Saturday, September 27, 2025
Home Blog Page 146

50 Years of Partnership

0

As Ethiopia and the European Union mark 50 years of diplomatic relations, the partnership between Addis Ababa and Brussels stands at a pivotal crossroads—shaped by both longstanding cooperation and new global realities. From supporting Ethiopia’s ambitious reform agenda and humanitarian needs to championing sustainable development and trade, the EU remains a key ally in Ethiopia’s journey toward peace, prosperity, and integration into the global economy. Amid shifting geopolitical dynamics, regional challenges, and the ongoing quest for inclusive growth, the role of the EU has never been more significant.

In this exclusive interview, Sofie From-Emmesberger, Ambassador of the European Union to Ethiopia, discusses the current state of EU-Ethiopia relations, the bloc’s response to pressing humanitarian and development needs, and the opportunities and challenges that lie ahead. She shares insights on the EU’s support for peace and stability in conflict-affected regions, strategies for climate resilience, the future of trade and investment, and the evolving landscape of mobility and migration. Ambassador From-Emmesberger’s perspectives offer a comprehensive look at how the EU is working with Ethiopia to build a more resilient, democratic, and prosperous future for all. Excerpts;  

Capital: How would you characterize the current state of relations between the EU and Ethiopia, particularly in light of recent regional and global developments?

Sofie From-Emmesberger: EU-Ethiopia relations are strong – as we can see also from the recent high-level meetings between Ethiopia and the EU and EU Member States. We celebrate 50 years of relations this year, and I can say with some confidence that in EU and its Member States Ethiopia has a trusted partner.  We have been reliable, long-time supporters of Ethiopia’s economic development efforts to lift millions of people out of poverty and now supporting in many different ways the ambitious reform agenda. Together with our member states, we are mobilising collectively ca EUR 1 billion/year in the country. The EU operates in a transparent and predictable manner. We are also one of the top, if not the top, source of foreign direct investment in Ethiopia.  Together with the European Chamber of Commerce, with its around 200 European companies, we are engaging with the Government to find ways to overcome remaining bottlenecks in the business environment. And these solutions are aimed at benefitting all businesses in Ethiopia – national and international.

On key nationally led and owned processes, such as National Dialogue, Transitional Justice, and DDR, the EU and EU Member States are by far the main external supporters. This shows our commitment to a democratic society, which can address its past and seek solutions for the future. In this regard, a free and vibrant civil society, able to be a part of a system of checks and balances, is key.

Our own experience is that the only viable option for societies to be at peace with themselves and to foster truly sustainable development is to “fully democratise”. I am well aware that this is not an easy process and democracy – everywhere- needs continuous work. In the EU we do speak from experience, and our efforts and support come as partners and with the interest of the people at the forefront.

EU/EU MS are also key players in humanitarian assistance. We have been very active promoters of modern solutions that empower local Ethiopian actors. The core of humanitarian action is International Humanitarian Law and humanitarian principles of independence, neutrality, impartiality and humanitarian imperative. Whatever assistance is provided should be designed based on those principles, for the sake of protecting civilians, especially in conflict-affected zones. Key is that we can report objectively about people in need and contribute to reaching the most vulnerable among them within the country.

 I have only touched on a small part of EU-Ethiopia relations, which are broad and multifaceted, but I would like to stress that relations are very strong and we aim to deepen them further.

In the context of regional and global developments the EU is, where possible, present throughout the region to deliver humanitarian, lifesaving assistance, support through development cooperation,  contribute to crisis management through EU’s CSDP missions and operations and on the diplomatic front to seek peaceful resolution of conflicts. On the latter, the EU Special Representative for the Horn of Africa Ms Annette Weber is playing an active and central role.

Global developments are also moving fast. On the positive side, the AU has taken its seat at the G20 table. As a sister organisation to the EU, we were at the very forefront of efforts for this! The EU-AU partnership is growing strong, as we saw from the highly successful Ministerial meeting concluded just last week in Brussels, where also Dr. Gedion Thimothewos, Ethiopia’s Foreign Minister, participated. We look forward to the EU-AU Summit!

