In a landmark move to promote gender equity in the banking industry, the National Bank of Ethiopia (NBE) has released its inaugural Gender Financial Inclusion Index, positioning Enat Bank at the forefront. Among 30 commercial banks evaluated, Enat Bank emerged as the sole financial institution to attain a “transformational” rating, outpacing competitors in a field where most lenders remain at early stages of integration. The five-tier composite index, developed by the Central Bank as a benchmarking tool, rates banks across dimensions such as leadership commitment, product innovation, credit accessibility, data transparency, and organisational policies targeting women’s financial participation. While three other banks received recognition for progress, the industry’s average settled at 2.95, categorising the majority within the “Building Momentum” tier, a midpoint demonstrating nascent but incomplete commitments to inclusive banking practices.
Enat Bank’s performance stood out not only for scoring highest but also for its structural and cultural alignment with gender equity principles. Founded in 2008 with a mission to empower women economically, Enat Bank has since issued over 1.4 billion Br in non-collateral loans to women-led enterprises, contributing to the creation of more than 22,000 jobs. According to reviewers, the Bank’s operational ethos integrates gender inclusion at every level, from its boardroom, where Chairperson Meaza Ashenafi, a former president of the Supreme Court, provides strategic oversight, to front-line services geared toward underserved female entrepreneurs. The symbolic weight of the achievement was observed during a celebration at the Addis Abeba Hilton on June 19, 2025, where former President Sahle-Work Zewde joined Enat Bank President Ermias Andarge and other board members for a toast marking the milestone.
Around 5:00pm, a time when most civil servants spill out of office towers and scramble for rides home, Mexico Square was oddly hushed.
On Mozambique Street, in the Genet Hotel area, only a few battered blue-and-white minivans nosed into the curb, leaving long queues of commuters staring at the empty road and the lowering sun. A man in fresh orange-and-blue uniform, a facilitator, and two transport officers, strolled past the waiting crowd, offering little comfort to fraying tempers.
Adnan Arfano, in his early 20s and juggling school with a sales job, stood at the head of the line bound for Mexico Square from the Haile Garment district. He has learned the choreography of the city’s unruly taxi ballet on the Piassa-Megenagna-Ayat corridor, but lately the rhythm is off.
“Sometimes it’s a stampede, people run, elbow their way through,” he said. “And, the new line facilitator stands there, fixated on collecting money from the driver.”
He never saw it this way before. The fix, he argued, was better staffing at busy transfer points and facilitators who do more than guard their commissions.
“The changes are a good idea, but they need teeth,” said Adnan, one of the approximately 1.43 million commuters in the capital who depend on minibus taxis, which cover 80pc of the demand. “When there is no one watching, people cut in line and take others’ seats.”
Commuters who rely on public transport represent 31pc, doubt the size of the city population that uses a personal vehicle. Aside from the city bus services and nearly 400 midibuses, approximately 9,000 minibuses operate in the city, with 3,000 of them being Code-1 coloured in blue and white.
For decades, the capital’s 14-seat mini-buses were marshalled by a loosely governed army of line facilitators, known locally as “Tera Askebari”. The arrangement gave work to thousands but annoyed passengers and officials who complained about chaotic dispatching and persistent side payments.
According to Yabibal Addis, head of the Addis Abeba Transport Bureau, talking to Addis Media Network said the city finally decided to reboot the system. Officials wanted to change the old setup where every place a taxi passed was treated as a terminal, and a facilitator was assigned there.
That practice produced 197 terminals and more than 3,600 facilitators, one for roughly every half-block on some routes. Drivers paid a fee at almost every stop. On a short route, a driver could charge at least 20 Br or 40 Br for a round trip.
“That was a burden,” said Nuredin Ditamo of Nib Taxi Owners’ Share Company.
However, the city officials’ plan to administer could be radical, limiting facilitators to the first and last stop, slashing recognised terminals to 87, thereby trimming the workforce to 996.
