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Author: Web Master

Fintech’s Blind Spot in Unlocking the Potential for Universal Inclusion

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The world has made remarkable progress in advancing financial inclusion in recent years. In the decade beginning in 2011, the share of adults with access to financial services rose a whopping 50pc, to more than three-quarters. But, we still have a long way to go in creating a truly inclusive financial system. Beyond expanding access to financial products and services, we should ensure that these products and services work for all people, including the 1.2 billion people worldwide with disabilities.

The first generation of financial technology disrupted traditional banking by facilitating access for the underbanked (think mobile money and micro-loans). The next wave of innovation should go further, embracing “universal inclusion” as a basic design principle. Universal inclusion captures the idea that everyone deserves access to financial tools that meet their needs and improve their well-being.

We already have examples of what this might look like.

Consider tap-to-phone technology, which enables merchants to accept payments using their smartphones – no payment terminal needed. This functionality has obvious benefits for all buyers and sellers, from convenience to safety. But, it also enables blind or visually impaired individuals, who might struggle to count cash, to participate more fully in the digital economy. People with conditions affecting their mobility – such as arthritis, multiple sclerosis, Parkinson’s disease, and cerebral palsy – might also rely on tap-to-phone technology.

The same goes for voice-activated payments. They are convenient for all, but crucial for individuals with visual impairments, limited mobility, or literacy challenges. This is universally inclusive design at its best – so practical that everyone, disabled or not, uses it. The widespread adoption of such technologies makes them even easier for those with disabilities to use. Since 62pc of disabilities are invisible, asking for accommodations can be very difficult. But nobody will bat an eye about an “accessible” tool if they already use it.

Despite some successes, however, the prevailing approach to financial product development does not put nearly enough emphasis on inclusivity. This represents not only a moral failure, but also a missed economic opportunity. People with disabilities, together with their friends and family, represent 13 trillion dollars in disposable income. As lifespans increase, this group’s numbers – and spending power – are set to rise.

Beyond the direct returns of tapping this large and underserved market, financial services companies pursuing universal inclusion would become more attractive to other customers, especially younger generations. A 2018 study showed that 91pc of Millennials (born between 1980 and 1994) would replace a product they normally buy with an alternative from a “purpose-driven” company. Gen Z (born between the mid-1990s and the early-2010s) is also strongly inclined toward brands emphasising social values.

Financial institutions should embrace a new innovation framework built on three pillars to make the most of universal inclusion.

The first is a universally inclusive design approach, in which accessibility considerations shape solutions from the start. This would represent a major shift from today’s compliance-based approach, in which adjustments are often made after the fact to meet minimum accessibility standards. Its success would depend on ensuring that people with disabilities participate in every phase of the design process.

The second pillar of a new fintech framework is data. Measuring our progress on overall financial inclusion is important, but so is collecting detailed data that differentiates among groups or segments. Such data should go beyond access to cover the quality of services and changes in financial well-being that result from the industry’s products.

Lastly, clear accountability and reporting standards are essential. Regulatory frameworks should include incentives for financial services institutions to disclose their progress on universal-inclusion metrics, making these results as fundamental to their reporting as traditional financial indicators.

The benefits of universal inclusion extend beyond profit. The economy becomes more resilient and dynamic when all people can participate in it fully. And, efforts to meet the needs of one underserved group can lead to innovations that benefit all, a phenomenon known as the “curb-cut effect,” a reference to the sidewalk ramps that were designed for wheelchair users, but improved the lives of many others, from parents with strollers to delivery workers.

Rather than viewing accessibility as a barrier to overcome, we should recognise its potential as a catalyst for innovation and growth. Universal inclusion in financial services is not only about doing good; it’s about doing good business.

The Urgency of Global Debt Reform

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High debt levels are once again setting off alarm bells around the world. In developed countries, attention is focused on the rapid increase in public debt, while developing economies are struggling to service their external obligations amid slowing growth and stagnating exports.

Despite their current challenges, most analysts believe that developed economies will avoid a full-blown crisis, owing to their ability to issue debt in their currencies and implement targeted fiscal and monetary measures. In the United States, for example, the fiscal deficit surpassed six percent of GDP this year and is projected to rise to eight percent or more in 2025. Even so, declining interest rates suggest that policymakers are well-positioned to address the issue, which received little attention during the 2024 election cycle.

By contrast, the outlook for emerging and developing economies appears increasingly bleak. In 2023, developing countries spent 1.2pc of their gross national income on interest payments, while debt service amounted to nearly six percent of export earnings in countries eligible for International Development Association (IDA) aid. The World Bank’s latest Debt Report warns that low-income countries face a “metastasizing solvency crisis.”

Several developing countries, including Zambia and Sri Lanka, have already defaulted on their external obligations, triggering a slow and painful process of debt restructuring and sweeping economic reforms. Many others are on the edge of a crisis – in Mozambique, for example, interest payments amounted to 38pc of export earnings in 2023. According to the World Bank, 52pc of low-income countries are at or near debt distress.

Since the end of World War II, the world has witnessed numerous financial crises stemming from the unique nature of sovereign borrowing. On one hand, government debt can reflect the pursuit of potentially high-return investments that cannot be financed by domestic savings alone. This was the case in the early 1960s, when South Korea borrowed up to 10pc of its GDP annually to enable productive investment. Those investments paid off handsomely, enabling the country to service its debt with ease and maintain stability despite sustained borrowing.

But, borrowing can also finance unproductive expenditures, such as excessive public employment or private consumption, which generate little to no return. Consequently, debt service grows without any corresponding increase in governments’ ability to sustain payments. This is rarely an issue for countries that invest in high-return projects. But when resources are misallocated, and debt-service costs mount without the means to cover them, a crisis becomes inevitable.

In such cases, international financial institutions (IFIs) – especially the International Monetary Fund – play a critical role in helping countries restore creditworthiness by providing financing and recommending reforms. The IMF specialises in assessing indebted countries’ macroeconomic outlook, pinpointing necessary economic reforms, and steering them back toward financial stability and sustainable growth.

IMF-recommended reforms typically involve expenditure cuts – limiting future pension increases, reducing civil-service salaries, and scaling back certain investments – alongside efforts to increase tax revenue. They often also include structural adjustments, such as modifying the exchange-rate regime, removing domestic price controls, and eliminating regulations that impede economic growth. Identifying the most urgent reforms is essential, as these measures often determine a country’s ability to promote growth and improve living standards.

Economic policy reforms become particularly important when a government lacks the resources to meet future debt-servicing payments or fund the investments needed to boost income and growth. In the absence of such reforms, heavily indebted countries risk falling back into patterns of excessive spending, undermining their growth prospects and resulting in recurring crises.

Regrettably, many well-meaning leaders and policymakers overlook the necessity of combining debt restructuring and new financing with economic reforms. Sympathy for the impoverished populations of indebted countries and acknowledgement of their overwhelming financial burdens often lead to calls for the IMF and World Bank to provide financial support without demanding structural adjustments. When international institutions succumb to such pressures, economic gains tend to be short-lived: growth stagnates, and debt-servicing difficulties return.

These challenges are compounded by the emergence of new major creditors, especially China, and the growing role of private-sector actors in sovereign lending. In recent years, China has overtaken the World Bank as the largest lender to many low-income countries. As a result, implementing economic reforms now requires the support of China and other creditors.

The protracted negotiations between creditors whenever sovereign debt must be restructured underscores the urgent need for reforms not only within heavily indebted countries but also in the international community’s approach to resolving these countries’ debt problems. Sri Lanka and Zambia were economically paralysed for years while creditors, including IFIs, struggled to reach restructuring agreements.

Traditional sovereign creditors, including the US and the European Union, should persuade emerging major lenders of the need for a faster, more effective restructuring mechanism. Without such a framework, the world’s poorest countries will remain trapped in a never-ending cycle of debt distress.

