Ethiopia’s digital payment sector, still in its nascent stage, has reached a critical juncture where key industry stakeholders are calling for fundamental policy reforms to foster wider adoption and reduce costs for consumers.

In a recent high-level discussion involving banks, fintech firms, and payment networks, experts underscored that the current payment fee structure poses the biggest barrier to mass merchant acceptance of digital payments. They unanimously urged policymakers to adopt the international standard Merchant Discount Rate (MDR) model, which charges merchants a small fee while removing transaction costs from consumers. This approach is widely recognized globally for encouraging digital payment uptake.

Abay Sime, Director of Digital Customer Admissions at Bank of Abyssinia, emphasized that charging the consumer acts as a disincentive, driving customers away from digital solutions and undermining efforts to increase digital transactions. The existing ecosystem suffers from legacy issues where expensive technology rolled out primarily benefits banks, leading to a drive for high-revenue clients at the expense of broader merchant coverage.

This narrow focus leaves many small and medium-sized enterprises (SMEs) underserved, limiting their access to digital payments. Early infrastructure challenges, delayed transaction settlements, and operational inefficiencies have further impeded successful deployment at scale.

The rise of mobile person-to-person (P2P) money transfers, accelerated by COVID-19 cash withdrawal restrictions, has driven consumers and merchants toward fee-free alternatives, entrenching this informal habit. Tensaye Desalegn, CEO of Santim Pay, described Ethiopia’s mobile payment market as unique, driven largely by remittance flows rather than traditional merchant transactions—making transformation especially complex.

Experts agree that overcoming entrenched P2P usage requires a multidisciplinary approach, involving collaboration across fintech, banking, telecommunications, and regulators, alongside merchant education and introduction of value-added services. The aim is to build a robust, customer-friendly digital payment ecosystem.

The National Bank of Ethiopia (NBE) has been instrumental in laying foundational reforms, including the introduction of Payment System Operator and Payment Instrument Issuer licenses in 2020. However, industry voices call for greater collaboration and ongoing merchant training to address high employee turnover and facilitate platform adoption.

Rediet Tsigeberhan, CEO of ARIFPAY, suggested the next frontier in digital payments should extend beyond basic transactions, integrating ancillary services such as stock management, enterprise resource planning, microcredit, and insurance—elevating merchant value propositions.

Currently, Ethiopia has between 40,000 and 50,000 active point-of-sale (POS) terminals, starkly fewer than Nigeria’s 6 million or Kenya’s substantial banking sector deployment. The high cost of POS devices remains a barrier for SMEs.

In this context, Visa’s partnership with Santim Pay, announced at Visa Connect Ethiopia 2025, aims to address Ethiopia’s structural challenges by deploying over 20,000 new POS terminals within a year. This expansion is seen as a vital step to increase payment acceptance points and enable more inclusive digital economic growth. Market projections expect a fivefold growth in digital payments within the next two to three years fueled by regulatory support and enhanced competition.

Ethiopia has made notable policy advances to support its green transformation, including the National Circular Economy Roadmap, Plastic Waste Strategy, and Solid Waste Management Proclamation. However, the implementation of these frameworks faces major hurdles that threaten the country’s environmental and economic ambitions.

Senior officials, development partners, and social entrepreneurs recently convened to discuss challenges including regulatory inconsistencies, bureaucratic fragmentation, and funding shortages. While the roadmap offers a strategic framework for achieving sustainable development and economic transformation, uniform implementation across government agencies remains elusive.

Sisay Sintata, Policy Researcher at the Policy Studies Institute, noted that circular economy principles must be integrated across line ministries—spanning industry, labor, skills development, and urban planning—to embed sustainability holistically in national development plans.

Mekdim Gulelat, Country Director of Reach for Change, emphasized the damaging impact of inconsistent and conflicting policies. “The perception and enforcement of circular economy policies vary widely among government offices,” he said. “This inefficiency creates burdensome bureaucracy that stunts the growth of emerging circular businesses instead of supporting their expansion.”

Financial challenges add to the difficulties faced by small- and medium-sized enterprises (SMEs) striving to convert waste streams into economic opportunities. The Ethiopian financial sector is still immature in its capacity to back circular economy startups, which often lack traditional collateral or bankable assets. This limits access to loans and investment. Compounding this is a persistent societal mindset that fails to valorize waste, compelling entrepreneurs to price their sustainable products cheaply and undermining market viability.

