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Tsedey Bank officially appoints Yohannes Ayalew as President

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Tsedey Bank, one of Ethiopia’s youngest commercial banks, has officially appointed Yohannes Ayalew (PhD) as its new President, effective February 9, 2026, pending approval from the National Bank of Ethiopia (NBE).

The appointment comes at a critical juncture as the bank grapples with a staggering 2.13 billion Birr net loss recorded in the 2024/25 fiscal year. Yohannes, a seasoned economist with extensive experience in the Ethiopian financial sector, succeeds the bank’s founding CEO, Mekonnen Yelewumwossen, who resigned in January 2026.

Following Mekonnen’s departure, the bank has been under the interim leadership of Yeshimebet Teffera. However, the Board of Directors—chaired by Derese Hailu, Vice President of the Amhara Region—opted to appoint a permanent leader with the expertise to steer the institution through its current financial turbulence.

Industry observers describe Yohannes’s appointment as a strategic “rescue mission,” citing his proven record of revitalizing struggling financial institutions and guiding them toward stability and growth.

Dr. Yohannes most recently served as CEO of Amhara Bank, where he earned recognition for reversing the institution’s early losses and leading it to achieve a net profit of approximately 655 million Birr. Following his departure, Amhara Bank is reportedly seeking a successor capable of sustaining the growth trajectory he established.

Before joining the private banking sector, Yohannes left a lasting impact at the Development Bank of Ethiopia (DBE). When he assumed leadership, the DBE was weighed down by non-performing loans and faced a severe liquidity crisis. Through comprehensive structural reforms and revised lending strategies, he successfully transformed the DBE into one of Ethiopia’s most profitable and reliable state-owned financial institutions.

Yohannes’s foundation in monetary policy and regulation stems from his nine-year tenure at the National Bank of Ethiopia, where he served as Vice Governor and Chief Economist. His deep understanding of the country’s financial regulatory framework and macroeconomic environment is expected to be a key advantage in aligning Tsedey Bank with the NBE’s stringent directives.

Analysts attribute Tsedey Bank’s loss largely to the bank’s transition from a micro-lending model to full-scale commercial banking, compounded by regional instability and tight monetary policy.

The Horizon Fiber Initiative: Regional Backbone for a Digital Horn of Africa

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#Advertorial

On February 4, 2026, Ethio Telecom, Djibouti Telecom, and Sudatel Group signed the Horizon Fiber tripartite agreement in Djibouti, marking yet another infrastructure milestone in a region familiar with ribbon-cutting ceremonies. However, beneath this ceremonial announcement lies a significant shift in how the Horn of Africa perceives connectivity, sovereignty, and regional integration. Horizon Fiber is not merely a cable; it represents a pivotal test of whether African operators can collaboratively design strategic digital corridors on their own terms, linking them to continental initiatives like the AfCFTA.

This feature explores Horizon Fiber as a landmark in regional infrastructure, focusing on five key dimensions: the terrestrial connectivity corridor, its role as a geopolitical and economic catalyst, the partnership paradigm, digital sovereignty considerations, and its alignment with Ethio Telecom’s “Next Horizon: Digital & Beyond 2028” strategy.

From Water to Land: A Terrestrial Connectivity Corridor

For the past two decades, East Africa’s international bandwidth narrative has primarily unfolded offshore, with undersea cables landing in Djibouti, Mombasa, and Port Sudan, supplying national backbones further inland. The Horizon Fiber Initiative signifies a deliberate shift from exclusive reliance on submarine routes to a high-capacity terrestrial corridor that connects these landing stations across borders: Djibouti, Ethiopia, and Sudan.

Strategically, this terrestrial corridor achieves three key objectives:

First, it reduces vulnerability at the Red Sea chokepoint, where security incidents, anchor cuts, and geopolitical tensions have highlighted the fragility of depending solely on subsea routes. By establishing a multi-terabit, low-latency land path between Red Sea gateways, Horizon Fiber provides redundancy for traffic between the Horn, the Gulf, and onward to Europe and Asia.

