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PROSPERITY'S PROMISES, ETHIOPIA'S RECKONING


The incumbent Prosperity Party (PP) rallied 1,200 of its ranks amid a turbulent political and economic environment, convening its second convention five years after its establishment. Mustered for two days at a time when the country has been gripped...

Feb 1 , 2025


Fortune News

Banks Hike Lending Rates as Liquidity Tightens, Leaving Borrowers in the Lurch

A notable wave of lending rate increases is reshaping the financial sector, following major banks adjusting their rates upward, with some reaching as high as 22pc. Several banks, including Oromia, Coo...

Feb 2 , 2025

Money Market Watch

Banks Flinch, Central Bank Blinks, the Brewed Buck Burns

Birr (Brewed Buck) has been charting a steady course of depreciation against the Green Buck (U.S. Dollar) over six days beginning January 27, 2025. Although the rates across the banking industry gener...

Feb 1 , 2025

News Analysis

Global Bank Races for Growth, But Rising Costs Cast a Long Shadow

Global Bank (Ethiopia) ended its 2023/24 fiscal year by treading a narrow line between robust expansion and caution. It displayed a balance of deposit, asset, and lending growth while wrestling with m...

Feb 1 , 2025


Latest Updates

Authority's Coffee Ban Roils Industry as Exporters Cheer, Farmers Reel

The coffee industry is reeling after the Ethiopian Coffee & Tea Authority (ECTA) abruptly banned...

Feb 2 , 2025


Dispute Deepens at Addis Chamber as Abera Abegaz Challenges Election

The controversy surrounding the Addis Abeba Chamber of Commerce & Sectoral Associations (AACCSA...

Feb 2 , 2025


Central Bank Extends Loan Repayment Period for Tigray Businesses

Businesses and traders in the Tigray Regional State have been granted a one-year extension on loan r...

Feb 2 , 2025








Agenda

Economic Slowdown, Instability, Tax Burden Bang Small Businesses

Tesfaye Hora, a former Bajaj (three-wheeled vehicle) driver from Gebre Guracha in Oromia Regional State, once led a stable life. Earning between 700 Br and 900 Br daily, he provided comfortably for his wife and daughter. Determined to build a better...

Feb 2 , 2025


New Traffic Rules Add Financial Strain on Addis Abeba Drivers

Binyam Tesfaye, a 31-year-old father of two, is struggling under the weight of Addis Abeba's new traffic regulations. Earning 7,000 Br a month, he spends 5,000...

Jan 25 , 2025


Traditional Weaving Unravels as Chiffon Takes Over, Demands Dwindle, Costs Rise

Asamenew Arba, a weaver operating from a building housing micro enterprises near Shero Meda in northern Addis Abeba, faces severe difficulties in his trade due...

Jan 19 , 2025







Editorial

Addis Abeba's Costly Pursuit of Prosperity Bulldozes Dreams on Bargain Prices

Urban renewal is seldom gentle to those on the receiving end of redevelopment. Take several neighbourhoods of Addis Abeba where bustling life once thrived. Silence now reigns on them, bar the bulldozers flattening not only the land tens of thousands...

Feb 1 , 2025


Birr in Tumble, Reform Rhetoric Meets Bitter Economic Realities

Grand ambitions have long driven Ethiopia's successive leaders, but they remain weighed down by deep structural vulnerabilities. But, nowhere is this more evident than in the monetary policy front, where policymakers let market forces guide Birr's value agains...

Jan 25 , 2025

Breaking the Chains to Protect the Vulnerable During Painful Reforms

Adanech Abebie, the mayor of Addis Abeba, addressed last week a warm-up session for her party's upcoming convention, urging cadres of the Prosperity Party - Prosperitians - to embrace what she described as “broad and inclusive” gains. Her assertions might...

Jan 18 , 2025







Exclusive Interview

State Enterprises from Oracles to Apprentices

Charged with transforming colossal state-owned enterprises into modern and competitive powerhouses, the sovereign wealth manager, Ethiopian Investment Holdings (EIH), is at a defining moment. At the helm is Brook Taye (PhD), its third CEO since its founding in 2020, whose vision departs from convent...

