The percentage of the 28-day Treasury bills (T-bills) that were subscribed in July 2025, representing 6.8 times larger than that of the 364-day bills. This massive divergence shows extreme short-term risk aversion in the market. Buyers (77.8pc claimed by the CBE and the federal pension fund) are flocking to the shortest maturities despite yields declining sharply (from 15.8pc to 13.8pc), while essentially abandoning the one-year bills even though yields rose to 17.5pc.
Author: Digital Editor
CBE Wrestles with Past as Reforms Test the Future of State Banking
Our subscribers to the print edition are entitled to get a bonus in a form of early access to our digital edition.Use the bank detail below or call our office at +251-011-416-3020 to subscribe – only 657.00 Br for 52 editions – and enjoy access to www.addisfortune.news beginning on SUNDAYS as early as 6:00am!
TWO WORLDS OF DOGS From Streets to Luxury Grooming in Addis
Our subscribers to the print edition are entitled to get a bonus in a form of early access to our digital edition.Use the bank detail below or call our office at +251-011-416-3020 to subscribe – only 657.00 Br for 52 editions – and enjoy access to www.addisfortune.news beginning on SUNDAYS as early as 6:00am!
Why Apartments Are Redefining Modern Living in Addis Ababa
The housing landscape of Addis Ababa is undergoing a significant transformation. For generations, the dream of homeownership centered on a private, standalone house with a garden. Today, that vision is rapidly being replaced by a preference for modern apartments. This fundamental shift is not just a passing trend, it is rooted in a compelling blend of practicality, affordability, and a lifestyle that perfectly suits the demands of the 21st century.
Overcoming the Affordability Barrier
As the capital’s population has expanded, the cost of land and construction has gone through the roof. For the average resident, the financial burden of purchasing land and building a traditional house is extreme. Apartments offer a more accessible entry point into the real estate market. Developers are aware of this and have made ownership more achievable through flexible payment plans and installment schemes that span several years.
Convenience and Location
In a city contending with severe traffic congestion, location is a powerful selling point. Apartments are increasingly being built in prime, central neighborhoods like Piazza, Ayat, and Sarbet, where residents are within walking distance or a short drive of major business districts, schools, hospitals, and entertainment hubs. This truly improves quality of life by reducing commuting time, cutting down on transportation costs, and allowing residents to spend more time with their families and on personal pursuits.
A Secure Lifestyle
Personal safety is a top priority for families and individuals in any major city. Modern apartment complexes curb this concern by providing a secure and managed living environment. These properties typically feature gated access, security guards, and CCTV surveillance. This communal security infrastructure offers a level of protection that is difficult and expensive to replicate for a single-family home.
Modern Amenities and Community Living
More than just security and location to the lifestyle they offer, new developments are packed with modern amenities. These include backup power generators, high-speed elevators, underground parking, and centralized waste management. Furthermore, many buildings now feature shared community spaces such as gyms, children’s playgrounds, and landscaped gardens, creating a sense of community among residents.
An Efficient and Sustainable Urban Solution
This vertical development model is a cornerstone of modern urban planning, helping the city to accommodate its growing population without resorting to unsustainable urban sprawl. This approach not only conserves land but also makes the provision of essential services like electricity, water, and waste disposal more efficient and cost effective.
In conclusion, the rise of the apartment in Addis Ababa is a reflection of a city that is rapidly modernizing. This shift is amplified by developers like Temer Properties, who are leading the way by providing practical and appealing alternatives to traditional housing. By focusing on affordability, convenience, and security, Temer Properties is helping to redefine homeownership for a new generation of residents.
Connect with Temer Properties on their Digital platforms:
- Website (https://www.temerproperties.com)
- Facebook (https://www.facebook.com/temerproperties)
- Instagram (https://www.instagram.com/temerproperties)
- LinkedIn (https://www.linkedin.com/company/temer-realestate)
- Telegram (https://t.me/temer_properties)
- YouTube (https://www.youtube.com/@TemerProperties)
- TikTok (https://www.tiktok.com/@temer_properties)
Temer Properties
Create | Construct | Deliver
#temerproperties #temerrealestate
From Opportunity to Belonging: Vyonna’s Journey Working and Living in Russia
For some, moving is a nightmare, for others it is a true dream, but for Vyonna Rukuno from Kenya it was a step into the unknown, which opened up for her more than she could have imagined: a new profession, friends from different parts of the world, and even a sense of love for winter, which she had previously seen only in films.
How did Vyonna find out about the employment programme at a large Russian company? How did she manage to “feel at home” in a new country? And what stereotypes about Russians turned out to be true? You will find this and much more in our material.
According to Vyonna, the decision to participate in the Alabuga Start programme was made after she accidentally saw the information about the project on the Internet. The opportunity to gain professional skills, build a career without work experience, and learn about another culture seemed promising to her.
The selection process for Alabuga Start included submitting an application on the website, passing business simulations assessing the level of analytics and communication, learning one hundred basic words in Russian, and interviewing an HR specialist of the programme. This was followed by a medical examination, translation of the documents, and waiting for an invitation.
– The whole journey took me about four months. They say it’s faster now, – Vyonna laughs.
The girl admits: having the ticket to Russia in hand, which was paid for by the company, was the very moment when there was no turning back, and new opportunities opened up ahead. In Kazan (the capital of the Republic of Tatarstan – ed. note), Vyonna was met by programme staff and accompanied to Yelabuga, where the Alabuga SEZ is located. This support played an important role in the first days of her stay in Russia, helping her to adapt faster and feel more confident in an unfamiliar environment.
– It was a long flight, with a transfer in Istanbul. But when they meet you at the airport, you realize that you are not a stranger here, – Vyonna says.
Today, Vyonna lives in a corporate hostel with other Alabuga Start participants from different countries: Nigeria, Rwanda, Sri Lanka, Zambia, Sierra Leone, Uganda and Kyrgyzstan.
— It’s like getting to know the whole world in one house, she laughs. We taste each other’s dishes, talk about our countries, and sometimes learn Russian together.
