When urban drainage fails in places like Gofa condominium or any other place in the city, ingenuity kicks in. A makeshift bridge made of scrap metal and rocks offers brave pedestrians a way across a gushing sidewalk stream, no safety rails, no guarantees, just pure Ethiopian Do It Yourself (DIY) spirit. It’s either this or wet shoes, and clearly, fashion wins over function every time.
Gotera’s shoe shine corners are stepping up their game, trading the old curbside look for sleek wooden benches, potted plants, and rain-proof shade. What was once a simple service now feels like a curated city stop. One stand doubles as a moment of stillness: a religious leader gets a shine before continuing on his way to prayer, perhaps, or just the next chapter of the day. With every stroke of polish and splash of colour, these revamped nooks are turning footpaths into city vignettes.
Addis Abeba City Administration has launched 150 education projects valued at over 5.2 billion Br ahead of the 2026 academic year. Spread across the capital’s 11 districts, the rollout includes 14 newly built schools and upgrades to 64 existing facilities, adding 1,655 classrooms alongside ICT labs, libraries, and sports fields.
City officials say the investment is part of efforts to improve access and quality of education, with infrastructure designed to accommodate students with disabilities. Built to modern standards, the facilities are expected to ease overcrowding and enhance learning outcomes across public schools.
Santim Pay Financial Solution S.C. has begun assembling Point of Sale (POS) machines in Ethiopia, with its new facility assembling up to 300 units daily. The devices run on locally developed software and are priced below imported alternatives. Directed towards domestic commercial institutions, the move supports digital payment growth while reducing dependency on foreign suppliers. The company has also launched repair services to boost device durability and service availability. The fintech company officially launched its locally assembled Point of Sale POS machines at the Ethiopian Museum of Art and Science on July 19, 2025.
Santim Pay plans to expand distribution channels across regional towns. Officials say the initiative aligns with the National Digital Payments Strategy. The firm is also exploring partnerships with banks and microfinance institutions to scale adoption.
The London-listed KEFI Gold & Copper has initiated the community resettlement process for their Tulu Kapi gold project found in the West Welega Zone. Funded from KEFI’s own reserves ahead of broader project financing, underscoring the urgency to commence full development.
Resettlement is being implemented by the Ethiopian government under World Bank standards. The announcement was made during a mining forum held at the Ethiopian Embassy in London, which was co-hosted by the British Embassy in Addis Abeba and KEFI. During the forum, KEFI confirmed that it has met all three key preconditions: security, foreign exchange exemptions, and parliamentary ratifications. Gold production is targeted to begin in 2027. With new access roads, security camps, and financing deals nearing finalisation by August, the project is reported to be moving faster than expected.
In the sharp and high-altitude chill of Addis Abeba’s winter, daylight lingers over eucalyptus-lined streets long after classrooms have emptied. What was once a season of barefoot village adventures has evolved into something altogether different.
A burgeoning industry of structured winter camps, promising confidence, language fluency, and life skills, for fees that often eclipse a household’s monthly income.
A generation ago, the rhythm of school breaks was set by the smell of bus fumes and the sound of river water. Children crammed into minibuses bound for rural homesteads, where evenings closed around smoky fires and grandparents’ tales cost nothing but attention spans. These journeys were familial, unregulated, and free of charge.
Today, for Addis Abeba’s upper-middle and affluent families, school breaks are curated, urban, and costly, emblems of aspiration and, increasingly, of widening inequality.
On a recent Monday in the Bole neighbourhood, four-year-olds at Little Daycare lined up for a French lesson while older children chopped vegetables in a beginner’s cooking class. The daycare’s founder, Markeza Abebe, launched a two-month program last year that grew from 12 to 20 enrollees.
For 7,000 Br, children rotate through crafts, language classes, and drawstring-bag gymnastics.
“It’s more than simply keeping them busy,” said Markeza. “It’s about giving them exposure to a different environment, building friendships, and gaining confidence.”
If Little Daycare anchors the middle tier of this expanding ecosystem, the high-end shimmers in hotel lobbies. At Capital Hotel & Spa, a marble-floored compound off Haile G. Selassie Avenue, parents can choose from a menu of taekwondo, swimming, gymnastics, drumming, and keyboard.
“They can choose between one to four programs,” said Bezawit Elias, a receptionist overseeing the initiative. “We offer both monthly and bi-monthly options.”
