A Ticking Time Bomb of Resource Scarcity & Ethnic Tensions

Since the early 1970s, Ethiopia’s population has tripled, growing within a subsistence economy and fragile institutions. Today, it is the second most populous country in Africa and 10th in the world, with over 120 million people. Projections indicate it will reach 130 million by 2032, underscoring the urgent need for resource management.

Large populations mean greater overall demand for essential resources like food, water, and energy, even if the growth rate remains slows. This is particularly problematic for countries that already face resource shortages. A country with a population of 120 million will need far more food, water, and healthcare than one with 20 million, even if both are growing at the same rate.

As the Ethiopian government initiates a new corridor development plan, banks find themselves at the epicentre of a collateral crisis. However, it’s important to note that the banking sector in Ethiopia has shown remarkable resilience in the face of these challenges. Recent studies by the National Bank of Ethiopia (NBE) reveal that the industry heavily relies on securing immovable properties as collateral for loans. With the prevailing lending practice and the concentration of collaterals along main roads, banks often prioritize these properties for security.

Reshaping Education, Business, and Development

The rise of remote work, fuelled by technological advancements, presents a global opportunity for development. While the COVID-19 pandemic accelerated its adoption, the groundwork was laid over the past 30 years. This shift allows individuals to access education and jobs regardless of location, empowering those without traditional access. Developing nations can capitalize by fostering entrepreneurial ecosystems to move beyond just outsourced work. Challenges like policy reform and potential social disruption exist, but the real game-changer is the promise of Artificial Intelligence (AI) advancements to streamline remote work’s benefits further. This exciting prospect for technology investors opens up a world of possibilities. Will governments seize this chance to drive growth and inclusivity? Charles Ferguson, a technology investor and policy analyst who is the Director of the Oscar-winning documentary Inside Job, argues in an article exclusively sent to EBR by PS.

An Opportunity for a New Insurance Solution?

Earthquakes, often regarded through the lens of traditions and beliefs as a divine punishment, rank among the most frightening natural disasters due to their destruction capacity and inherently unpredictable nature.

Geoscientists emphasize that Ethiopia’s diverse regions experience varying levels of seismic activity due to their location along the African Great Rift Valley region and tectonic plates. This underscores the urgent need for earthquake preparedness, as earthquakes have been a longstanding reality in Ethiopia, with numerous perceptible tremors occurring.

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.