Ethiopia’s Ministry of Innovation and Technology is under intense scrutiny after a parliamentary committee uncovered a budget deficit exceeding half a billion birr (USD 9 million), alongside allegations of financial mismanagement and procedural violations.

The House of People’s Representatives’ Standing Committee on Public Expenditure Management and Control Affairs flagged multiple irregularities, including the misuse of public funds, failure to conduct pre-feasibility studies for key projects, and unauthorized budget reallocations. According to Chairperson Yeshimebet Demise (PhD), several government-funded and donor-financed initiatives were launched without proper consultation, leading to significant inefficiencies and unclear project statuses.

The audit findings revealed that multiple projects suffered from delayed execution and financial mismanagement, with some being terminated prematurely and their budgets reassigned without legal oversight. The committee has instructed the ministry to provide a detailed report on unauthorized expenditures—including transportation rentals, data center construction, and inflated employee salaries—within 15 days.

Concerns were also raised over the ministry’s human resource management, with recruitment processes failing to align with legal frameworks. Officials stressed the urgent need for systematic hiring reforms and the recovery of high-value government assets still unreturned by former employees.

Federal Auditor General Meseret Damte criticized the ministry for its failure to take corrective measures, stating that funds were allocated to projects that remain incomplete. The audit further exposed weaknesses in human resource and asset management, along with payments made outside legal provisions. The Federal Anti-Corruption Commission has been called upon to enforce accountability measures and oversee financial discipline within the institution.

Responding to the scrutiny, Minister of Innovation and Technology Belete Molla (PhD) admitted that audit deficiencies had occurred due to the complex nature of the ministry’s operations. He pledged to implement an action plan to address the financial and operational gaps, with updates to be presented to the standing committee.

He also highlighted that the ministry is engaged in numerous projects under the Digital Ethiopia 2025 initiative, in collaboration with the World Bank and other international partners. The minister assured that steps would be taken to rectify the shortcomings and enhance transparency in project execution.



 

In a major step towards expanding Ethiopia’s global trade connections, the Pakistan-Ethiopia Business Forum was successfully held at the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) Regional Office in Lahore. Organized in collaboration with the Ethiopian Embassy, the forum brought together senior officials and business leaders to explore investment opportunities between the two nations.

The event was presided over by HE Dr. Jemal Beker Abdulla, Ethiopia’s Ambassador to Pakistan and Special Envoy, alongside high-ranking representatives from Pakistan’s Ministry of Commerce, the Trade Development Authority of Pakistan (TDAP), and FPCCI officials. Notably, 26 business chambers from Punjab participated, highlighting the strong interest in Ethiopia as a key trade partner in Africa.

Addressing the gathering, Ambassador Jemal Beker emphasized Ethiopia’s strategic position as Africa’s business gateway, inviting Pakistani businesses to take advantage of the country’s vast economic opportunities. He outlined Ethiopia’s homegrown economic reforms, which have significantly improved the business climate, particularly in agriculture, manufacturing, mining, tourism, and ICT.

“The business community of Pakistan has a unique opportunity to invest in Ethiopia, benefiting from cheap, clean, and green energy, a large and skilled workforce, and unmatched connectivity to Africa and beyond,” the Ambassador stated. He also underscored Ethiopia’s role as a member of the African Continental Free Trade Area (AfCFTA), making it easier for investors to access Africa’s 1.4 billion consumers.

A major highlight of the discussion was the growing role of Ethiopian Airlines in bridging the economic ties between Africa and Pakistan. Ambassador Jemal Beker noted that Ethiopian Airlines has already launched flights from Addis Ababa to Karachi, with operations from Lahore expected to start soon. This expansion will facilitate smoother trade and investment flows, positioning Ethiopia as the preferred African hub for Pakistani businesses.

The forum also focused on the upcoming 5th Pakistan-Africa Trade Development Conference (PATDC) and Single Country Exhibition (SCE), set to take place in Addis Ababa in May 2025. The Ambassador urged Pakistani businesses to participate, stressing that these events will enhance bilateral trade and open new investment opportunities.

Senior officials, including TDAP Director General Abdul Karim Memon and FPCCI’s Pakistan-Ethiopia Business Council Chairman Ibrahim Khalid Tawab, reaffirmed their commitment to strengthening economic relations with Ethiopia. Manzoor Ul Haq Malik, Former Regional Chairman of FPCCI, praised Ethiopia’s leadership in fostering economic cooperation and assured continued engagement from Pakistan’s private sector.

Source: Business Recorder




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