A three-program package for one month costs 25,000 Br without snacks and 44,220 if they are included; a full two-month course can run up to 88,440 Br. As of early in the season, 80 children had already signed up. Even single-program options, like swimming, range between 10,000 Br and 50,000 Br.
Across the city, prices span a dizzying range, from 1,000 Br to upwards of 80,000 Br, mirroring an increasingly stratified market. Horseback riding in Bishoftu (Debre Zeit), coding boot camps in Bole, and leadership seminars in Cazancis all promise one thing to parents. Their child will be better prepared for the modern world.
Yet, the promise comes with a caveat.
“Some of these camps cost more than my monthly salary,” said Zemen Yohannes, a mother of three who spent weeks sifting through glossy brochures before settling on a 500 Br taekwondo class at her local wereda office. “It lacks the polish. But, it gives them structure, discipline, and a place to go.”
Discipline and self-control are key selling points at Ethiopian Hapkido Taekwondo, run by Getahun Tessema (Master). His 1,000 Br monthly program combines strength training with mindfulness exercises.
“We teach students how to focus, defend themselves, and protect others, while nurturing creativity,” he told Fortune.
Despite the industry’s momentum, and revenue, it remains largely unregulated. Many camps operate under generic business licenses, making it difficult to quantify their scope or reach.
“The exact number of summer camps is not known,” admitted Ashenafi Birhanu, communications director at the Addis Abeba Trade Bureau. “Some operate informally with capital as low as 200,000 Br.”
Atlaw Alemu (PhD), an economist teaching at the Addis Abeba University, urges caution until more data is available.
“We need numbers to see how many camps exist, at what price points, and who they serve,” he said. “Most cater to the upper class while the middle class slips downward. To assess their economic value, quantity matters.”
While data paints one picture, anecdote sketches another.
In the around CCD Tafo , children in bright yellow bibs weave through football drills and practice “eskista,” the traditional shoulder-shaking dance. The scene belongs to Koelim Summer Camp, run by the Gudina Tumsa Foundation (GTF), better known for its grassroots development work.
For 5,900 Br, including tea and cookies, children aged five to 15 learn pottery, weaving, canvas painting, seed planting, garment making, and first aid.
“These crafts are fading,” said Fedhessa Tadele, Business Manager At GTF. “But, they carry cultural and economic value. Cooking teaches food safety; first aid prepares them for emergencies. It’s about life skills, not just entertainment.”
Psychologists also emphasise the importance of emotional and cognitive development. According to Elias Gebru Aimero (PhD), a psychiatrist, psychotherapist, and CEO of Aremimo Training & Consultancy, effective camps should recognise psychological diversity shaped by age, temperament, and environment.
“Each child is unique,” he said. “Even a shy child can gain confidence by leading a traditional dance. That moment helps break the internal narrative of not feeling good enough.”
He categorises developmental needs into three stages. Children aged five to eight seek routine and bonding through crafts and scavenger hunts. Nine to 12-year-olds seek autonomy and peer recognition through drama and team games. And, teenagers need leadership roles and value-based dialogue in safe spaces.
“They’re vulnerable to risky behaviours,” he said. “Giving them real responsibility helps them feel capable.”
Cultural identity is crucial, especially for diaspora children visiting relatives. Elias advocates for eskista, teret (folklore telling), tilet painting, Ethiopian jazz, and even child-friendly coffee ceremonies.
“Cultural exposure promotes pride, curiosity, and global awareness,” he told Fortune.
Government officials echo this ethos. Belete Dagne, director of Child Rights Advocacy & Wellbeing at the Ministry of Women & Social Affairs, praised public initiatives that combine tutoring with community service, including but not limited to elderly care, tree planting, and environmental cleanups. These are exercises often run through the wereda offices.
There are currently 106 orphanages in operation, three of which are government-run, and the rest are private.
“The infrastructure for child-focused programming is more expansive than the commercial boom implies,” said Belete.
Still, whether these efforts cohere into a unified ecosystem is debatable. Camps import foreign trainers, promise “exposure” and “talent discovery tracks,” and operate across a regulatory grey zone. For some parents, it is about prestige; for others, survival. Some children swim laps in heated pools; others share a skipping rope on cracked pavement.
What is clear is motion. The industry thrives on parental anxiety about employment prospects, global competitiveness, and social status. Its ardent advocates repackage it into lesson plans and fee structures.
