Washington Healthcare, a key player in Ethiopia’s private health services sector, has announced plans to launch a new commercial health insurance company alongside a hospital service aimed at addressing the significant shortage of commercial health insurance in the country.

Markos Feleke (MD), CEO of Washington Healthcare, revealed that the company is in the final stages of forming a partnership with several leading medical institutions to establish “Family Health Insurance” (FHI). This new entity is designed to offer accessible and consistent healthcare coverage to individuals and families while enhancing service delivery within the private health sector — an area currently underserved in Ethiopia.

“One of the biggest challenges in the health sector is the lack of commercial health insurance,” said Markos. “Although community-based and social insurance programs exist, the absence of business-driven options is glaring. Our new company will be the first collaborative effort to build a robust and extensive insurance network spanning multiple medical facilities.”

The initiative has already secured initial capital and is now awaiting legal and regulatory clearances to commence operations.

The launch of Family Health Insurance coincides with a rebranding of Washington Healthcare, which unveiled a new logo symbolizing its decade of success and an expanded mission. Having served over 2 million patients in the past 10 years, Washington Healthcare is now set to broaden its range of services.

In addition to the insurance company, the new hospital under Washington Healthcare will be the first private facility in Ethiopia to offer a variety of specialty hospital services, reinforcing the company’s commitment to becoming an advanced healthcare service center.

Washington Healthcare also plans to make its successful digital health portfolio and best practices available to medical facilities nationwide, aiming to improve quality, transparency, and operational efficiency across the sector.

Businesses throughout Addis Ababa are facing a severe crisis, with many on the verge of shutdown due to ongoing disputes with the city’s tax bureau compounded by a series of new tax policy reforms. The private sector argues these reforms are fundamentally flawed, leading to growing frustration and mistrust between business operators and tax authorities.

This predicament was brought into sharp focus during a recent high-level Public-Private Dialogue (PPD) forum, which gathered representatives from government bodies, tax officials, business chambers, and accounting professionals to discuss the theme of “Tax & Customs Reforms, Implementations & Challenges.” The forum revealed a significant and troubling gap between the government’s stated goals—centered on fairness and efficiency—and the difficult realities businesses face in their everyday operations.

At the heart of the problem, according to a representative of the Ethiopian Association of Accountants and Auditors, is not the tax policy itself but the political and institutional environment governing its implementation. The reforms are intended to bring about fairness in taxation, yet the core challenges arise from political divisions and weak institutional ties. The country’s leadership, described as “two opposing leaders,” and the lack of cohesive institutions seriously undermine the efficacy of tax reform efforts, rendering even frequent policy tweaks ineffective if these foundational issues remain unresolved.

Echoing this deep concern, Awoke Asfaw of the Association of Authorized Accountants raised alarm about the independence of tax auditors within the Ministry of Revenue. He revealed that virtually all auditors belong to political parties, a direct contradiction to the principle that tax auditors must operate free from political influence. This political affiliation compromises their impartiality, impacting the majority of taxpayers who are subjected to decisions clouded by political interests. Such a lack of auditor independence fundamentally undermines the fairness and equality essential to any credible tax system.

The implementation of new tax laws has already become a major obstacle for business operations. Aychiluhim Kebede, from the Chamber of Commerce and Sectoral Associations, illustrated this with the example of maintenance facilities that work in coordination with insurance companies. These businesses rely on contracts that stipulate fixed labor and material costs, yet have been pushed to the edge by tax demands. Aychiluhim highlighted the plight of numerous repair shop owners who have been forced to quit their work, left with no clear solutions despite assurances from tax authorities of coordination with the Ministry of Finance. This bureaucratic limbo leaves many businesses stranded and uncertain about their futures.

The forum also revealed fundamental flaws in the tax audit process itself. Business representatives pointed out the absence of a pre-audit system; businesses are obliged to submit their tax payments before any review takes place, after which the Ministry of Revenue can conduct audits at will without providing protections or safeguards for taxpayers. This unpredictable and often arbitrary approach fosters conflict and creates fertile ground for corruption, severely damaging the trust needed for voluntary compliance.

