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.


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One major challenge in orthopaedic practice is the complications that may arise from traditional bone-setting methods among trauma patients. Many pediatric patients who experience trauma often visit local bone setters for repeated massages before eventually going to a hospital when complications arise. By this point, it may be too late to save limbs, forcing doctors, in many instances, to amputate to preserve the patients’ lives. This may result in permanent disability and impairment. EBR’s Dr Brook Genene examines how these traditional treatment methods can cause more harm than good in many cases. He explores potential solutions.


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In March 2021, right after the COVID-19 lockdown and restrictive public activities ended, Canal +, a French premium television channel, announced the launch of its services in Ethiopia. The channel, launched in November 1984 and broadcasts to Metropolitan France, decided to open its office in Ethiopia. The large French TV company already had operations in Francophone countries in West Africa and identified Ethiopia as a unique market with a large, youthful population passionate about football and eager for entertainment options. However, after over three years of broadcasting, CANAL+ Ethiopia has announced that it will shut down its services. EBR’s Dr. Brook Genene takes a closer look at the operations of CANAL+ Ethiopia and the challenges faced along the way that ultimately brought its service down.


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Abrehot’s Impact on Addis Ababa’s Intellectual and Professional Landscape

Drawing people from all walks of life, Abrehot Library has become a sanctuary of learning and connection in Addis Ababa. From eager students seeking quiet study spaces to ambitious business owners looking for a hub of innovation, this Library has transformed into a cherished haven. Its state-of-the-art facilities, rich collection of resources, and inviting atmosphere have created a magnetic pull, making it the go-to destination for the capital’s curious minds and entrepreneurs alike. EBR’s Mintesinot Nigussie walks through the wonders of Abrehot Library, uncovering how it has become more than just a library but a beacon of opportunity in Addis Ababa.


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The Plight of Stray Dogs Amid Addis Ababa’s Corridor Development

The corridor development in Addis Ababa has transformed the city with its modern aesthetics, improved pedestrian pathways, and advanced transit systems that enhance connectivity and foster economic growth. However, this urban transformation has come at a high cost, as many neighbourhoods have been demolished, displacing numerous families. In the wake of this upheaval, many domesticated animals, such as cats and dogs, have been abandoned, left to roam the streets in confusion, searching for owners who can no longer care for them. These animals’ struggles highlight the often-overlooked costs of progress and raise essential questions about our responsibility toward those affected by urban development. EBR’s Mintesinot Nigussie sheds light on the impact of these changes, sharing the real-life stories of these animals and their displaced families.


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In the business world, a merger refers to joining two companies into one entity. The concept has made headlines recently because the government is preparing to open the sector to foreign competition. This is the second time in recent years that the issue has taken Centre stage in Ethiopia’s financial news after the two state-owned banks – the Commercial Bank of Ethiopia (CBE) and the Construction and Business Bank (CBB)– ‘merged’ in December 2015. Advocates of mergers say they provide several benefits to the financial sector, the least of which is weeding out young banks, thereby strengthening the overall sector. Others, however, think that the concept may be too cumbersome for Ethiopia’s nascent private banking industry, which needs more time to mature. EBR updates an article published from the 4th Year • January 16 2016 – February 15 2016 • No. 35. We spoke with banking leaders and experts to get a better grasp of the concept and its potential role in Ethiopia’s fledging banking sector.


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Balancing Revenue Goals with Business Sustainability

In Ethiopia, the recent recognition of loyal taxpayers shines a light on the government’s efforts to enhance tax compliance amid ambitious fiscal goals. This recognition should make taxpayers feel appreciated and valued. However, as the country implements significant tax reforms to generate additional revenue, concerns arise from the business community regarding the fairness and impact of these changes, particularly on small enterprises. EBR’s Eden Teshome explores the dual perspectives surrounding Ethiopia’s tax landscape, highlighting the achievements celebrated during the recognition ceremony and the challenges businesses grapple with, such as increasing tax burdens and a complex regulatory environment.


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Once a darling of foreign investors, Ethiopia faces a complex web of challenges hindering its economic growth. Despite ambitious reforms and a promising future, the country’s investment landscape is marred by a series of setbacks.

Why has the much-anticipated influx of foreign investment yet to materialize? How have recent policy changes impacted domestic investors? What role does political instability play in deterring investment? And what can be done to revitalize Ethiopia’s economic potential, emphasizing the need for stable policies and peace for sustainable economic growth?

This in-depth analysis by EBR’s Munir Shemsu delves into these questions, examining the intricate interplay of factors that have shaped Ethiopia’s investment climate. From the impact of the war in Tigray to the challenges posed by the COVID-19 pandemic, this article sheds light on the multifaceted obstacles that impede Ethiopia’s progress, highlighting the need for a comprehensive solution.


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Ethiopia’s Banking Sector Navigates Uncharted Waters

Ethiopia’s banking sector is currently grappling with a severe liquidity crunch, causing significant distress to individuals and businesses. The effects are palpable, with delayed transfers, restricted cash withdrawals, and challenges in securing loans becoming the norm.

Why are banks struggling with liquidity? How have the government’s recent economic reforms impacted the banking sector? What are the real-world implications for businesses and consumers? And what steps are being taken to address the crisis? These are the pressing questions that need answers.

This in-depth analysis by EBR’s Munir Shemsu explores these questions, examining the root causes of the liquidity crisis, the challenges banks face, and the potential consequences for the broader economy. The liquidity crisis in the banking sector is not just a problem for individual banks or their customers. It has the potential to significantly disrupt the entire economy, affecting businesses, consumers, and investors alike.




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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