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Wegagen Bank’s paid-up capital soars to birr 10.1 billion

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Wegagen Bank S.C. achieved a significant capital expansion during the 2025/26 fiscal year. Driven by an aggressive share mobilization effort and strong support from its growing investor base, the Bank’s paid-up capital increased by over 40 percent, reaching Birr 10.1 billion, up from Birr 7.0 billion in the previous period.

This substantial Birr 3.1 billion capital injection boosted the Bank’s total equity by 35 percent, closing the fiscal year at Birr 17.3 billion. This capital milestone highlights Wegagen’s institutional readiness as it navigates a dynamic macroeconomic environment and maintains its leading position following its listing on the Ethiopian Securities Exchange (ESX).

The capital fortification was supported by a growing and engaged community of investors. During the review period, Wegagen’s shareholder base expanded to 15,598, reflecting widespread public confidence in the institution’s long-term strategic direction.

Financial analysts note that this strengthened capital position provides the Bank with an expanded risk-absorbing buffer. With total assets surging by 32 percent to exceed Birr 111.3 billion and gross loans scaling up to Birr 67.3 billion, a robust capital foundation of Birr 10.1 billion positions the institution well above regulatory compliance thresholds. This also enables larger-ticket financing for strategic national sectors such as manufacturing, export trade, and infrastructure development.

While the capital surge dramatically strengthens the balance sheet’s durability, it has led to a transitional shift in per-unit earnings metrics. Since capital expanded at a pace exceeding the immediate surge in net income—which recorded a 13.6 percent increase to Birr 3.15 billion—basic and diluted earnings per share adjusted to 34.40 percent, down from 46.10 percent the previous year.

Market experts attribute this normalization primarily to a timing effect. Capital raised throughout the fiscal year only partially contributed to earnings generation before the books closed at the end of June. This means the full earnings potential of the newly injected capital will progressively materialize in subsequent operating cycles. Meanwhile, core profitability metrics remained robust, anchored by a healthy Return on Average Equity (ROAE) of 20.9 percent and a Return on Average Assets (ROAA) of 3.2 percent.

Board Chairperson Abdishu Hussein and executive management emphasized that building institutional capacity remains a top priority that extends beyond conventional short-term metrics. As Wegagen Bank implements its comprehensive multi-year strategic plan—focusing on customer-centric digital platforms like the Efoyta lending ecosystem, advanced risk management, and rigorous environmental, social, and governance (ESG) integration—management aims to fully optimize its newly expanded capital base.

By strategically deploying these funds into high-yielding productive sectors and expanding digital channels that now serve over five million total account holders, Wegagen is well-structured to translate its record capital cushion into sustainable, long-term value for its nearly 16,000 shareholders.

Global economy set to stabilize, but fiscal strain and rising living costs cloud outlook

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The global economy is expected to stabilize over the next year, but constrained government finances, rising household costs, geopolitical tensions and uncertainty around artificial intelligence investment could weaken the recovery, according to the World Economic Forum’s latest Chief Economists’ Outlook.

The report, released on September 22 during the World Economic Forum’s Sustainable Development Impact Meetings in New York, found that 56% of surveyed chief economists expect the global economic outlook to remain stable or improve over the next 12 months. That marks a sharp reversal from May, when 89% of respondents expected global conditions to weaken.

However, the improved outlook remains fragile. Nearly all respondents—97%—identified geopolitical conflict as a likely source of uncertainty over the coming year, while 58% expect the risk of asset-price corrections. Only about one-quarter of the economists surveyed expect the global economy to become more resilient.

“Chief Economists expect the global economy to stabilize, but uncertainty remains high with geopolitical volatility, potential asset-price corrections, greater scrutiny of AI investment and persistent cost-of-living pressures,” said Attilio Di Battista, Head of Economic Growth and Transformation at the World Economic Forum.

“Government support played a critical role in navigating successive crises, but fiscal capacity is likely to be more constrained going forward,” he said. “The priority now is to strengthen the foundations of resilience before the next shock arrives.”

The report found that public spending and fiscal interventions have been a major source of global economic resilience since 2020, helping countries absorb the effects of the COVID-19 pandemic, supply-chain disruptions, inflation, higher interest rates and geopolitical shocks.

Sixty-nine percent of respondents said fiscal support had been the main factor supporting global resilience since 2020. But only 28% believe government spending and fiscal measures will play a similarly important role over the coming year.

