Ethiopia’s financial sector is increasingly open to foreign investors, but experts are cautioning that critical factors related to current market demand and supply must be carefully considered. As the sector seeks to attract foreign capital, the pressing need for a skilled workforce remains a significant challenge.

With the financial sector in Ethiopia experiencing rapid growth, there is an urgent demand for competent and skilled professionals. Experts emphasize that the participation of foreign investors, who bring wealth and experience, must be addressed promptly to enhance the sector’s capabilities. In today’s competitive financial landscape, providing exceptional services is essential for success.

Meselu Alamnie, an economist and president of the National Academy of Finance, highlighted the challenges facing the labor market in his recent assessment. He noted that while Ethiopia’s financial sector has shown remarkable growth, there are deep-seated issues regarding the supply of skilled manpower. “New financial institutions entering the market often recruit talent from existing firms, leading to inconsistencies in service delivery,” he explained.

Existing financial institutions struggle to find qualified personnel when establishing new branches or expanding operations. Meselu pointed out that increasing monetization in the economy, along with the introduction of foreign banks and the development of national capital markets, is driving new demands for financial literacy and expertise.

Despite efforts by newly established training centers to fill this gap through short-term programs, a significant shortage of skilled professionals persists. The National Finance Academy (NFA) has been proactive in addressing this issue by offering various training programs that integrate practical experience with essential theoretical knowledge.

Meselu emphasized that there is currently no higher education institution or training center in Ethiopia specifically designed to meet the human resource needs of the financial sector. As a result, many institutions resort to hiring experienced employees from other banks or insurers. He believes that this approach will not sustainably address the rapidly growing human resource needs of the sector.

The NFA has developed a curriculum consisting of over 75 professional practice-oriented skills-based training programs tailored to address the challenges faced by Ethiopia’s financial sector. This initiative has gained traction among individuals familiar with the importance and challenges within the industry.

In addition to its existing programs, the NFA announced it has completed preparations to launch a “Professional Diploma in Insurance,” aimed at filling critical gaps in insurance education and training. This program is expected to enhance workforce capabilities significantly.

The National Finance Academy, which began with just 46 members, is poised to expand its training offerings further into banking and microfinance sectors soon. As Ethiopia continues to navigate its evolving financial landscape, addressing these workforce challenges will be crucial for attracting foreign investment and ensuring sustainable growth.

Experts in land management have emphasized the urgent need for responsible land governance in Ethiopia, warning that current practices could hinder productivity, weaken land markets, and negatively impact human rights, social cohesion, and environmental protection.

During the 2nd Ethiopian Land Day, organized by Land for Life under the theme “The Quest for Resilient Land Governance for a Better Life in Ethiopia,” Daniel Behailu, Senior Land Policy Advisor at the Land Governance (LaGo) project, highlighted how land has often been manipulated for political purposes, adversely affecting economic and social issues. He stressed the importance of establishing clear and enforceable property rights to enhance land security.

Melesse Damtie, Chairman of the General Assembly of Land for Life Ethiopia, stated that the event reflects a strong commitment to developing sustainable and equitable land management systems that empower communities and improve livelihoods.

Yalemzewud Demissie, Head of the Rural Land Management and Geospatial Desk at the Ministry of Agriculture, noted that collaboration with Land for Life Ethiopia is underway to promote people-centric land management and support ongoing reforms in land governance.

The expo emphasized the critical role of public-private partnerships in advancing Ethiopia’s housing and urban development. By showcasing innovations and investment opportunities in the real estate sector, it aims to foster networking among industry leaders and stakeholders.

Land for Life Ethiopia is dedicated to promoting dialogue on effective land management practices and agricultural investments. The organization believes that empowering communities through better land governance can lead to improved economic outcomes and social stability.

The Ethiopian Media Council, in partnership with the United Nations Development Programme (UNDP), recently hosted a two-day forum titled “Role of the Media in the National Consultative Commission.” The event aimed to highlight the critical role that the media plays in facilitating national dialogue and ensuring the success of ongoing consultations in Ethiopia.

During the discussions, experts stressed that effective media involvement is essential for the success of national consultations launched by the government. Amare Aregawi, Executive Chairman of the Ethiopian Media Council (EMC), emphasized that the media must maintain a trustworthy, independent, and impartial environment to support these dialogues. He called for all stakeholders to ensure that journalists can operate without fear or intimidation.

The forum underscored the need for media outlets to raise awareness about the importance and nature of the national consultation process, encouraging public participation and inclusivity.

Tegrgnework Getu, Commissioner of the Ethiopian National Dialogue Commission (ENDC), reiterated the media’s vital role in fostering an inclusive environment for national consultations. He urged media professionals to prioritize national and public interests while contributing to the success of these discussions.

Participants noted that the media could play a significant role in addressing Ethiopia’s fundamental challenges through dialogue and promoting a national consensus on key issues.

The event highlighted the pressing need for responsible land management and governance in Ethiopia. As discussions continue around various social and political issues, experts agree that a free and independent press is essential for fostering transparency and accountability within society.

The Ethiopian Media Council and UNDP aim to strengthen collaboration between media organizations and government entities to enhance public discourse and facilitate meaningful dialogue among citizens.

Experts in the construction sector have raised alarms about the Ethiopian government’s increasing control over the industry, warning that it could lead to the bankruptcy of an already struggling sector. As private companies continue to secure contracts, concerns have been voiced regarding their ability to deliver satisfactory results.

A recent consultation forum, themed “Construction Breakthroughs for Nation-Building,” brought together key stakeholders to discuss the current state of the construction industry, its challenges, and future directions. One of the primary concerns highlighted during the discussions was the need for the government to step back and allow the private sector to thrive.

Participants at the forum expressed frustration over government practices that they believe hinder private sector growth. Critics pointed out that government entities often develop their own designs and award contracts to foreign companies, which can exceed local capabilities. Smaller projects are frequently allocated to associations rather than local contractors.

Girma Habtemariam, Vice President of the Construction Constructors Association, noted that while foreign contractors typically enter markets to undertake large-scale projects requiring advanced technology, their presence in Ethiopia has raised concerns. “Foreign contractors used to bid for projects worth more than 600 million birr, but now they can bid on projects over 3 million birr, while smaller projects are still not approved for local contractors,” he explained.

The government has established regulations aimed at ensuring that foreign contractors fill gaps in areas beyond local capabilities. However, Girma emphasized that this approach has created market challenges for local contractors, who are struggling against unhealthy competition and regulatory obstacles.

Yetemgeta Asrat, State Minister of Ministry of Urban and Infrastructure, reassured attendees that the government is focused on transitioning from foreign contractors to domestic ones. He acknowledged the need for significant improvements in local capacity to handle infrastructure and high-end construction projects.

Despite three decades of growth in the construction sector, Ethiopia remains heavily reliant on foreign contractors for major infrastructure developments. Experts have cited budget deficits, reliance on imported materials, supply chain issues, and foreign exchange challenges as significant barriers preventing domestic companies from achieving productivity.

The forum revealed alarming statistics regarding project completion times. Construction projects are reportedly completed 143% later than scheduled, while road construction projects face delays of 110%. These delays have resulted in a 35% increase in overall project budgets.Experts highlighted several bottlenecks contributing to these issues, including inadequate project completion rates, quality standards concerns, security issues, capacity gaps among contractors, and financing shortages.