Second, it transforms Ethiopia from a “dead end” into a transit state. Historically, Ethiopia’s connectivity has been heavily reliant on Djibouti’s landing stations. Horizon repositions Ethiopia as a bridge rather than just a destination, facilitating traffic flow between Sudan and Djibouti and, by extension, connecting Central and East Africa to the global backbone.

Third, it enables multi-route engineering. Operators, hyperscalers, and content delivery networks increasingly require diverse terrestrial paths to optimize latency, resilience, and cost. A robust Djibouti–Addis–Khartoum corridor allows traffic to be dynamically rerouted around disruptions, whether in the Red Sea, Suez, or within any national network.

In technical terms, Horizon serves as a backbone. In strategic terms, it functions as a corridor—physical infrastructure capable of transporting not just data packets, but also trade, investment, and influence.

Geopolitical and Economic Catalyst for AfCFTA

The logic of Horizon Fiber aligns closely with the African Continental Free Trade Area (AfCFTA), where a single market necessitates not only roads and customs unions but also digital highways that minimize the costs and friction associated with cross-border commerce.

A terrestrial corridor of this nature can catalyze the AfCFTA in several ways:

Lowering regional Internet transit costs. By interconnecting the infrastructures of three incumbent operators, Horizon can create competitive wholesale routes compared to single-country backbones that resell international capacity at a premium. If the project is priced and regulated with transparency, ISPs and data-intensive enterprises in the region could access cheaper and more reliable transit options, essential for facilitating digital trade.

Supporting cross-border platforms. Cloud services, fintech, e-commerce, and content distribution networks rely on predictable, low-latency connections across markets. A resilient Horn corridor provides regional platforms—from payment processors to data centers—a robust backbone for scaling operations across Djibouti, Ethiopia, Sudan, and further into landlocked markets.

Strengthening bargaining power. Collective ownership of a strategic route empowers African operators to negotiate with hyperscalers and global carriers from a stronger position, offering them access to multiple hinterlands through a single, African-controlled gateway instead of fragmented national deals.

In a region where geopolitics often revolves around port access and military bases, a shared digital corridor introduces a new form of leverage: the ability to route global data flows through African-managed infrastructure, with significant regulatory, economic, and security implications.

From Competition to Innovation Partnerships

One of the most significant aspects of Horizon Fiber is not the fiber itself, but the language used by its architects to describe their collaboration. Ethio Telecom’s CEO, Frehiwot Tamru, characterized the project as “a shared digital future,” emphasizing that by combining infrastructure assets and technical expertise, African operators can “solve real connectivity challenges and unlock new value” for customers and hyperscalers. Djibouti Telecom’s CEO, Mohamed Assoweh Bouh, focused on “shared prosperity” and digital sovereignty, while Sudatel’s CEO, Magdi M. Abdalla Taha, referred to Horizon as “a living model of innovative partnership” and “a replicable benchmark” for the continent.

This rhetoric signals a paradigm shift from pure market competition to “innovation partnerships” in at least three ways:

Asset pooling instead of duplication. Rather than each operator constructing parallel, competing corridors with limited usage, Horizon proposes a collaboratively designed route that utilizes existing ducts, rights-of-way, and national backbones. This could enhance asset efficiency and reduce the long-term unit cost of capacity.

Shared risk in a high-capital environment. Terrestrial cross-border fiber is capital-intensive and politically sensitive. By sharing risk and capital expenditures, the three state-linked incumbents can undertake a project that might be individually prohibitive, especially given foreign exchange constraints and domestic investment priorities.

Signaling to regulators and financiers. The partnership model communicates to multilateral lenders, development finance institutions, and private investors that African incumbents can coordinate on regional public goods, not just local markets. This could facilitate the blending of concessional finance, vendor credit, and commercial capital into similar corridors elsewhere.

The risk, however, is that such alliances could solidify into regional cartels, limiting access for smaller players. The extent to which Horizon evolves into an open, neutral platform—or a closed club—will determine whether it fosters competition or merely consolidates the power of incumbents.

Digital Sovereignty Through Co-Ownership

Horizon Fiber is also part of a broader discussion about digital sovereignty: the capacity of states and regions to control critical digital infrastructure, standards, and data flows rather than ceding them entirely to foreign carriers and platforms.

