October 14-20, 2024
Press freedom plummets; Poverty spikes; Power Couple win PM's cabinet reshuffle; War crimes in Amhara & Wealth creation in BG; Demolitions plague Kazanchis; 8 earthquakes in 20 days.
Business & Finance
Ethio Telecom began selling 10% of its shares to Ethiopian citizens on Oct 16, offering 100 million shares valued at ETB 30 billion in the 1st round, with a minimum purchase of 33 shares & a maximum of 3,333 shares, each priced at ETB 300. The state-owned giant, which registered notable growth over the last decade, has published a prospectus. Find a summary of the prospectus here.
TOYO Co. Ltd announced plans to establish a solar cell manufacturing facility with an annual capacity of 2 gigawatts (GW) in Hawassa, Sidama region. The factory will start production in early 2025 with an estimated investment of $60 million.
Heineken has reached an agreement to acquire ownership of Arada, produced by Komari Beverages. The deal was concluded last week & is expected to be officially announced in coming weeks.
Ovid Group has announced that it has signed agreements with Ride Transport & Sewasew Multimedia to construct and deliver 5,000 homes over the next 2 years, aiming to provide affordable, modern housing options to various stakeholders.
Safaricom has expanded its M-Pesa global payment platform to Ethiopia, allowing cross-border transfers between M-Pesa users in Ethiopia, Kenya & 190+ other countries. BII recently outlined the benefits of Safaricom’s entry into Ethiopia.
Ethiopian Airlines (ETH) marked its 78th anniversary at the 20th Akwaaba African Travel Market in Lagos on Oct 16, during which it announced that ETH will soon introduce its state-of-the-art Airbus A350-1000 aircraft to its Lagos fleet.
The Addis Ababa Trade Bureau selected Makeba PLC to manage the door-to-door delivery of subsidized essential commodities such as sugar, cooking oil & wheat flour to low-income city residents, with 294,000 customers registered for the technology-driven distribution system so far.
The Ministry of Agriculture (MOA) has welcomed the Oct 16 decision by the European Council of Ministers to delay the enforcement of the EUDR, providing relief for Ethiopia & other countries striving to meet compliance standards.
Coffee exporters expressed grievances about a new NBE directive requiring them to convert half their forex earnings into Birr within 30 days. They argue that the tight deadline is unrealistic & causes financial challenges, while NBE says the policy is intended to stabilize the Birr following the macroeconomic reform.
The Ministry of Finance (MOF) permitted the VAT-exempt entry of imported wheat that had been held up at the Djibouti port in an Oct 6 letter to the Customs Commission. The Ethiopian Flour & Wheat Producers Association said the imposition of the tax would have raised the price of bread by at least ETB 15.
NIB International Bank has appointed Belay Gorfu, one of its Deputy Presidents, as the acting CEO following the departure of Dr. Emebet Melesse, who served as CEO for 4 months before leaving to head the Development Bank o Ethiopia (DBE).
Dashen Bank announced plans to increase its paid-up capital by ETB 8 billion to 20 billion over the 2017 fiscal year during its Oct 15 General Assembly. The bank reported 26.8% growth over the 2016 fiscal year, while revenue grew by 33.8% to 23.5 billion. Meanwhile, Berhan Bank has reported a gross profit of ETB 1.51 billion in the 2016 fiscal year, up 150% from the previous year.
The Educational Materials Manufacturing & Distribution Enterprise announced that it has conducted a study on importing raw materials and locally assembling laptops & tablets for sale, with the study presented to Ethiopian Investment Holdings (EIH).
Economy & Development
The IMF Executive Board approved the first review of Ethiopia’s $3.4 billion lending program, paving the way for a $340.7 million disbursement. Learn more about sovereign debt in Africa here.
The National Bank of Ethiopia (NBE) has announced a new policy limiting the spread between forex buying & selling rates to 2% effective Oct 16, & mandating banks to transparently disclose all fees, commissions & related charges to their customers & to the NBE. Banks reduced their spreads from an average 12% last week to 2%, as per the policy, with CBE reducing its dollar selling price by ETB 8.2 to ETB 115.4 on Oct 15. However, customers report that banks are still failing to disclose the fees & commissions they charge despite the policy.
