USAID Resumes Food Assistance in Ethiopia Following Significant Reforms

USAID Resumes Food Assistance in Ethiopia Following Significant Reforms In a major step towards humanitarian aid reform, the United States Agency for International Development (USAID) announced the resumption of food assistance across Ethiopia starting next month. This decision comes after months of diplomatic engagement and negotiations led to major reforms in Ethiopia’s food assistance structure. Jessica Jennings, a spokesperson for USAID, highlighted the United States’ commitment to providing life-saving aid to the most vulnerable. The reforms, which include enhanced oversight and improved beneficiary selection processes, aim to ensure that aid reaches the intended recipients, particularly those experiencing acute food insecurity. The Government of Ethiopia has agreed to operational changes to strengthen the identification and approval of beneficiaries based on vulnerability criteria. These changes are part of a one-year trial period during which USAID, along with its implementing partners, will closely monitor and evaluate the effectiveness of the reforms. Key aspects of the reform include strengthening program monitoring, reinforcing commodity tracking, and improving beneficiary registration processes. The Government of Ethiopia has also committed to providing unimpeded access for USAID and third-party monitors to review various sites across the country. This development is seen as a significant step in ensuring that U.S. humanitarian assistance is used effectively and reaches those in dire need. With a substantial number of Ethiopians requiring food assistance, these reforms are expected to facilitate the delivery of aid and ultimately save lives. Tags ethiopia ethiopia news today ethiopian news

Ethiopia’s Economic Outlook: Prime Minister’s Optimism Contrasts with Fitch Ratings’ Downgrade

Ethiopia’s Economic Outlook: Prime Minister’s Optimism Contrasts with Fitch Ratings’ Downgrade Ethiopia’s GDP Growth and Fitch Ratings’ Concerns While Ethiopian Prime Minister Abiy Ahmed (Dr.) projected a rosy picture of the nation’s economic growth in his recent parliamentary address, citing a doubling of the GDP to approximately $164 billion, a contrasting perspective emerges from Fitch Ratings. On November 2, 2023, Fitch Ratings downgraded Ethiopia’s Long-Term Foreign-Currency Issuer Default Rating (LTFC IDR) to ‘CC’ from ‘CCC-‘, raising concerns about the country’s economic vulnerabilities. Prime Minister Abiy’s Address: A Vision of Prosperity During the 4th regular meeting of the 3rd year of the House of Representatives, Prime Minister Abiy Ahmed emphasized Ethiopia’s economic achievements. He highlighted the significant rise in GDP and per capita income, positioning Ethiopia as a rapidly growing economy. The Prime Minister stressed the importance of national unity and support for the National Consultative Commission, which he believes is pivotal for the country’s progress. Fitch Ratings’ Downgrade: A Warning Sign Contrastingly, Fitch Ratings’ analysis presents a more cautionary tale. The downgrade reflects concerns over Ethiopia’s declining external liquidity and significant financing gaps, increasing the likelihood of a default event. The agency notes that Ethiopia’s already strained external liquidity is expected to worsen, with substantial sovereign external principal and interest payments due in the coming years. Key Factors Driving the Downgrade Fitch Ratings points out several key factors behind the downgrade: Ethiopia’s external imbalances have worsened, with current account deficits running high amid multiple shocks. Limited progress on the Common Framework for debt relief, with delays partly due to the Tigray conflict. Rising domestic financing costs, with the government increasingly reliant on domestic financing from the banking sector. A tight fiscal position, with low revenue collection and high spending on humanitarian and reconstruction efforts. Economic Challenges Ahead The downgrade by Fitch Ratings and the Prime Minister’s optimistic economic portrayal paints a complex picture of Ethiopia’s economy. On one hand, there’s an ambitious vision for growth and development, while on the other, there are looming challenges such as debt sustainability, strained liquidity, and inflationary pressures. Focusing on National Unity and Progressive Reforms In his address, Prime Minister Abiy called for nationwide support for the National Consultative Commission, emphasizing its crucial role in the country’s continued progress. He highlighted the need for seizing opportunities for change and reform, drawing parallels with missed opportunities in the past, such as in 1953. Tackling Educational and Health Sector Challenges Prime Minister Abiy addressed systemic issues in the education sector, stressing the need for comprehensive reforms to improve teacher capacity, education management, and infrastructure. He noted the construction of 18,000 schools in kindergartens with public participation, underlining the importance of education in national development. In higher education, the government’s approach includes accommodating students based on their 12th-grade exam scores, with provisions for those who pass compensatory exams. This strategy aims to resolve deep-rooted issues in the education system. In health, the Prime Minister acknowledged ongoing initiatives, including new hospital constructions and existing renovations. He discussed recent health challenges, such as cholera and malaria outbreaks, and the government’s efforts to mitigate these crises. Prime Minister Abiy Ahmed’s comprehensive address covered significant strides in Ethiopia’s economic, educational, and health sectors. His leadership focuses on legal solutions, prioritizing peace, addressing regional conflicts, and implementing educational and health reforms. These efforts collectively showcase Ethiopia’s path toward sustainable development, economic resilience, and national unity under Prime Minister Abiy’s guidance.

