February 27, 2025
PM Abiy Arrives in Somalia for Talks on Security, Trade, and Diplomatic Relations
PM Abiy Arrives in Somalia for Talks on Security, Trade, and Diplomatic Relations Ethiopian Prime Minister Abiy Ahmed arrived in Mogadishu today, where he was warmly received by Somali President Hassan Sheikh Mohamud. The visit aims to reinforce bilateral ties, with discussions set to focus on security cooperation, economic collaboration, and strengthening diplomatic relations, according to Somalia’s state news agency, SONNA. This marks Abiy’s first visit to Somalia in nearly three years, his last trip being in June 2022 when he attended President Mohamud’s inauguration. His return to Mogadishu comes at a critical time as both nations work to mend their relationship following recent tensions. Tensions Over Somaliland and Diplomatic Reconciliation Relations between Ethiopia and Somalia took a sharp downturn in early 2024 after Addis Ababa signed a memorandum of understanding (MoU) with Somaliland in January. The deal granted Ethiopia access to the Red Sea via Somaliland’s Berbera port, with Somaliland claiming that Ethiopia had agreed in principle to recognize its independence. The agreement sparked strong opposition from Somalia, which considers Somaliland an integral part of its territory. Mogadishu denounced the deal as a violation of its sovereignty, leading to a diplomatic rift between the two nations. In response to the escalating tensions, diplomatic efforts—led by regional and international mediators, including Turkey—helped bring the two sides back to the table. A peace agreement brokered by Turkey in December paved the way for reconciliation, and in January 2025, Ethiopia and Somalia officially restored diplomatic ties. Focus on Security, Trade, and Regional Stability PM Abiy’s visit is seen as a significant step in consolidating this renewed partnership. Security cooperation remains a priority for both countries, given the ongoing threat posed by Al-Shabaab, the extremist group that continues to launch attacks in Somalia and across the Horn of Africa. Ethiopia has historically played a crucial role in supporting Somalia’s counterterrorism efforts, with Ethiopian troops contributing to the African Union Transition Mission in Somalia (ATMIS). Beyond security, trade relations are expected to be a key topic of discussion. Ethiopia, a landlocked nation, has long sought access to regional ports to facilitate its growing economy. While the Somaliland agreement remains a contentious issue, discussions in Mogadishu may explore alternative economic partnerships, including strengthening trade routes through Somalia’s ports. Diplomatic observers view Abiy’s visit as an opportunity to rebuild trust and foster cooperation on mutual interests, balancing Ethiopia’s regional ambitions with Somalia’s territorial integrity. As the leaders engage in high-level talks, the outcome of their discussions could shape the future of Ethiopia-Somalia relations in the years ahead.
February 11, 2025
Lidetu Ayalew Barred from Boarding Flight to Ethiopia Amid New Travel Restrictions
Lidetu Ayalew Barred from Boarding Flight to Ethiopia Amid New Travel Restrictions Ethiopian politician Lidetu Ayalew has alleged that he was unlawfully prevented from boarding a flight to Ethiopia at Atlanta International Airport, despite no official legal charges barring his return. According to Lidetu, airline staff denied him a boarding pass, citing directives from the Ethiopian Embassy in the U.S. He claims his legal team has assured him that aviation law does not permit such restrictions on his movement. “When I arrived at the airport, the airline staff refused to issue me a boarding pass. They told me I needed special permission from the Ethiopian Embassy in the U.S. to travel. However, when I contacted the embassy, my calls went unanswered,” Lidetu stated. MP Desalegn Chane Suggests Legal Basis for the Ban While there has been no official statement from the Ethiopian government, MP Desalegn Chane (PhD) has suggested that Lidetu’s travel ban could be linked to recently passed proclamations that grant the government broad powers over immigration and asset control. In a statement, Desalegn Chane warned that the new laws might be used to punish Lidetu and other political opponents living abroad. “I believe there is a broad effort to use recently passed proclamations to punish Ato Lidetu and other government critics abroad. We strongly opposed these laws when they were introduced, but despite our objections, they were passed,” he said. He pointed to two specific proclamations that could explain why Lidetu was prevented from traveling: Immigration and Citizenship Proclamation – This law requires all airlines flying to Ethiopia to submit passenger lists to Ethiopian authorities three days in advance. It also grants the government the power to detain individuals upon arrival or prevent them from entering the country altogether. Asset Recovery Proclamation – This law allows the government to seize assets it deems of “unknown origin.” It also mandates that Ethiopians abroad accused under this law must appear in person—not through a lawyer. Under the first law, Lidetu could be legally prohibited from entering Ethiopia. If he has assets in the country, he could also be at risk of asset confiscation under the second proclamation. Opposition Fears Widespread Crackdown Desalegn Chane and other opposition leaders have expressed serious concerns that these laws could be used to intimidate and silence government critics. “These proclamations have provisions that could legalize the confiscation of property and even finance terrorism charges to intimidate opponents. Time will tell how far the government will go in using these laws against dissidents like Lidetu,” he added. Critics argue that the Ethiopian government’s ability to control travel and seize assets without due process violates fundamental rights and sets a dangerous precedent for opposition figures living abroad. Lidetu: ‘No One Can Stop Me from Returning’ Despite the ban, Lidetu remains defiant, insisting that he will fight for his right to return home. “No one can stop me from going back to my country. If they want to arrest me upon arrival, they are free to do so. But preventing me from traveling is illegal,” he stated. His legal team is currently exploring legal options to challenge the ban, but the broader implications of these new travel restrictions remain uncertain. As Ethiopia tightens its grip on political opponents, many are now questioning whether these laws will be used selectively to silence dissent—and if Lidetu Ayalew is just the first of many to face such restrictions.
