The horrific reality facing patients

Patients with critical illnesses are finding themselves in serious predicaments after the recurring foreign currency shortage began to affect the manufacture and import of medicines. Families are being increasingly forced to turn to unregulated informal market sources to find life-saving medicine now, even as importers and health institutions look for solutions to the problem. However, it may be easier said than done. EBR’s Ashenafi Endale explores the causes of the shortage and what awaits patients in the future.

Since October 2017, the National Bank of Ethiopia (NBE) made a series of monetary policy adjustments such as devaluating the local currency, increasing the interest rate, and introducing a credit ceiling on commercial banks in an attempt to sustain the economic growth achieved in the last decade. However, the policy alterations have had mixed outcomes. Investors, especially those engaged in the service sector, complain about the lack of available credit, which they say worsened after the NBE made the policy changes. On the other hand, the banking industry continues to perform better despite challenges. EBR’s Samson Berhane investigates the different impacts of the monetary policy implemented in recent months.

In the first six months of the current fiscal year, the Ethiopian Revenue and Customs Authority (ERCA) collected ETB90.8 billion, which is 83Pct of the target set for the period and 39.5Pct of the target set for the current fiscal year. Officials stress that a growing number of taxpayers are declaring losses or no income on their annual income tax report and Value Added Tax (VAT) refund. Businesses argue that this is due to the slowdown of economic activities attributable to the scarcity of foreign currency, and recent political unrest in the country. Several companies claim that their sales turnover is declining while overhead costs rise, ultimately affecting their capacity to pay taxes. EBR’s Ashenafi Endale explores the situation. 

In terms of headcount, Ethiopia has the tenth largest livestock inventory in the world with 120.4 million cattle, sheep and goat. But the country isn’t making the most of it. Roughly 200,000 tons meat is processed annually, and less 10Pct of it is exported. EBR’s Ashenafi Endale explores the issue to find out why.

As Ethiopia’s most important sector, agriculture is a fundamental component in addressing the country’s development challenges. While agricultural output is improving, there are still major gaps in productivity that mechanization can help bridge. And while the benefits of mechanization are immense, the introduction of automated farming processes in Ethiopia has been limited. EBR’s Ashenafi Endale explores the issue and highlights the efforts taken to improve the situation.

Insurance is one of the key pillars of a modern economy. It contributes to mobilize savings, transfer risks and reduce financial losses.

The history of modern insurance in Ethiopia, especially the private sector driven one, is at its early stage. However, the sector is crippled with lack of innovative products and services. As a result, the industry lags far behind several African countries. The sector’s growth, especially in recent years, is marred with rising claims and declining premium rates. The stiff price based competition in the market contributed to this situation. EBR’s Ashenafi Endale explores the issue to offer this report.

Ethiopia is endowed with extensive natural resources such as fertile soil, abundant water resources and favorable climatic condition that make the country suitable for the development of different varieties of flowers, vegetables, fruits and herbs. Despite this, the country has not benefited from the sector as expected. 

Lack of adequate attention given to the sector by the government, years of insufficient investment by the private sector, and the absence of skilled human resource and technologies are among the major factors that thwart the country from reaping the benefits of its potential in the sub sector.

To avert the trend, Ethiopia, the second largest flower exporter in Africa after Kenya, recently launched the National Horticulture Development and Transaction Strategy. The strategy highlights the plan to create conducive environment for modernized horticulture development. EBR’s Mikiyas Tesfaye has gone through the document and conversed with major stakeholders to offer this report.

As the Ethiopian economy began to significantly expand in the last fifteen years, the demand for paper and paper products has also witnessed huge growth. In 2016/17 the demand for paper was 219,840 tons. However, the country managed to satisfy only 18Pct of the demand. The balance has always been matched by imports.

There are six companies currently engaged in the production of rolls of paper sheets from pulp and recycled paper. Although a small number of companies operate in the paper conversion sector, there is no paper mill company in the country. As a result, the country spends millions of scarce hard currency to import paper products. EBR’s Ashenafi Endale explores the issue to offer this report.