Each enterprise received a two-year permit. The Bureau also replaced cash with a digital payment of 10 Br per trip, routed through Siket Bank, a financial institution that morphed from the Addis Abeba Credit & Saving Institute, which was under the city administration.
The cut is pre-programmed: 20pc to city coffers, 30pc to future sector projects, and the rest to facilitators’ wages.
“Facilitators can only remain on this job for two years,” said Yabibal. “They must move on to growth-focused sectors henceforth.”
While the new system promises opportunity, it has displaced many.
Biniam Getu, once a familiar face helping commuters at Mexico Square, now spends his days on a spiritual retreat in a monastery after losing his job to the city’s overhauled transport facilitator system. The former member of the Tigat Facilitators Union still clings to a promised three-month training program that he hopes will teach him skills such as welding or woodworking.
“We submitted our request and are waiting,” he said.
Biniam’s troubles deepened when Girmachew Sileshi, chairman of the Addis Abeba Taxi Facilitators’ Union, left the country. Repeated attempts by the Union to secure a meeting with the Mayor’s office were turned away.
“We’re told our union isn’t recognised and advised to approach our District,” Biniam said.
However, that coordination fell apart in the chairman’s absence. Some displaced workers have drifted back to their former curbs, hoping to scrape together the 200 Br to 300 Br, a fraction of what they once earned daily. Newly hired facilitators toil through entire shifts but are paid only after digital reconciliation, rather than up front, the way veterans were.
Getu complained that the newcomers do not know the streets and show little care for the elderly or pregnant commuters. He also claimed thefts have risen while many former facilitators struggle to feed their families.
City officials counter that the reforms seek to create lasting opportunity.
Feyissa Feleke, communications director at the Addis Abeba Labour & Skills Bureau, outlined a training initiative intended to steer displaced facilitators toward new trades and small business ownership. To qualify, applicants are required to prove their residence with a Kebele ID, register on the Labour Market Information System, and submit their biometric data. Accepted trainees attend courses at institutions such as General Wingate and Entoto Polytechnic Colleges.
“We make sure applicants aren’t those who already built up sufficient capital to start a business on their own,” Feyissa said.
Some participants have already completed their training, and most newcomers choose to pursue trade skills. Current facilitators nearing the end of their two-year contracts will receive a shorter, five- to 15-day course tailored to their next field of work.
“The ultimate aim is not just income generation,” Feyissa noted. “We’re working toward real economic empowerment and long-term employment opportunities.”
Trainees should set aside 30pc of their income in a mandatory deposit and are encouraged to build extra savings as a cushion for future ventures.
The policy has its academic supporters. Berhanu Zeleke (PhD), a lecturer in urban transport at Kotebe Education University, called the overhaul overdue. Replacing the old guard, he argued, makes room for fresh job seekers while contractual terms increase accountability.
“The contract system encourages facilitators to plan for their future,” he said, acknowledging past misconduct among some facilitators.
On paper, the new system looks clean. On the curb, it is sputtering.
One of these terminals is located around the Stadium, where Abraham Weldesenbet, a slight facilitator in a crisp uniform, paced between vans last week, scribbling plate numbers in a dog-eared notebook. Stars marked those that had paid, but taxis often pulled away before he reached them.
“It’s so frustrating,” he told Fortune, shoulders sagging.
The outfit has 13 members for one of the busiest junctions in the city, a ratio that leaves him alone during rush hour.
By 10am, he had logged about 40 vehicles. Only a handful carried the multiple stars, showing they had settled their fees.
“The system is nonexistent,” he grumbled.
Amelewerk Megeressa, a traffic coordinator in the area, confirmed the shortage.
“There are students and workers in long queues,” she said.
Some drivers, fearing phone theft, refuse to use the mandatory app; others do not own a smartphone.
“There should be someone designated to help facilitate the payments,” she said.
Indeed, the citywide shift to electronic fare collection has opened a digital divide.
Abraham Haika, who shuttles between Stadium and Qality for the Kirkos District Taxi Association, acknowledged that the new facilitators are learning.
“They’re getting used to the job,” he said. “There is no conflict between us. They help manage queues and even direct passengers when needed,” he said.
