A new report by ActionAid International has sharply criticized International Monetary Fund (IMF) austerity measures for the worsening state of public health and education services in Ethiopia and across Africa. Titled “The Human Cost of Public Sector Cuts in Africa,” the report highlights how IMF-driven budget cuts are severely impacting frontline workers and the communities they serve.Based on a survey of 616 individuals across six African countries—including Ethiopia, Ghana, Kenya, Liberia, Malawi, and Nigeria—the study reveals that austerity policies have led to increased workloads, declining real incomes, and resource shortages among teachers and health professionals.In Ethiopia, 91% of teachers surveyed expressed a strong desire to leave the profession, the highest among the countries studied. The report attributes this to inadequate pay and deteriorating working conditions. Since 2020, 84% of teachers across the six countries reported a 10% to 50% decline in real income, with Ethiopian teachers facing rising student-teacher ratios—especially in rural areas where the ratio increased by 80%.The lack of resources is acute: 95% of Ethiopian teachers reported insufficient funds for essential school materials, forcing 73% to purchase supplies out of pocket and 64% to share limited resources to keep classrooms running.Similarly, healthcare workers face severe challenges. Ninety percent of Ethiopian health professionals reported significant disruptions to maternity services due to budget cuts, while all surveyed public health experts noted sharp increases in drug prices, with Ethiopia among the hardest hit. Additionally, 97% of health workers said their salaries no longer cover basic living costs, exacerbated by growing workloads.ActionAid urges the Ethiopian government, in collaboration with the Ministries of Finance, Health, and Education, to allocate at least 20% of the national budget to education and 15% to healthcare—benchmarks aligned with international standards such as the Abuja Declaration.The report calls for urgent reforms including progressive tax policies, debt cancellation or relief, and an end to IMF-imposed austerity and privatization demands. It advocates for democratizing debt decisions through frameworks like the proposed UN Sovereign Debt Framework Agreement and UN Tax Framework Agreement.Emphasizing gender equality, the report urges adherence to commitments from the Beijing Declaration and Action Forum, highlighting the importance of integrating women’s rights into economic policies.The study criticizes current debt sustainability analyses for prioritizing debt repayment over essential public spending on health, education, and social protection. It calls for incorporating human rights and development impacts into these assessments to ensure social spending is recognized as a vital part of public budgets.ActionAid warns that austerity-driven cuts risk deepening poverty, worsening inequality, and fueling social unrest. The report urges the IMF and World Bank to end austerity policies and public sector wage reductions in African countries, and instead support reforms that boost government revenues through fair taxation and debt restructuring.

The Commercial Bank of Ethiopia (CBE) is spearheading a nationwide push to expand financial inclusion by harnessing digital technology to reach millions of underserved citizens across the country. This was highlighted by CBE President Abie Sano during a panel discussion at the recent two-day Ethiopia Finance Forum.Abie acknowledged the bank’s historical focus on financing government projects, which limited its role in broadening access to finance for the general public. “For many years, we thought opening a branch or setting up a bank account was enough,” he said. “But it was never about financing public projects and not to finance them.”Now, with digital technology rapidly advancing, CBE is adopting a new mindset aimed at reaching everyone interested in financial services. This includes rethinking lending practices by easing collateral requirements and empowering local branches to approve small loans, thus facilitating access for individuals and micro, small, and medium enterprises (MSMEs).CBE’s pilot digital finance program has already financed over 24,000 borrowers with 2.3 billion birr. A major project in partnership with fintech firms has provided 14 billion birr in fertilizer financing, benefiting nearly half a million farmers in the Oromia region. “This gives me great hope that we can scale up to finance millions, not just thousands,” Abie stated.Currently, MSMEs remain under-served, with only about 9,000 borrowers. However, the bank sees substantial growth potential in this sector. Non-interest banking products have also expanded significantly, with 7.1 million savings accounts and deposits totaling 180 billion birr, alongside 71 billion birr in loans issued.Abie stressed the importance of financial literacy to overcome misconceptions that banks are not for the poor or small businesses. “Even small businesses don’t dare to come to the bank,” he noted. “We need to teach them how to manage their businesses and access banks.”To address these challenges, CBE plans to broaden its digital finance offerings through partnerships with fintech companies and telecom operators, while leveraging its mobile banking platform to serve salaried workers and eventually provide personal loans for housing, vehicles, and other needs.Specialized products are also being developed for farmers, including financing for irrigation equipment, solar energy installations, and biofuels.While optimizing resources by reducing branches in larger cities, CBE is expanding its presence in underserved rural areas, targeting over 270 districts currently lacking banking services.The World Bank’s $700 million Financial Sector Consolidation Project (FSSP) will support these reforms by strengthening state financial institutions like CBE and the Ethiopian Development Bank, modernizing regulations, and providing capital injections and technical assistance.

At the opening of the ID4Africa 2025 Summit in Addis Ababa, Dr. Joseph Atik, CEO of ID4Africa, issued a stark warning about the growing challenges posed by unilateralism and self-serving agendas from the northern hemisphere. He called on African nations to rapidly advance digital identity initiatives and strengthen internal capacities to navigate an increasingly complex global landscape.Addressing over 2,300 participants from more than 100 countries, including over 1,000 African government officials, Dr. Atik emphasized that the era of “business as usual” is over.

