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Author: Digital Editor

Making Sense of the New Global Economy

Posted on by Digital Editor

As the world becomes more volatile and confusing, policymakers, business leaders, and investors will need to rethink the mental models they use to analyse the global economy. Specifically, they should pay attention to three structural dynamics that are altering the global landscape: capital flows, demographic shifts, and political ideology, which are ushering in a more fragmented and siloed world.

Changes to capital flows are driven largely by regulatory requirements (such as the US ban on investments in China) and investors’ pursuit of new opportunities for higher returns across sectors and regions. The United States currently represents nearly 70pc of stock-market capitalisation worldwide, attracting more than 70pc of flows into the 13 trillion dollars global market for private investments, which include equity and credit. This is true despite the recent sell-off.

The US stock market is where investors can generate the most attractive returns, as the US is a global leader in innovation with broad, liquid, and deep capital markets.

But global debt has reached 237pc of world GDP, raising concerns about who owns outstanding liabilities and the extent to which there is hidden leverage in the global financial system. The US government alone owes 36 trillion dollars (or 124pc of GDP), a large proportion of which is held by China, with which relations are strained.

Hidden leverage and the shadow banking sector’s debts could become a problem. According to S&P Global, shadow banks held 63 trillion dollars in financial assets at the end of 2022, representing 78pc of global GDP. And, further analysis has also shown that in 2024, shadow banking accounted for 70pc of US mortgage origination and leveraged lending. Investors and business leaders will need to ask themselves who holds what debt, and where debt obligations and major pools of financial leverage may lie.

The second big worry concerns demographics. The global population continues to grow at a rapid clip, with the United Nations (UN) forecasting that there will 11.2 billion people by 2100, up from 8.1 billion now. Already, almost 90pc of the world’s population lives in poorer emerging markets, and economically poorer regions – such as Africa, India, and the Middle East – are projected to experience population growth at or above the replacement rate of 2.1 children per woman.

Thus, these regions will continue to skew younger. Across Africa, 50pc to 60pc of the population is below the age of 25, compared to only 20pc across the OECD.

Other countries are aging rapidly and registering lower birth rates, with forecasts for Europe and China pointing to marked population declines. According to Eurostat, the European Union’s population is projected to peak at 453.3 million in 2026, before gradually decreasing to 419.5 million by 2100. According to UN data, China’s population is expected to decline below 800 million by 2100, from its current level of 1.4 billion.

Such trends have far-reaching implications for global demand and production across a wide array of commodities such as foodstuffs and energy. For example, India, with its large, poorer population, is still heavily dependent on coal and fossil fuels, as compared to renewables.

Demographic changes will also alter financial portfolios as aging populations switch from being capitalists (willing to take on risk) to rentiers (desiring stable, predictable fixed incomes). But markets will also have to calibrate for unprecedented intergenerational wealth transfers from baby boomers to millennials. Cerulli Associates estimates that this could amount to 84 trillion dollars by 2045.

Finally, the ideological splits across countries and regions should be factored in. The breakdown of multilateralism and the fragmentation of trade, capital flows, migration, and ideas are all being priced in, and policymakers and business leaders will have to keep these trends in mind. America’s largest multinationals still generate more than half of their revenues outside the US. But they now need to consider what strained US alliances and traditional trading relationships will mean for their businesses.

For business more broadly, deglobalisation has forced a shift toward more centralised procurement, hiring, and trade in goods and services. It is also jeopardising carry trades (borrowing cheaply in New York and London to invest in higher-yielding regions) and making it harder to repatriate profits.

In the near term, the Trump administration’s tariffs and deportations could affect salaries and fuel higher inflation in consumer goods, wages, and prices across sectors. Higher inflation, moreover, will likely drive up the cost of capital, which could suppress business investment. Over the long term, deglobalisation and technological advances – such as AI and quantum computing – will further entrench today’s ideological splits.

Geopolitical fissures have already raised big political questions. There is a tug of war between state capitalism and market capitalism, and over the reconfiguration of alliances and country groupings. New blocs, such as the BRICS+, are vying for global influence and seeking to circumvent traditional multilateral institutions. The BRICS+ countries already represent 45pc of the world’s population and 35pc of its GDP, and they are playing a growing role in the pricing and trade of many internationally traded goods and commodities.