“Parents want to invest in their children,” said Bezawit at Capital Hotel, nodding toward a row of tiny taekwondo uniforms drying by the pool. “They believe it pays off.”
For families like Zemen’s, the calculation is more immediate on how to balance aspiration with affordability. Her 15-year-old now trains three evenings a week.
“He’s learning discipline and meeting friends,” she said, watching him practise a roundhouse kick. “And we can still pay rent.”
Addis Abeba’s new winter ritual is here to stay, whether for growth, for profit, or simply for something to do while school is out.
Federal lawmakers have finally passed the long-anticipated startup law, setting the stage for what many in the sector hope is a transformative shift in the country’s technology and innovation ecosystem.
After five years of protracted deliberation and bureaucratic sparring, the new legislation aspires to define, nurture, and formalise the nascent startup ecosystem, which has long been constrained by red tape, undefined mandates, and institutional inertia.
The law defines what constitutes a startup, including a company that is less than five years old, grounded in technology or innovation, and has market-disruptive potential. Beyond this symbolic recognition, it promises substantive support. Corporate tax holidays for up to five years, simplified certification processes, and, perhaps most importantly, a national digital portal to consolidate regulatory interactions.
These changes are intended to reduce the historically onerous burden of dealing with banks, tax offices, and government agencies individually, obstacles that have throttled the growth of early-stage firms.
Mulugeta Wube, a senior official at the Ministry of Innovation & Technology (MInT), describes the moment as long overdue.
“Everyone is thrilled,” said Mulugeta.
Now, his department is racing to finalise the operational specifics.
The digital portal, central to the law’s implementation, is expected to go live within months, allowing startups to register, categorise themselves by growth stage, and claim benefits.
This classification mechanism is designed to allow targeted interventions. In theory, early-stage startups will not compete with growth-stage ventures for the same pool of resources. In practice, the challenge lies in maintaining an agile and responsive system, a far cry from the sluggish bureaucracies many founders have come to expect.
Reactions from the domestic tech entrepreneurial community are cautiously optimistic.
Henok Dibekulu, founder of the used-goods e-commerce platform, Yebeteka, welcomes the legislation’s protective mechanisms.
“Every success story comes from trying, and this will give many the chance to try,” he told Fortune. “By shielding founders from immediate financial burdens, it may embolden more risk-taking in a culture traditionally wary of failure.”
However, he remains sceptical about whether these benefits will materialise promptly, especially given the sector’s long history of frustration.
“We want to be treated equally,” Henok said, pointing to the need for a level playing field with larger, more established businesses.
Kirubel Engidawork is a key figure at the Ethiopian Youth Entrepreneurs Association (EYEA) and a driving force behind ventures such as Betablockers and Lije Care. Betablocker Plc, launched in 2020, currently serves around 3,000 customers, while Lije Care, a tech-driven nutrition platform, began operations in August 2024.
“The sooner the better,” Kirubel said, warning that delays in legal implementation could threaten the survival of emerging businesses.
However, he shares similar reservations, cautioning that five years can pass in a blink, particularly if much of it is spent navigating the very bureaucracy the law purports to eliminate. His call for clear institutional mandates and streamlined access echoes a broader concern. Time lost to red tape is opportunity lost forever.
“If the incentive time limit ends navigating red tape, the incentives will be pointless,” he said.
Samiya Abdulkadir, president of EYEA, offers a structural critique.
“There are many departments working in silos,” she said. “This leads to overlapping mandates and inefficient delivery.”
EYEA, a registered civil society organisation, has already built a working registration system with Ethio telecom, generating unique IDs for startups and tracking their progress. The Association currently supports over 15,000 young entrepreneurs through training, networking, and advocacy, and Samiya sees that as only the beginning. She points to countries like India and Tunisia, where central startup authorities have successfully harmonised support. Ethiopia, by contrast, is attempting to layer a new digital framework atop siloed departments, with no guarantee of coherence or interoperability.
“We’re delighted the law has passed,” she told Fortune. “We’ve spent over five years lobbying for it.”
The law arrives at a time of paradoxical momentum. A recent ecosystem report identified 562 active startups in Ethiopia, with 489 of these having received some form of funding. Yet, the median investment remains a modest 250,000 dollars.
The outlier, a 42 million dollar raise, offers little consolation to the overwhelming majority still stuck in pre-seed or seed funding cycles. Only three firms have crossed the 10 million dollars valuation mark, uncovering the fragility of scale-up pathways.
