@UNESCO – Ethiopian Business Review

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A new report by ActionAid has revealed the devastating impact of austerity-driven budget cuts on health and education systems across six African countries, including Ethiopia. The study, titled “The Human Cost of Public Sector Cuts in Africa,” highlights a significant decline in public investment and the consequences it brings for both workers and communities.

Surveying more than 600 healthcare workers, teachers, and community members in Ethiopia, Ghana, Kenya, Liberia, Malawi, and Nigeria, the report found stark indicators of crisis. Teachers’ salaries have dropped by up to 50% over the past five years, and 97% of healthcare workers reported that their income no longer covers basic needs such as food and rent.

In Ethiopia, the situation has grown particularly severe. There is a dire shortage of affordable medical supplies, with residents forced to seek care at high-cost private clinics. “Five years ago, we could buy antimalarial drugs for 50 birr. Now it costs over 500 birr in private centers,” said Marym, a resident of Muyakela Kebele.

The education sector is also under immense pressure. Across the surveyed countries, 87% of teachers reported a lack of basic teaching materials, often having to cover these costs out of their own pockets. “With over 200 students and no resources, delivering quality education is nearly impossible,” said Maluwa, a primary school teacher from Malawi.

ActionAid attributes these widespread challenges to austerity policies promoted by the International Monetary Fund (IMF). The organization argues that IMF-driven fiscal frameworks encourage governments to prioritize debt repayments over essential public spending. For instance, in 2024, Nigeria allocated just 4% of national revenue to health, while over 20% was directed to servicing foreign debt.

“The IMF’s push for austerity is forcing countries to sacrifice essential services,” said Andrew Mamedu, ActionAid Nigeria’s Country Director. “Governments must prioritize people, not debt.”

In response, ActionAid is calling for increased investment in public services through fair and progressive taxation, and a shift away from harmful economic policies that deepen inequality and weaken public institutions.

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Ethiopian Airlines, Africa’s largest carrier and one of the world’s fastest-growing airline brands, has marked a significant milestone with the graduation of 974 aviation professionals from its Aviation University. The graduation ceremony, held on May 3, 2025, at Ethiopian Aviation University in Addis Ababa, was attended by ambassadors, international representatives, airline executives, graduates’ families, and distinguished guests.

The graduates specialized in various fields including Aircraft Maintenance (184), Pilot Training (43), Cabin Crew (448), Commercial Operations (255), and Hotel Operations (44). The cohort represents a diverse mix of African nationalities, alongside international trainees, with notable representation from China. Among them are 38 Chinese, 34 Congolese, 19 Mozambicans, 8 Cameroonians, 2 Gabonese, and one each from Zambia, South Sudan, Uganda, and Sierra Leone. Of the total graduates, 614 are female and 360 male—underscoring Ethiopian Airlines’ commitment to gender inclusion in the aviation industry.

“This is a proud moment for Ethiopian Airlines,” said Group CEO Mr. Mesfin Tasew. “Our graduates have demonstrated exceptional dedication and academic excellence. I am confident they will carry forward the values, skills, and knowledge they have gained here. Ethiopian Aviation University, with its advanced technologies and expert faculty, will remain a beacon of aviation excellence for Africa and beyond.”

Established nearly 70 years ago, Ethiopian Aviation University has trained over 20,000 aviation professionals from Ethiopia, across the continent, and internationally. Since earning university status in March 2023, the institution has expanded its academic offerings to include degree programs such as BSc in Aeronautical Engineering, BSc in Aircraft Maintenance Engineering, BSc in Aviation Management, BA in Tourism and Hospitality Management, and an MBA in Aviation Management.

The university currently operates in Addis Ababa, Hawassa, and Dire Dawa, with a capacity to train approximately 4,000 students annually. Under Ethiopian Airlines’ long-term “Vision 2035,” that number is expected to grow to 7,000 in the coming years.

This latest graduation not only reaffirms Ethiopian Airlines’ leadership in aviation training but also highlights its enduring partnership with China. The airline was the first African carrier to establish direct flights to China in 1973, a relationship that continues to deepen through education and skill transfer.

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Ethiopia has been selected by the International Atomic Energy Agency (IAEA) to host a bachelor’s degree program in nuclear science and technology for African member states.

The announcement was made by Ethiopia’s Ministry of Innovation and Technology, which revealed that a strategic agreement has been signed between the IAEA, the Government of China, Tsinghua University, and Addis Ababa Science and Technology University (AASTU) to establish the continent’s first IAEA-backed undergraduate program in nuclear engineering based in Ethiopia.

The initiative is designed to build long-term capacity in nuclear science across the African continent—particularly in sectors such as health, agriculture, mining, environmental management, manufacturing, and energy. The program will also serve Ethiopia’s domestic needs by nurturing a new generation of nuclear engineers and technical experts.

Minister of Innovation and Technology, Dr. Belete Molla, described the agreement as a turning point in Ethiopia’s scientific advancement. “Ethiopia is emerging as a gateway to science and technology in Africa,” he said. “By hosting this program, we are not only accelerating our own development but offering access to a critical knowledge frontier for our African partners.”

He noted that Ethiopia’s selection followed an extensive negotiation process, during which its institutional readiness and regional relevance were emphasized. The program will support the country’s broader economic goals by integrating peaceful nuclear technology applications into national development strategies.

As part of the agreement, up to ten Ethiopian professionals will undergo a six-month specialized training at Tsinghua University in China—one of the world’s leading institutions in nuclear science. Upon their return, they will support the delivery of the degree program in collaboration with experts from China and the IAEA.

IAEA Deputy Director General for Technical Cooperation, Hua Liu, expressed confidence in Ethiopia’s capacity to lead the initiative. He emphasized the program’s broader economic implications, noting that the IAEA and the Chinese government will provide laboratory infrastructure and other essential resources to support implementation.

Ethiopia has signed a landmark agreement with the World Bank, securing a combined USD96.367 million (ETB12.5 billion) in grant and loan funding to advance the country’s education sector. The agreement, aimed at enhancing access to education and improving the quality of learning, was formalized by Finance Minister Ahmed Shide and Mariam Salim, the World Bank’s Director for East Africa.

Under the terms of the deal, USD50 million will be provided as a loan by the International Development Association (IDA), while USD46.367 million will come from the Global Education Partnership Fund. These funds are set to strengthen Ethiopia’s educational framework, particularly in pre-primary and primary education.

Key areas of focus include the capacity building of teachers for grades 1 through 6, the provision of pre-service teacher training aligned with the new curriculum, and support for school leaders, especially female leaders. Additionally, the project aims to create a digitally enabled education system, enhancing learning opportunities across the country.

Ethiopia Among Six African Nations Hit Hard by IMF-Driven Budget Cuts

Ethiopian Airlines Honors Nearly 1,000 New Aviation Students

Ethiopia to Launch Africa-Focused Nuclear Engineering Degree Program with IAEA Backing

Ethiopia Secures USD96.3 Million Grant and Loan from the World Bank to Boost Education