Blog – Page 41 – Ethiopian Business Review

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Currency Depreciation, Capital Outflows to Blame

Of the 17 Sustainable Development Goals of the United Nations to be achieved by 2030, eliminating hunger used to be seen as the most feasible. However, recent global events, including the COVID-19 pandemic and Russia’s invasion of Ukraine, have led to a significant setback. 15 years of progress on improving access to food have been lost. Despite global agricultural production being more than sufficient to meet the world’s nutritional needs, food insecurity is significant and rising everywhere, even in rich countries. The substantial increases in hunger in lower-income countries are especially worrying, and the situation demands immediate attention.

Bunna Bank S.C. held its 15th Annual General Meeting, announcing significant achievements despite challenges in the Ethiopian banking sector. Ambassador Alemayehu Sewagen revealed a profit before tax of 930.1 million birr for the fiscal year, with deposits reaching 43.87 billion birr—a 20% increase from the previous year.

In January, Ethiopia officially joined the BRICS group of emerging economies, which includes Brazil, Russia, India, China, and South Africa. This development has sparked optimism, as it promises new opportunities for economic growth, stronger international partnerships, and a more prominent voice on the world stage.

SantimPay Financial Solution held its 2nd annual ordinary general meeting of shareholders, where it reported processing over 44 million online transactions valued at ETB 16 billion, with a total merchant transaction volume of ETB 20,040.

Ethiopia’s recent policy to increase electricity tariffs, while essential for long-term energy sustainability, might become a double-edged sword. While the reform aims to attract investment and improve infrastructure, it also threatens to exacerbate economic hardships for many low-income households and businesses. However, it’s important to note that these reforms also hold the potential to significantly improve the country’s energy sector, paving the way for a more sustainable and efficient future. A careful navigation of this delicate balancing act is urgent, as the benefits of increased tariffs to improve investment needs to outweigh the opportunity costs to consumers. EBR’s Munir Shemsu navigates the intricate issue and offers this report, urging stakeholders to understand and support these crucial reforms.

The Missing Pieces in Addis Ababa’s Urban Transformation

In February 2024, Addis Ababa embarked on an ambitious urban transformation: the Corridor Development Project. With a staggering budget of 43 billion Birr, this initiative was intended to reshape Ethiopia’s capital, creating a dynamic, modern metropolis that would appeal to residents and tourists. The project aims to redesign the cityscape with new roads, pedestrian walkways, bike lanes, and green spaces, all part of a broader vision for a socially and economically thriving urban environment.

Since the COVID-19 pandemic, there has been a visible shift in how work is done globally. Indeed, the definition and form of work have changed over the years, even before. Across the world, many people have chosen to work from home. They prefer to freelance to avoid long commute times and offer themselves the flexibility freelancing offers. Freelancing and remote working have benefited many people in terms of financial gain and maintaining social responsibilities. The flexible hours have also made this route intriguing for employees. The rise of freelancing as a viable career path, particularly among young people, is a global phenomenon. Many consider it as an opportunity that can empower individuals to build their careers on their terms. Some companies also see the advantages of hiring freelancers because of cost-effectiveness, flexibility, and access to diverse talent. While freelancing offers many benefits, it may only be suitable for some, as it requires self-discipline, adaptability, and a willingness to take risks, reports EBR’s Dr. Brook Genene.

Despite boasting a majority youth population passionate about football, Ethiopia is yet to reach the heights the fans demand. Recent results of the national team are once again a reminder of how far behind the country is in its football development. One of the biggest challenges for football in Ethiopia is nurturing young talent. There needs to be more modern academies to develop youth and equip them for life as an international player. EBR’s Dr. Brook Genene looks at the challenges of youth football in Ethiopia and one academy trying to change the trend.

In the heart of Addis Ababa, a digital revolution is underway. AI-generated images rapidly replace human models in Ethiopian advertising, offering cost-effective solutions and unlimited creative potential. This transformation is not just a trend but a significant shift reshaping how brands communicate. However, it raises a profound question: What does the future hold for the human faces that were once the industry’s hallmark? EBR’s Mintesinot Nigussie delves into the thoughts of models and advertisers on the rise of AI, the challenges it poses to their craft, and the uncertain road ahead as creativity and employment intersect in this rapidly evolving landscape.

Yesterday, Ethiopia’s House of People’s Representatives approved a significant budget increase, adding ETB 582 billion to the 2017 fiscal plan and bringing the total to ETB 1.5 trillion. The government argues that this increase is necessary to revitalize the economy and fund critical subsidies. However, concerns are growing among experts who warn that the expanded budget could increase inflation and strain already fragile public finances.

Rising Food Prices Exacerbate Poverty in Developing Countries

Currency Depreciation, Capital Outflows to Blame

Bunna Bank Achieves 20% Deposit Growth and 930.1 Million Birr Profit Despite Challenges

Experts Say Trump’s Tariff Warning Will Likely Have Minimal Impact on Ethiopia

SantimPay Completes 44 Million Transactions Valued at ETB 16 Billion in Annual Report

Ethiopia’s Electric Shock A Balancing Act?

Transparency, Accountability

The Missing Pieces in Addis Ababa’s Urban Transformation

Freelancing Has Changed the Labour Market

Ethiopia’s Youth Football Academy Works to Break Barriers, Seeks International Recognition

The Rise of AI Models, the Impact on Advertising

Government Defends ETB 1.5 Trillion Budget Increase Despite Warnings from Economists