Pharma Supplier to Build 100 Million Dollar Automated Warehouse

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The Ethiopian Pharmaceutical Supply Service (EPSS) plans to construct a 100 million dollars mega warehouse in a bid to modernise and centralise its pharmaceutical storage and distribution. The project was announced during a parliamentary audit report meeting last week.

Solomon Nigussie, deputy director general of EPSS, revealed that UNICEF designed the facility, while the Ministry of Finance (MoF) will manage funding with international backing. The 50,000sqm warehouse is set to be a fully automated, “hands-free” facility equipped with advanced temperature control and logistics technology, according to Solomon. The project is expected to be completed within two years at most.

EPSS operates 63 warehouses, 12 of which are rented, while the others are aging. EPSS Director General Abdulkadir Gelgelo (MD) stated that the new warehouse will address existing problems and improve storage standards mandated by the Ethiopian Food & Drug Authority (EFDA).

Awol Hassen, EPSS’s public relations head, stated that consolidating warehouses will boost efficiency by reducing management complexities.

During the meeting, Parliament’s Public Expenditure Administration & Control Affairs Standing Committee, led by Yeshimebet Demise and Arare Mosisa, expressed worry over warehouse conditions and the distribution of medicines.

EPSS distributes medicine and medical devices to 5,000 health institutions. Program medicines, funded by the Ministry of Health (MoH), account for 70pc of EPSS’s distribution, with a budget of 21 billion Br for the 2023/24 fiscal year. These include 163 essential medications like family planning and HIV treatments. The remaining 30pc are rotating fund medicines, budgeted at eight billion Br, covering chronic disease treatments and routine medical supplies.

Parliamentarians questioned EPSS about ongoing shortages of medicine and medical supplies in hospitals. In response, Abdulkadir stated that 69pc of program medicines are delivered directly to hospitals, but finance and logistics capacity limitations hinder the distribution of rotating fund medicines.

Abdulkadir said that EPSS receives a 2.5pc distribution fee from donor institutions to deliver program medicines. However, rotating fund medicines are not fully covered by this arrangement. “If hospitals pay for distribution, EPSS could expand its delivery services,” he said. EPSS recently acquired 147 vehicles from donor institutions to assist with transportation, according to him.

Solomon Abdela, a senior supply chain expert at the Ministry of Health (MoH), referenced an MoH study revealing that EPSS fails to supply approximately 25pc of rotating fund medicines. This shortfall forces hospitals to resort to expensive procurement methods, such as tenders, which inflate costs and strain budgets.

MPs criticised the lack of a barcode system for tracking inventory until the recent audit. Abdulkadir responded that implementing such a system would cost 174 million Br. He argued that an Enterprise Resource Planning (ERP) system, a software system that helps integrate various departments of an institution, must first be in place for barcodes to function. A pilot ERP trial began two years ago in select branches, costing nine million dollars and funded by global organisations, the MoH, and EPSS.

Full implementation of the 20-module ERP system, which integrates 20 departments within EPSS, started this fiscal year. Abdulkadir stated that the system will modernise medicine and medical device distribution across all warehouses and branches, allowing for better tracking of fund and program medicines.

The issue of expired medicines was also raised. Although EPSS reported a 0.39pc waste rate, below the Service’s one percent target and the World Health Organization’s (WHO) two percent to four percent benchmark, MPs criticised the loss of over 78 million Br in waste. Abdulkadir attributes this to the fact that some donors supply medicines with short shelf lives, which sometimes expire within nine months, contributing to the waste.

EPSS is also grappling with close to half a billion Birr unpaid credit from hospitals over the past five years. EPSS officials reported that nearly one billion Birr has been repaid, with the remaining debt primarily owed to health institutions in the Amhara and Tigray regional states.

State Minister for Health Frehiwot Abebe stated that 63pc of the total debt has been recovered. Abdulkadir said a draft proclamation for a drug fund and supplier system will create enforceable, contract-based procurement to hold all actors accountable, addressing the recurring credit build-up.

Amanuel Haile(MD), head of the Tigray Health Bureau, acknowledged improvements in the supply chain but stated that many health facilities in Tigray are unable to pay for medicine and supplies from EPSS.

The Ministry of Health (MoH) covered the regional state’s debt for the first quarter of the fiscal year, according to him. However, the collapse of community-based health insurance in the regional state left many without access to affordable medical care, argues Amanuel. With dwindling NGO support, Amanuel called for temporary debt relief and a swift relaunch of health insurance services.

Solomon mentioned that the Ministry is covering expenses for crisis-affected areas, such as the Borena zone during the drought. Amanuel admitted that health facilities’ budgets are insufficient, often lasting only one or two months.

The committee directed the Service to make further efforts to improve waste management, warehouse quality, and legal compliance. Yeshimebet instructed EPSS to submit a report within a month and provide quarterly updates until all audit issues are addressed.

Zinabu Bayu, a logistics expert, supported the planned mega warehouse project. While it may not be cost-effective initially, it will improve service delivery, according to him. Zinabu recommended that central hubs, like Modjo, be prioritised for the warehouse’s location. He says such locations would optimise logistics and customs processing. He cautioned against potential cyberattacks while appreciating the implementation of the ERP system.

 

 

 

Ethio telecom Expansion Stalls Over Funding, Land Costs

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Ethio telecom’s ambitious plan to expand infrastructure and improve rural connectivity is facing major setbacks due to funding shortfall and high land lease costs. The state-owned telecom provider needs 1.14 billion dollars to deploy new mobile sites in 1,000 locations, including 496 rural areas, a figure exceeding its annual profits.

CEO Frehiwot Tamiru told Parliament’s Standing Committee for State-owned Enterprises Affairs that the investment required outpaces the company’s yearly earnings. “Despite the financial hurdles, we deployed 2,564 mobile sites in rural areas,” she said.

However, Members of Parliament (MPs) criticised the company for unreliable services, rural inaccessibility, internet outages, and high tariffs. Desalegn Chanie (PhD), MP-NaMA, questioned internet blockages in the Amhara and Oromia regional states, poor mobile data quality, and unclear billing practices. He also criticised recent tariff hikes.

Frehiwot defended the increases, attributing them to currency devaluation driven by macroeconomic reforms. She said that adjustments were made with low-income users in mind.

MPs voiced frustration over the lack of connectivity in remote districts. One MP from South Ethiopia Regional State reported that 19 districts remain without network access, describing the situation as critical.

“Women are dying over there,” he said, stating that residents in these areas cannot call for ambulances, putting lives at risk.

An MP stated that half of the 270 districts in the Jimma zone of Oromia remain unconnected, despite repeated requests from local officials.

“We have done what we could to bring the investment to the people,” said Frehiwot, addressing concerns from MPs about unresponsiveness and delays.

Balcha Reba, director general of the Ethiopian Communication Authority (ECA), criticised the rising land lease costs imposed by regional governments, calling them “unfair” and urging federal lawmakers to intervene. “These inflated costs are jeopardising Ethio telecom’s ability to meet connectivity goals,” Balcha warned. “Regional authorities must take swift action to address this issue.”

He hopes that the new Universal Service Fund (USF) regulation, pending approval from the Council of Ministers, will address rural connectivity gaps. The USF proposes a 1.5pc levy on telecom operators’ annual gross revenue, with funds managed by the Ministry of Finance (MoF). Contributions from operators, donors, and the government will finance rural expansion projects, with the ECA overseeing project selection and tendering.

“It will be a pay-to-play game for the operators,” Balcha stated, disclosing plans to target 104 of the 1,008 districts with network gaps.

Frehiwot stated that the company’s profit margins are insufficient to fund large-scale projects without external support. “We need investment help,” she said. The CEO cited access to land, electricity, and security as ongoing barriers.

Ethio telecom, which monopolised Ethiopia’s telecom sector for over a century, holds a 94.5pc market share, serving 80.8 million people. Mobile services account for 78.9 million users, while broadband services reach 43.9 million.

