The House, which is mandated to address issues pertaining to constitutional interpretation, held its opening session this week after a two-month recess. Among the issues on the agenda were border and ethnic issues across the country, budget subsidy allocations to regional states, and inequity in public project distribution.

Regional administrations receive federal subsidies each year based on a budget-sharing formula devised by the House six years ago. The formula takes into account population, need, and revenue generating capacity.

This year, 415 billion Birr is reserved for regional subsidies, up from 215 billion Birr two years ago. The Oromia, Amhara, Somali, and Tigray administrations are slated to receive more than half of the total.

Newly formed regions such as South Ethiopia, Central Ethiopia, and South West Ethiopia, as well as disputed territories between the Amhara and Tigray regions, have yet to be included in the allocation formula.

HoF members want to know why.

“The Ministry of Planning and Development said these areas would be included in the formula starting from the current 2025/26 fiscal year. However, they remain excluded. Now, the only option is to include them next year. As a result, these areas are facing critical budget shortages,” said one member.

Another member pointed out that newly formed regional states have been omitted despite holding federal recognition.

“This is unconstitutional,” he said.

Both members pointed out discrepancies in the distribution of public projects.

“There is no clear standard or formula to ensure the equitable distribution of projects among regional states. This is also causing uneven development,” said the first.

“We hear that the federal government is allocating huge budgets for capital projects in the new regional states. However, none of these projects are in progress. There must be a critical performance audit,” said the second.

House members pointed out that budget subsidy allocations have shrunk relative to the exponentially growing federal budget.

“Some regional states, especially the new ones, are failing to cover salaries for teachers, health workers and civil servants. Federal projects in the regions are also depleted. For instance in the South West Ethiopia region, including Tepi, Dawro and other parts, all projects have stopped. Even projects started before the new budget formula, including roads, airports and others have stopped,” said the members.

Members of the House Budget Affairs Committee and Speaker Agegnehu Teshager attempted to address the issues.

According to them, the House’s plan to introduce a new subsidy allocation formula this year was foiled by failure on the part of the Ministry of Planning and the Central Statistics Service (CSS) in providing updated data on the regions in question.

 “Available population data for these new regional states is available only for 2019, which is very outdated. We cannot use outdated data for new budgeting. Therefore, we have been using the old population data of SNNPR to determine budgets for the new regions that split off from SNNPR,” said a committee member.

The Ministry and CSS are reportedly carrying out data collection in a bid to update records, but the work could take up to three years.

“Once the data collection is finalized and submitted to us, HoF will start including the new regional states under the new budget formula,” said a committee member.

Agegnehu made a similar argument.

“The major reason for us failing to include the new regional states under the new budget formula is the absence of updated data. Allocating a budget without data leads to uneven and unfair development among regions. Regions are exhibiting uneven growth,” said the Speaker.

He said the exclusion of new regional states from subsidy allocation and the issue of uneven growth are a priority for the administration of Prime Minister Abiy Ahmed. 

“The macroeconomic team and the PM are closely following the issue. As the House of  Federation, we cannot use administrative data to allocate the budget formula. We use only official data provided by MoPD and CSS. We will include the new regional states into the new budget formula as soon as we have the data,” said Agegnehu.

He said the House has urged the federal government to communicate and work with regional administrations to provide a temporary solution/

“Transitional solutions are necessary for the new regional states and disputed areas suffering from budget shortages. This transitional solution must come immediately,” said the Speaker.

The European Union Political and Security Committee (EU PSC) and the African Union Peace and Security Council (AU PSC) held their sixteenth annual joint consultative meeting in Brussels this week.

In a statement issued following the meeting, both sides expressed concern over the proliferation of Small Arms and Light Weapons (SALW) into the region and called for concerted efforts to curb the illicit flow of SALW including through the provision of the requisite capacity building for countries.

They underscored the importance of fighting against the supply of sophisticated weapons to terrorist groups and financing terrorism, including illicit financial flows and exploitation of natural resources, through targeted and coordinated actions aimed at preventing, tracing, recovering and ensuring the return of proceeds of illicit financial flows to countries of origin.

They also raised concern about the destabilizing presence of transnational criminal organizations, mercenaries and irregular private military companies connected to third states and the spillover of insecurity towards West African coastal countries.

Both parties emphasized their commitments to break the cycle of violence in the African continent and reiterated their pledges to support efforts in the area of Post Conflict Reconstruction and Development (PCRD.

