Just like any other aspects of the economy, the insurance industry had been significantly affected by the overall economic and other policies existed in Ethiopia. Though the potential for growth is strong, the insurance industry is not delivering as expected due to structural bottlenecks and challenges at macro as well as micro levels.
Hence, to develop the industry, and achieve the growth envisioned, deeper understanding of the realities on the ground and enabling legal and regulatory framework is needed. On top of these, broader understanding of the industry perspective through the value chain, establishing industry conduct that will enhance consumer trust, identifying growth avenues and by crafting right strategies is also required. Above all liberalizing the sector in every aspect is needed to emancipate the industry.
Last month, I was invited to speak at the York Festival of Ideas, an annual forum for debating alternative, predominantly progressive policy goals. I talked about my work on asset-price stabilization. Andy Wood of the consultancy Grant Thornton spoke about inclusiveness in business, Neil McInroy of the Center for Local and Economic Strategies discussed local organizing, and Ander Etxeberria of the Mondragon Corporation told us about their employee-owned cooperatives in the Basque Country. But, most importantly, Wanda Wyporska of The Equality Trust gave a fascinating talk about the principle of “equality for all.”
US President Donald Trump’s erratic unilateralism represents nothing less than abdication of global economic and political leadership. Trump’s withdrawal from the Paris climate agreement, his rejection of the Iran nuclear deal, his tariff war, and his frequent attacks on allies and embrace of adversaries have rapidly turned the United States into an unreliable partner in upholding the international order.
In Ethiopia, micro finance institutions (MFIs), which were mostly founded with the aim of fighting poverty, play a big role in addressing the needs of people who are considered ‘high-risk’ by commercial banks. In a country where over 77pct of the population is unbanked, MFIs provide loans to the large portion of the population with very few assets.
Wide Spread Contraband Trade Cripples Ethiopia
Contraband , part of the shadow economy, is still a threat to Ethiopia’s economy. But even more, it has recently started to affect the well-being of the nation. The recent violence in the states of Ethio-Somali and Benishangul Gumuz shows the severity of the problem. Items from textiles products to precious metals are traded by contrabandists. This has paved a way for a shadow economy to thrive, raising its contribution to the GDP to as high as 40Pct. EBR’s Ashenafi Endale investigates.
Head of governments across Africa convened in Beijing to attend a high-level summit hosted by China. The summit, which was also attended by Prime Minister Abiy Ahmed, is called the Forum for Africa-China Cooperation, FOCAC, and was organized with the aim of increasing diplomatic, economic and bilateral ties amongst the two sides. It started on September 3, 2018, and lasted for two days. The summit kicked off at a time when Chinese financial support to Ethiopia is being cut down.