Numerous voices from the business community expressed concern about the disproportionate tax burden imposed on manufacturers and traders. One representative bluntly described it as unfair that these groups should bear heavier taxes simply to fund broad national projects. The Furniture Manufacturers Association specifically emphasized the strain caused by the introduction of a quarterly tax payment system, which imposes significant financial strain on capital-intensive sectors. They explained how a business might report a profitable year due merely to asset sales rather than operational gains, resulting in burdensome tax bills in subsequent quarters and threatening future investment prospects.

Opposition also came from the construction and oil refining sectors regarding newly introduced mandatory corporate social responsibility (CSR) payments framed as additional taxation, which these industries view as an unwelcome financial imposition lacking transparency.

Beyond policy specifics, the private sector decried the complexity and unpredictability of tax and customs procedures, which slow down business activities, especially for small and medium-sized enterprises. This complexity, combined with rising prices and security checkpoints that hinder fair competition, is making the entire business environment increasingly difficult to navigate. Furthermore, frequent failures and outages in electronic tax and customs systems further frustrate taxpayers and hamper the government’s modernization efforts, fueling resentment rather than building confidence.

Government officials attending the forum acknowledged these challenges candidly. Mulay Woldu, Director of Taxation at the Ministry of Finance, admitted that Ethiopia’s tax policies had seen little substantial change in over three decades and that the tax-to-GDP ratio had steadily declined, reaching a low 6.3% in the 2024/25 fiscal year. He outlined recent reforms, including alterations to excise tax, value-added tax (VAT), income tax, and the introduction of a minimum alternative tax designed to align the tax system with Ethiopia’s current economic conditions. However, he also recognized that awareness and understanding of tax reforms were poor across both taxpayers and tax officials, resulting in both parties often ignoring the broader goals of the reforms.

Yoseph Shiferaw, Director of Tax Compliance at the Ministry of Revenues, reaffirmed the government’s commitment to modernizing the tax system through technology upgrades and enhanced manpower. He stressed the importance of addressing the knowledge gap among taxpayers to ensure compliance and combat tax evasion more effectively.

Genet Abraham, Director of Customs Compliance at the Ethiopian Customs Commission, provided details of initiatives such as recognizing original invoices to expedite customs clearance and expanding electronic “single window” systems designed to improve operational efficiencies and transparency.

Private sector participants called for the publication of comprehensive tax guidance manuals as well as meaningful engagement with businesses before any reforms are introduced. They urged improvements in audit practices, insisting these be overseen by an independent body to ensure impartiality. Most notably, participants advocated lowering the current tax appeal guarantee money requirement from 50% to 20%, alongside permitting the use of bank guarantees, as critical protection measures for taxpayers’ rights. The establishment of an independent judicial mechanism to adjudicate tax disputes fairly and transparently was another key recommendation advanced during the dialogue.

Enhancing digital platforms, bolstering the Single Window Customs System, and delivering clear, timely information to taxpayers also featured prominently as necessary improvements to restore confidence in the tax ecosystem.

While government officials reiterated that the reforms were guided by sincere intentions to promote fairness within Ethiopia’s tax system, discussions highlighted what many described as the largest gap between policy concept and everyday policy implementation.

Deputy Commissioner Muluwork Derese of the Customs Commission detailed ongoing modernization measures aimed at providing simple, efficient, and competitive customs services. These include digitizing file entry, execution processes, and document management systems, expanding online services, and extending the electronic single window approach to boost operational transparency and speed.

However, she cautioned that tax reform cannot succeed without concurrent efforts to resolve the political and institutional issues plaguing the system, especially those stemming from the lack of auditor independence, regulatory complexity, and insufficient consultation with stakeholders.