On Somalia, the EU PSC and the AU PSC expressed grave concern over the persistent threat posed by Al-Shabaab to peace, security and stability in Somalia and the region. The statement paid tribute to the AU Support and Stabilization Mission in Somalia (AUSSOM) and Somali Security Forces for their enduring commitment and sacrifices; and expressed condolences to the families of the AUSSOM personnel who have paid the supreme sacrifice in the cause of peace and stability in Somalia.

Both sides welcomed the launch of the AUSSOM and encouraged the AU to fully deploy its new mission, completing the transition from ATMIS to AUSSOM. They noted that AUSSOM is critical for the peace, security and stability in Somalia and stressed that without adequate, predictable and sustainable funding including the provision of sufficient force multipliers and enablers, the mission may have major difficulties executing its mandate.

They reiterated the call for diversification of support by international partners in order to guarantee the long-term financial stability of the mission and to ensure the effective implementation of its mandate, as illustrated at the High-level AUSSOM financing event on 25 September 2025. Both sides welcomed the AU contribution to the financing of AUSSOM and the pledges made by both traditional and non-traditional donors.

On the situation in Sudan, the EU PSC and the AU PSC reaffirmed their strong commitment to respect the sovereignty, unity and territorial integrity of Sudan.

Both sides expressed deep concern over the conflict between the Sudanese Armed Forces (SAF) and the paramilitary Rapid Support Forces (RSF). They called on the belligerent parties to immediately cease hostilities and establish a sustainable, permanent ceasefire to return to negotiations followed by an inclusive national dialogue and political transition.

They further urged the parties to establish a humanitarian truce to allow for humanitarian access and protection of civilians, so as to provide relief to the population in need.

“There have been conflicts between Gambella and South West Ethiopia for a while. It was initially caused by a dispute over land between the two regions. The conflict has led to a loss of lives. Because the disputed border area is rich in minerals, the conflict has grown in magnitude. Now, Nigerian migrants have gotten involved in the disputed areas,” said a House member during a session this week.

Although the two regional administrations have held dialogue on the issue, they have been unable to quell it, leading the House to call on the federal government to intervene to “solve the conflict and ensure peace.”

The fighting between Gambella and the newly formed South West Ethiopia region is just one example of the border disputes and ethnic tensions brought up during the session. Territorial disputes between Amhara and Oromia, border clashes and claims between Afar and Somali, Oromia and Somali, Benishangul and Amhara, and disputes involving Dire Dawa were also discussed.

Hof members demanded to know why these disputes have been allowed to continue for years.

“The case of Wolkait, Raya and Tselemt has been rolling down for a long time in this House. It has also become a source of conflict and insecurity for the regional states. Why has the House failed to take action and solve the problems once and for all? Illegal actions over the disputed areas should not be allowed to continue,” said one member.

The MP warned that failure to resolve territorial disputes before the upcoming elections would be a monumental failure on the part of the government and would “doom the election.”

House Speaker Agegnehu Teshager provided an update on the situation, which he says could lead to renewed conflict, and called on the regional administrations of Amhara and Tigray to resolve the dispute through dialogue.

“The Tigray region has been asking and demanding to control the disputed areas as per the Pretoria Agreement. This could not be realized. The region’s administration also asked for a referendum. But a referendum is difficult. The issue might lead to conflict so we’re examining everything cautiously. Both Amhara and Tigray must sit down for dialogue. A holistic solution is crucial for all of the identity and land disputes arising across the country,” said Agegnehu.

He noted a rise in the number of petitions for new regional states reaching the House.

“There are several petitions for [the creation of] regional states. Some people are sitting in Addis Ababa but want to create a new regional state somewhere in Ethiopia. Dialogue and stability is critical. Several parts of the country are also requesting the intervention of the federal government. Some are calling themselves nationalities or nations without legal recognition. We’re fielding some very heavy questions. This is also bad for our party,” said Agegnehu.

The African Union’s campaign to recover assets stolen from the continent remain ineffective in the face of growing illicit financial flows, reads a new report from the Coalition of Dialogue on Africa.

It criticizes the AU’s Common African Position on Asset Recovery for having achieved little since it was established five years ago to identify, trace, and repatriate African assets. The report, published in partnership with the AU high-level panel of illicit financial flows (IFFs), indicates that IFFs from Africa could be up to USD 60 billion a year.

The massive hemorrhage of assets makes Africa a net creditor rather than a debtor to the rest of the world.

The paradox of Africa’s underdevelopment is compounded by its external debt burden, states the report, and the problem is likely to grow worse.

The report’s authors indicate that shortcomings in the UN Convention against Corruption are a barrier to asset recovery.