The World Bank’s Africa Pulse Oct 2024 report has identified the Birr as among the worst-performing African currencies & revealed that Ethiopia’s forex reserves can cover about 2 months of imports. Learn more about the economy in this opinion piece.
A recent World Bank has reported that the 26 poorest countries in the world, including Ethiopia, are in their most precarious financial position since 2006 amidst escalating global crises, including climate change & geopolitical tensions.
The UNDP’s Global Multidimensional Poverty Index revealed that India, Pakistan, Ethiopia, Nigeria & DRC account for 48% of the world’s 1.1 billion poor people. Meanwhile, a Voronoi report revealed that South Africa, Nigeria, Egypt, Algeria & Ethiopia collectively contribute half of the African continent’s total GDP.
An Afrobarometer report released on Oct 16 has revealed an increasing prevalence of lived poverty amidst skyrocketing living costs, with 70-85% of Ethiopians reporting that the government has performed badly on key economic issues while over a quarter reported experiencing frequent shortages of basic necessities such as medical care & water.
CBE issued an Oct 12 statement announcing that only 28% of the $282 million it had allocated to importers since the macroeconomic reform has been utilized. Importers say this is because the allocated money has not yet been released, blaming the bank’s slow decision-making process.
The Ethiopian Investment Commission has reported a 12% increase in FDI flows over the last 3 months compared to the same period last year, signaling a recovery in investment activities following the macroeconomic reform.
The NBE is heightening its regulatory oversight of microfinance institutions amidst mounting risks due to inadequate financial audits & loose supervision. Meanwhile, a new “Emergency Liquidity Assistance” directive has enabled the NBE to inject cash into solvent banks “experiencing temporary liquidity challenges” against collateral & with interest, to guard against “unforeseen liquidity shortages threatening the stability of the banking system.”
The Ethiopian Capital Market Authority (ECMA) has defended its decision to permit Ethio Telecom to conduct its initial public offering (IPO) through Telebirr ahead of the launch of the Ethiopian Securities Exchange (ESX), highlighting the app’s security features & simplicity despite low financial literacy & unfamiliarity with securities trading among the public.
The Mekelle Chamber of Commerce & Sectoral Associations has denounced insufficient government efforts to address challenges faced by manufacturing industries in the Tigray region following the 2020-22 war as investors in the region brace themselves for the December deadline for an 18-month grace period on bank credit repayments.
The EU pledged €1.1 billion as part of the Team Europe initiative to support the African Continental Free Trade Area (AfCFTA) and promote economic integration across the continent.
Society & Human Rights
The Addis Ababa Police Commission detained the Editor-in-Chief of The Reporter on Oct 16 for “compromising national security” by reporting on allegations of corruption & illicit activity in the mining sector, saying “there is no mining corruption that we know of in this country” & threatening to “make life difficult” if such reporting continues. Read more about deteriorating press freedom in Ethiopia in this opinion piece.
Kushu Bonaya, a mother of 3 in the East Borena zone, Oromia region, was tied to a tree & flogged by her husband upon the order of local elders for refusing to return to her abusive marriage. She is in critical condition, with a fractured skull and the left side of her body paralyzed due to the assault. Her husband & 7 elders were detained for investigation, but the 7 elders have been released on bail.
Lydia Alem was killed by her husband 4 days after their wedding in Wukro town, Eastern zone of the Tigray region. Her husband surrendered to police immediately after & made several suicide attempts while in custody. Police said they are providing the necessary surveillance.
An Oct 17 Human Rights Watch report has revealed that Sudanese refugees in the Amhara region are facing grave risks, highlighting multiple incidents of violence, abductions & forced labor amidst the ongoing conflict in the region. The government has dismissed the accusations as “unfounded and erroneous.”
Ethiopia has received the lowest internet freedom score among 17 african countries, scoring 27/100 & earning a “Not Free” rating in a recent “Freedom on the Net 2024” report by Freedom House.
National Flag Day was celebrated on Oct 14, with a ceremony in Addis Ababa attended by notable figures. The holiday was not widely observed in the Tigray region, with the Tigray Interim Administration (TIA) attributing this to the psychological impact of the 2020-22 war on national identity in the region.