In the past fiscal year, the company’s revenue grew by 21.7pc to 93.7 billion Br, up from 71.5 billion Br in 2023, with a net profit of 21.7 billion Br. Its customer base expanded by 8.9pc, covering 85.4pc of Ethiopia geographically. Telebirr, Ethio telecom’s mobile money service, has 51.92 million users, handling 3.38 trillion Br in transactions, 73pc of which occurred last year.

Ethio telecom operates 8,530 mobile sites, with 47pc powered by generators, 21,827km of backbone fiber, and 4,744 fixed access networks. Despite this progress, the company faces problems, including foreign currency shortages, equipment theft and vandalism, and conflicts.

Ethiopia lags behind its neighbors in internet connectivity, with nearly 90 million people unconnected, compared to 33 million in Kenya and 27 million in Sudan. Kenya and Sudan have internet penetration rates of 29.5pc and 28.4pc, respectively.

Digital expert Endashaw Tesfaye from the United Nations Capital Development Fund (UNCDF) argues that Ethiopia needs more telecom operators to meet the rising demand. He suggests Safaricom’s increased involvement could help bridge connectivity gaps. Endashaw says that expansions into underserved communities require incentives.

“The government should introduce incentive packages for new telecom operators,” he said.

Endashaw advised Ethio telecom to assess risks and reduce debt burdens to attract investors as it prepares to sell shares to the public. Acknowledging  Ethio telecom’s 65pc digital coverage, he says there is a gap between coverage and service quality. He says the service is plagued by persistent system outages and inefficiencies.

He recommends building resilient infrastructure and emergency plans to create a sustainable digital ecosystem. Endashaw says true success requires not only expanding services but ensuring efficiency, quality, and inclusivity.

He stated that regulators should strengthen their capacity, develop strategic investment plans, and pursue gradual improvements to enhance Ethiopia’s telecommunications landscape.

Traffic Management Overhaul Digitises Fines, Parking Fees

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City transport authorities have launched a new digital traffic management system that has already registered over 600,000 vehicles. The system is expected to save more than 17 million Br annually by replacing manual pads used for issuing fines and collecting parking fees.

This digital upgrade, introduced last week, covers parking, fine enforcement, and overall traffic management, with a plan to modernise the city’s transport system.

Kibebew Mideksa, director general of the Addis Abeba Traffic Management Authority (TMA), stated that traffic fine payments under the new system will begin this week.

“Manual processes will be completely eliminated,” he said.

The system, developed by Infratech Software Service Plc, integrates with data from the Addis Abeba Driver & Vehicle Licensing & Control Authority (DVLCA), automatically registering vehicles when they receive a service or fine.

It also includes a digital parking system to eliminate manual payments and address illegal parking. The technology registers parked vehicles, calculates fees, and processes payments online. Drivers will use a mobile app to locate parking spaces, access information on electric vehicle charging stations and public restrooms, and navigate to their destination.

Upon parking, the app tracks time automatically, allowing drivers to view fees and pay online through an account managed by the TMA.

The new system is expected to reduce the role of parking operators, who will now focus on recording the start and end times of parking services. According to Kibebew, the system aims to minimise corruption and overcharging while improving efficiency.

The change will impact around 140 parking associations employing 13,000 people. Their income will now come from a percentage-based agreement with the Authority instead of collecting directly from drivers.

Alongside the system, the TMA is constructing 44 new parking stations, adding to the 45 already operational across the city. The Authority has also fined 180 building owners 100,000 Br each for not opening their underground floors for parking. Buildings are required to open their parking areas to the public, with licenses and penalties enforced for non-compliance.

The traffic system is managed by a committee representing the TMA, Transport Bureau, Innovation & Technology Development Bureau, and the DVLCA. As part of the rollout, 1,500 tablets have been procured for 1,250 trained traffic officers.

The platform also includes real-time accident reporting and automatic vehicle registration. Traffic police can use the tablets to identify wanted vehicles and communicate directly with drivers via mass text messages about road closures, holidays, and important updates.

The new digital traffic management system links a vehicle’s registration number to the owner’s phone, allowing owners to add or modify driver information. When a traffic fine is issued, both the driver and owner receive text notifications. The system also tracks repeated violations and registers demerit points.

Kedamawi Mulualem, CEO of Infratech, stated the system will improve traffic control and hold drivers accountable. “It integrates traffic management aspects from parking to accident reporting and communication,” he said.

The system enforces the Road Transport Traffic Control Regulation passed in August by the Council of Ministers. The regulation outlines traffic fines ranging from 500 Br to 20,000 Br, with drivers having the right to appeal.

Traffic offenses are categorised into three tiers with escalating fines. First-category offenses, such as distracted driving or carrying a child under 13 in the front seat, incur a 500 Br fine. Second-category offenses, including horn misuse, improper parking, and slow driving, carry a 1,000 Br fine. Third-category violations, like lane offenses, overloading, mobile phone use while driving, and seatbelt violations, result in a 1,500 Br fine.

Special violations, such as parking or stopping in prohibited areas, carry a 3,000 Br fine.

Demerit points are registered for each offense, and drivers accumulating too many points risk license suspension.

Yabibal Addis, head of the city’s Transport Bureau, believes the new digital system will enhance road safety and reduce congestion by enforcing traffic laws more effectively.

Biniyam Hailu, head of a parking works cooperative, said his association is not yet informed about the digital parking system. His cooperative, consisting of 11 members, manages parking for over 3,000 vehicles monthly, issuing between 3,000 and 6,000 tickets at 20 Br each.

However, Abiy Aleneh, a lecturer at Kotebe University of Education, says the city’s authorities should prioritise resources for essential services. He acknowledges that the system will increase revenue and simplify licensing. Abiy suggests public awareness campaigns and smarter infrastructure, such as cameras and digital tracking to prevent accidents and crime.

Earthquake Displaces Thousands, Threatens Kessem Dam

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A series of increasingly powerful earthquakes have struck the Afar, Amhara, and Oromia regions, damaging homes and infrastructure, and forcing authorities to scramble to evacuate residents. The quakes, which have grown in magnitude and frequency, are causing panic and disruption across affected areas.

On Saturday alone, over seven earthquakes were recorded, with magnitudes exceeding 4.4, according to the United States Geological Survey. The strongest, measuring 5.8, hit Fentale and Dulecha woredas of Afar region on Thursday night, while a 5.7 magnitude quake followed on Saturday.

The FDRE Government Communication Service confirmed that the earthquakes have intensified in recent days, prompting efforts to assess damage and mitigate further risks. The Afar regional and federal governments are leading evacuation efforts in Awash Fentale and Dulecha woredas, part of the Gabi Resu zone in Afar.

Authorities are particularly worried about the Kessem Dam on the Kessem River, fearing the tremors could lead to a catastrophic collapse that would endanger tens of thousands of lives and destroy homes and infrastructure.

Residents are already experiencing serious damage. Ali Said, a displaced resident from Segentu kebele in Dulecha, said that 40 houses in his neighborhood have been damaged. Cracks are visible across the ground and structures.

The Kessem Sugar Factory, located in Awash Fentale and Dulecha, suffered damage to workers’ dormitories and facilities. The factory’s general manager, Ali Hussein, said workers have been evacuated to Amibara woreda’s Awash Arba town, about 30 kilometers away. Many are now living in open fields, creating a humanitarian crisis.

Factory operations have ceased, with schools, hospitals, and other institutions in the area shutting down due to ongoing tremors. “The administration, warehouse, and operating stations are completely closed,” Ali stated.

An eruption occurred about a kilometer from the factory last week, releasing hot springs and foul-smelling gas, further unsettling the community.

The situation has worsened since December 18, with over 10 volcanic eruptions recorded around Mount Fentale, according to Abdu Ali, administrator of the Gabi Rasu zone.

