As developing nations increasingly reassess their reliance on traditional Western financial frameworks, a high-level summit in Addis Ababa placed both the BRICS bloc and Africa–Asia trade relations at the heart of discussions on the continent’s economic future.

Held on the margins of the February summit of the African Union, the gathering brought together policymakers, business leaders and development experts to examine alternatives to Western-led financial models and explore new trade partnerships. The event was co-organized by the UN Sustainable Development Solutions Network and the Pan-African Chamber of Commerce and Industry.

Participants argued that the “conditionalities” attached to Western financial institutions—often centered on sharp tax increases, fiscal austerity and rapid market liberalization—have become increasingly unsustainable. Critics at the summit said such measures have frequently failed to generate inclusive growth in vulnerable economies, instead contributing to rising debt burdens and constrained industrial expansion.

Kebour Ghenna, Executive Director of the Pan-African Chamber of Commerce and Industry, noted that Africa has long operated under a “let the market decide” philosophy promoted by Western institutions. While deregulation and fiscal tightening were intended to spur efficiency and growth, he argued that the results have often fallen short of expectations for fragile economies.

In contrast, the emerging BRICS model was presented as an alternative approach that prioritizes infrastructure development, technology transfer, national sovereignty and South–South cooperation. Many participants described it as more closely aligned with Africa’s long-term development aspirations, though they acknowledged that the bloc’s financial architecture remains a work in progress.

Jeffrey D. Sachs, professor at Columbia University and president of the UN Sustainable Development Solutions Network, struck an optimistic tone. “Africa’s era of rapid growth has arrived,” he said, outlining what he described as the continent’s next development phase.

According to Sachs, that future will rest on three pillars: the African Continental Free Trade Area, a large-scale shift to renewable energy, and expanded investment in science and education. If fully implemented, he argued, the African Union’s strategy—anchored in solar power, quality education and integrated continental trade—could position Africa as a key driver of global sustainable development.

The session examined how deeper commercial engagement with China and South Asian economies could accelerate industrialization, infrastructure development and technology transfer across Africa, particularly as global supply chains undergo significant reconfiguration.

Sachs encouraged African businesses to expand trade and investment ties with Asian partners, describing South–South cooperation as an increasingly important complement to Africa’s broader global trade strategy.

However, speakers stressed that diversification must be accompanied by strategic negotiation. Kebour underscored that trade agreements with Asian economies should be built on fairness, reciprocity and value addition. He cautioned against arrangements that risk reinforcing raw material dependency or locking African economies into unequal terms.

“Africa’s engagement with Asia must be anchored in industrial development and equitable partnership,” he said, emphasizing that expanded trade should strengthen local enterprises, boost manufacturing capacity and align with the objectives of the African Continental Free Trade Area.

Data presented during the broader summit underscored the scale of the challenge. Despite the promise of continental integration, intra-African trade currently stands at just 15 percent—far below levels recorded in Europe or Asia. Participants agreed that deepening regional value chains and strengthening industrial linkages remain urgent priorities.

As the meetings concluded, a common theme emerged: while new partnerships—whether through BRICS or expanded Africa–Asia trade—offer significant opportunities, sustainable transformation must ultimately be driven from within the continent. Without structural economic reform, private-sector revitalization and decisive action to address energy shortages through green technology, speakers warned, shifts in global financial alignments alone will not deliver lasting prosperity.

Ethiopian households are facing renewed pressure as the cost of essential animal products surged sharply between December 2025 and January 2026, offsetting modest relief seen in other food categories.

The January 2026 Joint Market Monitoring Initiative (JMMI) report shows that meat and dairy prices rose between 14 percent and 20 percent within a single month, placing additional strain on family budgets already stretched by inflation and market disruptions.

According to the report, the national median cost of the Minimum Expenditure Basket (MEB) for a six-person household declined by 1 percent, largely due to seasonal harvests that pushed down vegetable prices. Onion prices fell by 25 percent, while tomatoes dropped by 20 percent, offering short-term relief for consumers.

However, the drop in vegetable prices was outweighed by steep increases in protein-rich foods, which are essential for a balanced household diet.

Nationally, cow milk prices surged by 20 percent, while raw fish prices also climbed by 20 percent. Goat meat increased by 14 percent, and egg prices rose by 5 percent over the same period.

“Contrary to the overall decline in food prices, most meat and animal products showed price increases during the specified period,” the report stated.

The data suggests that while seasonal supply improvements have stabilized crop prices, animal-product supply chains remain under significant strain.

The impact of rising prices has not been uniform across the country. While Tigray and Amhara experienced slight declines in overall consumer basket costs due to harvest-related supply improvements, other regions recorded notable inflation.

Benishangul-Gumuz registered the highest monthly price increase at 11 percent, followed by Somali at 9 percent and Oromia at 6 percent. These increases are linked to weak market functionality, with 52 percent of markets assessed nationwide described as operating poorly.

Gambella recorded a market functionality rate of 0 percent, indicating severe disruption. Amhara (74 percent) and Afar (67 percent) also reported significant market challenges.