The Ethiopian Teachers Association has launched the Education International “Go Public! Fund Education!” campaign, aiming to strategically address pressing issues in the education sector. The World Bank’s Africa Pulse Oct 2024 report revealed a learning poverty rate of about 90% in Ethiopia, & noted that only 6.2% of Ethiopian teachers achieve basic proficiency in content knowledge.
The Abune Hara Dingil Monastery Commission has announced a Nov 4 fundraising event in Millenium Hall, Addis Ababa to cover the ETB 120 million needed to relocate 36 permanent settlers living on the Monastery’s land in North Gojjam, Amhara region & preserve the monastery’s heritage.
Governance & Corruption
The Ministry of Agriculture (MOA) has allocated $1.3 billion to procure 2.4 million tonnes of fertilizer for this year, up 21% from the previous year. However, supply continues to fall short of demand, especially in the Gambella and Benishangul Gumuz regions. Ethiopia experienced 50-90% crop failures due to El Niño–induced droughts & floods, hampering food security. Learn more about natural resource management & efforts to improve Ethiopia’s agricultural sector here.
The Addis Ababa City Transport Bureau announced a revised public transport fare effective Oct 16 for operators within the city, taking into consideration current retail fuel prices & administrative costs. Residents have expressed grievances, highlighting that the decision will cause significant financial strain.
The Ministry of Transport & Logistics announced that the logistics & transport sector will be fully opened to foreign investors as part of the macroeconomic reform, pending final approval for implementation. Local logistics firms urged the government to implement incentive programs ahead of full liberalization.
The House of Federation & Addis Ababa University are planning to conduct a joint study to “scientifically” determine the number of ethnicities, nations & languages in Ethiopia & create an “ethnographic or linguistic atlas” to serve as a reference for policymaking & addressing concerns about representation. The 2 are expected to sign an MOU in the coming weeks to initiate the work.
Residents of Mekelle city, Tigray region, who have been contributing funds for 5 years to build their own homes under a government-backed initiative held an Oct 15 protest denouncing the region’s abrupt decision to shift the project from individual G+1 homes to G+4 apartment buildings.
The Benishangul Gumuz region has established a Wealth Creation Committee (WCC) to raise over ETB 130 million from local residents & organizations to support former rebels who have laid down their arms & reintegrate communities affected by past conflicts. The WCC was instructed to begin work immediately during an Oct 13 emergency meeting.
The Ethiopian Capital Market Authority (ECMA) has presented a draft “Dematerialization of Private Securities” directive to guide the transition from paper-based securities documentation to a modern electronic depository. The draft proposes to transfer paper-based documentation at the Federal Document Authentication & Registration Service to the Central Securities Depository (CSD), an institution dedicated to recording & verifying securities data electronically.
A senior tourism researcher has urged the government to improve visa policies, streamline immigration processes and reduce bureaucratic barriers to fully exploit the country’s untapped tourism potential.
A draft bill tabled to Parliament has urged the establishment of a national Animal Health Board responsible for registering & issuing licenses to animal health professionals, ensuring high-quality services & responding to ethical violations.
A draft bill has been tabled to Parliament, stipulating that a ventilation system can only be discontinued after it is confirmed that a patient’s heart & respiratory functions have ceased, or brain death has been established.
The Space Science & Geospatial Institute has commissioned a Global Navigation Satellite System (GNSS) receiving station and a magnetometer at the Entoto Observatory and Research Center near Addis Ababa.
Humanitarian Needs
Afar region reported a 4.6 magnitude earthquake on Oct 16 and a 4.7 earthquake just 13 hours later on Oct 17, marking the 7th & 8th earthquakes in the area since Sept 27. Both earthquakes were felt as far as Addis Ababa.
A Damage & Needs Assessment by the Tigray Education Bureau has revealed that $5.65 billion would be needed to fully rebuild the region’s education system following the 2020-22 war as 87% of schools were destroyed while 10,000 teachers lost their lives.
A draft 2nd round Damage & Needs Assessment conducted by the Ministry of Finance & World Bank has assessed damages to housing, energy, transport, businesses, & public services, as well as the agricultural, industrial, & tourism sectors from 2022-24. The 1st round assessment covered 6 regions and estimated the total damages at $28.7 billion.
