initial prices with a holistic evaluation that includes maintenance, depreciation, and lifecycle sustainability. The authors of the directive state that this recalibration is designed to improve procurement outcomes, particularly for capital-intensive sectors.

“We’re no longer just looking at sticker price,” said Dagmawi Zeleke, communications director at EIH. “That’s how responsible procurement works.”

Regional governments have already demonstrated the viability of localised e-procurement platforms. Six regional states have developed systems that have reduced procurement costs and timelines. Nonetheless, the FPPA directive positions the federal eGP system as the single authoritative platform for SOEs. It also encourages interoperability, allowing regional innovations to complement the centralised framework.

“Procurement from other SOEs should be about quality, not relationships,” said Tamrat.

The Group is now transitioning from a localised e-procurement system developed with INSA to the federal platform.

The directive also encourages procurement among SOEs, provided quality standards are met. The authorities believe this could break entrenched practices of favouritism and institutional nepotism.

“The goal is to stimulate a competitive, intra-public market anchored on performance, not political affiliations,” said officials.

Tadesse Kebede, a former senior official at the procurement authority and current EU project manager, praised the initiative’s ambition but flagged institutional bottlenecks. He pointed to structural weaknesses in contract management, especially in construction and industrial procurement, which have historically contributed to project cost overruns and failures.

“Many construction and industrial projects failed because contracts weren’t managed properly,” he said.

Repeated findings by general auditors had exposed systemic issues in procurement, from unnecessary criteria to flawed evaluations. Tadesse cited contract management as a persistent weakness.

“Transparency isn’t only about putting up an ad,” he cautioned. “It should be embedded in every phase of the process.”

Tadesse lauded FPPA’s auditing mandate, now anchored to international benchmarks, but warned that success depends on upskilling procurement professionals and auditors.

“Without a robust training regime,” he argued, “the new oversight mechanisms risk faltering in implementation.”

He also voiced scepticism about decentralised procurement platforms developed at the regional level, insisting that a unified, mandatory federal eGP system is essential for long-term credibility and efficiency.

“Centralised eGP should be mandatory,” Tadesse told Fortune.

 

False Banana to Get Real Following Ministry’s Enset Investment Plan

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Federal authorities in the agricultural sector are placing a strategic bet on an indigenous crop that has been overlooked mainly beyond its traditional highland roots. Enset, also known as “false banana,” has become the centrepiece of a 10-year initiative to revolutionise agriculture, boosting exports and anchoring national food security.

Unveiled by Advisor to State Minister for Agriculture Ali Mohamed (PhD), the National Enset Development Flagship Program (NEtDFP) envisions a radical transformation of the once-subsistence crop into a commercial powerhouse, generating 13.46 billion Br. If targets are met by 2033, Enset will feed 40 million Ethiopians, generate 4.9 billion dollars in export revenues, and create 1.2 million jobs.

“Using Enset is very labourious and prone to disease,” Ali said. “Lack of policy attention, weak private sector involvement, limited processing, and poor market extension have all been major hurdles. The program is aimed at eliminating this.”

According to agricultural experts, the ambition, while grounded in scientific and policy groundwork, is nothing short of audacious.

For researchers like Addisu Fekadu (PhD), an Enset Project Coordinator, the science is no longer in question. What matters now is uptake.

“It hasn’t been done before,” he said of the new processing model. “But if the rollout succeeds, Enset’s future may finally stretch beyond survival.”

Enset has long played a vital yet understated role in the southern highlands, sustaining over 20 million people during lean seasons. Known for its drought resistance and low input requirements, its resilience has been well documented. Yet, laborious post-harvest processing, requiring months of fermentation and intensive manual labour, shouldered mainly by women, has constrained its wider adoption.

That bottleneck is precisely what NEtDFP targets to dismantle.

Researchers at Arba Minch University, a crucial institution in bridging enset tradition with innovation, backed by the Sidama Agricultural Research Institute, have slashed the processing cycle from 90 days to seven. Communal machines powered by either electricity or diesel, enable cooperatives to mass-process Enset pseudostems into flour suitable for a growing list of products, including bread, biscuits, and cakes.

Vulnerability to pests and disease, post-harvest decay, cumbersome processing methods, a three-month fermentation period, and unpleasant storage.