For him, the hitch is the network. It takes too long, connections are slow, and many drivers lack compatible devices. However, intermediaries sense an opportunity. Since the government mandated digital fuel purchases two years ago, young hustlers have offered to run transactions on old Nokia phones for a fee.
“It’s the same problem all over again,” Nuradin from the taxi association told Fortune. “These middlemen are turning it into a job.”
The price to work with the intermediaries is a five Birr premium over the 10 Br fee the city imposed, which they pocket after making the transfer.
Officials concede the rollout is bumpy. The flat charge could be set to stop facilitators from quietly shifting taxis to longer routes and demanding higher cash tips. But, fixing the bug is underway by software developers.
“These issues are being evaluated daily,” Yabibal confirmed.
Siket Bank’s early versions of its system required drivers to key in a 13-digit account number, an ordeal on analogue handsets. The Bank responded by introducing a four-digit short code system, from 1001 to 1087, each representing a specific terminal enterprise. The Bank works with Ethio telecom’s Telebirr, a platform that drivers already use to pay for fuel, although transfers from 32 banks are also possible.
Messay Woubshet, Ethio telecom’s communications chief, denied any exclusivity.
“Siket’s system is simply integrated into the Telebirr app like the systems of 28 other banks,” he told Fortune. “Drivers use the ‘transfer to bank’ feature within the app to make payments.”
Most glitches, he said, are cleared within a day.
“If a transfer takes time, it is usually resolved within 12 to 24 hours,” said Messay. “In rare cases where it takes longer, we apologise and follow up directly with the affected parties.”
Facilitators on the ground say they improvise. Some drivers with no Telebirr account still pay cash. According to a facilitator who requested anonymity, they accept the fees when drivers return from their trips.
“We only want to help people get where they need to go,” he said while pocketing coins. “But, people criticise every detail.”
He recalled the time a passenger shot video of a cash hand-off, an offence that can bring a fine of 5,000 Br to 10,000 Br for both parties.
Those penalties are spelt out in a sweeping regulation that covers everyone involved, from taxis and terminals to facilitators, the Ministry of Labour & Skills, the Peace & Security Administration Bureau, as well as the drivers’ associations. Enterprises should register, open two bank accounts, and submit quarterly reports to the authorities.
Working without an ID or the required uniform draws a 10,000 Br fine and instant dismissal for repeat offenders. Members who stir up trouble face 5,000 Br on the first strike and 10,000 Br on the second; enterprises employing workers caught drinking, smoking, or using substances such as Khat risk both fines and loss of permits. Drivers involved in disturbances pay 1,000 Br.
City officers can pull plates from individuals who are chronic offenders.
Officials want these changes in public transport management to fit into a bigger corridor project to modernise the capital’s transport arteries with new lanes, electric buses, and bicycle paths.
Dagnachew Shiferaw, deputy head of transport operations, argues that the Addis Abeba City Bus Service Enterprise moves 1.1 million people daily without line facilitators.
“That proves structure and respect can do the job,” he told Fortune. “We don’t need more personnel. What we need is stricter monitoring and consistent penalties.”
A live dashboard tracking the city’s new Velocity electric buses, passenger counts, fare mix, and location is displayed. The city now has 81 terminals and 85 enterprises, with more than 100 staffed locations, although some lack formal structures. Thousands of students and unemployed youth volunteer during rush hour after completing a seven-day course that covers financial literacy, discipline, and public safety.
Back on Mozambique Street, another dusk settles over a line of weary commuters. The sun was gone, the crowd thinned, and Adnan still waited for a taxi. A facilitator waved down an empty van, but the driver rolled past, horn blaring. Change is coming, city officials insist, but for riders like Adnan, the road home feels longer than ever.
Many of the holdups are low-tech. Drivers cling to basic phones because smartphones are more prone to theft. Punching a 13-digit account number on a tiny keypad is slow; one mistake means starting over from scratch. Siket Bank’s engineers promise a more straightforward menu and a QR code option, but that will require sturdier handsets than most drivers trust themselves to keep.
