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Cake Decorating A Growing Art Form – Ethiopian Business Review

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A decade or two ago, it would have been hard to imagine the numerous pastry shops Addis Ababa has now. As the nation’s economy grows and household income goes up, people’s needs are changing as well. In the past few years, bakeries that used to offer just a loaf of bread are transforming into pastry shops, selling cakes in all shapes and sizes. Along with this slowly growing business, we’ve seen the emergence of the art of cake decorating. In this article, EBR’s Tirualem Asmare looks into the growing, creative art of cake decorating.

Bakeries can be found practically anywhere in Addis Ababa due to the city’s expanding population and subsequent growth in demand. With their introduction to the shelves of bakery shops, many Ethiopians are getting a taste of these decorated cakes. Decorated cakes are becoming increasingly common at occasions like wedding ceremonies, baby showers, and bridal showers. Customers are able to get cakes decorated in various designs, according to their preferences and the occasion.

As the demand for these cakes increases,  additional short courses are now being offered at culinary and pastry schools. For a cake lover such as Hermen Lemma, 26, and mother of one, the additional aesthetics added to cakes are yet another reason it’s become difficult to resist the urge to pick one up every time she passes by a bakery. “I’ve always loved cake and enjoy eating it even more than I should,” Helen says passionately. “This new trend of cake decorating is only enhancing my love for cake.”

Team Bakery is a bakery shop with more than five branches in Addis Ababa.  Team Bakery makes a variety of sweet goods, such as sweets, breads, cookies, and sweet pastries. Cakes are among the popular offerings of the bakery. Semir Surir, a 26-year-old cake specialist at Team Bakery, states that he started making cakes for Team Bakery eight years ago. He gained the skills from international chefs commissioned by Team Bakery.

‘’At Team Bakery, we make unique and wonderful cakes for birthdays, weddings, baby showers, and bridal showers,” Semir told EBR. “Our cakes are popular with children. They are also branded to appeal to the targeted market. For example, fictional animated characters such as Cinderella and Spider-Man are popular with children.”

At first, the community was only interested in regular cakes, there was little awareness of decorated cakes. Later, however, after discovering many cake designs on the internet, people began to inquire about them in person; by this point, nearly everyone was aware of them, according to Semir.

Team Bakery is known for several different cake designs, including those that resemble shoes, bags, animals, and flowers. The most expensive cake is a wedding cake, which typically ranges in price from ETB 15,000 to ETB 80,000. But there are other desserts that cost even more.

Semir believes the training in the bakery should be a degree program. For Semir, it is not just about making the next cake and putting it on the shelf for the next buyer to come in and take it, it’s more of a lifestyle.

“Making cakes is my window into an enjoyable life,” Semir says.

The origins of cakes can be traced all the way back to antiquity. According to food historians, the ancient Egyptians were the earliest civilization to provide signs of sophisticated baking abilities. Moreover, towards the middle of the 17th century, the earliest predecessors of modern cakes started to appear across Europe. This was mostly due to technological advancements, such as more dependable ovens, the production and availability of food molds, and the accessibility of ingredients.

Compared to cake making, cake decorating is a relatively new concept, gaining popularity in Europe in the middle of the 17th century. Originally, cakes were adorned and displayed at feasts and events hosted by European royalty. Back then, these cakes were already decorated with intricate patterns and bright embellishments. But ornamented cakes made their debut in England under Elizabeth I’s rule. With new culinary discoveries being brought back from all across the empire, the food of this era was becoming increasingly exotic and opulent. As a result, spectacular centerpieces were brought out to dazzle and excite banquet guests.

Other studies show that cake decorating was invented in a French bakery in the 1840s when a French baker decided to adorn the cakes in order to raise the price. The French were responsible for bringing adorned cakes to people’s tables and popularizing the idea of dessert during the 19th century.


EBR 11th Year • April 2023 • No. 116

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Ethiopian Airlines Kicks off Services for Haji Pilgrims with New Terminal –

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Addis Ababa, June 05/2023 (Walta) Ethiopian Airlines (EA) has announced the commencement of services to the 1444 Haji travelers with a new terminal dedicated to the pilgrims.

The new terminal provides prayer spaces and resting places for pilgrims traveling to Saudi Arabia.

The inaugural event was attended by the president of the Ethiopian Islamic Affairs Supreme Council, Sheik Haji Ibrahim Tuffa, Ethiopian Airlines Commercial CEO, Lemma Yadeta, Ethiopian Airlines Operation CEO, Reta Melaku, and invited guests.

This special service for the Haji pilgrims has commenced through the domestic flight terminal under expansion which is in its finishing stage, according to Ethiopian Airline.

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Ethiopia`s Hidden Gem-Sports Tourism –

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By: Tewodros Sahile

Addis Ababa, June 5, 2023 (Walta) – Ethiopia has epic untapped tourism resources. Its thousands of years of rich culture and history, extreme landscapes, and diverse flora and fauna make the country one of the top tourism destinations in Africa.

That is just by the common and familiar standard. One particular tourism segment stands out as overlooked but unparalleled potential-sport tourism.

As defined by Gibson, sports tourism is a “leisure-based travel that takes individuals temporarily outside of their home communities to participate and/or watch physical activities or to venerate attractions associated with physical activities”

Sports tourism is worth trillions of dollars in industry and growing faster every year. By many standards, Ethiopia has enormous sport tourism resources due to its landscape, and history of long-distance track races, and domestic sporting events.

Attended by over 30 thousand people, the Great Ethiopian Run has been attracting foreign tourists from near and far. In addition, owning to the steep hills and narrow gorges, rafting could be another sports tourism attraction luring adventure tourists.

Ethiopian Premier League, with its own shortcoming, is attended by football lovers and fans all over the country. Thousands of dedicated fans traveling to different tournaments hosted in different parts of the country. Which by definition put the spectators and the participants in the sport tourism sector.

Taking the potential contribution of the sector and the global trends into account, Ethiopia should prepare the ground for the sector to flourish in terms of devising policy and development of infrastructure.

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Mr. Getachew, tear down the wall!

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Decades of authoritarian rule in Tigray have erected an ideological, political, and mental wall between the region’s political leaders and its people which is long overdue for dismantling.

Brick by brick, the ruling Tigray People’s Liberation Front (TPLF) has fortified itself in power by building a wall around itself, and has become increasingly divorced from the people it once relied on to sustain its resistance struggle against the brutal Derg regime.

Since taking power in Addis Ababa over three decades ago and being forced to relinquish it in 2018 then retreating to control Tigray, a legion of party cadres has convinced themselves that they have a God-given, or revolution given, right to influence public policy and actions.

While there is no physical wall in Tigray, as there was separating East and West Germany during the Cold War, the time is long overdue to “tear down this wall,” in the words of U.S. president Ronald Reagan in 1987.

Two and a half years after Reagan’s directive to Soviet leader Mikhail Gorbachev, the Berlin Wall had come down and Russia began embarking on what has been a rocky and arduous but, one could argue, necessary transition towards political and economic liberalization.

As Tigray’s new interim president, you, Getachew Reda, must fulfill your promises to empower the region’s progressive forces rather than allowing the old guard to continue its dominance.

In doing so, you must first tear down the wall between the region’s leaders and its people.

Party Control

Tigray’s ruling party is run through a Central Committee and politburo that are not elected and hence do not represent the voice of the people yet have tremendous power at their disposal. This power extends beyond the party itself, and pervades governance and public administration in Tigray.

There are no independent institutions in the region with the courage to speak truth to power. The government-funded media and tightly controlled civil society organizations, and even religious institutions, always dance to the tune of the orders of the government, which is to say the party.

A mindset has been irresponsibly and shortsightedly instilled in government officials, even in some ordinary citizens, that the party, government, and people are one and the same, thereby granting the TPLF the right to rule until kingdom come.

A toothless, rubber-stamping regional parliament that takes its orders from party higher-ups has been controlled in its entirety by the same ruling party for three decades.

Opposition parties are depicted not just as adversaries of the TPLF but also as the enemy of the people for the simple reason that they subscribe to a different political ideology, advocate for alternative public policies, and publicly declare that they can do the job better.

This all has created fertile ground for political patronage, cronyism, and nepotism. Politics is run through shady backroom deals, public resources are mismanaged, particularly the land, and public services such as water are not delivered properly.

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What’s more, ill-advised policies cannot be critically assessed, remedied, or reversed as problems are viewed through a partisan party lens and from the standpoint of protecting one’s political turf and economic interests.

Reform Agenda

After tearing down that wall with all its ideological baggage, political transgressions, and leadership failures, you, Mr. President, must play a leading role in aspiring to and working towards creating genuine democracy and a reformed parliamentary system whereby:

  1. Political party roles, duties, and responsibilities are clearly restricted to party politics, such as developing party policies and election platforms, selecting candidates for nomination, membership recruitment and fundraising, organizing debates, and party conferences.
  2. Free and fair elections take place at regular intervals.
  3. Power and decision-making lie where they should, in the hands of elected officials who are given their mandate by the people.
  4. The president and their cabinet are solely accountable to parliament.
  5. Legislators, through bipartisan parliamentary committees, collaboratively work for the common good of their constituents and the betterment of the region at large.
  6. The media, civil society, and religious organizations are set free to express their views regardless of whether they support or criticize government policy and decisions.
  7. Every effort is made to deliver public goods and services efficiently and effectively.
  8. Diversity is encouraged both in terms of political thought, meaning opposition parties are not stifled, and representation along the lines of gender, ethnicity, region, class, and religion.

It’s understandable that you will be unable to accomplish all these goals through an interim government and in a limited period of time. Yet you certainly can pave the way towards these goals by first and foremost tearing down the above-mentioned wall.

Leadership Needed

So, Mr. Getachew, you will do the people of Tigray a great, historic favor if you open the gate to introduce Tigray’s version of glasnost (openness and transparency) as well as perestroika (the policy or practice of restructuring or reforming the economic and political system).

The establishment, with an undying sense of entitlement and the special interests they nurtured for years, and naysayers in general, would assert that it’s impossible to do this in Tigray or that you don’t have the mandate to do it.

Nevertheless, the truth is, neither do the powermongers have any right to stay the course. But they surely will act as though they have the mandate. And their love for power and prestige is certainly not to be underestimated.

Members of the old guard relentlessly work around the clock with the objective of clinging onto or returning to power to continue having things their way.

While there is a time and place for political and diplomatic niceties, doing the right thing and making tough decisions even when it’s opposed by influential adversaries or special interests is indeed what prevails in the do or die world of politics.