Such developments are making it harder for countries to achieve global alignment; even previously celebrated efforts like the United Nations Climate Change Conferences have been hobbled.

As global growth slows, trade, finance, religion, energy, AI, and immigration are all being weaponised, leading to much greater complexity that will make it harder to anticipate policy outcomes. As a practical matter, added complexity and reduced visibility will likely shorten the time horizons for crucial decisions about allocating capital and human resources.

Rather than looking five years ahead, typically assumed to be the length of an economic or business cycle, investors, business leaders, and policymakers may need to think more in terms of the next 18 months. Amid so much volatility, decision-makers will have to focus on adaptability. No one can afford to commit to long-term strategies based on regulatory, geopolitical, or economic conditions that might change overnight.

The Global South Should Rewrite Climate Script on Its Terms

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When climate change is framed as a global problem requiring collective regulation of greenhouse-gas emissions, developing-country governments see little reason to prioritise the issue over others. After all, the rich, industrialised countries that contributed disproportionately to the problem are themselves backing away from decarbonisation and climate-finance commitments, while low-income countries bear the brunt of the costs of climate change.

Decision-makers in developing countries understandably conclude it may be more rational to hunker down and focus on climate resilience rather than emissions reductions.

But this is not the only way to frame the problem. While climate change undoubtedly poses a global collective-action problem, in practice, climate outcomes are shaped by myriad decisions concerning development objectives such as industrial development, urbanisation, job creation, and local pollution management. Because late developers often have not entirely locked into energy systems, transport infrastructure, urbanisation plans, and energy consumption patterns, they have greater flexibility to steer investment and consumption choices toward lower-carbon and climate-resilient options.

The climate challenge can be framed as a choice among alternative development pathways. In many cases, development choices are also climate choices. In a world where being a low-carbon economy confers a competitive edge, the absence of structural lock-in could be turned into an advantage.

Pursuing a climate-as-development approach is not easy or foolproof. It requires considerable state capacity, strategy-setting capabilities, and full mobilisation of the necessary technologies and finance. Importantly, it does not negate concerns about climate equity. Developing countries may opt to pursue the climate-as-development opportunity, but rich countries that disproportionately caused the problem remain on the hook to support this transition.

Yet, this perspective offers an alternative to the zero-sum framing of climate policy and a basis for nationally specific visions.

An important starting point is that elites internalise and support low-carbon development as a potential opportunity, with climate resilience as a necessary component. Climate objectives cannot trump development goals, but, equally, development innocent of climate considerations is no longer viable. To be politically feasible, any strategy should be rooted in the national context. Low-carbon development pathways are not easily replicable and need to be tailored to geography, local capacities, and other variables.

As with any long-term structural change, a durable, widely shared national narrative is needed as South Korea’s “green growth” in the 2010s serves a useful example..

Shifting from narrative and vision to policy and implementation requires high levels of state capacity. Technical capabilities, along with the ability to identify climate-as-development opportunities and sources of climate vulnerability, are necessary, but by no means sufficient. As sociologist Peter Evans’ analysis of East Asian industrial policy reminds us, the state should be simultaneously “embedded” to engage and support private-sector players, and maintain sufficient “autonomy” to avoid capture.

In practice, this means building institutions that can set the strategy, coordinate across sectors and at different scales, and provide trusted platforms to mediate conflict, ideally enshrined in law. All too often, climate policymaking is entrusted to relatively weak or siloed environmental ministries that cannot organise or enforce an all-of-government approach. Because broad structural changes can introduce distributional concerns and leave some communities behind, deliberative bodies, such as South Africa’s Presidential Climate Commission, can help to entrench low-carbon options by mediating social frictions and maintaining broad-based political buy-in.

Another major challenge for developing and emerging economies facing high capital costs is mobilising adequate finance for capital-intensive low-carbon development. There are no easy answers here.

According to BloombergNEF, global investment in the low-carbon energy transition in 2024 was only around one-third of the annual amount required through 2030, and there were wide disparities in spending. Developing countries have experienced few tangible gains from multilateral initiatives to scale up climate finance and reform the international financial architecture. Holding advanced economies to their financing commitments should remain a priority, but developing countries also need to mobilise more domestic finance and develop credible investment programs to attract global capital.

