I recall a particularly frustrating experience from a couple of years ago, one that likely resonates with many of us. I visited a local retailer to buy some essential items—cooking oil and rice. The price quoted was shockingly high, significantly more than the standard rate just a week earlier. When I cautiously inquired about the increase, the shop owner responded with a dismissive shrug. “That is the price now,” he said. “Everyone is selling at this rate. You can take it or leave it.” His indifferent tone felt like a slap in the face, a moment that has become all too familiar for many.

In that moment, I wasn’t just a customer; I felt like a captive. My choices were to pay his inflated price or return home without dinner ingredients for my family. This situation is not merely about one rude shopkeeper; it reflects a much larger economic issue. This is precisely why the government’s recent decision to open the wholesale and retail sector to foreign competition is not just a policy shift—it offers a potential lifeline for every Ethiopian struggling with the cost of living.

For decades, Ethiopia’s wholesale and retail sectors have been reserved for local businesses. While the intention to nurture domestic enterprises was commendable, the lack of real competition has fostered complacency and unethical practices. We have all witnessed the symptoms: sudden, unexplained price hikes on essentials, the mysterious disappearance of items only to reappear at a premium, and a general attitude of exploitation due to the absence of alternatives. These are not isolated incidents; they form a consistent pattern of market failure.

Such practices are a primary driver of the cost-of-living crisis. When a limited number of players control supply and pricing without fear of competition, the result is inevitably inflationary. Monopolies and protected oligopolies serve the interests of sellers, not consumers. While local businesses cite challenges like access to finance, these difficulties cannot justify practices that harm the public and distort the economy. Decades of protection have done little to encourage these businesses toward the efficiency and innovation that characterize mature economies. This short-term mindset has backfired, limiting their potential and damaging their reputation.

The government’s decision to open these sectors is a pragmatic intervention rather than an ideological shift. Introducing foreign competition is the only proven remedy for market abuse. Imagine being able to leave an indifferent shopkeeper and take my business to a competitor known for consistent, transparent pricing. That simple act of choice is transformative. It compels every market player to elevate their standards, competing on price, quality, and service. The consumer, no longer held hostage, becomes a king whose loyalty must be earned.

Importantly, this move does more than enhance our retail sector; it sends a strong, clear message to the global investment community. Opening a long-protected sector is a tangible indication that Ethiopia is genuinely committed to economic modernization and market-led principles. For foreign investors, actions speak louder than words. This policy shift is a decisive step that fosters immense confidence, demonstrating the government’s willingness to implement challenging structural reforms to create a more open and predictable business environment. This confidence is the foundation for large-scale, long-term investments. When investors observe a nation transitioning from a protected, opaque market to a competitive, transparent one, they perceive lower risks and a stronger commitment to the rules of global commerce. The initial wave of investment in retail will serve as proof of concept, encouraging further investments in manufacturing, logistics, and technology, thus creating a virtuous cycle of capital inflow that benefits the entire economy.

The advantages extend beyond price tags and investor sentiment. Foreign entrants introduce sophisticated, technology-driven supply chains that significantly reduce waste, spoilage, and costs. This efficiency dismantles the bottlenecks often used to justify hoarding and price gouging. They also foster a culture of long-term investment, creating new jobs and providing valuable training that enhances human capital within the country. Their presence raises standards across the entire sector.

However, a strong counterargument persists: that this move equates to selling our economic sovereignty, replacing local exploitation with foreign domination. This fear, rooted in post-colonial suspicion, is powerful but ultimately misplaced. I contend that the true betrayal of sovereignty lies in allowing the current, dysfunctional system to persist.

Economic sovereignty is not solely about ownership; it involves control and the distribution of benefits. Who truly gains from the status quo? A narrow segment of local business owners. Who bears the cost? The vast majority of the Ethiopian public. By introducing competition, the government reasserts its sovereignty on behalf of its people, restructuring the market to serve the public good, which is the highest expression of national interest.

Moreover, the notion of foreign “domination” misunderstands modern retail investment. These companies are not colonial enterprises; to succeed, they must integrate into the Ethiopian economy. They will source products locally, employ thousands of Ethiopians, pay taxes, and invest in physical infrastructure. This is a partnership governed by Ethiopian laws, not an act of domination.