“In general, it’s not an easy task,” Addisu said, summarising the findings. His team has engineered electric and diesel-powered processing machines, reducing preparation time from three months to just seven days. The machines, priced between 100,000 and 200,000 Br, are not intended for individual households but rather for communal use, much like rural grain mills.

To address storage challenges, Arba Minch University developed special pottery containers that eliminate odour and preserve enset flour in a white and marketable form.

“We are not selling to individuals,” said Addisu. “We expect people to organise and use it for entrepreneurship.”

This model encourages mothers and youth to form cooperatives and access technology collectively, aligning with the program’s goal of community empowerment through agricultural entrepreneurship. Addisu believes the latest innovations offer a turning point in enset’s commercial journey.

“These advancements lead to high-quality products with less waste,” he said, citing developments like enset-based bread, cakes, cookies, and white flour. Currently, more than 40 enterprises use the newly developed machinery and pottery systems designed at the university, widening market acceptance both locally and abroad.

“When have you seen market acceptance in Kenya?” Addisu told Fortune.

Specialised pottery developed for storage curbs odour and spoilage, addressing consumer aversion.

Start-ups like Lucy Enset are emerging to bridge the gap between tradition and commerce.

Yalemwork Seifu, production manager, described how Lucy Enset processes raw Enset into flour, which is then used for cakes, bread, and even nutritionally enhanced products.

“The flour is just like wheat, but it is Enset,” Yalemwork told Fortune.

Their wheat-like flour, derived from genetically enhanced tissue-cultured Enset, sells for 300 Br a kilo and is blended with nutrient-rich additives such as moringa, catering to urban and health-conscious markets.

However, despite its promise, the leap from village fermentation pits to international supermarket shelves remains hindered by many constraints.

Enset Bacterial Wilt (EBW) poses a grave biological threat. The disease can decimate entire fields if left unmanaged.

Pathologists such as Hirut Tsegaye (PhD) from Hawassa University are working to promote resistant strains and advocate for improved sanitation and tool hygiene in farming communities.

“It can destroy 100pc of the product,” she told Fortune, calling for intensified research and training. “If there is water, there’s a high chance of disease transmission.”

Farmers’ lack of awareness during training campaigns often compounds the problem. Traditional farming tools remain widely used, further spreading disease. Although Sidama is home to approximately 60 resistant enset varieties, these are largely ignored by farmers who prioritise traits linked to bula and kocho production.

“Farmers should use the proper variety type for appropriate locations to reduce the risk,” said Hirut.

Mechanisation’s rollout is vulnerable to inflation and currency volatility, with the cost of machines becoming prohibitive in several districts. Global supply-chain frictions compound the problem. Export markets, too, remain largely untested outside of East Africa.

Despite the government’s lofty projections of nearly five billion dollars in export revenues by 2033, up from a mere 3.6 million dollars last year, the commercial viability of Enset abroad remains uncertain.

Addisu, however, remains resolute.

“It’s shocking because it hasn’t been done before,” he said. “But, we’ve studied this matter thoroughly.”

According to the State Minister, NEtDFP is more than ramping up yield, from 12.3 million tons to 99 million, and doubling productivity to 120Kg per plant. It also seeks to spread cultivation beyond the humid highlands. Officials are eyeing parts of Amhara and Tigray regional states, such as Gojjam and Mekelle, where wild Enset relatives grow.

The idea is to leverage native biodiversity and develop site-appropriate varieties for mid-altitude agroecological zones, diversifying rural livelihoods and reducing overdependence on cereal imports.

Environmental benefits are also a central component of the initiative. Expanded Enset cultivation is projected to save over 62 million tons of topsoil and contribute to carbon sequestration. Import substitution is another key metric. Experts believe that replacing wheat and other cereals with domestic Enset flour could save 55 billion Br in foreign currency over a decade.

Recognising the historical fragmentation of agricultural development programs, NEtDFP includes governance mechanisms designed to ensure accountability. Public dashboards, regular audits, and a cross-sectoral technical committee promise transparency and efficiency.

Arba Minch University, the Sidama Agricultural Research Institute, and private players, such as Lucy Enset, are expected to coalesce under a unified strategy.

Whether this alignment holds remains to be seen. But early signs of synergy are emerging.