Over time, Vyonna began supporting new participants: showing them the city, accompanying them to the store, sharing tips on household issues and helping them master basic phrases in Russian.
– I remember how everything was new in the early days. Having someone around who has already walked this path is priceless, – she says.
As part of the programme, each participant chooses one of seven fields. Vyonna chose the profession of a production operator, noting that this field provides an opportunity to learn new skills and obtain a demanded profession.
The work schedule includes two days of work and two days of learning Russian language. Every six months, an assessment is conducted, including the test on the knowledge of the Russian language, the participation in corporate games and assessment of production activities.
– During my participation in the programme, I managed to get my first promotion and became a technician. A salary of $ 1,100 is enough for ordinary purchases, and to pay for accommodation in hostels (it costs only $ 44 per month), and there even remains some money for savings, – says Vyonna.
According to the girl, the work was difficult in the first weeks due to the language barrier, but today she is already independently training new employees, sharing her professional knowledge and experience with them.
– At first it was difficult: no one in the brigade spoke English. We communicated by gestures. I’m currently training new employees myself. This is my personal growth and my contribution to the team, – our heroine admits.
In her free time, Vyonna participates in the programme’s activities, including excursions and sports events.
– My friends and I signed up for the Chain Reaction marathon. The first few kilometres were a nightmare, but the finish gave me an incredible feeling of victory, – she smiles.
Before moving, Vyonna had certain ideas about Russia and its inhabitants. According to the girl, she was pleasantly surprised by the openness and friendliness of the people.
– I thought Russians were always serious and a little harsh. But it turned out that they are calm, kind, and open. Winter, which I was afraid of, has become my favourite time of the year. And the autumn here is simply fabulous, – Vyonna shares.
Today, Alabuga Start is open to girls aged 18-22 from 77 countries. The programme offers official employment, professional development under the guidance of experienced mentors, accommodation in corporate hostels and career opportunities. In two years, you can grow up to be a qualified specialist, stay at Alabuga, or continue your studies in Russia.
– I came for the experience, but I found a lot more – friends, a profession and self—confidence, – Vyonna sums up.
You can join the programme at the official website.
DASHEN BANK’S NEW REMITTANCE GATEWAY ENTERS THE RING
At a high-profile event held at the Sheraton Addis last week, the launch of Dashen Bank’s new digital remittance platform was marked by the attendance of notable figures in the financial sector. Mamo Mihretu, governor of the Central Bank; Abie Sano, president of the Commercial Bank of Ethiopia (CBE) and the Ethiopian Bankers’ Association; and Asfaw Alemu, president of Dashen Bank, also the association’s vice president saw the new system of an agency remittance model seamlessly integrated with ET Switch, the national payment switch operated by EthSwitch. The key promise is real-time transfer capability to over 30 domestic banks, with a crucial incentive to banks, including the provision of 100pc upfront foreign currency, a compelling feature in a country besieged by chronic foreign exchange shortages.
GiftEthiopia.com, a novel feature attached to the platform, adds an e-commerce dimension. It allows diaspora users to not only send money but also buy and deliver goods or “gift items” directly to recipients in Ethiopia. This multi-layered offering of foreign currency inflows, e-commerce, and convenience seeks to unlock both emotional and financial capital from the diaspora. However, the Governor issued a sober warning that the informal channels through which much of the diaspora’s remittances flow pose an “existential risk” to macroeconomic stability. The new platform appears to be targeting these parallel market routes squarely by offering competitive convenience and transparency, rather than relying solely on regulatory enforcement.
The system’s architecture, a unified gateway for multiple international money transfer operators (IMTOs), is designed to address one of the most frequent customer complaints of a lack of flexibility and high fees. Asfaw (left) and Abie (right) echoed these sentiments, positioning the platform as an industry-wide response to structural inefficiencies and consumer dissatisfaction.
Will Community Health Insurance Falter Under Its Ambitious Weight?
For Germans, Otto von Bismarck is first remembered as the architect of a unified nation. However, his lesser-known stroke of statecraft continues to have a lasting impact on the world. In 1883, he introduced the world’s first compulsory health insurance law. For Bismarck, it was not altruism as he sought to curb the rise of socialist agitators by guaranteeing a modest income for workers who were sick or injured. Medical coverage, to him, was almost beside the point.
Ethiopia, 128 years later, turned to community-based insurance for a different reason than ideology. In the late 2000s, too many families were selling cattle, pulling children from schools or sinking into debt to pay medical bills, and too many stayed home and died for lack of access to health services. Faced with grim statistics, the ruling Revolutionary Democrats, some of whose leaders were fans of the German leader, adopted a plan that drew inspiration from Bismarck’s legacy but charted its own course.
The community-based health insurance (CBHI) scheme began quietly in 2011, initially confined to 13 weredas scattered across the highlands and lowlands. The design was disarmingly simple. Each household paid a flat annual premium (currently 1,400 Br, equivalent to less than 10 dollars in last week’s exchange rate) and could then visit any public clinic or hospital. The federal government chipped in subsidies and covered the poorest individuals outright. In theory, one modest payment would link millions of rural and informal-sector workers to a safety net.
Ambition soon outran geography. In under a decade, the scheme spread to almost all 832 districts. Close to 32 million people, around a quarter of Ethiopians, are now enrolled. Ideally, they enjoy access to more than 1,900 health centres, nearly 250 hospitals and a small but growing list of private pharmacies to ease drug shortages. Insured patients make more than twice as many trips to facilities as their uninsured neighbours.
Catastrophic out-of-pocket spending, once a grim rite of passage for families facing illness, has fallen among the insured. Total consultations have tripled since 2015, while surveys find that fewer households are pushed into poverty by illness.
Nonetheless, success masks strain on a national program now estimated to be worth close to 50 billion Br.
The most obvious problem is money. CBHI was deliberately designed with low and affordable premiums, which, although politically popular, may be economically shaky. The annual contribution is well below the actual cost of care. With health needs rising and coverage expanding, the scheme is, in effect, paying out more than it takes in. Last year, for every Birr collected in premiums, the system paid nearly twice as much in claims. The gap is papered over by government subsidies, but with the state budget already stretched thin and donor funding uncertain, this is not a situation that can endure indefinitely.