In reality, it appears that the train of change has already left the station and there is no way of stopping it. So, if you remain silent or passive, it’s only a matter of time before someone else steps up to the plate to lead the reform agenda and save the people of Tigray from their seemingly never-ending pain and suffering.

Yet, who knows if you, Mr. President, have come to your highest position for such a time as this? If you are really seeking a quick recovery from the catastrophic war, along with genuine democracy and socioeconomic development for Tigray, tear down the wall and open the gates for long overdue political, economic, and social reforms the people of Tigray deserve.

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Main Image: UN Media Forum on Sustainable Development Goals (SDGs) in Addis Ababa, Ethiopia; 3 November 2016; by UNICEF Ethiopia; licensed under CC BY-NC-ND 2.0.

This is the author’s viewpoint. However, Ethiopia Insight will correct clear factual errors.

Published under Creative Commons Attribution-NonCommercial 4.0 International licence. You may not use the material for commercial purposes.

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Amharas turning on Abiy are short of Ethiopian allies

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Ethiopianist politics is being upended by increasing Amhara mistrust of federal intentions.

Turmoil is growing in Amhara region as opposition grows there to federal policies and the government launches crackdowns to try and quell the surging discontent. Yet despite this turbulence, the central state’s power, Amhara factionalism, and friction with fellow government opponents are likely to act as constraints on the revolt.

Following the assassination on 27 April of Girma Yeshitila, the head of the Amhara Prosperity Party, the Ethiopian Joint Security and Intelligence Task Force arrested 47 suspects and announced the commencement of a law enforcement operation against what federal authorities label “extremist” forces.

It accused them of “seeking to dismantle the constitutional system and forcefully gain control of regional state power” within Amhara. 

The state-funded Ethiopian Human Rights Commission released a statement on 4 March saying there were intense clashes in various areas, including North Gondar, North Wolo, and North Showa zones, between federal soldiers and local militants.

Interpreting Disarmament

Widespread protests erupted in the region following the federal decision to integrate regional forces into federal structures. While some Amhara Special Forces (ASF) agreed to the integration, others refused and allegedly joined Fano militants.

The government blamed regional government elements for misinforming the ASF about the reintegration by portraying it as disarmament, as did Berhanu Jula, the military chief of staff.

The regional leadership claims to have carried out extensive discussions with the ASF and managed to convince most of them to embrace the restructuring. They also claim that protests began to wane in mid-April.

Some Amhara political and civic organizations have denounced federal operations and the cutting of the internet and other public services.

But despite such treatment, Amhara nationalists are short of allies other than perhaps in Asmara where Eritrean President Isaias Afwerki is equally dismayed by Abiy’s pact with the TPLF. This isolation is partly because of strong Amhara support for brutal federal action in recent years to quell resistance in Tigray and Oromia.

Mounting Opposition

Amhara’s predicament can be seen in light of the pivot by Amhara Ethiopianists who oppose the federal effort to defang regional paramilitaries even after spending years labeling such forces as divisive.

They argue now that the federal government cannot be trusted with protecting the interests of the Amhara people, an argument that legitimizes Amharas’ right to defend themselves.

Habtamu Ayalew, an Ethio 360 journalist and Amhara activist who the government accuses of being among a group that plotted a coup, has framed the unrest in Amhara as a struggle against Oromo expansionism. 

“The war started in Amhara region to destroy Ethiopia and build a country called Oromia after the destruction of Ethiopia,” he wrote on Facebook. 

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Similarly, Yonas Biru, a vocal former supporter of Prime Minister Abiy Ahmed, recently published a controversial paper in which he attacks what he labels “political Oromummaa” –  defined as a militant Oromo nationalism that seeks to forcefully assimilate other groups. 

According to his viewpoint, this form of nationalism is being tacitly promoted by Abiy’s government. Some Amhara activists have seized upon his paper to try and mobilize resistance online.

Meanwhile, arch Abiy critic, Lidetu Ayalew, a centrist Amhara figure that spoke out against the federal conduct of the Tigray war, opposes the disarmament despite his long-held concerns about ethno-nationalism. He also says the federal move threatens citizens who currently need the regional forces to protect them.

Autonomy Debate

Amhara political factions aren’t alone in opposing the move. 

Some Tigrayan critics argue that concentrating security power in the hands of the central government, known for its desire to consolidate control at the expense of regions, would further undermine regional autonomy and self-administration. 

“Amhara might be decrying this decision now for so many reasons. But those who paid dearly for autonomy & self-determination are the biggest losers in the long term,” tweeted a prominent Tigrayan activist.

A leading Oromo nationalist figure, Bekele Gerba, equally concerned about regional autonomy, somewhat paradoxically backs the government move.

The Oromo Federalist Congress politician insisted that Oromo Special Forces deserve dismantling even more than their Amhara counterparts, as, according to him, the former committed atrocities on their own constituency, something he says the latter are not guilty of.

Political Reconfiguration

Recent federal government actions have created fissures in Amhara and Ethiopianist politics. Growing polarization of these factions may result in further fragmentation and low-level resistance that Abiy’s government will probably be able to absorb relatively easily.

Top regional leaders are trying to enforce federal plans but, according to Amhara nationalists, the lower level leadership is on their side. To try and address the crisis, Amhara regional leaders held a conference last month in Bahir Dar. Gizachew Muluneh, Amhara government spokesman, said the conference would try and ease “divisive tendencies” and foster unity in Amhara.

Some non-Amhara Ethiopianist factions, such as the Ezema party of Abiy’s Education Minister, Berhanu Nega, remain aligned with the federal government. 

In contrast, Berhanu’s erstwhile allies, Neamin Zeleke and Andargachew Tsige, previously Asmara-based Ethiopianist politicians of Amhara descent who have been supporting federal military operations in Tigray and Oromia, have turned against the federal government, portraying its deal with TPLF, actions against Amhara forces, and declining relations with Eritrea as a betrayal.

Other Amhara factions that have always opposed ethnic federalism appear to have leaned into ethnonationalism. Eskinder Nega, who previously identified as a human rights advocate and politician representing Addis Ababa residents’ interests, established the Amhara People’s Front [APF] on 20 May to sustain “the existence of the Amhara people.”

Notably, even Lidetu has started appearing regularly on Ethio 360, which advocates for militant Amhara nationalism, where he endorsed the legitimacy of Amhara resistance to the dismantling of regional paramilitaries.

In yet another Prosperity Party move redolent of the EPRDF-era national security state, the federal government charged Lidetu, along with some Ethio 360 and Mereja TV journalists, with terrorism offenses. Lidetu said he would return to Ethiopia to face charges.

New Front

On 27 May, a new Fano group called the Gondar Brigade was established, building on efforts by the Amhara Fano Unity Council, which for months has been advocating unified Amhara resistance against the federal government.

The Gondar-based council seems to be engaged in a power struggle with the Eskinder-led Amhara People’s Front (APF), which is based Gojjam. Ethio 360’s Habtamu tweeted that “Eskinder’s decision was done hastily without consulting the leaders involved in the struggle”.

Clashes occurred last week between government forces and Amhara militants at an Orthodox monastery in the Debre Elias district of East Gojjam Zone, leading to casualties, including civilians. Officials claimed militants were using the monastery for military activities.

On 31 May, Prosperity Party’s Amhara branch called for an end to destabilization in the region and warned of further security measures, suggesting that the violence may further intensify.

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Bottled water business in Ethiopia – New Business Ethiopia

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By Staff Reporter – Introduced by Ethiopian Entrepreneur Ermias Amelga about two decades ago as “Highland Water”, Ethiopia’s bottled water market has experienced significant growth in recent years.

The growth has been driven by a combination of factors including rising urbanization, increasing disposable income, and growing health awareness among consumers. The bottled water industry in Ethiopia has created tens of thousands of jobs. It is estimated that there are 106 water bottling companies in Ethiopia of which the majority are located in Oromia Region close to Addis Ababa where they can access the biggest number of consumers in the country.

All together the water bottling factories produce close to 3.5 billion bottles of water per year. Top Water, One Water, Gold Water, Yes Water, AquAddis, and Daily Water are among the popular water brands in Ethiopia.

According to a report by ResearchAndMarkets, the bottled water market in Ethiopia is expected to grow at a CAGR of 12.71% during the forecast period 2021-2026. The report also states that the increasing population, along with the growing demand for safe and clean drinking water, is one of the major factors driving the growth of the bottled water market in Ethiopia.

A number of local and international players are active in the Ethiopian bottled water market, including Nestle, Coca-Cola, and PepsiCo. Local companies such as Abyssinia Springs and Awash Wine SC are also prominent players in the market. These companies offer a variety of products, including still and sparkling water, flavored water, and functional water.

One of the challenges facing the bottled water market in Ethiopia is the country’s limited infrastructure for water supply and distribution. This has led to a reliance on bottled water for safe drinking water, particularly in urban areas.

Overall, the bottled water market in Ethiopia is expected to continue to grow in the coming years, driven by rising demand for safe and clean drinking water, urbanization, and increasing disposable income among consumers.

Bottled water business in Ethiopia

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News: Ethiopian army refutes involvement in “country-wide diversion” of food aid, warns against defamatory reports

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Addis Abeba – Ethiopian Ministry of Defense has vehemently denied recent allegations that the country’s defense forces, along with other governmental bodies, have been involved in what the USAID described as “a country-wide diversion scheme” of food aid.

In a statement issued over the weekend, the Ministry of Defense, countering USAID’s claims, reiterated its commitment to the Ethiopian public saying that “one of the key values of the Ethiopian Defense Army is to prioritize the public and the country”, and it “would never deprive its people of their sustenance”.

The ministry, in defending the honor of its armed forces, insisted that the army operates under a strict regime of discipline, and that it has sufficient budget and logistics. 

Addressing the humanitarian contributions of the Ethiopian defense forces, the statement read, “our army is equipped to assist those displaced both domestically and internationally, and those affected by drought, through the provision of material and financial aid.”

The statement concluded with a call for restraint from media outlets, encouraging them to wait for thorough investigations into such allegations before publishing potentially defamatory reports about the Ethiopian Defense Forces’ reputations.

It however pledged to take decisive measures if any individual member of the army is found complicit in collaborating with the thieves in the food diversion scheme.

According to an internal memo of a recent meeting by the donor community in Ethiopia obtained by Addis Standard the USAID said the food aid diversion “scheme appears to be orchestrated” by federal and regional governments entities, “with military units across the country benefiting from humanitarian assistance”.