Recent efforts to create “country platforms” – government-led coordination mechanisms that articulate a vision and identify financing pathways to achieve it – suggest one way forward. In preparing to host this year’s United Nations Climate Change Conference (COP30), Brazil is seeking to lead the way with a comprehensive multisectoral development program to mobilise investment. Independent research suggests that Brazil has all the ingredients for a successful green industrial transformation: a strong resource base, a legacy of advanced manufacturing, and a large market.

Such models are worth exploring elsewhere, provided that they reflect a national vision, not donor-driven objectives.

One common criticism of nationally led, multi-objective development strategies is that the urgency of the climate crisis demands more direct action focused on emissions reduction, rather than on the indirect pathways suggested here. But this view ignores political reality. If climate action is seen to be at odds with other development objectives, it will lose. The only option is to devise strategies that can realise both sets of goals.

The most effective climate policy over the long term might be one that shapes structural choices about urbanisation and industrialisation, rather than one that focuses narrowly on regulating emissions.

With the scope for global cooperation receding in today’s fraught geopolitical environment, these arguments should not be interpreted as a call for atomization. On the contrary, developing national visions for low-carbon, resilient economies would benefit from mutual learning and enhanced coordination rooted in attention to local contexts.

Deploying low-carbon technologies will require investment in stable value chains, which depend on political and economic predictability. Developing countries, in particular, will have to be strategic and nimble in finding a niche for themselves. And the provision of finance at the necessary scale will still depend on a threshold degree of global cooperation.

But a domestically developed vision of a low-carbon, competitive, and resilient economy is the only foundation that can support all these elements.

Women’s Role in War Should Extend to Peace

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Despite all the progress that has been made toward gender equality globally, many are still tempted to view armed conflict as primarily the domain of men. Women often prove decisive in such settings, including combat, non-combat roles, and leadership positions. Nonetheless, they are routinely sidelined in formal peace processes and post-conflict governance. This pattern reflects a moral and practical failure.

During armed conflicts, women become more vulnerable to genocide, trafficking, slavery, and sexual violence, with all the associated health risks and psychological trauma. This alone earns them the right to participate in peace processes. But women are not only passive victims of conflict, as we have seen in Ukraine. They make profound wartime contributions on the battlefield, as well as in civil society and as advocates for peace.

In this sense, women often increase their agency during times of conflict, despite the risks they face. But when they are then excluded from peace negotiations and what follows – as is the case, so far, in Ukraine – these agency gains are reversed, with outdated gender norms reasserting themselves. This is especially true in conflict-affected countries with more entrenched patriarchal structures.

Legal frameworks promoting women’s inclusion in conflict resolution, peace-building, and post-conflict reconstruction have so far failed to turn the tide, owing partly to implementation and operational challenges. For example, United Nations Security Council Resolution 1325, adopted in 2000, “urges all actors” to increase women’s participation and “incorporate gender perspectives in all UN peace and security efforts.” However, as of 2028, the number of women signing peace agreements had not increased much.

This has important implications for the content and outcomes of peace agreements. In a recent study, my co-authors – Matthew Clance, Romuald Meango and Charl van Schoor – and I used natural language processing to examine the use of gender language (including words like man, girl, boy, her, his, female, male, wife, and daughter) in peace agreements reached between 1990 and 2023. We created a “gender bias index,” ranging from -0.6 to 0.6, with a lower score indicating lower use of gendered language and, thus, a reduced focus on gender-based outcomes.

None of the peace agreements we studied had a particularly high gender bias index, but even those that used more gendered language, which reflected a somewhat “positive” bias toward women, were not necessarily associated with marked improvements in women’s agency. Even frameworks that were gender-sensitive (acknowledging gender inequality) did not bring about meaningful change.

The problem is that mentions of gender did not accompany concrete requirements, let alone monitoring and enforcement mechanisms. For example, a peace agreement might advocate for increased women’s political participation, but include no targets to be met, and thus produce few, if any, results. This approach can even harm gender equality, by giving the impression that action is being taken when it is not.

Other studies show that peace agreements with disarmament, demobilisation, and reintegration (DDR) components rarely mention women. This compromises the post-conflict rehabilitation of women combatants, who might be excluded from the kinds of interventions aimed at their male counterparts.

