News

23 March 2020 -  Ethiopia’s economy experienced an increase in prices after the spread of COVID-19 (novel coronavirus). The costs of healthcare and consumer goods have gone up. As countries shut their borders to prevent the further spread of the virus, Prime Minister of Ethiopia, Abiy Ahmed, said that the country’s dependence on imported goods will only lead to costs rising further.

Annual inflation in Ethiopia has been at a very high rate of 21.8%. Service providers are expected to be worst hit as markets and malls have begun to shut down for the foreseeable future after the government advised against large gatherings. The hotel and tourism industry is also expected to suffer due to a reduction in travelling. The government announced that they had allocated ETB 300 million (USD 9.39 million) to the fight against the virus.  Learn more about living and working during this pandemic

4 March 2020 - Information Security Operations Center, also known as Internet Society (ISOC), is a not-for-profit that has launched its Ethiopian chapter to help the Internet ecosystem develop in the country. Currently, internet usage in Ethiopia is only 18.6%. As one of Ethiopia’s goals is to boost youth employment, establishing internet connectivity is vital.  Ethiopia is one of the fastest growing economies and a robust access to the internet will aid in the smooth functioning of various business enterprises. Locals are also missing out on cost-effective internet-based services. Therefore, ISOC stakeholders will be holding a conference to discuss the challenges faced in expansion and local penetration of the internet. Cost of Living Survey

20 February 2020 - A recent anti-trafficking law passed for job agencies in Ethiopia will serve to reduce unlawful and dangerous migration of job seekers. According to the new law, brokers exploiting workers can now face life imprisonment. The Ministry of Labour and Social Affairs has given licenses to at least 800 job agencies in an effort to legalise the process; however, many job agencies are still operating illegally. It is estimated that tens of thousands of workers are routed to the Gulf nations illegally every year. They are incentivised with better pay but end up facing exploitation in the informal sector. The job brokers who fail to protect workers against harm will also have to pay large fines and face prison sentences. The legislation also includes a scheme that will work for the rehabilitation of existing victims of malpractice. Know more about Forced Labour

14 February 2020 - The United Nations Food and Agriculture Organisation (FAO) and GOAL, an Irish aid-agency, have issued warnings for a potential famine across Ethiopia if the locust infestation is not brought under control. Large locust swarms are destroying crops and pastures at an alarming rate. The agencies are ushering in government and public support for the farmers and their families. FAO has pointed out that the locust population is already in the billions, and is feared to multiply and cross into other regions in Africa. The UN has called on the international community to help fund the spraying of insecticides in the affected areas to control the outbreak and protect vital sources of food and income. The measure is estimated to cost nearly €80m (3.284bn Birr). Take the Cost of Living Survey!

4 February 2020 - Ethiopia’s garment manufacturing sector is experiencing high turnover rates as employees feel underpaid and mistreated. Multiple industrial parks in Southern Ethiopia, especially Hawassa Industrial Park (HIP), are witnessing labour unrest and unionization in large numbers. The government is taking measures to address labour concerns while also keeping the industry’s interests in mind. According to a report prepared by New York University (NYU), HIP experienced a near-hundred per cent staff turnover in 2017-18. The monthly base-pay at Hawassa Park is barely enough for workers to cover their rent, falling between 1060 Birr -1123 Birr ($33-$35). The government had hoped that foreign investment would create much needed jobs for the country’s youth in the manufacturing sector. However, poor working conditions and rising costs of living are forcing workers to look for alternatives.  Labour Law in Garment Factories

27 January 2020 -  In a move that will enable Ethiopia to produce a crop yield of 120 million quintals, the Ministry of Agriculture has announced plans to irrigate 1.2 million hectares of land by September 2020. The ministry has also set up an irrigation pump and an engine testing centre to aid the efforts. This irrigation development project includes 2.1 million farmers,  of which 300,000 are women. Germame Garuma, Agriculture Extension Director-General at the Agriculture Ministry said that the government is trying to invest in irrigation schemes and improve technologies in the sector. Till this point, 700,000 quintals of fertilizer, nearly 471,000 Quinta seeds and 93,000 L of chemicals have been distributed among the farmers. Additionally, efforts are underway to establish market links between farmers and cooperative unions. Take the Cost of Living Survey!

16 January 2020  - Ethiopian Airlines has announced a project to build Africa’s largest airport near Ethiopia’s capital, Addis Ababa. Set to cost around $5 billion (16,00,00,000 Birr), the project is expected to start construction in the next six months. Tewolde Gebremariam, CEO of Ethiopia Airlines said the project will bring in jobs for the region, right from the construction stage. The existing hub, Bole Airport is expected to be in full capacity by the next few years and will need more infrastructure to accommodate passengers. The new airport will enable Addis Ababa to host 100 million long-haul passengers into Africa annually, a five-fold increase compared to Bole Airport. The completed project will create job opportunities for nearby farming communities to supply agriculture produce and set up tourism facilities. Job Search

11 January 2020 - United Nations’ International Fund for Agricultural Development (IFAD) has agreed to sanction USD 40 million (1,28,03,36,000 Birr)  in support of the Rural Financial Intermediation Program set to be implemented by the Ethiopian government. The program is expected to create wider access to financing for the farmers and help diversify their income sources. The total cost of the program is estimated to be $305.7 million. Since the 1980s, IFAD has invested up to $795.5 million in such rural development programs which have benefited 12 million Ethiopian households. The latest program will help improve  irrigation technologies to reduce dependence on erratic rainfall patterns. Across the 50 million enlisted for the program, women and youths make up 50% of the beneficiaries. Take the cost of living survey

1 January 2020 - The Oromia Farmers Cooperative Union (OFCU) has invested a sum of 50 million Birr in an enterprise to build its first coffee roasting and packaging plant at Gelan. The production is lined up to start by March with the employment of 20 locals. The union was earlier exporting just green coffee beans but the plant will help expand the union’s export of high-value added products. The plant will hold a capacity to roast, grind and package 120kg coffee per hour. More employees will be hired as production expands. Currently, the union has 405 cooperatives, 400,000 farmers and three coffee processing sites to supplement the plant. Find out more about Trade Unions in Ethiopia

7 December 2019 - According to the Central Statistical Agency (CSA), Ethiopia’s inflation rate rose by two percentage points to stand at 20.8%. This will mark the fifth consecutive month when inflation, and along with it, the cost of living has continued to rise. The figure is the highest rate witnessed in the last five years, close to 2014’s peak at 22.2%. The inflation rate for non-food commodities grew to 16.3% after registering a three percentage point growth, while the food inflation rose by 1.3 points to hit a level of 24.5%. Experts cite excess money in the economy and insufficient food supply as major causes behind inflation. A report attributes the spurt to rise in prices of major cereals such as barley, injera, and teff.  Cost of Living Survey

6 December 2019 - Ethiopia is proving to be an economically viable option for foreign investors with its garment sector. However, its garment workers are poorly paid. A study conducted by MyWage and the Confederation of Ethiopian Trade Unions revealed that workers need to earn at least 4,130 Ethiopian Birr ($132) to earn a living wage, against their current income of 1,150 Birr ($37). According to IndustriAll Global Union, a sewing operator might earn 1,150 Ethiopian Birr ($37) but a room in Hawassa costs around $2,000 Birr ($64) to rent. In addition to poor wages, workers also report delays in receiving payments and lack of reasonable lunch breaks. IndustriAll argues that collective bargaining power will help workers achieve better wages. Read about Trade Unions!