The epicenter of the earthquake extends across 12 kebeles, dangerously close to the Kessem Dam, raising fears of a potential collapse that could devastate nearby communities. Many homes in Afar have been damaged, prompting residents to flee on foot and by vehicle.

Mohamed Adem, a regional water and sewage official, deeply worries about the lives at stake if damage happens to the dam. “There are two threats, the earthquake itself and the possibility of the dam breaking. If that happens, only Semera city in the whole Afar region might escape destruction,” Mohamed told Fortune.

The government estimates that 80,000 people live in the earthquake-prone areas. As of last week, 37,000 people were evacuated from four kebeles in Awash Fentale woreda. In Dulecha woreda alone, more than 10,000 people left their homes. The tremors have also affected Amibera, Werab, and Awash woredas.

Kedir Hassen, head of Kebena kebele, Dulecha woreda, is among those displaced and now shelters in Awash Arba. “We’ve lost everything and are struggling to survive. We urgently need help,” he said. The lack of food, water, and shelter is especially severe for the elderly and disabled.

The chaotic displacement has separated families, and many livestock have been lost or scattered. In Melke Sedi town, displaced communities report severe shortages of food and water. “We are drinking from the Awash River, which is unsafe and could lead to health problems,” said Ali, another evacuee.

The crisis has created economic strain. Residents are paying up to 20,000 Br for Isuzu trucks to transport belongings to safer areas like Awash Sebat and Awash Arba. Smaller transport, like bajaj rides, costs between 4,000 Br and 10,000 Br.

Musa Hassen, head of education and disaster prevention at Awash Fentale, told Fortune that the Ethiopian National Defense Forces (ENDF) has been involved in the evacuations. ENDF began moving people by patrol trucks on January 3, continuing the next day from areas such as Kessem, Kebena, and Boleyta. Over 2,000 people have already fled their homes.

Temporary shelters have been set up in Awash Arba town of Amibera woreda, but evacuees say these are insufficient, leaving many families stranded in open fields.

Natnael Agegnehu, head of Geodesy & Geodynamics at the Ethiopian Space Science & Technology Institute (ESSTI), stated there were over 100 earthquakes last week alone. “The closer to the epicenter, the higher the risk,” he said. Natnael says that the government should ensure improved urban planning to mitigate earthquake impacts in the future.

Atalay Ayele (PhD) warned that recent earthquakes have been more intense than usual. “We must not get complacent. Highest magnitudes were recorded this week,” he told Fortune.

Banks Overhaul Governance as Regulators Tighten Controls on Boardroom Power

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Spurred by a set of directives the National Bank of Ethiopia (NBE) issued lately, commercial banks have embarked on a quiet overhaul of their governance structures.

Details of how the rules will be enforced continue to emerge. However, central bank officials have issued five directives covering corporate governance and risk management. In addition to guidance on board composition, their regulations compel banks to maintain comprehensive databases of related-party transactions and updated credit profiles. They hope transparency at this granular level will lower systemic risk, a vital consideration for an industry susceptible to connected lending in a rapidly evolving economy.

A regulation requires one-third of banks board of directors to be independent individuals with no direct ownership stakes or day-to-day involvement in the institution’s operations. An existing board nominates these independents and then is elected by shareholders, a measure intended to bring neutrality and more robust oversight to boardroom decisions. Banks whose boards have reached their tenure under prior governance structures are among the first to comply.

Under the revised rules, regulatory authorities also enforce additional constraints on board composition. Another third of directors should be nominated and elected by non-influential shareholders, a category defined by ownership of less than two percent of the subscribed capital. The central bank has also tightened requirements for board members’ competence, mandating that directors have the time, expertise, and independence needed to contribute effectively.

The authorities have also capped the number of concurrent directorships individuals may hold. The new directives also restrict the participation of senior executives on boards, limiting the number of bank employees on a board to two, including the president. Those employee directors are barred from serving as chairpersons.

The NBE now requires at least two female directors on each board to ensure diversity.

According to Frezer Ayalew, the head of NBE’s Supervision, shortcomings in banks’ governance prompted these reforms. Internal assessments and the regulator’s most recent stability report uncovered repeated lapses, including insufficient board objectivity, a dearth of independence, and an undervaluation of credit risk concentration. Frezer attributed poor identification of connected borrowers to stagnant oversight. By forcing banks to include directors from outside their traditional circles, the regulators expect more thorough scrutiny of lending decisions.

“Weaknesses were identified in the existing governance structure,” Frezer told Fortune. “Changes have been crucial to ensure greater safety and soundness.”

Bankers say these changes target the financial sector with international corporate governance practices. Several banks have moved swiftly to meet the new rules by selecting and nominating board members who appear to meet the tightened criteria.

The Cooperative Bank of Oromia (Coop Bank), Global Bank Ethiopia, Hibret, and Bunna banks, and are among those that have taken action following recent general assemblies.

At the Coop Bank, the new board was chosen on December 30, 2024, where Deribe Asfaw, the president, was nominated, alongside other new members such as Abinet Tarekegn, Tigistu Shiferaw, and Fikru Deksisa (PhD). Shareholders also picked from a roster of additional professionals, some with specialised expertise in cybersecurity, investment banking, environmental matters, and mergers and acquisitions. The Bank’s newly nominated board includes four independent directors: Assefa Sumro, Yeshi Jema, Lema Yadecha, and a consultant, Douglas Manshuva. Several directors represent the category of non-influential shareholders, including nominees such as Meseret Assefa and Jemal Kedir.

Coop Bank officials say they devoted close attention to skill sets that might fill knowledge gaps, with the Bank’s executives claiming the directive brought clarity to the areas where the board needed reinforcement. The final group of 32 nominees was presented to shareholders, and the Bank is now preparing to send the 12 nominees to the NBE for approval within the required 20-day window.

Deribe spoke of optimism about the tighter governance rules at the general assembly where these appointments were finalised. Deribe and other bank leaders welcomed the regulations, pointing out the growing complexity of the finance sector and the need for additional oversight. While acknowledging that layered approval processes can slow certain decisions, they maintain that a stronger board structure will bolster the resilience of financial institutions.

Across town, Hibret Bank convened its 27th general assembly, announcing new appointments to its board. Unlike the Coop Bank, however, Hibret did not nominate any staff members to serve on its board. Instead, the Bank selected three external directors, among them Mesfin Tessema, Azalech Yirgu and Worku Lemma, former vice president at the state-owned Commercial Bank of Ethiopia (CBE). With a quarter century of experience in the domestic banking industry, Worku also co-founded Oromia Bank and Global Bank Ethiopia.

According to Tsigereda Tesfaye, Hibret Bank’s acting president, the reorientation to include independent directors, particularly those with institutional knowledge but no direct stake, would help ensure impartial decisions. She believes bringing onboard such outsiders with seasoned industry veterans will sharpen the Bank’s risk management and strategic planning. She also noted the directive’s insistence on female directors, hoping to see a broader shift in the banking culture toward balanced representation.

“It’ll bring big changes to the Bank,” she told Fortune.

Not everyone in the industry is fully convinced.

Teferi Mekonnen, president of Oromia Bank, acknowledged the upsides of adding experts who know the ins and outs of a bank’s daily operations. He argued that executives who serve on boards can streamline decision-making processes, particularly on time-sensitive issues that might otherwise languish, while external board directors educate themselves on a bank’s intricacies. He recalled urgent proposals being bogged down because the board did not fully grasp the implications.

“Executive management members in the board can make positive changes,” Teferi said.

Nonetheless, Teferi is more reluctant to the merit of incorporating independent directors in an environment that is yet to be ready for a structure where outside expertise and impartial eyes can effectively steer bank decisions.

“It is too soon for this,” he told Fortune.

He believes that shareholders who have direct financial stakes in a bank’s performance offer more reliable guidance than external experts who may be unfamiliar with institutional contexts. Convinced that board decisions tend to be better entrusted to individuals with skin in the game, Teferi urged the nomination of independent directors to become optional.