The government’s proposed “Fund of Funds” may provide some relief. This capital-aggregation model aims to channel resources into venture capital firms and accelerators, which, in turn, support local startups. But funding alone will not solve the ecosystem’s woes if underlying institutional inefficiencies persist.
Behailu Tamiru, an economist and associate vice president at St. Mary University, frames the issue within a broader macroeconomic strategy. Ethiopia’s reliance on imported materials and foreign expertise drains public coffers and stifles domestic capacity.
“With local innovation, we could stop importing experts and materials and start exporting solutions,” he said.
Promoting indigenous innovation could reduce these dependencies and potentially lead to the creation of exportable, tech-driven solutions. However, he warns that without administrative discipline, the law risks becoming another well-intentioned but poorly implemented policy.
Despite the capital constraints, the startup sector has proven surprisingly resilient, generating more than 30,000 jobs in 2024, up from 120 six years ago. Yet, the dominance of micro- and small-scale enterprises, valued at under 10 million dollars, reveals a fundamental structural imbalance. A large base of struggling ventures with very few making it past the survival stage.
Initiatives like Ermias Fentaw’s Next Change Makers (NCM) & Creative Hub are attempting to bridge this gap through mentorship, workspace support, and training.
Ermias co-founded And-hulet Creatives, spending the past four years building support systems for young innovators. He believes the new legislation should now prove its worth by delivering real and accessible financial support. Still, Ermias says that all roads ultimately lead to capital, or the lack thereof.
“The question is always financial,” he said. “Lack of capital is the single biggest barrier for our trainees and entrepreneurs.”
The Creative Hub, which has been operational for approximately four years, offers programs ranging from six to 12 months in duration, designed to equip future founders with practical business skills. Ermias, himself an experienced businessman in e-commerce and digital media, uses the NCM platform to mentor Ethiopia’s next generation of change-makers.
“We’ve been waiting for a long time for meaningful structural support,” Ermias said. “It may be late, but it’s a good start overall.”
From experienced founders like Kirubel and Ermias to institutional advocates like Samiya, the consensus appears to be clear that the new law is a vital milestone. However, it is now expected to clear its final limitation on delivery on the ground.
“We’re training change makers,” Ermias told Fortune. “With time and the right support, we can grow a vibrant entrepreneurial culture. But we can’t do it alone.”
Addis Abeba’s Land Development & Management Bureau recently reported that it prepared 1,450 hectares of land in the last fiscal year, significantly exceeding its original plan of 627.08 hectares. The designated plots are intended for projects that are prioritised at the national level, as well as for social services. Notably, 349.4 hectares have been allocated for individuals relocated due to development. The Bureau transferred 749.4 hectares of land, which is above the target of 550 hectares. Officials have stated that the processes of land preparation and allocation are ongoing and dynamic. This has led to reforms directed at improving service delivery and enhancing digital capabilities. As performance reviews continue, the Bureau emphasised the importance of modernising outdated manual processes.
An aggressive push by federal authorities to digitise fuel sales has ignited a market-wide reckoning, exposing deep-rooted illicit trade and the limits of digital transformation in a country still struggling with infrastructure and security deficits.
This month, a wave of enforcement swept across fuel stations and distribution networks after the Ethiopian Petroleum & Energy Authority (EPEA) revealed alarmingly low adoption rates of mandated electronic sales platforms. A terse memo from Dibara Fufa, the Authority’s deputy director, instructed regional trade bureaus to escalate action against operators resisting the transition.
The numbers provided rationale for his actions. Of the 71,360Ltrs of regular gasoline distributed in May by a distributor, only roughly 10pc were sold digitally. The compliance rate for diesel was even lower at nine percent. Of the total 10.88 million litres of petrol (MGR) and 36.88 million litres of diesel (ADD) imported by 38 distributors in May, only 1.42 million litres of MGR and 5.37 million litres of ADD were sold through the digital system.
“If they don’t sell it digitally, we believe they are diverting it to the black market,” Dibara told Fortune, reinforcing federal suspicions of systematic leakage.
Indeed, the figures point to a major credibility crisis in the fuel distribution chain. Of the 531,550Ltrs of automotive diesel distributed in May, only 47,351Ltrs went through the approved digital channels from one company.
Authorities have already flagged 354 dealers, seven of whom were deemed new offenders. More damning is that nearly one-third of fuel stations investigated to date had less than half digital transactions recorded since the rollout began in early 2023.