Both the USAID and the WFP have suspended food aid distribution in Ethiopia after revelations were made that the food aid diversion was not limited to Tigray region, and is country wide. The Ethiopian government has expressed commitment to conduct a full investigation into the diversion of the food assistance and to hold accountable those found responsible. AS




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Five-Day Training on Preventing, Detecting Illegal Wildlife Trade Kicks Off –

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Addis Ababa, June 12, 2023 (Walta) Ethiopian Wildlife Conservation Authority in collaboration with International Fund for Animal Welfare (IFAW) launched a five-day training on preventing illegal wildlife trade and smuggling in Addis Ababa today.

Speaking at the launching of the training, the director of the Ethiopian Wildlife Conservation Authority, Kumera Wakjira, indicated that the training aims “to build the capacity of law enforcement officers on the detection, identification of the commonly trafficked wildlife species and their products and deterrence of their trade in the Horn of Africa.’’

He said that wildlife smuggling and trade is a global issue and a multi-billion dollar business involving powerful non-state actors and individual in a cross-boundary criminal enterprises that can only be controlled through cooperation among states, institutions, and international organizations. To this end, this training is prepared for people working in wildlife sector from seven countries of Horn of Africa.

Ethiopian Tourism State Minister, Sileshi Girma, on his part, noted that tourism is given due attention by the government as one of the five economic pillars. There has been a general understanding among people in the sector that Ethiopian tourism is concerned with cultural and historical attractions. However, nowadays nature tourism, particularly ecotourism, is given special attention by the government, he underscored.

Wildlife experts, and officials from Ethiopia, Kenya, South Sudan, Djibouti, Eritrea, Uganda, and Somaliland are attending the training under the title “Detecting Illegal Species through Preventive Training (DISRUPT)”.

In the coming four days, training on the identification and detection of wildlife species, wildlife smuggling and concealment techniques, the role of technology in fighting wildlife crime, online wildlife crime monitoring and enforcing, wildlife exhibit handling and management, chain of custody forensic integrity and so on will be held.

By Tewodros Sahile

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News Analysis: Budget deficit warning lights drowning out deeper economic issues

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Finance Minister Ahmed Shide presenting budget proposal to members of parliament (Photo: HoPR/Facebook)

By Samson Hailu

Addis Abeba – The Ethiopian federal government’s  budget deficit for the current fiscal year is projected to reach 309 billion birr, exacerbating the macroeconomic stress currently faced by the country. 

Accounting for nearly 40% of the total budget and hovering at around three percent of the gross domestic product (GDP), the budget deficit raises the risk of high fiscal stress for the country while signaling that the government will likely continue treading the same risky path on the fiscal front in the coming years.  

In recent years, the administration of Prime Minister Abiy Ahmed (PhD) has been dealing with a massive fiscal deficit due to the rising expenditure associated with the COVID-19 outbreak and the conflict that raged in the country’s north. Last year, the budget deficit reached 4.2% of the GDP, exceeding the global threshold set at three percent.  

The recently proposed 801 billion birr budget earmarked for the next Ethiopian fiscal year also comes with a 281 billion birr deficit. The budget proposal for the 2016 Ethiopian fiscal year which was approved by the Council of Ministers on 06 June, showed an increase of 15.05 billion birr over the current year and was referred to the House of People’s Representatives for additional discussion and final approval. 

Out of the total budget, 203.9 billion birr will be used for capital expenses, leaving a recurrent budget allocation of 369.6 billion birr. In addition to allocating 14 billion birr for the advancement of sustainable development goals, the budget also included 214.07 billion birr for regional subsidies. 

When Finance Minister Ahmed Shide presented the budget details to members of parliament (MPs) last week, he acknowledged that the nation has been experiencing a serious fiscal imbalance due to factors ranging from declining tax revenue and diminishing external loans to rising public spending due to factors like the militarized conflict and the unprecedented drought sequence that is taking a heavy toll on the country.  

In the past two years, development partners have suspended a significant portion of the funds they pledged. As a result, the external assistance obtained remains less than 22% of the plan, according to the budget document presented to the lawmakers by minister Ahmed and seen by Addis Standard. 

A statement put forward by the International Monetary Fund (IMF) last week, the Ethiopian government has requested assistance to address key macroeconomic vulnerabilities. Yet, discussions are still ongoing as it requires a clear commitment from development partners.   

“The rising need for humanitarian and reconstruction spending is expected to drive up public spending even further,” Ahmed told MPs. Some lawmakers have a different perspective.  

According to Zegeye Muluye (PhD), an MP, there are two major factors that contribute to the budget deficit. Inefficient government spending is the first contributing cause of the budget deficit. 

“Despite the fact that there are numerous duties on the priority list, the government has spent a significant amount of money over the last four years reinvigorating government offices,” said Zegeye. 

The inability to raise sufficient financial resources domestically constitutes the second factor. “It is only personal income tax that is collected properly,” argued Zegeye, who served as the vice president of Addis Ababa University in charge of resource administration for close to six years.  

Ahmed acknowledges that the tax income collected falls short of its potential. The tax-to-GDP ratio has been declining in recent years, dropping from 10.7% five years ago to 7.1% last year. The ratio is much lower than the sub-Saharan African average of 17%. 

Tax collection for the first three quarters of this year stood at 282 billion birr, which was 70.5% of the annual target. Only 80% of the anticipated tax revenue (348 billion birr) is expected to be collected over the course of the entire year, according to the document.  

The meager capital budget allotted to fund development projects was also one of the major topics for debate when MPs discussed the draft budget proposal of the federal government last week. 

“The budget allocated to productive sectors like agriculture, irrigation, and energy is too small to have a big impact on the economy,” Desalegn Chane (PhD) of the National Movement of Amhara Party (NAMA) argued.  

Zegeye had a similar sentiment as well. “Even World Bank-financed projects are currently in limbo because there isn’t enough money to compensate those who will be relocated,” he said. “Giving such initiatives top priority will enable the nation to utilize the money received from donors effectively.” 

With an 80.8% contribution, taxes account for the largest portion of government revenue. Over the last three years, governmental revenue has grown by an average of 15.1% annually. On the other hand, public spending has increased by an average of 24% annually during the last three years. This forced the government to reprioritize its expenditures, according to the finance minister. 

Before referring the budget proposal to the planning, budget, and finance standing committee, lawmakers also stressed that it would be smarter to cut the recurrent budget than to compromise on capital projects. Next year, recurrent expenses will soar by 7.3%, while the capital budget will drop by over 6%.  AS




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Ethiopia electoral board decision threatens TPLF’s future

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Last month’s decision that prevents Tigray’s leading party from running in elections raises questions about federal authorities’ commitment to peace.

After a period of improving relations between federal and Tigray authorities consolidated their November ceasefire, the electoral board has inserted a spanner in the works by effectively preventing the Tigray People’s Liberation Front (TPLF) from running in Tigray’s elections planned for next year. 

If officials in Addis Ababa stick by the decision, it could cause significant turmoil in Tigray and further afield, emboldening TPLF’s myriad opponents and incensing its loyalists.

After the outbreak of war, on 18 January 2021 the board stripped TPLF of its legal status due to its role in what the federal government classed as a revolt against the constitutional order. 

Following the removal of TPLF’s terrorist designation in March and resumption of its relations with the federal government, as per the Pretoria peace deal, the party submitted an appeal on 12 May to the board requesting a reversal of its 2021 decision.

However, the board, led by former opposition politician Birtukan Mideksa, rejected the request on somewhat technical grounds, stating that there is no legal provision for undoing the ban, despite admitting the basis for it no longer exists.

The crucial question now is to what extent that decision has broader political backing.

Responding Statements

On 16 May, TPLF protested the decision, claiming it’s “contrary to the Pretoria Agreement” and leaves the peace process “without an owner.”

Tigray’s Interim Regional Administration (IRA), formed in March pursuant to Pretoria, on the same day called it “unacceptable in both law and politics” and highlighted that the ruling threatens the IRA’s existence since TPLF has a major role in it.

Furthermore, it argued the board’s approach “disheartens forces that, like the TPLF, are preparing to return to a peaceful struggle,” presumably referring to the Oromo Liberation Army, which recently entered into talks with Addis Ababa. 

The board recently announced that it’s preparing for elections in Tigray since 2021 national polls weren’t held in the war-torn region. In the Pretoria deal, TPLF implicitly acknowledged that the regional election Tigray conducted in September 2020 in defiance of federal authority was illegitimate.

While rejecting TPLF’s request, the board has registered other Tigrayan parties, including Salsay Weyane Tigray and National Congress Party (Baytona), for the election set to be held next Ethiopian calendar year.

The board sanctioned parties’ involvement after affirmations that they weren’t involved in the war. Thus far, Tigray’s opposition parties have remained silent on the board’s decision regarding TPLF.

Mixed Reaction

Some Tigrayans expressed concerns online that the decision could undo the hard-fought peace and plunge northern Ethiopia back into war. 

Yemane (not his real name), who’s close to the IRA leadership, sees a political motive behind the board’s decision: “I have a hard time believing that Birtukan made such a momentous move without Abiy’s blessing”. 

Yemane believes Abiy’s likely trying to drive a wedge between the TPLF and the IRA, based on the premise that the party is losing power under current arrangements. 

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Conversely, Meron, a Tigrayan journalist who also asked to use a pseudonym, argues the decision will not have a decisive impact on determining TPLF’s fate. “It is here because it is the TPLF, not because the NEBE gave it recognition,” she insists, reminding that “even the terrorist designation didn’t make a difference.”

Yemane is more concerned. “They [federal authorities] know that we need them more than they need us at the moment,” he laments. “There’s no credible fallback position on our part where we can successfully threaten to reinitiate hostilities. That gives Abiy a chance to fiddle with the agreement.”

Nevertheless, he believes tensions will be resolved through negotiations: “Most likely, this is yet another ploy” by Abiy “…to extract concessions.”

Legal Backdrop

The board is within its rights to cancel the registration of a party that engages in “violent rebellion”, but Gebremeskel Hailu, an associate professor at Mekelle University’s School of Law, questions the legitimacy of the process after the board acted as prosecutor and judge. 

“It can’t establish the fact by itself and then pass a decision,” he says. “Another body needs to investigate and establish it.”

Additionally, Gebremeskel points out TPLF wasn’t given the opportunity to defend itself, which the law grants, and believes such discrepancies cast doubt on the decision. 