February 04, 2025
Ethiopian Civil Society Organizations Authority Issues Directive Following USAID Aid Suspension
Ethiopian Civil Society Organizations Authority Issues Directive Following USAID Aid Suspension Addis Ababa, Ethiopia – The Civil Society Organizations Authority has issued an urgent statement outlining new directives in response to the recent suspension of aid by the United States Agency for International Development (USAID). The Authority reaffirmed that civil society organizations (CSOs) in Ethiopia are permitted to raise funds from any legal source and operate for lawful and ethical purposes, as stipulated under the Civil Society Organizations Proclamation No. 1113/2011. However, it emphasized that organizations must ensure their resources are used in compliance with the law and for the public good. The statement highlighted that the Authority is actively monitoring the implications of USAID’s funding suspension and will provide necessary support and oversight as the situation develops. Furthermore, CSOs currently receiving USAID funding have been strictly prohibited from transferring, disposing of, or selling assets, as well as from transferring funds to third parties for non-project-related purposes without prior authorization from the Authority. The directive underscores the government’s commitment to regulating the sector and ensuring transparency in the use of funds. The Authority warned that any organization found violating this directive will face appropriate legal consequences. This development comes as Ethiopia navigates shifting international aid dynamics, with potential impacts on numerous humanitarian and development projects across the country.
January 28, 2025
Perennial War in DRC is a Scorn at Africa’s sovereignty
Perennial War in DRC is a Scorn at Africa’s sovereignty By Mike Omuodo A phone vibration drew my attention to an incoming message – a friend had sent a message with an attachment and a note reading, “This is so sad and needs to stop! The message was followed by some crying emojis. Curious, I opened the attachment. It was a photo of some of the carnage in the Democratic Republic of Congo (DRC) – to be precise, the photo of corpses of those killed in the DRC’s never ending war, piled like some wastes from a city garbage truck. My heart bled for the children and women of DRC, the main victims of this horrendous war! The war in the Democratic Republic of Congo, which has killed over 6 million people over decades, stands as a stark reminder of the continent’s internal and external challenges. Despite Africa’s rich history, cultural diversity, and growing potential, the persistent violence in the DRC represents a failure of both African leadership and the international community to address a crisis that undermines the very notion of African unity, independence, and self-determination. The DRC, endowed with an abundance of natural resources—diamonds, gold, copper, coltan—should be one of Africa’s most prosperous countries. Instead, it has become a battlefield where local militias, foreign corporations, and regional powers exploit its riches, leaving its people in poverty and suffering. This is a direct affront to the vision of African sovereignty, which seeks to ensure that African resources benefit Africans and not external actors or corrupt elites. The inability of African nations to decisively intervene and resolve the conflict in the DRC highlights a painful reality: while African leaders have championed unity and cooperation through platforms like the African Union (AU), they have largely failed to protect one of their own from decades of exploitation and war. The silence and inaction of many African governments on the DRC crisis is a scorn to the idea of Pan-Africanism, which promises solidarity and collective action in the face of injustice. The war in the DRC is also a reflection of how foreign interests continue to meddle in African affairs, undermining Africa’s sovereignty. Since colonial times, external powers have exploited the DRC for its natural resources, leaving the country in a state of perpetual conflict. Today, multinational corporations and foreign governments continue to benefit from the illegal extraction of the DRC’s minerals, funding armed groups and prolonging instability. African leaders have a moral and political obligation to assert Africa’s control over its own resources and territory. Allowing foreign actors to dictate the fate of one of the continent’s richest nations not only diminishes the sovereignty of the DRC but also weakens the entire continent’s ability to defend its economic and political interests. Failed Governance At the heart of the DRC crisis is the failure of governance. While