Ethiopia has launched an ETB 5 billion disaster risk management initiative in collaboration with USAID, aiming to empower communities to mitigate natural disasters by mobilizing local resources & strengthening early warning systems & response mechanisms across 9 regions.
UNECA has highlighted that migration from African countries to Europe continues to surge due to rising poverty levels, unemployment & insufficient social protection, expressing concern about the underlying issues driving this trend.
A boat carrying 16 people capsized in Lake Chamo, South region on Oct 17. Local officials reported that rescuers recovered 2 survivors while 1 person swam to shore, but 13 people are still missing.
Ethiopia launched a 3-year, $27.3 million strategic plan to address the causes of vision impairment & blindness in the country during a research event last weekend. The project is the 5th of its kind & includes the deployment of mobile eye health teams to access pastoralist communities & the integration of primary eye services with existing primary health care services.
Forum for African Women Educationalists (FAWE) is working to help young women avoid early marriage & pregnancy, and gain access to quality education.
Politics
PM Abiy announced a cabinet reshuffle on Oct 18. Attorney General (AG) Gedion Timothewos, formerly also Justice Minister (JM), has now been appointed as Foreign Minister (FM) in addition to his role as AG. His wife, Hana Arayselassie, who was previously the head of the Ethiopian Investment Commission (EIC), will be replacing him as JM. Meanwhile, Selamawit Kassa, former state minister for the Government Communications Service, replaced Nasise Chali as Tourism Minister.
Opposition EPRP issued an Oct 14 statement denouncing the Road Corridor Development Project (RCDP) in Addis Ababa, asserting that the RCDP violates residents’ human rights & warning that the resulting “public outcry and frustration” could escalate into “public revolt.” Opposition parties EPRP, AEUP, AGM & Enat Party issued an Oct 14 joint statement urging the government to prioritize the welfare of city residents over the interests of elites & foreign investors while conducting urban renewal efforts.
PM Abiy stated that the RCDP would not be halted during an Oct 16 speech, asserting “we will demolish & we will build again.” Fendika Cultural Center & the historic Kazanchis neighborhood are the latest victims of the 2nd round of the RCDP launched this month. City-wide demolitions under the RCDP have caused widespread grievances, with a young father committing suicide in his soon-to-be-demolished house last week.
Opposition EZEMA issued an Oct 15 statement accusing the government of unlawfully detaining & harassing its leaders & members in Garadula zone, South Ethiopia region under the pretext of “tackling violence by armed groups”, urging authorities to release the detained members & refrain from authoritarianism. EZEMA also issued an Oct 17 statement urging the government to address recurrent violence & land grabbing in the Kore zone, South region.
Former rebel group ONLF called an extraordinary Executive Committee meeting to review its 2018 peace agreement with the government. This follows recent comments by ENDF Chief of Staff Birhanu Jula referring to the ONLF as “an enemy backed by Egypt”.
TPLF Chairman Debretsion G/Michael criticized the TIA for its failure to implement the Pretoria Peace Agreement & said the replacement of TIA President Getachew Reda would proceed in consultation with the federal government. This follows unsuccessful efforts to mediate the dispute between the TPLF & TIA. Learn more about the challenges facing the Tigray region in this interview & this op-ed.
Opposition Tigray Independence Party (TIP) issued Oct 17 and Oct 18 statements denouncing “grave human rights abuses” against its members & supporters, accusing TPLF of the targeted killing of at least 1 TIP member & unlawful arrests, beating, kidnappings, & harassment targeting at least 16 others. Learn more about issues in Tigray in this interview.
The split between the Ethiopian & Tigray Orthodox Churches has resulted in increased tensions in the disputed Raya Alamata area as the 2 churches battle over dominance with the support of militants amidst identity & boundary disputes between the Amhara & Tigrayan communities.
The National Dialogue Commission has reported that the ongoing conflict in the Amhara region & unresolved “preliminary issues” in Tigray have posed significant challenges to its operations.
The new Chairman of the opposition Ethiopian Social Democratic Party (ESDP), Rahel Bafe, has confirmed that the party will continue peaceful political struggle following the death of former Chairman Beyene Petros last month.