Dec 22 , 2024


State Enterprises from Oracles to Apprentices

Charged with transforming colossal state-owned enterprises into modern and competitive powerhouses, the sovereign wealth manager, Ethiopian Investment Holdings (EIH), is at a defining moment. At the helm is Brook Taye (PhD), its third CEO since its founding in...

Dec 22 , 2024

Patience - Consistency - Respect

France's Ambassador to Ethiopia up until last week, Remi Marechaux, arrived in Addis Abeba four years ago with a dual mandate of representing his country and engaging with the African Union (AU). He dove into familiar waters from his previous role as Director...

Aug 4 , 2024







Viewpoint

Ethiopia's Closed Financial System Can't Open the Door to Innovation

For one-and-a-half decades, Ethiopia's state-led economic growth model generated impressive expansion in gross domestic product (GDP) but left behind a series of financial and structural complications. The grand vision of transforming the economy's fundamentals never progressed beyond rhetoric, and the ambitious structural changes that policymakers promised remain elusive. While recent reforms hav...

Feb 2 , 2025


When Companies Fail to Learn, They Learn to Fail

Investing in electric-vehicle battery production may seem like a sure thing. At first glance, Northvolt – the Swedish EV battery developer and manufacturer that filed for bankruptcy protection in November – appeared to have all the advantages and capabilit...

Feb 1 , 2025

The Trade Shifts Redefining Economic Development

Global trade is undergoing a profound transformation, driven by three major shifts. New technologies are redefining countries' comparative advantages and the types of goods they produce and export. The revival of activist trade and industrial policies threaten...

Jan 25 , 2025


My Opinion

What AI Means for Growth, Jobs

Some prominent economists argue that the revolution in artificial intelligence (AI), particularly the rapid development of generative AI, will have only moderate effects on productivity growth but unambiguously negative effects on employment, owing to the automation of many tasks and jobs. We disagree on both counts. When it comes to productivity growth, AI's impact can operate through two dist...

Feb 1 , 2025


In Green Energy Gridlock, Markets Alone Can't Power the Transition

The international community has long recognized the urgent need to reduce dependence on fossil fuels and shift to renewable energy, and in recent years many governments have pledged to reach net-zero greenhouse-gas emissions, albeit over extremely long timefra...

Jan 25 , 2025

Social Media as It Should Be

Mathematician Cathy O'Neil once said an algorithm is nothing more than someone's opinion embedded in code. When we speak of "the algorithms" that power Facebook, X, TikTok, YouTube, or Google Search, we are talking about choices made by their owners about what...

Jan 18 , 2025






Featured

City Embraces Yoga, Meditation for Wellness

Rihan Demsew, engaged in the import and export trade in Addis Abeba, sought a solution to her work-related stress and long hours, which led her to join a meditation and yoga centre. Rihan also lives with Rheumatoid Arthritis (RA), which presented her with numerous physical difficulties. Before beginning her training, Rihan struggled with everyday tasks such as bending to wear shoes, completing hand-related tasks, and climbing stairs, and she also experienced sleep issues. She knew that managing...

Feb 2 , 2025


Commentaries

Container Ships Keep Global Trade Afloat While the World Looks Away

Shipping is often overlooked as a foundation of global trade. Consumers easily recognise familiar brands, yet few can name the major maritime carriers that help deliver products worldwide. However, in recent years, logistics disruptions have thrust container shipping into the public eye. Remembering the crucial role shipping plays may inspire us to broaden our perspective the next time we pick up an imported product. The mobile phone users hold, or the laptop on their desk, likely contains co...

Feb 1 , 2025


News Analysis

Global Bank Races for Growth, But Rising Costs Cast a Long Shadow

Global Bank (Ethiopia) ended its 2023/24 fiscal year by treading a narrow line between robust expansion and caution. It displayed a balance of deposit, asset, and lending growth while wrestling with mounting operational costs and heightened provisioning to guard against credit risk in a volatile economic environment. The Bank, formerly Debub Global Bank, also responded to regulatory demands, moving forward with an ambitious rebranding effort. Private lenders expanded in the broader banking in...

Feb 1 , 2025


Delicate Number

2

The size of domestic debt in Birr, which grew by 20.1pc in a single year of 2023/24 due to Birr's loss of value against the Dollar since the liberalisation of the forex regime in July 2024.  

Feb 1 , 2025


Fineline

Leaders of the National . . .