But other international relations do indeed appear to be in flux, shown perhaps most tragically by the international system’s inability to secure peace for Ukraine and Palestine/Israel. On Gaza the EU’s High Representative together with Commissioners in charge were very clear in a recent statement: The EU calls urgently on Israel to lift immediately the blockade on Gaza and repeats its call for a resumption of the ceasefire, the immediate and unconditional release of the hostages, leading to a permanent end to hostilities and ultimately to a two state solution. On Ukraine, EU has from the start resolutely condemned   Russia’s war of aggression against Ukraine, which constitutes a manifest violation of the UN Charter.  The solidarity shown towards the people of Ukraine through numerous UN resolutions since the start of the Russian aggression is impressive and a clear sign that the Russian attempt of neo-colonialism has failed.

Against this challenging background, it is comforting to know that we have a strong partner in Ethiopia, a UN founding member, on a wide array of issues – not least on the all-important need for more and stronger multilateralism.

Capital: What actions is the EU undertaking to address human rights concerns and promote peace and stability in conflict-affected regions such as Tigray, Amhara, and Oromia?

Sofie From-Emmesberger: The EU and EU Member States are strong supporters of civil society organisations and initiatives to promote peace in the country. We are ready – as long as parties see our input as useful – to support confidence-building measures, facilitate negotiations etc. We have done this in other countries, we know how sensitive and difficult the issues are. The joint statement by the EU and 43 countries at the recent UN Human Rights Council session indicate our joint position on developments in the country, as does the recent statement of the EU Delegation on World Press Freedom day. I wish to stress, we are not here to preach, but to through cooperation and dialogue support home-grown initiatives, and add the experience from the European context.

I wish to take the opportunity to encourage all Ethiopia stakeholders – whether in country or spread across the globe as a vibrant diaspora – to support key processes such as the National Dialogue and Transitional Justice. My hope is that these processes are given the time and space to address the very complex and sensitive issues at hand as fully as possible.

Capital: In supporting Ethiopia’s post-conflict recovery, how does the EU balance its humanitarian response with longer-term development and institution-building efforts?

Sofie From-Emmesberger: The EU recognizes that addressing urgent humanitarian needs is crucial to stabilizing communities and preventing further suffering in a post-conflict phase. However, it also emphasizes the importance of sustainable recovery, which involves investing in the development of robust institutions and infrastructure that can support Ethiopia’s long-term growth and stability. This integrated approach ensures that while immediate relief is provided, efforts are simultaneously being made to strengthen systems in sectors such as governance, DDR, Disaster Risk Management, health care, and education, which are critical for lasting peace and prosperity.

Capital: Given the reallocation of significant EU development aid to Ukraine, what implications might this shift have for Ethiopia, where such support plays a vital role?

Sofie From-Emmesberger: The allocation of EU development aid to Ukraine is not showing a significant impact on EU support for Ethiopia.

Capital: Beyond emergency assistance, how is the EU contributing to sustainable development, including in sectors such as health, education, and economic infrastructure?

Sofie From-Emmesberger: EU is actively contributing to Ethiopia’s sustainable development across various sectors. In health, initiatives are focused on strengthening healthcare systems, improving access to essential services, and building capacity through training and resource provision. In education, the EU supports programmes that aim to enhance educational quality, and expand access to vocational training, creating opportunities for economic empowerment. Additionally, in economic infrastructure, the EU invests in projects that enhance the business climate and governance, that improve energy access and foster digital connectivity, all of which are essential for facilitating economic growth and attracting investment.

Capital: What specific strategies or programs is the EU implementing to help Ethiopia address climate change and build resilience through adaptation?

Sofie From-Emmesberger: To help Ethiopia address climate change and build resilience, the EU is implementing several strategies and programs centered on adaptation and sustainable resource management. These include supporting initiatives that promote sustainable agriculture practices, enhancing water resource management, and fostering renewable energy development. The EU also works with local communities and governments to design and implement climate-resilient infrastructure projects and capacity-building programmes that empower communities to adapt to changing environmental conditions. By promoting a multi-faceted approach to climate resilience, the EU aims to strengthen Ethiopia’s ability to mitigate the adverse impacts of climate change effectively.

