Sunpay Solutions Plc becomes one of the first two companies requested license from the National Bank of Ethiopia to operate their own Point of sales (POS) and ATM machines. Established with ETB100 million, Sunpay has planned to deploy 60,000 POS machines. The company is also in preparation to launch a digital financial service. The sister company of sunshine Investment Group that includes sunshine construction, planned to start operation by July 2021.
If there is a primary concern of governments in a modern state, it is the wellbeing and safety of its residents. At the heart of all the political turf-wars, reforms, revolutions, and fights, is the improvement of Society’s livelihoods. Nonetheless, the insecurity different social groups in Ethiopia face attests otherwise to the social contract.
Of all the social turbulences, none amount to the damages unleashed in the Tigrai region in northern Ethiopia. Regime changes have brought less for the ordinary people of Tigrai, usually mistaken for the elite rulers. After the lauching of military operations in the region, society has found itself between a rock and a hard place. EBR talked to victims, witnesses, humanitarians, and officials on the social crisis ongoing in Tigrai.
In today’s globalized world, FDI follows higher earning rates, provided a conducive business ecosystem is in place. Although most developed countries do not have investment-specific legislations there is competition amongst developing countries to adopt a more market-friendly policy to attract the much-sought FDI for their economic development.
The Ethiopian economy has been at the same level of growth and productivity for the last four decades. Economic growth, transformation, and development could not keep up with the speed and pressures of population growth. Unless population takeoff is backed by economic takeoff at the same time, the consequence is dire crisis. The population of the country has grown fast in these decades making Ethiopia the second-most populous country in Sub-Saharan Africa with a population of over 100 million. Currently, the Ethiopian population is increasing by over two million people a year.
Since Prime Minister Abiy Ahmed (PhD) seized power in April 2018, many political reforms targeting an improved human rights environment were introduced in Ethiopia. To this end, several oppressive laws, criticized for enabling human rights abuses in the past, have been revised.
The first of its kind Global Crypto Adaptation Index launched in September 2020 assessed and ranked 154 countries on their level of adaptation and use of different digital currencies, in 12 months.
The revision of the existing proclamation regulating different level chambers has caught the attention of the business community. In its final drafting stages, it will largely concern the organization and running of Ethiopian businesses under different chambers and sector-based associations. However, the changes offered in the draft proclamation have garnered stiff reservations and displeasure from the private sector. EBR’s Ashenafi Endale explores the business community’s concerns on the draft proclamation.
Myriam Said, Digital Advisor to the prime minister, is the leading personality behind Ethiopia’s stride towards the digital economy. She coordinates initiatives implemented to advance digital technology throughout the economy, currently at an early stage of development. Myriam’s promotion to advisor to the prime minister in February 2020 came as a result of her dedicated work when serving for nine months as Director of the National Digital Transformation Program at the Ministry of Innovation and Technology. While working as a director, Myriam led a team of experts who developed Digital Ethiopia 2025, an inclusive strategy guiding Ethiopia’s journey from analogue practices where government, business, and social interactions took place in person, to a fully integrated inclusive digital economy and society where exchanges are made faster, cheaper, and more securely through digital technology.
Ever since Ethiopia became landlocked after losing its access to the Port of Assab three decades ago, international trade has remained the Achilles heel of Ethiopia’s economy. The country’s dependency on imports could not be matched by efficient logistics services. Numerous service providers fight it out on one major route, the Ethio-Djibouti route, though it’s primarily primed for the state-owned carrier.
Coupled with low support provisioned, the closure of the logistics sector to foreign investors has stunted its growth.
Following the partial opening-up of the sector since 2018, a number of global shipping groups and logistics service providers are inking deals with local firms. Though late, the move is highly expected to buffer financial and knowhow transfers, long and eagerly awaited for by local players. EBR’s Ashenafi Endale looks into the trophies that could be won and persisting gaps haunting local logistics operators.
Daniel Zemichael, a father of three, is Founder and CEO of Freighters International, one of the biggest private shipping companies in Ethiopia. Established 35 years ago with ETB100,000 in capital, and growing to its current ETB20 million; Freighters International is the exclusive agent for Maersk, a Danish shipping company active in ocean and inland freight transportation. EBR sat down with the logistics guru, to converse on the expected impacts of recent governmental moves to allow foreign companies to own a minority stake in local logistics companies amongst other topics.
Ashenafi Endale
Mehrteab Leul
Tsegaye Tegenu (PhD)
Ethiopian Business Review