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South Sudan Embassy staff in Addis endure years of unpaid wages

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Local employees at the South Sudanese Embassy in Addis Ababa say they have gone years without consistent pay, leaving dozens of workers and their families in severe financial distress despite longstanding diplomatic ties between Ethiopia and South Sudan.

At least 20 staff members, including cleaners, security guards, gardeners, and administrative workers, report prolonged salary suspensions that have worsened significantly over the past two to three years. Many say the issue stretches back nearly a decade, but has now reached a critical point.

“The last salary we received was a single month’s payment in early February after waiting nine months,” one employee told Capital. “Since then, nothing has changed.”

Workers say the irregular payments have left them struggling to survive amid rising living costs and inflation in Ethiopia. Several report being forced to sell household belongings to cover basic expenses, while others face eviction due to unpaid rent.

“We are selling our furniture just to feed our families,” one employee said. “Our children have been pulled out of school because we cannot pay tuition.”

Previously, staff relied on small tips from visiting delegations to supplement their income, but they say even that coping mechanism has recently been prohibited. Fear of dismissal has also prevented collective action.

“If we protest or strike, we will be treated as if we resigned and lose our jobs,” another employee explained.

According to staff, embassy officials have repeatedly cited budget shortages or delayed fund disbursements as reasons for non-payment. However, the issue has escalated beyond the embassy level, drawing the attention of both countries’ foreign ministries.

Documents seen by Capital indicate that as early as 2023, employees had gone 10 to 11 months without pay. Correspondence from late 2024 confirms arrears had reached a full year.

The Ethiopian Ministry of Foreign Affairs (MFA) formally raised the issue in a letter dated August 1, 2024, urging the embassy to resolve the grievances of 19 affected employees. When no resolution followed by the requested August 27 deadline, embassy representatives were summoned for discussions with the MFA’s Directorate of Conciliation Affairs.

Internal embassy communications suggest the problem has long been known. In May 2021, South Sudan’s ambassador to Ethiopia, Natalina Edward Mou, wrote to her government requesting emergency payments and salary adjustments for staff.

In mid-August 2024, the embassy informed Ethiopian authorities it had paid four months of arrears. However, significant debts remained. By December 2024, the Ethiopian MFA issued another reminder, prompting the embassy to state it was issuing one month’s payment while promising to clear the remaining balance gradually.

Despite these intermittent payments, workers say the accumulated arrears—and the uncertainty—continue to take a heavy psychological toll.

Employees are now calling for immediate settlement of outstanding salaries, regular and timely payments going forward, and wage adjustments that reflect current exchange rates and the cost of living.

Efforts by Capital to obtain official responses from both the South Sudanese Embassy and the Ethiopian Ministry of Foreign Affairs were unsuccessful. The publication states it will update the story should either party provide clarification.

Hybrid varieties, Ag-Tech are steering Africa toward food self-sufficiency

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Rwanda, Kigali 

For decades, international discourse has largely focused on Africa’s “potential”—a distant hope of what the continent could become. However, looking at regional hubs like Ethiopia and Kenya, the conversation has shifted from future promises to current results.

Experts urge this transformation is being spearheaded by hybrid seed technologies and integrated digital platforms, which are the primary engines driving the continent toward total food self-sufficiency. Africa’s agricultural growth was long stifled by “Western arrogance”—the tendency of European and North American institutions to impose rigid development models that were ill-suited for the African context.

Max Müller, Senior Vice President and Head of Global Public Affairs of Bayer AG told Capital at the sidelines of Africa CEO Forum, the era of giving directives to African farmers is coming to an end.

“For a long time, we Europeans—perhaps with good intentions—believed that economic development had to be done our way,” the official stated. “This is not a path to success because there is no ‘single’ Africa. What works in Kenya may not work in Côte d’Ivoire; what is effective in South Africa may not succeed in Morocco or South Sudan.”

Now, the primary role of international partners is to respect the continent’s diversity in soil, climate, and culture. Ag-tech companies are pivoting their focus toward localized solutions, training, and advisory services.

The argument for hybrid technology centers on its value proposition. As climate change and market volatility impact the prices of commodities like cocoa and maize, a farmer’s only defense is a reliable yield. High-quality fertilizers and crop protection tools are now viewed as essential investments rather than luxuries.

