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Killing Business and Collecting Tax: A Paradoxical Approach to Economic Growth

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In many countries, governments rely heavily on taxation as a primary source of revenue to fund public services and infrastructure. However, there is a delicate balance between taxation and economic growth. Excessive taxation and restrictive regulatory environments can stifle business development, leading to reduced investments, layoffs, and ultimately, lower tax revenues. This paradox, where governments seek to increase revenue by imposing high taxes but simultaneously hinder the very businesses that generate taxable income, is a challenge that policymakers must address with care.

Taxation is an essential component of any economy, but excessive taxation can have detrimental effects on businesses. High corporate taxes, complicated compliance requirements, and burdensome regulatory frameworks can make it difficult for businesses to operate efficiently. Some of the negative effects include:

High taxes discourage both local and foreign investors from injecting capital into the economy. When businesses anticipate lower profits due to high taxation, they may relocate to countries with more favorable tax policies.

Small and medium-sized enterprises (SMEs) are particularly vulnerable to high taxes. Many SMEs operate on thin profit margins, and excessive tax burdens can push them out of business, leading to job losses and economic stagnation.

When businesses perceive taxes as excessive or unfair, they may seek ways to avoid them, either by shifting operations to the informal sector or engaging in outright tax evasion. This not only reduces government revenue but also creates an uneven playing field for compliant businesses.

Governments face a difficult challenge. They need tax revenue to fund essential services such as education, healthcare, and infrastructure, but they must also create a conducive environment for businesses to thrive. Striking this balance requires a strategic approach to taxation.

Instead of imposing blanket high taxes, governments can implement progressive tax systems that ensure that larger, more profitable businesses contribute proportionally while providing tax relief or incentives to SMEs. Bureaucratic red tape can be as harmful as high tax rates. Simplifying tax codes and making compliance easier for businesses can enhance tax collection without suffocating businesses.

Instead of focusing on higher tax rates, governments should foster business growth, leading to a larger taxable base. Economic policies that encourage entrepreneurship, innovation, and job creation can ultimately lead to higher tax revenues without overburdening individual businesses.

Several countries provide clear examples of how over-taxation has hindered economic growth. France’s High Tax Burden: France has historically imposed high taxes on businesses, leading to capital flight and reduced investment. Many companies have relocated headquarters to tax-friendly nations, causing the government to reconsider its tax policies.

Singapore’s Business-Friendly Model: Singapore, on the other hand, has one of the most competitive tax regimes in the world. By keeping corporate taxes low and providing incentives for business growth, Singapore has successfully attracted multinational corporations and sustained economic growth while maintaining healthy tax revenue streams.

To conclude, taxation is necessary for economic and social development, but excessive taxation can be counterproductive. Governments must avoid policies that kill businesses while attempting to increase revenue. A balanced approach, where taxation is fair, compliance is simple, and economic growth is encouraged, can ensure a sustainable tax system that benefits both the government and businesses. By fostering an environment where businesses can thrive, governments can ultimately collect more tax revenue without stifling economic progress.

Empowering Africa’s Future

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Yohanna Reta is a dynamic leader driving transformative change across education, culture, and global development. As the founder of Golden Stars College and Golden Bridge Training and Consultancy, a higher education investor, and Global Ambassador of the African Heritage Center in Ontario, Canada, she empowers individuals and communities. Her work spans forging international university partnerships, advocating for Pan-Africanism, and championing women’s leadership, making her a powerful force for African prosperity.

Capital: Why should you think international organizations and investors focus on Africa’s youth and education?

Yohanna Reta:-Africa’s greatest asset is its people. It is the hands and minds of our youth that will build the future of our continent. We are blessed with vast untapped land, a favorable climate, and a strategic geographic location that makes Africa an attractive destination for investment. However, to fully harness these advantages, we must prioritize education, skills training, and youth empowerment.

With over 60% of Africa’s population under 30, our human capital is the most valuable resource—far greater than minerals or oil in the coming years. By investing in education and creating opportunities, we are not just transforming Africa; we are shaping a globally competitive generation that will drive innovation, entrepreneurship, and sustainable development.