“UNCAC has not explicitly declared return of recovered assets to countries of origin as an inalienable right of such countries. Recoverable assets within the UNCAC framework are limited to proceeds of corruption, which is at odds with the findings of the ECA-AU High Level Panel on Illicit Financial Flows from Africa,” it reads.

Those findings estimated that, as of 2015, Africa was losing conservatively USD 50 billion annually to illicit financial flows, while an estimated one trillion dollars had been lost over a 50-year period.

“Admittedly, UNCAC provides a framework for international asset recovery. However, even the most optimistic exponent of UNCAC and the international system for asset recovery, can concede that there are numerous challenges that confront countries of origin,” it reads.

The report cites a World Bank initiative that documented major barriers to asset recovery, which include institutional issues, legal gaps and requirements that delay assistance, and communications issues.

It notes that developing countries have begun paying attention to commercial IFFs—illcit flows carried out under the cover of business arrangements like joint ventures, production sharing agreements, and mineral concessions.

The report highlights a case involving government corruption in Nigeria, where Siemens AG bribed officials to secure telecommunications contracts that ultimately netted the company USD 1.1 billion in profits.

The Pulse Africa report indicates that both currencies experienced year-to-date reductions in value that exceeded 10 percent. In South Sudan, the weakening of the currency is attributed to damages in the oil pipeline from the war in neighboring Sudan, which has lowered export revenues.

In Ethiopia, the foreign exchange market liberalization effort is being tested by a surge in the parallel premium as businesses struggle with limited formal access to US dollars amid market inefficiencies and restrictions, according to the report.

In response, the National Bank of Ethiopia (NBE) has announced a series of measures that included public disclosure and capping of banks’ fees and charges on foreign exchange transactions, and higher limits on foreign exchange sales allowed for advanced payments for imports, business, and personal travel.

The report highlights other challenges facing Sub-Saharan Africa and Ethiopia.

It reveals that more than 53 percent of the Sub-Saharan urban population lives without adequate housing, with more than 56 million affected in Nigeria alone. In Ethiopia, more than 17 million people live without adequate housing, according to the World Bank analysis.

It cites unemployment as another major problem. Nigeria tops the list with 98 million people unemployed, followed by DRC at 72 million, Ethiopia 67 million and Tanzania 40 million.

“In Sub-Saharan Africa, underemployment is extensive, reflecting the inability of economies in the region to create the number of steady wage jobs needed for the growing population. Inadequate wage job creation leads to poor quality jobs. Instead, high levels of involuntary self-employment and informality are the norm,” reads the report.

Only one in six workers has a wage job in the region, as opposed to one in two in high-income countries, according to the analysis.

The World Bank notes that Ethiopia’s efforts at poverty reduction have been impeded by the COVID-19 pandemic, the northern war, droughts, slowing GDP growth, and ballooning inflation.

As a result, poverty levels (the proportion of individuals earning less than three dollars a day) have spiked 39 percent in 2021 from 33 percent in 2016.

“The significant decline in living standards in rural areas, where approximately three-quarters of the population resides, has accentuated the rural nature of poverty in Ethiopia,” reads the report.

Nonetheless, the World Bank is optimistic that Ethiopia will be among the countries with an improved growth forecast in the coming years.

Economic activity in Sub-Saharan Africa is projected to grow by 3.8 percent in 2025, up from 3.5 percent in 2024 and 0.3 percentage points higher than the April 2025 projection from Pulse Africa. Ethiopia’s growth forecast has shown a 0.7 percentage point improvement.

“The projected acceleration in Sub-Saharan Africa’s growth in 2025 is underpinned by improved terms of trade across much of the region, contributing to currency stabilization and, in some cases, appreciation. Declining inflation in many countries has allowed for a gradual easing of monetary policy, boosting household purchasing power and creating space for further rate cuts. These favorable conditions are fueling a recovery in private consumption and investment,” reads the report.

It warns that ongoing fiscal consolidation efforts may continue to weigh on overall economic activity, moderating the pace of recovery in some economies.

Nonetheless, the prevailing practice across Africa, including Ethiopia, tells a different story. In many cases, both the finance and revenue ministries are primarily involved in mobilizing resources. The glaring reality of mission drift amidst thinning development finance sources was a central topic of discussion for Africans over the past week.

The 11th edition of the African Think Tank Summit opened in Addis Ababa on October 8, bringing together more than 300 think tanks, policymakers, civil society representatives, private sector leaders, and development partners from over 50 countries.

Themed ‘From Taxation to Action: Bridging Policy and Implementation in Public Financial Management (PFM) in Africa,’ the Summit delved into a topic pressing to African economies: dropping tax to GDP ratios and widening deficits in development financing. 

