The Authority for Civil Society Organizations (ACSO) has announced a strategic shift toward Corporate Social Responsibility (CSR) and domestic resource mobilization as primary funding sources for Ethiopia’s civil society sector.

The move comes at a pivotal time, as Civil Society Organizations (CSOs) seek to transition from heavy reliance on foreign aid toward a more sustainable, self-reliant model grounded in domestic support — particularly from Ethiopia’s expanding private sector and local communities.

For decades, CSOs in Ethiopia have depended largely on international donors. However, evolving global dynamics and domestic economic changes have exposed the vulnerability of that model.

According to Fassikaw Molla, Deputy Director General of ACSO, foreign assistance remains important but can no longer serve as the sole pillar of the sector’s survival.

“We do not believe the civil society sector can shoulder its significant national responsibilities through foreign donations alone,” Fassikaw told Capital. “The global context is changing. True sustainability comes from looking inward — leveraging local capacity, mobilizing domestic resources, and engaging our business community strategically.”

To that end, the Authority is collaborating with the Ethiopian Policy Studies Institute on a comprehensive study to assess the country’s CSR potential. The research will examine how major corporations in sectors such as telecommunications, banking, mining, and manufacturing can systematically allocate a portion of their profits to social development initiatives through CSOs.

Currently, many Ethiopian companies engage in charitable activities, but these efforts are often fragmented and uncoordinated. ACSO aims to establish a structured legal and policy framework that formalizes relationships between businesses and civil society organizations. Under the proposed approach, companies investing in community projects through CSOs could benefit from tax incentives or public recognition.

Terefe Degeti, Executive Director of the Council of Ethiopian Civil Society Organizations, emphasized that Ethiopia’s growing private sector has the capacity to assume greater social responsibility.

“We have profitable banks, expanding factories, and mining companies extracting high-value resources,” he said. “As these entities operate within communities, they must also demonstrate commitment to those communities.”

He noted that even a small fraction — as little as 0.01 percent of profits from large companies — could generate substantial funding for organizations supporting the elderly, children, and other vulnerable groups.

A central pillar of the Authority’s new financial strategy is “localization.” ACSO is advocating for decision-making, leadership, and fund management to be decentralized to the community level. In line with this vision, the government is reviewing amendments to the existing Civil Society Organizations Proclamation to remove regulatory barriers that limit CSOs’ ability to generate their own income.

Under the proposed reforms, CSOs would be encouraged to operate as social enterprises — generating revenue through the sale of goods and services to fund their missions while maintaining their social objectives.

The Authority stressed that this shift toward self-reliance does not signal a rejection of international partnerships. Rather, financial independence would enable CSOs to engage foreign donors as strategic partners instead of dependent recipients.

“We must practice what we preach,” Terefe said. “To earn the trust of Ethiopian investors and local philanthropists, we must demonstrate full transparency and accountability. We are strengthening our internal codes of conduct and oversight systems to ensure that every birr raised domestically makes a tangible impact.”

The new initiatives were announced during a press conference ahead of the 5th National Civil Society Organizations Week, scheduled to take place from March 5–7, 2026.

Held under the theme “Self-Sufficiency for Sustainable Peace and Inclusive Development,” the event will serve as a platform to advance the localization and CSR agenda. It will feature panel discussions on the role of CSOs in the upcoming national elections, as well as exhibitions highlighting successful domestic fundraising models.

More than 100 organizations are expected to participate. In a departure from previous years, the event will also welcome representatives from various regional networks and the National Federation of Public Benefit Organizations of Kenya, who will share experiences with their Ethiopian counterparts.

As Ethiopia’s civil society sector redefines its financial foundation, the coming years may determine whether domestic resource mobilization can indeed become a durable pillar of sustainable development.

Ethiopian Shipping and Logistics (ESL) has re-launched its tender to acquire six vessels, introducing notable changes to both its procurement model and financing structure as it accelerates fleet expansion plans.

The state-owned logistics operator revised its acquisition strategy after encountering delays in securing medium-sized vessels, including container ships. Under the new approach, ESL will procure second-hand vessels through international shipbrokers, while new-build vessels will be sourced through a separate competitive tender with shipyards.

ESL Chief Executive Officer Abdulber Shemsu told Capital that the company’s board approved the revised strategy to expedite the process.