The EU will continue investing in critical areas such as land governance and nature conservation, reinforcing landscape-oriented and community-level actions of the Green Legacy Initiative.

Let me also highlight that we recently inaugurated the Assela wind farm as the first milestone in implementing Global Gateway in Ethiopia’s energy sector. EU member state Denmark has been in the lead and financed this wind park that has now started to feed power into Ethiopia’s national grid. The EU and EU Member States will continue supporting smart investments that contribute to Ethiopia’s clean energy transition, especially through an extended partnership with Ethiopian Electric Power to modernise and digitalise its electricity grid.

Capital: How does trade feature in the EU-Ethiopia partnership, and what opportunities exist to expand this relationship through preferential access initiatives like “Everything But Arms”?

Sofie From-Emmesberger: Trade plays a significant role in the EU-Ethiopia partnership, with initiatives like “Everything But Arms” (EBA) offering Ethiopian products preferential access to European markets. This arrangement provides Ethiopia with duty-free and quota-free access for all its exports, except arms and ammunition, thereby creating opportunities for economic growth and diversification. Today, the EU is Ethiopia’s most important export market. To expand this relationship, the EU and Ethiopia can explore additional measures to enhance trade facilitation, improve infrastructure, and remove technical barriers to trade. By doing so, both partners can capitalize on existing opportunities and develop new avenues for trade, fostering deeper economic ties that support Ethiopia’s development objectives. In this context, the EU strongly supports the accession of Ethiopia to the WTO. We also encourage Ethiopia on its path towards closer integration with other African markets through AfCFTA and COMESA. In 2025, under the EU Alliance for the Horn of Africa Initiative, the EU has allocated €6 million to support the implementation of the AfCFTA across Ethiopia, with a particular focus on the private sector.

Capital: Considering recent global trade shifts, including new U.S. tariffs on Europe, how might these external pressures affect EU trade frameworks that benefit least developed countries like Ethiopia?

Sofie From-Emmesberger: Recent global trade shifts have not affected existing EU trade frameworks, particularly those benefiting least developed countries like Ethiopia. On the contrary, EU wants cooperation, not confrontation. Maintaining a strong partnership with Ethiopia will remain a priority as the EU navigates these challenges and seeks to uphold its commitments to supporting development.

Capital: What steps can Ethiopia take to position itself as a more attractive destination for European direct investment, and which sectors are most promising from the EU’s perspective?

Sofie From-Emmesberger: The EU wants Ethiopia’s ambitious economic reforms to succeed – and we support these through different channels. The EU Global Gateway is currently supporting Ethiopia’s energy transition with a significant EUR 270 million Team Europe programme. Recently, we signed a further package of EUR 240 million in development support in the areas of Green Deal, Human Development, Governance and Peacebuilding.

Ethiopia is also important for European businesses – in what is a “win-win” scenario. EU companies create thousands of good jobs in the country, and ensure FDI / foreign currency in-flows, as they expand their markets and increase revenues, and transfer technology. From the EU’s perspective, sectors with promising potential for investment include renewable energy, agro-processing, health, and digital. By leveraging its natural resources and strategic location, Ethiopia can present itself as a competitive and appealing option for European businesses seeking investment opportunities in Africa.

We have an ongoing dialogue with the Government to improve the business climate – to keep existing investors (who are affected in particular by insecurity) but also to attract new ones. The best way to attract further investment is to take very good care of investors that are already here. Ethiopia has taken proactive steps and I trust that more will follow in areas like streamlining regulatory processes, ensuring rule of law and respect for human rights.

Capital: What is the EU doing to facilitate mobility for Ethiopian businesspeople, in light of visa access challenges that are currently pushing trade ties toward Asia?

Sofie From-Emmesberger: This is an important question. We have just seen the visa statistics to the Schengen for 2024. Interestingly, the data appears to indicate that in fact there has not been a reduction in visas issued since the visa measures were adopted. This is great news. This means that even with the admittedly lengthy procedures in place that followed from the adoption by EU Member States of visa measures on 1 June 2024, a substantial amount of Ethiopians have still wished to come to the Schengen / EU area, and have been given the opportunity to do so. At the same time, the Ethiopian authorities and EU Member States are working hard to have the measures lifted – this is a key priority, but contingent on sustained action. This will allow even more exchange, so that we may advance relations even further, as alluded to above.