Road tweaks are coming, too. The corridor project bundles taxi reform with resurfaced asphalt, wider sidewalks, bicycle lanes, marked crosswalks, pocket parks, and designated parking bays. Officials pitch it as a package: digital payments to clean up the money, and physical investments to clean up the streets.
Even supporters concede the early days feel messy.
“The benefits are ultimately for the drivers themselves,” said Berhanu, teh lecturer, urging patience. “Transport is the lifeblood of a city; change never arrives as fast as the traffic light turns.”
Though he believes those who showed dedication deserved better recognition, he sees the broader changes. New transit hubs and digital payments are steps worth the temporary inconvenience.
Officials of the Ministry of Urban & Infrastructure have tabled a draft regulation they believe will restore public trust and tighten fiscal discipline.
Unveiled at the “2025 Ethio Real Estate Summit” on June 14, 2025, at the Sheraton Addis, the draft comes amid a storm of pent-up demand, rising costs, and widespread financing dysfunction. It coincides with the launch of the Ethiopian Real Estate Developers Association (EREDA), now positioning itself as both a stakeholder and a pressure group in the evolving regulatory landscape.
The regulation, if approved, will be a sweeping move to rein in an opaque and underregulated real estate market. It is a presale-tiered finance framework designed to restrain the speculative use of buyer advances.
Developers who secure more than 80pc of project costs from presales will be compelled to provide a 20pc loan guarantee. Those with presale receipts between 50pc and 80pc will be required to present a bank guarantee and commit one-fourth of the total project cost as a disbursed loan.
For underfunded projects below the 50pc mark, the draft imposes the heaviest restrictions, including CFO-backed guarantees and stringent disbursement limits. Only 30pc of the construction funds may be accessed, with half of which is withheld until 20pc of the construction is verified.
The regulation mandates escrow accounts co-managed by developers and buyer representatives, echoing international practices that insulate buyers’ funds from potential misuse. Disbursements tied to construction milestones should be reported to banks within two weeks, while project infractions, ranging from unauthorised presales to misleading marketing, could invite stiff penalties, including fines of up to one million Birr and permanent license revocation.
However, the rollout is already encountering industry headwinds.
Alemayehu Ketema, president of the newly formed Association and a veteran developer, warned that the proposed financial guarantees risk inflating housing costs rather than curbing developer risk.
He criticised the draft for lacking flexibility in its treatment of fluctuating input costs, VAT computations, and cost pass-throughs in partially completed housing units.
“Without government backing to lower operational costs, especially land lease fees and the price of imported materials, housing will remain unaffordable,” Alemayehu told Fortune, on the sidelines of the draft’s presentation at the Summit.
Alemayehu also lobbied for exemptions for smaller-scale projects under 6,000Sqm, along with revised procedures for modifying site maps in near-completed projects.
The Association is not merely pushing back. It is also actively repositioning. Its Secretary General, Kedir Seid, announced plans to establish a headquarters and engage the state-owned Ethiopian Investment Holdings in bulk-import arrangements to lower input prices and sidestep foreign exchange bottlenecks.
Letters of credit, long seen as a choke point, have become a primary industry grievance.
“Bulk importing will give us stronger negotiation power,” Alemayehu said.
Officials appear receptive but cautious. Tsegaye Moshe, an advisor at the Ministry, disclosed that eligibility for discounted land leases in Addis Abeba has been relaxed, from a 10,000-unit threshold to 2,500 units, in a bid to attract affordable housing projects. Areas under the Industrial Parks Development Corporation (IPDC) are now obliged to build a minimum of 500 units, and presales for joint and fractional ownership structures have received formal sanction.
A liberalisation move permits foreign investors to own up to 49pc of real estate projects through joint ventures, conditional on capital inflows being denominated in foreign currency. These arrangements are expected to support technology transfer and skills development, while fully compliant domestic developers are expected to benefit from land grants and duty-free status, even outside public-led housing initiatives.