“We have floated a bid to secure brokerage services,” Abdulber said. “The board recognizes that second-hand vessel procurement is best handled through professional shipbrokers, so we have invited qualified brokers to identify suitable ships. For brand-new vessels, we will proceed through a distinct tender process directly with shipbuilders.”

Alongside the procurement adjustment, ESL is restructuring its financing plan. The company is in discussions with the state-owned Commercial Bank of Ethiopia (CBE) to finance half of the total acquisition cost.

“We are under discussion with CBE to secure 50 percent of the financing,” Abdulber confirmed, adding that earlier talks with two private banks have been deprioritized. The remaining portion is expected to be covered through internal resources and credit arrangements.

Previously, ESL had planned to finance 30 percent of the cost of five vessels through bank loans, with the balance funded internally. The revised plan signals a broader recalibration of the company’s financial strategy.

ESL currently operates ten international vessels, including the Ultramax carrier Abay II. Under its five-year strategic plan, the company aims to expand its fleet to 16 vessels. The new acquisition package includes two new heavy-lift Ultramax multipurpose (MPP) vessels, one medium-sized second-hand container vessel, and three second-hand Ultramax bulk carriers.

In its Expression of Interest for brokerage services, ESL specified that the container vessel should have a capacity of 3,000 to 5,000 TEU and be no more than ten years old.

The company also adjusted its earlier plan to acquire two container ships, opting instead to increase the number of second-hand Ultramax MPP vessels to three. The bulk carriers sought must have a deadweight tonnage of 60,000 to 65,000 and be no older than eight years.

For the construction of the two new heavy-lift MPP Ultramax vessels — each with a capacity of 60,000 to 65,000 metric tons — ESL has introduced a two-stage bidding process.

Shipbuilders will first submit detailed technical proposals and specifications. ESL will then shortlist candidates and proceed with final selection. Construction of the new vessels is expected to take at least two years following contract award.

Delivery of the four second-hand vessels, however, is anticipated in the near term once brokers identify ships meeting ESL’s criteria.

Payment structures will also differ: new-build vessels will be financed through milestone-based installment payments, while second-hand acquisitions will be settled upon completion of each transaction.

The revised procurement and financing framework reflects ESL’s effort to modernize its fleet more efficiently while navigating capital constraints and market conditions. If executed as planned, the strategy will significantly enhance the national carrier’s capacity and competitiveness in international shipping.

The African Development Bank Group and the Government of Djibouti have signed four financing agreements totaling $80 million to fast-track the country’s strategic priorities in transport infrastructure, urban climate adaptation and food systems resilience.

The agreements, signed on February 5, combine concessional resources from the African Development Fund—the Bank Group’s concessional financing arm—and the Green Climate Fund.

Signatories included Djibouti’s Minister of Economy and Finance in charge of Industry and Bank Group Governor, Ilyas Moussa Dawaleh, and the Bank’s Director General for East Africa, Alex Mubiru. The ceremony was attended by the Bank Group’s Vice President for Regional Development, Integration and Business Delivery, Nnenna Nwabufo.

Under the first agreement, a $22 million grant from the African Development Fund will finance the rehabilitation of seven kilometers of urban roads in Djibouti City as part of Phase I of the Integrated Urban Infrastructure and Climate Adaptation Project. The project aims to strengthen municipal resilience to climate shocks while improving mobility and access to essential services.

A second $30 million African Development Fund grant will support the upgrading of a key transport corridor linking Djibouti with Ethiopia and South Sudan under the Djibouti–Ethiopia–South Sudan Regional Transport Corridor Project. The initiative is expected to reduce logistics costs, shorten transit times and deepen regional trade integration across the Horn of Africa.

Two parallel agreements—each comprising a $14 million grant and loan from the Green Climate Fund—were signed under the Building Resilience for Food and Livelihoods in the Horn of Africa programme. The initiative promotes climate-smart agriculture, reinforces pastoral and agro-pastoral livelihoods, and expands economic opportunities for women and youth. The programme forms part of a broader regional strategy to shield vulnerable communities from recurring droughts and mounting ecological pressures.

“These agreements reflect our vision for a modern and resilient Djibouti,” Minister Dawaleh said. “By investing in our roads and agriculture, we are not just building infrastructure—we are securing the future of our most vulnerable communities.”