Cosmo Trading Back in Court as Prosecutors Challenge Previous Rulings

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A long standing corporate dispute over Cosmo Trading Plc has resurfaced at the Federal Supreme Court, after a federal prosecutor, Kahesay Negasi, lodged an appeal challenging a prior ruling that favoured Azeb Mihretab and her co-defendants in a six-year-old legal battle over contested share transfers and alleged financial misconduct.

The appeal, submitted on July 21, 2025, targets a decision that upheld the legality of a 2017 transaction in which Azeb, the major shareholder of JJ Property Management Plc, acquired a majority stake in Cosmo Trading. The acquisition, valued at 20 million Br, involved 19 shares at a par value of 1,000 Br and an additional 50 shares from two minority shareholders. What began as a corporate takeover quickly devolved into a complex judicial saga, with allegations of coercion, irregularities, and financial malfeasance.

Kahesay’s appeal alleges that the previous court overlooked critical evidence and committed procedural missteps. Central to the Prosecutor’s argument are claims that the defendants engaged in activities “akin to unlicensed financial institutions,” including high-interest lending, illicit remittance schemes, and money laundering.

Named as respondents alongside Azeb and Temesgen are Adeferes Habte, and general managers from affiliated companies, TTH Trading Plc and Boston Real Estate. Mesfin Asmamaw, another former executive, faces additional allegations, including intentional harm.

In the Prosecutor’s appeal, key procedural shortcomings were raised, including that only nine of the 35 witnesses initially listed by the Prosecution were heard during the trial. Kahesay claims this undermined the comprehensive examination of the evidence. He also stated the delayed submission of a crucial audit report by the Ministry of Revenue, “a document repeatedly requested by the Court,” which the Prosecutor insisted obstructed justice.

The initial court proceedings were several intertwined allegations, including usury, money laundering, and misuse of managerial positions. Specifically, Azeb, alongside associates Haregewoin and Efrem, faced accusations of facilitating a high-interest loan of 50 million Br to Haileyesus at an interest rate of nine percent.

The Prosecution contended that Azeb had transferred 3.2 million Br into Haileyesus’s account, later producing disputed documentation of a 60 million Br property sale allegedly never authorised by Haileyesus. It was alleged that Haileyesus faced considerable pressure to relinquish company shares and other assets.

Federal prosecutors assert in their appeal that Azeb and Temesgen engaged in a pattern of “illicit financial activities” while managing Cosmo Trading Plc. They stand accused of securing bank loans and subsequently diverting more than 32 million Br to JJ Property Management and affiliated entities under their control.

Further charges claim that Temesgen misappropriated company revenues derived from rents and asset sales.

Adding complexity, the Prosecution described additional financial misconduct, alleging “illegal remittance operations,” where approximately 383,000 dollars in state revenue was allegedly lost due to funds being moved through third-party accounts, thereby masking their authentic sources.

The fifth count of the indictment implicates corporate entities, JJ Properties, TTH Trading, and Boston Real Estate, in “deliberately obscuring these financial transactions’ origins.” Mesfin, separately, faces charges related to “abuse of his managerial role at Cosmo Trading.”

Despite the gravity of these allegations, an earlier Supreme Court ruling in April had reversed a Federal High Court decision that nullified the original share sale agreement, deeming there was insufficient evidence to substantiate claims of coercion by Azeb. The Supreme Court justices subsequently remanded the case back to the lower court for further scrutiny of the payment and transfer procedures associated with the disputed shares.

Central to Azeb’s defence is her argument that the original Cosmo Trading shareholders had failed to finalise the share transfer and supply the requisite documentation, despite reaching an explicit agreement. Contrarily, Haileyesus has continuously maintained doubts about the deal’s validity, alleging coercion and irregularities in the registration process.

Documents reviewed during the trial revealed financial intricacies, including an allocation of 5.1 million Br sourced from multiple banks and individuals, earmarked specifically to settle Cosmo Trading’s tax and other financial obligations.

Azeb and JJ Property Management told the Court that in May 2019, Cosmo Trading shareholders had collectively agreed to transfer their entire shareholding. Nevertheless, when the actual process commenced, the original shareholders reversed course, prompting litigation that landed in the Federal High Court.