Evidence shows that including women in conflict-resolution and peace-building processes leads to better outcomes for everyone. As a 2018 analysis found, there is a “robust correlation” between the inclusion of female delegates as signatories of peace agreements and the durability of the ensuing peace. Agreements signed by women tend to include more provisions focused on political reform, and boast higher implementation rates for such provisions.

In El Salvador, the 1992 agreement that ended the country’s 12-year civil war extended DDR benefits to women fighters, and included non-combatant female members of the opposition movement in reintegration programs. Women went on to play a stabilising role in reintegration processes and to make major contributions to reconstruction efforts. The communities that received more consistent, systematic support through reintegration and reconstruction programs made greater progress on gender equality and, ultimately, on development.

Similarly, in Liberia, women were involved in negotiations to end more than a decade of civil war in the early 2000s. Female representation in politics subsequently increased markedly, with Ellen J. Sirleaf in 2005 becoming the first female elected head of state in Africa.

The message is clear. Women should be included in all dimensions of any peace process, from designing, negotiating, and signing agreements to implementing post-conflict stabilisation and reconstruction plans. They should also have access to all relevant benefit programs, such as those related to DDR, as well as initiatives addressing gender-specific needs.

More broadly, peace processes should recognise and directly promote women’s agency. This does not mean paying lip service to women’s needs and contributions while relying on ambiguous language to minimise accountability. Rather, supporting women’s agency in making peace and forging the post-conflict future demands concrete, enforceable measures to uphold women’s rights and expand their participation in all forms of decision-making.

Tainted Trust Behind White Lies

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Milk has long symbolized nourishment, growth especially for young children. In many families, including mine, it is more than a dietary staple; it is a cornerstone of early childhood nutrition. So, when my husband and I recently transitioned our daughter from breastmilk to pasteurized cow’s milk, we did so with trust. Trust in the product, the manufacturers, and the system meant to guarantee its safety.

But what happens when that trust is misplaced? What if the milk meant to nourish quietly harbours substances that can cause lasting health damage?

At 15 months, like many parents, we turned to pasteurized cow’s milk. We avoided raw milk because of well-known bacterial contamination risks. We believed pasteurized milk was the safer choice. It became a daily part of our home, for drinking, cooking, and baking. That confidence shattered when reports revealed milk adulteration with dangerous chemicals like formalin and hydrogen peroxide is not just real but rampant in some supply chains.

Formalin, a preservative, and disinfectant primarily used in labs and mortuaries, is not something anyone expects in a child’s cup. Hydrogen peroxide, commonly used as a disinfectant, should have no place in food. Yet these chemicals are reportedly used to extend shelf life in unrefrigerated milk or to mask spoilage. The implications are fatal.

This crisis hits close to home. Years ago, through a friend, I visited a well-known milk processing company in a regional state. The shiny exterior and solid branding hid an alarming reality.

The company sourced milk from their own local and imported cows but not enough to meet daily demand. Local farmers supplied the rest. But these farmers transported milk in discoloured, often unclean nickel containers, unfit for food handling. The milk was poured directly into pasteurizers, no lab testing, no quality control, no microbiological screening.

What shocked me most was staff openly dumping 50 kilograms of starch into the milk to “thicken” it, because farmers often diluted it with water. This was a large-scale commercial dairy company operating without even basic lab testing.

If this is standard for a top-tier supplier, what about others?

The blame does not rest solely on farmers, says a quality control expert from the Ethiopian Food and Drug Authority (EFDA). Many farmers operate in rural areas without electricity or cold chain infrastructure. Milk spoils quickly in hot climates. To salvage income, some use chemical preservatives, not out of malice, but due to systemic failures: lack of tools, knowledge, and support.

The result? Chemical-laced milk that reaches the market and our homes. The problem extends beyond milk to cheese, yogurt, and other dairy products.

A 2023 study titled “Quality Assessment of Raw and Pasteurized Milk in Gondar,” published in Heliyon, analysed 90 milk samples. It found formalin and hydrogen peroxide in 50pc of pasteurized and 7.7pc of raw milk samples, both with serious health risks.