external actors have played a significant role in the conflict, internal divisions, corruption, and weak leadership within the DRC have exacerbated the situation. Successive governments have struggled to maintain control over vast portions of the country, allowing warlords and militias to fill the power vacuum. However, the broader failure lies in the inability of African leaders to come together and address these internal issues through diplomatic pressure, peace-building, and robust intervention. Instead, some regional powers have been accused of further destabilizing the country by supporting rebel groups and exploiting the chaos for their own gains. This lack of leadership not only prolongs the suffering of millions of Congolese but also erodes trust in Africa’s ability to solve its own problems. Strategic Imperative This war shouldn’t be seen merely as Congo’s problem but as a moral and strategic imperative for the entire African continent. The ongoing conflict undermines Africa’s collective goals of peace, security, and economic development. It destabilizes a region that is critical to the future of Africa, limits economic growth, and diverts attention from pressing continental issues such as poverty alleviation, infrastructure development, and healthcare. Allowing the DRC to remain in a state of war or even degenerate further into the abyss reflects poorly on the African Union and regional organizations like the East African Community and Southern African Development Community (SADC), which have the capacity to mediate and intervene. If African leaders do not act now to stop the violence and build sustainable peace, it will signal a failure to live up to the founding principles of these organizations and African independence itself. Reclaiming sovereignty This war is not just a humanitarian catastrophe; it is a direct challenge to Africa’s ability to assert control over its own destiny. The conflict has exposed the fragility of African sovereignty and the vulnerability of the continent’s vast resources to external exploitation. To truly live up to the promise of a united, independent, and prosperous Africa, African leaders must rise to the occasion, reclaim the DRC’s sovereignty, and bring an end to this senseless war. Inaction or passive diplomacy will only deepen the wounds and prolong the suffering. It’s time for Africa to lead by example, assert its political will, and save the DRC from becoming a permanent scar on the continent’s legacy. The war in the DRC cannot be allowed to continue as a scorn upon Africa’s sovereignty. The writer is a pan-African Public Relations and Communications expert based in Nairobi, Kenya.
January 27, 2025
The House of Peoples’ Representatives Holds Special Session to Address Land Lease, Education, and Agricultural Issues
The House of Peoples’ Representatives Holds Special Session to Address Land Lease, Education, and Agricultural Issues The 6th House of Peoples’ Representatives convened its 1st special session for the 4th year of its operational term. The session focuses on critical legislative matters, including reviewing reports, approving draft proclamations, and endorsing loan agreements. One of the key agenda items is the Ministry of Agriculture’s six-month implementation report for the 2025 fiscal year. The report is expected to outline progress, challenges, and future plans in achieving the ministry’s objectives. The session will also consider the approval of two significant loan agreements aimed at supporting the country’s development priorities. The details of these agreements and their intended impacts will be deliberated during the session. Furthermore, the House will deliberate on the draft proclamation concerning urban land tenure, land-related property registration, and urban land leasing, based on the recommendations of the Standing Committee on Urban Infrastructure and Transport Affairs. If approved, the proclamation is expected to modernize land administration systems, improve urban development, and enhance transparency in land leasing processes. Another major focus will be the review of the draft proclamation on general education. The Standing Committee on Human Resources Development, Employment, and Technology Affairs is set to present its report and recommendations, with the House expected to approve the proclamation. This legislative move aims to reform and strengthen the general education system to address existing gaps and ensure equitable access. The outcomes of this special session are anticipated to have a significant impact on Ethiopia’s legislative and development framework, particularly in the areas of urban land lease management, education reform, and agricultural progress.