Her final assessment was sober: until these fundamental challenges are adequately addressed, tax laws and decrees will continue to serve as mechanisms for conflict and corruption, rather than catalysts for sustainable economic growth.

The forum attracted participation from a wide array of government ministries, tax authorities, the Ethiopian Customs Commission, chambers of commerce, and various business associations. The key objective was to identify the root causes of problems within the tax and customs systems, provide a platform for the business community to voice concerns, and develop actionable recommendations aimed at fostering a fair, transparent, and efficient trade and investment environment.

Meseret Molla, Secretary General of the Addis Chamber, underscored the critical role that public-private dialogue forums play in building trust and cooperation between government and the business sector. He emphasized the importance of these platforms in addressing pressing issues like agricultural customs, which significantly impact government tax collection accuracy. Meseret affirmed Addis Chamber’s commitment to continuously organize such discussions until concrete policy implementations materialize that genuinely benefit the business community.

Natnael Melaku, General Manager of the American Chamber of Commerce in Ethiopia, commended the government for its broad economic reform agenda, noting its importance for private sector growth and the overall economy. Nonetheless, he acknowledged that AmCham members continue to face significant challenges related to tax administration inefficiencies and cumbersome customs procedures, including problems with transparency and operational effectiveness. Natnael expressed optimism that the government would swiftly resolve these issues, reflecting the private sector’s urgent desire for quick and efficient reform.

He emphasized that tax reform should extend beyond merely raising revenues; it must serve as a powerful tool to shape the business environment and accelerate private sector development. Referencing international evidence, he noted that successful tax reforms simplify complex systems, promote innovation, enable governments to mobilize resources effectively, and create conditions conducive for private sector growth.

As Ethiopia celebrates its rich cultural heritage through a vibrant calendar of holidays—most notably the Ethiopian New Year—the festivitie have become an undeniable force in energizing the country’s economy. Yet, beneath the surface of this seasonal economic boom lies a paradox. While holidays spur increased consumer spending and invigorate local markets, the absence of reliable data and comprehensive economic analysis has left policymakers navigating in the dark, making it difficult to fully understand or manage their true economic impact.

Ethiopia’s unique 13-month calendar shapes the nation’s annual cycle of life, culture, and commerce. The holiday season, particularly Enkutatash—the Ethiopian New Year—arrives as a beacon of hope and renewal following long periods of seasonal change. The new season breathes life into towns and cities across the country, marked by the blooming of the iconic poppy flower, traditional feasts, and long-awaited celebrations.

In the weeks leading up to Enkutatash, consumer activity surges across multiple sectors. Families invest in livestock such as sheep, goats, chickens, and oxen for ceremonial feasts. They prepare traditional dishes with special bread like “Difo” and brew local drinks such as “Tella” and “Tej.” Ethiopia’s famous coffee ceremony, already an integral cultural event, takes on extra significance during this festive period, further stimulating hospitality and beverage markets.

This seasonal bustle translates into a powerful economic upswing. “This year’s demand for sheep and goats was very high,” said Gemeda, an animal trader based in Addis Ababa. “Prices increased, as they always do during this season, but customers continue to buy in large numbers due to the heightened demand.” He credited cooperation between the city administration’s task force and traders for preventing shortages and keeping prices somewhat stable. “This collaboration shows what can be accomplished when government and private sector work hand in hand.”

Despite such coordination, price fluctuations remain a challenge. Gobezie Teshome, a resident of Addis Ababa, noted rising costs in several categories: “While the festival markets are active, prices are noticeably higher than last year. Items like chicken, cooking oil, and festive goods are more expensive.” Gobezie mentioned paying 1,800 birr for a large chicken but worries that prices may climb further due to macroeconomic reforms and foreign exchange volatility.

The cost of staple food items also worries many families. A mother of seven lamented paying over 130 birr per kilo for onions during the holidays. “The holiday market looks good from a business perspective, but the price of onions is very high,” she expressed. However, she also confirmed that other products like chicken remain affordable, pointing to a degree of inconsistency in price movements.