The regulatory recalibration arrives amid a profound urban housing shortfall. Ethiopia’s urban population has surged by 160pc over the past 15 years, with Addis Abeba alone needing nearly 1.2 million housing units. While the World Bank projects a national need for 486,000 homes annually, completions hover around 165,000. Private developers have contributed only 21,000 units over a decade, dwarfed by the government’s condominium scheme, which has registered over one million units but handed over only 384,000.
Soaring prices and limited mortgage access unveil this undersupply.
A one-bedroom condominium now commands 1.1 million Br, while two- to three-bedroom units fetch as high as nine million Birr. Compounding the problem is the exponential growth in construction costs, which are now 43 times higher than they were 25 years ago, far outpacing the fivefold increase in public salaries. With only four percent of private housing financed through formal bank loans, informal credit continues to dominate.
Stakeholders like Meseret Mekonen, CEO of NMC Real Estate, bemoan a credit environment steeped in aversion. Despite delivering 1,000 homes, Meseret failed to secure a two billion Birr loan for an 11.5 billion Br project.
“I approached 10 banks,” she said. “None were confident enough to lend. I’m building entirely using my own resources.”
Others echo her frustration. Zinabu Tebeje of Africon Group dismissed assumptions of 300pc profit margins, attributing pricing pressures to rising input costs rather than developer profiteering.
Zinabu estimated that land and labour alone account for half of a project’s cost structure, further squeezing margins.
“Housing prices have remained stable for the past three years despite rising construction costs,” Zinabu said.
In an environment where soft loan facilities are scarce and long-term mortgages remain commercially unviable, many developers are calling for bolder policy intervention. These include subsidised interest rates, free land allocations, and duty-free import status, particularly for developers meeting affordability benchmarks and sustainability metrics.
Yet, regulatory opacity remains a concern. The rules surrounding fractional ownership are still ill-defined, and developers fear double taxation under certain private partnership structures.
For Leul Dereje, a veteran consultant, the proposed presale collection threshold needs a clear definition, especially in a market increasingly oriented toward semi-finished units. He also warned that a looming 10pc fuel price hike could further erode already thin margins.
“Long-term mortgages are unprofitable, and real estate loans are widely abused,” he told Fortune, citing banks’ reluctance to extend tenors.
The draft’s strict disciplinary measures, he argued, should be matched with reforms that promote liquidity and clarify contract enforcement.
“The blocked account mandate benefits banks more than builders,” Leul said. “We need fund release schedules better aligned with real construction milestones.”
Still, the Ministry remains firm on its long-term objectives, localising 70pc of construction inputs within a decade and drafting a separate housing finance proclamation to build out the moribund mortgage sector. The broader goal, according to Tsegaye, is to root out speculative excess while enabling a robust, transparent, and scalable housing market.
Debebe Seifu serves as the finance director of the Association and the general manager of Jambo Real Estate & Construction. He wants to see the upcoming regulation to target the legal uncertainties that enable fraud under rigid compliance regimes. He urged more straightforward guidelines on fractional ownership and private partnerships to enable “a level playing field.”
However, as the regulation winds its way through consultations and revisions, the balancing act between protection and productivity has only just begun.
A sudden ban on the importation of semi-knockdown and completely knockdown kits for gasoline-powered vehicles, a move authorities say rapidly accelerates a shift toward electric mobility, has left a burgeoning industry disoriented.
For the domestic assemblers that produced roughly 21,800 vehicles last year, including more than 2,000 electric units, the edict landed without warning. Many had been operating lines dedicated to gasoline kits, supported by bank letters of credit and a predictable import regime.
For Mintesnot Tessera, general manager of Belayab Motors, one of the 14 assemblers active in the market, the authorities “never provided” a firm timeline, although he had seen a sign about a potential ban.
Effective May 15, 2025, the measure allows only electric, hybrid or ambulance kits to enter the country. According to officials of the Ministry of Industry, the policy move forms part of a broader, 10-year strategy to phase out gasoline cars, develop local technical skills, curb mounting fuel import bills and tackle worsening pollution in Addis Abeba and other cities.