By co-owning a strategic corridor that connects them directly to global cable systems, Djibouti, Ethiopia, and Sudan gain several sovereignty advantages:

Control over routing and redundancy. They can prioritize resilience for their own markets during disruptions, rather than relying solely on the commercial decisions of foreign carriers.

Regulatory jurisdiction. Traffic transiting the corridor falls under the regulatory and legal frameworks of the three states, which is significant for data protection, lawful interception, and cybersecurity policy.

Strategic autonomy in vendor choices. A jointly engineered corridor may mitigate vendor risk if the partners consciously avoid single-vendor lock-in, although this will depend on procurement decisions that have not yet been fully revealed.

However, digital sovereignty is not absolute. Submarine cables landing in Djibouti and Port Sudan remain critical chokepoints often financed or controlled by non-African consortia. Major content and cloud providers continue to operate on global architectures and may insist on their own routing preferences. Thus, Horizon Fiber should be viewed as incremental sovereignty: an important step toward African agency in infrastructure, but one that still functions within a global ecosystem dominated by external capital and technology.

Ethio Telecom’s “Next Horizon” and the Regional Pivot

For Ethio Telecom, Horizon Fiber is explicitly positioned as a cornerstone of its “Next Horizon: Digital & Beyond 2028” strategy. This roadmap aims to transform the company from a domestic incumbent into “a globally competitive, regionally diversified, and digitally empowered enterprise” that extends beyond connectivity into platforms, ecosystems, and regional solutions.

The Horizon corridor advances this vision along several key dimensions:

Transit Hub Status. By facilitating international traffic between Sudan and Djibouti and consolidating demand from landlocked neighbors, Ethiopia can establish itself as a regional transit hub. Ethio Telecom will serve as a wholesaler and platform operator, moving beyond the role of a national telecom provider.

Platform for New Services. High-capacity, low-latency regional fiber is essential for data centers, cloud services, content caching, and cross-border fintech. Ethio’s strategy emphasizes investments in cloud infrastructure, modular and hyperscale data centers, and cybersecurity solutions; a regional corridor broadens the reach of these assets.

Revenue Diversification. With domestic average revenue per user (ARPU) under pressure and an increasingly competitive mobile market, wholesale and regional services present Ethio Telecom with new revenue opportunities that are less vulnerable to local price caps and political fluctuations.

Alignment with National and AU Digital Agendas. Ethiopia’s digital transformation strategy and the African Union’s (AU) Digital Transformation Strategy both prioritize cross-border infrastructure, data markets, and innovation ecosystems. Horizon makes these strategies actionable by providing the physical fiber needed to support policy goals.

If Next Horizon represents Ethio Telecom’s effort to evolve from a “national champion” to a “regional platform,” then Horizon Fiber serves as one of its assessments. The successful execution of this initiative will test the company’s ability to manage cross-border projects, complex partnerships, and extensive regional customer relationships.

Is AU willing to become the institution Africa needs?  

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From an online post, a commentator asked an intriguing question: “If the African Union (AU) cannot create a single currency, a unified military, or a common passport, then what exactly is this union about?”.

The comment section went wild, with some commentators saying that AU no longer serves the interest of the African people, but rather the interests of the West and individual nations with greedy interests in Africa’s resources. Some even said jokingly that it should be renamed “Western Union”.

But seriously, how has a country like France managed to maintain an economic leverage over 14 African states through its CFA Franc system, yet the continent is unable to create its own single currency regime? Why does the continent seem to be comfortable with global powers establishing their military bases throughout its territories yet doesn’t seem interested in establishing its own unified military? Why does the idea of an open borders freak out our leaders, driving them to hide under sovereignty?

These questions interrogate AU’s relevance in the ensuing geopolitics. No doubt, the AU is still relevant as it still speaks on behalf of Africa on global platforms as a symbol of the continent’s unity. But the unease surrounding it is justified because symbolism is no longer enough.

In a continent grappling with persistent conflict, economic fragmentation, and democratic reversals, institutions are judged not by their presence, but by their impact.