January 23, 2025
Somalia’s President Visits Egypt After Ethiopia: Balancing Regional Tensions
Somalia’s President Visits Egypt After Ethiopia: Balancing Regional Tensions Somalia’s President Hassan Sheikh Mohamud arrived in Cairo on Thursday for an official visit to meet with Egyptian President Abdel Fattah al-Sisi. The visit, made at the invitation of President al-Sisi, highlights the deepening ties between Somalia and Egypt while drawing regional attention due to recent geopolitical developments. The Somali national news agency SONNA reported that discussions during the visit will focus on bolstering “joint efforts to combat terrorism and accelerating cooperation in the fields of security and peace in the region.” Additionally, the leaders are expected to explore “enhancing opportunities for economic and developmental cooperation,” signaling a growing partnership between the two nations. This visit comes on the heels of President Mohamud’s recent trip to Ethiopia, which followed the Ankara Deal—an agreement aimed at improving Ethiopia-Somalia relations. The timing of Mohamud’s visit to Egypt has raised eyebrows, given the heightened tensions between Ethiopia and Somalia over Egypt’s reported security presence in Somalia. Reports of Egyptian involvement in the region have strained Ethiopia-Somalia relations, with Ethiopia viewing Egypt’s expanding footprint as a potential threat to its influence, especially in the Horn of Africa. Adding to the complexity, Mohamud’s choice to visit Cairo so soon after his trip to Addis Ababa has surprised regional observers. It underscores Somalia’s delicate balancing act in navigating relationships with neighboring Ethiopia and Egypt—two nations with competing interests, particularly regarding the Grand Ethiopian Renaissance Dam (GERD) dispute and broader regional security dynamics. This visit also builds on the momentum of Mohamud’s August 2024 trip to Cairo, during which Somalia and Egypt signed a defense pact to strengthen bilateral security cooperation. That agreement, coupled with the growing trade between the two nations—reaching $59 million in the first half of 2024, an 88% increase compared to the same period in 2023—solidifies Egypt’s role as a key ally for Somalia. However, it has fueled concerns in Ethiopia about Egypt’s potential influence in the Horn of Africa. President Mohamud’s Cairo trip signals Somalia’s strategic engagement with regional powers while navigating complex geopolitical tensions. As Mohamud and al-Sisi meet, the outcomes of their discussions will be closely watched, with implications not just for bilateral relations but also for the broader Horn of Africa region. This visit highlights Somalia’s ambition to strengthen ties with Egypt while maintaining a delicate balance in its relations with Ethiopia.
January 21, 2025
From Birthrights to Aid Freezes: Ethiopia Caught in Trump’s Policy Crossfire
From Birthrights to Aid Freezes: Ethiopia Caught in Trump’s Policy Crossfire On January 20, 2025, President Donald Trump issued a series of executive orders that have significant implications for both domestic and international affairs. Two notable actions include the termination of birthright citizenship for children of non-citizens and a 90-day freeze on foreign aid to all countries. These measures are poised to impact nations like Ethiopia, both in terms of their citizens residing in the U.S. and the aid they receive. Termination of Birthright Citizenship The executive order aims to end the automatic granting of U.S. citizenship to children born on American soil to non-citizen parents, including those on temporary visas or without legal status. This policy shift challenges the long-standing interpretation of the 14th Amendment, which has traditionally conferred citizenship to anyone born in the U.S. Legal experts anticipate significant constitutional challenges to this order, as the Supreme Court has historically upheld birthright citizenship. For Ethiopian nationals in the U.S., this policy could have profound effects. Children born to Ethiopian parents who are not U.S. citizens or lawful permanent residents may no longer automatically acquire U.S. citizenship. This change could lead to an increase in stateless individuals, complicating their legal status and access to services. Moreover, it may deter Ethiopians from traveling to or residing in the U.S. on temporary visas, impacting educational and professional opportunities. 90-Day Freeze on Foreign Aid President Trump’s “America First” policy has led to a temporary suspension of foreign aid for 90 days, during which the administration plans to reassess and potentially restructure aid distribution. Ethiopia, a significant recipient of U.S. aid aimed at supporting economic development, healthcare, and education, stands to be directly affected by this freeze. The suspension could disrupt ongoing projects and strain Ethiopia’s efforts to address challenges such as poverty and health crises. Additionally, the uncertainty surrounding future aid allocations may hinder long-term planning and development initiatives within the country. Implications for Ethiopia The convergence of these policies presents a complex scenario for Ethiopia. The potential reduction in remittances from Ethiopians in the U.S., coupled with the suspension of foreign aid, could exacerbate economic challenges. Furthermore, Ethiopia’s geopolitical significance in the Horn of Africa means that shifts in U.S. policy could influence regional stability and development. Ethiopian policymakers may need to seek alternative partnerships and diversify sources of foreign assistance to mitigate the impact of these changes. In summary, the termination of birthright citizenship and the freeze on foreign aid represent significant shifts in U.S. policy with direct consequences for Ethiopia. The full extent of these impacts will depend on the implementation of these orders and the outcomes of anticipated legal challenges. Ethiopia will need to navigate this evolving landscape carefully, balancing domestic needs with the realities of changing international relations.