Regulators have begun deploying the full force of new enforcement provisions. Fines can reach 350,000 Br, and prison sentences can be up to two years. Six distributors have already been suspended for illicitly trading 2.8 million litres in two months, and another seven face final warnings.
Thirty-six additional companies now face a two-month supply embargo, pending the outcome of performance reviews. Continued underperformance will trigger stiffer penalties under the Petroleum Product Marketing Law, which includes jail terms of up to five years and fines of half a million Birr.
The assertive campaign follows a troubling legacy of fuel smuggling. A 2018 study by Jimma University found that only 18pc of fuel smuggling offences between 2015 and 2017 led to convictions, with the annual cost of contraband fuel exceeding 45 million Br. Porous border towns, such as Bedele, Dembi Dollo, and Mizan Teferi, have long served as conduits for smuggling, a trend exacerbated by regional price disparities and weak enforcement mechanisms.
The government’s technological arsenal includes platforms like Telebirr, CBE Birr, M-Pesa, and others offered by private banks, all integrated into a national aggregator managed by the Ministry of Transport & Logistics, with back-end support from EagleLion Systems. In theory, the real-time monitoring should enable a swift detection of anomalies. In practice, results remain uneven.
By the third quarter of the current fiscal year, 176 billion Br, roughly 41pc of total fuel sales, had been routed through digital channels. But these national aggregates obscure regional disparities.
Fentaw Fetene, deputy bureau head in the Amhara Regional State, confirmed that 150 stations were warned for lagging behind the national average.
“This time is different,” Fentaw said. “We’re holding both distributors and retailers accountable.”
However, station operators argue that systemic shortcomings limit their ability to comply with these regulations. Many are located hundreds of kilometres from Addis Abeba in zones with sporadic internet access and occasional conflict flare-ups.
“Peace and infrastructure issues may occur in certain areas, but not all the time,” said Fentaw. “We’ll weigh these issues while still pursuing penalties.”
The rollout of fines has come as a surprise to stakeholders.
“We only learned about the penalties through public announcements,” lamented Ephrem Tesfaye, board member of the Ethiopian Petroleum Dealers Association.
With digital compliance sometimes falling below two percent, he warned that the burden of proof has now shifted to station operators to demonstrate that they are not complicit in parallel-market sales.
Digital payments expert Nebiyu Taye, founder of Click Digital Solutions Plc, believes technology remains the best line of defence, but only if it is comprehensive. His prescription includes mandatory biometric verification (Fayda ID), geo-fencing of deliveries, GPS-equipped tankers, and point-of-sale systems at every pump.
“Look at Kenya and India,” he said. “They use QR-coded receipts and real-time audits. That’s how you close the loopholes.”
Ahmed Tusa, a former trade minister who once served as the director general of EPEA and a retired policy advisor in the same ministry, echoed the need for balance. He sees fuel diversion as both a cross-border and domestic issue. While parallel-market exports are driven by price arbitrage, local shortages fuel profiteering in the informal retail sector.
“Regulations are not always the answer,” Ahmed cautioned.
He advocated for a dual strategy, including expanding supply while tightening enforcement, as was done during the cement market crisis.
The crackdown marks a major departure from the governance of the analogue era. According to experts, whether the transformation endures will depend less on punitive measures and more on systemic upgrades, reliable connectivity, user-friendly platforms, secure data systems, and stakeholder buy-in.
During a soft and steady rain that soaked the narrow lanes around Ghana Street, near St. Uriel Church on the edge of the Uriel School campus, pedestrians shuffled along under umbrellas, hoods, or bare heads.
A woman in particular seemed impervious to the drizzle. Yirgedu Bereded strode down the slick road, clutching two heavy bags, her umbrella dangling uselessly from an arm. At 41, her slouched shoulders and drawn face betrayed the fatigue of years spent wrestling with rising costs and shrinking paychecks.
“Living is hard now,” she told Fortune quietly as she paused beneath a dripping canopy. “Now the money is nothing. I can’t do anything even when I have it.”
Twenty-five years ago, her monthly salary totalled a mere 280Br. Today, working as a finance manager for Uriel School, it has reached 8,424Br. Yet, nearly a quarter of this is lost to income tax. Two decades ago, her husband, a doctor at Tikur Anbessa Teaching Hospital, died, leaving behind a modest pension that recently rose by 500Br. But, it barely makes a dent in her bills.