Already, several district-level schemes have teetered on the brink of bankruptcy.
Participation in the scheme remains voluntary. Young and healthy families often opt out, leaving a pool that is older, sicker and costlier, a textbook case of adverse selection. Renewal rates are around 82pc, but in some districts, one household in five quietly drops out each year.
The flat-rate premium, once praised for simplicity, now distorts incentives. A family of eight pays the same as a childless couple, so larger (and usually poorer) households consume more care for less money. Policymakers tout sliding-scale fees tied to income or head-count, but fear sticker shock. Policymakers who designed the scheme promise broad coverage on a shoestring, a fiscal tightrope that Rwanda avoided by subsidising the very poor and mandating contributions, driving coverage above 80pc.
Geography, too, works against easy solutions. The country is vast, with mountain ranges, deserts, and forests dividing its people. In some regions, health centres are too far away, or too poorly staffed, to be of use. In others, recent conflict or political unrest has disrupted both health service delivery and insurance enrollment.
In well-served districts, enrollment tops 60pc; in remote pastoral areas, it lags badly. In Sidama Regional State, slightly more than one-third of women are insured; in the Central Shoa Zone of Amhara Regional State, the share is nearly double. These disparities uncover deeper inequalities of income, education, infrastructure, and trust. The result is a patchwork of progress and neglect.
Clinics groan under demand. Outpatient visits per member increased from fewer than one per year in 2011 to more than two by 2024. Stock-outs of medicines are routine. There are only 0.2 doctors per 1,000 people, a tenth of Europe’s average.
Insurance survives by pooling risk widely and pricing coverage at or near the actual cost. The domestic insurance pool is patchy, and CBHI will likely stay fragile, and its benefits will be spread too thinly, while its burdens will be borne by those least able to pay.
Officials discuss mandatory enrollment for the informal sector, merging the CBHI with a future social insurance plan for salaried workers, and implementing digital payments to reduce fraud. Pilot schemes test income-based premiums. These are all sensible ideas, on paper. But policy pronouncements are not enough. What the scheme needs now would be a dose of realism, an honest reckoning with its own limits. Premiums should reflect the true cost of care, even if that means politically unpopular increases.
The flat-rate family premium should be rethought, replaced by a system that balances fairness, affordability, and fiscal discipline. Most of all, participation needs to be broadened, ideally, made universal, so that the risks and rewards are shared across the entire population, not the compliant or the unlucky.
The more urgent need is transparency, as data on the scheme is hard to come by. The Ethiopian Health Insurance Agency (EHIA), a federal agency responsible for such a vast task, still lacks a functioning website, which fuels a decline in trust. Insurance, after all, is a social contract. Citizens pay now for protection later only if they believe the system will be there when illness strikes.
Infrastructure should keep pace. More clinics, better equipment, and thousands of extra health workers would help prevent queues from lengthening and drugs from running out. Without that push, insurance risks become a promise honoured in theory, resented in practice.
The lesson from Bismarck’s Germany, and modern peers such as Rwanda, should be self-evident. Universal coverage demands compulsory participation, actuarial honesty and steady investment. Ethiopia has demonstrated that a developing country can enrol millions into a health insurance pool. The question is whether it will fortify the pool before its walls crack.
CBHI has already made illness less ruinous and care more accessible. But it is also a leap of faith teetering on thin financial ice. Raise premiums to match costs, redesign the flat fee, widen the risk pool, and invest heavily in clinics. Policymakers could then demonstrate that collective action can indeed level the odds between town and countryside, as well as between the rich and the poor. Fail, and CBHI may join the long list of well-meant reforms that faltered under the weight of their own ambition.
Ethio telecom’s Dividend Plan Draws Ire as Shareholders Wait
Ethio telecom, one of the long-standing state-owned monopolies, has publicly committed to paying dividends to individual shareholders.
Under the three-year “Next Horizon: Digital & Beyond 2028” strategy, the company plans to distribute a total of 111.3 billion Br in dividends, with 35.4 billion Br targeted for the current fiscal year. The announcement, made by CEO Frehiwot Tamiru, represents a symbolic break from the era of exclusive government ownership and signals a bid to cultivate both domestic and foreign investor confidence in the telecom sector.
“Achieving this goal, however, will require substantial effort,” said Frehiwot, unveiling her new strategy last week at the Science Museum, on Menelik II Avenue.
The company’s change in approach comes after it was converted from a public enterprise into a joint share company in June 2024, following the revised Commercial Code. It offered 10pc of its shares to domestic investors, selling 10.7 million ordinary shares over a 121-day window. A total of 47,377 citizens took part in the offering.
In total, 100 million shares were put on sale at 300 Br each, with investors allowed to buy between 33 and 3,333 shares. According to company data, 712 investors bought between 3,001 and 3,333 shares, while 33 investors purchased shares at the lowest bracket.
Despite the enthusiasm, shares have yet to be formally certified by regulators more than 10 months after the public offering closed. Frehiwot disclosed to Fortune that certification is expected soon, but until then, new shareholders will not be eligible to receive dividends.
The delay has left many investors frustrated and sparked a broader debate about the credibility of the emerging capital market.
Dakito Alemu (PhD), an associate professor of finance at Addis Abeba University and one of the more than 47,000 shareholders, has become a vocal critic of the process. He cited the Ethiopian Capital Market law for stipulating that shareholders get recognised as owners within three months and are eligible to receive profits soon after.
“Instead, our money has been tied up for months,” Dakito said.
He argued that Ethio telecom continues to use investors’ funds without bearing interest.
“If that is the case, we should either consider it a loan and receive interest, or the company should pay dividends by allocating shares to the remaining subscribers,” he said.
Dakito called the company’s claim that shareholders are “not yet owners” illogical and unlawful.
“We fulfilled our obligations, paid, and registered, yet the company has failed to make us legal owners,” Dakito said. “ECMA has failed to defend investor rights. It should have intervened to defend our rights. This lack of enforcement damages trust in the emerging capital market.”