A major hurdle for African smallholder farmers has been accessing the credit needed to purchase modern inputs. Historically, banks viewed small-scale farming as a high-risk venture. However, the “digital revolution” in ag-tech is changing this perception.

Müller emphasized that anyone not currently active in Africa is missing out on the next great success story, noting that global food products—such as German chocolate—rely heavily on West African productivity. Addressing concerns that high-tech seeds and fertilizers are too expensive compared to traditional ones, he argued that the focus should be on quality rather than price.

High-quality inputs yield higher harvests, reduce waste, and improve a farmer’s creditworthiness. Consequently, digitally-supported agriculture is transforming the livelihoods of smallholder farmers.

Guided by the motto “Health for All, Hunger for None,” Bayer aims to benefit 100 million smallholder farmers globally by 2030, with a specific target of reaching 21.3 million farmers in Africa.

Why Africa must rewire infrastructure financing

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For too long, Africa’s infrastructure debate has been framed as a simple shortage story: not enough concessional finance, not enough foreign aid, not enough sovereign borrowing space. That narrative is incomplete. The real issue is that Africa already sits on substantial pools of domestic savings and institutional capital, but much of it remains trapped in low-yield government paper, underdeveloped markets, and cautious investment mandates. The result is a continent with abundant capital on one side and a crippling infrastructure deficit on the other.

This gap matters because infrastructure is not a decorative extra; it is the backbone of productivity, trade, and competitiveness. Without reliable transport corridors, ports, electricity grids, storage systems, and broadband, African economies remain fragmented and expensive to do business in. Farmers cannot move produce efficiently, manufacturers cannot scale, and regional trade under the African Continental Free Trade Area cannot mature at the speed policymakers promise. In that sense, infrastructure spending is not merely a fiscal choice. It is an economic strategy.

Yet Africa must also be honest about why financing has been so difficult. Investors do not just price projects on facts; they price them on perception, transaction costs, and confidence in execution. African project-finance default rates are shown as comparable to, or lower than, global averages, while the cost of capital is inflated by a “packaging gap” and a perception premium. That means many projects fail not because they are inherently unbankable, but because they are badly structured, poorly prepared, or not de-risked in ways private capital understands.

This is where the blame game must end. Governments cannot continue to design projects casually and expect pension funds, insurers, and development finance institutions to absorb the risk. At the same time, investors cannot demand returns as though every African project were a speculative venture in an unstable market. Both sides need a new bargain. Governments must improve project preparation, procurement, regulation, and rule of law. Investors must stop treating the continent as a monolith of risk and start distinguishing between jurisdictions, sectors, and project quality.

If Africa’s domestic non-bank pools are larger than cumulative external flows, then the continent’s infrastructure future cannot depend mainly on foreign lenders and donors. That external money will remain important, but it should be catalytic rather than dominant. The purpose of development finance institutions should not be to sit in the center of every deal, but to absorb early-stage risk, crowd in local institutions, and help create investable assets. Africa does not need perpetual dependence on external capital; it needs smarter leverage of its own balance sheets.

Pension funds and insurers will be central to that shift. These institutions manage long-duration liabilities, which makes infrastructure an obvious match in principle. Yet the allocation data suggest that African pension funds still commit only a tiny share of assets to infrastructure, far below peers in advanced markets. That is not just a market failure; it is a policy failure. Regulators should modernize investment rules, strengthen credit enhancement tools, and create standardized vehicles that allow local institutions to invest without being forced to build expertise from scratch on every deal.

But the answer is not to pour money into infrastructure blindly. Africa has seen too many white-elephant projects, politically motivated contracts, inflated costs, and debt burdens that outlived their usefulness. Spending more is not the same as spending better. Every shilling, rand, naira, cedi, or birr directed toward infrastructure must be tied to clear economic returns, maintenance planning, and transparent public reporting. The continent cannot afford monuments to ambition that collapse under the weight of poor governance.

The deeper lesson is that infrastructure spending should be judged by its capacity to unlock growth, not by the size of the headline commitment. Africa needs fewer ceremonial announcements and more bankable pipelines. It needs project preparation facilities, regional power pools, transport corridors, and financing models that match local capital with local needs. Most of all, it needs leaders who understand that the infrastructure gap is not only about roads and bridges; it is about whether the continent can convert its savings, institutions, and entrepreneurial energy into lasting productive assets.