The Ethiopian Bankers Association, the industry’s lobby group, endorsed the NBE’s latest attempts to assert corporate governance reform.

Its Secretary General, Demisew Kassa, shares the regulator’s view that most boards lack the breadth of knowledge to address contemporary challenges fully. He believes an independent perspective can redress the tendency for in-group dynamics where existing shareholders and managers might overlook inherent conflicts.

Financial industry veterans likewise see the necessity of these reforms.

Eshetu Fantaye, who has spent decades in the financial sphere, recalled the mid-2000s, when the NBE allowed bank presidents to serve on boards but then reversed course due to multiple disputes that pitting boards against executives. In one instance, the Central Bank had to remove presidents from boards in 2008 due to disagreements that threatened corporate stability. According to Eshetu, personal interests among certain board members have sometimes led to executive team micromanagement, damaging institutions and creating tension that shook depositor confidence.

For Eshetu, returning executive board membership is a calculated move. He contended that if it is carefully supervised, it could enhance swift decision-making and strengthen corporate accountability. But he, too, sees risk in boards that exert too much influence over daily operations. Such interference can delay strategic development or lead to ill-fated directives when oversight responsibilities and executive powers blur.

“Regulators should have been more vigilant,” Eshetu said, urging regulators to stand ready to intervene if a bank’s governance veers off course.

Those who support the reforms argue that the presence of outside directors, alongside clearly defined roles for executives and robust documentation of related-party transactions, can preempt many of the risks Eshetu raised. The NBE’s latest stability report stated the seriousness of credit risk concentration, where borrowers with insider connections allegedly accumulated large loans under lax scrutiny. The new directive targeted this, seeking to ensure that independent directors, free of shareholding entanglements, can cast a critical eye on approvals and challenge majority shareholders when necessary.

Thorough compliance requires boards to maintain databases that track lending to connected borrowers, shining a light on the once-opaque corners of credit decision-making.

The regulator’s timeline for these changes is already in motion. Banks that have not yet reshuffled their boards, particularly those approaching scheduled general assemblies, are expected to do so shortly. As banks deal with these adjustments, industry leaders say the transition will likely involve trial and error. One bank may focus on technology experts to guide decisions on cybersecurity investments, while another might prioritise specialists in environmental and social governance.

Depressed Buyers, Burdened Vendors as Stagflation Dulls Christmas Holiday

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The blistering sun barely bothered 60-year-old Alemneh Eshetu as he strolls from one vendor to another looking to buy an affordable chicken. With his red coat and hat to cover the inferno, he paces around with 1,000 Br in his pocket, expecting to secure a small-sized chicken and some butter to cook it with.

His limitations made him haggle with every vendor. He came out unsuccessful. The smallest chickens were selling for 1,000 Br. “It’s an unbearable price,” he said, feeling like his wallet had shrunk.

He settled down to leaving the market with just a kilogram of butter (lega qibe) for 800 Br and throwing his other plans out the window. Alemneh lives off a 3,000 Br pension and some support from his children. It is all insufficient, especially where his severely eroded purchasing power makes it nearly impossible for him to sustain a living.

“I am unable to afford anything anymore,” he said.

Shola Gebeya around the Megenagna is unmistakable for its pungent odour and the cackling of chickens bundled in baskets, only to be pulled out and marketed at every would-be buyer. Shoppers size up the chickens, only to swiftly leave when hearing the price.

Discouraged salesmen like Shiferaw Tesfa, who brought 250 chickens primarily from Wolaita, West Shoa Zone, and Hareri Regional State, was only able to sell 20 chickens in a week. “Most buyers hear the price and shy away,” he said.

In this Christmas holiday market, the price of chicken hovers from 1,000 Br to 1,500 Br, showing a slight surge from the previous major holiday—the new year holiday in September—where prices ranged from 800 Br to 1,400 Br. Vendors blame inflated feed prices and transportation costs.

Eggs from local breeds fetch 16 Br in the market, leaving many to resort to the less flavourful foreign type sold at 12 Br in bid to save. A kilogram of butter (lega qibe) shot up by 100 Br in just the past two weeks, fetching 850 Br for varieties brought over from Wellega and Gojam zones.

On the other side of Addis Abeba, Qera has become a transformed market arena after the corridor development project wiped out marketplaces that buyers were accustomed to. Sheep traders have been exiled, making the once active market area feel blazingly quiet. This has cast a sense of dread over the Qera market this Gena holiday season.

The massive development project, which began several months ago, has displaced 18 sheep sellers. Two vendors were forced to relocate their sheep flocks to the corners of the market, facing decreased visibility and potential loss of customers.

Zeid Ahmed, 33, crammed 150 of his sheep into a narrow space. Despite efforts to secure temporary holiday selling grounds, he was unsuccessful, leaving him to settle his flock in an area used for other purposes. “We had to beg property owners just to settle here,” he told Fortune.

“I haven’t been able to sell anything as my sheep are not visible,” Zeid mutters, gesturing to his flock. “We have been left hanging.”

While officials acknowledge the need for a temporary market, they maintain that providing a permanent solution falls outside their jurisdiction. Samuel Yohannes, head of the Nifas Silk Lafto district’s wereda 05 office, explained that his office has actively worked to accommodate vendors during the holiday season, looking to ensure a smooth market experience. He admitted, however, that finding suitable spaces for sheep and goat vendors has proven challenging, as many potential locations have been allocated for development projects.

“We did what we could to provide temporary spaces,” Samuel told Fortune. “The rest is beyond our mandate.” He emphasized that lobbying efforts are the only recourse for securing permanent spaces that can effectively support the needs of the vendors.

With selling spots diminished, the price of sheep has exhibited a moderate increase from September with prices ranging from 7,000 Br to 30,000 Br, up from 5,000 Br to 20,000 Br from the last holiday.

In contrast, the bovine market situated a short distance away appeared to be faring better. Its location, further removed from the main road, had shielded it from the disruptive impact of development-related demolitions. Under the scorching midday sun, dozens of bovines leisurely strolled on the muddy ground.

Cattle from Harer, Wellega, Jimma and Bahir Dar were sold at increased prices for higher-end stock, fetching between 45,000 Br and 300,000 Br. The last holiday’s prices were from 55,000 Br to 200,000 Br.

Vendors such as Bekele Eshetu eagerly wait to talk any customer that may glance it his 15 bovines that he attractively lined. Bekele attributes the surge in bovine prices to inflated logistics costs. He pointed out that drivers charge 90,000 per truckload, as they claim to have to pay unofficial fees at various checkpoints, especially on the roads in Amhara Regional State.

“I was forced to halve the number of cattle I brought to the capital’s market,” he said.

At a distance, 33-year-old Abinet Shumete hops from vendor to vendor, haggling for hours for better prices. With a 90,000 Br budget contributed by six people, he struggled to find something suitable as the cattle type he had in mind are quoted at 130,000 Br. “We didn’t agree for this,” he said thinking of where else he could try.

“Things have surely changed in a short time frame” Abinet told Fortune, referring to the continuing growth of prices.

Integral to holiday meals, onions are selling for a staggering 130 Br a kilogram, pressing down on holiday spirits. Red pepper (berbere), the source of flavour for any well-made chicken stew (do’ro wet) is selling for 500 Br a kilo, while black cumin cost around 450 Br, rising from 350 Br in September. A kilo of cardamon is sold at 1,500 Br per kilo, rising by a heavy 400 Br.

The Addis Abeba Trade Bureau conveys optimism that three newly established agricultural market centres in Akaki, Lemi Kura, and Kolfe Qeranio districts will offer more competitive prices compared to traditional markets. Meketa Adafre, head of trade expansion & control at the Bureau, stated that they conduct regular inspections, visiting the centres thrice weekly, to ensure prices remain affordable, reportedly 20pc lower than those found in regular markets.