Citing the Commercial Code, Dakito argued that if shares are not allotted or funds are not refunded within the required timeframe, the company should return the money with interest at the effective market rate.
“If shares aren’t legally allocated to investors who paid ten months ago, who will receive 2024/25 dividends? Shareholders deserve answers,” Dakito said.
Segni Ambaw (DVM), a veterinarian and another shareholder, echoed those concerns. He reckoned that Ethio telecom’s prospectus clearly stated that investors would be recognised as legal owners within three months. Segni believes shareholders should receive dividends in the fiscal year ending 10 months later.
“What is happening now undermines our confidence,” Segni said. “I invested with high hopes, but now question the credibility of the market itself. I have serious doubts about the viability of the entire capital market.”
Tilahun Girma, a financial policy analyst and country manager at PKF Global, applauded Ethio telecom for the share sale but criticised the company for failing to certify shareholders and distribute dividends. He called the delay inappropriate and possibly unlawful.
“Since the number of shareholders is manageable, the company should have formally made them owners and issued their certificates,” he told Fortune. “Dividend benefits should start accruing three months after purchase.”
He suggested the inaction may be deliberate, intended to withhold profits, and accused the ECMA of violating its own law by remaining silent. “By law, shareholders should have been recognised and paid profits within three months. ECMA’s inaction undermines both the law and investor confidence,” he said.
According to Tilahun, shareholders could have earned better returns by keeping their funds in banks, arguing that investors have lost ownership rights, the opportunity to share in profits, the right to participate in assemblies, and the ability to be represented. He warned that the situation erodes Ethio telecom’s reputation, raises doubts over the appetite for remaining shares, and could discourage foreign investors.
Tilahun urged shareholders to organise and file formal complaints with ECMA and, if ignored, to take the matter to court.
Attempts by Fortune to obtain comment from the Authority have gone unanswered.
Despite the regulatory standoff, Ethio telecom has reported robust financial results. In the fiscal year ended last month, the company generated revenues of 162 billion Br, a nearly 75pc jump from the previous year, achieving 99pc of its annual target. It disbursed 12 billion Br in dividends to the federal government, although it did not clarify whether these came from current profits or reserves.
The company is targeting 235.8 billion Br in revenue for the current year, a 45.6pc increase, and expects 40pc of income to come from non-traditional services. Contributions from the internet and voice are projected to account for nearly half of revenues, with international services, device sales, enterprise offerings, Telebirr, infrastructure sharing, and other services making up the rest.
Telebirr, Ethio telecom’s mobile money service, is forecast to grow its user base by 14pc to 62.5 million, with transaction values expected to reach 4.43 trillion Br and transaction volumes to hit 1.94 billion. Revenue from Telebirr is projected at 8.5 billion Br, nearly double the amount from last year. It is projected to hit 75 million users, processing 21.3 trillion Br in transaction value and 10.4 billion in volume. Its revenue alone is expected to reach 49.1 billion Br, with nearly one million merchants and 840,000 agents.
Ethio telecom also aspires to get an EBITDA margin of 47.7pc, a financial metric that measures a company’s operating profitability as a percentage of its total revenue. Its pre-tax profit of 76 billion Br is projected to exceed three times last year’s total, with a profit margin of 22.6pc. The company expects to contribute 70.9 billion Br in taxes and 35.4 billion Br in dividends this year. Over the next three years, it anticipates revenue of 842.3 billion Br, representing a 154pc increase from the previous three-year period.
Its total assets are projected to reach 851 billion Br, with foreign currency revenue at 976 million dollars. Tax contributions over the period are forecast at 253 billion Br, with dividend payouts reaching 111.3 billion Br.
However, these are plans pundits say pinned on hope rather than realism.
“Hope is not a strategy,” Aminu Nuru, a financial expert based in Doha, Qatar, posted on his Facebook page. “Unrealistic and overstretched plan brings more harm than good. Stakeholders find it difficult to take it seriously. It makes [the strategy] meaningless.”
Frehiwot, speaking at last week’s press briefing, sought to shift the conversation to the broader strategic goals of the company. According to her, the new plan is about more than continuity, aiming to redefine Ethio telecom’s role in shaping the digital future of Ethiopia and extending inclusive growth across Africa. The company wants to become “globally competitive, regionally diversified, and digitally empowered.”
The CEO attributed Ethio telecom’s role in supporting the Digital Ethiopia initiative to its network, customer base, acquisition capacity, and growing portfolio of services spanning from connectivity and fintech to cloud, data centres, cybersecurity, and smart cities.
By 2028, Ethio telecom plans to expand 4G LTE Advanced coverage to 85pc of the country, launch services in 550 additional towns, and build 1,228 new mobile sites, including 322 in rural areas. The company also intends to roll out 5G in 10 more cities, increasing the number of sites from 315 to 490, and boost capacity by 7.6 million to reach 112.4 million subscribers. Ethio telecom expects to reach 100 million customers by the end of the three-year strategy, including 67.3 million mobile broadband and 1.6 million fixed broadband users.
Private Colleges Face Reckoning Under Tough New Standards
Federal education officials have issued a stern warning to private colleges, where a large number of institutions are at risk of losing their permits if they fail to meet tough new standards introduced under a 2024 Licensing Re-Registration Directive.
Imposing a tight deadline, officials of the federal Education & Training Authority (ETA) have given colleges six months to comply or face closure.
The crackdown, announced at a press briefing last week at the Ministry of Education, up at Arat Kilo, comes after growing concerns over the quality and regulation of private higher education. According to Hiwot Assefa, CEO of Higher Education Licensing at ETA, the directive was designed to establish a uniform licensing system and ensure that authorities have accurate data on institutions operating in the sector.
The new directive represents a major shift for colleges that, for years, have operated with relatively loose oversight. The changes require private universities to own or rent entire buildings dedicated solely to education. Henceforth, they will no longer be permitted to share facilities with other businesses. Institutions are also required to employ doctoral holders as instructors and administrators, and they should deliver tangible results; at least one-third of students need to pass the national exit exam.