Years before he passed, he urged her to secure a home. She registered for a condominium in Yeka Abado, and for the past 12 years, mortgage and interest payments have gnawed at her paycheck. Each month, she sends 1,700 Br to her lenders. Her 25-year-old daughter now chips in when she can, making the household a two-resident operation living on three incomes.
Even that fails to close the gap between earnings and essentials. Yirgedu sounded nostalgic about the era when she used to buy a kilo of teff for 70 cents. At the current price, it hits 150 Br.
Remembering those days, she smiled softly, more from resignation than mirth, then realised yet again she had forgotten to open her umbrella. A small sign, perhaps, of stress-induced forgetfulness.
Across the city, similar struggles play out daily.
Melese Legesse, who a decade ago helped shape Ethiopia’s tax structure, now watches his family scrape by on a net income of 5,645 Br. His gross pay, including allowances, reached 10,000 Br, but half of that is spent on rent.
Last week, Parliament ratified an amendment to the income tax code that raises the tax-free threshold by 300pc to 2,000 Br. Federal officials lauded the move as progressive, but accountants warn that most taxpayers will see gains that barely register against soaring living costs, an average of just 500Br, with a maximum boost of 1,050Br.
For workers whose wages have lagged behind inflation, such increases amount to little more than a symbolic gesture.
“Even with the new tax rates, the money does nothing in my hands,” Melese told Fortune. “Better to put it into infrastructure.”
It is a profound voice of desperation that has prompted Kassahun Folo, president of the Confederation of Ethiopian Trade Unions (CETU), to use parliamentary hearings to press for deeper relief.
“According to the international poverty scale, 2.15dollars a day equals 64.5dollars a month,” he said.
He urged federal lawmakers to match the untaxable threshold to 8,324 Br and cap the minimum rate at 10pc instead of the prevailing 15pc.
“The public servant needs subsidies as is, not taxation,” he said. “This amendment doesn’t even reflect today’s cost of living, let alone next year’s.”
At the Ministry of Finance, officials say that raising the threshold to 2,000 Br would slash revenue by 38.4 billion Br, and setting it at 3,000 Br would result in an annual revenue loss of over 70 billion Br to the federal coffers, roughly 0.21pc of GDP.
However, they acknowledge that the reform comes with tradeoffs. They claim to have discovered that 67pc of registered taxpayers report recurrent annual losses, even after adjustments.
Corporations also pressed their case in the public consultation. They argue that suspicions of tax evasion based on early losses should not apply to firms with transparent financial records and long-term commitments.
Safaricom Ethiopia Plc, which has invested 350 billion Br under a 15-year license, has joined the calls to exempt telecom operators from the alternative 2.5pc turnover tax.
“We’re mandated to build infrastructure even if there might not be profit,” said company representative Dawit Fiseha.
Analysts forecast that Safaricom’s losses in earnings before interest, taxes, depreciation, and amortisation, known in corporate lingo as EBITDA, will total four billion Birr in 2024, with a break-even point not expected before 2026 and taxable profits unlikely until 2027.
Nonetheless, the company continues to invest heavily in expansion, including 850 million dollars for its operating license, 600 million for network rollout, and an additional 150 million dollars to secure an MPESA permit in 2023. By mid-2025, it had more than 6.1 million GSM subscribers, 8.3 million M-PESA users, and processed two million transactions worth 247 million dollars.
Safaricom Ethiopia operates over 3,000 network sites and intends to reach 85pc national coverage by 2026.
Traditional conglomerates, such as East African Holdings, also voiced concerns.
Haile Bayissa, a senior executive at the Group, criticised the new levy on gross turnover as unconstitutional, since it taxes unearned revenues.
Incorporated in 1891 by Buzuayehu Tadelle as a significant shareholder, East African Holding spans from fast-moving consumer goods, agroprocessing, cement, real estate, and energy.
According to Haile, East African Holdings, with consolidated financial reports across diverse sectors, struggles to have its unified reports recognised for tax purposes. One subsidiary, an agricultural operation, earns seasonal income, making quarterly payments especially challenging.
The reform package goes further, doubling the tax on savings to 10pc. According to the National Bank of Ethiopia (NBE), 55pc of deposits rest are in savings accounts, with the remainder in demand and time deposits. The minimum savings rate remains at seven percent.
“This move undermines financial inclusion and liquidity,” cautioned Demessew Kassa, secretary general of the Ethiopian Bankers Association (EBA), forecasting that households could retreat from formal banking.