The three-day event was organized at the Sheraton Addis hotel by the African Capacity Building Foundation (ACBF) in partnership with the African Union Commission (AUC) and the African Leadership Excellence Academy (AFLEX). It enjoyed support from the Hewlett Foundation and the World Bank Group, hosted by Ethiopia through the Ministry of Finance, with additional partnership from AUDA-NEPAD and UNECA.

The summit echoed the disparity between tax potential and actual collections across African economies. Experts concluded that Africa is relying more on donors and credit as domestic resource mobilization wanes. The issue is clearly one that is weighing on the continent’s political leaders, as improving domestic resource mobilization has been the theme and top agenda for past AU summits as well.

“Taxation is a sign of civilization. Developed nations like the US and China depend on tax. But Africa has been relying on donors’ money and borrowing for its development financing,” said Zadig Abrha, AFLEX president, as he made his opening remarks. . 

Mamadou Biteye, executive secretary of ACBF, is also worried about Africa’s growing development finance demand and waning resource mobilization.

 “Twenty-two African economies are currently in debt distress. Debt constitutes 66.8 percent of African GDP. Africa is losing two to five percent of its GDP to climate impact. Modernizing tax systems, reforming and enforcing laws, is crucial for Africa to improve domestic resource mobilization. Investing in sustainable capacity, leveraging technology and building resilient institutions are also key,” said Biteye.

He observed that Africa’s tax system is mired in various challenges arising both from governments and the taxpayers. 

“Structural bottlenecks in Africa’s tax system also persist. The large informal sector, institutional weaknesses, narrow tax base, limited accountability, corruption and low compliance are among the outstanding factors for Africa’s low tax-to-GDP. The deficit between potential tax and actual tax collection is wide in African economies. Governments also must improve public service deliveries to improve tax. Tax is not just a necessity but also sovereignty, freedom. Tax should not be a burden, but a covenant between citizens and governments,” said Biteye.

Fikadu Tsega is a former state minister of Justice who was recently appointed to lead the Ethiopian Policy Studies Institute (PSI), a think tank that undertakes research and forwards policy inputs to government decision makers. He is also concerned about the issue.

“The success of Agenda2063 hinges on our ability and success in domestic resource mobilization. Africa is home to 30 percent of global minerals and 60 percent of arable land, among others. But Africa has the lowest tax to GDP ratio,” he said.

Fikadu notes there are a myriad of factors stemming from both the government and taxpayers that are contributing to low revenue mobilization.

“Weak administration, evasion, diversion, informal economy, mismanagement in procurement, opaque resource utilization, and political economy challenges are contributing. Public trust in governments remains limited, especially when resources are mismanaged. A robust, equitable, fair and transparent tax system is critical,” said Fikadu.

Holy Ranaivozanany, deputy executive director of the Africa-Europe Foundation (AEF), warned that African economies can no longer count on external sources of finance given the ongoing upheavals in the global order.

“A paradigm shift is a must at this uncertain time, from a donor mindset to co-investment and self-sufficiency,” said Ranaivozanany.

Aynalem Nigussie, minister of Revenue, shares the concerns.

“Policy on its own is insufficient. Institutional capacity and political commitment matters. Robust and sustainable public finance management [PFM] matters. Tax must reflect in public service delivery, public development, and poverty reduction. Broadening the tax base and strengthening the social contract between citizens and government is critical. Robust PFM is key for Africa’s sovereignty. In the past six years, Ethiopia has registered significant tax revenue by introducing tax reforms under the overarching HGER. Debt management also improved. More tax revisions are underway,” said Aynalem.

While most speakers at the event, especially those representing governments, pushed for increased taxation, other experts have their reservations, warning that a blind push towards more tax revenue can have dire consequences.

Prof. Njuguna Ndung’u, senior advisor at the Trade and Development Bank Group, is one of the latter. Hailed as the architect of Kenya’s economy, Ndung’u is also  involved with major organizations like UNECA and AfDB, among others.

“The big question in Africa’s development is how to finance infrastructure. For the private sector, financing infrastructure is unfeasible because of its low profit. So, taxation must improve so that governments finance infrastructure. To do this, tax optimization is crucial. The problem is, when taxation distorts markets. When taxation increases, it distorts markets and goods start flowing to the informal market. Domestic debt is also not an option for African governments. It only crowds out the private sector. Instead, African governments should devise ways to involve financial institutions in domestic resource mobilization. This creates crowding-in, which is good. More taxation will also lead citizens to suffer,” he said.