Gebremeskel also argues that the lack of an explicit legal provision for reversing a ban doesn’t mean automatic rejection of a request. “This calls for a legal interpretation,” he says.

Pretoria Betrayed

Gebremeskel backs TPLF’s stance that the decision contradicts the spirit of Pretoria: “I don’t believe sticking to an extremely legalistic and narrow interpretation is the appropriate course.”

Although there are no specific terms in the agreement safeguarding TPLF’s existence, the agreement to, for example, jointly form a regional administration, clearly presumes TPLF’s legal status as a legitimate organization.

In 2021, the board ordered the party’s funds to be  expropriated to cover the party’s debts and support civic and electoral education. Gebremeskel suspects the underlying motive of its recent decision is to ensure TPLF remains financially weak. “If it ceases to have a legal existence, there is no chance for [TPLF] to reclaim its property,” he explains.

While much remains uncertain, Gebremeskel believes that TPLF rebranding would be a blessing in disguise as it would help it regain lost credibility. “I think it would be good for Tigray as well as for itself if the TPLF were to rebrand itself and re-emerge with a new political program.”

On 22 May, Debretsion Gebremichael, TPLF chairman, gave a press conference in which he asserted that his party will not make a fresh registration application. “It is like asking a 50-year-old man to start over,” he said, adding, “It will continue to exist unless it dissolves on its own in another way.”

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Main Image : Birtukan Mideksa becomes President of National Electoral Board of Ethiopia- NEBE; 22 November 2018

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The evolution of social modernization

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When the term “Atlantic civilization” was coined in the 18th century, the underlying idea was meant to combine the values of the French and the American Revolutions. They were seen as the two indispensable pillars of a single, yet divided approach to social modernization. The values of life, liberty and the pursuit of happiness as well as those of liberty, equality and fraternity may sound hollow today, yet they have not lost any of their resounding power when looking at their impact.
The Atlantic civilization remains based on the primacy of individual dignity, property and rule of law, a strict separation between state and society the freedom of religion as well as the freedom to travel. People’s ability to engage in self-criticism remains the essential quality of the Atlantic civilization. While hoping for the universalization of people’s understanding of life, liberty and the pursuit of happiness remains an inherent driving force of human culture, it is important to re-evaluate the world as it stands.
It is imperative for the future of the Atlantic civilization to realize the root causes of the conflicts which have taken us like a hurricane. The time has come to count the dead due to a series of acts of political violence committed over the past decade. We must take account of undeclared wars such as in the Ukraine, gruesome and barbarous acts of terrorism as in Iraq and Syria, incapable states which cannot really “fail” because they never worked in the first place such as Somalia, as well as states which can no longer prevent the outbreak of mass epidemics with global consequences such as Liberia or Guinea.
The West may be keen to promote the rule of law and democratic participation, but people are confronted with upheavals in their borderlands that follow a different, if not altogether confrontational logic. Russia is projecting its imperial glory, if only out of weakness. The Arab and Muslim world is undergoing a transformation with cultural, political and economic tensions of the highest order. While often clad in religious language, these tensions reflect age-old geopolitical controversies and rifts.
While Westerners are ambivalent about the use of military power, knowing too well its limits and the curse of Pandora’s Box that comes with the use of military power, they can no longer escape a global tide that changes their way of thinking. Aren’t they very scared of “foreign” fighters returning from Iraq or Syria, whether with a U.S. or EU passport? And what is their answer to self-declared “Sharia police” gangs patrolling the streets of London or Bonn, trying to prevent Muslim youth to enter “sinful” places such as discotheques and casinos?
The Atlantic civilization is united these days, or so it seems. In reality, Western nations are divided in their perception of, and proximity to, current hotspots. Whether they are engaged in sanctions against Russia or in organizing a military coalition against the barbaric terror of the self-declared “Islamic State caliphate,” the truth of the matter is this: Nobody has a good answer, and no strategy seems to work the way we thought these things happen.
What’s happening in Russia is about re-establishing spheres of influence, territorial and ethnic. The shift from Arab spring to a Caliphate winter represents almost the opposite: the individualized, decentralized and excessively violent, cruel and unpredictable use of force.
According to political analysts, understood properly, Eurasian imperialism and Arab radicalism are two sides of the same coin. They both reek of obvious helplessness and long-term self-defeat. They represent deep inferiority complexes to which the West has not developed any serious response beyond the usual policies of carrots and sticks.
The Atlantic civilization has to learn that political ideologies and violent conflicts which are no longer relevant in the West have found willing repetition outside their sphere. The Arab world may well have entered its genuine Thirty-Year War, while nobody knows how long Russian imperialism may last.
But as Russia’s and the Arab world’s inner tribulations have begun to penetrate the cohesion and stability of the West, they pose a threat to the Atlantic civilization that goes beyond the reaction of concerned neighbors. That is why, according to political analysts, it is time to reinforce the foundation of this unique experiment in the history of man’s search for freedom without coercion.
The Atlantic civilization needs to redefine its foundation: the search for truth cannot justify the destruction of freedom, one’s own and that of others; the rule of law and democratic participation include the protection of minorities; the outbreak of violence is the end of politics and not its continuation.
In the end, this is what liberal democracy is all about. It is against this backdrop that the success or failure of the Transatlantic Trade and Investment Partnership (TTIP) takes on a new dimension. These negotiations are about far more than a trans-Atlantic trade and investment partnership.
Political analysts noted that it is an investment into a common future of liberal democracy and it is about a partnership that cannot be traded on the altar of petty populism and myopic trends on either side of the Atlantic Ocean.

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Op-ed: A hobbled transition: The intractable task of Tigray Interim Administration

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PM Abiy and TPLF representatives in Halela Kella Resort, in Dawro Zone of the SNNP regional state in February this year. Picture: Redwan Hussien

By Kjetil Tronvoll @KjetilTronvoll &

Mehari Tadelle Maru @DrMehari

In office since March 2023, the Tigray Interim Regional Administration – tasked to oversee the political transition integrating Tigray into the constitutional order of Ethiopia – is facing increasing criticism and challenges from within Tigray, in Ethiopia, and from international actors. The multiple pressure they are put under undermines the fragile political order and may derail the transition and the implementation of the Pretoria Peace Agreement.

Addis Abeba -After two years of devastating civil war killing hundreds of thousands of civilians and combatants, the Tigray People’s Liberation Front (TPLF) and the federal Ethiopian government signed in November 2022 the Agreement for Lasting Peace through the Permanent Cessation of Hostilities (CoHA) in Pretoria, South Africa. The agreement stated that “the establishment of an inclusive Tigray Interim Regional Administration (TIRA) will be settled through political dialogue between the Parties,” however without specifying the necessary modalities or the composition of an interim administration.

The Controversial Interim Administrative Set-up

Establishing an interim administration in Tigray proved to be a cumbersome process, taking place amidst enormous challenges of post-war humanitarian, security, and governance demands. The immediate causes of the disagreements among Tigray’s stakeholders centered on the nature, mandate, structure, and allocation of powers for the TIRA.

After months of deliberations, where opposition parties voiced their frustration over the lack of consultation and the undue haste of the process leading to a partial boycott of the process, a TPLF appointed preparatory committee headed by Tigray Defence Forces (TDF) commander Lt. Gen. Tadesse Werede, suggested a model of ‘inclusive representation’ in the TIRA, allocating 30% for TPLF, 15% for other political parties, 25% for TDF and 30% for civil society. Due to pull-out of two opposition parties and other factors, however the TPLF ended with obtaining a majority of 16 seats out of 27 in the TIRA.

The decision to veto Debretsion’s continued regional presidency raised suspicion among Tigrayan factions and contributed to the deepening schism between the party’s ‘hardliners’ and ‘reformers’

The Pretoria agreement only catered for the establishment of a top-level administration, ignoring the need of a more comprehensive interim governance structure to cater for constituents’ interests and provide checks-and-balances to executive power, thus a regional legislative assembly and local administrative councils are not re-established. Oblivious to many Tigrayans was the fact that the legal anchoring of the TIRA was not based on the Pretoria agreement, but followed constitutional procedures as outlined in the Proclamation for the Intervention of the Federal Government in the Regions. This proclamation annuls the constitutional autonomy of Tigray and makes the TIRA accountable to Addis Abeba and not its constituents.

The federal government was not actively involved in the public discussions on the format of the TIRA, and observers believed that Addis communicated its interests and demands in confidentiality with Mekelle. It came thus as a surprise when Prime Minister Abiy Ahmed rejected TPLF’s initial suggestion of the continuation in office of former Tigray President Dr Debretsion Gebremichael, as head of the interim administration. The decision to veto Debretsion’s continued regional presidency raised suspicion among Tigrayan factions and contributed to the deepening schism between the party’s ‘hardliners’ and ‘reformers.’ A highly contested selection for a new presidential candidate within the TPLF central committee followed, in which Getachew Reda, nominated by the younger generations, won by only one vote over the TPLF Executive Committee’s candidate Dr Fisseha Haftetsion. When Getachew’s name was forwarded to Addis Abeba for approval, the Prime Minister quickly accepted the nomination and appointed him as President of the TIRA. More importantly, Abiy’s decision to reject the TPLF’s resolution, which sought to retain Debretsion as Interim President, has intensified the strain between the Federal Government and the core of the TPLF leadership. This tension is stirring up a storm of unease, potentially clouding prospects for future peace in Tigray.

The challenges of a divided Tigrayan base

Getachew Reda represents the new generation of TPLF leaders, without experience from the ‘17-years of struggle’ TPLF conducted from 1974-1991, before assuming state power. He has a law degree from the US, is well-articulated and has an active presence on social media, which all speaks well to the new generations of educated youth in Tigray. Getachew’s political inclinations is far from TPLF’s original roots of Marxist-Leninism, and he appears less of a champion of the revamped “revolutionary democracy” ideology the party presented as an answer to the Ethiopian peoples’ demand for liberalization and change when they were in power in Addis Abeba.

It is important to note that although Getachew Reda has been appointed President of TIRA, Debretsion Gebremichael is still Chairperson of the TPLF. Despite Getachew’s prominent position within the party’s Executive Committee, the most powerful body of TPLF, he was not the chosen candidate for Interim presidency. In defeating the core TPLF leadership’s candidate, albeit by narrow margin, this vote broke with three decades of past practice and signaled a rift within the TLPF that is impacting the TIRA and the transition. Recently, the party chair Debretsion Gebremichael, together with hardliner and former Ethiopian spy chief Getacehw Assefa, allegedly cast doubt about the process whereby TIRA was established. The TPLF reportedly also demands that TIRA should be dissolved after an election which should be conducted within six months, assumingly then for the party to resume full control of government affairs. The proclamation of the establishment of the TIRA, however, prescribes a timeline of six months to two years, before fresh elections for regional government must be conducted. As such, the National Election Board of Ethiopia (NEBE) recently announced new elections in Tigray (and other areas in Ethiopia which did not conduct national elections in 2021 due to security concerns) to be organised in 2024.