The goal is not to replace local businesses but to stimulate their evolution. The future should be a blended, dynamic ecosystem. The presence of efficient foreign players establishes a high standard of performance, demonstrating to local entrepreneurs what is achievable. Ambitious Ethiopian businesses will learn, adapt, and innovate. This is how local businesses transition from being protected infants into robust, competitive entities.

The opening of the sector represents a bold act of confidence, reflecting faith in the Ethiopian consumer and the potential of our entrepreneurs to rise to new challenges. This decision reclaims economic sovereignty for the benefit of all. While it may be disruptive, the appropriate response is not to retreat into fear but to adapt and improve. Ensuring the public’s livelihood and attracting global capital to shape our future is the highest form of sovereignty.

Befikadu Eba is the Founder and Managing Director of Erudite Africa Investments. A former banker, he has a strong interest in economics, private sector development, and financial inclusion. He can be reached at befikadu.eba@eruditeafrica.com.

I grew up in the charming town of Merti-Methera, Ethiopia, established by the Dutch agricultural conglomerate HVA, Handelsvereniging Amsterdam. This Dutch firm has a long history of large-scale farming in Ethiopia’s Rift Valley, particularly in sugar cane cultivation and processing. Designed by Dutch architects, the town features a unique European flair, with exquisite gardens filled with vibrant blooms, colorful trees, and ornamental plants celebrated for their breathtaking flowers and enchanting fragrances. The Climbing Lily, along with geraniums and petunias, serves as a prominent floral emblem of Methera, known for its striking beauty and distinctive tropical growth habit. This lush flora has enriched the region’s landscapes and gardens, significantly enhancing the well-being and quality of life for Methera’s residents.

Despite efforts to restore Merti’s former glory, the once-beautiful city has faded into history. An influx of people has overwhelmed the city’s resources, infrastructure, and services, compounded by a lack of care and maintenance. As a result, the city has lost much of its vitality and charm.

Growing up in this delightful small town and continuing my work in Ethiopia’s floriculture sector brings me a profound sense of tranquility. Surrounded by lush vegetation and vibrant flowers, I find a heightened sense of faith and peace in this verdant yet challenging environment, which serves as a sanctuary from stress.

Throughout my career, I have had the privilege of traveling extensively across Europe, Asia, Africa, and beyond. During these journeys, I noticed intriguing parallels between my hometown of Methera and various European towns in terms of landscaping and the community’s efforts to care for, share, and celebrate flowers and green spaces. Upon returning to my hometown, I was struck by the harmonious blend of urban infrastructure and ornamental flora. The abundance of flower shops and markets reflects a modern cultural trend that not only elevates community spirit but also fosters connections, alleviates stress, and enriches the overall environment.

Recently, I had a thought: Ethiopia stands out as a prominent supplier of flowers to Europe and the Middle East, offering a remarkable variety of exquisite blooms—from roses to summer flowers, ornamental cuttings, and potted plants. With an impressive average daily export of 274 tons, the nation’s annual flower production reaches 100,000 tons. Many believe that this flourishing flower industry fosters a sense of value and connection to nature among urban residents in Europe, ultimately enhancing their self-esteem. If this is indeed the case, why shouldn’t the people of Addis Ababa enjoy the same enriching benefits? Certainly, there exists a delicate balance between export demands and domestic consumption. Critics argue that this tension arises as the government prioritizes increasing export volumes while navigating the needs of the home market.

On the other hand, the middle class in the main towns of Ethiopia is expanding at an extraordinary pace, driving increased demand and purchasing power that is reshaping the country’s business and commercial landscape. The capital city, Addis Ababa, is home to 134 embassies, 28 UN agency offices, and 2,953 civil society organizations. This trend, combined with the presence of diverse cultural institutions, is expected to create substantial demand for flowers to beautify office spaces, meeting halls, and for occasions such as birthdays, anniversaries, weddings, graduations, and holidays like New Year, Christmas, Easter, Ramadan, and Valentine’s Day.