The finding highlights a challenge for governments facing high public debt, elevated borrowing costs and growing pressure to maintain social spending while investing in infrastructure, energy systems and digital transformation.

Instead, economists expect future resilience to depend more heavily on flexible supply chains, technology-led productivity gains and the ability of energy markets to adapt to shifting demand and supply conditions. The United States and China were viewed as the economies best positioned to withstand future shocks.

For developing economies, particularly those with limited access to affordable financing, the expected reduction in fiscal space could make it harder to cushion households and businesses from food-price increases, energy costs, climate shocks and external financial pressures.

Artificial intelligence remains a major source of optimism among chief economists, although the survey also points to increasing concern about the social and infrastructure costs of the technology’s rapid expansion.

Ninety-seven percent of respondents expect AI adoption to increase in the next 12 months, while 69% believe the technology will generate meaningful productivity gains. About 78% expect investment in data centres and related AI infrastructure to account for a significant share of global growth.

Yet economists also warned that the expansion of data centres could face political and public opposition. Seventy-nine percent expect significant pushback from communities affected by major data-centre projects, particularly where they raise pressure on electricity networks, water supplies and land use.

The report found that 78% of respondents expect data-centre expansion to increase electricity prices, while 58% anticipate upward pressure on water costs. At the same time, 61% do not expect data-centre investment to produce a significant share of global job creation.

The findings point to a growing debate over whether the economic benefits of AI infrastructure will be distributed widely enough to offset the costs imposed on communities and public utilities.

The report also suggests that competition between the United States and China in AI development could become more balanced. Sixty-nine percent of respondents expect Chinese large language models to close the gap with their US counterparts over the next year.

Despite signs of improved growth prospects, chief economists expect the global economy to become more fragmented. Seventy-seven percent of those surveyed said they expect geoeconomic fragmentation to increase during the next 12 months.

More than half of respondents—55%—expect tariffs to rise in the United States, while 43% expect higher tariffs in Europe. Such measures could reshape trade flows as businesses seek new suppliers, production locations and markets.

Two-thirds of economists still expect global trade volumes to increase, indicating that trade is likely to adapt rather than contract. Eighty-three percent expect Chinese exports to countries outside the United States to rise, reflecting continued efforts by Chinese firms to diversify export destinations amid trade tensions.

The United States was again ranked as the most favourable business environment for multinational companies. South-East Asia and Europe both improved by one place in the rankings, while India fell to fourth position and China remained fifth.

The report said economic prospects had strengthened across most regions but remained uneven. India, South-East Asia, Central Asia and the United States received the strongest assessments from respondents.

China’s outlook weakened, with about one in three chief economists expecting weak growth. Europe remained the weakest major regional economy, although its outlook improved modestly; 61% of respondents still expect weak or very weak growth in the region.

About one-third of respondents expect unemployment to increase in the United States, China and Europe. Monetary policy is also expected to diverge, with tighter settings anticipated in Japan, the euro area and the United States, while China is expected to move toward easier policy conditions.

The outlook is likely to be felt most directly through household budgets. Economists expect the cost of living to rise further, led by food prices, electricity bills and transport costs.

Food prices are expected to rise, according to 88% of respondents, followed by electricity costs, cited by 83%, and transport costs, cited by 77%. The report warned that real incomes are likely to stagnate or decline in most regions.

South-East Asia and India were the main exceptions, with more than 60% of respondents expecting real incomes to increase in those regions.

Governments are expected to rely primarily on broad measures to respond to cost-of-living pressures. Sixty percent of respondents expect tax reductions on essential goods, 54% anticipate consumption subsidies and 50% expect price caps.

However, fewer economists expect more targeted measures aimed at vulnerable households. Only 36% anticipate tax reductions specifically for low-income groups, while just 26% expect targeted cash transfers.

The report suggests that governments may continue to favour highly visible, broad-based policies even though these can be costly and less effective at reaching households most affected by inflation and weak income growth.

Ethiopia excluded from Global 2026 Travel & Tourism Development Index amidst record global growth

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Ethiopia has been omitted from the World Economic Forum’s (WEF) 2026 Travel & Tourism Development Index, a report that highlights mixed progress for African nations even as the global tourism sector achieves unprecedented levels of growth.

The latest WEF index evaluates 110 economies based on factors crucial for sustainable and resilient tourism development. These include infrastructure, connectivity, tourism services, ICT readiness, natural and cultural resources, and the broader policy environment. Notably, Ethiopia is not among the economies assessed in the 2026 edition.

