February 22, 2025
Mayor Adanech Abiebie announced that Addis Ababa’s revenue has increased eightfold over the past seven years, a growth she attributes to efforts made “without any tax rate increases.”
Addressing members of the Addis Ababa City Council during its second regular session of the fourth working year on February 19, 2025, the mayor highlighted the city’s significant budget expansion.
She noted that while the city’s budget stood at 30 billion birr seven years ago, it has now reached 111.5 billion birr in just six months. Adanech attributed this remarkable increase to the expansion of tax administration, improvements in tax and audit systems, and enhanced revenue collection strategies.
According to the mayor, a total of 125.5 billion birr was targeted for collection over the past six months, of which 111.5 billion birr—90 percent of the goal—was successfully collected. Compared to the 74.3 billion birr collected during the same period last year, this marks an increase of 37.2 billion birr, reflecting a 50 percent growth in revenue collection.
This development follows more than a year after the Addis Ababa Revenue Bureau implemented a revised tax rate on house roofs and walls, a move that sparked widespread debate and concerns among homeowners about its potential financial impact.
Many residents have voiced their frustration, arguing that the city administration should have considered the prevailing economic challenges before implementing the revised tax rates.
In May 2024, the Addis Ababa Administration announced that it had collected over six billion birr within a year of implementing the revised tax rate on house roofs and walls, exceeding the 300 million birr collected in the previous fiscal year.
Last month, the Enat Party announced that the High Court has accepted its lawsuit against the Addis Ababa City Administration regarding the “controversial” roof and walls tax. The party stated that the court deemed a study conducted two years ago, which served as the basis for the tax, “inadmissible.”
Addressing concerns regarding the revised tax rate, Mayor Adanech clarified that adjustments were made based on the 1968 proclamation by revising the per-square-meter rental rates.
“No additional charges beyond this revision were imposed,” she explained. “Under the new structure, payment plans have been introduced, allowing residential properties to pay 50 percent upfront and commercial properties 75 percent.”
Regarding legal provisions for pensioners and economically disadvantaged individuals, the mayor acknowledged the existence of legal frameworks to support them but emphasized the need for close monitoring of implementation at all levels. “Efforts are ongoing to ensure proper execution,” she added.
The mayor further stated that the city administration has been actively working to enhance tax compliance and address market disruptions over the past six months. As part of these efforts, she noted that 8,450 businesses previously unregistered under the Value Added Tax (VAT) system have now been integrated, contributing to a broader initiative aimed at strengthening tax compliance.
“The control and law enforcement measures implemented in Merkato and other major commercial areas have not only contributed to increasing revenue but have also promoted fairness,” she stated.
In November 2024, Addis Standard reported significant disruptions in trading activities at Merkato, Addis Abeba’s largest commercial hub, where numerous shops remained closed for over a week. The shutdown was primarily driven by protests from shop owners against the mandatory implementation of a receipt-based transaction system, a policy that has sparked heated debates between merchants and government officials.
(AS)
Nigeria Air set for possible revival as Tinubu’s govt reopen talks with Ethiopian Airlines
The Nigerian government may resume discussions with Ethiopian Airlines to revive the stalled national carrier project, Nigeria Air, but under a new name, according to sources.
This development follows diplomatic tensions between Nigeria and Ethiopia over the collapse of the Nigeria Air project in 2024.
The venture, which was meant to have Ethiopian Airlines hold a 49% stake alongside the Nigerian government, was scrapped by the administration of President Bola Ahmed Tinubu.
Aviation Minister Festus Keyamo had labelled it a sellout to Ethiopia and dismissed it as not truly Nigerian.
On August 5, 2024, the Lagos High Court declared the project “null and void” after a lawsuit by the Airline Operators of Nigeria (AON), who argued that the deal would harm local airlines. Additionally, an investigation into alleged corruption involving former government officials is still ongoing.
Despite Keyamo’s strong opposition, recent reports by Punch indicate that tensions between Nigeria and Ethiopia have prompted diplomatic discussions.
Ethiopian Airlines reportedly expressed concerns about the impact of Nigeria’s stance on bilateral relations. Though Keyamo recently visited Ethiopian Airlines, he denied discussing a revival of the national carrier project.
Similarly, Ibrahim Abubakar Kana, Permanent Secretary of the Federal Ministry of Aviation and Aerospace Development, clarified that any discussions about a national carrier align with the broader vision of Tinubu’s administration, rather than a direct continuation of the Nigeria Air deal with Ethiopian Airlines.