Of the 375 private institutions expected to re-register nationwide, only 290 submitted applications last year, while 85 chose to withdraw from the process altogether, transferring their students to other institutions. In the capital, 75 institutions, 112 campuses, and 556 programs have successfully met the first registration requirement. However, the results of field inspections proved disappointing for regulators. After three rounds of assessments, only three institutions, three campuses, and 17 academic programs were found to meet all the requirements for full accreditation.
“The first round of field evaluation yielded shocking results,” Hiwot told reporters. “Many institutions failed to meet even the minimum requirements.”
Consequently, 25 institutions that had made partial progress were granted a one-year grace period to address shortcomings. Another 62 institutions received a six-month extension, but with the caution that non-compliance would result in the loss of their licenses.
Private colleges have pushed back, voicing alarm over what they say are unrealistic deadlines and impractical requirements. According to Tefera Gebeyehu, general manager of the Ethiopian Private Higher Education Institutions Association (EPHEIA), the standards were simply unattainable within the provided time frames. He could find it difficult to see the feasibility of colleges offering health programs, building their own hospitals, which is now a requirement, within a year.
“The directive is unachievable,” he argued. “Some rules do not directly improve teaching quality yet remain mandatory.”
Tefera also criticised the process for its lack of consultation, urging education authorities to reconsider some of the tougher requirements.
But education officials have refused to back down. Minister of Education Berhanu Nega (Prof.) insisted that quality, not protecting underperforming institutions, was his government’s main concern. He claimed that the Ministry had consulted with private schools over the past three years, and those that failed to improve should not expect to stay open.
“From now on, it will not be possible to set up something on a rented floor and call it a college,” he said. “Ethiopia cannot afford to repeat the mistakes of the past three decades.”
The Minister also dismissed fears that the closures could trigger a national crisis.
“Our concern is that students shouldn’t be awarded degrees without receiving proper education,” he said.
The stricter requirements have triggered worries among college leaders, who say the reforms could drive some institutions out of business and limit access to higher education for students in Addis Abeba, where demand is high. Zelealem Belay, representing Yared Industrial, Technology & Business College, found the deadlines too short for most colleges to realistically comply.
“By setting standards that cannot be met, are we not depriving students of the opportunity to learn?” he asked.
Despite pledges by the Minister that public universities would also be held to the same standards and face closure if they failed to comply, for some, the changes seem to set the bar higher than even they can reach.
Samson Zerihun of Zemen Postgraduate College acknowledged the need for re-registration but questioned the practicality of some rules. He is worried that a dean’s office, required to be between 20Sqm and 40Sqm would force many colleges to construct entirely new facilities. He also attributed the challenge of recruiting enough full-time PhD instructors to the small number of qualified professionals in Ethiopia and the reluctance among academics to accept full-time contracts.
Unity University President Arega Yirdaw (PhD) noted another difficult provision. The rule requires that instructors who have been working overseas must be accredited, Arega believes some have found the process difficult.
“This isn’t something that can be achieved in one year or even six months,” he said, calling on regulators to be more realistic.
At ETA, officials have responded by defending the new rules and the speed at which they are being applied.
Ahmed Abtew (PhD), the authority’s director general, echoed the Education Minister’s position. He warned that, unlike colleges given one-year extensions, those with six-month deadlines posed more serious risks to quality.
“Let’s change what needs to be changed,” Ahmed said. “If it doesn’t work, we’ll redirect resources to another sector.”
Woubshet Tadele, ETA’s deputy director general in charge of licensing and quality audit, argued that many requirements had already been relaxed to reduce the burden on colleges. He claimed most standards could be met within six months to a year if schools were serious about making changes, though he left the door open for additional time in special cases. Addressing concerns about the shortage of PhD instructors, Woubshet said schools should either support current staff in obtaining advanced degrees or suspend programs that lack qualified faculty.
“If there are no teachers, there should be no program,” he said. “Standards cannot be compromised.”
This is a voice amplified by Alemayehu Teklemariam (Prof.), a lecturer at Addis Abeba University (AAU). He argued that universities unable to meet the new standards should either change their line of business or suspend specific programs until they can comply.
“If they can’t employ PhD-holding instructors, they should stop offering those courses until they can meet the requirements,” he said.
According to education officials, the new directive will soon be applied to public universities, pursuing to improve quality, increase accountability, and set a higher standard for all institutions.
Education experts have largely supported the move. Alemayehu blamed many private colleges for having contributed to declining standards and described the officials’ actions as overdue.
“The Authority should have taken this decision earlier,” he said.
Alemayehu believes that public universities in peripheral regions have outperformed many private institutions in Addis Abeba on national exit exams. He urged parents to be cautious when selecting colleges, warning that school closures often leave students stranded.
“If a school is forced to shut down, students are left in a difficult situation,” he said. “However, it is still better for them to attend classes in a qualified institution rather than continue in one that is unfit.”
One such affected student is Sitra Nasser, a third-year accounting student enrolled at a private university. She was shocked to hear that her college might be closed. She already went through one closure, when Harambe University shut down, forcing her to transfer and scramble to get her documents in order.
“It was so difficult to get my documents on time,” she told Fortune. “Without them, I couldn’t even get a student ID card at my new school.”
Sitra pleaded for the ETA to consider the plight of students like her.
“Students are the ones who pay the real price,” she said. “It’s frustrating and costly.”
EIC’s Financials Soar on Investment Income, Despite Record Claims
The Ethiopian Insurance Corporation (EIC) delivered a robust pre-tax profit of 1.98 billion Br, comfortably surpassing its target. The performance was largely underpinned by a substantial 1.27 billion Br in investment income, representing a nearly 75pc increase year-on-year, alongside strong underwriting results of over three billion Birr. Gross premiums hit 13.3 billion Br, growing by more than 50pc from the previous year.
Notably, 97pc of premiums were from general insurance, with the remainder from life insurance, demonstrating the continued underdevelopment of the life segment in the insurance market.
The Chief Executive Officer (CEO), Abel Tadesse, disclosed that the state-owned insurance firm’s gross profit exceeded the annual plan by almost two percent and increased by nearly one-fifth compared to the previous year.