No doubt tensions within the TPLF and between TPLF and TIRA are increasing, something which also the TDF commander Lt. Gen Tadesse Werede confirmed in a public interview. Concomitantly, Tigrayan opposition parties and the public at large are also increasingly critical towards the apparent hamstrung authority TIRA holds to assume administrative control over all Tigrayan territories to assure restoration of a livelihood for its citizens, as enshrined in the Pretoria agreement. West Tigray is still under control and administration by Amhara regional state, who reportedly continues to expel tens of thousands of remaining Tigrayans from their homes and transfer people from other parts of Amhara to Western Tigray; while Eritrean forces are harassing citizens and blocking humanitarian aid and AU monitors in northern parts of Tigray.

Despite being signatories to the Pretoria peace agreement, the federal government structure does apparently not work in concert to secure its full implementation

The responsibilities for many of the challenges faced by TIRA, and the ensuing criticism directed towards their impotence of handling it, however, rest with federal authorities. Despite being signatories to the Pretoria peace agreement, the federal government structure does apparently not work in concert to secure its full implementation.

Ethiopian government – partner or spoiler?

How intimate and constructive the relationship between TIRA and federal authorities really is, is challenging to discern. On the one hand, the technical implementation of the Tigrayan DDR process (disarmament, demobilization, and reintegration) appears to be reliable and the communication between the military leadership of TDF and ENDF seems sound. While on other security issues, as ensuring full federal authority and ENDF military control of Tigrayan territories, the follow-up seems lackluster at best, or explicitly counterproductive at worst.

For many Tigrayans it is hard to understand the federal authorities’ disinterest to protect the life and well-being of Ethiopian citizens from foreign and domestic aggression and harassment. The continued presence of Eritrean troops in northern Tigray, and Amhara militia in Western Tigray, are cases in point. It thus appears that the technical aspects of DDR, which emasculates the military capabilities and capacities of TDF, are fully endorsed by the ENDF leadership and federal authorities, while they appear indecisive or divided on the more politically sensitive issues of confronting their allies in the political leaderships of Eritrea and Amhara to secure territorial control of all of Tigray.

An even stronger indication of a divided federal stand on the Tigray transition, is the recent decision by the National Election Board to deny lifting the deregistration of TPLF as a political party. The election board outlawed TPLF in January 2021 due to the party’s “involvement in violent acts of revolt” (as to Proclamation 1162/2011), prohibited its leaders from engaging in party-related activities, and seized all party assets. A key clause in the Pretoria agreement was the deregistration of TPLF as a ‘terrorist organization’ by the federal government and restoring their constitutional rights of political agency. It came thus as a surprise to many that NEBE’s legalistic interpretation of sustaining the deregistration of TPLF was allowed to be floated by the federal government. The TPLF has rejected NEBE’s decision and reasoning, arguing that the Pretoria Agreement and the decisions passed by other federal institutions, should overrule the clauses in the election law. In a press statement of May 16, 2023, the TPLF warns that NEBE’s decision “puts the peace process in jeopardy” and calls upon the Federal government to “ensure that legal decisions and agreements are respected by all government institutions and bodies.”

Concurrently, TIRA also issued a statement on May 16 naming the TPLF as the “main owner of the peace agreement”, hence calling out NEBE’s decision to maintain the deregistration of the party: “unacceptable in both law and politics. This decision renders the peace agreement without an owner, endangers the existence of the interim administration by denying recognition to the senior leaders of the TPLF, who are participating in the inclusive interim administration on behalf of the TPLF, and challenges the entirety of the peace agreement.”

Prime Minister Abiy Ahmed seems to have trouble to get the Amhara political constituency onboard with the Tigray peace process, although positive steps to reconcile Amhara and Tigray leaderships are in the making

The Prosperity Party government in Ethiopia is deeply divided on several issues, and regional party branches are challenging the authority of federal government’s decisions. Prime Minister Abiy Ahmed seems to have trouble to get the Amhara political constituency onboard with the Tigray peace process, although positive steps to reconcile Amhara and Tigray leaderships are in the making. Concomitantly, the tension between the Oromia and Amhara branch of the Prosperity Party in increasing. Instead of demanding an immediate Amhara pull-back from West-Tigray, the federal government has adopted an incremental process of disarming and reintegrating regional special forces and militia under the control of federal authorities. By first assuming control over the Amhara military capacities, it is believed that the subsequent transfer of administrative control of the territories of Tigray to Mekelle will not re-ignite the civil war, a point which remains to be seen.

A divided Prosperity Party, increased regional tensions between Amhara and Oromia, continued armed OLA-Oromo insurgency, and rising suspicions between Ethiopian and Eritrean governments, in addition to a host of other ethnic conflicts in the country, divert federal resources and attention from the imperative of enabling and assuring the Tigray transition process. In the midst of such a complex and fragile process, some actions of the international community are also to the disadvantage of consolidating the transition.

The sanctimonious international community

The international community at large, from the UN and AU to EU, US, and other bilateral partners, severely failed to prevent the outbreak of an announced war to start with, and contributed little to alleviate the enormous sufferings and atrocities committed on the Tigrayan people during the onslaught of the civil war.

The rhetoric of “accountability for atrocities” are heard, but little or no action are seen from the international community to demand a transparent and rigorous accountability mechanism. The efforts to end the mandate of the UN investigation body for the atrocities committed in Ethiopia, the International Commission of Human Rights Experts on Ethiopia (ICREE), are also gaining traction in the international community.

After the signing of the Pretoria agreement, the response from the international community to provide humanitarian assistance to the starving Tigrayan people has been sluggish at best, and condemnation of continued Eritrean destabilization of the transition are lacking.

USAID and WFP could just as well have launched a comprehensive investigation into the diversion of aid in conjunction with federal and regional authorities, without suspending the humanitarian assistance

It is becoming increasingly clear that that the key donors to Ethiopia want to normalize relations and resume development aid as quick and smooth as possible.

It is thus a paradox mounting to hypocrisy that the USAID and WFP jointly suspend desperately needed humanitarian aid to Tigray, and subsequently to all Ethiopia, due to alleged corruptive elements in the federal and regional governments have diverted aid for personal profit. To collectively punish over six million Tigrayans for a crime committed by some very few individuals appears sanctimonious, after seemingly condoning impunity for senior Ethiopian and Eritrean military and political leaders for mass atrocities against Tigrayan civilian population.

By initially suspending humanitarian assistance to Tigray alone, the international community has struck a blow at the legitimacy of the TIRA, hurting their international reputation and feeding into the anti-Tigrayan rhetoric still peddled by certain actors in Ethiopia and the Eritrean government. More worrying, however, beyond the immense humanitarian suffering it creates in Tigray, is how it undermines Tigrayans’ trust in TIRA’s capability and capacity to govern and administer the transition. USAID and WFP could just as well have launched a comprehensive investigation into the diversion of aid in conjunction with federal and regional authorities, without suspending the humanitarian assistance.

Securing a hobbled transition

The consolidated stand of all Tigrayans and their unison support for the TDF during the combined onslaught by Ethiopian, Amhara, and Eritrean forces, appears to wither, as the lived reality of a hobbled political transition transpires. With a divided Ethiopian government party, and an indecisive international community, the work of the Tigray interim administration to successfully enable a stable transition seems to be a tall order.

With increased anti-government violence in Amhara and Oromia regional states, the federal authorities and ENDF have more imminent battles to fight than to assure the political transition in a ‘pacified’ Tigray. The international media has put the Tigray war of yesterday and its post-war transition on the back-burner and has shifted its attention to Sudan, which is tearing itself apart in a ‘fresh news-attractive’ civil war. With little international media attention, diplomatic actors have few incentives to proactively engage to prop up a contested transition in Tigray.

The Tigrayan transition will thus hobble on, as Getachew Reda and TIRA attempts to navigate Tigrayan divisions and Ethiopian antagonists. The best we can hope for, is to avoid a return to civil war in Tigray. AS

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Editor’s Note: Kjetil Tronvoll is a Professor in Oslo New University College. Mehari Tadelle Maru is a Professor in European University Institute.




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News: Ethiopia’s wars devour more than $28 b in economic loss, damages; $20 b needed for reconstruction

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Leterbrhan, A a Tigrayan mother from Humera in Western Tigray, lies with her five-year-old daughter in a small room where around 20 people sleep at the elementary school in Abi Adi, a town in central Tigray. Photo: Igor Barbero/MSF/March 2021

Addis Abeba – Authorities estimated the economic loss and cost of damages to infrastructure due to war to have reached some US$28.765.7 billion while they estimate post-war reconstruction cost to be as high US$20 billion, according to the Ministry of Finance.

This was revealed by a study conducted in collaboration with universities and covering war-affected areas with the aim to asses the economic losses and damages to social- such as education and health; productivity including agriculture, industry and trade; as well as infrastructure, mainly transport, electricity and water.

Although the war has devoured mainly the Tigray region, which later on spread to Afar and Amhara regional states, hardly any region has escaped militarized violence over the past five years. Active fighting in the Tigray region was brought to an end with a permanent cessation of hostilities agreement signed between the federal government and TPLF nine months ago in November 2022, but wars and conflicts continued mainly in the Oromia region, where the government continued fighting against Oromo Liberation Army (OLA) despite promises talks, and Amhara region, where militarized conflicts in various areas flared up following the government’s attempt to restructure regional forces. Other regions, mainly Gambella, Benshangul Gumuz, Somali and SNNP regional states have also experienced various forms of militarized conflicts over the course of the fast five years.

A consultation forum was held in Hyatt Regency Hotel in the capital Addis Abeba on Monday where the results of the study was discussed in the presence of Ethiopia’s development partners, mainly from western countries,and UN organizations such as the UNDP.

At the event, the government has announced a US$ 20 billion program for the next five years to rebuild the war-affected areas, according to the Ministry of Finance.