EthSwitch Unveils Game-Changing National Payment Gateway in Ethiopia

EthSwitch Unveils Game-Changing National Payment Gateway in Ethiopia Today marked a significant advancement in Ethiopia’s digital payment sector with the inauguration of the National Payment Gateway (NPG), developed by EthSwitch. The launch event, held in Addis Ababa, was attended by EthSwitch CEO Yilebes Addis, who introduced the NPG platform. This new development promises to transform the processing of online transactions nationwide. At the event, Solomon Desta, Vice President of the National Bank, praised EthSwitch for their groundbreaking work. He emphasized the NPG’s role in fostering digital financial inclusion by linking consumers, businesses, and financial institutions together. The NPG serves as a centralized digital platform, facilitating connections between merchants and various financial entities. It offers a secure interface for acquiring banks, microfinance institutions, and payment service providers to handle online transactions. This gateway enables partner entities to provide their customers with efficient and easy payment methods for e-commerce and mobile money transactions. The NPG ensures real-time verification of customer identities and payment details while confirming the availability of funds. This is a key step in expanding digital trade and commerce throughout Ethiopia. Merchants will now be able to accept a range of online payments including card, wallet, and other electronic payment forms through their banks or FINTECH providers connected to the gateway. EthSwitch’s plan is to integrate all major financial players into the NPG in the upcoming months.

Djibouti’s Space Milestone: First Satellite Launched with SpaceX

Djibouti’s Space Milestone: First Satellite Launched with SpaceX In a significant advancement for Djibouti’s space ambitions, the Republic of Djibouti successfully launched its first satellite, Djibouti 1A, as part of SpaceX’s Transporter-9 dedicated SSO rideshare mission from Vandenberg Space Force Base. This launch aligns with SpaceX’s recent Falcon 9 rocket launch for the 29th resupply mission to the International Space Station (ISS), showcasing a period of heightened space activity. Djibouti 1A was developed under a joint capacity-building program between Djibouti and the Centre Spatial Universitaire de Montpellier (CSUM). A team of Djiboutian engineers and technicians, trained in France, designed, constructed, and tested the satellite, marking a significant technological achievement for the country. In March, the satellite passed vibration tests at a joint CSUM/Latecoere facility in France, confirming its readiness for the launch. Djibouti’s Minister of Higher Education and Research, Mr. Nabil Mohamed Ahmed, highlighted the project’s success in training 10 technicians and engineers. This team was integral in all aspects of satellite design, manufacturing, and launch, contributing to the development of the necessary software. The minister emphasized the project’s objective of empowering Djiboutian students to lead in the satellite’s creation, thereby marking a technological leap for the nation. The satellite, Djibouti 1A, will play a crucial role in providing real-time data from climatological and seismic stations across Djibouti. This includes monitoring temperature, rainfall, river depth, and hydrometry. The nanosatellite will enable policymakers to access high-definition spectral information, enhancing agriculture and environmental monitoring across the country.

CBE Birr Enhances its Mobile App: A Strategic Move in Ethiopia’s Digital Payment Space

CBE Birr Enhances its Mobile App: A Strategic Move in Ethiopia’s Digital Payment Space The Commercial Bank of Ethiopia (CBE) has recently upgraded its mobile payment application, CBE Birr, marking a significant development in Ethiopia’s digital payment landscape. This enhancement is seen as a strategic response to the growing competition in the sector, particularly with TeleBirr. The updated version of CBE Birr introduces a more user-friendly interface and an expanded range of services. Users can now process payments for various services, including BeU Delivery, Ethiopian Airlines tickets, and DSTV subscriptions. This expansion transforms CBE Birr into a more versatile mobile payment solution, addressing the varied needs of its user base. CBE Birr’s integration with Ethiopian Airlines is a key feature of this upgrade, potentially increasing its appeal to frequent travelers. Moreover, the addition of services like BeU Delivery and DSTV payments indicates an effort to diversify the app’s utility, catering to the daily transactional needs of users. This upgrade comes at a time when digital transactions are becoming increasingly prevalent in Ethiopia. By broadening its service offerings, CBE Birr positions itself as a comprehensive digital payment tool, potentially increasing its market share in the face of competition from TeleBirr and other mobile payment platforms. In summary, the latest upgrade of CBE Birr represents a significant step in enhancing its service offerings and user experience. This move not only reflects the dynamic nature of Ethiopia’s digital payment industry but also highlights the evolving strategies of key players like CBE in competing and maintaining relevance in this fast-paced market.