On a positive note, Norwegian Church Aid (NCA) is spearheading efforts to legitimize and empower informal waste collectors through its “waste for value” model. Tsegazeab Zegeye, NCA Regional Thematic Advisor, explained how this initiative transforms informal workers into recognized entrepreneurs, providing capacity-building, legal registration, and connections to formal recycling companies. This model offers scalable employment opportunities and strengthens the circular economy’s grassroots.

The workshop organized by the Ethiopia Circular Economy Hotspot underlined the foundational role of a circular ecosystem, encompassing waste reduction, reuse, and proper disposal. Lelise Neme, Director General at the Environmental Protection Authority (EPA), stressed that “circular economics is critical for building a sustainable and inclusive economy.” Ethiopia’s national circular economy strategy and waste management laws aim to ensure resource sustainability and environmental stewardship for future generations.

Despite policy progress, without coordinated regulatory action, financial innovation, and heightened public awareness, Ethiopia’s circular economy ambitions risk falling short. A multi-stakeholder approach integrating government, private sector, civil society, and international partners is essential to overcome obstacles and fully unlock the environmental, social, and economic benefits of a circular model.

The International Air Transport Association (IATA) released fresh data for August 2025, highlighting continued resilience and expansion in both global air cargo and passenger markets. Africa notably led air cargo growth among all regions, while passenger travel hit new record highs.

According to IATA’s cargo market analysis, global air cargo demand, measured in cargo tonne-kilometers (CTK), rose 4.1% year-on-year in August, marking the sixth consecutive monthly increase. African airlines drove this growth with an 11.0% increase in cargo demand, the strongest rise globally. Capacity on the continent also expanded by 12.3%, signaling strengthened logistics capabilities and growing trade flows. This surge supports vital sectors like agriculture, pharmaceuticals, and manufacturing, reinforcing Africa’s growing role in global supply chains.

Meanwhile, total global air passenger demand, measured in revenue passenger kilometers (RPK), increased 4.6% year-on-year in August. Total capacity expanded 4.5%, with a record-high load factor of 86.0%, indicating fuller flights and operational efficiency. International passenger traffic was the primary growth driver, rising 6.6%, while domestic travel grew 1.5%.

Africa registered a notable 8.9% increase in passenger demand and a 6.6% rise in capacity, with an improved load factor of 80.2%, highlighting a recovery in regional air travel fueled by economic activities and tourism.

IATA Director General Willie Walsh commented on the data: “Despite economic uncertainties and geopolitical tensions, global air travel and freight volumes continue to grow robustly. Airlines are responding by maximizing efficiency and planning increased capacity, reflecting strong market demand.”

The evolving trade patterns, tariff fluctuations, and supply chain adaptations have particularly benefited air cargo trade lanes linking Africa with Asia, Europe, and the Middle East, which have seen consecutive months of growth. The Africa-Asia corridor reported an 8.4% rise in air freight volumes, underscoring deepening commercial ties and expanding market opportunities.

Lower jet fuel prices — down 6.4% from last year — sustained affordability for air cargo operations globally, while manufacturing sector optimism in August added to positive market sentiment, despite persistent caution around export orders.

Overall, the August 2025 data from IATA highlights how air transport remains a crucial pillar supporting economic growth and integration in Africa and worldwide. Investments in aviation infrastructure and continued market liberalization stand to further enhance the continent’s connectivity and participation in global commerce.

As airlines prepare for the upcoming travel seasons with increased capacity, vigilance regarding evolving market dynamics and supply chain resilience will be key to sustaining this positive trajectory in both passenger and cargo sectors.

A comprehensive new study has revealed a troubling state of low job motivation among health professionals in Ethiopia, a situation that poses significant risks to healthcare quality and patient safety. The meta-analysis, which combined data from nearly 4,000 health workers across the country, found that only 44% considered themselves well motivated to perform their duties.

Key factors undermining motivation include low wages, inadequate benefits, and challenging working environments, common in many low-income settings like Ethiopia. Experts warn that this lack of motivation contributes directly to decreased efficiency, poor service quality, increased absenteeism, and high staff turnover within health facilities nationwide.

The study highlights dangerous behaviors that may arise from demotivated workers, such as neglecting patient care and irregular financial dealings, actions that erode public trust in the health system.

Job satisfaction emerged as the strongest predictor of motivation, with satisfied health workers nearly four times more likely to be motivated. Those working in better-resourced facilities were also roughly three times as motivated. Access to training and professional development significantly boosted motivation levels, with those who received training 2.6 times more likely to feel motivated.

These findings underscore systemic vulnerabilities and call for urgent reforms focused on improving working conditions, remuneration, and capacity building. Enhancing health worker motivation is essential not only for maintaining high standards of patient care but also for safeguarding public confidence in Ethiopia’s healthcare system going forward.