Acknowledging the cost to be above the government’s capacity to pay, Ahmed Shide, the Minister of Finance, has called on “stakeholders and development partners to contribute to the success of the program.” AS




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The 4th Fintex International Exhibition and Conference to be held from June 15th to 18th, 2023, at the Millennium Hall – Ethiopian Business Review

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FINTEX, the International Exhibition and Conference on Furniture, Interior, and Construction Finishing Products, Technologies, Machineries, Raw Materials, Accessories, and Services, is set to take place from June 15th to 18th, 2023, at the Millennium Hall in Addis Ababa. This event, co-hosted by African Trade-Fair Partners and Prana Events, revolves around the theme “PUTTING BUSINESSES IN THE SPOTLIGHT.”

The conference program promises engaging discussions on sustainable development within the furniture, interior, and construction industries, catering to policymakers, business communities, and professionals. Workshops will cover topics such as professional standards and ethics, education and training, capacity building, global business positioning, and surveying techniques.

Anticipated to draw over 4,000 potential buyers and more than 400 delegates, FINTEX offers a platform for exhibitors to showcase the latest advancements across the entire furniture, interior, and finishing value chain.

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Charming Abiy Ahmed, a very modern dictator

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His contemporary authoritarianism puts a smiling face on repression through populism, institutional capture, and slick propaganda.

The world has witnessed the rise of authoritarian regimes many times. By now, we have a clear understanding of how dictators come to power, sustain it, and the damage they inflict.

Hannah Arendt explained that totalitarianism flourishes when societies are divided and fear is widespread. Exploiting these conditions, modern authoritarian regimes are sometimes led by autocrats who, at first glance, appear liberal, reformist, and visionary. At the outset, these charming dictators use performative kindness and eloquence to persuade.

Various terminologies describe this phenomenon, including illiberal democracy, new authoritarianism, and twenty-first-century-tyrant. A new type of dictator has been emerging before our eyes, and they appear charming to those who observe from afar.

A case in point is Abiy Ahmed, the Prime Minister of Ethiopia.

Under his leadership, Ethiopia has transitioned from a repressive party-state system to big man rule. The country is experiencing a multifaceted crisis combining extreme polarization, spiralling violence, loosening social fabric, and a crumbling economy. If the trend continues, state collapse is possible.

Modern dictators like Abiy, what Sergei Guriev and Daniel Treisman call “spin dictators”, operate more subtly than their predecessors who simply applied old-fashioned fearmongering and state violence, imprisoned opponents on trumped up charges, infiltrated civil society and co-opted potential opponents.

Of course, modern dictators also deploy traditional methods. As journalist Adam Gopnik puts it, “When push comes to shove, it seems, the spin dictator starts shoving […] like a reformed drunk who isn’t all that reformed.”

For instance, Abiy has resorted to tried and trusted tactics when faced with formidable challenges such as the mass arrest of opposition leaders in July 2020, the declaration of war in Tigray in November 2020, and, most recently, when the split in the Ethiopian Orthodox Church resulted in a confrontation between the regime and the Holy Synod in January 2023.

Messianic Cult

Abiy is a textbook example of a charming dictator.

He is a ruthless populist who portrays himself as the only person that can save Ethiopia. He has not only crippled fledging institutions, as his predecessors did, but also captured them, and he has deployed smart repression on a massive scale.

He came to power in 2018 on the back of a protest movement and the implosion of the ruling coalition, the Ethiopian Peoples’ Revolutionary Democratic Front (EPRDF).

Abiy’s rise to power captivated the international community. He was showered with accolades, culminating in the 2019 Nobel Peace Prize, mainly for making peace with Eritrea, a deal which, many believe, was more of a war pact to destroy the EPRDF’s dominant party, the Tigray People’s Liberation Front (TPLF).

While many believed he would deliver on his pledges, a prescient few doubted his slick operation.

Abiy’s principles and strategy amount to a hotchpotch of ideas collated in his book, Medemer (synergy). Take the economy. He started off with privatization labelled “homegrown economic reform,” which was in truth a prescription indistinguishable from those thrust on supplicant nations by the Bretton Woods institutions. His forays into economic policy are equally incoherent and frequently trivial, including urging his subjects to fight inflation by eating boiled cabbages with a bit of salt.

In retrospect, many observers would agree that Abiy’s only agenda has been presenting himself as the Messiah of the country, a reformist, and visionary leader to save Ethiopia.

When asked about the need for a transitional government, he simply responded, “I will lead you to the promised land.”

Abiy lectures everyone, everywhere. Professors are his pupils, army generals are his new converts, he preaches to religious leaders, and Ethiopian citizens are his congregation.

Or, more simply, Abiy appears in the rubberstamp parliament and blames the “enemies of the state,” namely TPLF, the Oromo Liberation Army, and Egypt, for supposedly sabotaging his otherwise extraordinary reforms.

Through all this, Abiy is portrayed as the sole person in charge of the entire government machinery. His cameraman is more important than all Ethiopia’s ministers combined because, as a charming dictator, no one else should be seen doing anything productive. Helped by his cult-like entourage, he dominates the digital world through a flurry of pictures and carefully orchestrated performative moments.

Authoritarian Playbook

Charming dictators, such as Turkey’s Recep Tayyip Erdoğan, Victor Orbán in Hungary, and Abiy, share many things in common, particularly how they ascended to high office, the tactics used to consolidate power, and how they survive under pressure. Critically, they all started off appearing liberal and reformist.

Although context matters, charming dictators’ actions all display noticeable patterns. Three notable elements of this modern form of authoritarianism are performative populism, systematic institutional capture, and smart repression.

Benjamin Moffitt defines contemporary populism as “the repertoires of embodied, symbolically mediated performance made to audiences that are used to create and navigate the fields of power that comprise the political, stretching from the domain of government through to everyday life.”

Even though populism is as old as politics itself, common features of contemporary populism include charismatic leaders who present themselves as the authentic voice of the people. These leaders use nationalistic rhetoric, petty diversionary politics, and externalization of the country’s ills to attract support and consolidate power.

Institutions Captured

What makes the charming dictator different is the capture and manipulation of institutions rather than merely jettisoning and delegitimizing them. Modern dictators consolidate power also by creating new ones, when necessary, to dominate the political and administrative landscape.

As Freedom House points out, “The goal is to dominate not only the executive and legislative branches, but also the media, the judiciary, civil society, the commanding heights of the economy, and the security forces.”

Abiy has controlled existing institutions and created new chimera entities since 2018.

The beginning of his premiership saw a welcoming of vocal critics and relatively independent scholars to draft legislation and revamp decayed institutions, which included the amendment of laws pertaining to elections, civil society, and terrorism.

However, Abiy loyalists were quickly installed to secure these institutions. When the political crisis arrived in 2020, he used those loyalists to sideline the constitution and postpone the national election.

But manipulating existing institutions was not enough to fully entrench his rule. During his tenure, Abiy has created several ad hoc commissions and committees, including the National Reconciliation Commission, Border and Identity Affairs Commission, and the National Dialogue Commission.

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He has not used these newly minted institutions to try and diffuse Ethiopia’s deep tensions, but instead primarily to buy time as his government tries to control the endless waves of instability. None of them have brought about any meaningful changes because that was not their design. Their purpose was instead to cement his grip on power, as with the now defunct Reconciliation Commission.

Yes-men and -women have been appointed frequently to his cabinet and removed without reason. This way, the dictator shows he is in complete control, and others within the state apparatus can do nothing but profess their fealty. When the dictator accomplishes his mission and no longer needs them, he throws them under the bus without consequence. That is what he did to one of his much-heralded early appointments, President of the Supreme Court, Meaza Ashenafi, and most of the other women ministers.

The demise of the political opposition in Ethiopia is telling. Abiy co-opted leaders from strong parties, such as Ethiopian Citizens for Social Justice (EZEMA) and the National Movement of Amhara. When he no longer needs these co-opted allies, he cuts them loose.

In countries such as Ethiopia, known for a cycle of violence and accustomed to authoritarianism, charming dictators face little impediment compared to countries with a long democratic history.

Ethiopia’s weak institutional record, particularly the lack of an independent judiciary, means there have been few checks and balances holding Abiy back. Even worse, opposition forces have been smothered and scattered.

Smart Repression

Smart repression has been defined as “tactics by authorities that are deliberately crafted to demobilize movements while mitigating or eliminating a backfire effect.”

Arguably, no regime in a developing country has used digital media for repression as effectively as Abiy has. His cyber army or ‘digital cadres’ worship the regime’s key figures and attack those who dare to challenge the regime’s narratives. They oversee a vast disinformation campaign, inundating social media with trivial yet vitriolic material on a daily basis.

One variant is digital repression. It refers to “the use of information and communication technology to surveil, coerce, or manipulate individuals or groups to deter specific activities or beliefs that challenge the state.” The most commonly used tools of digital repression include disinformation campaigns designed to tarnish the reputation of political opponents, create dominant narratives, and build personality cults for strong leaders.

Smart repression is part of Abiy’s broader political philosophy of crisis fabrication and management. He creates a serious drama, including war, so he can subsequently cast himself as the saviour. In the process, he amasses short-lived legitimacy. That is what happened during the Tigray war and in the aftermath of the Pretoria Agreement, as well with the split in the Ethiopian Orthodox Church.

Abiy has let civil society breathe in Ethiopia rather than extinguish the political space completely. Instead, he ensured that none of them could effectively threaten his grip on power.

On the rare occasions when they did dare oppose the war, his regime divided critics and pitted one against another. Abiy ensures that the leaders of vocal civil society organizations never cross the red line, much less directly challenge the supreme leader.

Even when the state-funded Ethiopian Human Rights Commission documents atrocities, the government simply ignores them and takes no remedial action. The strategy works because of Ethiopia’s unending crises, with past abuses soon covered up by a fresh outrage.

But more significant and wide-reaching is the ongoing extensive detention of journalists, activists, and political figures on dubious charges.

There is a pattern over the last four years of accusing opponents unjustly, imprisoning them for a period before the court releases them on bail, before dropping charges due to a lack of evidence.

Some of the released claim the justice system has improved, and that social media pressure played a role. Thus, many fall into the trap of the charming dictator without noticing the purpose of this frivolous flooding of the courts.

By jailing political opponents and forcing them to post bail, the regime aims to financially paralyze and demoralize them. On top of this, Abiy’s officials have repeatedly detained its critics in unknown locations before releasing them, after advising them to stay away from trouble. Lastly, the subsequent looming fear of wanton imprisonment persuades others to desist from political activities.

