Frontier technologies are being used to provide services via digital platforms that have spurred the creation of a ‘gig economy’. Some of this work is locally based, but there is also ‘cloud work’ that can be performed anywhere via the Internet. Using, adopting, and adapting frontier technologies requires sufficient ICT infrastructure, especially since AI, IoT, big data, and blockchain are internet-based technologies.
Ethiopia’s sources of finance are thinning, calling into question the sustainability of the large government-financed GDP expansion of the last fifteen years. The recent decision of the US to impose economic sanctions on Ethiopia has only worsened the situation of Ethiopia’s external financial sources, already crippled with high debts.
In a bid to maintain the 10Pct average annual growth, government needs to invest 37Pct of GDP—very difficult to fulfill from only tax and FDIs weakened by conflict and COVID-19. Even the highly expected telecom license sale did not garner expected amounts.
New investments are critical to maintain the pace of growth and fulfill the demands of a fast-growing population and fend off soaring inflation and unemployment. Finalizing the megaprojects of the past decade needs further investment and starting new ones seams dreamy. EBR’s Ashenafi Endale navigates alternative venues left for development financing.
Brook Taye (PhD), Senior Economic Advisor to the Minister of Finance
Brook Taye (PhD) is part of the pragmatist team serving Ethiopia’s swift economic reform and privatization process with great zeal. After concluding his education in comparative law and economics and high growth firms in three European universities, he worked as a regulatory analyst for an equity firm in Miami and other companies.
He argues that the telecom privatization which garnered a lot of interest only ended up with two bidders mainly because they failed to fulfil the requirements. He in fact claims that only four of the 12 interested bidders fulfilled requirements. He also argues the shift from state-led growth to a private-led one is not the result of Western pressure to liberalize the economy but a dire necessity to revamp and create a sound economy. The following are excerpts from EBR’s time with him.
Though birthed during the period of Ethiopia’s last emperor, the sport of golf was dealt an almost deadly blow ensuing the revolution as it was classified as bourgeoise. Slowly resuscitating for the past three decades, the infant sport is looking for a revival in these new-normal pandemic and post-pandemic times. It is being courted not only for its mental and physical health benefits, but also as a medicine for the economy through sport tourism. Two recent tournaments have given energy to the sport and its backers and believers. EBR’s Abiy Wendifraw takes a swing at the sport and its potential.
In less than half a century, traditional arts which were the core of the fabric of Addis Ababans, shied away as the capital was flooded by Western cultures and negative governmental pressure. However, few like Fendika Cultural Center, surfed against the odds and have managed to become a museum of traditional art in the center of fast-urbanizing Addis Ababa. Fendika is a repository of genuine traditional music, art, poetry, books, and handicrafts. It is also a hub for tourism and enjoyment, for both foreigners and ethnographic enthusiasts.
Melaku Belay is Founder, Owner, and Manager of Fendika. He is also an acclaimed Dancer, Choreographer, and Founding President of the Ethiopian Dance Association. He made traditional art as strong as gravity in attracting audiences. He is planning on expanding his establishment even further. EBR’s Samuel Habtab visited Fendika and chatted with Melaku and traditional art enthusiasts.
Over the past few decades, financial inclusion has remained among the top global agendas. In 2011, public institutions in 40 countries signed the Maya Declaration of Alliance for Financial Inclusion aimed at broader access to financial services at lower costs. Similarly, the World Bank began publishing comprehensive reports on financial inclusion in 2011. Ethiopia developed “The National Financial Inclusion Strategy” in 2017, containing several targets.
Since the 2005 Ethiopian national election, Civil Society Organizations (CSOs) have themselves been victims of a brutal government proclamation that suppressed them from advocating for human, election, and even gender rights. The number of active CSOs has halved over the past fifteen years.
Following the amendment of the restrictive proclamation in 2019, the number of CSOs has currently reached 3,200, an increase of 1,400 new and reregistered organizations.
Nonetheless, the role of CSOs remains a drop in the ocean especially when witnessing the increasing number of conflicts, humanitarian crises, and widening gap between the state and society. Further, only 236 CSOs are registered by the National Electoral Board of Ethiopia (NEBE) to observe the upcoming national election. EBR’s Mariamawit Gezahegn delves into the trajectory CSOs have endured and their persisting challenges.
Ambassador Birgitte N. Markussen, is Head of the European Union Delegation to the African Union as of September 2020. She has previously worked as Director at the European External Action Service (EEAS), beginning 2016 and also as Director of the Africa Department at the Danish Ministry of Foreign Affairs.
Her office in Addis Ababa is currently working on a range of packages introduced to strengthen the relationship between the two neighborly continents. With pressing issues such as the COVID-19 pandemic and migration, Markussen delves passionately into peace and security, investment and development, and even the future integration of the two continents. She argues a strong Africa is essential for a strong Europe. Addisu Derese, special to EBR, sat down with Ambassador Markussen. Excerpts follow.
For any political power aspiring to rule Ethiopia, controlling Addis Ababa is the ultimate accomplishment. Not only does the capital house all essential government organs, but Addis Ababa is mini-Ethiopia. All languages, ethnic groups, and regional states are represented and living in Addis Ababa, making it unique from the ethnic and language-based federalism seen in all other cities bar Dire Dawa to a much lesser extent.
At a sensitive time when the economy is suffering from inflation, unemployment, debt distress, poverty, conflict, and COVID-19, the nation prepares for the sixth national election to decide who rules for the next five years to end the transitional government that has been in power since April 2018.
Nonetheless, the political space is largely occupied by parties fanning and prioritizing ethnic quests instead of addressing underlying economic constraints. Ideology-based analysis and principled models for Ethiopia’s vicious economic circle are brands scarcely seen in the political parties’ campaigns. Out of the 47 political parties cleared to participate, 18 are competing for federal Parliament seats. While very few of the national parties have manifestos, even fewer have well-defined politico-economic policies to relieve voters of the ongoing economic strife.
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May 15, 2023
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