Ethiopia is 30th out of 34 regionally

By our staff reporter   

The rule of law has once again eroded in a majority of countries this year, according to the World Justice Project (WJP) Rule of Law Index 2023. 

This is the sixth consecutive Index marking global declines in the rule of law. This year alone, the rule of law declined in 59% of countries surveyed—including Ethiopia.  

Since 2016, rule of law has fallen in 78% of countries studied. The rule of law factor to decline most between 2016 and 2023 is Fundamental Rights—down in 77% of countries.  

Over the past seven years, Index scores for Constraints on Government Powers have fallen in 74% of countries—including Ethiopia. Around the world, legislatures, judiciaries, and civil society—including the media—have all lost ground on checking executive power, the Index shows. 

These and other authoritarian trends continued in 2023, but they are slowing, with fewer countries declining in 2022 and 2023 than in earlier years. 

Constraints on Government Powers fell in 56% of countries, compared to 58% in 2022 and 70% in 2021. Likewise, a smaller majority of countries saw overall rule of law declines in this year (59%) as compared to the last two (61% and 74%). 

A smaller majority of countries (56%) also experienced a decline in Fundamental Rights again this year, compared to 2022 (66%). 

On the other hand, declines in the functioning of justice systems are now expanding. 

Two thirds of countries (66%) saw their Index scores for Civil Justice fall this year, up from 61% of countries last year—including Ethiopia. Greater justice delays and weaker enforcement are largely to blame. Meanwhile, scores for Criminal Justice also fell in slightly more countries this year (56%) than last year (55%). 

“The world remains gripped by a rule of law recession characterized by executive overreach, curtailing of human rights, and justice systems that are failing to meet people’s needs,” said WJP co-founder and president William H. Neukom. “People around the world are paying the price.” 

Regionally, Ethiopia ranks 30th out of 34 countries in Sub-Saharan Africa. The region’s top performer is Rwanda (ranked 41st out of 142 globally), followed by Namibia and Mauritius. The three countries with the lowest scores in the region after Ethiopia are Mauritania, Cameroon, and the Democratic Republic of the Congo (138th globally).    

In the last year, 20 out of 34 countries declined in Sub-Saharan Africa. Of those 20 countries, 10 had also declined in the previous year.  

Among low income countries, Ethiopia ranks 15th out of 18 countries.   

Globally, the top-ranked country in the 2023 WJP Rule of Law Index is Denmark, followed by Norway, Finland, Sweden, and Germany. The country with the lowest score is Venezuela, then Cambodia, Afghanistan, Haiti, and the Democratic Republic of the Congo.   

By Muluken Yewondwossen

The decision of the government to facilitate the local sales of export-quality coffee in foreign currency has been positively received by coffee roasters and exporters. The Ethiopian Coffee and Tea Authority (ECTA) made history recently with a directive that closely monitors the coffee sector under government supervision. According to the new guidelines, certain locations will be designated for the local sale of coffee in foreign currency.

Coffee has been a significant export commodity for Ethiopia since the late 19th and early 20th centuries. Currently, it is the largest source of hard currency and a vital source of income for a quarter of Ethiopians. However, Ethiopian buyers have faced stringent export standards for coffee, and until about five years ago, adding value to the coffee beans was uncommon. In recent years, the government has implemented legislation and policies to encourage Ethiopian businesses to engage in value addition and export.

While value addition has been promoted, local sales of coffee products were not permitted until recently. This changed when Wild Coffee Ethiopia, a renowned premium coffee roaster, obtained a special license to sell its products in foreign currency at its shop in Addis Ababa.

“I advocated for a mechanism to sell coffee in foreign currency locally to relevant government officials,” says Gezahegn Mamo, CEO of Wild Coffee Ethiopia. “I would like to express gratitude to those who understand the concept and allow us to conduct this business for the benefit of the country and my company.” “Until recently, I was the only roaster selling coffee in foreign currency, but with the ECTA’s directive, those with the capacity to conduct this business can now legally sell the product, which is great news,” he told Capital.

Addis Belay, CEO and founder of Arada Coffee, expressed appreciation for ECTA’s decision, saying, “Our brand has gained significant acceptance in the global market, and we currently sell our beans at a good rate in duty-free shops at Bole International Airport.” He described the previous approach as paradoxical because, although they had good global penetration, Ethiopian policy prevented them from selling the beans domestically.

“The policy forces foreign workers in Ethiopia to obtain Ethiopian coffee from outside, even though Ethiopia exports coffee that is widely regarded as being of extremely high quality worldwide,” Addis stated.

According to Addis and Gezahegn, there is a substantial foreign population in Ethiopia, including expatriates from international organizations, embassies, and NGOs who are paid in foreign currency. However, they are not allowed to use foreign currency to purchase food in Ethiopia, forcing them to import it from abroad. This directly affects the country’s hard currency earnings.

“Nevertheless, such initiatives enable the nation to earn more hard currency without incurring additional costs for shipments and other expenses,” they claimed. “Addis Ababa is a major conference hub in the continent, a destination for travelers and tourists that can tap into the lucrative opportunities of this business,” Addis added, referring not only to foreign residents but also to visitors who pay in foreign currency.

According to these roasters, the new decision will contribute to elevating Ethiopian coffee’s recognition on a global scale. Gezahegn mentioned that the response has been quite positive since his company, Wild Coffee, was allowed to sell value-added coffee in foreign currencies two years ago. “I am thrilled to be a trailblazer and demonstrate how we can change the previous trajectory,” he remarked.

Gezahegn expressed some reservations about the new regulation, particularly regarding the requirement stated in article 4.6 of the directive, which mandates sellers to report transactions to the authority on a weekly basis. He believes that a reporting frequency of one to three months would be more practical. According to Article 5 of the directive, tourist hubs such as hotels, motels, lodges, pensions, restaurants, and cafes are permitted to offer export-grade value-added coffee. Additionally, parks, airports, and international conference centers have been included as hubs to market the beans.

Ethiopia, as the birthplace of coffee, boasts a diverse selection of coffee varieties unmatched by any other producer worldwide.