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Real Estate Association aims to restore trust through self-regulation

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The newly established Ethiopian Real Estate Developers Association (EREDA) has announced plans to implement self-regulation for its members to enhance the sector’s damaged reputation.

Formed just weeks ago, the association highlighted the long-standing absence of a regulatory body in an industry that has been active for nearly three decades.

According to EREDA’s founders, who include prominent figures from Ethiopia’s construction sector, the real estate market has become highly risky, losing public trust as developers frequently fail to deliver homes on time or as promised.

To address these challenges, the association intends to collaborate closely with the government to facilitate sector development and attract investment, both crucial for national economic growth.

EREDA will also mediate disputes between developers and buyers to resolve conflicts amicably.

The association recently announced plans to introduce ethical guidelines and regulations to govern the sector, recognizing that unethical practices have negatively impacted many lives.

One of EREDA’s primary objectives is to rehabilitate the industry’s image and promote smoother growth.

“We will implement self-regulation to protect the sector’s reputation while establishing a mechanism to arbitrate disputes between developers and buyers,” stated the founders.

However, some experts have expressed concerns about the association’s authority, questioning whether it will possess sufficient power to enforce compliance and penalize developers who exploit buyers.

During EREDA’s official launch at the Sheraton Addis on June 14, Addis Ababa University Urban Development Professor Thomas Girmay presented findings indicating that nearly half of homebuyers are dissatisfied with properties received from developers. Common complaints include poor construction quality, price increases, delays, and other issues.

“Public perception of real estate developers is currently negative, and the sector’s image needs correction,” he noted.

Girmay, along with other experts and EREDA’s founders, agreed that addressing key challenges—such as securing sustainable financing, lowering interest rates, improving land accessibility, and ensuring affordable construction materials—is essential for the sector’s growth.

Housing shortages remain a critical issue in Ethiopia’s urban areas. Despite government-led housing initiatives, the rapidly growing demand far outpaces supply, with private developers often providing unaffordable or limited solutions.

Sector experts assert that EREDA’s formation represents a significant effort to restore credibility and accountability in a sector vital to Ethiopia’s development.

Stakeholders push for minimum wage reform in floriculture, horticulture sectors

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Calls to establish a minimum wage for Ethiopia’s floriculture and horticulture industries are gaining momentum, following a high-level workshop organized by Fairtrade Africa (FTA) in Addis Ababa. The event brought together government officials, trade union leaders, and industry representatives to address wage challenges faced by workers in these vital export sectors.

The workshop is part of Fairtrade Africa’s “Donuts-Ethiopian Flowers Project,” which aims to improve the livelihoods and rights of workers on six Fairtrade-certified flower farms across the country. As Ethiopia’s floriculture and horticulture sectors continue to expand, concerns over fair compensation and sustainable working conditions have come to the forefront of national dialogue.

Experts at the workshop unanimously agreed that setting a minimum wage is a critical step toward improving the economic well-being of workers and ensuring the long-term sustainability of the industry. The forum provided a platform for sharing information, best practices, and strategies related to wage determination and living wage initiatives.

“By working together, we can address gaps in workers’ rights and ensure fair working conditions and wages for those in the flower and horticulture industries,” said Meselech Dejene, an expert from the Ministry of Labor and Skills.

Yohanes Abebe, adviser to the Ethiopian Horticulture Producer Exporters Association (EHPEA), reiterated the association’s commitment to protecting both workers’ and employers’ rights while attracting long-term investment. He acknowledged that despite Ethiopia’s strong potential in the sector, challenges remain in adopting modern technologies that could boost productivity and, ultimately, wages.

The EHPEA emphasized its goal of achieving sustainable industrial peace and ensuring that employers pay at least the minimum wage, with a broader vision of moving toward a living wage for all workers.

Fairtrade Africa underscored the importance of stakeholder collaboration for the future of the floriculture and horticulture sectors, stating, “This workshop is an important step not only for the growth of Ethiopia’s floral and horticulture sector but also for prioritizing the well-being of its employees.”

As a leading advocate for fair trade, Fairtrade Africa supports over one million farmers and workers across 33 countries, promoting systems where marginalized producers receive fair compensation and protection from exploitation.

The recent dialogue marks a significant step toward normalizing fair compensation practices in Ethiopia’s floriculture and horticulture sectors, laying the groundwork for a more equitable and sustainable industry that benefits both workers and employers.