For Africa to thrive, we must also ensure peace and security, creating a stable environment where talent can flourish and investments can grow. The future of Africa is the future of the world. Let’s invest in it, nurture it, and build a legacy of prosperity.

Capital: What inspired you to invest in higher education, and how do you see it as a tool for transformation in Africa?

Yohanna: As I mentioned earlier, I experienced firsthand the limitations of charity. While it can provide temporary relief, it doesn’t create lasting change. I realized that true transformation comes through education it empowers individuals, fosters critical thinking, and equips people with the skills needed to break cycles of poverty and drive innovation.

Growing up in Ethiopia, I saw the struggles of marginalized communities, particularly women, who lacked access to quality education. I knew I had to be part of the solution by creating opportunities for those who wouldn’t otherwise have access to learning. Higher education is not just about acquiring knowledge; it’s about shaping critical thinkers, innovators, and problem-solvers who will propel Africa forward.

That’s why I chose to invest in education. Through Golden Stars College, we are not just teaching we are building future leaders, entrepreneurs, and changemakers who will transform Africa and compete on a global stage. Education, combined with technology andinnovation, is the key to unlocking Africa’s full potential.

Capital: Why are global education partnerships essential for Africa?

Yohanna: Africa has enormous potential in terms of talent, especially among its youth. However, many educational systems in Africa are still developing and face challenges in providing quality education. Through international partnerships, African students and educators can access world-class education, technology, and global networks. These collaborations bring African innovation and excellence to the world, allowing us to close the gap and ensure our students are equipped compete internationally. They also create opportunities for student exchanges, faculty training, and research that directly contribute to Africa’s development. Our institution successfully signed a partnership MOU with five American and two Canadian universities, opening doors for collaboration on a global scale. This includes the opportunity to be a member of the Global Community and Consortium for Global Education in both the USA. We are also working closely with the Canadian Embassy in Addis Ababa to further strengthen these partnerships and enhance educational opportunities for our students.

Many foreign higher education institutions aim to recruit international students from Africa. However, these students often face challenges such as visa restrictions and high tuition costs. Additionally, many do not return to their home countries, limiting their contribution to local development. This is not a sustainable solution. Instead, we invite foreign universities to partner with local institutions to bring quality, internationalized education to Africa, ensuring greater accessibility and long-term impact.

Capital: You are also deeply involved in cultural advocacy and Pan-Africanism. How does this connect to your work in education?

Yohanna: Education is not just about academics; it’s about identity. Africa has a rich history, culture, and intellectual legacy that the world must recognize. Through my work as the Global Ambassador of the African Heritage Center in Ontario Canada and my role as a columnist for Sable and Gold, I advocate for cultural, heritage preservation and African and African decent unity.

I believe that when Africans and African decent embrace their identity and history, they develop confidence, resilience, and pride in their heritage. Education must go beyond textbooks it must inspire a sense of belonging, purpose, and global citizenship while strengthening our Pan-African roots. We must build institutions that teach our true history, cultivate innovation, and equip our youth with the skills to lead Africa into a prosperous future.

Capital: What challenges did you face as a business owner, entrepreneur, and leader in Ethiopia, and how did you overcome them?

Yohanna: As a business owner, entrepreneur, and leader in Ethiopia, I have encountered several challenges, many of which stem from societal and cultural norms, financial constraints, discrimination, and the balance between family and work responsibilities. These obstacles have been difficult, but they have also shaped my resilience and reinforced my commitment to making a lasting impact.

One of the biggest challenges is societal and cultural norms that often underestimate the potential of women in leadership and business. In Ethiopia, leadership is traditionally seen as a male role, and women are expected to focus on family. I faced doubts and skepticism when I founded Golden Stars College, as many questioned whether a woman could lead such an institution. I overcame this by focusing on results, providing quality education, and building strategic partnerships, proving that leadership is about vision and impact, not gender.

