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Once a bustling capital, Mekelle now wears the scars of Tigray’s brutal conflict. Its unfinished buildings and neglected shops whisper of lost opportunity, while cheap beer and quiet pubs offer solace from the harsh reality. Young people yearn for a brighter future elsewhere, fleeing to Europe or fearing jobs and famine.

The war’s economic wounds are deep. Infrastructure lies in ruins; businesses are largely looted, and unemployment soars while inflation reaches the rooftop. Hospitals struggle with staff shortages and non-payment, driving skilled doctors away in mass exodus. The spectre of famine is looming while the regional government cries for funds. Tourists, once plentiful, now stay away, deterred by images of hunger and instability in the region.

Indeed, Mekelle grapples with its new reality – hosting internally displaced people with meagre resources.
EBR’s Samuel Getachew visited Mekelle to understand how rough the road to recovery will be. He reports that it will take a concerted effort of international donors, local and federal governments, and citizens for Mekelle to rise again from the ashes and for its people to rebuild a brighter future.


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As long as women achievements are concerned within the African continent, this year’s Women History Month was a humbling year.

The reality remains most African women still lag behind in all sector of society, especially in areas of economic advancement where the World Bank estimates, a majority of African women, to the tune of more than 70 Pct remain excluded by financial institutions. This is something African nations are trying to address but the status quo remains.


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Debt Restructuring Crucial for Regaining Stability, Driving Future Growth

Ethiopia has made significant progress in addressing its debt burden. The country has agreed with some of its official bilateral creditors to suspend debt-service payments temporarily. The Ministry of Finance has also entered into negotiations to restructure a one billion dollar Eurobond that will mature next year. This development holds great promise for Ethiopia’s economic stability, enabling it to effectively manage its debt obligations and pave the way for a sustainable financial future.

However, Ethiopia faces significant challenges in its current financial situation. Limited availability of foreign currency has impeded the country’s ability to meet its foreign exchange needs, as funding from non-governmental organizations and other sources also diminished. The widening exchange rate between the parallel market and the formal market has been one of the primary reasons for the reduction in remittance inflows. Additionally, the adverse effects of the COVID-19 pandemic, internal conflicts and a decline in tourism income have exacerbated Ethiopia’s financial difficulties.

Addressing these challenges and ensuring a brighter economic future for Ethiopia hinges on successful debt restructuring. This process makes debt obligations more manageable, freeing up resources for essential investments. In this insightful report, EBR’s Najat Ahmed delves deeper into the complexities of Ethiopia’s financial situation and the prospects for successful debt restructuring. By tackling its current obstacles and seizing opportunities for sustainable debt management, Ethiopia can pave the way for a more stable future.


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Ethiopia is rapidly developing into a promising hub for startups and innovation. The recent agreement between the Ministry of Innovation and Technology and the Addis Ababa City Administration to establish astate-of-the-art startup city further fuels optimism for the future of the country’s startup ecosystem. While the success of the startup city is yet to be seen, the initiative carries significant promise for Ethiopia’s future. By addressing key challenges and fostering a vibrant ecosystem, the city has the potential to propel Ethiopian startups onto the global stage and contribute significantly to the country’s economic and social development. EBR’s Eden Teshome explores.


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Ethiopia is implementing a national ID system to modernise governance and empower citizens. This transformative initiative provides unique identification numbers, streamlines access to government services, and promotes inclusivity. The system utilises advanced technologies like biometrics and secure databases to ensure accurate verification and protect privacy.

The national ID system fosters economic growth, attracts investment, and empowers marginalised communities by enhancing service delivery efficiency and promoting equal access for all citizens. It also improves security by reducing identity theft and fraudulent activities. However, challenges such as the lack of financial resources and ensuring accessibility in remote areas need interventions to see the project achieve its goals to the fullest. Overall, Ethiopia’s national ID system is a cornerstone of digital governance, driving progress and prosperity for the nation. EBR’s Nejat Ahmed explores.