Meketa emphasized that the primary objective of these centres is to mitigate food inflation by streamlining the supply chain between farmers and consumers. He asserted that a kilogram of onions is currently priced at 90 Br at the centres and Sunday markets, while eggs are available for 11 Br.

“Buyers just need to source produce from these markets,” he said, while still acknowledging difficulties facing certain sellers in the inner city.

“Our goal is to make prices affordable,” Meketa told Fortune.

In the heart of Addis Abeba, on Yohanis St., on the former parking lot of Spa Service Enterprise (Filwuha), a new market place has propped up. Covering a total of 6,000sqm and holding over 80 small and medium enterprises, manufactured products were showcased with blistering music and huge banners on the outside inviting onlookers into the open space. Products from clothing to detergents, and woodworks to food were marketed.

Jorka Events Organizer partnered with the Ethiopian Enterprise Development to organize the holiday bazaar aiming to bring producers and buyers close.

One of the selected vendors, hailing from Tigray, Haleka Zekios Honey & Honey By-products Plc, had four honey types in one- and two-kilogram packaging. Prices vary based on colour and size with white honey commanding the highest price tag at 2,000 Br per kilo, followed by the yellow variant at 1,500 Br, while red honey sells for 1,000 Br.

The general manager, Mulugeta Zekios, states that the business is going well, with most customers opting for the yellow variant.

Based in Adwa, in the heart of Tigray, his company had fallen victim to the two-year war and faced huge damage, losing the majority of its machines to looting. “We are now reviving,” he said as he prepares to enter export markets.

Nearby, another vendor was selling honey sourced from Bonga in Keffa zone of South West Ethiopia Regional State for 800 Br.

Other marketed products at the inaugural bazaar included Cardamom for 160 Br per 50g and white and black cumin, both selling for 120 Br per 50g. Edible oil prices ranged from 200 Br for one litre and 1,380 Br for five litres.

Jorka Events Organiser plans to expand on the bazaar. Its managing director, Aga Abate informed of plans to create a permanent market in the space incorporating large-scale manufacturers which would sell at competitive prices. “We are aiming big for this market place,’ he said. He noted 60 million Br was invested on making the former parking lot suitable for a holiday market space.

Economist Arega Shumete (PhD) argues that the government’s claims of declining inflation contradict the reality of rising food inflation. He believes stagflation has occurred, where a combination of stagnant economic growth and rising inflation is placing a substantial burden on consumers who are facing a broad range of increasing prices.

A recent report by the World Food Program (WFP) and United Nations recalled that Ethiopia is experiencing high food prices—up to 25pc higher than levels seen last year. It also revealed that around 15.8 million people are facing high levels of acute food insecurity and are in need of assistance.

Arega further suggests that the displacement of many buyers from inner cities to the outskirts has created a widening gap between supply and demand, exacerbating economic limitations.

He called for policy interventions to address the main bottlenecks causing inflation and malfunction of domestic food markets. He called for policies that would curb rising food prices by promoting increased yields through research, extension services, and improved trade infrastructure.

He also pointed out that technological innovations which improve productivity need to be widely implemented.

“There needs to be reform in consumer culture,” he added.

Forex Moves Test Market Boundaries While Caution Casts a Long Shadow

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Last week, the foreign exchange market provided a window into the persistent tussle between policy objectives and market forces. An outlier emerged in Tsehay Bank, which decisively pushed past the 125 Br mark in its buying rate, raising eyebrows among industry observers who note the potential for heightened competition to further strain forex availability.

From December 30, 2024, to January 4, 2025, the Brewed Buck’s gradual depreciation against the Green Buck continued unabated, culminating in a consistent upward trend that led some banks to cross symbolic rate thresholds. Though most banks raised their rates, Tsehay Bank’s move stood out for its assertiveness, with a buying rate of 125.96 Br and a selling rate of 128.48 Br on January 3 and 4. By surpassing the 125 Br psychological barrier, its forex managers effectively signalled they were hunting for a larger share of hard currency inflows from remittances and exports, even if they risked fueling further market pressures.

Such divergence brought forth the broader questions shaping the foreign exchange market.

While Tsehay Bank’s aggressive rates showed a willingness to capitalise on Birr’s downward trajectory, several competitors demonstrated wariness in steering market volatility. Banks like ZamZam and Goh Betoch, for instance, kept their buying rates a few cents below the 125 Br mark on January 4, posting 124.99 Br and 124.97 Br, respectively. This marginal gap from the 125 Br line alluded to a preference for caution, likely managing exposure to shifting currency dynamics.

The conservative position could appeal to importers and businesses wary of steep rate fluctuations, even if it reduces these banks’ immediate competitiveness in attracting foreign exchange. It could also indicate an unofficial understanding in the industry that rates need to be checked below the 125 Br mark, exposing the tension between policy roles and profit-driven imperatives.

The state-owned Commercial Bank of Ethiopia (CBE) continued to post the lowest rates in the market. On January 4, its buying rate stood at 124 Br, well below the private banks’ averages, and its selling rate lingered at 126.48 Br. CBE has been viewed as an anchor of stability, ensuring state-directed access to foreign currency for strategic sectors rather than chasing market share. Yet the gap between CBE and its private competitors may raise issues about how sustainable this approach will be as competitive pressures intensify.

While CBE remains a crucial conduit for funnelling hard currency to essential economic activities, it operates as a policy instrument first and a profit-driven enterprise second. Against the backdrop of a steadily depreciating Brewed Buck, that mission is becoming increasingly unattainable.

The Big Four — Awash, Abyssinia, Dashen, and Wegagen — proved the clout that major private banks wield in setting the pace for forex rates. Their positions hovered around 125.70 Br on the buying side, uncovering a balancing act between going too high and risking undue pressure on their reserves, or going too low and ceding market share to leaner but more aggressive players.

Bank of Abyssinia (BoA) on January 4 posted a buying rate of 124.80 Br and a selling rate of 127.30 Br, while Dashen, Wegagen, and Awash hewed close to these rates. The near-uniformity among the top-tier lenders revealed a shared view of near-term depreciation risk and an acknowledgement that none can afford to stray too far from the rest without paying a competitive price. Yet the show of unity also exposed an underlying constraint. These larger institutions may find it difficult to match the pressure coming from smaller banks looking to stand out through higher rates.

Throughout the final days of 2024 and the start of 2025, the Brewed Buck’s losses against the Green Buck exerted pressure across the forex market. The average buying rate climbed to around 124.8 Br, while the selling rate neared 127.2 Br, representing a two percent margin that the industry relies on for profit-taking. By pushing a selling rate of 128.48 Br, however, Tsehay Bank tested the upper limit of this norm, presenting that smaller and mid-sized banks could set more assertive benchmarks going forward.

For market participants, Tsehay Bank’s recent move should raise issues about whether a trend toward higher private bank rates will force established players to follow suit.

Yet caution lingers. The foreign exchange market remains subject to policy interventions by the Central Bank in a still-evolving local economic context. Tsehay Bank’s bold approach may be an early indicator of deeper competitive realignments, particularly if other banks decide that capturing a larger slice of incoming forex is worth the added risk. Banks such as ZamZam and Goh Betoch might continue prioritising rate stability over pushing boundaries, considering their retreat from higher rates posted two weeks ago.

CBE’s posturing only reflects its role as a safety valve, showing how a state-driven agenda can diverge from market imperatives. The coming weeks will likely reveal whether Tsehay’s outlier manoeuvring gains traction or if the Big Four’s alignment and CBE’s stabilising influence lead to a narrower band for exchange rates, preserving a measure of predictability in a market that remains on edge.