Leaders of the National Election Board are in a charm offensive mood, of a sort. Last week, they organised a rare tour for members of the media, showcasing what polling stations will look like during the upcoming national elections; and they took the...

Oct 3 , 2020


Verbatim

"You're derailing the economy."

Alemu Sime (PhD), minister of Transport, has raised alarm over the growing presence of makeshift checkpoints along the highways, where individuals and groups are levying illegal fees on drivers.



View From Arada

Misconceptions, Hasty Judgments Lead to Costly Mistakes

I had an errand to run, dropping off some clothes at Sunshine Laundry, my go-to spot for its quality service and convenient hours. The parking attendants guided me to an...

Feb 1 , 2025




Fortune Video




Sunday With Eden

The Vanishing Reverence for Marriage

Marriage is meant to be a lifelong bond, built on love, trust, and commitment. It is a promise to stand together through life's challenges. Yet, divorce rates in Addis Abeba are soaring, raising concerns about how this sacred institution is being tested in today's fast-paced, individualistic society. For some, marriage seems to be reduced to a social media event, wedding photos today, divorce a...

Feb 1 , 2025


Wash Hands, Save Lives

In a world scarred by health crises like COVID-19, one might expect handwashing to be a universal habit. Yet, many still neglect this simple, life-saving act, spreading diseases in the process. Hand hygiene is a basis of public health. It is a simple yet po...

Jan 25 , 2025

Acts of Kindness Create Lasting Legacies

A couple of weeks ago, I attended a wedding that felt like more than a union of two people. It was a moment of convergence, a celebration of love and a tribute to the enduring legacy of a dear friend who is no longer with us. The experience was an important...

Jan 18 , 2025


Life Matters

When Taxi Rides Become Unexpected Fare Collection Hassles

There was a time when taxi rides were moments of peaceful relaxation. I would lean back, sometimes fall asleep, and admire the passing scenery. I would observe people, listen to music, or watch videos. That is a far cry from my current commutes. Around 70pc of my phone time is spent on work, spilling over into my taxi journeys and even the moments spent waiting for a ride. The tranquillity is gone...

Feb 1 , 2025


Breaking Stereotypes, Redefining Masculinity for a Just Society

A recent altercation in my neighbourhood has made me reflect on the complexities of conflict, especially among women. While I have never been involved in a physical fight, I have often vented my anger through shouting rather than aggression. This incident, ho...

Jan 25 , 2025

Media Coverage of Africa Skews Towards Negativity

My recent search for news about Africa revealed a frustrating trend: an overwhelming focus on conflict, death, and tragedy. While some business stories appeared, negative reports dominated the headlines. This imbalance creates a narrow and incomplete unders...

Jan 18 , 2025





Radar

Manufacturing Forex Allocations Surge, Ministry Reports

Minister of Industry, Melaku Alebel, reported that 369.11 million dollars in foreign exchange were availed to manufacturers by Ethiopian banks, achieving 79pc of the planned 468.42 million dollars. Last year, 274.1 million dollars was provisioned to the sector. During the Ministry's six-month report to Parliament, Melaku also revealed that 24.87 billion Br in loans were made available to large...

Jan 25 , 2025


Shipping Behemoth Beats Profit Target Despite Cargo Dip

Ethiopian Shipping & Logistics (ESL) announced its six-month performance report for the fiscal year, revealing a mixed outcome. While it achieved 95pc of its operational service target, handling 2,880,187tn of cargo, this represents a slight decrease compared to the same period in the previous fiscal year. The ESL attributed this dip primarily to global difficulties, notably Red Sea shipping d...

Feb 2 , 2025

In Picture

BENCH BOXES

In the lobby of its headquarters, Ethio Post, one of Africa's oldest postal services, has repurposed old post boxes as metal benches. Established in 1894 by imperial edict, the Ethiopian national postal service has a long history. While initially part of the broader communications infrastructure, postal and telecommunications services were separated in 1953. Ethio Post's head office building was f...

Feb 2 , 2025


HIDDEN REMEDIES

A pharmacy in Gotera has adapted its advertising strategy after the city administration's corridor development project left its building with limited frontage. The corrugated metal sheets surrounding the structure left only a small doorway, making traditional signage impossible. Undeterred, the pharmacy has found a resourceful way to announce its presence, demonstrating resilience and commitment t...

Feb 2 , 2025