From the chat, and several other discussion groups on social media, most Africans are unhappy with the performance of the African Union so far. To many, the organization is out of touch with reality and they are now calling for an immediate reset.

To them, AU is a club of cabals, whose main achievements have been safeguarding fellow felons.

One commentator said, “AU’s main job is to congratulate dictators who kill their citizens to retain power through rigged elections.” Another said, “AU is a bunch of atrophied rulers dancing on the graves of their citizens, looting resources from their people to stash in foreign countries.”

These views may sound harsh, but are a good measure of how people perceive the organization across the continent. 

Blurring vision

The African Union, which was established in July 2002 to succeed the OAU, was born out of an ambitious vision of uniting the continent toward self-reliance by driving economic Integration, enhancing peace and security, prompting good governance and, representing the continent on the global stage – following the end of colonialism.

Over time, however, the gap between this vision and the reality on the ground has widened. AU appears helpless to address the growing conflicts across the continent – from unrelenting coups to shambolic elections to external aggressions.

This chronic weakness has slowly eroded public confidence in the organization and as such, AU is being seen as a forum for speeches rather than solutions – just as one commentator puts it, “AU has turned into a farce talk shop that cannot back or bite.”

Call for a new body

The general feeling on the ground is that AU is stagnant and has nothing much to show for the 60+ years of its existence (from the times of OAU). It’s also viewed as toothless and subservient to the whims of its ‘masters’.  Some commentators even called for its dissolution and the formation of a new body that would serve the interests of the continent and its people. 

This sounds like a no-confidence vote. To regain favour and remain a force for continental good, AU must undertake critical reforms, enhance accountability, and show political courage as a matter of urgency. Without these, it may endure in form while fading in substance.

The question is not whether Africa needs the AU, but whether the AU is willing and ready to become the institution Africa needs – one that is bold enough to initiate a daring move towards a common market, a single currency, a unified military, and a common passport regime. It is possible!

Omuodo is a pan-African Public Relations and Communications expert based in Nairobi, Kenya. He can be reached on mike.omuodo@mediafast.co.ke

When Progress Pushes Small Businesses Out

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In cities across the world, there’s a familiar narrative unfolding: beloved corner shops, family-run cafes, and long-standing local boutiques are vanishing, replaced by sleek high-rises, franchised chains, or tech-driven conveniences. While urban development and economic “progress” are often celebrated, they carry an undercurrent of displacement particularly for small businesses. What is lost when progress pushes small businesses out is not merely economic diversity, but cultural richness, community cohesion, and the nuanced fabric that makes neighborhoods distinctive.

Small businesses are often portrayed as quaint, sentimental, or even expendable in the face of modernity. Yet they represent a critical economic and social pillar. According to the U.S. Small Business Administration, small businesses employ nearly half of the nation’s workforce and account for a significant portion of innovation. Beyond numbers, they provide spaces for human connection, for local culture to flourish, and for traditions to be sustained. A local bookstore, a family-run restaurant, or a corner bakery carries stories, memories, and relationships that corporate chains cannot replicate. When these businesses disappear, the community loses more than commerce. Tt loses identity.

One of the most visible forces pushing small businesses out is real estate pressure. Rising rents in gentrifying neighborhoods, fueled by investment and development, create an untenable environment for businesses with narrow margins. Consider a small café that has served a community for decades. Its rent, long manageable, suddenly doubles after a property sale or redevelopment plan. The owners face a stark choice: pass the cost onto customers, potentially losing loyalty and sales, or close the doors. Frequently, they close. Meanwhile, a national chain with deeper capital reserves can absorb the higher rent, perpetuating a cycle where moneyed interests replace local character.

Technology-driven disruption is another factor. E-commerce giants and delivery apps, while offering convenience to consumers, have intensified competition for small brick-and-mortar businesses. Local shops struggle to match the pricing, logistics, and marketing reach of online platforms. Even businesses that adapt with digital offerings face the challenge of customer retention and the erosion of spontaneous community engagement. A neighborhood’s vibrancy is not solely transactional; it thrives on chance encounters, shared experiences, and the human touch that digital interfaces cannot replicate.

