Addis Ababa this week hosted a high-level gathering that leaders and economists described as pivotal to the future of Africa’s public finances. Convened under the theme From Taxation to Action: Bridging Policy and Implementation in Public Financial Management in Africa, the 11th Africa Think Tank Summit 2025 brought sharp focus to the continent’s worsening debt predicament, with 22 countries — including Ethiopia — now in what experts label “unsustainable” debt distress.

Organized by the African Capacity Building Foundation (ACBF), the three-day summit called on governments to shift from dependency on shrinking streams of foreign finance toward strengthening financial sovereignty through effective domestic resource mobilization (DRM). According to data presented at the event, average public debt in sub-Saharan Africa has surged to nearly 60% of GDP over the past decade, with debt servicing consuming up to 9% of national budgets. This trend, delegates warned, is squeezing expenditure on health, education, and other essential public services.

Mamadou Biteye, Executive Secretary of the ACBF, underlined that despite efforts to modernize tax systems, Africa’s tax-to-GDP ratios — typically between 12% and 15% — remain far below the 20% or more achieved in Asia and Latin America. He attributed the gap to structural issues including large informal sectors, capacity constraints, income inequality, and an erosion of public trust rooted in limited transparency and weak accountability. “When taxpayers see little return for their contributions, tax morale declines,” he noted.

In a keynote speech, Zadig Abrha, President of the African Leadership Excellence Academy (AFLEX), urged leaders to rethink Africa’s economic position. “If we want sovereignty, we must support it financially. If we want freedom, we must impose taxes — not as punishment, but as the price of civilization,” he said. Comparing Africa’s circumstances to global benchmarks, he stressed that Europe, the United States, and China had each financed nation-building through domestic contributions, cautioning against “eternal dependence on the goodwill of others.”

Speakers also placed responsibility on African think tanks — described as “laboratories of destiny” — to close the gap between strong policy visions and weak execution. Biteye called for transforming these institutions into “rivers of thought” that irrigate the entire continent, driving Africa from being the subject of external analysis to the author of its own development narrative.

The summit urged African states to prepare for emerging intersections between artificial intelligence, climate change, and biotechnology, insisting on a shift “from imported ideas to domestic intelligence” and from reactive policymaking to proactive strategic planning. Delegates emphasized the need for intellectual collaboration, warning against siloed research efforts that fail to influence policy at scale.

To ensure the conference yields tangible outcomes, Biteye advocated for practical models linking reforms to measurable results — the “last mile” between strategy and impact. Citizens, he stressed, must see their taxes transformed into schools, hospitals, roads, and climate-resilient infrastructure. Digital tools such as open budget portals and e-procurement systems, he added, can enhance transparency and efficiency if supported by robust institutions.

The tone of the Addis Ababa summit was clear: Africa’s fiscal future will depend on moving reasoning into results, and turning talk into coordinated, continent-owned action.

Etihad Airways, the national airline of the United Arab Emirates, has introduced a new daily flight service between Abu Dhabi and Addis Ababa. This marks a significant milestone in its ambitious global expansion and officially activates a distinctive joint venture with Ethiopian Airlines (ET).

As part of its plan to introduce 18 new destinations this year, Etihad is significantly expanding its presence in Africa. The Addis Ababa route is the 10th new destination launched in 2025, with eight more expected before the year concludes.

The inaugural flight, which was fully booked, landed at Addis Ababa’s Bole International Airport on Wednesday. Onboard were Etihad’s CEO, Antonoaldo Neves, and a delegation of senior executives, who were greeted warmly by Ethiopian Airlines CEO Mesfin Tasew.

This new service marks the beginning of a groundbreaking commercial partnership between the two airlines, aimed at enhancing connectivity between the Gulf, East Africa, and beyond.

During a welcoming ceremony, both CEOs highlighted the historic significance of their collaboration. Mesfin Tasew described the partnership as “truly unique,” a sentiment echoed by Neves.

“It’s the first joint business agreement between a Middle Eastern carrier and an African carrier—that’s unprecedented,” Neves clarified, emphasizing two additional factors that set the venture apart: the similar size and business philosophies of both airlines, and the strategic importance of their hubs.

“Etihad is the UAE national carrier, and Ethiopian is the Ethiopian national carrier. When we combine these two well-managed, profitable airlines with excellent customer service, it benefits everyone,” Neves told Capital.

The partnership has already resulted in a combined total of two daily flights between the capitals—one operated by each airline.

Looking ahead, Neves expressed his ambition for the route, stating, “I would love to double that, to four flights a day. The sooner we can add more capacity, the sooner we will add it.”

The new service takes advantage of Addis Ababa’s status as a major aviation and diplomatic hub in Africa. As the home of the African Union and the extensive Ethiopian Airlines network, the city serves as a key gateway to over 55 destinations across the continent, providing Etihad passengers with unmatched connectivity deep into Africa.