Ndung’u sees public-private partnership (PPP) as the ideal solution.

“The private sector has capital, and technology. But the private sector is very cautious when it comes to time and returns. African economies also need to eye taxing the digital era economy. Digital ID is just the first step,” said the expert.

However, people with experience in tax administration say the work is easier said than done.

“Macro-stability and economic transformation are the two most difficult challenges of African economies. There are many challenges to tax reform. Structural adjustment is difficult. Most ministries of finance in Africa are busy with mobilizing resources. They are hardly working on economic development, and solving development challenges. They are not crafting strategic visions. Formalizing the informal sectors is also a challenge. In general, things are improving in Africa, but not sufficient,” says Hakim Ben Hammouda, former Tunisian minister of Finance and president of Global Institute 4 Transitions (GI4T).

Ndung’u says that high tax rates are unlikely to generate high tax revenue.

“Optimizing all tax instruments is crucial. African economies are struggling with a tax-to-GDP ratio stagnating at around 17 percent on average. Structural issues matter. Economies must be vibrant to increase tax collections. Otherwise, recession also bites. Can taxation incentivize tax collection? Yes, but if tax instruments are optimized. Digitization, open up, expanding tax base, reform, and levying reasonable tax rates are crucial to optimize tax tools,” said the expert.

Dr. Christiane Abou-Lehaf, head of international cooperation at Afrexim Bank, has a different opinion. During the summit this week, she argued that the government’s tax ambitions cannot succeed without fairly involving the private sector and improving the service side for the taxpayer.

“For instance in this summit, private sector representatives and also local financial institutions should have been participating,” she observed.

Other experts also argue that the public, particularly those in the tax net, are being overtaxed and warn of deepening poverty and discouraging businesses for the sake of collecting more taxes. Scholars also argue that there is no ‘huge uncollected tax potential in the economy’ as governments and policy makers claim. They note that the more the public and businesses lose trust in governments, the less tax comes to government coffers, calling for fundamental renewals of social contract terms.

Where Does Ethiopia Fit?

Ethiopia is home to one of the lowest tax-to-GDP ratios in the world, lower than the 17 percent and 22 percent average for Africa and globally, respectively. However, this is at odds with the country’s fast growing tax collection.

In terms of data, Ethiopia’s tax-to-GDP ratio went up to 12.4 percent in 2015, before nosediving to 7.5 percent in 2023, according to a detailed document released by the Ministry of Finance last August. The document is dubbed ‘Ethiopia’s tax-to-GDP ratio: Benchmark estimation and performance analysis.’

“This means that 7.5 Birr out of every 100 Birr earned in Ethiopia were collected by the government in the form of tax. This was less than other sub-Saharan African (SSA) countries. In the same year, Uganda’s tax-to-GDP ratio was 13.1 percent, Kenya’s was 15.2 percent, and Rwanda’s was 15.7 percent. The median of all other SSA countries was 13.2 percent (in 2021). Ethiopia collects substantially less than other SSA countries in direct taxes, VAT and excise duties,” states the document.

But in real terms, Ethiopia’s actual tax collection has grown substantially. In the 2024/25 fiscal year, the government collected 700 billion Birr in tax revenue. Under Aynalem, the Ministry of Revenue targets the one trillion Birr milestone in the current fiscal year.

Despite the growth, tax revenue is far from enough to cover the ballooning federal budget, which this year is nearly two trillion Birr (USD 14.6 billion). The government is largely relying on domestic debts, treasury bills (T-bills), government bonds, and non-concessional loans to fill the budget deficit. Approximately two-thirds of the budget deficit (416.8 billion Birr) is expected to be financed through domestic sources, primarily via T-bills.

The Finance Ministry’s analysis attributes the dwindling tax-to-GDP ratio to low GDP per capita, high share of agriculture in GDP, low share of urbanization, low urbanization rate, uncollected excises and VAT on fuel, absence of excises on airtime data on financial transactions, and low VAT rate, among others.

The low revenues have led the government to introduce a barrage of new tax instruments and also raise rates on existing tax lines over the past year.

The northern war also had a substantial effect on tax collection, according to the Ministry. In 2019/20, tax collection by the Tigray regional administration accounted for 0.16 percent of Ethiopia’s GDP. This figure fell by more than half during the first year of conflict, and then again to 0.04 percent in 2021/22, according to the Ministry.

Tax revenues in neighboring regions, which were also affected by the war, also fell. In Afar, collection fell from 0.04 percent of GDP in 2020/21 to 0.01 percent by 2023. In Amhara, it dropped from 0.4 percent of GDP to 0.36.

