Pandemic Pushes 55m Africans into Poverty; Ethiopia, Nigeria Top List: UN


Pandemic Pushes 55m Africans into Poverty; Ethiopia, Nigeria Top List: UN

The COVID-19 pandemic has pushed an estimated 55 million Africans into poverty, with Ethiopia and Nigeria the major sources for the "new poor" created over the past two years, according to the annual economic report on Africa published by the UN. The report reveals that African governments spent 2.2 billion dollars on fiscal stimulus in 2020, with overall fiscal spending doubling to 3.3pc of gross domestic product (GDP). It warns the continent's debt-to-GDP ratio will remain above the 60pc threshold the IMF considers sustainable. Three African countries – Ethiopia, Chad and Zambia – have applied for debt relief under the G-20 common framework. There has yet to be a concrete decision on Ethiopia's request. Data obtained from the World Bank reveals interest and principal payments on external debt of 2.2 billion dollars are due in 2022. The situation is more daunting in the face of a costly war in the north, which the federal government says has caused 40 billion Br in losses due to a "decline in economic activity." The war in Ukraine is exacerbating challenges, with global prices for wheat, petroleum, cooking oil, and fertiliser spiking to record highs since fighting broke out in Eastern Europe earlier this year.

[ssba-buttons]

Radar

Milkii App Disburses 25 Million Br in Collateral-Free Loans in Two Months

Oromia Bank's new collateral-free digital lending app, Milkii, has disbursed 25 million Br in loans without requiring collateral. Of this, 16 million Br has already been repaid, generating 1.4 million Br in revenue within just two months. Developed in partnership with Quantum Technology PLC, the app plans to make lending more accessible and inclusive, aligning with Oromia Bank's contribution to the Digital Ethiopia initiative. According to a press release, Milkii promotes financial inclusi...


Radar

Ethiopia Partners with UK to Ease Shipping Bottlenecks

The Ethiopian Freight Forwarders & Shipping Agents Association (EFFSAA) and the British International Freight Association (BIFA) signed a memorandum of understanding (MoU) on May 27, 2025, at Hyatt Regency Addis Abeba, to address skills gaps, customs delays, and corridor inefficiencies in the freight and logistics sector. The partnership focuses on technical cooperation, training, and regulatory reform. With over 90pc of trade dependent on the Djibouti corridor, rising congestion, customs...


Radar

Education Authority Sanctions Mishqen College for Rule Violations

The Education & Training Authority has issued a decisive directive last week, mandating legal action against Mishqen College for persistently defying regulatory orders and unlawfully continuing to offer higher education services. Mishqen College had previously been licensed to conduct undergraduate distance learning programs across multiple regions from 2019 to 2022. However, after serious regulatory breaches, the institution was ordered to cease all instruction, complete pending academic...