These findings reveal more than contamination; they expose systemic lapses in oversight and enforcement. The study underscores the urgent need for tighter food safety regulation and consistent monitoring across Ethiopia’s dairy industry.

The most troubling part is not just the adulteration that has gone on for years, it is the lack of regular oversight. Formalin, a restricted chemical used to preserve dead tissue, is accessible without authorization. Its use in milk, a drink for children, is beyond comprehension.

What are the authorities doing? Where is regulation? Inspections? Accountability?

Occasional press releases and raids are not enough. Food safety is a continuous, non-negotiable responsibility. The public should not have to guess if a product is safe, that’s the system’s job. We need a shift from reaction to prevention.

Milk must be tested at the source, at every collection centre, not just supermarkets. Farmers need certification, training in hygienic handling, and market support. Educate, equip, and empower them. Large manufacturers should help low-income farmers with storage and preservation facilities.

Chemical sales must be strictly regulated. Authorities should monitor and track these chemicals rigorously. Transparent traceability systems should track milk from farm to shelf. Penalties must be enforced for manufacturers and individuals guilty of adulteration.

Until accountability is restored, consumer trust will erode.

Food safety is about trust. Parents trust that what they give their children is safe. That trust assumes functioning systems ensuring safety. When systems fail for years, every household feels the consequences.

Adulterated milk is not just food fraud; it is a public health crisis. Medical experts link prolonged formalin exposure to respiratory issues, gastrointestinal problems, and cancer. Hydrogen peroxide can cause stomach irritation and internal damage. These are not theoretical risks but real and affect the most vulnerable: children.

Rebuilding trust will take time. Once shaken, it is not easily restored, especially when children’s health is at stake. Families deserve confidence in what they put on the table. That confidence requires accountability, strict safety enforcement, and transparency at every supply chain step.

For our family, the breaking point came quickly. We stopped buying milk from the company I visited and many others. But the deeper problem remains trust is broken. Even premium brands source from networks of small farmers, often without proper refrigeration or oversight.

We switched to NIDO full cream powdered milk. It was not perfect, we knew the sodium content, but between a bit of sodium and potentially cancer-causing preservatives, the choice was clear: better an imperfect but safe option than a hidden risk.

A Dangerous Beam in a Childs Hand

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It was during an ordinary errand, shopping for socks, that an unexpected discovery occurred. A gleaming green beam drew my attention to a curious device: a sleek, stick-shaped pointer with a clip and flower-shaped tip. The shopkeeper described it as a laser toy for children, complete with buttons that changed the light from green to red, blue, and even purple. Priced at just 60 Br, it seemed like a charming trinket certain to delight to my daughter.

But curiosity quickly gave way to concern. Upon closer inspection, the object revealed a jarring message: “DANGER LASER: AVOID DIRECT EYE CONTACT.” Additional warnings, etched in small print, detailed potential hazards. The starkness of the warning felt incompatible with a children’s toy. Unlike common battery cautions, this one hinted at a danger more acute, more immediate.

Children’s natural curiosity often overrides caution. When left alone with devices that glow or flash, they tend to explore. Shining lights into eyes, palms, or against walls becomes instinctive play. Memories of flashlights repurposed into biological experiments, casting veins into relief, came rushing back. The risk of a child pointing this laser at their own or another’s eyes felt alarmingly plausible. It became clear that the toy, although marketed as harmless, carried risks far out of proportion to its playful appearance.

This realisation led to a broader concern: How many caregivers actually pause to read the warnings on such products? The excitement of a child discovering a new toy often eclipses any attention to fine print. In a more typical shopping scenario, with children in tow, distractions would likely have precluded any inspection of safety labels. That possibility was unsettling.

Prompted by this experience, a deeper investigation began into the risks posed by laser toys and how easily these dangers can be overlooked.

Laser toys have grown increasingly popular. From laser-mounted toy guns to spinning tops that project intricate light patterns, they captivate the imagination. Yet beneath their dazzling lights lies a capacity for harm, particularly to the eyes. The concentrated beams emitted by even small laser devices can inflict serious and sometimes irreversible retinal damage.

What makes laser injuries especially insidious is their delayed onset. Exposure rarely causes immediate pain. Vision may deteriorate gradually over days, making it difficult to recognise when damage has occurred. This delayed onset of symptoms not only obscures the initial danger but may also prolong exposure.