Small businesses also stand to lose.
Yohannes Woldegabriel of the Ethiopian Chamber of Commerce warned that a tax on gross turnover threatens low-margin operators with closure, citing India’s reversal of similar rules after widespread failures. He criticised a novel requirement that foreign firms begin tax payments after only 91 days, well short of the six-month grace period common elsewhere. He questioned whether simplified compliance could justify such risks.
Tax experts offered a more mixed view.
Biruk Nigussie, a former advisor at the Ministry of Revenues, noted that simplified regimes can ease reporting for microenterprises, yet the amendment creates new taxpayer categories. Digital content creators, including podcasters, social media influencers, ad operators, and affiliate marketers, must register once their earnings cross a yet-to-be-defined threshold. Cross-border revenues and offshore asset sales with more than 20pc Ethiopian source value will also attract domestic tax levies.
The definition of a permanent establishment has been expanded to include operations lasting more than 91 days, construction projects, and consulting assignments. Even without a formal establishment, cross-border service providers generating Ethiopian-sourced income will face tax liability. The code further stipulates that communication revenues via satellite, cable or internet be treated as local income, and compels foreign missions and international organisations to report staff data.
Business income tax for mining and petroleum ventures is set at 30pc, while non-resident entities face 15pc on gross revenue and five per cent to 15pc on royalties, dividends, and service fees.
Federal officials believe these sweeping provisions target to broaden the tax base, standardise enforcement, and modernise practices across sectors. Yet, they arrive amid a broader push to fund a near two trillion Birr budget.
In advanced economies, income taxes account for 30pc to 40pc of total revenues; India leans more heavily on corporate levies. According to Cepheus Research & Analytics, a local equity firm run by Berhane Asfaw, income tax currently accounts for about 28pc of Ethiopia’s receipts, yet the country’s tax-to-GDP ratio remains among the world’s lowest at roughly eight percent, well below the sub-Saharan African average of 15pc and the IMF’s benchmark for sustainable development.
The federal government hopes to lift that ratio by one percentage point annually, targeting double digits within three years, disclosed Eyob Tekalegn (PhD), state minister for Finance, the face of the administration who defended the revised income tax bill before the federal legislative chamber.
But experts caution that rate changes alone cannot fix systemic complexity.
“The tax code needs simplification and clarity,” said Awoke Asfaw of the Ethiopian Professional Association of Accountants &Auditors. “Without a better understanding, compliance will remain uneven and burdens will persist.”
Eyasu Girma, a professional accountant, illustrated the disparities with a hypothetical case. An employee earning a monthly 14,000 Br would pay 34,000 Br in annual tax under the new law, while a businessperson with identical income would owe the state only 5,640 Br.
“It’s a systematic way to push people out of formal employment,” he said, warning that the income tax reform might deter investment and heighten informality.
Even opposition legislators, though critical of the revised law, lodged procedural grievances. Desalegn Chanie (PhD) of the National Movement of Amhara (NaMA) described the legislation as “revolutionary” but noted that it lacked sufficient stakeholder consultation. The State Minister countered that the amendment took two years to craft and would bring salaries into line with global norms of progressive brackets and alternative regimes.
“We needed to balance the economy,” he said. “Quarterly payments should ease cash flow for businesses.”
Regional governments fear similar imbalances. In Sidama Regional State, salary income generated over two billion Birr last year, 15pc of the region’s total revenue.
The Revenue Bureau collected 13.7 billion Br, meeting 90pc of its goal but covering only 63pc of expenditures. Municipal collections lagged at 69pc of target.
“These adjustments could deepen our deficits,” warned MulatYusufu, deputy head of the Revenue Bureau under the regional state, noting that fraudulent loss claims already undermined enforcement.
As the amendment takes effect, workers like Yirgedu and analysts in every sector question whether the new rules address real-world challenges. For many, the figures on paper mean little when the cost of living climbs and wages lag.
From rain-slicked streets to the marble floors of Parliament, one idea stood out. While everyone shares the burden, it is not shared equally.
People like Melese feel that the top one percent are not paying what they owe.
“That’s the real issue,” he told Fortune.
