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.

Reforming Leadership Criteria in Ethiopia’s Insurance Sector

This analysis is penned sincerely to support the Ethiopian insurance sector, particularly in light of the existing deficiencies and the absence of a comprehensive policy and legislative framework for leadership development. This framework is essential for establishing and enforcing appropriate, non-discriminatory fit and proper criteria for selecting and appointing key personnel in leadership roles, even when compared to standards set by other financial institutions in Ethiopia.

Why Some Nations Lose & Others Gain

An Exploration of Development Dynamics

Stefan Dercon’s “Gambling on Development” offers a refreshing perspective on why some nations prosper while others remain impoverished. Drawing on his extensive experience as a development economist, Dercon argues that the key to understanding development lies in the intricate interplay between political elites and the broader societal context.

Ethiopia has been grappling with a severe foreign exchange shortage for many years, fueling a thriving black market. The government’s frequent response – a crackdown on illegal currency trade – has solved the problem.

In this commentary reprinted from 7th Year • Nov.16 – Dec.15 2018 • No. 68 of EBR, Tekie Alemu (PhD), a retired associate professor of economics at Addis Ababa University, provided an in-depth analysis into the heart of the problem, exploring the intricate dynamics of supply and demand in Ethiopia’s foreign exchange market. From the role of the diaspora to the pitfalls of government intervention, the article offers a fresh perspective on this pressing economic issue. The assistant professor explains how a legalised foreign exchange market could inject efficiency and transparency into the system while empowering commercial banks to focus on their core competencies.

– in retrospect from EBR 68 published from 7th Year. November 2018.

Ethiopia’s ambitious Green Legacy Initiative aims to transform the nation into a green paradise. However, the looming threat of climate change and natural disasters casts a shadow over this vision. Forest insurance emerges as a crucial safety net. This commentary by insurance insider Fikru Tsegaye Wordofa delves into why Ethiopia urgently needs this financial safeguard. The article shows how forest insurance can protect the country’s invaluable green assets, bolster the economy, and contribute to a sustainable future.

Telecoms will lead the Charge, Can Banks Keep Up?

Although commercial banks in Ethiopia introduced a digital payment system some time ago, it has made considerable strides over the past few years as telecom operators with far more customer base than banks were allowed to provide the services. The expansion of the digital payment system has been challenging banks at the trial level, as it involves payment services and small credits. Commercial banks have come to a common understanding that they have already lost the retail aspect of their operations to telecoms.

Ethiopia’s Multifaceted Fight against Inflation

Ethiopia’s recent decline in inflation, from a staggering 33.5% in April 2023 to 23.3% in April 2024, offers a glimmer of hope for the nation’s economic stability. However, the fight against inflation remains far from over. Etsubdink Sileshi (PhD), EBR’s Economic Research & Business Intelligence Unit Director, delves into the factors that contributed to this decline and analyze the complex relationship between inflation, infrastructure development, and Ethiopia’s pursuit of rapid economic growth.

The Evolution of Corporate Governance in Ethiopian Banks

Recently, the National Bank of Ethiopia (NBE) has issued a series of directives about the banking industry. These include directives such as “Requirements for Persons with Significant Influence in a Bank” and “Bank Corporate Governance.” One area that gained attention for reform is bank corporate governance. Deficient corporate governance practices in the banking industry have required repeated NBE interventions. In the past year alone, the controversies around Nib Bank and Amhara Bank and the subsequent NBE interventions indicate the situation.

Choices on Wealth, Environment, and Public Goods

What is the role of government in modern economies? Is it possible to create a more equal society without sacrificing economic freedom or wealth? Should we emphasize equal opportunities or equal outcomes? The idea of “inclusive growth” seeks to strike this balance.

Since the term can be open to interpretation, let me offer a definition: Inclusive growth seeks to boost national wealth and well-being while reducing poverty, ensuring equity across generations, and preserving economic freedoms.