Reflected laser beams compound the risk. Mirrors, metallic surfaces, and polished household items can redirect light unexpectedly. A seemingly harmless bounce off a fridge door or window could prove just as harmful as a direct beam. In such scenarios, individuals may not even be aware they are being exposed to harmful laser light until it is too late.

In recognition of these dangers, regulatory bodies like the U.S. Food and Drug Administration (FDA) have stepped in. The FDA mandates stringent standards for electronic products that emit radiation, including lasers. For children’s toys, the FDA strongly recommends Class 1 lasers the lowest hazard classification under international standards. These guidelines ensure that laser emissions remain at levels considered safe for incidental exposure.

However, market trends and consumer behaviour often outpace regulation. Laser pointers, originally designed for professional presentations, are now more powerful and widely available than ever. Though not intended for play, many end up in children’s hands, where they are used indiscriminately and without supervision. These devices can emit far more intense beams than toy-grade lasers, making them disproportionately dangerous.

The blurred line between pointer and plaything creates a vacuum of responsibility. As access increases and prices drop, so does the threshold for risk. A small, affordable device, marketed as a novelty, can carry the destructive power of medical-grade equipment.

To mitigate these risks, certain precautions must be non-negotiable. Lasers should never be aimed at people or animals, no matter how innocuous the gesture may seem. The risk of accidental reflection or misdirected play is too great. Shining lasers at vehicles or aircraft is not only reckless but constitutes a serious federal offense in jurisdictions such as the United States, where it carries steep legal penalties.

In the case of breakage, laser toys should be disposed of properly, following environmental safety guidelines to avoid exposure to hazardous internal components. Importantly, high-powered laser pointers should never be purchased for children, nor allowed within their reach. Labels should be checked for power output, and any product lacking this information, or exceeding 5mW, should raise immediate concern.

If laser exposure is suspected to have caused an eye injury, immediate consultation with a healthcare professional is essential. Prompt intervention can help minimise long-term damage and, in some cases, preserve vision.

In sum, laser toys present a paradox: devices meant to entertain can also endanger. Their sleek packaging and colourful lights mask a capacity for serious harm. The decision to avoid them altogether may, in the end, be the safest course. Where such toys are already in the home, strict boundaries and vigilant supervision are essential.

Awareness, rooted in information, not fear, is the most effective safeguard. Safety often hides in fine print. Taking a moment to pause, read, and reflect can prevent years of regret.

“If need be, there was a lot we could talk about.”

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Gedion Timotheos (PhD), minister of Foreign Affairs, responded to the concerns of Desalegn Chane (PhD), an opposition legislator from NaMA, tossing the claims that Ethiopia is in a “war of words” with Eritrea.

Parliament Enacts Solid Waste Management, Disposal Proclamation

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Parliament has unanimously passed the solid waste management and disposal proclamation, marking a decisive move toward environmental sustainability. It mainly introduces stringent penalties for the use and distribution of single-use plastic bags, focusing on reducing pollution and promoting responsible waste practices.

Under the new proclamation, individuals carrying plastic bags face fines ranging from 2,000 to 5,000 Br, while commercial producers, importers, and retailers may be fined between 50,000 and 200,000 Br or face up to five years’ imprisonment.

The legislation outlines a national framework for waste reduction and sustainable disposal while empowering regional and city administrations to adapt localized strategies. Aweke Amzaye (PhD), Deputy Chair of the Standing Committee on Water and Regional Development Affairs, emphasised that the proclamation responds to growing environmental and public health threats.

Beyond regulation, the proclamation prioritizes public engagement through awareness campaigns to foster behavioural change. The proclamation stressed that lasting impact depends on educating producers and consumers alike. This comprehensive initiative lays the groundwork for a cleaner, safer Ethiopia through legal reform, decentralised governance, and public participation.

NBE Sustains Dollar Supply as Exchange Rate Rises

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The US dollar rose to an average of 134.95 Br in the seventh round of the National Bank of Ethiopia’s (NBE) foreign exchange auction held on June 5, 2025. This marks a steady increase from 133.17 Br in the previous round and 132.90 Br in the fifth.