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Ethiopia’s reputation as an investment hub has been tarnished by issues such as corruption, lack of foreign exchange, inter-ethnic conflicts, and intermittent violence. Because of these conflicts, agricultural exports particularly sesame, coffee, flowers, fruits, vegetables and others have been severely impacted. Exporters face difficulties in finding markets, dealing with rising costs domestically, and navigating security risks which have heightened the business risks they face. The government’s focus on obtaining foreign currency to service its debts and finance the import of key commodities such as fertilizer and fuel has further strained the business environment. The cancellation of Ethiopia’s membership in the African Growth and Opportunity Act (AGOA) by the United States has further affected exports, especially in the garment and apparel industries. Some exporters are considering selling or abandoning their investments, while others are exploring opportunities in the local market as an alternative. Despite these realities, Ethiopia has recently ranked at the top among countries offering vast business prospects in Africa according to the 2023 Africa Risk-Reward Index which was published last September by the Africa Oxford Economics. EBR’s Samuel Getachew dives into the report and discusses the multifaceted challenges local and foreign investors face the prevailing business environment.


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Examining the Ramifications of Not Opening New Public Posts

When the Ethiopian government announced its intention of not opening new posts in the civil service in the current fiscal year, the news shocked students and graduates. For many years, employment in the public sector has guaranteed a stable life. In a changing scenario now, public sector employment is no longer a guarantee for a decent income and regular life. In recent years, the salary and benefits of public sector employees have been minimal. At the same time, the working environment compromises professional freedom as more public sector roles have increasingly become political. That’s because successive governments used the civil service to reward their loyal supporters by offering employment.

For this reason, the civil service is already crowdedly staffed, many of whom need to be more skilled. It’s one of the reasons why the current government found it difficult to institute an efficient and corruption-free civil service. Like its predecessor, it, too, wanted to reward some of its loyal supporters by granting them employment in the earlier days of its ascendancy. However, due to a solid fiscal discipline needed to curb inflation, the government announced its intention of not opening any new posts last July. EBR’s Nejat Mohammed explores the ramifications of this policy.  


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A Cost-Benefit Analysis

The recent announcement of Ethiopia’s accession to the BRICS alliance signifies a transformative milestone for the country and the broader African continent. As BRICS expands its ranks, its influence in the global economy also increases and offers more opportunities as an alternative source of development finance. This move is very beneficial to Ethiopia, which has been looking for alternative sources of finance. However, there are concerns that this move will bring as Western countries are wary of the growing influence of China and Russia, two of the major superpowers that are contending against America’s dominance of the current global order. EBR’s Eden Teshome highlights the potential benefits and implications of Ethiopia’s membership in BRICS.


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The Unintended Consequences of AI on Education

Artificial intelligence (AI) tools have rapidly transformed how we live and work. This is evident in both developed and developing countries. AI has become an integral part of our daily lives, from self-driving cars to virtual assistants. Even though Ethiopia has yet to reach that stage, more advanced countries are already experiencing such transformative changes. However, the impact of AI tools is only sometimes positive. The emergence of ChatGPT, an AI-powered language model developed by OpenAI, capable of generating human-like text based on context and past conversations, has raised concerns among academic experts and professionals in education due to the possible hazards of ethical issues in schools like cheating and motivating students to put out the least amount of effort. In this article, EBR’s Eden Teshome assesses AI’s advantages, drawbacks, and limitations in the education sector.  


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The Ebbing Drift in the Industrial Sector

Ethiopia has undergone an economic transformation in recent years, driven by a comprehensive homegrown economic reform agenda launched in 2019. The plan prioritizes the development of various industries, including agriculture, construction, manufacturing, resources and energy, tourism, and food processing, to drive economic growth and reduce dependency on imports. However, despite the government’s efforts to revitalize the industry sector, recent data shows a significant decline in its contribution to the country’s economy over the past five years. EBR’s Bamlak Fikadu dives deep into Ethiopia’s recent industrial performances. 




Ethiopian Business Review | EBR is a first-class and high-quality monthly business magazine offering enlightenment to readers and a platform for partners.



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