The analysis also notes that large taxpaying entities in Tigray, such as EFFORT, had all but stopped paying taxes by 2022.

“As there are likely many other companies outside the EFFORT portfolio that were exposed to the Tigrayan conflict, looking at the EFFORT group gives us a lower-bound estimate of the true impact of the conflict on companies based outside Tigray that have operations in Tigray,” it reads.

The Ministry also proposes that Ethiopia’s low tax-to-GDP ratio could stem from inflated GDP figures.

“A final possible reason for a low tax-to-GDP ratio is that GDP – the denominator – is overstated. For instance, if GDP was in fact 10 percent lower than officially measured, the true tax-to-GDP ratio in 2022/23 would be 8.3 percent rather than the official 7.5 percent. If GDP had become increasingly overstated in recent years – in other words, if GDP growth had been overstated – this could also explain (part of) the decline in the tax-to-GDP ratio,” it reads.

There are many reasons why GDP or GDP growth may have been overstated, reads MoF document.

The process of GDP measurement is difficult in a country with a large agricultural sector and a large informal sector, so GDP growth may simply have been inaccurately measured, according to the analysis.

More problematically, there may have been political pressure to make statistical choices that boosted measured GDP, or outright data manipulation, it notes.

Tax officials collected 165 billion Birr in 2014/15. This jumped to 636 billion Birr in 2022/23. During this period, GDP surged from 1.3 trillion Birr to 8.7 trillion Birr.

AMR and zoonotic and foodborne diseases cause more than 100,000 deaths a year in Ethiopia, with AMR directly responsible for 21,200, highlighting an increasingly worrying problem for an overworked public health system.

Officials at the Ministry have introduced the ‘National One Health Five-Year Strategic Plan’ in a bid to contain AMR and prevent the spread of communicable diseases by 2030.

It comes as part of the One Health initiative under agencies such as the World Health Organization (WHO), Food and Agriculture Organization (FAO), World Organization for Animal Health (WOAH), and UN Environment Program (UNEP)

The document reveals that 85,300 people die each year from AMR-related causes, another 2,700 from rabies, and at least 500 more from foodborne illnesses tied to unsafe vegetable and dairy products.

Rabies deaths primarily occur due to dog bites, according to the report, while anthrax, brucellosis, HPAI, and RVF pose a threat. Neglected tropical diseases (NTDs), particularly malaria, also remain a serious problem.

Food-borne illnesses are common and dairy products alone are tied to 500,000 cases of illnesses and 200 deaths annually, according to the report. Unsanitary vegetable consumption contributes to an estimated 300,000 cases and 320 deaths a year.

Ethiopia’s current foodborne disease burden is significantly impacting public health and the economy. These diseases lead to numerous cases and deaths annually, with a high Disability-Adjusted Life Year (DALY) count, reflecting years of healthy life lost.

The annual economic burden of the three major food-borne diseases in Ethiopia, namely Campylobacteriosis, E. coli infections, and non-typhoidal Salmonellosis, is estimated at USD 723 million.

Experts at the Ministry expect the toll to grow worse in light of climate change and subsequent hazards such as floods, droughts, and soil erosion.

Anti-microbial resistance constitutes a large part of the Ministry’s response plan, which reflects the wider threat AMR poses to health globally. Worldwide, AMR causes an estimated 1.27 million deaths each year.

Experts warn that AMR is increasing at an alarming rate in Ethiopia, where, in 2019, there were 21,200 deaths attributable to AMR and 85,300 deaths associated with AMR.

The country has the 35th highest age-standardized mortality rate per 100,000 population associated with AMR across 204 countries, according to the Ministry. Multi-drug resistant bacteria, including strains of Methicillin-resistant Staphylococcus aureus (MRSA) and vancomycin-resistant enterococci (VRE) are growing increasingly common.

Contributing factors included inappropriate antibiotic use, inadequate infection control, and a lack of surveillance, according to experts.

Reports indicate that failure to tackle antimicrobial resistance could cause an estimated 10 million deaths a year and cost up to USD one trillion by 2050 with the highest impact expected in Asia and Africa, which likely will account for an estimated 4.7 million and 4.2 million deaths, respectively.

The Ministry estimates the One Health strategy will cost at least USD 44 million to implement.

Auditors say that ministers, state ministers, directors, and senior officials across government agencies routinely procure and use several vehicles at a time, with some even assigning publicly-owned cars to relatives.

The abuse also raises questions about fuel consumption at a time when prices are at a record high.