Prosecutor Kahesay, in his appeal, has stated what he argued are several critical errors in the prior ruling. Notably, he claims the lower court inadequately addressed the charges of betrayal of fiduciary duty “despite acknowledgement of such misconduct within the trial.” Kahesay contends the defendants, Azeb and Temesgen, failed to convincingly refute the Prosecution’s claims on their alleged “financial malfeasance and illicit income streams.”

The appeal document asserts that the defendants “never denied a previous loan agreement existed,” something the Prosecution argues should have reinforced the money laundering charges. According to the Federal Prosecutor, Azeb and Temesgen’s “deliberate misuse of their managerial positions to funnel company funds into their private corporate accounts constitutes clear financial wrongdoing.”

Further grievances outlined by Kahesay include procedural hindrances, particularly criticising the Ministry of Revenue for its delayed audit report submission. The Prosecutor has urged justices of the Federal Supreme Court to allow the introduction of this previously unavailable audit document as fresh evidence. He appealed to the Court to consider explanations and initial police interviews for absent witnesses who were abroad at the time of the prior verdict.

The appeal strongly argued against the dismissal of charges related to unlicensed financial operations, stating that the lower court had inadequately assessed evidence indicating substantial state revenue losses. The Prosecutor asserted the need for a retrial based on these oversights and procedural errors, advocating for a thorough re-examination of all evidence presented, including newly available audit

Gadaa Bank Ventures into Capital Market with New Securities Arm

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Gadaa Bank is set to launch a securities dealer share company with an initial investment of 80 million Br, receiving a trade license from the Ministry of Trade & Regional Integration (MTRI) on July 25, 2025 and is awaiting regulatory nod.

The new entity, 75pc owned by Gadaa Bank, will also bring together institutional shareholders including Tiger General Trading Plc (10pc), Oromia Insurance, Wada Engineering Plc, Godu General Trading S.C., and one individual investor (each with 3.75pc).

If launched it’ll only be the second firm to formally venture into the regulated securities dealing business, after Ethio-Fidelity Securities S.C., which secured its license in March 2025. Founded by investors with backgrounds in finance and technology, Ethio-Fidelity set a precedent as the first independently licensed securities dealer.

“We’re in the final stages of fulfilling all formalities with the regulator,” said Wolde Bulto, president of Gadaa Bank, who also chairs the new subsidiary’s board.

Gadaa Bank has formed a five-member board for its new subsidiary, selecting members from its new shareholder base. Although nominees for CEO and compliance officer have not yet been made public, the Bank is finalising the required filings with the ECMA, whose Director General, Hana Tehelku, confirmed the regulatory gatekeeping process remains rigorous but open.

Gadaa Bank’s push into investment banking signals that the regulatory and infrastructural groundwork for capital markets is beginning to take form. Its intent seems clear in capturing early-mover advantage as the Ethiopian Securities Exchange (ESX) gradually gains traction.

By establishing a legally distinct investment arm, Gadaa is set to comply with ECMA’s licensing requirements, which mandate banks to separate their capital market operations.

This comes at a time when Prime Minister Abiy Ahmed’s (PhD) Administration is undertaking unprecedented financial sector reforms, including the opening up of capital markets, central depository systems, and digital trading platforms.

However, while momentum is building, uncertainty still looms over the commercial viability of securities dealing. The capital market remains underdeveloped, with only a handful of companies listed and a still-nascent investor base.

The timing of the announcement coincides with Gadaa Bank’s release of encouraging financials. The Bank posted a profit of 247.2 million Br by the end of December 2024, reversing a net loss of 84.3 million Br in its first year, 2023.

In its most recent fiscal year, Gadaa Bank generated 1.6 billion Br in total income, up 106pc, while keeping cost growth at 75pc and its total assets exceeding 10 billion Br. Loans increased by 51pc to over three billion Birr, while deposits climbed to seven billion Birr. Incorporated in December 2022 by 28,000 shareholders, its paid-up capital also surged by half a billion Birr to 1.8 billion Br, indicating strong balance sheet growth, but far from even halving the five billion Birr capital threshold the Central Bank set for banks by July 2026.

The performance has likely emboldened the Bank’s leadership to diversify into higher-margin investment banking services, including brokerage, advisory, and securities trading. In June 2024, Gadaa Bank became the second financial institution to list on the ESX through an “introduction,” floating 1.2 million shares. Each share, valued at 1,000 Br, gave over 30,000 shareholders access to liquidity and the growing public market.