Within marketplaces, the sale of spices and other goods similarly experiences frequent price jumps. Traders acknowledge these fluctuations as customary during peak festive demand but emphasize that newly opened shopping centers and commercial hubs across the city positively influence price dynamics by increasing supply avenues.

Federal and regional officials have repeatedly assured the public that they are taking steps to stabilize prices ahead of the holiday rush. The opening of special commercial bazaars and expanded Sunday markets across cities plays a vital role in alleviating shortages and ensuring wider access to goods.

This proactive stance reflects growing recognition among policymakers of the holidays’ dual role as cultural celebrations and vital economic events. Efficiently managing their economic impact is crucial to maintaining social harmony and economic stability during these spirited periods.

Yet, despite the evident economic activity surrounding Ethiopia’s holidays, a glaring problem persists: the country lacks consistent and reliable data on this seasonal spending and market behavior.

Economist Endrias Tesfalem explains, “We clearly observe heightened financial outflows into livestock, food, and clothing markets during the holidays. But without systematic data collection and rigorous analysis, we’ve never truly quantified how much these festivities contribute to Ethiopia’s GDP.”

Endrias describes holiday spending as a classic demand-side economic stimulus: as individuals draw from savings or disposable income to purchase goods and services, overall economic demand rises, stimulating growth. However, he stresses that without detailed data, accurately estimating the multiplier effect—how initial spending ripples through the wider economy—remains impossible.

“To move beyond anecdotal observations and truly understand holiday spending’s economic flow and sectoral benefits, we need comprehensive, digitized data collection and analysis,” he said.

Another economist highlights the somewhat paradoxical consequences of holiday expenditure. “While holidays boost economic activity and demand in the short term, the sudden injection of money into markets can exacerbate inflationary pressures and reduce household savings. Without careful management, this can destabilize macroeconomic indicators.”

This insight underlines the complexity of holiday economics. Culturally, holidays are deeply embedded institutions, with spending decisions strongly influenced by tradition and social expectations rather than purely economic rationality.

People are frequently willing to pay premium prices for traditional goods and festivities because the cultural value often outweighs cost concerns. This presents a unique challenge—and opportunity—for economists and policymakers attempting to balance cultural priorities with financial stability.

Leulseged Gizaw, a financial analyst, adds another dimension from the banking sector’s perspective: “We observe significant bank withdrawals during the holiday season, which on paper may suggest a temporary dip in national savings. But this money doesn’t vanish; it circulates through businesses and merchants, who then redeposit funds into the banking system.”

Without a reliable mechanism to track this complex money flow, assessing the net impact on financial institutions and crafting monetary policies that accommodate holiday-induced fluctuations becomes difficult. “A robust, data-driven system for monitoring seasonal transaction flows could offer clear insights into how holiday spending benefits the broader economy,” Gizaw explains.

Experts agree that Ethiopia’s festive seasons present enormous economic potential. From cattle traders to street vendors, countless livelihoods depend on holiday commerce. “Investing in improved statistical services and technological infrastructure to capture real-time economic activity during these peak periods would be a game changer,” said Gizaw.

Beyond commerce, holidays fuel domestic tourism, reinforce national unity, and preserve intangible cultural heritage—factors that indirectly support economic resilience and social cohesion.

Though Ethiopian holidays shine as pillars of cultural pride and drivers of economic vitality, maximizing their potential requires moving beyond broad generalizations. Experts unanimously call for a more data-driven approach that combines tradition with modern economic analysis.

By collecting and analyzing reliable statistics on holiday spending, livestock trade, market prices, and consumer behavior, policymakers can better anticipate inflation trends, tailor market interventions, and structure financial policies to sustain long-term growth.

Such insights would empower Ethiopia to balance the joyful spirit of its holidays with sound economic management—turning celebrations into a foundation for sustained prosperity rather than seasonal volatility.