Financial constraints have also been a significant hurdle. Access to funding for women-led businesses is limited, and financial institutions are often hesitant to invest in women entrepreneurs due to biases or a lack of collateral. In the early stages of my business, I had to self-fund, reinvesting every bit of profit to sustain growth. Even now, securing the financial resources needed to fully implement my vision is still a challenge.

Additionally, lack of professional networks has been a barrier. Many business networks in Ethiopia are male-dominated, making it harder for women to break in. To address this, I created Golden Bridge Training and Consultancy, a platform that connects professionals, entrepreneurs, and women, helping to build networks and create new opportunities.

Family responsibilities also present a challenge, as women are often expected to manage both work and home life. Balancing these roles requires excellent time management and support from others. I had to delegate effectively and set boundaries to ensure that I could fulfill both my career and family responsibilities without compromising either.

Despite these challenges, I see every obstacle as an opportunity forgrowth. My journey has taught me that resilience, innovation, and a clear sense of purpose are crucial to overcoming adversity. By staying focused on my mission, I am committed to breaking down barriers for women and entrepreneurs, not only in Ethiopia but across Africa

Capital: How did your diverse career path lead you here, and how do you manage it all?”

Yohanna: My journey is one of resilience, vision, purpose, and humanity. I was born and raised in Bishoftu, Ethiopia, East Africa, in a family where discipline, integrity, and service were deeply valued. My father, a military officer, sacrificed his life for his country, and my mother, with unwavering strength, raised me to believe that obstacles are simply opportunities for growth.

When you look at my upbringing, it’s clear that I am a person of service someone who believes in sacrifice for future generations. Everything I do whether it’s humanitarian work, business, or education centers on one thing: people and community-based impact.

That’s why my journey began in humanitarian work, founding and managing the Safe Haven Association to support orphans and women affected by HIV/AIDS in Ethiopia. But after eight years of service, I realized that charity alone would never break the cycle of poverty in Africa. It’s a temporary relief, but education, training, and entrepreneurship are the lasting keys to uplifting youth and building a sustainable future.

This realization led me to establish Golden Stars College, a private higher education institution, and Golden Bridge Training and Consultancy, its sister company. Both focus on empowering young people, especially those from marginalized backgrounds, by equipping them with knowledge, skills, and technology to transform their futures.

Capital: What’s the impact of your ambassadorship and column?”

Yohanna: I am appointed both by different organization from Canada as the Global Ambassador for the African Heritage Center, my role is to advocate for the preservation and global recognition of Africa’s rich cultural heritage and lifestyles. The center celebrates African history, excellence, arts, music, food, language, and the diverse ethnicities that make up our continent in Canada and beyond. It is a space that is distinctly African but open to the world, where we can highlight the history, civilization and the true non-biased story of Africa in all its forms to the world.

Living in Ethiopia, which is home to the headquarters of the African Union, places me in the ideal position to engage with African delegates, embassies, and global organizations. This unique location allows me to build connections.

In addition to my commitment with the African Heritage Center, my role as a columnist for Sable and Gold magazine publish in Canada provides another platform to advocate for Africa. Through this magazine, I have the opportunity to amplify African voices, discuss our culture, history, and lifestyles, and reshape the global narrative about Africa.

Capital: What is the most inspiring success story you’ve witnessed through your work?

Yohanna: Success is not a destination it’s a journey of impact, resilience, and transformation. For me, success isn’t measured by wealth only but in the lives changed, barriers broken, and opportunities created along the way. Every day, I strive to push boundaries, open new doors, and introduce fresh approaches that empower individuals to rise beyond their circumstances.

I have witnessed young women who once had no access to education now becoming leaders in their communities. I have seen students, once uncertain of their future, transform into innovators and entrepreneurs. These stories are the true measure of success the ripple effect of change that continues beyond my own journey. I am not just working toward success; I am building a legacy of impact that will outlive me.

Capital:  What are your future plans and how do you envision the next steps for your ventures?