The surge in animal-product prices is closely tied to supply-side constraints. Nearly 30 percent of meat and fish vendors reported serious difficulties sourcing sufficient products to meet demand. The main causes cited were domestic transport constraints (33 percent), vendor capital shortages (28 percent), and reduced production levels (22 percent).

Access to markets is also becoming increasingly difficult for consumers. Vendors reported that vulnerable households are struggling to reach marketplaces due to movement restrictions and security concerns.

Despite the spike in animal-product prices, the report recorded a slight nationwide decline in non-food item (NFI) costs, general household expenditure, and overall food prices during the one-month period. Non-food item prices dropped by 3 percent, overall national expenditure fell by 1 percent, and food costs declined marginally by 0.4 percent.

This modest easing was most evident in Tigray, Amhara, South Ethiopia, Gambella, Addis Ababa, and Southwest Ethiopia, where harvest season dynamics improved the availability of vegetables and staple grains.

Market monitors caution, however, that the relief may be temporary. While harvest cycles support crop supply, animal-product supply chains remain vulnerable to transport bottlenecks, financing constraints, and broader market instability.

Looking ahead, 68 percent of food vendors expect prices to rise again next month, citing currency fluctuations and continued market uncertainty as key drivers.

Humanitarian organizations are calling for continuous market monitoring to track price volatility and adjust assistance programs to ensure vulnerable households maintain access to essential food items.

The Ministry of Industry has decided against imposing a total ban on the export of raw hides and skins, opting instead to sustain strict financial measures designed to discourage the practice while promoting domestic value addition.

Senior officials say the government will maintain a 150% export tax on raw hides and raise minimum export floor prices to make the trade commercially unattractive. The move is part of a broader strategy to boost foreign currency earnings and expand job creation through finished leather products rather than rely on limited returns from unprocessed exports.

Zerihun Abebe, Chief Executive for Export Products Competitiveness at the Ministry, told Capital that while the government is advancing market liberalisation reforms, a complete export ban would be counterproductive. He noted that ox hides, in particular, are in high demand for consumption in West African markets, a trade driven largely by food demand rather than industrial use.

“We have kept a 150% export tax on raw hides,” Zerihun said, describing the rate as intentionally high. In collaboration with the Ministry of Trade and Regional Integration, the Ministry is also working to increase the minimum export price per hide from $7 to $10.

“These measures make it economically difficult to export raw materials without adding value,” he said. “We haven’t shut it down completely—nor would that be practical—but we are making it unsustainable.”

At the same time, the Ministry is preparing amendments to the Raw Hides and Skins Marketing Proclamation, first enacted in 2013 and revised in 2018. Officials acknowledge that the current legal framework does not clearly define the marketing chain and has created structural barriers for businesses.

According to Zerihun, existing rules prevent manufacturers from sourcing hides directly from downstream suppliers, forcing them to rely heavily on intermediaries. This fragmentation has inflated costs, reduced quality control, and weakened the competitiveness of local tanneries. Consultations are now underway with the Ministry of Agriculture and industry associations to introduce a more flexible and transparent system.

Environmental compliance has also emerged as a significant hurdle. Officials argue that regulatory and ecological pressures, rather than lack of financing, have played a larger role in slowing the sector. To address this, the government is fast-tracking the development of “Modjo Leather City,” an integrated industrial hub that will feature a centralised waste treatment plant. The project is expected to help tanneries meet increasingly stringent international “Green Leather” standards demanded by global buyers.

For more than two decades, Ethiopia’s hides and skins industry has been a cornerstone of the country’s agriculture-led industrialisation strategy. Despite possessing one of Africa’s largest livestock populations, the sector continues to struggle with low off-take rates, poor animal husbandry practices, and persistent quality defects.

Zelalem Merawi, President of the Ethiopian Leather Industries Association (ELIA), highlighted what he described as a troubling contradiction: significant quantities of raw hides are wasted even as factories face material shortages.

“The leather industry was once the country’s second-largest source of foreign currency after coffee,” he said. Today, annual export earnings range between $30 million and $40 million. However, the sector plays a much larger role in import substitution, producing goods valued at up to $3 billion domestically, including footwear for the military and police.

Zelalem pointed to emerging success stories in value addition. Over the past five years, Ethiopia has earned around $180 million from gelatin exports made from leather scraps previously considered waste. “Even rejected hides are being transformed,” he said. “Gelatin for food and industrial use shows that value can be added at every stage.”

He made the remarks during a signing ceremony in which ELIA partnered with Messe Frankfurt (ASFAW) to host the All Africa Leather Fair, an initiative aimed at positioning Ethiopia as a continental hub for leather fashion by attracting international buyers and showcasing its shift toward finished products.

Despite ongoing reforms, industry stakeholders caution that major challenges remain. Access to credit is limited, raw material shortages persist—partly driven by continued exports—and quality control mechanisms once overseen by the Ministry of Agriculture have weakened.

They stress that while environmental standards and urban development reforms are important, fully serviced industrial parks must be prioritised to relocate factories, improve sustainability, and safeguard the hundreds of thousands of jobs supported by the leather value chain.