Wednesday, May 6, 2026
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Flipper International parents oppose 60% fee hike tied to Lancha campus rescue plan

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Parents at Flipper International School are pushing back against a proposed 60% tuition increase, accusing the administration of coercive decision-making and unfairly linking the fee hike to efforts to keep the school’s Lancha campus open.

The dispute intensified during a meeting held late last weekend, when guardians from the Summit campus and other branches said they were presented with a choice they described as “take it or leave it”: accept the increase or face the immediate closure of the Lancha, or Beklo Bet, campus. Parents said the process was legally flawed, emotionally coercive and designed to force approval through pressure rather than consultation.

According to several parents, the proposed increase is not limited to the headline 60%. They said it is being combined with a separate “harmonization” adjustment meant to narrow gaps between tuition levels across grades, pushing some families’ total costs far higher. One Summit campus parent told Capital that some households could face total increases of more than 120%, with annual fees rising from around 60,000 Birr to more than 130,000 Birr.

Parents said the school offered three options at the meeting: “harmonization only,” “harmonization plus 40%,” and “harmonization plus 60%.” They said the last option was strongly favored by the administration, even though many families viewed it as unaffordable and unjustified.

“We are not talking about a few thousand Birr,” one father said. He accused the school of presenting the rise as necessary for teacher salaries and facility improvements, while failing to deliver on earlier promises. Parents cited an earlier pledge to spend $1 million on a computer lab, saying they have yet to see the promised equipment.

The school’s move has also raised procedural concerns. Under Ethiopia’s education directives, schools are required to notify parents about tuition changes three months before the end of the academic year, submit detailed justifications, secure the agreement of the Parent-Teacher Committee and obtain support from at least 51% of parents before approaching the relevant authority. Tuition is also expected to be payable in at least three consecutive installments.

Parents say those requirements were not followed. They complained that the administration declared the majority had agreed, despite nearly 200 parents walking out in protest. They also said Lancha campus parents were effectively forced to approve the hike out of fear that their campus would otherwise be shut down, and that the resulting decision is now being imposed on families at other campuses.

The financial impact, parents said, is severe. Once the proposed increase is combined with existing harmonization charges, some families could see tuition rise by 110% to 120%. Parents argue that asking for such increases while previous commitments remain unfulfilled has destroyed trust between families and management.

Summit campus parents have reportedly refused to sign the agreement and have formally raised the matter with the Education and Training Authority. They said the authority has assured them it will intervene if the school is found to have acted outside the rules. Some parents are also preparing to take the matter to court if the school does not enter into fair negotiations and provide quality assurances.

In written notices sent to parents, the school indicated it intends to proceed with the new fee structure. Capital submitted questions to school management, but no response was received by the time of publication.

Ethiopia’s payment gateways are growing, but merchant use still lags

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Ethiopia’s digital payments ecosystem has made notable progress, but a new survey shows that payment gateways and merchant payment channels are still constrained by weak infrastructure, limited business-account use and a heavy reliance on personal accounts rather than merchant-focused payment tools. The findings suggest that the problem is no longer simply whether digital payments exist, but whether they work well enough for merchants to use them at scale.

The April 2026 Digital Merchant Payments Ecosystem Observatory: Ethiopia Wave 1 Flagship Report says 58.8 percent of micro-enterprises accept digital payments, while 41.2 percent remain cash-only. But the report also finds that the sector is sharply divided between urban and rural areas, with adoption far higher in cities than in the countryside, where connectivity and infrastructure remain major barriers.

One of the biggest problems is that Ethiopia’s merchant payments are still flowing through personal accounts instead of business accounts. The report says fewer than 1 percent of mobile banking or mobile money users rely on merchant or business accounts as their primary payment-receiving channel, leaving transaction data largely invisible to credit providers and regulators.

That gap is important because the country’s merchant economy is already generating significant digital activity. The report says 44.5 percent of micro-enterprises would benefit from additional credit or capital, but only 10.8 percent borrowed in the previous six months, with most relying on family and friends rather than formal digital finance.

The study also points to onboarding bottlenecks. For mobile banking, 92.7 percent of merchants signed up by visiting a bank branch or agent office, while mobile money users also relied heavily on in-person onboarding. The report says that model is a barrier for micro-enterprises that operate six or seven days a week and cannot easily leave their businesses to open an account.

According to the survey, merchant awareness of digital payment services is still driven mainly by bank and agent representatives, while social media plays only a small role. That suggests payment gateways are not yet benefiting from the kind of digital discovery and merchant promotion that could broaden adoption more quickly.

The report says Ethiopia’s recent payments reforms, including the National Digital Payments Strategy Phase Two, the interoperable QR mandate and EthioPay-IPS, provide a stronger policy foundation. But it adds that these tools have not yet reached enough merchants to transform usage patterns, meaning the country is still in the early stages of building a truly merchant-driven digital payment market.