The President at the time described the move as one aimed at boosting liquidity and transparency while positioning the Bank as a credible capital mobiliser.

Despite the optimism, some experts urge restraint.

“If one bank sets up an investment bank, others rush to do the same,” said Dakito Alemu (PhD), a finance professor at Addis Abeba University, cautioning that the market cannot sustain 32 investment banks.

While he applauded Gadaa’s strategic foresight, he stated the need to identify underserved niches and urged financial institutions to look beyond mere replication.

According to Dakito, Kenya’s more developed capital market can serve as a learning model but noted that for Ethiopia, the viability of securities dealers depends on more companies listing and an expansion of the retail investor base.

“Without these, profitability will remain elusive,” he warned.

ECMA’s Hana Tehelku affirmed that applications will continue to be evaluated on a case-by-case basis.

“Registration isn’t automatic,” she said. “Applicants must meet all legal and regulatory requirements.”

The Authority requires clear governance structures, internal controls, and fit-and-proper senior executives before granting operational licenses. The tight regulatory scrutiny may slow the flood of entrants, but it is seen as necessary for sustainable market development.

Editor’s Note: This article has been amended from its original form on August 4, 2025. 

In our original story published on Volume 26, 1318 on August 03, 2025 under the headline “Gadaa Bank Ventures into Investment Banking with New Securities Arm”, we have erroneously reported that Gadaa Bank has launched a a securities dealer share company. This was factually misleading. The bank has receiving a trade license from the Ministry of Trade & Regional Integration (MoTRI) but hasn’t gotten approval from the Ethiopian Capital Market Authority (ECMA). The article and headline has been amended to reflect that distinction.

Our publication adheres to a policy of promptly correcting any errors discovered in reporting, editing or design.

FLOODS TEST ADDIS’ URBAN AMBITION

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The scenes have become all too familiar. Torrents of rain batter the city, transforming boulevards into brown rivers, swallowing vehicles, drowning commerce, and mocking the authorities’ infrastructure blueprints. While the skies may clear, the wreckage lingers in waterlogged warehouses, broken engines, and families left to mop up in frustration. On July 24, 2025, a flash flood drowned the OLA gas station and café across from St. Estifanos Church, on Menelik II Avenue. Its staff watched helplessly as muddy water consumed inventory and disabled the manager’s compact car. Repairs totalled 115,000 Br, none of which was covered by insurance. The story is far from unique.

Across Addis Abeba, motorists drive with the anxiety of men navigating minefields. In low-lying intersections and chronically unmaintained routes, such as those in Bulgaria or Summit areas, a single misjudged puddle can spell catastrophe. Electric vehicles, designed for clean roads, not the turbulent aquatic obstacle courses the city has become, fare worse. Despite a population exceeding five million (unconfirmed figure given a two-decade national census drought), the capital lacks resilient infrastructure to match its urban ambitions. Roads act as drains. Riverbanks double as dumping grounds. Concrete sprawls where floodplains once absorbed rainfall. And when Addis Abeba floods, as it often does, there are few places for the water to go.

Municipal authorities acknowledge the problem. They disclosed the establishment of a special task force and the construction of 64 floodwalls alongside the ambitious Riverside Project, which promises revitalised riverbanks, walkways, and green spaces. However, the city’s hydrological scars run deeper than these surface remedies. Behind the Ghion Hotel, the offices of the Riverside Project themselves fell to the floods, workers wading through sludge and ruined paperwork. On major arteries like the Ring Road and in rising neighbourhoods such as Kotebe and Betel, headlights flicker under knee-deep water. AACRA crews report 483Km of drainage works and pipelines expanded from 60cm to one metre. Still, its officials blame concrete invasions into flood buffers. Hydrologists, less diplomatic, call the entire drainage design infeasible, unfit for the capital’s uneven elevation and fragmented urban structure.

The data support their concern. The city receives nearly 70pc of its 1,400mlt annual rainfall in four months. Drought seasons bake the soil, making it water-repellent. When the rains come, runoff accelerates downhill. Rivers like the Kebena, Bantyeketu, and Aqaqi, once the city’s lifeblood, are now choked with refuse and sediment. In districts like Kolfe Qeranio, riverbeds have become dumping grounds. The Little Aqaqi is now an “open sewer.” The policy response has relied heavily on emergency repairs and task forces, yet enforcement of zoning laws, such as the 30mts setback for construction from rivers, remains patchy. Officials speak of progress. Engineers draft plans. Foreign partners, such as the Japanese, lend expertise. But as café owners and taxi drivers face ruined livelihoods and automotive bills, faith in top-down remedies wears thin.