Government policies, intended or not, also shape this landscape. Zoning regulations, tax structures, and licensing requirements often disproportionately burden small enterprises. While large corporations can navigate legal complexities and lobby for favorable policies, small business owners frequently contend with bureaucratic hurdles that consume time and resources. Incentives meant to stimulate growth sometimes fail to differentiate between entities with vastly different capacities, leading to a homogenization of the local economy. The cumulative effect is that small businesses, which once anchored neighborhoods, are increasingly edged out.

Cultural impact is perhaps the most insidious and least discussed consequence. Small businesses are incubators of identity. They reflect local tastes, heritage, and creativity in ways that chain stores cannot. The family-owned bookstore is not just a retail space; it’s a repository of stories and local knowledge. The independent diner is a gathering place where generations intersect. As these establishments disappear, so too does the subtle but profound sense of community. Streets and neighborhoods may appear modernized, but they become emotionally and culturally flattened. Cities risk becoming interchangeable, stripped of the textures that make them memorable and livable.

There are also social equity considerations. Small businesses are often entry points for entrepreneurship among marginalized communities. They provide opportunities for women, immigrants, and minority groups to create economic independence and influence local economies. Displacement of these businesses perpetuates systemic barriers, reinforcing economic stratification and limiting upward mobility. Progress that prioritizes high-value commercial development over community-led business growth can inadvertently exacerbate inequality.

Yet, the tension between progress and preservation is not merely antagonistic; it is complex. Economic growth, infrastructure development, and technological innovation are essential for societal advancement. The challenge lies in defining progress inclusively, in a way that allows small businesses to coexist with modernization rather than be obliterated by it. Cities and policymakers must consider approaches that balance growth with community retention. Rent stabilization for commercial spaces, targeted tax relief, and support for digital transition can provide small businesses with a fighting chance. Initiatives like community land trusts or cooperative ownership models empower local entrepreneurs to remain competitive while sharing in the benefits of neighborhood growth.

Consumer behavior is equally important. In an era of convenience and speed, the value of local businesses can be overlooked. Shoppers may not realize that choosing a chain store over a family-owned shop contributes to a cycle of displacement. Conscious consumerism—prioritizing local vendors, supporting small-scale enterprises, and advocating for policies that protect them—can shift the balance. Communities that actively invest time, money, and attention into their local businesses help create resilient neighborhoods that can weather market pressures.

There are inspiring examples of resilience and adaptation. In many cities, small businesses have leveraged technology to expand their reach, engage communities, and compete with larger corporations. Farmers’ markets, pop-up shops, and collaborative retail spaces offer models for sustaining entrepreneurship in dense urban areas. Municipalities like Portland, Oregon, or Asheville, North Carolina, have experimented with zoning laws and tax incentives designed to preserve small business ecosystems amid growth pressures. These examples demonstrate that with thoughtful intervention and civic engagement, progress need not be synonymous with displacement.

Ultimately, the question is philosophical as much as economic: what kind of progress do we want? If progress is measured solely by profit, efficiency, and scale, small businesses will inevitably be casualties. If progress is understood as societal enrichment, cultural preservation, and inclusive opportunity, then small businesses are essential, not expendable. Preserving them is not a nostalgic exercise; it is a strategic investment in economic diversity, community stability, and human well-being.

As cities evolve, policymakers, developers, and residents must ask: Are we creating spaces that value only financial returns, or are we fostering communities where human connections, local creativity, and small enterprise can thrive? The answer determines not only the character of our neighborhoods but the texture of our lives. Progress should be a tide that lifts all boats, not a wave that drowns the smallest and most vulnerable. In recognizing the stakes, society has the opportunity to cultivate a form of advancement that celebrates both innovation and tradition, ensuring that the small businesses at the heart of our communities are not swept aside in the name of progress.

In the end, small businesses are more than commerce. They are the living heartbeat of neighborhoods. When progress pushes them out, we risk losing not only what they sell but what they stand for: resilience, ingenuity, and community. Preserving them requires deliberate effort, thoughtful policy, and a cultural commitment to valuing the local. Without this, progress becomes a hollow concept, measured in square footage and revenue rather than in the richness of everyday life.