In sum, though they occasionally fall back on traditional tactics, modern authoritarian regimes—charming dictators—are different from their predecessors in some noticeable ways. Knowing their playbook should help, at least, to avoid their worst excesses.

Query or correction? Email us

Main Image: Ethiopian Prime Minister Abiy Ahmed receiving the Nobel Peace Prize in Oslo in 2019.

This is the author’s viewpoint. However, Ethiopia Insight will correct clear factual errors.

Published under Creative Commons Attribution-NonCommercial 4.0 International licence. You may not use the material for commercial purposes.

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Increased Paper Prices Leave Publishers in Dilemma – Ethiopian Business Review

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If Ethiopia is proud of anything, it is not the media. For decades, the Ethiopian media landscape has been nothing but a propaganda machine for the incumbent, whoever that may be. However, the media experience has also seen its high points. One was right before the 2005 national election, when tens of thousands of copies were sold in the capital every week. The other moment could be right after the coming to power of Prime Minister Abiy Ahmed (Ph.D.), when the number of publications hit a record high. The latter moment was short lived though. This time, the toughest challenge comes from the price of paper and the migration to digital platforms, threatening livelihoods, writes EBR’s Bamlak Fekadu.

On the second day of April, despite the rush-hour crowd in the Arada district, cornering the church’s compound wall are a few newspaper retailers, spiritual publications, and a few meters across the compound, fresh graduates are seen renting newspapers to search for a job. Paying up to ETB 5 for a few minutes. Lubabo Negash, a father of a son and breadwinner of his household, makes his living from selling newspapers and related products as well as renting out newspapers.

He makes up to ETB 100 and above a day; however, in recent days, business hasn’t been as good as it has been in the past. Lubabo is concerned about the future of his business due to the rising number of people who prefer to read news online rather than buying newspapers. He is considering exploring other business opportunities to supplement his income.

According to what he learned from publishers and distributors, due to the soaring price of paper and other inputs, several private magazines have cut their publishing rates in half, some newspapers have lowered their circulation, and others have switched to digital news media.

“Selling older newspaper publications is profitable because my proximity is closer to the federal first-degree court in the Arada district,” he explained, adding that “older publications, especially those related to high-profile cases, are in high demand among lawyers and law students who use them for research purposes or court cases and could be sold for as much as ETB 300.” The publications covering high profile cases are in high demand by lawyers and researchers who use them as reference materials. He also mentioned that some collectors are willing to pay even higher prices for rare or hard-to-find publications, making it a lucrative business for those who have access to such materials.

This has helped him sustain his business and generate a steady income. “Despite the influence of growing digitization in media outlets and a weak reading culture, the price of a newspaper has doubled from the previous two years’ prices, which were selling for around ETB 10 to ETB 15,” he explained to EBR .

Arada District is regarded as a hub for the printing and packaging services market, which includes firms ranging from century old and larger firms to hundreds of micro, small and medium enterprises, as well as the entire value chain, including retail and distribution of publications. The district, which has hundreds of establishments, hosts the pioneer in the printing business in Ethiopia, Berhan ena Selam, established in 1921 and is one of the first and oldest printing enterprises in Ethiopia. It was once a magazine and newspaper firm. Branna Printing Enterprise, established in 1978, is also a public enterprise in Arada under the Ministry of Defense that provides printing services.

In recent years, the skyrocketing price of printing has cast a dark shadow over the hope of printing companies, causing many newspapers to cease publication, while around eight private and state-owned newspapers and four or five magazines have been able to withstand the price and remain in the market. Others, notably major sports publications, have gone out of business, while others have migrated to digital channels.

The surge in printing expenses has not only raised the cost of domestically published newspapers and magazines, but has also pushed the remaining media to reduce the number of pages and their distribution.

A stakeholder from the sector claimed that the price of the paper they use to print newspapers and magazines is rising unpredictably, posing challenges to their work and possibly driving them out of business. These stakeholders allege that owing to the price adjustment made by the large printing firm Berhan Ena Selam in April last year, some were forced to shift to the digital outlet while others adjusted their selling price.

Due to the growth in the price of paper and the shortage of foreign currency, the price of newspapers has more than doubled since the state-owned Berhan Ena Selam Printing Enterprise increased the printing price by more than 80Pct. Magazines and newspapers are being challenged to carry out work amidst the increase in the price of printing, while some struggled to find advertisers due to the reports and contents they present.

For instance, Addis Maleda, a weekly newspaper, and Kumneger Magazine are among those who halted publication. This is because the cost of printing is spread across a smaller number of publications, resulting in a higher cost per unit. Likewise, the reduction in volume may lead to a decrease in revenue, further increasing the printing cost per unit.The “state-owned” Ethiopian Press enterprise, which publishes newspapers in six different national and foreign languages, including Amharic, claimed that there has been an 80–100Pct increase in the cost of publication since last April.

The publishing cost of a newspaper with 40 pages was ETB 18 and 28 cents per unit, but after the escalation adjustment, the printing price is now ETB 28 and 28 cents. The Reporter, which has been publishing bilingual newspapers for the past 26 years, has raised its price to ETB 20 from ETB 7.5 four years ago. Capital, a weekly English newspaper that has been in operation for 24 years, and Fortune, are now priced at ETB 200, up from ETB 6.5 four years ago.

The century-old Berhan Ena Selam Printing Enterprise attributed its price hike to the global market’s 100Pct increase in paper prices. During the previous fiscal year, the company was able to import goods duty-free due to an appeal filed with the government over the cost of newspaper paper.

It is recalled that the company previously referred to the double tax on paper as justification for pricing increases for its publishing clients. Tewodros Kassa, the editor of Habesha Wog, asserted that the levy placed on media production has its impacts. Despite growing input prices, he noted the 15Pct tax levied when the magazine was printed and the 15Pct tax levied when it was made available for purchase.,

The number of magazine readers has decreased from 8 or 9 thousand to 3 or 2 thousand, as an illustration of how it is driving the generation to quit reading. Newsprint is pulp, a fibrous material obtained by either chemically dissolving wood chips or crushing wood in a grinder, which is the base material for paper. Newsprint is cheaper globally and retains the coarse lignin that other products bleach out, giving it the distinctive look and feel of a newspaper.

The UK based Denmaur Independent Papers Limited, a stockist paper and board merchant, regarded the surge in the price of paper as the impact of the COVID-19 pandemic, which has disrupted every business sector, accelerating demand in some industries and halting others. As a result, demand was flat in 2020 before rising 12.7 million tons in 2021, and the market is still on pace or even slightly behind its long-term trend.

The COVID-19 pandemic has caused a shortage of paper stock, which is causing an adjustment in paper prices. The entire paper mill industry, including manufacturers, wholesalers, printers, and marketing companies, are experiencing difficulties securing the necessary amounts of materials and goods. Industry experts say there has never been a paper shortage of this size in the past. Global supply chain issues continue to have a major impact on paper product availability.

A few hundred meters to the south of Menelik Square, there is another square named after a patriot, Archbishop Abune Petros’s statue, who supported the national patriots against the fascist Italian invaders. The 9.3-ton statue was erected over the light rail’s tunnel beside the School of Journalism at Addis Ababa University.

A printing business specialty market mall is located adjacent to the square. The mall offers a wide range of printing services, including digital and offset printing, binding, and laminating. It is a convenient one-stop-shop for all your printing needs. There are about two dozen firms in the mall. The price of paper has more than doubled in a year in the local market, creating apprehension among the publishers about whether they will be able to proceed with publishing.

Aynalem Zewdie owns a printing and advertising PLC called H3A, inside the mall. Her business offers a wide range of services, from printing invoices and receipt pads, to banners, t-shirts, and books. The rise in paper prices has hampered her company’s operations, and she is now finding it difficult to maintain her operations and remain competitive. Her business relies on government office auctions, the same also goes to other businesses inside the building. “We are in a hot water due to the soaring prices,” she said. ‘Usually, the last nine months of the current fiscal year are the peak season for the publishing sector.

Despite that, this year, we don’t have much work because of the spiraling paper prices and related products. Our business has been severely hampered by the new market trend that introduces quick price adjustments every three days.” she told EBR As a result of the new trend, Aynalem and her colleagues are losing confidence in participating in auctions where award notifications from auction offices take longer than expected.

This delay could lead to the price of the paper doubling, making the auction unsuccessful. Consequently, their advance guarantee, equivalent to 10Pct of the total value, will be taken by the offices following the failure to deliver. “In the event of unforeseen circumstance, such as a sudden increase in paper prices, auction organizers should consider alternative escalation approaches or negotiate to waive the advance guarantee.”

Price ranges on various paper types have increased from 50Pct to 100Pct and beyond; “For example, a 150-gram art paper was sold for about ETB 2,800 about a year ago, but now with the 100Pct increment, it is sold for ETB 6,000,” she told EBR .

The consumption of paper and paper products is growing faster in developing countries like Ethiopia due to the expansion of education and the rapid increase in disposable income. However, the country has not matched that appetite with sufficient local production to meet the mounting demand.

There are six companies currently engaged in the production of rolls of paper sheets from pulp and recycled paper. Although a small number of companies operate in the paper conversion sector, there is no paper mill company in the country.

According to Statista’s, Ethiopia. Importer paper and paperboard worth approximate USD 129 million in 2021. This was a decline as compared to 2018, when over USD 140 million worth of product was imported. Zelalem Birru, an importer and distributor of paper and pulps, who also runs printing services, saw prices reach record highs due to supply-side challenges, including on the forex side. The cost of ink, paper, and plates has risen. For example, the price of a plate (page) increased from ETB 200 to ETB 460 in a year, while the price of ink increased from ETB 800 to ETB 2,200.

“The rising price is actually related to the forex crunch and makes getting a letter of credit difficult.” Said Zelalem, adding, “The nation’s trading culture, on the other hand, has strongly embraced hoarding in the hopes of generating additional profit. The printing, paper, and pulp production industries are important for government initiatives, but their emphasis is unappealing to investors.” He told EBR According to Tamiru Lemi’s research on Ethiopia’s forestry development, Ethiopia earned USD 606,023.5 by exporting 688.97 tons of paper and paper products to different countries between 1997 and 2016. 79.4Pct of these products were exported to Djibouti, while 20.6Pct were exported to other countries. 68Pct of the total income was generated in Djibouti, and 32pct. Came from other countries.

The recently amended investment incentive regulation has neglected education and training and health services such as hospitals and diagnostic and clinical services. These sectors are not included in either regulation’s tax holiday privilege.