Mobile Money Titans Clash: Safaricom’s M-PESA Hits 1.2 Million Users in Ethiopia, Challenging Telebirr’s Dominance

Mobile Money Titans Clash: Safaricom’s M-PESA Hits 1.2 Million Users in Ethiopia, Challenging Telebirr’s Dominance In the competitive landscape of Ethiopia’s mobile money market, a significant development unfolded with Safaricom’s announcement during its 2023/2024 Half Year Results. The Kenyan telecom giant has successfully registered 1.2 million customers for its M-PESA service in Ethiopia since its inception in August. M-PESA’s rollout was a strategic move by Safaricom, positioning it against Ethio Telecom’s Telebirr, the leading mobile money service in a country with over 100 million people. This expansion is part of Safaricom’s broader vision to increase financial inclusion in a country where only 35% of the population currently has access to financial services. Safaricom’s M-PESA, a mobile money service that revolutionized financial transactions in Kenya, is now making strides in Ethiopia’s burgeoning market. Since its launch, the service has seen transactions worth Ksh. 43.7 billion, and the establishment of a network comprising 23,000 agents and 12,000 merchants. This growth signals Safaricom’s commitment to fostering a cash-lite economy and enhancing financial services in Ethiopia. The CEO of Safaricom, Peter Ndegwa, underscored the company’s ambitions, emphasizing Ethiopia’s role in its growth strategy. He noted the impressive uptake of M-PESA services, comparing it favorably with Kenya’s trajectory, where similar usage levels took nearly a decade to achieve. The company’s progress is evident, with expansion to 22 cities and a customer base now standing at 4.1 million users. Safaricom has tailored its services to the Ethiopian market, offering M-PESA access through a USSD code and planning to introduce an app in multiple languages, catering to the diverse linguistic landscape of Ethiopia. This move is set against the backdrop of Ethio Telecom’s Telebirr, which dominates the market with over 50 million subscribers, highlighting the clash of these two titans in a race to dominate mobile money services in one of Africa’s most populous nations. Tags mpesa telebirr

The Benefits of the Ethiopian Stock Exchange for Small and Medium-sized Enterprises (SMEs)

The Benefits of the Ethiopian Stock Exchange for Small and Medium-sized Enterprises (SMEs) By- Henok Gidey Small and Medium-sized Enterprises (SMEs) are the backbone of many economies, including Ethiopia. They play a pivotal role in job creation, innovation, and overall economic growth. To support and empower these SMEs, the Ethiopian government has taken significant steps to encourage their participation in the Ethiopian stock exchange. This move is expected to provide a host of benefits to SMEs, enabling them to expand, access capital, and contribute more robustly to the country’s economic development. 1. Access to Capital One of the most significant advantages of SMEs listing on the Ethiopian stock exchange is access to a new source of capital. Capital is the lifeblood of business growth, and SMEs often struggle to secure sufficient funding from traditional lenders. By going public, SMEs can raise funds through the issuance of shares, which can be used for expansion, research and development, or debt repayment. 2. Visibility and Credibility Listing on a stock exchange offers SMEs visibility and credibility in the marketplace. It is a stamp of approval that can attract investors and customers alike. It demonstrates that the company adheres to regulatory standards and financial transparency, which can instill trust in potential partners, customers, and stakeholders. 3. Increased Liquidity Stock exchanges provide a platform for trading shares, which enhances liquidity for SMEs. It allows existing shareholders to sell their shares and new investors to buy in. This liquidity can be particularly valuable when existing shareholders want to cash out their investments or when companies require additional capital for growth. 4. Attracting Institutional Investors The Ethiopian stock exchange also opens the door to institutional investors such as pension funds, insurance companies, and mutual funds. These institutional investors have significant resources at their disposal and can provide SMEs with stable, long-term capital. This, in turn, can contribute to the financial stability and sustainability of SMEs. 5. Valuation and Benchmarking Being publicly listed enables SMEs to assess their value objectively. The market determines the share price, providing an independent benchmark of the company’s worth. This can be helpful for SMEs when making financial and strategic decisions. 6. Employee Incentives Stock exchange listing can also be advantageous for SMEs’ employees. It offers them the opportunity to own company shares, aligning their interests with the company’s performance. Employee stock options or equity incentives can be a powerful tool to attract and retain talent. 7. Mergers and Acquisitions Publicly listed SMEs can use their shares as currency in mergers and acquisitions. This can provide them with strategic advantages when seeking to expand through acquisitions or partnerships. Challenges and Considerations While the benefits of SMEs listing on the Ethiopian stock exchange are significant, several challenges and considerations should not be overlooked: 1. Regulatory Compliance: SMEs must adhere to strict regulatory requirements, including financial reporting and governance standards. Compliance can be resource-intensive. 2. Market Volatility: Stock markets can be volatile, and SMEs may face pressures related to stock price fluctuations and investor expectations. 3. Disclosure Requirements: Publicly listed SMEs are required to disclose financial information, which may include sensitive data that they prefer to keep confidential. 4. Initial Costs: The process of going public can be expensive, including the costs associated with an initial public offering (IPO) and ongoing listing fees. In conclusion, the Ethiopian stock exchange provides a valuable avenue for SMEs to access capital, gain visibility, and unlock a range of financial and strategic opportunities. While there are challenges to overcome, the benefits of listing on the stock exchange can be transformative for SMEs, allowing them to contribute more significantly to Ethiopia’s economic growth and development. This initiative not only supports individual businesses but also enhances the overall resilience and dynamism of the Ethiopian economy.