He described digital identity not merely as an innovation but as an urgent necessity, with the cost of inaction escalating exponentially.He urged African countries to adopt what he termed “digital primitive thinking,” a mindset focused on foundational digital identity infrastructure that can withstand geopolitical shifts. The rise of unilateralism and selfish policies, particularly from northern countries, is exacerbating global tensions and erecting barriers where cooperation is most needed.Dr. Atik stressed that Africa must draw strength from within by mobilizing collective resources and charting its own future. He called for relations with international partners to be based on equality and mutual respect for sovereignty and priorities.Highlighting the continent’s financial constraints, he underscored the importance of digital identity projects demonstrating clear returns on investment (ROI) from inception. To avoid worsening national debts, he advocated for transparent public-private partnerships and alternative funding models, encouraging economists to contribute data and research to support these efforts.

The summit spotlighted a critical risk to Sustainable Development Goal (SDG) 16.9, which aims for universal birth registration and legal identity by 2030. Citing UNICEF forecasts, Dr. Atik warned that without bold and swift action, Africa may miss this target for generations, potentially until 2060.He stressed that birth registration must serve as the foundation not only for legal identity but also for credible digital identity systems that empower individuals and protect their rights in the digital age.While acknowledging the potential of artificial intelligence (AI) to add trillions to the global economy, Dr. Atik cautioned that AI could deepen Africa’s digital divide if not managed carefully. He called for forward-looking policies and coordinated investments in local data infrastructure and regional cooperation to ensure equitable benefits.Cybersecurity was highlighted as a growing threat, with state-sponsored cyberattacks posing risks to digital public infrastructure, including digital identity systems. Dr. Atik urged identity authorities to treat cybersecurity as a matter of national defense and to bolster their defenses accordingly.Yodahe Zemichael, Executive Director of Ethiopia’s National ID Program, proudly announced that Ethiopia’s Basic Identity system now serves 15 million citizens, a remarkable achievement in just three years. He attributed this success to strong political leadership, local technical expertise, and strategic partnerships.Ethiopia’s “Ethiopian Stack” digital infrastructure is laying the foundation for the country’s digital future, already enabling access to essential services and economic opportunities.Prime Minister Abiy Ahmed reaffirmed Ethiopia’s commitment to digital transformation, describing digital identity as a fundamental pillar that connects people to services, communities to institutions, and governments to citizens’ aspirations. He highlighted that nearly 50 million Ethiopians have been reached and emphasized the goal of universal coverage regardless of location, income, or background.The Prime Minister also stressed Ethiopia’s dedication to adapting innovative open-source platforms tailored to national needs and ensuring technological sovereignty.The ID4Africa 2025 Summit, the continent’s premier digital identity event, demonstrated that achieving universal digital identity in Africa requires not only technological innovation but also unprecedented political will, financial prudence, and a united front to confront the challenges posed by a rapidly shifting global order.

Ethiopia has taken a major leap forward in its clean energy ambitions as the Assela Wind Farm, a 100-megawatt (MW) facility, delivered its first power to the national grid this week. Located 150 kilometers south of Addis Ababa in the Oromia region, the wind farm is set to generate over 300 gigawatt-hours (GWh) of renewable electricity annually once all 29 turbines are fully operational by the end of 2025. This output will be enough to meet the electricity needs of more than 140,000 Ethiopian households.The Assela Wind Farm is owned by Ethiopian Electric Power (EEP) and stands as a flagship project for international cooperation. The project is fully financed by Denmark through a grant from Danida Sustainable Infrastructure Finance (DSIF) and a loan from Danske Bank. Siemens Gamesa, a Spanish-German company and global leader in wind energy, was responsible for construction.The project exemplifies Denmark’s commitment to building equal partnerships with Ethiopia and Africa, and it aligns with the European Union’s Global Gateway strategy, which mobilizes public and private investment for smart, clean, and secure energy connections worldwide.Ethiopia aims to achieve middle-income status by 2030 through a climate-resilient and low-carbon development path. Large-scale renewable energy projects like Assela are critical to reducing the country’s reliance on fossil fuels and traditional biomass, especially in rural areas. Wind energy also helps diversify Ethiopia’s electricity mix, which currently depends heavily on hydropower, thereby strengthening the nation’s climate resilience.With the addition of Assela’s clean power, Ethiopia is moving closer to universal access to modern, affordable energy and solidifying its role as a regional power hub in Eastern Africa.The launch was marked by a ceremony attended by high-level representatives from Ethiopia, Denmark, and the European Union. Semereta Sewasew, State Minister of Finance for Economic Cooperation said “the Assela Wind Farm represents a major step in Ethiopia’s shift toward a resilient and diversified energy system. Our collaboration with Denmark has been instrumental in integrating clean energy into the national grid and advancing our economic and climate objectives.” Sune Krogstrup, Ambassador of Denmark to Ethiopia said “drawing on Denmark’s extensive experience in wind energy and sustainable practices, we are proud to contribute to enhancing Ethiopia’s energy system. This collaboration not only advances Ethiopia’s renewable energy capacity but also strengthens the bonds between our nations.”