It is important to recall that legal migration, resettlement and integration are key elements of the EU’s comprehensive and balanced approach to mobility and migration. Most migrants entering the EU come through legal migration channels, such as work, study, family reunification, or resettlement. The 2024 EU Pact on Migration and Asylum shows the way of improving legal pathways to the EU. The EU Delegation is currently working with partners to establish a competitive and workers’ rights-oriented labour migration system for Ethiopians. With a budget of EUR 6.5 million, the programme will aim to strengthen the capacity of Ethiopian institutions to monitor labour migration and inform relevant policies and to negotiate bilateral labour agreements with selected destination countries. It will also aim to improve skill sets of Ethiopian candidates for overseas employment and improve the protection system for labour migration (from pre-departure to return). Its objective will also be to enhance and professionalise the Ethiopian overseas recruitment process.

Bill Gates says Africa is leading a new era of innovation and progress

0

Bill Gates, Chair of the Gates Foundation, will be in Ethiopia this week — his first stop in Africa since announcing plans to give away $200 billion through the foundation over the next two decades. In advance of his trip, Capital’s Groum Abate asked Gates to unpack the significance of this announcement and what it could mean for Africa. Excerpts;

Capital: The foundation recently announced it will be sunset by 2045, doubling its spending to $200 billion over the next 20 years. What were the key factors that led to this accelerated timeline?

Bill Gates: The decision to accelerate our timeline reflects a sense of urgency and opportunity at a critical moment.

While the world has made incredible progress in global health and development over the past 25 years, in the last several years we’ve seen African countries face debt burdens, a slow then abrupt pullback in foreign aid, and other shocks that challenge that progress, especially here in Africa. So, rather than preserve the institution indefinitely, the foundation has committed to spend $200 billion to accelerate progress. That’s double what we spent in the past 25 years.

We believe transformative changes are possible, particularly on our three core goals: ending preventable deaths of mothers and children, eliminating deadly infectious diseases, and helping millions lift themselves out of poverty. We won’t achieve all of these completely in the next 20 years, but I think with partnerships and support from governments, the private sector, and other philanthropies, we can go a long way towards saving and improving millions of lives. I’m very excited about that.

Capital: What steps are you taking to ensure progress is sustained after the foundation closes, especially in the areas of child health and infectious diseases?

Bill Gates: We see the next 20 years not as an exit, but a transition to deeper African ownership. The foundation has partnered with African institutions, researchers, and philanthropists for decades. There’s incredible talent and energy on the continent, and we will continue to support that over the next twenty years. In fact, most of the money we spend during that period will have impact in Africa and will have broader impact in the U.S. and globally. Governments and local organizations will carry the work forward long after we are gone.

Africa is experiencing transformative progress powered by innovation and local leadership. AI-enhanced tools like handheld ultrasound are being used to identify high-risk pregnancies, potentially saving up to 2 million mothers’ lives by 2030. Researchers such as Dr. Bosede Afolabi in Nigeria are pioneering maternal health solutions, including IV iron and intrapartum sensors, to ensure safer pregnancies and deliveries. Maternal and child mortality rates have dropped significantly, and countries have seen life expectancy rise due to better healthcare, nutrition, and economic growth—like in Ethiopia, where since 2000, life expectancy has risen from 51 to 67. Immunization coverage is rising in many regions, wild poliovirus has been eradicated on the continent, and Algeria and Cape Verde have eliminated malaria. African nations are also making progress against neglected tropical diseases—Niger recently became the first on the continent to eliminate river blindness.

So many countries are leading their own progress—but this progress is uneven, and now, political and economic headwinds are threatening to reverse it. It will take concerted effort to keep up momentum and extend this progress to the most remote places.

Capital: How are you working to ensure that local philanthropists and scientists in the Global South—particularly in Africa—can carry forward this work and sustain impact amid declining global donor support?