Impact vs. Number-Driven Startups: Striking the Balance in Ethiopia’s Startup Ecosystem

Impact vs. Number-Driven Startups: Striking the Balance in Ethiopia’s Startup Ecosystem By- Fikir Belete The startup ecosystem in Ethiopia is a dynamic and vibrant space, bustling with innovation, creativity, and ambition. It is now getting the recognition it deserves for having the potential to serve as a catalyst for economic growth, job creation, and technological advancements. The key stakeholders are doing a self-assessment and realizing the roles they need to play. We’re watching the private and public sectors coming together to create fertile grounds to work on. However, it’s not just about implementors coming together holding hands, and singing kumbaya, the focus is and should always be on the startups. Moreover, within this ecosystem, there exists a dichotomy between impact-driven and number-driven approaches. While both have their merits, understanding the nuances and implications of each can be crucial for entrepreneurs, investors, and policymakers alike. This article aims to shed light on this topic by exploring the significance of impact-driven and number-driven approaches in the startup ecosystem and the lessons we can learn from each one. The Impact-Driven Approach The impact-driven approach places a strong emphasis on addressing social or environmental challenges through entrepreneurship. Startups adopting this approach aim to create positive change, often targeting issues such as poverty, education, healthcare, climate change, or gender inequality. These ventures prioritize their mission and social impact over financial returns, although profitability remains important for sustainability. But does it really work in Ethiopia?  In regions like Kenya and South Africa, where socioeconomic challenges are prevalent, impact-driven startups have gained significant traction. These ventures leverage technology, local knowledge, and innovative business models to tackle pressing issues specific to their communities. By aligning their goals with the needs of society, they attract support from impact investors, philanthropic organizations, and government initiatives focused on social development. The Number-Driven Approach On the other hand, the number-driven approach prioritizes rapid growth, scalability, and financial returns. Startups adopting this approach aim to disrupt industries, capture market share, and generate significant profits. They often rely on technology-driven solutions, data analytics, and a relentless pursuit of efficiency and customer acquisition. Number-driven startups typically seek funding from venture capitalists, angel investors, and other sources of capital that prioritize high returns on investment. Their success is often measured by metrics such as revenue, user acquisition, market valuation, and exit strategies such as IPOs or acquisitions. While impact-driven and number-driven approaches may seem divergent, they are not mutually exclusive. In fact, there is a growing recognition that both perspectives can coexist and even complement each other. By bridging the gap between the two, we can create a more holistic and inclusive startup ecosystem. Collaborate and Network: Gold ore in the making Lessons can be learned from the experiences of entrepreneurs and incubators in Africa. Despite facing similar challenges, such as limited access to capital, inadequate infrastructure, and regulatory complexities, these regions have witnessed remarkable entrepreneurial growth. By fostering collaboration, sharing best practices, and promoting cross-border learning, startups can leverage each other’s strengths and overcome shared obstacles. For instance, impact-driven startups can benefit from adopting certain elements of the number-driven approach. Embracing data-driven decision-making, scalability, and market-oriented strategies can enhance their operational efficiency and improve their ability to create sustainable impact at scale. On the other hand, number-driven startups can learn from impact-driven ventures by incorporating social or environmental considerations into their business models, thus contributing to a more responsible and sustainable future. In addition to bridging the gap between impact-driven and number-driven approaches, fostering networking and emphasizing sustainable groundwork are crucial for a thriving startup ecosystem. These factors play a significant role in ensuring long-term success and maximizing the positive impact of startups and SMEs. Networking is a fundamental aspect of the startup ecosystem. It facilitates the exchange of knowledge, ideas, and resources among entrepreneurs, investors, mentors, and other stakeholders. By encouraging collaboration and learning from one another’s experiences, startups can overcome challenges more effectively and identify opportunities for growth. The Enkopa Summit, organized by Lauradu and Associates, Flawless events with the authorization of the Ministry of Labor and Skills, is an example of stepping in the right direction in terms of networking amongst the public and private sectors. It brought together various stakeholders, including investors, industry experts, and support organizations, to foster collaboration and knowledge exchange. The summit offered valuable insights, direction toward mentorship, and exposure to potential investors for startups through panel discussions, workshops, and networking opportunities. However, addressing ticket affordability and enhancing accessibility are crucial challenges that must be tackled to ensure the inclusivity of startups and MSMEs in future events. It doesn’t matter if the topics covered have valuable insight for building a sustainable startup business and growing into an enterprise if the startups can’t afford a seat and aren’t present for the discussion. Despite these challenges, the Enkopa Summit as indicated in its name holds immense golden promise for Ethiopian startups, positioning the country as a hub of entrepreneurial excellence and economic prosperity. Implementors Incubators and accelerators also play a vital role in supporting startups by providing mentorship, resources, and access to networks. However, it is essential for these support organizations to focus on sustainable groundwork rather than solely relying on large donors or time-bound projects. Incubators and accelerators should prioritize building strong relationships with startups and SMEs, understanding their needs, and tailoring their support accordingly. This involves going beyond providing financial assistance and short-term assistance. Instead, they should focus on fostering long-term relationships, offering continuous mentorship, and assisting with developing essential skills and knowledge. By adopting a sustainable approach, incubators, and accelerators can ensure that their impact extends beyond the duration of individual projects. They should empower startups and SMEs to become self-sufficient, resilient, and capable of driving their own growth. This can be achieved through capacity-building programs, access to networks and market opportunities, and ongoing support beyond the initial stages of development. Metrics: measuring accurately To achieve sustainable impact, incubators and accelerators should establish clear metrics and evaluation criteria beyond short-term goals. Instead of solely focusing on the number of startups or SMEs assisted, the emphasis should be on the quality of support provided and the long-term outcomes achieved. Metrics could include the number of successful business launches, revenue growth, job creation, and the overall social or environmental impact of the startups. By utilizing comprehensive and well-defined metrics, incubators and accelerators can align their efforts with the broader goals of creating a sustainable and inclusive startup ecosystem.