Only 12 out of 104 crimes against EEU infrastructure resolved in Fiscal Year

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The Ethiopian Electricity Utility (EEU) is grappling with a surge in crimes targeting its infrastructure, with recent figures revealing a troubling lack of accountability. Of the 104 reported crimes against the utility’s electricity infrastructure in Addis Ababa and Sheger City during the 2024/25 fiscal year, only 12 cases have received legal rulings, according to data shared at a recent high-level consultation forum.

The forum, which brought together the EEU, the Federal Attorney General, the Federal Police, and senior leaders from security and judicial institutions, focused on developing strategies to safeguard the utility’s assets, combat energy theft, and ensure accountability for property-related crimes.

Gebeyehu Likasa, CEO Representative and Executive Officer for Electric Infrastructure Administration at EEU, highlighted the alarming rise in such crimes, noting that the trend is accelerating at an “exponential rate.” He stressed that these offenses not only undermine EEU’s ongoing efforts to expand reliable electricity access but also threaten public safety and impede national development.

“The growing number of crimes against our infrastructure poses a major obstacle to our mission and to the country’s progress,” Gebeyehu said. He called on security and judicial authorities to intensify their efforts in both preventing these crimes and ensuring that perpetrators are appropriately punished.

Abebe Tesfa, Executive Officer for Legal Services and Ethics at EEU, pointed out that both internal and external actors are involved in these criminal activities. He emphasized the need for coordinated action among stakeholders to curb the problem.

A representative from the EEU Legal Directorate identified delayed decisions on cases and inadequate penalties for offenders as key factors contributing to the persistence of these crimes. Reviewing recent data, he explained that in 2022/23, only 20 out of 96 reported offenses were resolved, while the current fiscal year saw just 12 out of 104 cases concluded.

Justice and security officials participating in the forum acknowledged the need for improved monitoring by the EEU to facilitate timely action on reported crimes. They also recommended that the utility invest in advanced technologies to better protect its infrastructure.

As the EEU continues its efforts to provide electricity to all corners of the country, the institution faces the dual challenge of expanding access while safeguarding its assets from criminal threats. Stakeholders agree that a more robust, coordinated response is urgently needed to address the growing wave of infrastructure-related crimes.

Addis hosts 7th Agrofood & PlastprintPck Expo showcasing regional food and plastic industry growth

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The 7th Agrofood & PlastprintPck Trade Fair was held from June 19 to 21, 2025, at the Millennium Hall in Addis Ababa. Marking a milestone, this year’s event featured the inaugural Food Show and Coffee Show, drawing 156 leading exhibitors from 16 countries to present tailored products and innovative solutions for the local market.

The event, organized by Fairtrade Messe in partnership with local firm Prana Events, highlighted the host nation’s expanding role as the largest food market in East and Central Africa. According to the Agricultural Transformation Agency (ATA), agriculture contributes 76% of the country’s annual exports and has maintained a robust 9% annual growth rate, reaching an estimated $36 billion in value.

With a population of approximately 130 million expected to grow to 200 million by 2050, demand for food and beverage products continues to rise steadily. The food and beverage sector accounts for the largest share of the country’s manufacturing industry, fueling increased demand for ingredients and processing technologies.

Trade data reveals that between 2021 and 2023, food imports ranged from $1.9 billion to $3.3 billion, while food exports reached $2.5 billion in 2023, underscoring growing integration into global food markets.

The plastics industry also featured prominently at the expo, reflecting rapid growth in plastic consumption—from 44 kilotons in 2007 to 281 kilotons in 2024, at an average annual growth rate of 11.5%. As the second-largest importer of plastic products in East and Central Africa, the country relies entirely on imports for its plastic raw materials, which increased from 43 kilotons in 2007 to 294 kilotons in 2024, growing 12% year-on-year.

Ethiopia leads the region in plastic technology investment, with imports valued at EUR 28 million in 2023—a 57% increase compared to 2022—demonstrating strong commitment to modernizing its plastics sector.

The 2025 Agrofood & PlastprintPck Expo brought together exhibitors from Austria, Brazil, China, Denmark, Djibouti, Germany, India, Italy, Jordan, Kenya, Poland, Saudi Arabia, South Africa, Turkey, and the United Arab Emirates. The diverse participation underscored the event’s role as a pivotal platform for networking, knowledge exchange, and business development in the food and plastics industries.