A Council of Ministers circular obliges federal officials to utilize standard, fuel efficient vehicles procured centrally and allotted to the various agencies. Offroad vehicles such as a Toyota Land Cruiser or Mitsubishi Pajero are limited to officials who are expected to conduct routine field visits during their work.

One official can access up to two vehicles depending on work-travel intensity.

However, auditors found that the rules set out in the circular largely go ignored. The Auditor General’s report reveals that officials routinely procure and use up to five vehicles at a time, while offroad vehicles are assigned to officials who are not expected to carry out field work.

The circular permits ministers and state ministers to use two vehicles—one for the minister and one for their family—but auditors say most ministers use at least three, if not four or five.

Some ministers allocate additional cars to their chauffeurs, personal employees, or even hold on to a reserve fleet, according to auditors.

It is common to see other officials assign vehicles and chauffeurs to relatives, contrary to the law, according to the audit report. It cited the Ministry of Justice as an example, where a dozen more vehicles than allotted are being used by unspecified officials.

Auditors say several ministries and institutions responded to their demands for an explanation with the response that they do not have exact data on their respective fleets.

The federal government does not have a working vehicle fleet management system, according to the audit report.

Auditors say that inquiries at the transport and logistics departments of several ministries revealed that some ministers use up to seven cars. Department heads told auditors they are unable to refuse access to the ministers owing to seniority.

These kinds of abuses are common at public universities as well, according to the Auditor General. 

The government body responsible for enforcing the Council’s circular on vehicle use is the Federal Public Procurement and Property Authority (FPPPA). Three years ago, FPPPA planned to conduct an inspection of all ministries and institutions, and compile a report on the situation of government vehicles used by officials.

However, the inspections have not been conducted nor was a report compiled.

Auditors say FPPPA is doing nothing to prevent the ongoing abuse, and note that it lacks the tools to do so.

Fuel consumption is also worryingly high due to the abuse and the use of fuel inefficient vehicles, according to the report.

Of the 87 federal institutions that use the pooled vehicles, only 47 percent send fuel and oil utilization reports to the FPPPA. But the FPPPA does not cross-check the figures and enforce the rules, states the audit report.

Auditors say that taking legal action against officials abusing the vehicles and fuel remains impossible because the FPPPA has not conducted a legal audit of various institutions and the vehicles under them and reported to the Ministry of Finance as it is legally obligated to.

They argue that some ministries and institutions may not even be aware that they have to report their vehicle use.

The Auditor General has urged officials at the FPPPA to introduce a digitized national fleet management system, periodically conduct audits, and report abuses to the Finance Ministry.

The Auditor General wants to see the Authority undertake rigorous study and planning for policy making, to introduce a roadmap that precisely indicates the purpose and distance officials travel, and specifies the types of vehicles permitted along with the fuel, oil, and spare parts rations.  

The Ethiopian Communications Authority (ECA) should consider issuing licenses for satellite operators like Starlink in order to maximize connectivity and digitization, urges a new report by the World Bank.

The ‘Ethiopia Telecom Market Assessment’ launched by the World Bank and Digital Development Partnership (DDP) this week highlights the potential low earth orbit (LEO) satellite providers such as Starlink and OneWeb offer in terms of providing easily configured internet services to remote unconnected rural areas.

LEO satellite services could also prove a useful tool for humanitarian response efforts, according to the assessment.

“Ethiopia should adjust its licensing framework to accommodate new entrants under class licenses or other low-entry requirements, ensure fair pricing for leased network access, and remove bureaucratic barriers preventing market entry,” it reads.

Although the assessment praises the government’s decision to liberalize the telecom sector, claiming the move boosted GDP growth, it also criticizes the uneven playing field between state-owned giant Ethio telecom and recent entrant Safaricom Telecommunications Ethiopia.

Safaricom Ethiopia was formed after the Global Partnership for Ethiopia, a consortium composed of Kenya’s Safaricom, Vodafone, and the Japanese Sumitomo, acquired Ethiopia’s first telecom operator’s license in May 2021 for a USD 850 million fee.

The company entered the market with USD 1.6 billion in funding, of which USD 100 million is owed to the World Bank’s International Finance Corporation (IFC).

“The planned level playing field has not fully emerged. Asymmetries stem in part from the fact that EthioTel [sic] was not obliged to pay the same license fees (USD 1 billion in total) as Safaricom. EthioTel has been deemed to be the operator with SMP in six market segments (and Safaricom in one). Also, Ethiotel is pricing voice calls below the cost of the mobile termination rate (MTR) set by the regulator. This means that Safaricom loses money on every single call made to EthioTel customers, as it needs to match EthioTel prices,” reads the World Bank’s assessment.