Despite the growth, customer retention was only 58pc, which management recognised as a weakness.
Claims expenses increased sharply. EIC paid out 6.56 billion Br in compensation, more than double the amount paid out the previous year. This was fueled by inflation, higher spare parts and garage costs, as well as a rise in medical reimbursements. For every 100 Br collected in premiums, the company paid out 58 Br in claims. Reinsurance covered around seven percent of these losses, leaving a net loss ratio of 51pc. Although unpaid claims were 3.8 billion Br, this was an improvement from the previous year.
Mengistu Meharu, chief of customer service, attributed the spike in claims not only to rising prices, but also to increased traffic accidents and the settlement related to Ethiopian Airlines Flight 302.
The crash in March 2019, shortly after take-off from Bole International Airport, killed all 157 people on board. Addis Abeba itself continues to face road safety challenges. Police reported 400 road traffic deaths last year, slightly above the recent average. A study covering 2018 to 2020 documented 1,274 fatalities, or about 425 each year, with more than four-fifths of victims being pedestrians. Most crashes involved speeding light vehicles on median-divided roads.
According to Mengistu, surging property values also pushed payouts higher. The gross loss ratio, which was 46pc last year, worsened as a result. The biggest clients for EIC remain Ethiopian Airlines, BGI Ethiopia, and Ethiopian Electric Power.
Even as industry-wide premiums grew by 45pc to reach 41.1 billion Br, EIC increased its market share to 32.5pc, up more than two points from the previous year.
Inflation, currency depreciation, and rising healthcare costs have put pressure on customers and the company’s own costs.
Regulators are also stepping in. The National Bank of Ethiopia (NBE) issued a directive in 2023 setting minimum tariffs for motor insurance at 3.5pc of a private vehicle’s value, 4.5pc for commercial vehicles, five percent for taxis, and up to six percent for long-distance trucks. Insurers who break the rule risk fines, warnings, or having their licenses revoked. International standards consider a net loss ratio of 70pc to be healthy, a benchmark echoed by regulators, though EIC’s net loss ratio is much lower.
General insurance premiums now face a 15pc VAT, while life and health insurance remain exempt. Industry sources say that this move could suppress demand among price-sensitive retail customers, particularly for products that have yet to establish a foothold in the broader market.
As of June 2024, the insurance industry held total assets of nearly 27.5 billion Br. However, insurance remains a relatively minor part of the financial system, accounting for only four percent of the financial sector’s assets, compared to banking, which controls 96pc of sector assets.
The insurance industry is expected to reach around 800 branches by mid-2024 and surpass 20 billion Br in total capital. However, the industry remains highly fragmented, with a large number of small players competing for market share. Penetration in the broader economy is strikingly low, measured at 0.3pc of GDP in 2022. The motor insurance line, which covers about 45pc of gross written premiums, illustrates the industry’s narrow focus and urban orientation.
However, the Corporation’s grip on the industry has not insulated it from criticism.
Mekonnen Gebrewahid, a consultant with two decades of experience in the insurance industry. commended EIC for its “strong performance.” However, he cautioned for a thorough examination of expense ratio to better understand the profit result given the low claims ratio. According to Mekonnen, premium rate revisions could make EIC less competitive if problems in claims and underwriting are not addressed, citing issues such as exaggerated claims.
He also stated that health insurance tends to be unprofitable across the industry, as it is impacted by wasteful spending, such as unnecessary prescriptions, while premiums remain low. He urged EIC to tighten controls and develop a more commercial mindset.
EIC’s owner, Ethiopian Investment Holdings (EIH), has set strategic priorities for the firm, focusing on transformation programs that include digitalisation, improved operational processes, and expanding the customer base to attract more private clients. EIC is planning new initiatives in corporate governance, human resources, and efficiency to address these challenges and reinforce its lead in the industry.
Its CEO, Abel, recognised the strains on profitability and disclosed that premium rates would need to be adjusted. He also admitted weaknesses in risk management, which he said would be addressed.
“Spare parts, garages, and medical reimbursements are becoming increasingly expensive,” Abel said. “We need to adjust our strategies accordingly.”
Authorities’ Crackdown Jolts Small Businesses During Regulatory Blitz
The private sector is under unprecedented scrutiny as federal trade officials launch one of its most extensive enforcement drives in recent memory. Framed as a response to rampant non-compliance, the crackdown has already swept up nearly half a million businesses across the country, igniting concerns among businesses, economists, and business associations.
A recent announcement by officials of the Ministry of Trade & Regional Integration (MTRI), under Kassahun Gofe, revealed that approximately one in every six traders was found to be breaking rules, with more than 480,000 businesses facing administrative and legal penalties. The moves mark a fresh effort by the government to impose order in a market often beset by shifting regulations, rising costs, and falling consumer demand.
The Ministry’s findings were made public at the Ethiopian Quality Award Organisation’s “Quality Village,” a symbolic backdrop on Megenagna Ring Road, where the new data revealed both the scale of the problem and the authorities’ desire to be seen acting decisively. The Ministry’s inspectors claim that 15pc of registered businesses were not following the rules after recent inspections. Penalties ranged from warnings to outright licence cancellations.
In total, 285,323 businesses received forewarning letters, 171,095 were closed and sealed, while 2,965 lost their trade licences altogether.
The capital serves as a case in point for the current turbulence in the trading environment. In the city, officials cancelled almost 30pc of the licences in circulation. While more than 99,000 new licences were issued in the past year, over 37,000 were cancelled, evident signs of an unstable and fast-changing retail environment. Contraband remains a serious concern for trade officials in Addis Abeba, especially around essentials like cooking oil and fuel.
During the recent crackdown, authorities reported recovering 8.6 million Br worth of contraband goods. Enforcement officers also claim to have found more than 36,000 businesses trading illegally, with nearly half of them failing to renew their licences.
The realities behind these numbers come into focus in stories like that of Kalkidan Feleke, a young businesswoman who started selling shirts, tote bags and trousers online a year ago. Digital platforms like TikTok and Telegram offered her an affordable way to break into the business, but she soon realised customers still want to see products in person.