 

SOMICK’S LENS

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Sewmehon Yismaw, known affectionately as “Somick,” is a filmmaker who describes his life as a mystery he would personally direct. He speaks proudly of his childhood, recounting how his gift for storytelling was nurtured by a local figure, Taju, who would tell him stories from television and radio. For him, stories are more than entertainment. They are vessels filled with layers of meaning, as he mixes and reimagines them to captivate his siblings and cousins. Dedicated to authenticity, he draws heavily on personal memories; his unique background and the rich storytelling culture of his birthplace have shaped his creative approach.

His docu-drama, “Ewer Amora Qelabi,” initially inaugurated but never shown in cinemas, stands out in his filmography. Conceived to address the topic of illegal migration and seeking sponsorship, it never secured a theatrical run or the desired funding. Somick and his producers are, however, undeterred. They plan to release the film themselves to ensure its message reaches its intended audience. Driven by an urge to portray stories that resonate with his own experiences, Somick believes that the right movie emerges when there is a personal, emotional connection.

A particular wedding experience he attended as a child remains inspirational. The memory of tents pitched in the morning fog, celebratory gunshots, and dancing under the big sky, later channelled into a music clip for Aschalew’s “Enatewa Gonder,” illustrated how he employed nostalgia to produce meaningful art. His reverence for childhood extends beyond personal memories; the tales of “Bilicho & Mitmitit” and “Lame Bora” are already in his sights as future projects, intended to preserve a legacy and impart lessons in empathy and compassion.

Legends of Ethiopia’s past equally move Somick. He would love to travel back in time, particularly to Emperor Tewodros II’s era, and his respect for Emperor Haileselassie’s “tireless love” for Ethiopia is profound. His patriotism surfaced when quizzed to utter a word in a movie, which would be “Ethiopia.” Cinematic heroes closer to his field include Solomon Bogale, an actor whose subtlety and precision he finds exceptional. He also credits Iranian filmmaker Majid Majidi and Giuseppe Tornatore of “Cinema Paradiso” fame as key inspirations abroad.

He views the film industry’s shift to streaming platforms as an encouraging development. Yet making films in rural areas, while offering a focused working environment, poses its own limitations. The lack of security in certain regions complicates schedules, and different cultural norms can prove startling, especially when firearms or traditional customs collide with outside expectations. Despite these snags, Somick has pressed on with demanding productions like “Sewnetua” and long gruelling nights transferring VHS footage to computers with little sleep.

In an interview with our reporter, BEZAWIT HULUAGER, Somick discusses the underlying theme throughout his career is his tenacious love of storytelling and film. Whether recalling early viewings of “China O’Brien,” his fascination with dogs as subjects brimming with human qualities, or the possibility of having dinner with Haile Gerima (Prof), his passion and reverence for cinema shine through. He remains devoted to uncovering stories he believes in, firmly rooted in the past, but always scanning the horizon for new opportunities and new ways to share his experiences with the world.

Today, he envisions creative projects beyond the screen, drawn to Ethiopia’s vibrant history and larger-than-life figures. In Somick’s mind’s eye, the stories of freedom fighter Abdisa Aga, an Ethiopian patriot who fought the Italian occupation in Ethiopia and in Eastern Europe, unfold as richly layered films.

For more than a decade, Somick enthralled Ethiopian audiences with his striking visuals. His work, from iconic Habesha Beer commercials to music videos for pop artist Teddy Afro, has cemented his reputation as one of the country’s most compelling filmmakers. His flair lies in telling deeply relatable stories, an approach honed by his involvement in the popular TV drama series “Adey.” There, he found the confidence to take his passion for cinematic storytelling to new heights, weaving in moments of everyday life that resonate powerfully with viewers.

If your life were to be a movie, what genre would it be, and who would direct it?

Sewmehon Yismaw (Somick): It would be a mystery, and I would direct it myself.

Why was your film “Ewer Amora Qelabi” not shown in cinemas?

We aimed for sponsorship, particularly from those dealing with illegal migration, but fell through. Now, we are exploring releasing it independently. It is a docu-drama that had a short inauguration screening but never made it to cinemas.

What inspires your choice of stories and movie projects?

I am drawn to stories I connect with in real life.

If you had an unlimited budget, what would your dream movie be?

A film about Abdisa Aga. [An Ethiopian patriot who fought Italian occupation during the Second World War.]

Which childhood story would you like to turn into a film?

I am working on a film based on “Bilicho & Mitmitit,” partly as a memorial for my children. I am also fascinated by “Lame Bora” because it teaches sadness, compassion, and empathy.

How did your childhood influence your love for storytelling and film?

My childhood was filled with vivid experiences. A man named Taju had access to television and radio; he was a great storyteller. I would adapt his tales for my siblings and cousins. Where I grew up, storytelling was a way of life.

Especially a wedding I attended with my mother, have influenced my work, including the video clip for Aschalew’s “Enatewa Gonder.”

We spent 13 days at a hotel, unsure of our direction for the music clip. I then remembered that wedding—the pitched tent, leaves scattered on the ground, celebratory gunshots, the pots and pans, the dancing, and the morning fog. We ended up recreating that childhood wedding, minus the gunshots. My work often draws heavily from my childhood experiences.

What kind of stories did you tell growing up?

I told Taju’s stories, along with Bible stories, hagiographies, and church dramas. A particular drama, “Aba Alem Lemenie,” featuring a woman disguised as a monk, left a deep impression on me, especially the soundtrack.

If you could travel in time, where would you go?

I would happily return to my childhood. Otherwise, I would love to witness the era of Emperor Tewodros II.

What was a memorable moment during your film shoots?

When transferring VHS footage to computers, we sometimes did five or six tapes overnight, leaving me two hours of sleep a day. I once ordered my crew to set up cameras, only to immediately change my mind and scold them. Exhaustion caught up with me, and the producer made me rest.

If you could only use one word in a movie, what would it be?

Ethiopia, because it is so important to me.

If you could cast only one actor/ actress, who would it be?

I admire Solomon Bogale for his controlled, nuanced performances. I believe Ethiopian acting should be redefined.

Text or phone calls?

Text messages are simple and precise.

What are your favourite colours, and how would you explain them to a blind person?

Purple and military green – explaining them in words would be difficult. Red is easier; I would have them touch a hot object to convey its intensity.

What are your favourite films, and  the directors you admire?

Internationally, “Life Is Beautiful” and “Cinema Paradiso” — the latter feels close to Ethiopian life. I am impressed by Guiseppe Tornatore and Iranian filmmaker Majid Majidi. Among Ethiopian films, I admire “YeEger Eta, Teza, and Atletu.” From Ethiopian directors, I would like to work with Tatek Tadesse.

What are your thoughts on the current state of the film industry?

It is leaning toward streaming platforms, creating opportunities for more high-quality films as revenues grow.

What obstacles do you encounter when filming outside Addis Abeba?

Lack of security. However, when it is peaceful, having everyone stay at a camp keeps production efficient.

Any unforgettable fan experiences?

My car once held up traffic while I was paying a bill. Instead of getting angry, a man praised my work, brightening my day.

How long have you been married, and how has your family supported you?

I have been married for 10 years. My wife is my biggest supporter and manages everything at home, especially when I am away filming. During “Fiqir Eske Meqabir,” I was gone for four months, and she looked after our six children alone.

Best investment this year?

Buying a house.

What is your biggest fear?

Flying. I have acrophobia.

Which superpower would you choose?

[Laughs] I believe we live through the experiences we have. So, my ideal superpower would be the ability to experience anything without fear. Traveling to Gonder, for instance, I’d always prefer driving. Unfortunately, due to security concerns, air travel is often necessary.

To truly experience the world, I’d love to have Superman’s ability to fly. It would open up incredible opportunities for exploration.

What type of books do you enjoy reading?

Historical works, though I generally prefer watching movies.

What was the first movie that you saw?

China O’Brien, followed by Chain Reaction and Titanic.

If you could make a movie about an animal, what would it be?

A dog, because they exhibit many human traits.

Whose story are you most drawn to and would like to see adapted into a movie?

Temesgen Gebrehiwet’s story, as told in the book “Hiwete.”