The report estimates Safaricom’s MTR losses at USD 1.6 million a month.

It raises concern about “possible preferential arrangements for state-owned enterprises in handling government mobile money transactions” and alleges that Ethio telecom has recently blocked access to Safaricom apps like its flagship mobile money platform mPesa.

It also accuses Ethio telecom of undercutting the competition.

“Most African operators lose money on data, at least in the early years of service, but the rates that EthioTel offers, of around 16 US cents per GB since devaluation, may be unsustainable. In other countries in Africa, the price rarely falls below 25 US cents per GB. EthioTel also offers additional discounts to customers that buy data packages using its Telebirr service, creating a ‘club effect’ that encourages users to stay on the same network,” reads the assessment.

The World Bank wants to see the Communications Authority take measures to correct what it sees as unfair competition.

“These concerns warrant further investigation by national authorities,” reads the report.

It also highlights challenges facing Safaricom in terms of infrastructure, which it relies on Ethio telecom and state-owned Ethiopian Electric Power (EEP) to provide.

The report reveals Safaricom pays out USD three million to Ethio telecom each year for infrastructure rental.

“The absence of independent tower companies and infrastructure companies has constrained options for cost-effective deployment and slowed network expansion while simultaneously increasing EthioTel’s wholesale revenue, reinforcing asymmetries in market structure,” it reads, noting that Safaricom’s CAPEX investment exceeds USD 2.2 billion.

The assessment highlights Ethio telecom’s dominance in the sector. The state enterprise registered close to USD 700 million in revenues in the 2024 fiscal year, more than 12 times the USD 53.6 million Safaricom Ethiopia registered during the same period.

Safaricom Ethiopia lost USD 325 million in 2024, according to the report.

“Safaricom’s FY24 revenue (USD53.6 million) does not even cover the annual costs of its licenses (USD1 billion over 15 years, including mobile money, or USD 66.7 million per year). Thus, this raises concerns about long-term investment sustainability and return on capital,” it reads.

The African Union has expressed serious concern about the growing presence of foreign military forces, including mercenaries and irregular private security outfits, on the African continent.

A communique issued by the AU Peace and Security Council last week following a meeting between heads of state and government in New York conveys alarm over the proliferation of foreign forces on African soil.

“The Council strongly condemns the presence of uninvited foreign military forces, including mercenaries and irregular private security forces, in some member states as they are contrary to the letter and spirit of the African Common Defence and Security Policy and, in this regard, calls for the immediate and unconditional withdrawal of such uninvited foreign forces,” it reads.

The Council wants to see the deployment of the African Standby Force—a continental peacekeeping force established by the AU—as a response to the presence of uninvited military forces. However, it requires several African regional economic communities (RECs) to ratify an agreement with the AU before deployment can proceed.

“The Council encourages the finalization of the MoU between the AU and RECs so as to fully operationalize and facilitate the deployment and employment of the African Standby Force (ASF) and to ensure its effective use in preventing full-blown conflicts and also manage conflicts in accordance with the relevant provisions stipulated in the PSC Protocol,” reads the communique.

The AU also expressed deep concern over the growing scourge of illegal exploitation and trade of Africa’s natural resources by armed and terrorist groups, which are destabilizing the continent and fueling conflict.

“[The Council] underscores the importance of strengthening national and regional regulatory frameworks governing natural resource management [and] encourages Member States to adopt and implement AU guidelines on natural resource governance, while reinforcing their national laws,” reads the communique.

The Council also warned of the externalization of conflicts in Africa.

“The Council takes note with concern of the proliferation of peace initiatives and externalization of African conflicts that undermine AU efforts. To this end, it condemns external interferences in the AU peace processes and in this context, strongly calls for harmonization of peace initiatives under the leadership of the AU and in the same vein, strongly urges AU member states to refrain from taking any action that will seek to externalize African conflicts, thereby undermining the leadership of the African Union in its peace endeavors and inadvertently prolonging the conflicts in the continent,” reads the statement.

The communique echoed previous calls to revamp the Continental Early Warning System (CEWS), to effectively preempt and mitigate conflict, as well as the need for ensuring inter-agency collaboration and coordination between African governments.

“The Council takes note with deep concern that Africa continues to face multiple interlocking challenges in preventing and resolving conflicts across the continent, including but not limited to the lack of predictable and sustainable funding; external interference; and limited implementation of AU decisions, and difficulties in implementing and monitoring peace agreements,” reads the communique.