However, the abrupt cutoff has thrown manufacturers and buyers into uncertainty, an outcome policymakers are now scrambling to manage.
“A clear transition period would have allowed the industry to adjust,” Mintesnot told Fortune.
Until May’s announcement, assemblers like Multiverse Enterprise Plc had mapped out plans for new diesel and electric taxi models. Multiverse, which had partnered with the Defence Engineering Industry Corporation (DEIC) to assemble 5,000 vehicles, relied on a down payment of roughly 1.5 million Br for a five million Birr diesel package. Under the new rules, electric taxis now carry a sticker price of 8.5 million Br with a 2.5 million Birr down payment, an increase many drivers cannot absorb.
“For almost all drivers, this amount is financially out of reach,” said Nuredin Ditamo, chairperson of the Blen Taxi Association. “Desperate operators had hoped for state support or trade-in programs to cushion the blow.”
In addition to the financial shock, infrastructure shortcomings pose another obstacle to rapid electrification. Charging stations remain scarce outside of Addis Abeba, and most current installations offer slow charging. Field vehicles used in remote regions, typically double-cabin pickups, often lack electric versions with the necessary range or payload capacity.
Semereab Serekeberhan, deputy board director of the Ethiopian Automotive Industries Association, applauded the green push but urged policymakers to allow exemptions for specialised vehicles until viable electric alternatives are available.
“We’re not informed ahead of time,” he said. “Without exemptions, critical services could be disrupted.”
The policy has also strained financing channels. The Commercial Bank of Ethiopia (CBE), the largest state-owned lender, has declined to open letters of credit for gasoline-based kits since the ban on such transactions was implemented.
According to Seid Negash, who heads Multiverse’s import operations, banks are concerned about the risk of importing now-prohibited items. The abrupt tax and customs changes have also compounded liquidity pressures. With no formal grace period for existing inventory, assemblers have faced the choice between writing off assets or scrambling to retool facilities for a product line in which the domestic market is still nascent.
On June 9, the Ethiopian Customs Commission issued instructions to its regional offices, mandating stricter inspection protocols and designating that any attempt to import kits not allowed will incur penalties equal to twice the vehicle’s value, along with forfeiture. According to Yonas Teklewoled, head of the Commission’s operations division, detailed declarations and rigorous oversight are essential to enforce the ban.
“We remain aligned with the policy’s goals,” he told Fortune. “But, explicit directives are important to ensure smooth implementation.”
Within the Ministry of Industry, officials are racing to fine-tune technical guidelines and policy frameworks. Tilahun Abay, strategic affairs executive, acknowledged the need for a “reasonable adjustment period” to train workers and allow existing gasoline kits, many of which benefited from prior government support, to clear customs.
The Ministry plans to convene affected parties for a series of meetings to address issues and roll out financial and administrative incentives for local electric vehicle (EV) assemblers.
Still, analysts warn that rolling out ambitious green policies without commensurate infrastructure and regulatory certainty can backfire.
Bereket Tesfaye, an EV consultant and general manager of Circular Nexus Consulting, praised the government’s environmental objectives but cautioned that the country’s grid remains fragile and that trained technicians are in short supply. He urged the authorities to study the staged approach used in countries like Norway, where incentives for early adopters and careful sequencing of charging-network expansion accompanied gradual phase-outs of gasoline vehicles.
“Policy must be anchored in real-world constraints,” he said. “Without meticulous planning, we risk creating new problems while failing to solve existing ones.”
Mufariat Kamil, minister of Labour & Skills (MoLS), is rewriting the rules on overseas work, hoping to export skilled labour rather than being limited to housemaid services.
A bill her experts have circulated would let fully foreign-owned outsourcing agencies operate in the country and launch in the maritime trade, where her officials want Ethiopia, though landlocked, to supply crews to world shipping lines. The Ethiopian Maritime Training Institute S.C. (EMTI), in partnership with Bahir-Dar University, graduates more than 500 marine engineering and electro-technical officers each year. Its executives want to see this figure doubled.