(Politics Nigeria)
Gov’t defends wheat ‘self-sufficiency’ claims, says aid agencies may continue imports amid persistent humanitarian concern
The Ethiopian government defended its data on wheat self-sufficiency but said it does not mean a complete halt to wheat imports. Humanitarian agencies operating in the country “may still choose to import wheat rather than purchasing from the local market,” the government said in a statement that aims to push back growing “skepticism and criticism” over Ethiopia’s self-sufficiency claims, including productivity and data accuracy.
The government’s claim of self-sufficiency in wheat production comes in the backdrop of growing concerns of food insecurity affecting millions in Ethiopia, which, according to the latest data from Famine Early Warning Network System (FEWS NET), is expected to worsen in early to mid-2025, especially in conflict-affected and pastoral areas, if rainfall remains below average and humanitarian access remains limited.
The report, released in January this year, highlited that Crisis (IPC Phase 3) or Emergency (IPC Phase 4) food insecurity persists in areas affected by conflict and drought, particularly in Afar, Tigray, Amhara, Oromia, and Somali regions. Inadequate rainfall and extreme heat in late 2024 and early 2025 are likely reduce milk production and livestock saleability, while rainfall deficits of 10-65 percent in Somali and Oromia regions may worsen pasture and water shortages. It projected that if the March-May rains also fail, severe food insecurity is expected in mid-2025.
The June 2024 FAO-WFP “Hunger Hot Spot” report has classified Ethiopia as one of the world’s hunger hot spots, alongside several other African countries, leaving an estimated 13 million people in the country in need of urgent food assistance between July and September 2024; the estimate includes approximately four million internally displaced persons (IDPs), primarily in the Somali, Tigray, and Oromia regions.
In a recent report to Parliament, the Ethiopian Public Health Institute revealed that in the past six months alone, 620 mothers have died due to childbirth complications, while 352 children have lost their lives to hunger.
The institute’s findings were presented in its mid-year performance report to the Parliament’s Standing Committee on Health, Social Development, Culture, and Sports in the first week of February.
However, despite the alarming number of maternal deaths, the report did not provide specific details on the causes, prompting committee members to question its credibility. Tesfahun Bogale, a member of the Standing Committee, pressed officials for more transparency, asking why the reasons behind the deaths were not fully disclosed.
The report also highlighted severe nationwide food shortages over the past six months, which resulted in 232,389 children falling ill due to malnutrition.
However, in a statement released on Tuesday, the Office of the Prime Minister said Ethiopia has taken “decisive steps toward food self-sufficiency” by expanding irrigated farming, using improved seed varieties, and adopting modern techniques. The statement blamed that the shift away from wheat imports has drawn “skepticism and criticism of our productivity and data.”
The government stated that Ethiopia has “completely ceased wheat imports” since the 2020/21 harvest, adding that the country “no longer relies on wheat imports due to a significant increase in domestic production.” However, it noted that achieving wheat self-sufficiency “does not mean that wheat imports will entirely disappear from Ethiopia’s customs data,” as humanitarian organizations “may still choose to import wheat” based on their “operational needs and strategies.”
Addressing concerns over data reliability, the government said wheat production estimates are based on a “rigorous data collection process” that includes “ground surveys,” agricultural censuses, and “remote sensing and image processing” technologies. It emphasized that the Ethiopian Statistical Service (ESS) is “one of the oldest and most reputable statistical offices in Africa” and that the Ministry of Planning and Development holds the “final authority for data clearance” on crop production figures.
Officials claim that Ethiopia produced “151 million quintals (15.1 million tons) of wheat” in the 2022/23 season and “23 million tons” in 2023/24, with output increasing in both the main (Meher) season and irrigated farming.
While framing food self-sufficiency as a key national goal, the government said its approach demonstrates that “Africa has the capacity to feed itself” and “achieve a food-secure future.”
(Ukragroconsult.com)
Fayda digital ID requirement for banking deferred for Ethiopians abroad
Ethiopian citizens living abroad have been granted a two-year waiver from a decision by the government for everyone to compulsorily use the Fayda digital ID for banking transactions.
The waiver was granted by the National Bank of Ethiopia (NBE) in a February 5 circular cited by Shega. The stated reason for the delay is to block potential foreign currency flows into the country.
A government policy introducing the mandatory use of the Fayda for all banking transactions went into effect early last month, beginning with the capital Addis Ababa.