January 16, 2025
Tibor Nagy Returns to U.S. State Department with Focus on Africa and Global Affairs
Tibor Nagy Returns to U.S. State Department with Focus on Africa and Global Affairs Former U.S. Assistant Secretary of State for African Affairs, Ambassador Tibor Nagy, has announced his return to the U.S. State Department in a temporary role that will expand beyond his established focus on Africa. Nagy, who has decades of diplomatic experience, including serving as U.S. Ambassador to Ethiopia and Guinea, is expected to bring his expertise in African affairs to address both regional and global challenges. Experience in Africa and East Africa Focus During his time as Ambassador to Ethiopia, Nagy worked to strengthen U.S.-Ethiopia relations, focusing on issues such as economic reform, governance, and regional security. His tenure also included navigating Ethiopia’s complex political dynamics, making him a key figure in U.S. engagement in East Africa. Nagy has long emphasized the importance of fostering stability in the region as a foundation for broader peace and development. East Africa currently faces significant challenges, where Nagy’s experience may play a pivotal role: Conflict in Sudan: The civil war in Sudan has created a humanitarian crisis and destabilized the region, affecting neighboring countries, including South Sudan and Ethiopia. Nagy’s understanding of East Africa’s interconnected security landscape will be critical in shaping U.S. policy responses. Ethiopia’s Ongoing Instability: Ethiopia continues to face unrest following its civil war in Tigray, with tensions persisting in regions like Oromia and Amhara. Nagy’s past diplomatic engagement with Ethiopia may inform efforts to support conflict resolution and national reconciliation. Djibouti’s Strategic Role: As a key player in international geopolitics, Djibouti hosts military bases for multiple countries, including the U.S. and China. Managing the growing influence of global powers in this region remains a priority, with Djibouti’s stability playing a vital role in regional security. Somaliland’s Quest for Recognition: Somaliland’s ongoing bid for international recognition poses a diplomatic challenge in the Horn of Africa. Nagy’s familiarity with the region may help guide nuanced U.S. engagement with Somaliland and its neighbors. Ethiopia-Eritrea Relations: Despite the 2018 peace agreement, relations between Ethiopia and Eritrea remain complex, with recent events straining ties. Nagy’s knowledge of both nations’ leadership and history could aid efforts to address lingering tensions. Balancing Regional and Global Dynamics Nagy’s new role is likely to address not only regional issues but also the broader implications of global powers’ growing presence in Africa. China’s economic and military influence in the region, particularly through its base in Djibouti, presents strategic challenges, while Russia’s expanding engagement in Africa has added another layer of complexity to U.S. policy considerations. The U.S. will need to balance these dynamics while fostering partnerships with African nations on development, governance, and security initiatives. Nagy’s experience in navigating such challenges positions him to contribute meaningfully to these efforts. A Seasoned Diplomat at a Critical Time Tibor Nagy’s return to the State Department reflects the U.S. government’s recognition of the strategic importance of Africa in global affairs. His expertise, particularly in East Africa, will likely be instrumental in addressing pressing issues while supporting long-term stability and growth in the region. While specific details of his role remain undisclosed, Nagy’s background in diplomacy and deep understanding of Africa’s challenges provide a strong foundation for his contributions to U.S. foreign policy. His work is expected to focus on fostering peace, security, and economic opportunities in Africa while aligning with broader U.S. global objectives.