Bill Gates: We recognize that no philanthropic organization, no matter how large, can replace public investment. Our role has always been catalytic: to fund early-stage solutions, build evidence, and support partners who can scale interventions sustainably. But this moment demands more.

We’re doubling down on high-impact investments. Gavi and the Global Fund, which the foundation helped create, have saved more than 80 million lives since 2000. These institutions are entering new replenishment cycles, and we’re urging traditional donors to continue backing them. The foundation is also advocating for greater investment in areas where market forces alone won’t drive the solutions we need, such as malaria eradication, pandemic preparedness, and maternal health

.Over the two decades that we’ve been partnering with African institutions, we’ve seen how philanthropy can act not just as a source of funding, but as a catalyst—offering flexible, risk-tolerant support in areas where markets and governments cannot move quickly or go far enough.

A powerful example is drug discovery: a high-risk, high-reward field largely neglected in Africa due to weak incentives and systemic underinvestment. Africa hosts the smallest share of clinical trials globally, resulting in therapies that often overlook the continent’s specific health needs. Philanthropic support—like the Grand Challenges Africa Drug Discovery Accelerator—has enabled African scientists to lead in discovering new treatments for diseases such as TB and malaria, with innovations rooted in local knowledge and priorities.

The private sector in Africa is also stepping up. Earlier this month, the Africa CEO Forum concluded in Abidjan with a resounding call for deeper public-private collaboration to accelerate the continent’s economic transformation. I understand more than $200 million in investment commitments were announced across critical sectors, including energy, artificial intelligence, and agriculture—clear evidence that Africans are not waiting for others to come in and solve problems, but rather, that shaping those solutions themselves.

Capital: The foundation is known for supporting breakthrough innovations in health and development. How do you balance investing in high-risk, high-reward innovations with supporting the scaling of proven interventions, especially given the new 20-year timeline?

Bill Gates: We’re on the brink of some exciting breakthroughs in fighting TB, which still kills more people annually than HIV or malaria. The first new tuberculosis vaccine in a century is in Phase 3 trials as we speak. Innovations like gene therapy for sickle cell disease and AI-powered diagnostics offer enormous promise, but only if they’re affordable and accessible to all. If a new drug or vaccine is too expensive, it won’t have the impact we need. That’s why we’re partnering with African researchers and experts around the world to drive down costs and innovate creative solutions to long-lasting challenges.

Artificial intelligence is also a key part of our innovation agenda. Across Africa, homegrown tools are bridging critical gaps—like Mkulima GPT,a Swahili chatbot that helps farmers get the best, most up-to-date information and training; EDVES, an AI-powered school management system; and Crop2Cash ,a platform that helps farmers access digital finance and markets.

Capital: How is the foundation using data and partnerships to advance equity, especially in education and health systems?

Bill Gates: Data helps identify where the greatest needs lie and distribute resources effectively. We take a data-first approach to advancing equity, using rigorous evidence to identify where needs are greatest and which interventions deliver the most impact. Across the continent we are working in partnership with a diverse range of partners including government ministries, national universities and public health institutes, national statistical offices, external funders, non-governmental and private sector institutions all aimed at improving the quality, accessibility and use of data that helps identify how different sectors are performing be they immunization, maternal health or simply tracking disease burden.

Without data, countries can end up missing things like disease outbreaks or identifying where the greatest need is or largest gaps in the health system are or learning from those parts of the country that are doing better than others. Good data systems help governments allocate limited resources more efficiently, and we are committed to helping countries sustainably strengthen their data systems. Ethiopia has made great strides in strengthening its own data systems – last time I was here I saw progress made on many fronts including improving shipment data so that the country could track whether the right live saving medicines were available in country. I saw efforts being made to strengthen health facility data so that the government could assess the quality and accessibility of facilities and understand the number of people and type of service being received. I saw investments in your universities and public health institutes that are helping the government analyze and draw insights of complex data. These insights inform more inclusive policies and resource allocation, particularly in underserved communities.

In education, the foundation applies the same commitment to evidence by investing in research and partnerships that elevate solutions proven to improve learning outcomes for historically marginalized learners. It supports the use of education data to assess foundational literacy and numeracy, identify gaps in access and quality, and scale what works

Capital: You have highlighted the power of AI to accelerate positive transformation and development. Can you share examples of how the foundation is investing in AI, and what safeguards are in place to ensure AI is used ethically?