In the latest bi-weekly auction, the central bank offered 50 million dollars to 12 commercial banks. By comparison, 60 million dollars was supplied to 16 banks at 132.96 Br in early May. In April, two auctions distributed 70 million dollars to 26 banks at 131.49 Br and 50 million dollarsto 12 banks at 131.71 Br. February saw the highest rate of 135.61 Br, with 60 million dollars offered to 27 banks.

The auctions are part of the NBE’s ongoing strategy to stabilise the exchange rate and improve dollar availability. While bank participation has recently declined, officials expect the programme to ease import-related pressures, support the private sector, and help maintain macroeconomic stability.

Holland Dairy Unveils Cold Facility, Reinforces Eco Goals Through New Treatment Plant

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Holland Dairy has officially inaugurated a cold storage facility and commissioned a wastewater treatment plant, marking a significant step forward in its commitment to growth and sustainability. The event was attended by the Mayor of Bishoftu and the Ambassador of the Kingdom of the Netherlands to Ethiopia, showcasing both national and international support for the initiative.

The new cold storage facility, with a capacity of over 400,000 liters of yogurt, is designed to enhance supply chain efficiency and ensure consistent year-round availability. This is particularly critical in the local market, where seasonal fluctuations such as Orthodox fasting periods, rainy seasons, and holidays can disrupt dairy demand and distribution.

“This infrastructure ensures quality, reduces waste, and strengthens market reliability,” said Jean-Paul Rieu, Commercial Director at Holland Dairy. “A reliable cold chain is the backbone of a thriving dairy industry.”

In parallel, the commissioning of a modern wastewater treatment plant reinforces Holland Dairy’s commitment to environmental responsibility. The system is engineered to recycle production water for irrigation or to enable safe discharge into the environment, minimising the facility’s ecological footprint.

Backed by a network of over 4,000 local dairy farmers, Holland Dairy continues to produce high-quality milk that meets international standards. The company remains at the forefront of promoting food security, environmental sustainability, and economic empowerment within the country.

Education System Sees Shift as Anti-Cheating Reforms Take Hold

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The Ministry of Education (MoE) announced that recent reforms targeting exam cheating have begun to restore public trust in the education system. A key measure has been restructuring the assessment and examination system to address long-standing issues.

Education Minister Berhanu Nega (Prof.) stressed that education is about acquiring knowledge, and certificates are simply a reflection of that. He warned that credentials obtained through cheating, fraud, or theft distort reality and harm society by fostering false competence.

He noted that cheating has extended beyond students, with some adults justifying it as helping others from their area, reflecting a wider moral decline. Addressing such behaviour, he said, requires building integrity from the ground up and reinforcing that knowledge must be earned, not faked.

According to the Minister, the reforms have led to positive behavioural shifts: students are now studying more, attending tutorials, and making better use of libraries. Teachers have become more engaged, school leaders are enforcing academic discipline, and regional education offices are moving away from exaggerated performance reporting.

Berhanu noted that this year, over 600,000 students are expected to sit for the Grade 12 exam, both online and on paper an increase from last year.

Council Approves Nearly Two Tr Br Budget for Upcoming Fiscal Year

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The Council of Ministers has approved a draft federal budget nearing two trillion birr for the 2025/26 fiscal year, advancing it to Parliament for legislative review.

Endorsed during it’s recent session on Thursday, the proposal outlines allocations across recurrent and capital expenditures, regional transfers, and targeted investments directed at accelerating progress toward the Sustainable Development Goals (SDGs).

Structured within the Medium-Term Macroeconomic and Fiscal Framework, the budget aligns with national priorities outlined in the Ten-Year Development Plan. It places a strong emphasis on internal security, boosting productivity, and delivering humanitarian aid to communities impacted by conflict and climate-related displacement.

The draft is grounded in a performance review of the previous year’s program-based budget and is said to recalibrate fiscal strategies in line with current economic conditions. Government sources note efforts to enhance revenue through tax reforms and external financing to support planned initiatives.

Coming at a time of persistent macroeconomic challenges including inflation and regional instability the proposed budget signals a policy shift toward fiscal sustainability and inclusive growth. If ratified, it will shape federal spending and development priorities in the year ahead.