Which production was the most difficult to work on?

“Sewnetua” was my toughest. “Adey” also posed big challenges. But that is part of filmmaking.

If you could invite two people from the film industry to dinner, who would they be?

Haile Gerima (Prof) — twice. I missed meeting him in New York for my film’s inauguration because I could not get a visa.

Who would you invite from outside the industry?

I would invite Emperor Haile Selassie because of his love for Ethiopia. I am amazed by the amount of love he had for Ethiopia and he consistently inspires me. His every action, from infrastructure projects to diplomatic endeavours, was driven by a deep affection for his nation. I can’t help but imagine a dinner with the last emperor of Ethiopia.

What cultural shocks have you experienced working in different parts of the country?

Where I grew up, carrying guns is normal, but in southern Ethiopia, seeing people with ‘gejera’ [machete] was shocking, and vice versa for them seeing guns.

 

 

 

Listening’s Quiet Power in a World of Noise Could Mend Broken Bonds

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Few would argue against the importance of listening. As Voltaire once wrote, “L’oreille est le chemin du coeur”—the ear is the way to the heart. Yet, we often respond passively, offering superficial acknowledgment instead of truly listening. We would rather have others listen to us, and the rise of social media has made it easier to demand only that. As a result, the world has become noisier.

Thoughts are expressed more readily, and shared more widely, yet people feel lonelier, and less connected. Whether it is the anxiety and uneasiness in one’s heart, the misunderstandings and estrangements among family and friends, or political conflicts, a lack of listening cannot escape sharing in the blame.

How long has it been since we stopped our busy steps and calmly talked with ourselves, listening to the true thoughts deep in our hearts?

In this bustling world, we are always in a hurry, busy catering to a multitude of external norms and expectations, yet often forget to pause and listen to the voice within. Every day, we speak countless words, in meetings, messages, and emails.

But, how many of these words express our authentic selves?

Very often, we either say things we do not indeed mean or, considering our environment, “rationally” divide our inner thoughts into what “should be said” and what “shouldn’t be said.” This makes it inevitable that our desires and preferences are regularly restrained and suppressed. On the one hand, we have to become like everyone else; on the other, we are somewhat reluctant to do so. As a result, we are afflicted with anxiety, nervousness, and hesitation.

The heart is like a treasure house, hiding our most genuine desires, fears, dreams, and passions. Perhaps, if we take a moment and listen, we can hear the soft whisper of the voice that has been covered up by our busy lives, yearning to pursue the projects we abandoned due to life’s demands, and burning to show our true selves without fear.

To be kind to ourselves starts with listening to ourselves. No longer blindly following the pace of others. Setting aside time for ourselves to be alone, feel the rhythm of our hearts, and let it guide our choices; resisting the urge to deny or escape when our hearts feel anxious or uneasy, but gently soothing them, exploring the roots behind those emotions and respecting our own feelings. Whether choosing a career we love or ending a relationship that drains our energy, the comfort and peace of our hearts deserve their due priority.

Everything is constantly changing. Heraclitus said we cannot step into the same river twice,  and even if the river remained unchanged, the person stepping into it would not. Relatives and friends once close to us will inevitably develop ideas that collide with ours, partly due to differences in our lived experiences as time passes. It is not uncommon that people become estranged from their parents and relatives, or part ways with friends because of differences in opinions, which fills what should have been beautiful stories with regrets.

Often enough, the root cause is a failure to listen. Listening to those we care about is vital for maintaining strong emotional bonds.

When loved ones share their experiences, attentive listening is the most precious gift we can give them. Listening to our parents talk about the past, we can find wisdom and hope in their stories. Our genuine attention makes them feel respected and cared for, and the family bond becomes stronger. When friends confide their concerns to us, whether about troubles in relationships or problems at work, silent listening may calm their hearts better than any words of comfort.

By listening, we offer them emotional support, letting them know they are not alone.

The United States (US) witnessed an astonishingly absurd election season, marked by an alarming level of political polarisation. Democrats and Republicans are deeply entrenched in their respective positions, leaving little room for compromise. In Congress, legislative deadlocks are commonplace, as lawmakers from both parties prioritise partisan interests over the common good. This is especially evident in issues such as healthcare, immigration, and climate change.

At the societal level, the public is also divided along political lines. People with different political views increasingly find it difficult to engage in rational discussions.

Political polarisation is not a uniquely American disease. It is a global one that has afflicted societies and strained democracies from Brazil to Germany, and Tanzania to Bangladesh. It often feeds on the words and actions of divisive leaders and infects the whole body of society, all the way down to everyday interactions and relationships. Once entrenched, polarisation tends to perpetuate itself, and there are no easy remedies. What is an effective remedy depends on local context, with legal reforms being called for in some places, and changes in political leadership in others. Although the problem is complex, listening is certain to be an essential part of its solution.

Politicians, policymakers, and the public need to actively listen to the concerns and perspectives of those with opposing views. When politicians listen to each other, rather than simply dismissing the ideas of their political rivals, they can better understand the underlying reasons for different policy positions and strive to find common ground. Encouraging the public to listen to diverse viewpoints can help break down barriers, and promote a more informed electorate that is able to make decisions based on a comprehensive understanding of the issues, rather than being swayed by partisan rhetoric.

By promoting a culture of listening at all levels of society, including the government, media, educational institutions, and the citizenry, we can hope to bridge political divides and move towards a more united and harmonious future.

As we bid farewell to the old and usher in the new, opening the door to a hopeful 2025, let us commit to listening – to ourselves and others.

DREAMS BETRAYED, TRAFFICKED, ENSLAVED

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A 25-year-old civil engineer graduate left for Thailand in September 2023, lured by the promise of a high-paying digital marketing job. He had struggled to find stable employment after graduating in 2021, bar a temporary stint as a math teacher that paid him a paltry monthly salary of 3,500 Br. It compelled him to rely on his farmer parents for rent. When a friend from the university touted a seemingly effortless online business opportunity in Thailand that could pay 60,000 Br a month, he seized what felt like a lifeline. Upon arrival in Bangkok, the promised job never surfaced. Instead, he found himself stranded, waiting for days until the same friend sent someone to escort him into Laos. There, he was made to sit through a test for what he believed was an online marketing role, but discovered, to his horror, that he had been recruited into a scam operation. For two months, he endured extreme working hours without pay, tasked with conning social media users. When illness struck, the job’s organisers begrudgingly took him for medical attention in Thailand, only to have him abducted at the airport and trafficked back to Laos and then into Myanmar.

In Myanmar, the young man was detained for 12 days, subjected to electric shocks, and told he owed 5,000 dollars for his release. Unable to produce the ransom in full, his relatives scraped together 2,500 dollars, forcing him to face the threat of 18 months of unpaid work. Exhausted and broken, he was eventually allowed to return to Ethiopia. Today, he is hobbled by debts exceeding 350,000 Br, lingering physical pain, and haunting memories of captivity. He is not alone.

The United Nations (UN) estimates that more than 120,000 people are enslaved in cyber-fraud operations throughout Myanmar and Laos. A parent-led committee in Ethiopia has documented at least 270 individuals held against their will in those countries and Cambodia, but they fear the actual number might be closer to 3,000. Many are college graduate men and women, including medical doctors, who left Ethiopia seeking better prospects but were seized by traffickers operating in the “Golden Triangle,” a hotspot for the scams near the borders of Myanmar, Thailand, and Laos. Families of those held captive describe relentless torture, gruelling 16- to 18-hour work days, and heart-wrenching isolation. They speak of phone confiscations, punishing quotas for defrauding social media users, and prolonged confinement in dark rooms for those who fail to meet targets. Despite raising awareness and repeatedly submitting names to the Ministry of Foreign Affairs, many families remain stuck in perpetual anxiety, powerless to rescue their loved ones from militia-controlled territories beyond the reach of the Myanmar government.