Conflict & Security
Clashes between government forces & Fano militants escalated across the Amhara region, with residents of Woldia, North Wollo zone reporting heavy gunfire in the city from Oct 13-14 and residents of Minjar woreda, North Shewa zone reporting heavy fighting in the area since Oct 8. Learn more about the Amhara conflict in this analysis.
The Continent geolocated a Feb 19 massacre where a drone strike killed at least 30 civilians celebrating an infant’s baptism in North Shewa zone, Amhara region, providing evidence for war crimes in the ongoing conflict. Over 300 civilians have been killed in at least 31 drone strikes within the region over the last year.
Residents of North Gojjam zone, Amhara region have reported over 100 deaths, including elders & children, due to repeated government drone strikes between Oct 10-14. The ENDF claims to have killed 53 Fano members in the attacks.
The Amhara Regional Judges Association (ARJA) announced that 11 judges have been unjustly detained & 2 have been killed in the last 2 weeks. In an Oct 17 statement, ARJA revealed that 35 judges have been unjustly detained over the past year, with 8 still in custody. A judge in Dessie city, Amhara region was killed in a bomb blast this week. It is unclear who carried out the attack.
The Ethiopian Orthodox Church (EOTC) has denounced the Oct 15 killing of its clergy member in the East Arsi zone of the Oromia region, reporting that 271 EOTC followers have been killed in the zone between Sept 2023 and Aug 2024.
Residents of Arsi zone, Oromia region have accused government forces of killing 7 civilians & abducting 8 others during an Oct 10 incident.. Meanwhile, residents of North Shewa zone have reported escalated clashes between government forces & the OLA since Oct 7, resulting in 7 civilian deaths. In other news, an Oct 17 attack by OLA in the West Shewa zone of the Oromia region has resulted in the killing of 19 government forces.
Residents of West Wollega zone, Oromia region have reported 2 extrajudicial civilian killings by government forces and the unlawful arrest of 5 civilians for “being related to OLA members”. Meanwhile, residents of Guji & West Guji zones have reported severe human rights abuses & widespread destruction due to the ongoing conflict between government forces & the OLA.
Residents of Kore zone, South region have reported 5 deaths due to militant attacks, with local officials blaming the OLA while residents have urged the government to stop the continued violence in the zone.
Ethiopia Peace Observatory (EPO) issued its Sept 2024 report revealing 152 political violence events resulting in 738 fatalities last month, with 107 battles & 38 incidents of violence against civilians, mostly linked to the ongoing conflicts in the Amhara & Oromia regions. The Amhara region registered 102 political violence events & 318 fatalities.
Geopolitics
Defense Ministers from Ethiopia & other Troop Contributing Countries (TCCs) to the AU Transition Mission in Somalia (ATMIS) expressed “willingness & readiness” to continue peacekeeping efforts in Somalia under the new AUSSOM mission during an Oct 16 meeting. Somalia has ordered the withdrawal of Ethiopian troops following the Dec 31 expiration of ATMIS & endorsed Egypt as the lead in AUSSOM, with Cairo training & supporting Somali forces in the fight against Al-Shabaab. Learn more here about AU peacekeeping missions in the Horn of Africa
Ethiopia has granted Somaliland a plot in Addis Ababa for the construction of an embassy, further straining tense relations with Somalia over the Ethio-Somaliland MOU. Somaliland’s FM laid the foundation stone for the embassy on Oct 16.
Ethiopia announced that the Nile River Cooperative Framework Agreement (CFA) officially came into effect on Oct 13, days ahead of the 2nd Nile summit held in Uganda on Oct 17. Learn more about the Nile River Basin Commission here.
Egypt has signed an agreement to build a 276-kilowatt solar power plant in Djibouti, a key buyer of Ethiopian electricity. The project is seen as part of Egypt’s broader strategy to forge political, economic, & military alliances with Ethiopia’s neighbors amidst increasing regional tensions. Learn more here.
Kenyan President Ruto is urging commercial banks to expedite plans to sign on to the Pan-African Payments & Settlement Systems (PAPSS) signed on Sept 29 to avoid using the dollar & reduce transaction costs, noting that Africa loses over $5 billion in payment transaction costs each year.