If Africa gets this right, infrastructure will stop being the symbol of what is missing and become the engine of what is possible.

New export authority to be established as part of post-election reforms

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The Ethiopian government plans to create a dedicated authority to oversee commodity exports in a more streamlined manner, with implementation expected after the formation of a new government in the upcoming budget year.

Sources close to the situation have confirmed that a proposal for this authority has been submitted to the Prime Minister’s Office, and preparations are underway to advance this initiative at the start of the next Ethiopian New Year.

This initiative comes in response to ongoing challenges in the export sector. Despite government policies prioritizing export earnings, actual revenues have remained limited when compared to regional peers and in relation to the sector’s contribution to gross domestic product (GDP). 

One of the main objectives of the 2024 economic reforms was to enhance exports, but officials in the sector admit that the results have largely fallen short of expectations.

However, there have been notable gains in specific areas; for example, mining exports, particularly gold, have significantly returned to legal channels. 

The coffee sector, historically Ethiopia’s leading source of hard currency, has also experienced substantial growth in recent years, bolstered by global market trends and government initiatives. 

One source told Capital, “The contribution of macroeconomic reform may not be directly linked to the success achieved in coffee export earnings. Despite the reform’s target of further achievements in the export sector, its actual contribution has been very limited.”

Currently, gold and coffee dominate total export revenues. In the first seven months of the current budget year alone, gold exports generated over $2.1 billion—148 percent of the target. Additionally, emerging electricity exports are being identified as a significant future source of foreign currency.

Experts highlight the lack of dedicated oversight as a primary reason for the sector’s underperformance, noting that more than five ministries currently share responsibility for export oversight, even though most were established to manage different sectors.

“Exports are highly dynamic and require effective leadership with qualified staff, as they operate in a competitive international arena,” experts explained.

A source indicated that while there is interest in creating an export entity under the Ministry of Trade and Regional Integration, positioning it as a mere branch would be “meaningless.”

“The decision to consolidate the export sector under a single command is correct, but it must report directly to the Prime Minister’s Office, as was done in the past. The ministries should serve as supportive entities,” experts added.

Ethiopia previously had a successful export promotion agency. Established under Proclamation No. 132 in 1998, the Ethiopian Export Promotion Agency (EEPA) was led for several years by prominent economist and senior official Fantaye Biftu. The agency achieved significant results, including the diversification of exports to include new commodities like flowers.

However, in the mid-2000s, the export function became fragmented across various public bodies and ministries. Currently, the responsibilities are divided: the Ministry of Trade and Regional Integration oversees oilseeds and pulses; the Ministry of Agriculture manages coffee and tea; the Ministry of Mines handles gold and minerals; the Ministry of Industry covers manufacturing; and the Ministry of Water and Energy is responsible for electricity exports.

Experts argue that an independent body is essential for leading the sector professionally. Key functions of this body would include analyzing export products, understanding international markets, benchmarking against competitors, and assessing Ethiopia’s potential market share.

“Those with expertise in the sector—not newcomers learning on the job—should lead the upcoming regulatory body,” experts advised. They noted that when EEPA was led by Fantaye, his team was highly qualified, and after the agency was dissolved, most staff were reassigned as trade attachés to diplomatic missions.

In 2005 the agency was dissolved and the Export Promotion Department (EPD) was established under the ministry of Trade and Industry to discharge the duties and responsibilities formerly handled by the agency.

Ethiopia recorded $8.3 billion in export earnings for the previous fiscal year, primarily driven by coffee ($2.6 billion) and gold ($3.4 billion). For the current fiscal year ending July 7, the government has set an ambitious national target of $9.4 billion, with officials recently suggesting that earnings could exceed $10 billion.

The former EEPA played crucial roles in coordinating efficient working arrangements among producers, exporters, and service providers; enhancing competitiveness in overseas markets; and connecting Ethiopian exporters with foreign importers through promotional campaigns and market studies. 

A previous export strategy prepared by the Swiss-based consultancy Dalberg also recommended increased commitment and diversification in the export sector.

The proposed new body is expected to be formally established following the national election scheduled for June.