Yohanna: My future plans are centered around creating sustainable change and expanding the impact of both Golden Stars College and Golden Bridge Training and Consultancy. I envision transforming education in Ethiopia and across East Africa by building a more inclusive, accessible, and innovative educational system that empowers individuals—particularly women and young people.

One of my key goals is to expand Golden Stars College into new regions and enhance its academic offerings. I plan to establish a KG-12 educational system and a Women’s Leadership Center in multiple cities, providing more comprehensive education and training opportunities. This will help bridge the gap in quality education and give students a clear path to success in their careers and lives.

Additionally, I am working towards fostering stronger international partnerships with universities and institutions worldwide to bring global knowledge and opportunities to African students to ensure our students have a global perspective and competitive edge.

Finally, I’m looking into investing in technology and research. We are entering an era where tech-driven solutions can address many challenges in education, business, and leadership development. Ultimately, my future plan is to scale my impact through continuous innovation, collaboration, and leadership, building a legacy of empowerment that will resonate for generations to come

Romania designates Ethiopia as key partner, donates tech equipment to Tiya High School

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By our staff reporterIn a significant move to strengthen bilateral relations, Romania has designated Ethiopia as a key partner for future collaborative development under its medium-term strategy.

This announcement was made during the official handover ceremony of advanced technological equipment donated to Tiya High School by the Romanian government.

The event took place on Thursday, March 20, in the historic town of Tiya, inscribed on the UNESCO World Heritage List, located 85 kilometers southwest of Addis Ababa.

In a virtual address, Romanian Foreign Minister Emil Hurezeanu emphasized that the Romanian government’s assistance aims to equip young people with essential technological tools and skills.

“Our contribution to Tiya High School includes top-tier electronic devices. I am confident that these will significantly enhance the students’ educational experiences,” he stated during the ceremony.

Hurezeanu further highlighted that Romania’s support is based on the principles of mutual partnership. “We operate within the framework of the Romania-Africa Strategy: Partnership for the Future through Peace, Development, and Education, promoting a spirit of practical, sincere, and equitable collaboration,” he added.

According to Hurezeanu, Ethiopia holds a special position in Romania’s African strategy as part of its latest medium- and long-term international development cooperation and humanitarian aid plan.

He noted that Romania has financed grassroots educational initiatives in several African countries, with Ethiopia being a central focus.

These projects prioritize digital transformation and the establishment of IT laboratories, as “these competencies are indispensable in today’s world.”

Romanian Ambassador to Ethiopia Julia Pataki reiterated her government’s commitment to supporting young people, referencing previous initiatives at Lideta Catholic School in Addis Ababa and now at Tiya High School.

She announced that the third phase of support for building a modern learning environment will be directed to Harar, located 530 kilometers east of the capital.

“Our aim is to forge a link between Romanian and Ethiopian schools to foster excellence,” she stated.

The donation included 21 all-in-one computers, a printer, a 75-inch television, a camera, and other essential electronic devices, establishing a fully equipped, cutting-edge ICT lab for the school.

The ceremony was attended by officials from the Central Ethiopia regional administration, the Eastern Gurage Zone, and Sodo Woreda, along with senior diplomats.

Among the attendees were Simone Knapp, the Austrian Ambassador to Ethiopia, and Ronald Micallef, the Maltese Ambassador to Ethiopia.

Ambassador Knapp recalled her government’s previous support for Tiya High School in the area of sports, stressing the importance of sports in fostering unity, harmony, and self-assurance alongside formal education.

Ambassador Micallef pledged future assistance from his country for the local community.

Tadele Birhane, head of the Sodo Woreda Education Bureau, highlighted the vital role the donated equipment will play in cultivating a generation proficient in technology.

Local administration officials also commended the efforts of Teguest Yilma, a philanthropist who has provided significant support to the community and the school in Tiya, encouraging foreign donors to contribute.

Teguest shared that her primary objective is to empower local communities and the younger generation, who will, in turn, contribute to society.

Birhane Bate, head of the Sodo Woreda Administration, described the donation as a testament to the deepening partnership between Ethiopia and Romania.