The Intertwined Challenges of Building Strong Institutions, Navigating Political Flux, and Empowering a Thriving Middle Class

Exploring the dynamic relationships and interactions among institutional weakness, political instability, and the state of the middle class in Ethiopia is an exciting exercise. The interplay of these three key elements is currently shaping the Ethiopian society. Understanding their relationship is essential for informed decision-making, effective policy formulation, and promoting sustainable and inclusive development in the country.

The dearth of entrepreneurs has long been a binding constraint on Africa’s economic development. To remedy it, African governments should foster business environments that ensure a level playing field and coordinate their actions at the regional and continental level.

As geopolitical interest in the Red Sea grows, understanding and applying the lessons learned from other maritime regions will be crucial to ensuring its stability, writes Omar S Mahmood, a senior researcher at the Institute for Security Studies (ISS) Addis Ababa Office in a commentary published in 2019.

The Ethiopian government is busy establishing a local capital market after a long deliberation. A lot of initiatives are underway to complete the plan. This is probably one of the few shifts the new government has taken from the old revolutionary democrats.

A capital market is another form of financial intermediation, like banks, to supply the necessary finance for economic investments. In some instances, however, it takes a different route than banks; it thrusts into investments that are too risky and too long for commercial banks.