Dashen Bank Achieves Record Profit of 5 Billion Birr in 2015 Fiscal Year

Dashen Bank Achieves Record Profit of 5 Billion Birr in 2015 Fiscal Year Dashen Bank announced that it made a profit of 5 billion birr before tax in the 2015 fiscal year, an increase of 31.9 percent compared to the same period of the previous year. The bank’s 30th regular meeting of shareholders was held on that day. At the meeting, Dashen Bank board chairman Dula Mekonon and CEO Asfaw Alemu stated that the bank made a profit of 5 billion birr before tax and registered an income of 18 billion birr in the fiscal year. The chairman added that the bank was able to collect an additional 23.6 billion birr in deposits, bringing the bank’s deposits to 114.8 billion birr. He also explained that the bank’s total assets reached 144.6 billion birr. The chairman stated that many new guidelines were issued in the banking sector in the last financial year and the existing guidelines were amended. He explained that these guidelines have had their own impact on the amount of assets, operations, and related costs and profitability of banks. In addition, the growing digital infrastructure has created the opportunity for services that were only provided by banks for a long time to be provided outside of banks. He said that this has created a wide opportunity for banks as well. CEO Alemu said that last year was the year in which the bank achieved positive results in terms of expanding its reach, bringing in new customers, and accumulating wealth. He explained that the bank opened 253 new branches in different parts of the country in the last financial year, bringing the total number of branches to more than 835. Noting that the bank has more than 5.2 million customers, he said that the bank will continue to provide banking services that suit the needs of its customers. It was also announced at the meeting that Dashen Bank spent more than 285 million birr to fulfill its social responsibility in the last financial year. Dashen Bank’s total capital is 19.3 billion birr, with a paid-up capital of 9.3 billion birr. Tags Amole Dashen Bank ethiopia news today ethiopian news