Bill Gates: We’re already seeing AI’s impact in improving the lives of women, children and vulnerable communities. AI enabled x-rays and ultrasounds are increasing access to life-saving medical innovation for people in remote areas who typically lack access to specialist care. Point of care diagnostics and treatment guidance are helping community healthcare workers serve patients more quickly and effectively.

The “Catalyzing Equitable AI Use to Improve Global Health” initiative—supported by the Grand Challenges network, including the Gates Foundation, the South African Medical Research Council, and the Science for Africa Foundation—has backed more than 50 projects across low- and middle-income countries to drive AI-powered solutions to urgent health challenges

.In Nigeria, Dr. Nneka Mobisson, CEO of mDoc Healthcare, is integrating large language models into a digital platform to deliver personalized, culturally grounded health guidance for women, particularly around chronic disease and reproductive health. In South Africa, Professor Lara Fairall is leading the development of AISHA, an AI tool that synthesizes evidence-based clinical recommendations to support better decision-making by frontline health workers. And in Côte d’Ivoire, Rory Assandey is scaling KIKO, a WhatsApp-based AI chatbot that offers young people anonymous access to mental health support and connects them to care.

These innovators are helping to ensure that the benefits of AI are not only cutting-edge, but also inclusive, context-specific, and responsive to local health needs. But of course, we need to be purposeful about making sure AI is used ethically and equitably—by investing in inclusive datasets, supporting local innovation ecosystems, and embedding strong safeguards.

Capital: Finally, is there any progress in Ethiopia that you believe is worth highlighting?

Bill Gates: Over the past two decades, Ethiopia has emerged as an exemplar of progress in health and development. Maternal and child mortality has declined significantly, with under-five mortality reduced by more than two-thirds — driven by investments in primary healthcare, immunization, and a pioneering community health worker program. The country has also made notable gains in HIV prevention and treatment. In agriculture, Ethiopia has improved productivity and food security through stronger extension services, better access to inputs, and investments in rural infrastructure. Financial inclusion has expanded rapidly, bringing banking and digital financial services to millions previously underserved. These achievements reflect Ethiopia’s commitment to investing in its people and offers lessons for other countries in how to prioritize health and developme

Global economic uncertainty deepens: Africa, other regions face rising risks, WEF Report Finds

0

The global economic outlook has darkened considerably in recent months, with Africa and other emerging regions facing heightened risks amid escalating trade tensions, policy uncertainty, and geopolitical fragmentation, according to the latest Chief Economists Outlook published by the World Economic Forum (WEF).The WEF’s May 2025 report, based on a survey of leading chief economists from both the public and private sectors, highlights a period of extraordinary volatility and uncertainty. Nearly all respondents agreed that the global economy is set to weaken further this year, a notably gloomier forecast compared to late 2024.

The most pronounced shift in sentiment was seen in the United States, where the majority of economists now expect weak or very weak growth for the remainder of 2025, alongside rising inflation and a weakening dollar.A key driver of this pessimism has been a series of dramatic changes in US trade policy. In early April, the US announced unprecedented increases in import tariffs, including a baseline 10% tariff on most global goods and even higher rates for countries with significant trade surpluses with the US. Although most of these tariffs were paused for 90 days following market turmoil, the underlying uncertainty remains acute, especially as the pause is temporary and could be lifted at any time.Chief economists overwhelmingly agree that higher tariffs will fuel inflation and suppress global trade volumes.

The World Trade Organization (WTO) has already forecast that threatened tariffs could cause global merchandise trade volumes to contract by 0.2% this year. The survey found that 77% of economists expect higher tariffs to lead to higher inflation, and 89% expect stagnation or decline in global trade volumes.For Africa and other emerging regions, these global shocks are particularly concerning. The report notes that “the vulnerability of the global economy to adverse policy shocks and their follow-on effects can be significant,” with developing economies often bearing the brunt of disruptions in global value chains and financial flows.Africa, which relies heavily on global trade for both exports and imports, faces compounded risks from rising tariffs, supply chain disruptions, and currency volatility. The uncertainty is likely to exacerbate existing challenges such as high debt burdens, inflationary pressures, and limited fiscal space for policy responses.