According to a survey by the Addis Ababa City Administration Revenue Bureau, there are approximately 903 flower retail shops in Addis Ababa, mainly located in Bole, Yeka Kirkos, Kolefa, Akaki-Kaliti, Nefas Silk, Addis Ketema, and Lideta. Most flowers sold in these shops are sourced from the flower-growing clusters in Ethiopia’s highland and midland regions. Unfortunately, these flowers often do not meet export standards and are known for their poor quality, including flaccid stems, faded colors, weak leaves, and poorly formed blooms. The average selling price of flowers in Addis Ababa varies significantly based on location, flower type, color, and season. A recent survey conducted in September 2025 found that the average price for a mixed flower bouquet ranges from 59 USD (8,000 Birr) to 259 USD (35,000 Birr).

While flower shops hold significant importance, the current traditional and outdated flower retail environment does not align with the progress of the innovative smart city infrastructure. The number of flower gift shops and florists in the city remains relatively low, and their facilities are often inadequate. Additionally, logistics providers and flower gift shops frequently lack the necessary cold chain facilities for transporting and temporarily storing flowers. Despite digital advancements, critics argue that the absence of aesthetic features in flower shops makes Addis Ababa feel incomplete or less inviting, highlighting the need to balance modernity with elements that enhance the quality of life and community spirit. The significance of both formal and informal education in the floristry industry has largely been overlooked, with a notable lack of training in areas such as flower arrangement, design techniques, personal style development, the art of combining flowers and plants, nature-inspired aesthetics, and floral shaping. Typically, no courses are available through colleges, public or private post-secondary vocational schools, or professional associations.

Currently, the corridor development project in Ethiopia is transforming Addis Ababa and other cities into vital commercial hubs, generating new economic opportunities. This initiative has led to improved infrastructure, expanded recreational areas, enhanced connectivity, increased business competitiveness, and a better overall quality of life. Many now believe that Addis Ababa is evolving into a vibrant and dynamic global city. This transformation is characterized by the establishment of smart infrastructure aimed at promoting a strong economy and positioning the city as a tourism hub, reflecting a modern vision inspired by other major cities worldwide.

In this context, the flower industry is at a crucial point in its growth. The emergence of retail flower shops is expected to significantly enhance the city’s aesthetic evolution. In line with this progress, the Ethiopian Investment Board introduced Directive 1001/2024 in March 2024, allowing engagement in business sectors that were previously off-limits. Under this directive, foreign investors can now participate in trading activities, including wholesale and retail flower businesses.

The entry of investors into the flower retail and wholesale sector is believed to bring significant changes to the aesthetic value of Addis Ababa and improve the quality of urban life. Additionally, some foreign investors in Ethiopia are attempting to establish a florist university and college in the main city. The college aims to offer courses in floral design, floral arrangement training, plant care, and the business skills necessary for running a florist shop.

Addis Ababa has recently garnered significant attention, both domestically and internationally, with over a dozen visitors exploring development and business opportunities. This increased interest can be attributed to a growing focus on commercial activities. The city has become a testing ground for various initiatives, such as hanging flower decorations, hillside forest preservation, sidewalk flower planting, and river cleaning efforts.

Hanging flower decorations along Addis Ababa’s main roads, including Bole, Kasanchis, and Megenagn, are becoming a new phenomenon. Proponents of smart cities argue that one of the key benefits of these decorations in urban centers is their ability to transform gray, monotonous spaces into more attractive environments. Concrete buildings, sidewalks, and roads often feel cold and impersonal, but the addition of colorful flowers has completely changed the city’s atmosphere, making it feel more pleasant. Furthermore, incorporating ornamental plants into city centers positively impacts residents’ health. Urban greenery, such as hanging floral decorations, potted plants, and flower meadows, enhances both the physical and mental well-being of residents, thereby improving the overall quality of life.

In the future, the symbolic significance of flowers will continue to resonate within Addis Ababa’s cultural landscape. Floral patterns inspired by hibiscus and bougainvillea are expected to flourish, embodying the beauty and resilience of the nation. These blossoms will become increasingly central to the branding of Ethiopian tourism, with their vibrant hues capturing the allure and tropical essence of the country.