294,000

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The number of hectares covered with saplings in a single day last Wednesday, July 29, as part of the government’s campaign to plant 700 million trees in 24 hours. If confirmed, it would represent more than 10pc of all reforested land achieved over five years between 2015/16 and 2020/21, illustrating the scale and speed of the current initiative, or the ambition of its reporting.

 

Reborn Through Betrayal

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Last week, my new house helper, only twenty-two years old, shared a story that left me breathless. I found her crumpled on the stairs, sobbing with the rawness of someone who had just buried a future she spent seven years building. Her tears spoke of deep love, immeasurable sacrifice, and a heartbreak rooted in one of society’s most painful truths. Women, especially those with little power, are too often expected to give everything and receive nothing in return.

She was just in Grade Ten when her parents decided she was ready to get married. The marriage was arranged, as is still common in many rural areas of the regional states. But she did not want the husband, the life, or the loss of her future. So, she chose to run.

With her high school sweetheart by her side, she left behind her family, her village, and a life planned by others. They fled to Addis Abeba, driven by hope and youthful defiance. But like many love stories born of rebellion, theirs soon collided with reality. They had no money, no support, no safety; just each other and a shared dream.

One of them had to work so the other could study. She was the one who chose to work. At sixteen, she became a housekeeper, earning just enough to cover his tuition, a bed in a shared room, and daily expenses. Every Birr she made went to him.

For seven years, she worked in silence, never once returning to her education. She gave up her future so that he could build his. She watched him pass exams and rise, all while standing still herself. Her love was not transactional; it was loyal, fierce, and rooted in belief.

They had a plan: once he graduated, they would marry. Then it would be her turn, he would work, and she would go back to school. She held onto that hope every day for seven years. It was her anchor, her light, and her purpose.

But the girl who once refused a forced marriage had unknowingly stepped into another kind of erasure. As a teenager, she worked herself into exhaustion for a man who quietly stopped seeing her as his equal. The moment she became his foundation, she ceased being his partner. He graduated with a degree and left her behind.

She believed this was their turning point, the moment their shared dream would finally bloom. Instead, he saw her only as “just a housekeeper.” He told her they were no longer “on the same level.” Just like that, he walked away from seven years of her life.

I didn’t know how to comfort her. What do you say to someone who lost everything not through carelessness, but through love? She believed in someone more than she believed in herself. And now that belief had shattered.

The very thing she gave up, her education, was used against her. The man she built a future around now saw her as less than. There are few betrayals crueller than those that follow sacrifice. It is not just heartbreak; it is humiliation layered on loss.

Now, she has nothing; her family disowned her; she has no savings, no diploma, and no fallback. All she has is the weight of waking up to a reality she never planned for. But this story is not just about personal betrayal. It is a mirror held up to a culture that teaches girls to disappear for the sake of others.

In communities like ours, girls are praised for how much they endure. Their worth is measured by their willingness to wait, to give, to sacrifice. And often, they are left alone in the aftermath. She is one of many who are taught to pour themselves out for someone else’s future.

But here is what struck me most: her instinct was not one for revenge, but for redemption.

“I want to go back to school,” she whispered, her eyes swollen from crying. That sentence lit something in me because that’s where healing begins, with a decision to reclaim.

She built that man’s future with her hands, and now, with those same hands, she is choosing to build her own. Her story does not end with betrayal. She is not just a girl left behind. She is a woman with the courage to start again.

This is not just her burden. It is ours, too. We need education programmes for girls who left school because of poverty, early marriage, or care work. We need scholarships for women who are trying to find their way back.

We need a culture that honours strength not in silence or suffering, but in achievement and self-worth. We must stop romanticising sacrifice when it’s not mutual. Love that demands erasure isn’t love. Its abandonment dressed as devotion.

My house helper’s story is not rare, but her strength is. She is choosing not to be defined by betrayal. And that kind of courage does not just rebuild a life. It rewrites the ending.