This exclusion means the index provides no 2026 score or ranking for Ethiopia, making direct comparisons with other African economies featured in the report impossible.

While Ethiopia was excluded from this global assessment, Sub-Saharan Africa demonstrated more modest improvements compared to several other regions. The WEF report indicates that the region’s tourism development conditions advanced, particularly in areas such as ICT readiness, tourism prioritization, and cultural resources. However, challenges persist concerning tourism demand and the sector’s socioeconomic impact.

Among the African economies included in the index, Mauritius, South Africa, and Egypt ranked highest, with Morocco, Tanzania, and Kenya also showing strong performance. This reflects a broader recovery and expansion of tourism across Africa, though the pace of improvement varies significantly between countries.

Globally, the WEF reports that 92% of the 110 assessed economies improved their scores between 2024 and 2026, with the average score increasing by approximately 2%.

Japan secured the top position in the 2026 index, followed by the United States and Spain. Australia, France, Germany, the United Kingdom, China, Switzerland, and Italy completed the top 10. Japan’s ascent to the leading position is attributed to strong growth in international tourism, including a record 42.7 million international visitors in 2025.

The WEF noted that international tourist arrivals reached a record 1.5 billion in 2025. Concurrently, the global travel and tourism sector contributed an estimated $11.6 trillion to global GDP and supported 366 million jobs.

The report also identified Asia-Pacific as the fastest-improving region, with its average index score rising by 3.6%. Seven of the 10 most-improved economies were from this region, including Laos, Malaysia, and Thailand. Albania recorded the most significant overall improvement, with its score increasing by 7% from 2024.

Fourteen of the index’s 17 pillars also showed improvement between 2024 and 2026, with cultural resources experiencing the strongest growth, followed by tourism infrastructure and air connectivity.

Despite its absence from the WEF’s 2026 index, Ethiopia is increasingly integrating digital technology and artificial intelligence into its tourism development strategy.

Tourism Minister Selamawit Kassa, speaking ahead of World Tourism Day, emphasized Ethiopia’s use of artificial intelligence to promote its tourism assets, attract visitors, and enhance tourism services.

She highlighted that the newly launched Tourist Information Center provides visitors with information via a digital platform, while the Visit Ethiopia website has been upgraded with AI capabilities to offer more organized information and services.

According to the minister, Ethiopia welcomed over 1.6 million foreign visitors during the concluded 2018 Ethiopian fiscal year, an increase of more than 300,000 visitors compared to the previous year. She also reported a 21% increase in foreign-exchange earnings from tourism.

The government is also focused on expanding conference tourism. Selamawit noted that the number of international events held in Addis Ababa has risen from approximately 40 annually to 220.

Her remarks align with the global tourism industry’s growing adoption of digital technologies for destination promotion, visitor information, and service delivery.

The theme for World Tourism Day 2026, observed on September 27, is “Digital Agenda and Artificial Intelligence to Redesign Tourism,” placing technology and AI at the forefront of discussions about the sector’s future.

The quiet collapse: How apathy became Ethiopia’s default setting

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Reflection 

When I first returned to Addis Ababa after many years abroad, the city dazzled me. The new roads, the glass towers, the cafés filled with young people — Addis had a glitter and shine that suggested momentum. But even in those early days, beneath the surface, I sensed cracks (I did a standalone reflection on this in an article I wrote on 26 July 2026). The warmth that shaped my childhood — the quiet humility, the instinctive hospitality, the cultural gentleness Ethiopians across nationalities are known for — felt muted. Something was off.

Eight months later, that initial intuition has deepened into a troubling observation: Ethiopia is experiencing a quiet collapse of emotional engagement. A national apathy so widespread and so deeply wired into daily life that it has become almost invisible. Not anger. Not hostility. Not cruelty. Just a pervasive numbness — a kind of emotional shutdown that sits beneath the bureaucracy, the service culture, and even everyday interactions.

To understand this shift, it helps to distinguish a few psychological qualities that often get blurred together. Kindness, empathy, compassion, and apathy overlap, but they are not the same. Kindness is the act — “I will treat you well or do something helpful.” Empathy is the understanding — “I can feel or grasp what you’re experiencing.” Compassion is the moral impulse — “Your suffering matters to me, and I want to respond.” And then there is apathy — “Your situation doesn’t affect me, and I feel little inclination to respond.”