Mekonnen Solomon is Horticulture Export Coordinator at Ministry of Ethiopian Agriculture

Picture this: no passport to dig out, no boarding pass to scan. You walk into the airport, look into a camera, and head straight
This isn’t a futuristic fantasy. It’s the vision shaping the next generation of air travel. And while parts of it are already in motion, one big hurdle remains: data.
The Digital Passport Is Ready, Just Not Fully Ready for Take-off
At the heart of this transformation is the Digital Travel Credential (DTC), developed by the International Civil Aviation Organization (ICAO). The DTC is a digital replica of your passport, securely stored and ready to be shared at the tap of a screen.
But here’s the catch: the current version of the DTC packages all your passport information – name, number, nationality, date of birth – into one file. That works well for border agencies, who need the full picture. But airlines? They typically only require a few basic details to complete check-in and security screening.
Sharing the entire passport file just to access your name and date of birth isn’t just inefficient, it’s a legal problem in many jurisdictions. Under data protection laws like the EU’s GDPR, collecting more personal information than necessary is a breach.
So, while the technology exists to streamline your journey, the way it’s set up is slowing progress down.
The Solution: Give Only What’s Needed
The fix lies in a principle known as data minimization: sharing only what’s essential, no more.
That means breaking your digital passport into encrypted “data envelopes”. Each envelope contains a single piece of information such as just your name, date of birth etc. When an airline needs to verify your age, they request that envelope and nothing else. The rest of your data stays sealed unless you explicitly consent to share it.
This gives travelers control. Participation is voluntary and transparent. Refuse consent, and you fall back to the manual process we use today. Say yes, and your airport journey becomes seamless.
There are two possible paths forward:
• ICAO could update the DTC standard to allow selective data release.
• Or, offer technical guidance to help implement data minimization within the existing framework.
Either route would unlock huge efficiencies without compromising on privacy. By ICAO adapting the DTC or providing guidance so it can be implemented in a way that allows secure, selective data sharing, fully seamless travel will be closer to reality.
The Industry Isn’t Sitting Still
While global standards take time to update, the aviation industry is already moving forward. Airlines, airports, and governments are piloting digital identity programs (using different forms of digital ID) and biometric journeys built around the principles of consent and minimal data use.
IATA’s One ID framework is central to this momentum. One ID defines how a digital identity like the DTC can be used in practice: verifying passengers, securing consent, and enabling a paperless journey from curb to gate.
Progress is accelerating:
• IATA has conducted successful trials proving that digital-first travel experiences are feasible today.
• Technology providers are developing digital wallets that integrate seamlessly with One ID.
• A transatlantic pilot is in the works, with countries exploring temporary agreements to enable cross-border trials of digital passports.
Governments are taking notice, too. The European Commission, for instance, proposed new rules in late 2024 to support digital identity for cross-border travel across the EU. Meanwhile, the OECD is mapping national digital ID frameworks to help guide global policy and interoperability efforts.
From Vision to Reality
Digital travel isn’t just an ambition, it’s already happening.
Take India’s Digi Yatra program. It’s live in over 20 airports and lets domestic passengers fly using only facial recognition linked to a verified digital ID. The entire journey, from terminal entry to boarding, is contactless and consent-based.
Globally, biometric systems are operational in more than 70 airports, streamlining passenger flows and enhancing security. And to help airlines navigate this new landscape, IATA has created a Contactless Travel Directory, which maps out where these services are available.
According to IATA’s 2024 Global Passenger Survey:
• Nearly half of passengers have already used biometric ID at the airport.
• Of those, 84% were satisfied with the experience.
• And 73% say they’d prefer biometrics over traditional passports and boarding passes in future.
The demand is clear. The infrastructure is emerging. And the industry is building toward scale.
Boarding Soon
So while your face and phone aren’t quite enough to get you through the airport yet, the trajectory is set. The technical runway is ready. All that’s needed now is regulatory clearance – the DTC to support data minimization. The era of digital-by-default travel is approaching final call. And this time, you might not need your passport to board.
Louise Cairney is IATA Head of Customer Experience and Facilitation