The findings point to a clear challenge for Ethiopia’s payment gateway providers: adoption alone is not enough. Unless merchants are onboarded more easily, business accounts become more useful and infrastructure improves outside major cities, digital payments may remain widespread in name but underused in practice.

InsurTech challengers threaten to outpace Ethiopia’s slow-moving insurers

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Ethiopia’s insurance industry is facing growing pressure from digital newcomers as local insurers struggle with low levels of digitalization, outdated processes and weak customer experience, according to a new study presented by industry leaders.

The research warns that unless Ethiopian insurers move quickly to modernize their systems, they risk losing customers and market relevance to InsurTech firms and other non-traditional entrants that are better equipped to deliver mobile-based services, faster claims handling and more convenient policy management.

The study, titled Digitalization and Customer Loyalty in the Ethiopian Insurance Industry: Analysis of the Antecedents and Moderating Factors, was presented by Yared Mola, CEO of Nyala Insurance and president of the Association of Ethiopian Insurers, at a consultative forum on April 23, 2026.

Yared said the domestic market remains dependent on manual, fragmented and paper-based procedures while the global insurance sector is increasingly using artificial intelligence, blockchain and automated systems to underwrite policies, process claims and interact with customers. He warned that the gap is no longer merely about efficiency, but about survival.

“Due to the local insurance sector’s slow pace of change, it faces a high risk of losing customers, losing market relevance, and failing to ensure long-term sustainability,” he said, according to the study findings.

The report identifies leadership hesitation as one of the biggest obstacles to reform. Many insurers, it says, still lack a clear digital strategy, while some executives continue to view technology spending as a cost rather than a long-term investment. The study also says regulation has not kept pace with the market, leaving insurers with weak pressure to embed digital transformation into core business plans.

That delay is creating space for InsurTech firms to move in, the study says. These new players can reach customers more easily through mobile platforms and digital channels, while traditional insurers remain tied to paperwork and slower internal systems.

The findings also suggest that customer expectations are changing faster than the industry. Consumers who have already adapted to mobile banking now expect similar convenience from insurance companies, including mobile apps, online payments and instant SMS updates. The study warns that failure to meet these expectations could accelerate customer loss.

While poor internet coverage outside Addis Ababa and the high cost of broadband remain challenges, the report argues that companies should still act within their current capacity rather than waiting for ideal conditions. It says the lack of centralized data systems is also preventing insurers from using predictive analytics, which are increasingly essential for pricing, risk assessment and claims management.

The study was presented at a consultative forum organized by the Association of Ethiopian Insurers, where senior executives and industry professionals discussed the sector’s digital future. The report noted that 45 percent of the professionals surveyed were between the ages of 41 and 50, while 73.7 percent were men and 26.3 percent women, suggesting an experienced but still unevenly digitized workforce.

The report concludes that survival will depend on stronger board-level commitment, larger digital budgets and closer collaboration with technology firms rather than trying to build all systems in-house. It says the sector must move faster if it is to remain competitive in a market where digital disruption is no longer a future threat, but a present reality.

Over 100 firms join Addis Chamber trade fair

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More than 100 local and international companies have gathered at the Addis Ababa Exhibition Center for the 27th Addis Chamber International Trade Fair, which opened on Saturday under the theme “Sustainable Businesses, Competitive Ethiopia.”

The three-day fair is organized by the Addis Ababa Chamber of Commerce and Sectoral Associations and is designed to connect Ethiopian producers with global markets through business-to-business networking, exhibitions and policy discussions. Companies from manufacturing, agro-processing, technology and other sectors are showcasing products and services aimed at expanding trade opportunities.

At the opening ceremony, Addis Ababa Deputy Mayor Jantirar Abay described the capital as a city of opportunity and transformation. He said the city administration sees the private sector as a key driver of Ethiopia’s economic progress and pledged continued support for corridor development and infrastructure projects intended to improve the business climate.

Chamber leaders said the fair is more than a marketplace, describing it as a platform for innovation, investment and sustainable partnership. Addis Chamber President Zehara Mohammed said businesses must embrace technology and environmentally conscious practices if they are to remain competitive in a changing market.

The fair has attracted ambassadors, government officials and business leaders from several countries, with a focus on building new commercial ties. Organizers say the event is aimed at helping Ethiopian companies expand their reach while also giving foreign firms a chance to explore opportunities in the local market.

Alongside the exhibition booths, the programme includes business symposiums on market entry and trade policy, as well as networking sessions where startups can meet investors and established firms. The event will end with a closing ceremony that will recognize outstanding exhibitors with “Best Standing” awards.

With thousands of visitors expected over the three-day event, the 27th ACITF is being seen as another sign of Addis Ababa’s growing role as a commercial hub in East Africa. For Ethiopian businesses, the fair offers a chance to adapt to shifting macroeconomic conditions while seeking new links to international trade routes.