Awash Bank has partnered with M-PESA Ethiopia to introduce “Errif be M-PESA,” which means “rest with M-PESA” in Amharic. This digital overdraft service allows users to complete transactions even when their wallet balances are insufficient. Launched through a strategic agreement, this initiative is directed towards expanding access to digital savings and credit. Awash Bank’s CEO, Tsehay Shiferaw, emphasised the bank’s commitment to investing in technology-driven financial services. Meanwhile, M-PESA’s CEO, Elsa Muzzolini, remarked the partnership’s role in promoting financial inclusion through data-driven lending. By combining Awash Bank’s banking infrastructure with M-PESA’s mobile platform, this collaboration seeks to enhance access to financial tools for underserved communities.
A new lawsuit filed by Hailu Shawel’s, once a towering figure in both engineering and opposition politics, third son, has intensified a years-long inheritance dispute. Allegations of asset mismanagement, blurred corporate ownership, and intra-family feud already mark the case.
In January of this year, Nadew filed a civil suit at the Lideta Division of the Federal First Instance Court, seeking the reassignment of disputed shares, compensation for undercapitalised equity, and a comprehensive forensic audit of the family’s holdings. The Presiding Judge, Eleni Zewdu, ruled on July 2, 2025, to consolidate the petition with an earlier lawsuit brought in December 2024 by his twin brother, Samson, which is now under review at the Nifas Silk Lafto District Court.
At the crux of the brothers’ grievances is the ownership structure and financial stewardship of Samson Sports Plc, the corporate entity that controls the 10,000Sqm Laphto Mall. Constructed in 1997 near the affluent Besrate Gabriel area, on South Africa St., the mall has long served as a family flagship property.
However, behind its consumer-facing success lies an unresolved struggle with the combined value of contested properties and shares reportedly running into the hundreds of millions of Birr.
Both Samson and Nadew allege that personal and corporate finances have become entangled, distorting dividend rights and diminishing their inheritance.
In his filing, Nadew asserts a five percent equity claim in Samson Sports Plc and seeks compensation amounting to 27.7 million Br, citing undercapitalisation and unallocated earnings. His legal brief extends further, requesting recognition of additional shares and financial interests across a web of family-run ventures, including Shawel Consult International Plc, Rekik Food Plc, and Agrimecs Share Company.
Like his twin, he claims to have faced systematic marginalisation and financial opacity since the family initiated the inheritance registration process in 2017.
The late Hailu Shawel, who passed away in 2016 at the age of 80, led the Coalition for Unity & Democracy (CUD) during Ethiopia’s fiercely contested national elections in 2005 and was chairman of the All Ethiopian Unity Party (AEUP) until 2013.
Before his political ascendancy, he helmed key public institutions, including the State Farms Development Authority, under the military government, and founded Shawel Consult, a firm now managed by his eldest son, Shawel Hailu (PhD), a U.S.-educated economist and head of multiple family-linked companies.
Court records show the inheritance affidavit was initially filed in 2017 and later amended to incorporate the interests of another sibling, Pele Hailu, who died in 2018.
However, Samson argues that the redistribution process failed to reflect the real economic stakes involved. His initial complaint challenges the transfer of 2,743 shares in Samson Sports Plc to their elder brother, Shawel, which he contends was a temporary strategic move amid political volatility.
According to Samson, the shares, meant to shield the family’s assets, should have been reallocated once the risk had passed.
He has demanded recognition of 274 shares in his name and that of the late Pele, alongside a buyout provision to exit the firm, citing irreconcilable differences. The stakes extend to two high-value plots in Lafto, where the brothers each seek a 10pc share. Additional claims include nearly 865,000 Br each from dormant bank accounts held under their father’s name, 792 shares in the Bank of Abyssinia (BoA), 44 shares in Shawel Consult, and 53 shares in Agrimecs.
Samson’s affidavit implicates multiple family members, including their mother, Almaz Zewde, and siblings, Shawel, Anteneh, and Yamrot, in allegedly rebuffing settlement overtures and misappropriating company revenues. He also alleges that no dividend has been paid to the heirs since 2017, while he claims “rent and company funds have been siphoned off for personal use.”
He has sought an emergency release of 10 million Br to fund urgent medical treatment in Bangkok, Thailand, describing the need as “non-negotiable” and time-sensitive.
Nadew’s later claim reaffirms and expands on Samson’s accusations, requesting a comprehensive audit of the family’s commercial empire stretching back nearly a decade. Both brothers are represented by Yehualashet Tamiru, a partner at Ethio Alliance Advocates, who has summoned three witnesses: Bethlehem Ashenafi, Samson Hailu, and Firehiwot Mekonnen, to make their case.
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