“I rented a shelf for 2,000 Br in a shop,” she told Fortune. “That way, I avoid the burden I might face at the early stage of the business.”
For Kalkidan, the costs of going fully legal are still out of reach. Near Megenagna, a small space she wanted to rent was 30,000 Br a month.
“Given that the nature of my business is not daily consumption, I prefer to collect capital gradually before considering a full shop,” said Kalkidan. “It’s been five months since I rented a shelf for display.”
VAT, taxes and soaring rental prices make it nearly impossible for small traders like her to go fully above board from day one.
However, business leaders say the challenges extend beyond simply complying with the law.
According to Sebsib Abafira, president of the Ethiopian Chamber of Commerce & Sectoral Association, the authorities should build awareness before stepping up enforcement. The Chamber, he said, does not defend those engaged in illicit activities, and is working to train auditors and accountants about the new tax rules. But he is also critical of the pace of reforms.
“The traders have less knowledge about how tax works,” Sebsib told Fortune. “Our role is to create awareness and provide training for our members.”
The pressure on traders is felt across the country. In Dire Dawa, local authorities found nearly 28,000 traders that allegedly failed to renew their licences, and seized expired goods worth over 300,000 Br. The illicit sale of fuel generated 19.4 million Br for the region, while confiscated goods in Dire Dawa were valued at 1.6 billion Br, by far the highest of any regional state. Local businesses that broke the rules were penalised half a billion Birr.
Aminu Teha, head of the city’s Trade, Industry & Investment Bureau, raised concerns about traders using railway lines to transport coffee for export, a practice currently allowed only for livestock. According to Aminu, such loopholes can undercut local regulations.
Elsewhere, the Southern region reported penalties totalling 19.5 million Br, mostly tied to the illicit fuel trade. Nearly nine million Birr in revenue was raised from these cases, and regional officials confiscated goods worth 21.9 million Br. Out of approximately 133,000 registered traders, 14pc were allegedly caught engaging in illegal activities, resulting in fines totalling 53.1 million Br. In the Amhara Regional State, illicit trade remains a major headache for the local authority.
Fetenaw Fetene, head of the regional Trade Bureau, blamed recurrent security problems for making it difficult to keep a lid on crime and illegal trading.
“Traders attempting to inflate prices beyond officially set levels had also faced penalties,” he said.
Fetenaw admitted the Bureau struggled to monitor businesses in 2023 due to instability, with 15,000 licences cancelled and 109,000 penalised, about a third for operating without proper paperwork. The Bureau raised 24.1 million Br from expired goods and 85.6 million Br in penalties, not counting cases involving fuel. Authorities plan to establish seven new trade houses, with a budget of half a billion Birr, and encourage more direct sales between farmers and consumers to reduce illicit trade.
At the national level, penalties for illicit trading reached almost two billion Birr. The federal government itself penalised 110,000 traders, confiscated nearly 1.2 million litres of fuel for sale on the parallel market and resold it for 118 million Br, in addition to collecting 40 million Br in fines. However, these measures have not alleviated the deeper financial strains. Officials admitted that unpaid dues from fuel subsidies have now reached 201.6 billion Br. Although federal authorities had planned to slash subsidies by 94pc last year, a sharp drop in the currency forced them to backtrack, and costs ended up tripling.
For many retailers, the strain is proving too much.
According to Sani Tuki, an investment consultant and international trade adviser, frequent policy shifts and high taxes have driven many traders into a state of survival.
“Importing is still insufficient,” he noted, pointing out that minimum export prices set by the Ministry have driven up domestic costs and cut profits, especially in industries like leather. “They stay inactive until demand recovers.”
Sani argued that unpredictable policies, bureaucratic delays and inflation have squeezed businesses on all sides. He called for more careful engagement with traders before introducing new rules, and recommended boosting export and farm subsidies.
“Exporters should retain up to 70pc of their foreign exchange earnings, rather than the current 50pc,” he said.
In Digital Hustle, Fragile Trust Cashless Future on a Tipping Point
Desalegn Banksira sits behind the counter of Tsione Bar & Restaurant, near the Lancha area, thumbing through slips of paper that pass for proof of payment. More and more of his customers prefer to settle their bills through mobile apps, yet his patience with digital money is wearing thin.
“Some customers come with receipts that were paid to another business,” he said with a weary shrug, explaining that even the family’s chain of nightclubs is used to the same hustle.
Screenshots now carry more weight than verbal promises, and QR images are the go-to evidence for servers. Even so, disputes abound. A handful of patrons have stormed out, claiming they lost their phones while staff checked transfer confirmations, only to trumpet their escape on social media. That growing mistrust is turning larger retailers away from mobile money altogether.
These tensions come at a delicate moment for the local payment system. More than half a dozen gateways are on trial under the National Bank of Ethiopia (NBE), filing bi-weekly reports on transaction volumes and software tweaks. Approvals arrive, yet licences can just as quickly be yanked back. Last week, Fenan Pay Solutions S.C. became the newest operator to win a commercial permit, while Sunpay Financial Solutions S.C. endured the opposite fate after months of boardroom bickering and compliance failures.
Licensed in January 2022 for gateway and point-of-sale services, Sunpay secured a two-month window to pilot its technology, draft internal policies and train its managers. None of that happened. On August 27, 2024, the NBE revoked its permit, citing breaches of the National Payment System law. Sunpay never launched operations, never named a functioning chief executive officer and never renewed its paperwork despite repeated nudges.
Incorporated with 13.47 million Br capital raised from 10 investors, each pledging between 260,000 Br and 1.95 million Br, the company had named KirubelawitSahilu as CEO in its licence files. But, the lights never came on, leaving regulators to shut the doors and sparking fresh legal skirmishes.
Other aspirants remain in a central-bank sandbox. PawaPay Digital Financial Services S.C., Cashflow Financial Technologies S.C., LakiPay Financial Technologies S.C., and StarPay Financial Services S.C. all send their fortnightly updates, hoping for the green light. Cashflow, launched with a three-million Birr capital, is still pursuing commercial approval before raising additional funds. Its Chief Executive Officer, Abel Gebreananya, says his founding group, all quiet technologists with a knack for enterprise software, prefers to remain anonymous for now.