Ethiopian holidays embody a paradox: they are engines of prosperity that simultaneously pose challenges to economic stability. This dual nature calls for informed strategies that respect the cultural essence of festivities while harnessing their economic power efficiently.

Addressing this paradox starts with closing the data gap—developing systems that capture the full economic footprint of holidays. With this knowledge, Ethiopia can craft policies that both preserve festive traditions and nurture a stable, thriving economy, ensuring that every holiday is not only a time of joy but also a step toward sustainable development.

The Ethiopian Insurance Corporation (EIC), the nation’s leading insurance provider, has reported robust premium growth for the 2024/25 fiscal year, marking a milestone in the company’s performance amidst a challenging claims environment that poses significant risks to profitability.

During its 38th Annual Management Conference, held under the theme “Adapting. Advancing. Achieving,” EIC’s senior leaders from across Ethiopia convened to review a year of strong financial results alongside pressing operational challenges. The conference set the stage for strategic initiatives designed to maintain EIC’s leadership while navigating an increasingly complex insurance landscape shaped by Ethiopia’s rapid economic transformation.

According to EIC’s Chief Executive Officer, Abel Tadesse, Ethiopia’s insurance industry experienced vigorous growth of 45% in the fiscal year, with total premium revenues reaching an unprecedented 41.13 billion birr. The general insurance sector dominated the market, accounting for 38.49 billion birr or 93.6% of total premiums, while the life insurance sector contributed 2.63 billion birr, representing the remaining 6.4%.

EIC’s own premium revenue rose significantly to over 13.3 billion birr, with general insurance generating approximately 12.9 billion birr and life insurance bringing in around 428 million birr. While this achievement was 9% below the company’s annual target, it still reflected an impressive 56% increase over the prior fiscal year. This strong performance helped the corporation increase its market share from 30.2% to 32.5%, retaining its position as the industry leader. Over the year, EIC issued a total of 170,479 insurance policies — 164,346 for general insurance and 6,133 for life insurance. However, a policy retention rate of 58% was identified as an area requiring improvement going forward.

Despite these gains, Abel sounded a cautionary note regarding the rapid increase in compensation payments. Total compensation payouts reached a record 6.56 billion birr, soaring 137.9% above the previous year’s payouts. This dramatic rise primarily stems from external economic factors, particularly the weakening purchasing power of the birr amid persistent inflationary pressures. Inflation has driven up costs for key items covered under claims, including spare parts, garage services, and medical expenses, escalating compensation obligations significantly.

Although the final quarter of the year saw a concerted effort to reduce outstanding claims reserves, bringing them down to 3.8 billion birr, the surging compensation payments remain a threat to the company’s long-term profitability.

EIC’s financial results nevertheless remain solid, with a net loss ratio at 51.4%, underwriting profits exceeding 3 billion birr, and investment income contributing over 70% to total income, amounting to 1.27 billion birr. Pre-tax profit for the fiscal year hit 1.98 billion birr, slightly surpassing internal targets by 1.7%, and representing an 18.8% increase relative to the prior year.

Within this context of growth and challenge, the CEO also highlighted internal hurdles that have hindered EIC’s modernization efforts. Project delays and weaknesses in the ongoing digital transformation initiative have slowed the organization’s ability to update its systems and improve operational efficiency. Additionally, a reduction in donor-funded programs has dampened revenue growth, particularly within the life insurance segment.

Addressing these multifaceted challenges, the Ethiopian Insurance Corporation is crafting a range of strategic initiatives expected to shape its future trajectory. The company is developing a new corporate strategy complemented by an enhanced human resources approach and an employee performance evaluation system. These organizational reforms, awaiting board approval, are intended to provide a strong foundation for continued success and competitiveness.

Looking back on five decades of service, EIC positioned itself as a reliable partner for Ethiopian consumers and businesses alike and anticipates celebrating its Golden Jubilee with renewed enthusiasm. The leadership expressed full confidence that the corporation will continue consolidating its market advantage by building on its proven strengths and successfully adapting to emerging challenges.