Ethio telecom, in partnership with the Ethiopian Toll Roads Enterprise (ETRE), has launched a new RFID-powered digital toll payment system and a service and penalty payment platform through telebirr, aiming to make travel on the Addis -Adama expressway faster and more seamless.

The companies said the initiative modernizes toll road operations by replacing manual payment and recording processes with a centralized digital platform. The system is designed to handle road service fees, traffic penalties and toll account top-ups, while reducing congestion, paperwork and cash handling at toll gates.

Under the new service and penalty management platform, motorists can pay for services such as property damage fees, tipper and tow crane services, parking fees and penalties linked to overweight vehicles or unauthorized entry into expressway zones. The platform also gives ETRE real-time revenue visibility, dashboard-based monitoring and controlled access for staff.

The TOLO Mini App, integrated into the telebirr SuperApp, allows drivers to top up their electronic toll accounts digitally. Vehicles fitted with RFID tags can be linked to a user’s telebirr account, enabling automatic toll deductions as they approach the gate and allowing for non-stop passage when sufficient balance is available.

Ethio telecom said the system is expected to improve efficiency and reduce bottlenecks that have long affected toll road operations. By digitizing payments and automating account management, the companies say the platform will help minimize delays, lower the risks associated with cash handling and reduce manual errors in reporting.

For ETRE, the partnership is expected to strengthen revenue collection and transparency while improving customer service. For motorists, the companies said the main benefits are 24/7 access, faster transactions and greater payment flexibility.

The Association of Ethiopian Microfinance Institutions (AEMFI) has urged the National Bank of Ethiopia to open a special refinancing window for the microfinance sector, warning that liquidity pressures are threatening the industry’s ability to serve low-income borrowers, small businesses and rural communities.

AEMFI said recent credit-growth limits imposed on commercial banks to contain inflation have had an unintended spillover effect on microfinance institutions, which rely heavily on wholesale funding from banks to finance lending to their clients.

According to the association, the restrictions have sharply reduced the flow of funds to microfinance institutions at a time when demand for credit remains strong. AEMFI Director Teshome Kebede told Capital that the issue goes beyond institutional profitability and has become a test of Ethiopia’s broader financial inclusion framework.

“The issue is not just about maintaining institutional profit; it is about saving the country’s Financial Inclusion Architecture from collapse,” he said.

AEMFI argued that microfinance institutions should not be treated under the same funding assumptions as commercial banks because their business model is different. Unlike large banks, MFIs often depend on bank credit lines and wholesale borrowing to extend loans to farmers, micro and small enterprises and households with limited access to formal finance.

To ease the strain, the association is calling for a direct and dedicated funding line for MFIs, separate from commercial bank lending channels. It also wants support mechanisms designed specifically for the sector during periods of financial stress, along with proportionate regulation that reflects the size and role of microfinance institutions in the economy.

In its view, the sector serves a distinct market segment and should be protected from policies that could unintentionally weaken its social mission. “This argument is not about protecting institutions from competition, but about ensuring that competition does not sacrifice social reach,” the association said.

The entry of foreign banks into Ethiopia and their growing focus on lower-income market segments has also raised concern within the sector. AEMFI warned that without appropriate safeguards, stronger commercial players could pull microfinance institutions away from their original mandate, a risk it described as mission drift.

The association said competition should be encouraged, but not at the expense of inclusion. It has therefore renewed its call for microfinance to be recognized as a priority sector within the financial system, a step it believes could help create a stronger legal and policy framework for channeling resources to the industry.

A separate pressure point is the National Bank’s directive requiring all microfinance institutions to raise paid-up capital to 75 million birr by January 2028. While the rule poses a major challenge for smaller institutions, AEMFI said it is also pushing the sector toward modernization and consolidation.

The association said it is helping smaller MFIs develop capital-raising plans so they can build stronger balance sheets over time and remain competitive in a changing financial landscape.

Teshome said the sector is likely to look very different within the next five years, with larger, well-capitalized institutions reaching millions of customers through mobile platforms, alongside specialized MFIs serving rural and pastoral communities with tailored financial products.

Ethiopia has unveiled a $577.8 million plan to support 1.68 million refugees and host community members in 2026, marking a strategic shift toward integrating displaced people into national systems rather than relying solely on emergency aid.

The 2026 Country Refugee Response Plan (CRRP), launched by the government alongside 38 humanitarian and development partners, targets Ethiopia’s population of about 1.12 million refugees and asylum-seekers as of late 2025. The majority come from South Sudan (520,896), Somalia (390,603), Eritrea (183,967) and Sudan (106,259), with growing numbers of Ethiopian returnees also straining resources.