It appears that the government is doing nothing to boost domestic paper and pulp production. However, the government’s efforts must be significantly increased in light of the nation’s quickly increasing demand. Failure to do so may result in an overreliance on imported paper products, which could pose negative economic and environmental consequences.


11th Year • May 2023 • No. 117 EBR

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Ethiopia, Germany Partnership Growing Steadily

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Addis Ababa, June 18, 2023 (Walta) – The partnership between Germany and Ethiopia has been growing steadily since the beginning of the relationship of the two countries, Germany Ambassador to Ethiopia Stephan Auer said.

The Ambassador said efforts have been exerted to further strengthen the partnership in political, social and economic sectors.

He pointed out that Germany’s development cooperation in capacity building, agricultural productivity, social development and good governance has been growing.

According to the ambassador, Germany has for example provided capacity building, especially through the International Development Cooperation Agency, capacity building for thousands of citizens who play crucial role in the development of industry.

On the other hand, he stated that professional support has been provided for the Human Rights Commission and the National Electoral Board of Ethiopia, and to also boost agricultural productivity, are being provided.

Moreover, humanitarian aid and rehabilitation activities are undertaken to support vulnerable citizens through people-centered projects, Ambassador Auer told ENA.

For example, through programs “like Productive Safety Net Programme (PSNP), we have donated 16 million Euros. We also doubled our humanitarian assistance to 82.5 million USD. So, we are the second biggest humanitarian donor. We are also contributing to the Response Resilience Recovery Program of the World Bank by contributing additional 30 million USD. Also, when we come to the transitional development programs, we are also trying to address drought and inflation crises by supporting the WFP and UNICEF with 30-35 million USD, respectively,” he elaborated.

Ambassador Auer furthermore noted that there are favorable conditions for strengthening the trade and investment relationship between Germany and Ethiopia, and the two sides are working to make this a reality.

Germany has the desire for the continuity of the peace agreement in Ethiopia, particularly in the northern part of the country. For this to succeed, Germany has been providing the necessary support, he said.

The ambassador, who pointed out that the Ethiopian government’s effort to ensure transitional justice is encouraging, stated that Germany will provided support to make the process successful.

Ethiopia and Germany established diplomatic relations in 1905.

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India, China and the Global Economy

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According to the World Bank and IMF, China and India are both now growing much faster than the West. Their greater populations mean that their output will overwhelm the West’s well before 2100. The global economy history book indicated that their brutal realism about international economic relations, so similar to the attitudes of Britain in 1815 and the United States in 1915, will ensure their success.
Martin Hutchinson, a renowned British author and market analyst, asserted that just as the 19th Century belonged to Britain and the 20th Century to the United States, so the 21st Century will belong to China and India, with no other obvious claimant to the 22nd century. He noted that China and India’s assertiveness, in both economic and geopolitical spheres, is reminiscent not of the hesitant Britain and United States of today, but of their activities in the period when they were rising to global hegemony, around 1815 and 1915 respectively.
According to history, around 1815, Britain claimed the right to seize neutral merchant ships, prevent them from trading with France and collect any British citizens who might be serving on them. Its effective closure of United States trade through the 1807 Orders in Council was the main cause of the War of 1812. Around 1915, the United States maintained massive protective tariffs against the world’s trade, far higher than others’. It also built the Panama Canal and invaded Mexico and Haiti, asserting its rights in the Western Hemisphere much as Vladimir Putin does in neighboring countries today.
Martin Hutchinson stated that, India follows the relatively benign model of Britain 1815 and the United States 1915 fairly closely. Indeed, India is not yet quite as assertive in foreign policy as was either previous emerging hegemon. China on the other hand is in many respects more like the Kaiser’s Germany, claiming disputed areas of ocean by building artificial islands thereon. They are also building a navy that, like the Kaiser’s High Seas Fleet, can be aimed at only one other power, the existing hegemon.
Economically, the case for China and India’s emergence is rock solid. According to figures by Price Waterhouse Coopers earlier this year, even if there is considerable slowing in growth after 2020, by 2050 China will have a GDP of $61 trillion to the United States $41 trillion. Meanwhile, India with GDP of $42 trillion will also have surpassed the United States to become the world’s second largest economic power. In practice, Price Waterhouse Coopers’s estimates are likely to be too conservative. Certainly its estimate of growth for the United States between now and 2050 is higher than has been achieved in the “recovery” from the 2008-9 debacle. Its estimates of growth for India and China both look low.
That is not to say China and India will be as rich as the United States in per capita terms by 2050, even if they grow faster than Price Waterhouse Coopers estimates. Nevertheless they will be considerably richer than they are currently, especially in India’s case. With total GDPs larger than the United States they will be able to project force more effectively than will the United States, even with the help of its NATO allies. Russia, fading from sixth place in GDP (on a purchasing power parity basis) in 2014 to eighth place in 2050, less than one tenth the size of China, will also be a declining force internationally, even if it has managed to annex a few neighboring economic basket cases.
According to Martin Hutchinson, looking beyond 2050, it is difficult to see what might dislodge China and India from their hegemony. Price Waterhouse Coopers estimation revealed that, of individual countries in 2050, in economic terms, the fourth is Indonesia, with a GDP about 30% of the United States and double that of the largest European country, Germany. In terms of population, China and India are several times the size of the next largest country, and will remain so, increasing their geopolitical clout accordingly.
They will still be much poorer than the United States in 2050, and so they will presumably enjoy some further catch-up in terms of wealth and living standards and hence increase their lead in terms of raw GDP. India’s year 2100 population is projected as 1.6 billion by the United Nations and China’s at 1 billion. This compares with a mere 450 million projected for the United States.
Martin Hutchinson noted that it is possible of course that other countries may combine, in much the same way as the EU has attempted so painfully to do. Nigeria’s population is projected as 752 million in 2100. Africa’s population as a whole is projected to approach 4 billion, since fertility rates will remain much higher there than in other regions throughout the 21st century. The world’s population overall is now projected in 2100 to be a grossly overcrowded 11.2 billion. China and India together will represent only 23% of the total compared with today’s 31%, thus be theoretically vulnerable to a new competitor.
An African federation, if one could be formed, would have four times China’s population and 2½ times India’s in 2100. It might have approached those much richer countries in terms of total GDP, while remaining much poorer per capita. That would suggest that the 22nd Century might well belong to such a federation, if it came into existence. But consider the difficulties that have been faced by the European Union.
As it is obvious, most of those African states share a common history and culture, if not language. It seems very unlikely that Africa’s 54 countries will be able to form themselves into a federation tight enough to act as one superpower. It is of course possible that a subgroup of those countries may do so. However it would probably still lag China and India in terms of GDP, even if not in population.
Martin Hutchinson stated that, in any case, if there is to be another geopolitical transition taking place after 2100, it will be for China and India to worry about, not for us inhabitants of what will then be second-class powers. In general, we can anticipate a transition to Chinese/Indian hegemony philosophically, if not without regret. The main difficulty will be that of having two hegemons whose emergence will not be simultaneous.
China is emerging already, whereas India requires another 20-30 years before its economic clout is sufficient to bring top-level geopolitical power with it. This staggered emergence clearly has the potential for conflict. With today’s technology, that could greatly damage the rest of us, even if we stayed out of it directly.
Transition between hegemons does not have to result in war. Britain handed over peacefully to the United States, for example. But it brings risks higher than in periods of hegemonic stability. Politically, both China and India are at present reasonably benign, much more so than the 20th Century Soviet Union. We should also remember that China has a history of global hegemony and one which does not look much like European hegemons.

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Arifpay Financial Technologies S.C partners with IrisGuard – Ethiopian Business Review

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With the goal to provide the EyePay® Network in Ethiopia, IrisGuard established a strategic partnership with the local financial services partner Arifpay. The usage of IrisGuard’s digital payment infrastructure, which only authenticates and processes payments using a person’s iris, is said that it guarantees complete transparency that social support reaches the intended recipients.

The EyePay® Network, which offers proof-of-life for compliance with Know Your Customer (KYC), Anti-Money Laundering (AML), and Counter-Terrorism Financing (CTF) regulations, is indicated that it is one of the most secure and accountable payment platforms currently available. A real-time tracking program reportedly eliminates the possibility of fraud, double-dipping, and duplicate payment by continuously monitoring funds throughout the process.

Imad Malhas, Founder & Managing Director of IrisGuard commented, “We are proud to be part of such a remarkable milestone in Ethiopia with our partners at Arifpay. Ethiopia’s innovative landscape is the perfect stage for our EyePay® Network services and the kind of transparency and accountability levels it brings in the international humanitarian assistance arena. As part of our global expansion plans, we look forward to working with local partners, who share our passion for innovation and for expanding financial inclusion, in new regions across the world.”

 

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IMF welcomes Zambia’s debt treatment agreement – New Business Ethiopia

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The International Monetary Fund (IMF) has welcomed the debt treatment agreement reached by Zambia and its official creditors under the G20 Common Framework.

Managing Director of the IMF, Ms. Kristalina Georgieva has welcomed the announcement of an agreement being reached by Zambia and its official creditors under the Group of 20 Common Framework to restructure $6 billion debt of the country.

“I warmly welcome Minister of Finance Situmbeko Musokotwane’s announcement that the Zambian authorities have reached an agreement with their official creditors on a debt treatment, consistent with the objectives of the IMF-supported program. This unique and innovative agreement specifies both a baseline and a contingent treatment that would be automatically triggered if the assessment of Zambia’s economic performance and policies improves,” said Ms. Kristalina Georgieva.

“I want to thank the official creditor committee, especially co-chairs China and France and Vice-Chair South Africa, for all their work to reach this agreement. This is a significant milestone for the G20 Common Framework under which China, India, Saudi Arabia and Paris Club creditors joined forces to agree deep debt relief for Zambia,” she said.

“This agreement paves the way for the completion of the first review of Zambia’s three-year Extended Credit Facility Arrangement, which is helping put Zambia on a path toward sustainable economic growth and poverty reduction.”

“I look forward to the Executive Board taking up this review in the coming weeks and the continuation of our productive collaboration with Zambia in the period ahead,” said Ms. Kristalina Georgieva.

As at end-June 2021, Zambia’s total public debt was USD equiv. 26.44bn excluding interest arrears, and USD equiv. 26.96bn including interest arrears. Offical

Highly-Indebted-African-countries

Reports show that currently many African countries are highly indebted including Burkina Faso, Democratic Republic of Congo, Nigeria, Ghana, Ethiopia, Botswana, among others.

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