A society can remain behaviourally kind yet emotionally detached. People may follow rules, offer polite gestures, or complete tasks, but when confronted with distress, injustice, or urgency, the response is often: “What do you expect me to do about it?” This is the tone I increasingly encounter — in offices, in public institutions, in customer service, even in casual social exchanges. It is not cruelty. It is not malice. It is a quiet, heavy indifference.

Where did this come from?

Apathy does not emerge in a vacuum. Ethiopia’s collective psyche has been shaped by decades of trauma, instability, and survival-mode living. Emotional bandwidth does not remain intact after generations of shock.

The civil war under Mengistu, with its executions, disappearances, and pervasive fear, created a culture where emotional expression was dangerous and vulnerability was punished. Detachment became a survival strategy.

The 1984 famine, etched into global memory, left scars that still linger. When suffering becomes overwhelming, emotional shutdown becomes a coping mechanism.

Persistent poverty has forced millions into a daily calculus of survival. When life is reduced to securing food, rent, and basic stability, empathy becomes a luxury. Compassion requires emotional space; poverty erases it.

Ethnic politics, especially since the 1990s, has polarised communities and eroded trust. When identity becomes weaponised, emotional openness becomes risky.

And now, growing income inequality and a suffocating cost of living have created a new layer of exhaustion. The wealthy live in guarded bubbles; the poor navigate relentless pressure. The middle class — once a stabilising force — is shrinking. In such an environment, apathy becomes a coping mechanism — a way to conserve energy in a system that feels increasingly unforgiving.

The bureaucracy as a mirror

If you want to understand a country’s emotional state, observe its bureaucracy. Ethiopia’s public and administrative systems are now filled with rent-seekers, gatekeepers, and individuals hardened by years of institutional dysfunction. The default posture is defensive, not helpful. Processes are slow, opaque, and often deliberately obstructive. People follow rules without considering purpose. They enforce procedures without considering impact.

This is not because Ethiopians are inherently apathetic. It is because the system has conditioned them to be. When institutions fail repeatedly, people stop believing their actions matter. When accountability is inconsistent, people stop caring about outcomes. When effort is not rewarded, people stop giving effort.

Apathy becomes rational.

The cultural contradiction

What makes this moment so striking is the contradiction between Ethiopia’s traditional social fabric and its current emotional climate. We are a people known for generosity, humility, and communal care. Our cultural identity is built on idir, iqub, shared meals, collective responsibility, and deep respect for guests.

Yet today, many interactions feel transactional, mechanical, and emotionally vacant.

It is as if the country is still kind, but no longer empathetic. Still polite, but no longer compassionate. Still hospitable, but no longer emotionally present.

A national numbness

The apathy I observe is not laziness. It is not moral failure. It is a national numbness — the psychological residue of decades of instability, trauma, and economic strain. When a society experiences repeated shocks, people learn to shut down emotionally to protect themselves.

But numbness has consequences.

Apathy erodes accountability. Apathy weakens institutions. Apathy normalises injustice. Apathy kills initiative. Apathy suffocates innovation. Apathy makes corruption feel inevitable. Apathy turns survival into the only national project.

And perhaps most dangerously, apathy makes people stop believing that change is possible. Where do we go from here?

If Ethiopia is to move forward, it must confront not only its political and economic challenges but its emotional landscape. National healing is not sentimental — it is strategic. A society cannot build strong institutions, fair systems, or innovative economies if its people are emotionally exhausted and psychologically withdrawn.

We need to name this apathy. We need to understand its roots. We need to rebuild trust in institutions. We need leaders who model empathy, not perform kindness. We need public services that treat citizens as humans, not obstacles.

Most importantly, we need to recognise that emotional recovery is part of national development.

A call to Ethiopia’s missing intelligentsia

Ethiopia’s intelligentsia — academics, thinkers, analysts, writers, professionals — has been largely missing in action. Many are silent. Many are cautious. Many are exhausted. But the country cannot afford an intellectual vacuum.

We need critical voices. We need courageous analysis. We need informed debate. We need national self-reflection.

Our destiny is intertwined. Silence is not neutrality — it is surrender.

An African example: Rwanda’s transformation

If this feels impossible, consider Rwanda. After the 1994 genocide, Rwanda faced trauma far deeper than Ethiopia’s. Yet through deliberate national dialogue, community justice processes, civic education, and institutional reform, Rwanda rebuilt not only its economy but its emotional fabric. Public services became responsive. Bureaucracy became functional. Civic culture became engaged.

It is not perfect — no nation is — but it is proof that a traumatised society can reawaken.

Ethiopia can do the same.