The strategy follows the “Makatet” (Inclusion) Roadmap, which aims to move beyond short-term relief toward sustainable development. Officials said humanitarian assistance alone cannot address the crisis, and the focus now is on bridging emergency response with long-term economic integration.

A core element involves including refugees in national services. The plan builds on the 2024 “Right to Work Directive,” which allows refugees to seek formal jobs and start businesses. More than 138,000 have already been registered in the FAYDA national digital ID system, giving them access to banking, mobile SIM cards, health and education services.

“Humanitarian assistance alone is not a sustainable solution,” the plan states. “A fundamental change is needed to bridge the gap between emergency relief and long-term development.”

Despite these advances, funding shortfalls pose a major threat. Global humanitarian budgets shrank in 2025, forcing cuts to food rations and worsening conditions in refugee settlements. The CRRP warns that distributions will cover only 60 per cent of dietary needs next year unless more support arrives.

Protection risks and climate pressures add to the challenges. About 72 per cent of refugee children face high stress levels, while child marriage and gender-based violence remain prevalent. In regions like Gambella and Somali, floods and droughts threaten water supplies and livelihoods for both refugees and hosts.

The budget breaks down across key sectors: $184.4 million for food security, $124.1 million for protection, $63.6 million for climate-resilient housing to replace temporary tents, and $102.6 million for health and water, sanitation and hygiene services.

Where local markets function, the plan prioritizes cash-based interventions over in-kind aid. This approach gives refugees spending choices while boosting Ethiopia’s economy through local purchases. Officials say it promotes dignity and self-reliance over dependency.

The Refugees and Returnees Service (RRS) and UN Refugee Agency (UNHCR) emphasized Ethiopia’s “open-door” policy, which has made it one of Africa’s top refugee-hosting nations. But they warned that progressive policies like job access and digital inclusion depend on steady international funding.

Africa’s aviation sector posted strong growth in February 2026, with both passenger and cargo demand rising sharply, even as the war in the Middle East threatened to push up fuel costs, squeeze capacity and disrupt trade flows across the continent.

According to the International Air Transport Association (IATA), global air passenger demand rose 6.1 per cent year-on-year in February, while African airlines recorded 4.8 per cent growth in international passenger demand and 21.0 per cent growth in air cargo demand. IATA said the gains reflected broad resilience in global travel and freight, but warned that the conflict in the Middle East was already affecting airline costs and route planning.

For Africa, the passenger picture was mixed. The continent’s airlines increased capacity by 6.6 per cent, outpacing demand and pushing the load factor down to 74.5 per cent from 75.8 per cent a year earlier. That suggests seats were added faster than travellers returned, even though traffic still expanded.

Cargo was the brighter story. African airlines led all regions in February cargo growth, with demand up 21.0 per cent and capacity rising 17.3 per cent, according to IATA. Trade lanes linking Africa and Asia were especially strong, rising 61.9 per cent and extending a run of growth that has now lasted eight consecutive months.

IATA Director General Willie Walsh said February’s figures showed strong underlying demand, but he warned that the Middle East war is making it difficult to judge the rest of the year. Fuel costs have risen sharply, he said, and airlines are already adjusting capacity, particularly on routes to, from or through the Middle East.

The regional breakdown shows Africa performing below some fast-growing markets but still holding up in a difficult global environment. In passenger transport, Latin America posted the strongest international demand growth at 13.5 per cent, followed by Asia-Pacific at 8.6 per cent, while Africa’s international demand rose 4.8 per cent. In cargo, Africa’s 21.0 per cent increase outpaced the Middle East’s 16.5 per cent and Asia-Pacific’s 13.6 per cent, making it the strongest regional performer.

The broader implications for Africa are significant. Aviation is a key enabler of trade, tourism and business travel on a continent where many economies depend heavily on imports and long-haul connectivity. Rising air cargo demand could support exporters moving time-sensitive goods such as flowers, fresh produce, pharmaceuticals and high-value manufactured products.

But the same report makes clear that the industry faces headwinds. IATA said capacity growth scheduled for March had already eased to 3.3 per cent from earlier forecasts of more than 5 per cent because of fuel costs and uncertainty linked to the Middle East conflict. That suggests airlines may become more cautious in the weeks ahead, especially on routes exposed to higher operating costs.

For Africa, the February numbers therefore carry two messages. First, demand for air travel and cargo remains resilient. Second, the external shocks that have repeatedly affected global trade and transport are once again testing the continent’s aviation industry, making supply chain stability and fuel security more important than ever.