The WEF report warns that persistent uncertainty and policy miscoordination could inflict significant economic damage, especially in regions with less diversified economies and weaker safety nets.The WEF survey also highlights the growing importance of political polarization and economic nationalism as drivers of the global outlook. Nearly all chief economists anticipate that political polarization will lead to suboptimal economic decision-making this year (95%), and 94% believe economic nationalism will increasingly drive policy. This dynamic is expected to accelerate geoeconomic fragmentation, with 98% of respondents predicting a faster pace of global economic decoupling along geopolitical fault lines.For Africa, this fragmentation could mean more volatile investment flows, reduced access to international markets, and increased exposure to external shocks.

The report underscores the need for African policymakers to diversify economies, build regional value chains, and strengthen institutional resilience in the face of global headwinds1.Amid these challenges, the rapid advance of artificial intelligence (AI) is adding both complexity and opportunity to the global landscape. While 45% of chief economists expect AI to be commercially disruptive in 2025, a similar proportion believe it could add up to five percentage points to global GDP over the next decade. However, the labor market outlook is mixed, with nearly half expecting net job losses and only 19% foreseeing net gains.For Africa, the adoption of AI and digital technologies could offer new avenues for growth and development, but only if accompanied by investments in skills, infrastructure, and inclusive policies.The WEF’s latest Chief Economists Outlook paints a picture of a world in flux, where Africa and other emerging regions must navigate a landscape marked by trade tensions, policy uncertainty, and rapid technological change. For policymakers and business leaders, the report emphasizes the importance of organizational agility, supply chain diversification, and workforce reskilling to build resilience in the face of ongoing disruption.As the global economy enters an age of uncertainty, Africa’s ability to adapt and innovate will be critical—not only for weathering current storms but for shaping a more sustainable and inclusive future.

Nyala Insurance CEO elected President of African Insurance Organization

0

Yared Mola, Chief Executive Officer of Nyala Insurance S.C. (NISCO) and President of the Association of Ethiopian Insurers (AEI), has been elected president of the African Insurance Organization (AIO). The announcement was made during the 51st AIO Conference and Annual General Assembly held from May 26 to 28, 2025, at the Addis Ababa Skylight Hotel, with a closing ceremony at Sheraton Addis.

The conference, themed “Balancing the Books: Africa’s Debt Problem. Why Does Country Debt Impact Insurers?”, attracted around two thousand participants from 93 countries across Africa, the Middle East, and Europe. Industry professionals, including insurance experts, financial analysts, policymakers, and technology innovators, gathered to discuss the challenges and opportunities facing Africa’s insurance sector.Yared Mola, who previously served as AIO Vice President following his election at the 50th AIO Conference in Windhoek, Namibia, received the presidential appointment from outgoing AIO president Patty Karuaihe-Martine of Namibia.

Upon his appointment, Yared expressed his gratitude and commitment to advancing the insurance industry across the continent.In his new role, Yared outlined three key priorities; increasing insurance penetration and inclusion, especially among underserved and vulnerable communities, through innovation, education, and collaboration to close Africa’s protection gap; enhancing regulatory convergence and professionalism by promoting effective governance, standardized regulatory frameworks, and strengthening institutional capacity across African nations and promoting innovation and digital transformation to improve efficiency, scalability, and relevance in a rapidly evolving global insurance landscape.

Yared is widely recognized for his visionary leadership and expertise, having been honored as CEO of the Year among African insurance leaders in 2019. With over 30 years of experience in the insurance sector, he is currently completing his doctorate at the Paris School of Business. His career is marked by strategic leadership, risk management, marketing development, and strong advocacy for sector-wide transformation and increased public awareness of insurance’s value.Founded in 1972 and headquartered in Yaoundé, Cameroon, the African Insurance Organization aims to foster sustainable insurance development and healthy competition among African countries. The 51st conference underscored the growing importance of the insurance sector in addressing Africa’s economic challenges, including the impact of sovereign debt on insurers.