LakiPay offers a different profile. The brainchild of Habtamu Tadesse, who previously built and sold ArifPay, the firm opened with 99 million Br in seed funds and has already requested a full review from the NBE. Habtamu expects to achieve commercial status by the end of the month and plans to target medium-sized businesses, although he admits that the real honey pot lies with betting companies that generate high-volume and high-margin traffic.
“We had to teach everyone one by one,” he told Fortune, bemoaning the scarcity of skilled staff and the yawning gap between mobile-money know-how and gateway expertise.
Bank system integrations, which are meant to wrap up in days, sometimes drag on for months.
EagleLion System Technology demonstrates the breadth of those ambitions.
Founded on 15 million Br in capital, the firm has crafted an array of digital tools. DubePay, its flagship partnership with Dashen Bank, lets merchants offer credit sales and track receivables. Another platform, Dube Ale, extends consumer credit under a technical advisory agreement with MasterCard. Niche apps keep sprouting. Get Fee handles school payments, Get Rooms books hotel stays, and Nedaj pays for fuel.
EagleLion once operated CashGo, a remittance service in partnership with the Bank of Abyssinia, until a Central Bank directive halted the project. StarPay, EagleLion’s sister outfit licensed in February for pilot work, is run by Chief Executive Dagmawit Woldegeberel, while EagleLion CEO, Bersufekad Getachew, sits on its board. According to Dagmawit, StarPay has begun signing up hotels and will soon court supermarkets, with hopes of reaching down to “Gulits”, the street-corner vegetable stalls that still rely on cash.
She expects commercial status to arrive within weeks, after which StarPay will apply for a point-of-sale permit and bundle enterprise resource planning software for clients.
Fenan Pay offers the latest proof that life after the sandbox can be brisk. Built by a team of bankers and tech specialists, the platform cleared requirements for commercial permits last week after a six-month pilot that logged more than 1.5 million transactions worth 1.5 billion Br. It operates on a near zero-commission model and integrates with Telebirr, CBE Birr, and M-Pesa, while also offering tools for retail, restaurants, and event ticketing.
The Chief Executive Officer (CEO), Yohannes Shewakena, board director, Biniam Mulisa, and Chief Strategy Officer, Abdi Mekonen, are driven by a single purpose of slashing transaction costs to zero. Fenan started with five million Birr in capital and expects to scale fast, even as Abdi fretfully noted the sector’s creeping fees.
“It should be lower than what it is now,” he said.
In the background stands the National Digital Payments Strategy. Only in 2020 did federal officials permit non-bank entities to operate payment services. According to Solomon Damtew, the central bank’s director of payment and settlement, the shift has been swift.
Digital financing reached 18 trillion Br, equivalent to three times the country’s GDP, through a mix of mobile transfers, digital loans, merchant payments and government transactions on systems such as Telebirr and CBE Birr. The surge reflects an expanding agent network with more than 128 million mobile-money accounts, interoperable QR codes, and links to digital IDs. Those are the foundations of the strategy’s second phase, running through to 2029, which vows to widen access, cut costs and promote inclusion.
However, Solomon is candid about unresolved threats.
“Most of the population is far from digital payments,” he conceded. “Fraud prevention and cyber-security will top the regulatory agenda.”
Betting platforms, meanwhile, have moved fastest. Betika taps Telebirr, SantimPay and Chapa; Arada Bet leans on ArifPay and Chapa; and Hulu Sport accepts an even broader mix, including M-Pesa. With punters placing wagers entirely online after city officials closed physical halls, the sector is forecast by Statista to draw 21.45 million dollars in 2025 and nearly 23 million dollars by 2029. The Lottery Administration clocked roughly one billion Birr in 2020.
Payment providers relish that volume, yet critics say the social cost is overlooked.
Jayson Peters, founder of the ETN Ecosystem and host of the YouTube channel ETHIO TECH with JayP, argued that digital finance is bypassing the people it was meant to help. According to him, financial innovations, “are enriching a few billionaires while bypassing small businesses,” the pillars of many economies. Jayson rails against the obsession with betting outfits, calling it “a toxic economic problem” likely to raise a generation of gamblers. The real hazard, he insisted, is not state-level hacks, monitored by the Information Network Security Administration (INSA), but social-engineering scams that prey on user ignorance.
“Digital financing is most of the time supported by immoral activities,” he warned, citing global cases of gateways tied to illicit trades.
Jayson proposes a grace period of up to a year for small gateways, allowing them to operate license-free, letting newcomers experiment with pricing. Big banks, he added, shoulder cloud-infrastructure bills that can amount to half a million Birr annually, while some gateways charge as much as six percent transaction fees. Even the state-owned Commercial Bank of Ethiopia (CBE) is tipped to raise its fees.
“Technology was supposed to make payment painless,” said Peters. “The prevailing model prizes fat margins from a narrow base rather than modest margins from the many.”
In 2021, the first volume of the digital payments strategy outlined bold metrics. Lift adult access to digital money from 20pc to 70pc by 2024, boost active mobile-money accounts from one percent to 40, digitise 80pc of government payments and increase merchants accepting digital tools from 5,000 to half a million. Annual per-capita digital transactions were set to climb from three to fifteen, with digital retail deals targeted at 40pc of the total, up from less than five percent at the start.
The agent force would swell from 20,000 to more than 250,000, and systems were meant to be fully interoperable.
For small operators like Desalegn, those targets feel distant. He orders his staff to insist on QR codes, collects screenshots by the dozen and still loses sleep over vanishing payments. The Central Bank’s sandbox may encourage innovation, the fintech crowd may chase betting firms, and the regulators may tout national strategies, but Desalegn needs something simpler. He wants to find a way to trust that the 250 Br plate of “Tibs” is actually paid for when the diner walks out the door.
Until then, the cashless future looks decidedly fragile.
Loading your updates...