The measure is to be extended to other major cities by July 1, and then the entire country from January 1, 2026. All existing bank accounts are expected to be linked to the Fayda ID by December 31, 2026.
The period of grace granted to Ethiopians living abroad means that they will only be required to present the Fayda ID for banking transactions from December 31, 2026.
Ethiopia announced the decision to make the Fayda ID mandatory for banking transactions last year, explaining that the move is intended to improve financial inclusion, enable banks to better verify their customers so as to reduce cases of banking fraud, ensure data security and make transactions more streamlined and protected.
Beyond requiring the Fayda for bank account opening, the NBE and the Ethiopia ID authority are also collaborating on using the digital ID as a tool for Know Your Customer (KYC) processes by financial and banking institutions.
The policy finds its pace within the broader context of Ethiopia’s digital government strategy and ongoing digital transformation efforts aiming to completely overhaul how public and private services are delivered or accessed across sectors. It is also believed that the policy will contribute in one way or the other to Ethiopia’s digital economy growth.
(BIOMETRIC UPDATE)
Dashen Bank partners with Accion, Mastercard to expand digital services for MSMEs
Dashen Bank has joined forces with global nonprofit Accion and the Mastercard Center for
Inclusive Growth to enhance digital financial services tailored to small businesses' financing
needs.
Accion is supporting Dashen Bank in establishing an innovation hub designed to expand
digital banking services for micro, small, and medium enterprises (MSMEs). This initiative
will introduce new financial products with a particular focus on women-owned businesses.
Ethiopia’s nearly two million MSMEs are crucial to the country’s economy. However, only 6
percent of microenterprises and 1.9 percent of small enterprises have access to formal
credit, with an estimated USD 4.2 billion financing gap in the sector. Limited financial
education, low incomes, and unemployment hinder access to formal financial services.
Additionally, only 39 percent of women—compared to 55 percent of men—hold accounts at
financial institutions, restricting their participation in the growing digital financial
ecosystem.
With the upcoming innovation hub, the bank aims to develop solutions embedded within
MSMEs’ existing supply chains, addressing challenges such as cash-based transactions,
limited assets, and lack of visibility to traditional banks. The hub is a key pillar of Dashen
Bank’s sixth strategic plan, reinforcing its commitment to MSME support, financial inclusion,
and economic development.
Asfaw Alemu, CEO of Dashen Bank, stated, “Despite their significant contribution to
Ethiopia’s economy, small businesses—especially those led by women—face major
financing challenges. Many rely on cash transactions, limiting their financial records, while
women often lack asset ownership to meet collateral requirements. Through this
partnership we seek to address these challenges strengthen our capacity, enhance our
credit offerings, and introduce digital solutions to help small business owners access
resources for growth. This project underscores our commitment to staying ahead in
Ethiopia’s financial sector.”
Yohannes Million, Chief Digital and Information Officer at Dashen Bank, says, the innovation
hub will serve as a catalyst for MSME empowerment by delivering customized digital
banking solutions.
Accion will collaborate with Dashen Bank to develop AI-driven financial products tailored to
MSMEs, including embedded finance solutions and business management support. These
efforts will provide businesses—particularly those owned by women—with better access to
credit and financial tools. Dashen Bank has already issued a tender for constructing this
forward-looking facility. Additionally, the bank will organize an innovation workshop for its
leadership and staff, exploring cutting-edge technologies, including AI, in partnership with a
globally recognized technology provider.
Raliat Sunmonu, Vice President for the Middle East and Africa at Accion Advisory, remarked,
that Ethiopia is one of Africa’s fastest-growing economies, with small businesses playing a
crucial role in its development. “By partnering with Dashen Bank and other key
stakeholders, we aim to build a more inclusive financial ecosystem for MSMEs. Through AI
and other technologies, we can remove biases and barriers, particularly for women-led
enterprises.”
Subhashini Chandran, Senior Vice President of Social Impact for Asia Pacific, Europe, the
Middle East, and Africa at the Mastercard Center for Inclusive Growth, said that Ethiopia is
at a pivotal stage in fostering economic growth through inclusive financial services for micro
and small businesses. “Digital financial services play a crucial role in this journey.”
This initiative is part of an eight-year partnership between Accion and the Mastercard
Center for Inclusive Growth, aimed at transforming financial service providers, digital
platforms, and fintechs. The collaboration seeks to benefit 23 million people across 25
countries, helping them benefit from the digital economy.