The Ethiopian Manning Agency GmbH places graduates with established carriers, transforming classrooms in the Amhara Regional State into a talent pool for vessels thousands of miles away.
The bill encourages foreign agencies that can train workers and secure placements, a step Mufariat and her officials believe is needed, as experienced local agents are scarce. The measure also shifts labour-export policy toward jobs that require credentials, starting with seafarers but designed to extend later to other skilled occupations.
The existing law, written mainly for housemaids bound for the Gulf countries, left professionals such as officers and engineers out in the cold. When the Ministry assumed the mandate of overseas employment, it began drafting a replacement, hoping to curb illegal brokerage and murky fees through a central labour market information system and stricter oversight. Close to 92pc of the 521,000 workers sent since 2023 have passed through this system.
“The draft law introduces major changes to the outsourcing of Ethiopian workers,” said Sitina Mengistu, a legal adviser at the Ministry.
Under existing rules, agencies cannot send workers abroad unless Ethiopia has a bilateral deal with the destination country. The bill would permit outsourcing through Ethiopian consulates, even in the absence of a bilateral agreement. It also lets the Ministry work with foreign companies to train and certify labour that could later be hired overseas.
“We’ll work out the details during implementation to ensure it complies with conflict-of-interest rules and allows qualified foreign maritime agencies to operate here,” she told Fortune.
Money is where the draft bites. Employers should pay for contract authentication, but workers still bear the costs of passports, police clearances, birth certificates, and training. Agencies would need capital of five million Birr to 20 million Br and are required to park bonds of 50,000 to 250,000 dollars in blocked accounts, thresholds that rise with the license class. Those funds cannot be drawn down for day-to-day expenses, removing an incentive that agencies previously leveraged to secure credit or earn interest.
However, the deposit required unsettles smaller outfits such as Bereka, an Addis Abeba-based agency that mainly places housemaids, drivers and occasional hairdressers. Its managers say they lack the cash for a lump-sum deposit.
“We want to send skilled labour to foreign employment,” said Mohammed Awel, a founding shareholder. “If the Ministry makes things possible, we want to be part of it.”
However, he feared that the blocked-account rule was a burden the firm could not overcome.
Resistance is spreading inside the Ethiopian Overseas Employment Agencies Federation. Its members have discussed the issue twice.
“Most agencies opposed its core ideas,” said Seid Ahmed, the group’s public-relations head and a board member.
Seid faults the bill for omitting crisis-management plans for natural disasters or diplomatic rifts and questions whether many companies can afford the annual renewal fees or the value lost on the deposit that earns no interest.
“This could severely damage the sector,” he said, warning that up to 80pc of agencies could close if the thresholds stand. “We play a crucial role in generating foreign currency income.”
According to Aseged Getachew, an economist by training and former state minister for Labour, local firms rarely recruit directly. Instead, they sign deals with foreign partners and earn commissions of about 900 dollars a worker, an amount that often drops to 500 or 600 dollars when they chase volume.
“It’s a volume game,” he told Fortune. “Sometimes, you’ve got to compromise to stay in the business.”
Aseged sees upside in letting established maritime agencies to run operations in Ethiopia, arguing that trained officers could boost foreign-currency earnings.
“We’ve the workforce, and with the right channels, we can become a key player in the global maritime labour market,” he said.
Still, he finds gaps. The bill does not say which local agencies may focus on skilled labour, and none now do. He also fears the quarter of a million dollars in deposits will deter most players and leave the field to a few well-funded firms. Without clearer tiers, he warned, larger companies might encroach on roles intended for smaller ones.
“Unless these barriers are reconsidered, we risk locking out the very actors who’ve kept this sector alive,” he warned.
Officials say they will listen, and the bill remains open for comment. Federation members are drafting counterproposals that lower bond levels, stagger renewal fees, and outline how to rescue workers in the event of a war or pandemic. Employers, meanwhile, are crunching numbers to see whether higher service charges can offset the tougher rules.
Loading your updates...