Domestic manufacturers supplying Ethiopia’s electrical infrastructure are urging the Ethiopian Electric Utility (EEU) to revise its pricing structure, citing the severe impact of soaring inflation, rising import costs, and currency fluctuations on their operations.

The call for price adjustments was made during a recent consultative forum organized by the EEU, which brought together local manufacturers and suppliers of key electrical components such as transformers, cables, and conductors. Participants voiced growing concern that the current pricing model is unsustainable in the face of escalating production expenses.

“The current inflation in the country has become more severe than we anticipated. The price of our raw materials is increasing at an alarming rate, making the existing pricing approach unsustainable,” one manufacturer stated. Many noted that most inputs are imported, and the combined effect of fluctuating exchange rates and higher transportation costs has significantly raised their production costs.

Another supplier emphasized the need for a comprehensive revision of the EEU’s pricing system, explaining, “When we set the prices for our products, we take into account everything from the cost of raw materials to profit margins and other operational expenses. However, the constant fluctuations in the exchange rate are having a major impact.”

Manufacturers also called for greater transparency and responsiveness from the EEU regarding price adjustments. “The EEU should have a clear assessment and price schedule in place. With the current high inflation affecting the country, their response to these price hikes is slow, which is severely impacting us manufacturers,” a participant asserted.

In response, the Ethiopian Electric Utility stated that it considers all factors related to domestically produced electrical infrastructure inputs, including the cost of raw materials. The utility acknowledged the reliance on imports and affirmed that costs incurred from procurement to delivery are taken into account.

“Our pricing has historically considered domestic production costs, profit margins, and other operational expenses. Price revisions are typically made when significant changes occur, such as fluctuations in fuel prices or currency exchange rates. Our ‘flat rate’ pricing is mostly reviewed annually. We hope to work on this in a clearer manner,” the EEU said.

Despite the need for enhanced due diligence on Politically Exposed Persons (PEPs), reluctance continues to challenge KYC compliance in Ethiopia’s financial sector.

The Commercial Bank of Ethiopia (CBE) asserts that it has bolstered its compliance measures in accordance with regulatory standards. However, during the 4th KYC Compliance Day celebration at CBE headquarters, the National Bank of Ethiopia (NBE) pointed out ongoing difficulties in meeting compliance requirements, despite continued improvement efforts.

An NBE representative presenting a study on the matter noted that one of the major obstacles to effective KYC implementation is the difficulty in keeping PEPs lists current. “Banks, including CBE, struggle to maintain an up-to-date PEPs list,” he remarked, urging that “relevant authorities should regularly provide banks with updated PEPs lists.”

Additionally, a lack of cooperation from PEPs when banks request further information poses another significant challenge, despite their legal obligations to comply.

PEPs, who are individuals that hold or have held prominent public positions, present heightened risks of corruption and money laundering, which necessitate stricter scrutiny by financial institutions.

The NBE representative also identified several systemic challenges, including the absence of a centralized national ID system, a lack of accessible databases for legal entities, poor integration among government agencies, insufficient stakeholder cooperation for enhanced Customer Due Diligence (CDD), limited investment in KYC technology, a weak focus on compliance units, and high operational costs.

Under the theme “The Future of KYC: Powered by Innovation,” CBE President Abie Sano stressed that compliance with regulatory laws is vital for protecting the financial sector.

Firew Gebreselassie, CBE’s Vice President of Risk Management and Compliance, reported significant progress in compliance over the past four years, noting that the bank has strengthened its processes in alignment with regulatory standards.

The NBE conducts regular assessments through both onsite and offsite examinations to ensure KYC compliance. “We are approaching full compliance, though this remains an ongoing journey. Our policy is zero tolerance for noncompliance,” Firew stated.

To enhance compliance, CBE has implemented several technological solutions, including the Financial Crime Mitigation Solution, which screens clients, including local and international PEPs, and links to global sanction lists (UN, EU, OFAC, UK); NG Screening for Profiling, which helps assess customers’ creditworthiness and risk profiles; and the Analytic x Boutique (NFRM System), which aids in risk mitigation.

“With 43 million customers, technology is crucial to our operations, and we continually upgrade our systems,” Firew added.

Despite these advancements, Ethiopia’s financial sector still faces challenges in achieving full KYC compliance, particularly concerning PEPs and systemic inefficiencies.

Ethiopia’s health sector continues to face significant challenges due to the widespread lack of health insurance coverage, experts say, leaving millions of citizens exposed to high out-of-pocket medical expenses and limiting access to quality care. As the country strives toward universal health coverage (UHC), the arrival of a new insurance company, Was Insurance SC, signals a potential turning point for affordable and accessible healthcare.

Despite notable improvements in health outcomes and increased government spending on healthcare over the past decade, Ethiopia’s health insurance penetration remains among the lowest in Africa. Less than 1% of the population is covered by general insurance, and only about 0.27% have life insurance, according to recent studies. As a result, out-of-pocket payments account for roughly 31% of total health expenditure, placing a heavy financial burden on households—especially those in the informal sector.

Community-based health insurance (CBHI), launched in 2011 to protect low-income and vulnerable populations, has expanded to cover about 81% of administrative districts and 60% of targeted households, benefiting over 55 million people. However, CBHI schemes are often fragmented, with limited risk pooling and inequities in coverage and contribution rates. Many still face gaps in coverage, and the quality of care at health facilities remains a concern, driving some members to seek more expensive private care.

In response to these persistent gaps, Was Insurance SC is preparing to launch as Ethiopia’s first dedicated medical and general insurance provider. Backed by more than 70 shareholders and awaiting final approval from the National Bank of Ethiopia, the company aims to provide comprehensive health coverage and help reduce the financial strain on citizens.

At its inauguration ceremony, company leaders highlighted their vision to “protect the health of the people of our country and create wealth for our people, especially our members,” according to Henok Teka, CEO of Droga Group, which counts Was Insurance among its ventures. Droga Group has a decade-long track record in pharmaceuticals, medical supplies, and physiotherapy services, and is recognized for its commitment to improving healthcare access in Ethiopia.

Was Insurance SC plans to offer a range of medical insurance products tailored to the needs of Ethiopia’s diverse population, with a particular focus on making coverage affordable for low-income groups. The company’s entry is expected to spur competition and innovation in a market long dominated by a handful of players, most of whom have traditionally avoided medical insurance due to high costs and regulatory hurdles.

The Ethiopian government has made UHC a central goal, rolling out a series of health sector development plans and introducing fee waivers for the most vulnerable. The Health Insurance Agency, established in 2010, is working to implement both CBHI and SHI, with the latter expected to cover formal sector workers in the near future. Policymakers are also considering regional or national pooling of insurance funds to improve risk sharing and financial sustainability.

However, experts warn that mandatory health insurance will be difficult to enforce in Ethiopia’s largely informal economy. Instead, they recommend increased subsidization for the poorest households, improved risk pooling, and ongoing efforts to raise public awareness about the benefits of insurance.

The arrival of Was Insurance SC comes at a critical time for Ethiopia’s health sector. If successful, the company could help bridge the gap between existing CBHI schemes and the broader goal of universal coverage, offering new options for millions of uninsured Ethiopians. By focusing on affordability, quality, and public education, Was Insurance SC and similar initiatives have the potential to transform healthcare access and financial protection for all.