This launch is a crucial element of Etihad’s broader growth strategy, which aims to introduce a total of 30 new destinations over two years, with 12 more planned to start in 2026. The strong demand, demonstrated by full inaugural flights in both directions, highlights the market’s potential for this enhanced connection.

The Ethiopian Deposit Insurance Fund (EDIF), established under Council of Ministers Regulation No. 482/2013, has reported exceptional performance for the first quarter of the fiscal year by collecting Birr 2.08 billion in premiums. This collection marks a full achievement of its forecasted target and represents a 26.83% increase compared to the same period last year.

The growth in premium collection is attributed to the increased deposits held by member financial institutions, including commercial banks and microfinance entities. EDIF’s primary role is to provide insurance coverage for depositors by guaranteeing the return of deposits up to Birr 100,000 per account, thereby contributing to the overall stability and health of Ethiopia’s financial system.

To date, the fund has amassed total premiums amounting to Birr 15.93 billion from member institutions. Of this total, private banks contributed Birr 7.97 billion, the Commercial Bank of Ethiopia provided Birr 7.74 billion, and microfinance institutions added Birr 186.62 million. For the fiscal year 2025/26, EDIF aims to collect a total of Birr 9.56 billion in premiums, reinforcing its financial capacity by reinvesting these funds.

During the first quarter, the fund strategically invested Birr 1.82 billion in government treasury bonds and deposited Birr 190 million in the Mudarabah Savings Investment Account. The overall investment portfolio now stands at Birr 16.49 billion, with the bulk comprised of government treasury documents. EDIF’s investment activities have yielded Birr 1.85 billion so far, with expectations to generate Birr 3.02 billion in income during the current fiscal year.

In the previous financial year alone, EDIF raised over Birr 7.1 billion from its 86 member institutions—a notable 17% growth—and approximately Birr 14 billion over the past two years.

According to a high-ranking official from the National Bank of Ethiopia and chairperson of EDIF, deposits held within banks and microfinance institutions surged to Birr 3.25 trillion, reflecting a 34.3% growth compared to the prior year. Despite the fund’s considerable achievements in accumulation, experts underline the necessity of further bolstering resources to enhance protection, particularly for small depositors.

EDIF continues to focus on strengthening its institutional and operational frameworks through capacity-building policies. Although the current deposit insurance limit of Birr 100,000 covers approximately 97% of deposit accounts, management asserts that this threshold should be reviewed periodically to align with global best practices.

The fund’s proactive measures demonstrate a sustained commitment to safeguarding depositor confidence and ensuring the safety, resilience, and soundness of Ethiopia’s financial sector.

Ethiopia has launched a landmark digital system designed to overhaul governance and combat entrenched corruption in its construction industry. The Ethiopian Construction Authority (ECA) on Friday inaugurated the Construction Regulation Information System (CRIS), a comprehensive platform aimed at replacing the fragmented, opaque, and manual processes that have long hindered efficiency and fueled malpractice in the sector.

The platform targets critical pain points such as building permit approvals, compliance certifications, and project registrations—procedures that were previously handled through disconnected paper-based systems. According to officials, this outdated approach created fertile ground for delays, inflated costs, poor oversight, and what ECA Director General Mesfin Negewo described as “catastrophic malfunctions.”

Developed in collaboration with the Information Network Security Administration (INSA), CRIS was unveiled in a ceremony that underscored its strategic importance. Mesfin compared the initiative to national milestones like the Grand Ethiopian Renaissance Dam, framing it as a structural reform with far-reaching economic impact. “CRIS will enable the Authority to execute its mandate with clarity, efficiency, and accountability,” he said, adding that it would help catalyze national economic growth through transparent and fast service delivery.

Ten months of preparatory work went into the platform’s design, with ECA citing the need to eliminate double registrations, inconsistent records, and reliance on informal information exchanges between departments. One of CRIS’s cornerstone features is the Project Registration Management System (PRMS) module, which serves as a centralized digital hub for managing all registered construction projects. This module offers a single entry point for stakeholders—ranging from project owners to regulatory officers—ensuring that compliance and accountability are embedded from the start.

Officials say the system will automate basic processes, cut administrative burdens, and reduce opportunities for bribery or procedural manipulation. It also has potential to integrate with Ethiopia’s education, tax, and national identification databases, enabling a complete, real-time view of sector activity.

Minister of Urban and Infrastructure Development Chaltu Sani said the new system represents a critical step toward “a sustainable, complete, transparent, and unified digital management framework” for construction oversight nationwide. She emphasized that CRIS will help ensure projects are delivered on time and within budget, enhancing the sector’s role in driving GDP growth.

By consolidating records of projects, registered professionals, consultants, and contractors, the ECA anticipates improved data-driven policymaking and sector regulation. The authority maintains that CRIS will not only solve historical inefficiencies but also serve as a long-term driver for sustainable development, accountability, and modernized infrastructure delivery in Ethiopia’s rapidly expanding construction landscape.