January 14, 2025
Ethiopia Approves Landmark Property Tax Law Amid Debate on Economic Impact
Ethiopia Approves Landmark Property Tax Law Amid Debate on Economic Impact Addis Ababa, January 14, 2025 – The House of People’s Representatives has officially passed a new Property Tax Proclamation, introducing a landmark tax policy that imposes levies on urban land, buildings, and land improvements. The law is expected to bolster municipal revenue and finance infrastructure development, but it has also sparked heated debate regarding its potential impact on taxpayers and economic inequality. The law, initially introduced in June 2024, was part of a broader government effort to expand the tax base, including proposed amendments to value-added tax (VAT) and excise tax laws. After undergoing scrutiny by the Standing Committee on Planning, Budget, and Finance Affairs, and following public consultations held in December 2024, the final version of the bill was passed with ten votes in favor and four against during Parliament’s 15th regular session. Key Provisions of the New Property Tax Law Under the newly approved Property Tax Proclamation, the taxable amount for any property is set at 25% of either its market value or its replacement value. The tax rate for land usage rights ranges from 0.2% to 1% of the annual taxable amount, while the tax on buildings and land improvements is set between 0.1% and 1% of their taxable value. Municipalities are now authorized to collect revenue directly through property taxes, granting them increased financial autonomy to fund essential services and urban development projects. During the parliamentary session, Desalegn Wodaje, Chairperson of the Standing Committee on Planning, Budget, and Finance Affairs, justified the need for the tax, stating: “There is a significant gap between the needs of growing urban populations and the resources available to address those needs. The increasing value of urban property is not being adequately taxed, resulting in a shortfall in government revenue. This situation contributes to economic inequality within cities.” Parliamentary Debate: Support and Opposition While government officials defended the law as a necessary step toward economic modernization, it faced sharp criticism from several lawmakers, who raised concerns about the burden it could place on low- and middle-income earners. MP Bartuma Fikadu criticized the policy, stating: “The law stipulates that 25% of the market value of the land will be subject to tax. It also states that the tax amount will increase annually. This law favors the tax collector instead of considering the burden on taxpayers.” Similarly, Desalegn Chane (PhD), a representative from the National Movement of Amhara (NaMA), questioned whether the additional tax was necessary, given the government’s strong tax collection performance in the past fiscal year. “The government reported collecting 490 billion birr in taxes over the past six months. This indicates that it has the potential to collect over a trillion birr by the end of the fiscal year. This amount is sufficient to cover government expenditures without imposing additional taxes on citizens.” The proposal also raised questions about tax fairness. Ewnetu Alene, Chairperson of the Standing Committee on Democratic Affairs, voiced concerns that the law might disproportionately impact low-income earners and government employees rather than targeting large-scale property owners. “In our country, the majority of taxes are imposed on low-income individuals, particularly urban residents and government employees. Are we improving the tax system by overburdening these segments of society? Shouldn’t we instead impose higher taxes on those owning extensive land and properties to better support low-income citizens?” Ewnetu also pointed out that while some proclamations appear favorable when debated in Parliament, they often become a heavy burden when implemented in practice. Government’s Response and Justification Despite the concerns, government officials argue that the property tax is essential for sustainable urban development. Eyob Tekalign (PhD), State Minister for Finance, emphasized that the law is part of Ethiopia’s broader economic modernization strategy and would ultimately strengthen the financial capacities of cities. “By enabling cities to have stronger financial capacities, it will facilitate the creation of a better tax base to improve the quality of life in every city.” Furthermore, Ato Desalegn Wodaje reiterated that urban residents already contribute indirectly to infrastructure development through various fees and levies. However, he stressed that municipalities must have dedicated revenue streams to keep up with urbanization and increasing infrastructure demands. “Municipal growth and urban expansion have significantly increased the need for infrastructure investment. Relying solely on government funds to cover all development expenses is not sustainable. Cities must contribute through local taxation.” Exemptions and Future Considerations Under the new law, certain federal and regional government institutions, as well as nonprofit organizations, are exempt from the property tax. However, lawmakers questioned why religious institutions were not included in the list of exemptions. The allocation of revenue collected from the property tax also remains a point of contention. Some MPs argued that the law does not clearly define how the funds will be distributed and used for public services such as electricity, water, and urban maintenance. Additionally, stakeholders previously expressed concerns about the timing of the tax introduction, given Ethiopia’s ongoing inflationary pressures and the existing tax burden on citizens. Looking Ahead: Implementation and Potential Impact With the law now in effect, municipalities will begin assessing and collecting property taxes in urban areas. The new revenue stream is expected to support infrastructure projects, improve public services, and finance urban expansion initiatives. However, critics warn that without proper safeguards, the law could deepen economic inequality and disproportionately impact lower-income homeowners. Moving forward, local and regional governments will have the flexibility to adjust and implement the law based on their specific needs. As Ethiopia continues to modernize its tax system, the success of the property tax will depend on fair implementation, transparent revenue allocation, and measures to protect vulnerable populations from excessive tax burdens.
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