After so many years of trials and setbacks during revisions, the Commercial Code has finally crossed the last legislative milestone, an approval by the Parliament on March 25, 2021, repealing the old Commercial Code of Ethiopia, which was in service for the last six decades. The revision started three decades ago, but partly because of the lack of institutional will and political instability, it has taken decades to get past the Parliament. The last two years of Ethiopia’s political transition have seen a flurry of major legislative reforms, and it is perhaps no coincidence that the revision of the Commercial Code has been successful during this period. Now, Ethiopia has a new insolvency law.

Samrawit FekiruApril 15, 2021


Samrawit Fikru’s Account of the Difficulties

The world has come to a grinding halt because of the coronavirus pandemic. Factories have stopped operations. Corporations that generated millions of dollars every day have ceased functioning. No one seems immune to the health, economic, and social hazards of the ongoing crisis. With no end in sight yet, businesses are being forced to lay off their highly valued employees as their expenses surpass the revenues they generate.

Michael SpenceApril 15, 2021


The accelerating rollout of COVID-19 vaccines in many advanced economies has set the stage for rapid recovery in the second half of this year and into 2022. Although growth in digital and digitally enabled sectors will level out somewhat, high-employment service industries will ride a wave of pent-up demand.

Abdulmenan MohammedApril 15, 2021


The news of the establishment of a capital market has been received with hype and enthusiasm. It is hoped that it would support the national economy through the mobilization of capital for new ventures, promotion of new financial products, etc.
The idea of forming a securities exchange was raised in the late 1990s and early 2000s. Unfortunately, with the emergence of the developmental state model in Ethiopia in the middle of the 2000s, the idea was shelved. More than a decade has had to pass for the issue to resurface. As part of the recent economic reform package, the agenda of establishing a securities exchange came to light. After two years of efforts, the Council of Minsters approved the establishment of a capital market. A couple years ago, when the idea gained increasing attention, it was promised that the market would be operational in 2020. But there is still much work to be done.

Tsegaye Tegenu (PhD)March 15, 2021


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.

Shimelis ArayaMarch 15, 2021


The negative impact on African economies of the COVID-19 pandemic was easily evidenced by the shrinking real GDP of all countries, according to reports released from international organizations. Reports further demonstrated that the extent of the economic slowdown in most countries is linked to the level of integration to the global value-chain, particularly to trade and tourism. A drop in world demand leads to a decline in prices for many of the primary commodities. Specifically, the economic contraction is bigger for exporters of fuel and horticultures. This hugely affected production and export of all economies. African countries through the African Union (AU) are calling to the world’s creditors to reduce or cancel debt. The demand for debt reduction is mainly due to the pandemic that has a devastating effect on the continent’s economy.

Abdulmenan MohammedJanuary 16, 2021


Over the past decade-and-half, the drive for industrialization through infrastructural expansion and mega industrial projects called for significant resource requirements. Ethiopia has little mineral exports to take advantage of a commodity price boom, so it must mobilize resources from local and foreign sources.

Stephany Griffith-JonesJanuary 16, 2021


Major global threats—including the COVID-19 pandemic, climate change, and rising inequality—call for large-scale concerted action. The challenge facing policymakers today is to support big structural transformations that can make economies simultaneously more productive, more inclusive, and less carbon-intensive. Public development banks (PDBs)—at the local, national, subregional, regional, or interregional level—are key to helping governments finance a rapid recovery from the COVID-19 crisis, and to ensure that economies serve people and the planet far better in the long run.

Abdulmenan MohammedDecember 16, 2020


Ethiopia’s financial system is characterised by a high degree of regulation, protection and poor use of technologies. The underdevelopment and traditional practices in the sector is even worse than the standard of neighbouring countries such as Kenya. For instance, the sector to GDP ratio (a measure of financial sector development) is half, and the number of banks is also less than half of Kenya’s. This difference becomes more notable when we consider Kenya’s 54 million population size as compared to Ethiopia’s 115 million in 2020.

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