Tax compliance in Ethiopia has a long way to develop. According to the International Monetary Fund (IMF), the amount of dodged taxes in the 2009/10 fiscal year amounted to ETB19 billion, which accounted for 5Pct of gross domestic product (GDP) that year. This money would have covered more than 20Pct of the amount the nation spends on the construction of the Grand Renaissance Dam. In order to reduce this, the government enacted a plan to improve tax evasion, particularly when it arises from contraband and illicit business activities. But all these years later, has the plan proved fruitful? EBR’s Ashenafi Endale explored the issue to learn the details of what’s worked and what hasn’t.

Local demand for furniture is increasing rapidly. According to the Ethiopian Revenues and Customs Authority, 584,538 units of furniture were imported in 2011; that figure grew to 20,415,495 in 2015. This growth, however, is largely benefiting foreign companies – not local furniture producers. The latter identify a number of bottlenecks in accessing the market to meet this increased demand. EBR’s Bantayehu Demlie spoke with foreign companies, local producers and government officials to learn more about these bottlenecks and what can be done to overcome them to improve domestic firms’ performance and profitability.

Political volatility can impact economic performance like any other risk often associated with business operations, especially in developing countries. This has been the case for Ethiopia, where the protests in the State of Oromia have affected businesses – resulting in the government having to compensate investors upwards of ETB100 million. In order to mitigate potential risks and create a better environment for investors, Ethiopia has its eyes set on joining the African Trade Insurance Agency (ATI). EBR’s Bantayehu Demlie spoke with individuals close to the issue to learn the intricacies of the decision to join the ATI.