Mubiru added: “The agreements we sign today reaffirm our commitment to supporting the government’s development priorities, including Vision Djibouti 2035 and the emerging National Development Plan 2025–2030.”

The newly signed financing packages mark a significant expansion of the Bank’s engagement in Djibouti. According to official figures, the institution’s active portfolio in the country has more than doubled—from about $100 million at the launch of the 2023–2027 Country Strategy to $221 million within two years.

In a related development, the International Islamic Trade Finance Corporation and the Republic of Djibouti activated a $35 million sovereign financing facility, with Red Sea Bunkering designated as the executing agency.

The funding will support the procurement of refined petroleum products, strengthen bunkering operations and diversify revenue streams for Djibouti’s strategic maritime hub.

The facility operates under a broader $600 million, three-year framework agreement signed in May 2023. By prioritizing procurement from Organisation of Islamic Cooperation member states, the initiative seeks to boost intra-OIC trade, reinforce regional supply chains and advance Sustainable Development Goals 8, 9 and 17.

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Ilyas Moussa Dawaleh, Djibouti’s Minister of Economy and Finance in charge of Industry and Bank Group Governor, and Alex Mubiru, the Bank’s Director General for East Africa.

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“These agreements reflect our vision for a modern and resilient Djibouti,” Minister Dawaleh said. “By investing in our roads and agriculture, we are not just building infrastructure—we are securing the future of our most vulnerable communities.”

Despite their growing contribution to national economies and social transformation across Africa, artists and creative professionals continue to grapple with precarious living conditions and limited economic security.

Teshome Wondimu, Founder and Executive Director of Selam and Muzikawi, said the expanding role of the creative sector in national development has not translated into improved livelihoods for practitioners.

The 5th Pan-African Network for Artists’ Freedom (PANAF) Summit, held from February 6–8, 2026, in Addis Ababa, brought together delegates from African and European countries, government officials, policymakers and industry experts. The summit, which made its Ethiopian debut after four consecutive years in Zanzibar, was organized by PANAF in collaboration with Selam Ethiopia and Artists at Risk Connection (ARC).

Although professional freedom and economic protection were central to the agenda, discussions were largely dominated by concerns over the economic insecurity facing artists across the continent.

“Professionals are often called upon to voice solutions for national issues, yet little attention is paid to their own economic struggles,” Teshome said, underscoring what he described as a critical gap in policy and support.

He noted that minimal government budget allocations to culture and the creative industries have hindered artists from transforming their talents into sustainable income. Limited access to specialized education and structured career pathways further compounds the challenges facing the sector.

Participants also highlighted emerging pressures in the digital era. While technological advancements have created new platforms and opportunities, they have also introduced complex challenges related to copyright protection and equitable revenue sharing.

“Digital possibilities are promising, but new issues around copyright and income distribution prevent artists from earning what they deserve,” Teshome said.

Despite the continent’s vast creative talent, the absence of robust industry infrastructure continues to obstruct efforts to convert cultural capital into tangible economic growth. As a result, many professionals remain unable to support themselves and their families solely through their craft.

Beyond economic concerns, the summit emphasized the intrinsic link between freedom of expression and sustainable development. Teshome stressed that artists must be allowed to create freely within the bounds of the law.

“If professionals cannot freely express their talents, the cultural sector cannot transform—benefiting neither the country nor the individual,” he said.

He further noted that in several African countries, artists face imprisonment, physical assault and even death for expressing themselves. Such repression, he said, not only undermines their psychological well-being but also cripples their economic activity.

Participants pointed to a significant disconnect between policy frameworks and implementation. While instruments such as the African Union’s Agenda 2063 and UNESCO conventions advocate for artists’ rights and cultural freedom, awareness and enforcement remain limited.

Established in 2022, the PANAF network seeks to bridge this gap by empowering African artists to advocate for their rights and present their concerns on global platforms.

“In the past, the challenges of African professionals were largely researched and voiced by actors outside the continent,” Teshome said. “Now, this African-led movement is creating space for artists to directly engage with government officials and policymakers.”

Held under the theme “Impacts, Pressures and Opportunities in the Digital and Economic Ecosystem,” the summit concluded with a call for stronger collaboration among governments, policymakers and creative professionals.

Key recommendations included increased public investment in the creative sector and strengthened measures to ensure the safety and economic empowerment of artists across Africa.